Document:

wmtn_ex1029.htm

Exhibit 10.29

 

SEPARATION AGREEMENT AND FULL RELEASE OF CLAIMS

THIS SEPARATION AGREEMENT AND FULL RELEASE OF CLAIMS (this "Agreement") is effective as of eight days after signature (the "Effective Date"), by and between Mark Scott, an individual ("Executive"), and WESTMOUNTAIN GOLD, INC., a Colorado corporation (the "Company").

RECITALS

A.    Executive is currently employed as the Chief Financial Officer of the Company pursuant to that certain Employment Agreement by and between the Company and Executive dated April 9, 2011 ("Employment Agreement").

B.    The parties mutually agree that it is in their respective best interests to bring their employment relationship to an end on an amicable basis on December 31, 2013. Executive agrees to complete the list outlined below including  the filing of the Company's SEC Form 10-K for the annual period ended October 31, 2013 the preparation of the 2013 tax returns and excluding any work on Registration Statements:

1. 10-K drafting and filing (filing contingent upon the Company funding of auditors, lawyers, etc.).

2. Provide general assistance/information for the S1 as needed (to the extent the information is included in the 10K or general advice).

3. Provide introduction to and transfer key contacts to Company.

4. Provide all SEC filing codes/passwords to Company.

5. Provide all financial records to company.

AGREEMENTS

In consideration of the premises and the covenants, agreements, representations, and warranties contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto wish to supersede all prior agreements and hereby agree as follows:

Section 1. Resignations. By execution of this Agreement, Executive hereby agrees to resign as an officer and employee of the Company and all of its subsidiaries and affiliates effective December 31, 2013.

a. Salary. Executive's salary for the through December 31, 2013 remains at $96,000 per year. Executive is no longer eligible for any bonuses as of December 31, 2013. Executive stops accruing vacation on December 31, 2013.

b. Executive's vacation time is expected to be used by December 31, 2013.

Section 2.  Separation.   In complete  and  full  satisfaction  of  all  obligations owed  to  Executive  by  the  Company,  including,  but  not  limited  to,  all  claims  to compensation, severance, benefits , or equity from or in the Company or its successors and assigns (collectively , the "Company Agents") , the parties agree to the following :

a. Severance Payments. Provided Executive does not revoke this Agreement pursuant to the Limited Right to Revoke contained herein, the Company will agrees to issue 96,000 shares of Company common stock within 30 days of the signing of this Agreement.

 

b. Accrued Salary and Benefits. The Company agrees to pay $48,000 in accrued and unpaid salary and unpaid expenses of approximately $4,500 by December 31, 2013 or when financing complete out of funds (but no later than March 31, 2014) received from gold sales or other equity and debt financing, in full satisfaction of any and all accrued but unpaid salary and expenses. The Company agrees to provide medical and dental insurance consistent with all employees.

c. Accrued Stock Incentives. Executive is to be issued 63,000 shares of Company common stock within eight days of the signing of this Agreement. Executive acknowledges that he remains subject to the Company's Insider Trading Policy, as amended from time to time as long as he is an affiliate of the Company.

d. Accrued Compensation for 2013. Executive is to be granted accrued compensation for 2013 consistent with other executives.

  

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e. Legal Opinions. The Company agrees to consent to legal opinions related to removing legends for the certificates of the Executive. The Company agrees to sign the consent for the legal opinion dated October 28, 2013 with the signing of this Agreement.

f. Executive shall be solely responsible for the reporting and payment of any state, local and/or federal income tax, if any, on any of the amounts paid or benefits provided pursuant to this Agreement. For tax purposes, Executive agrees to assume all liability for taxes and any costs, fees, interest, assessments , or penalties , due to any determination that Executive has mischaracterized these payments.  Company makes no representations whatsoever as to the taxability of the settlement sum or any portion thereof.

Section 3. Waiver of Severance or Continuing Benefits.  Other than as provided for in this Agreement, Executive waives any right to severance or any other benefits provided for under the terms of the Employment Agreement in connection with or as a result of the termination of his employment and other positions with the Company, for any reasons thereunder, and agrees that he is only entitled to the payments and other separation benefits provided herein. Executive waives and acknowledges that he is not entitled to any future continuing health or other benefits (except as may be required by applicable law).

Section 4. Consulting Arrangement. The Company may engage Executive following the Effective Date and on a prepaid basis, Executive may serve the Company in a consulting capacity at the rate of $4,000 per month and providing family medical insurance. To this end, Executive will, among other matters requested by the Company, assist with the preparation and filing of certain US Securities and Exchange Commission reports (Excluding Registration Statements) and statements and assist with certain of the Company's ongoing business matters. At the Company's request and discretion, Executive's consulting services will be performed at any of the Company's offices or remotely. Executive warrants to the Company that any consulting services provided by Executive to the Company under this Agreement will be performed in a professional and workmanlike manner. Notwithstanding any provision hereof, for all purposes of this Agreement each party will be and act as an independent contractor and not as partner, joint venturer, or agent of the other and will not bind nor attempt to bind the other to any contract. Executive will be an independent contractor and is solely responsible for all taxes, withholdings, and other statutory or contractual obligations of any sort.  Any travel, accommodation and out-of-pocket expenses associated with providing requested consulting services and which are approved in advance by the Company will be paid for directly by the Company. The  Company may terminate the consulting services  with Executive with thirty days advance notice, in which case the Company would  only be required to pay Executive for hours worked through the date  of termination  and  no further consulting payments will be owed. The Company shall indemnify Executive if Executive is made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that Executive is or was a consultant of the Company, or any subsidiary of the Company, by reason of any action or inaction on the part of Executive while a consultant  if Executive acted in good faith and in a manner Executive reasonably believed to be in or not opposed to the best interests of the Company, that  Executive was not  in material breach of this Agreement and, with respect to any criminal action or proceeding, had no reasonable cause to believe Executive's conduct was unlawful. Notwithstanding the foregoing, Company acknowledges that Executive anticipates seeking full-time employment with another employer. The parties agree to coordinate in good faith in allowing Executive to provide the services set forth in this Section 4 and the discharge by Executive of such duties as he may have to a new employer.

Section 5.   Release by Executive.  Executive will forever release for himself, his marital community, and his respective heirs and/or assigns (the "Executive Parties"), the Company and any and all of its parents, subsidiaries, directors, officers, employees, equity holders, agents, representatives, attorneys, insurers, predecessors, successors, and assigns (collectively, the "Company Parties"), from ANY AND ALL RIGHTS, CLAIMS, DEMANDS, CAUSES OF ACTION, OBLIGATIONS, DAMAGES, PENALTIES, FEES, COSTS, EXPENSES, AND LIABILITIES, OF ANY NATURE WHATSOEVER, WIDCH HE HAS, HAD, OR MAY HAVE AGAINST THE COMPANY OR ANY OR ALL OF THE  COMPANY  PARTIES  IN CONNECTION WITH ANY CAUSE OR MATTER WHATSOEVER, WHETHER KNOWN OR UNKNOWN TO THE PARTIES AT THE DATE OF THIS AGREEMENT AND INCLUDING, WITHOUT LIMITATION, ALL MATTERS RELATED TO EXECUTIVE'S EMPLOYMENT AGREEMENT AND HIS EMPLOYMENT  WITH  THE  COMPANY  AND  THE  TERMINATION  OF  HIS EMPLOYMENT.

By signing this Agreement, Executive agrees to FULLY WAIVE AND RELEASE ALL CLAIMS arising out of, or relating to, his employment with the Company, his termination from employment with the Company, or his resignation of any position as officer of the Company, WITH RESPECT TO, any claim or other proceeding arising under:

● The Civil Rights Act of 1866 ("Section 1981");

● Title VII of the Civil Rights Act of 1964 as amended by the Civil Rights Act of 1991 ("Title VII");

● The Americans with Disabilities Act ("ADA");

● The Age Discrimination in Employment Act ("ADEA'');

● The Labor Management Relations Act ("LMRA");

● The National Labor Relations Act ("NLRA");

● The Fair Labor Standards Act ("FLSA");

● The Family and Medical Leave Act of 1993 ("FMLA");

● The California Civil Rights Act;

● The California Employment Protection Act;

● Any   common   law  or   statutory   cause   of  action  arising   out  of  Executive's employment or termination of employment with the Company; and/or

● Any   common   law or   statutory   cause   of action arising  out  of  Executive's resignation of any position as an officer of the Company.

  

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This Agreement completely bars any action or suit before any court, arbitral, or administrative body with respect to any claim under federal, state, local, or other law relating to this Agreement or to Executive's employment and/or termination of employment with the Company or its predecessors, subsidiaries, successors, or assigns.

The foregoing release shall NOT operate to release, waive, or otherwise impair any right to indemnification by the Company that Executive may have pursuant to the Company's current Certificate of Incorporation or Bylaws or as otherwise provided by applicable law; (ii) any right to coverage or protection under any Directors & Officers Liability Insurance Policy maintained by  the Company relating to the period  of Executive's employment; (iii) any claims, rights, or remedies arising from the obligations of the Company under this Agreement; (iv) any claims, rights, or remedies that Executive may have and which may not be released or waived under applicable law or (v) any right to participate in any Equal Employment Opportunity Commission ("EEOC") or other federal, state, or local agency investigation, hearing, or proceeding or to file a charge before the EEOC, but Executive waives any right to recover any sum from the Company in connection with any such charge, investigation, hearing, or proceeding.

Section 6. Confidentiality and Non-Disclosure. Executive recognizes and acknowledges that the Company's trade secrets, proprietary information, and know-how (including, without  limitation, any information, materials, records,  financial  statements, or books provided to Executive during the term of his employment), as they may exist from  time  to  time  ("Confidential Information"), to  which  he  has  had  access  to  and Knowledge of, are valuable, special, and unique assets of the Company's business. Executive will not , in whole or in part, disclose such Confidential Information to any party for any reason or purpose whatsoever , at any time, nor will Executive make use of any such Confidential Information for his own purposes or for the benefit of any third party under any circumstances; provided, that these restrictions will not apply to such Confidential Information which is in the public domain (provided that Executive was not responsible, directly or indirectly, for such dissemination into the public domain). Executive will use his best efforts to cause all persons or entities to whom any Confidential Information may be permissibly disclosed by him hereunder to observe the terms and conditions set forth herein as though each such person or entity was bound hereby .

Section 7.    Non-Solicitation.   For a period of 24 months (which time period will be tolled during any breach of this Section 7) after the Effective Date, Executive will not , directly or indirectly, on behalf of himself or any person or entity, solicit, induce, or encourage (or attempt to solicit, induce, or encourage) any (i) business relationship to cease doing business with the Company, or otherwise interfere with any business relationship; or (ii) person to leave the employ of the Company except for Janette Frohning, whether or not for purposes of obtaining employment with another person or entity, or otherwise interfere in any way with the relationship between the Company and any such person(s). The Company acknowledges that many suppliers of the Company have done business with Executive previously and these suppliers will decide to provide future services to the Company.

Section 8.  Return of Company Property.  Except for any document or report prepared by or in connection with Executive that Executive must retain for professional responsibility purposes and that is first presented to the Chief Executive Officer of the Company, Executive hereby agrees that he will immediately return all property in his possession or control belonging to the Company and all copies thereof. The Executive is allowed to keep all computer equipment in his possession.

Section 9. Public Statements. Executive and the Company will refrain from making any public statements or comments, whether orally, in writing, or transmitted electronically, about, concerning , or in any way related to the other party  that  may , directly or indirectly , have a material adverse effect upon the other party 's business , prospects, reputation, or goodwill. Without limiting the generality of the foregoing, Executive agrees not to make any public statements or comments about the Company or its products or services, whether on or of the record, and whether orally, in writing, or transmitted electronically, without the prior approval of the Company's Chief Executive Officer and the Company agrees not to make any public statements or comments about Executive or his immediate family, without the prior approval of Executive. Notwithstanding the foregoing, these restrictions shall not apply to any information that the parties are required to disclose in connection with any legal or regulatory proceedings .

Section 10. Disparaging Comments. Executive will refrain from making any disparaging comments, either directly or indirectly, about or in any way related to the Company or the Company Agents, including, without limitation , the Company's business or  the   Company's   prospects,   either  publicly   or  privately   provided,   further,  these restrictions shall not apply to any information that Executive is required to disclose in connection with any legal or regulatory proceedings. Similarly, the Company will refrain from making any disparaging comments, either directly or indirectly, about or in any way related to Executive or his immediate family, either publicly or privately.

Section 11. Cooperation.  Executive agrees to fully cooperate with the Company in any internal investigation, any administrative, regulatory, or  judicial proceeding or any dispute with any third party. Executive understands and agrees that his cooperation may include, but is not limited to, making himself available to the Company upon reasonable notice for interviews and factual investigations; appearing at Company's request to give testimony without requiring service of a subpoena or other legal process; volunteering to give Company pertinent information; and turning over to Company all relevant documents which are or may come into his possession, all at times and on schedules that are reasonably consistent with my other permitted activities and commitments.

Section 12. Acknowledgments. The parties, by their execution of this Agreement, affirm that the following statements are true:

a. The parties have been given the opportunity to, and have, read this entire Agreement, and have had all questions regarding its meaning answered to their satisfaction;

b. This Agreement is written in a manner understood by the parties, and they fully understand its content, and understand that it is a WAIVER AND RELEASE OF CLAIMS, as specified herein. Executive expressly understands this WAIVER AND RELEASE OF CLAIMS includes  his existing rights  or claims under the ADEA, Section 1981, Title VII, and the California Civil Rights Acts;

  

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c. Each party represents and warrants that it/he has thoroughly discussed all aspects of this Agreement with counsel of his/its choosing, and that he/it has carefully read and fully understands all of the provisions of this Agreement, including the fact that he/it is releasing certain claims and potential claims against the other party and certain additional releases all as more specifically set forth herein, and that  he/it  is entering into this Agreement without coercion and with full knowledge of its significance and the legal consequences thereof. Executive represents and warrants that as part of this Agreement, he is releasing and waiving any claims he believes. he may have under the ADEA;

 

d. This Agreement  is not to be construed as an admission of liability by any party;

e. Except as provided herein, Executive acknowledges that the Company has paid all wages and other amounts owed to him as a result of his employment by the Company and that he is due no additional compensation for services rendered or reimbursement for expenses incurred; and

 

f. A copy of this Agreement was delivered to Executive on November __, 2013. Executive is advised that he has 21 days from the date he is presented with this Agreement to consider this Agreement. If Executive executes this Agreement before the expiration of 21 days, he acknowledges that he has done so for the purpose of expediting the payment of the consideration provided for herein, and that he has expressly waived his right to take 21 days to consider this Agreement. Executive has the right to revoke this agreement within 7 days of signature, as detailed below.

Section 13. Arbitration. Reserving to the parties the right to seek enforcement of this Agreement, where appropriate, through injunctive relief, any controversy , dispute, or claim arising out of or relating to this Agreement or any breach of it ("Claims"), will be resolved by binding arbitration in Seattle, Washington, in accordance with the Employment Dispute Resolution Procedures of the American Arbitration Association ("AAA"). The Claims covered by this Agreement include claims for wages and other compensation, claims for breach of contract (express or implied), tort claims, claims for discrimination or harassment (including, but not limited to, race, sex, sexual orientation, religion, national origin, age, material status, medical condition, and disability), and claims for violation of any federal, state, or other government law, statute, regulation, or ordinance. If the parties cannot agree on an arbitrator within 30 days of the demand for arbitration, the parties will follow the AAA's arbitrator selection procedures. Except as otherwise required by law, the decision of the arbitrator will be binding and conclusive on the parties. Judgment upon the award rendered by the arbitrator may be entered in any court having proper jurisdiction. Each of the parties will bear its or his own attorneys' fees and costs incurred in connection with the arbitration, except as may otherwise be required by law and except for any attorneys ' fees or costs which are awarded by the Arbitrator pursuant to this Agreement or statute that provides for recovery of such fees and/or costs. AAA's administrative expenses will be borne by the Company. The parties each understand and agree that by using arbitration to resolve any claims between the Company and Executive they are giving up any right that they may have to a judge or jury trial with regard to those claims. The parties acknowledge that they are entering into this Agreement voluntarily and have independently negotiated and agreed upon this procedure.

Section 14.  Governing  Law.  The interpretation,   performance,   and enforcement of this Agreement will be governed by the internal laws of the State of Washington, without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Washington to the rights and duties of the parties.

Section 15. Severability. If any provision of this Agreement or the application thereof is held to be invalid, void, or unenforceable for any reason, the remaining provisions not so declared will be construed so as to comply with the law, and will nevertheless continue in full force and effect without being impaired in any manner whatsoever.

Section 16.  Headings.   The headings in this Agreement are for reference only and will not affect the interpretation of this Agreement.

 

Section 17.  Prevailing  Parties.  In the event of any litigation  or  any  other legal proceeding, including arbitration, relating to this Agreement, including, without limitation, any action to interpret or enforce this Agreement, the prevailing party will be entitled to reasonable attorneys' fees and costs incurred in connection with any such proceeding.

Section 18. Intent to be Binding. This Agreement may be executed in any number of counterparts and by facsimile, and each counterpart and/or  facsimile constitutes an original instrument, but all such separate counterparts and/or facsimiles constitute one and the same agreement. Neither party to this Agreement will seek to have any term, provision, covenant, or restriction of this Agreement be held invalid.

Section 19.  Waiver.  The failure of a party to insist; upon strict adherence to any obligation of this Agreement shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. Any waiver of any provision of this Agreement must be in a written instrument signed and delivered by the party waiving the provision.

Section 20. Entire Agreement.  This  Agreement  supersedes  all  prior agreements, whether written or oral, between the parties with respect to its subject matter (including, without limitation, the Employment Agreement., any letter of intent, draft agreement, conceptual agreement, or e-mail communication), and constitutes a complete and exclusive statement of the terms of the agreement between the parties with respect to its subject matter, This Agreement may not be amended, supplemented, or otherwise modified except by a written agreement executed by the party to be charged with the amendment.

  

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Injunctive Relief Damages and Forfeiture. Due to the nature  of Executive's prior positions with the Company, and with full realization that a violation of this Agreement will cause the Company immediate and irreparable injury and damage which is not readily measurable, and to protect the Company's interests, Executive understands and agrees that, in addition to instituting legal proceedings to recover damages resulting from a breach of this Agreement, the Company may seek to enforce this Agreement with an action for injunctive relief to cease or prevent any actual or threatened violation of this Agreement by Executive. Similarly, the Company agrees that Executive may seek to enforce this Agreement with any action for injunctive relief to cease or prevent any actual or threatened violation of this Agreement by the Company.

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I N WITNESS  WHEREOF,  the  Company  has  caused  this  Agreement  to  be  signed by    an   authorized    representative,   and   Executive   has   signed    this   Agreement  in   his   individual  capacity, effective as of the date first written above.

This is a Release.  Read Before Signing

LIMITED RIGHT TO REVOKE

Executive may revoke this  Agreement  at  any  time  within  seven  days  following the execution of  the  Agreement.  Such revocation must be provided in writing and received during the seven day revocation period. To be effective, the revocation must be received by the following:

Chief Executive Officer 

WestMountain Gold, Inc.

Each party understands that this Agreement will not become effective or enforceable until the foregoing revocation period has elapsed with no revocation by Executive.

MARK SCOTT, an Individual

By: Mark Scott

Dated: November 15, 2013

 

WESTMOUNTAIN GOLD, INC.

By: Gregory Schifrin, CEO

Dated: November 15, 2013

 

 

6vggl_ex101.htm

EXHIBIT 10.1

 

 

EXCHANGE AGREEMENT

 

This EXCHANGE AGREEMENT (the “Agreement”) is by and between Viggle Inc., a Delaware corporation (the “Company”), and the investor listed on the signature page hereto (the “Holder”), and is effective on the date set forth on the signature page of the Company hereto.

 

RECITALS

 

A.           The Holder is the owner of (i) ___ shares of the Company’s Series A Convertible Preferred Stock (the “Series A Shares”) and (ii) ___ shares of the Company’s Series B Convertible Preferred Stock (the “Series B Shares”).  The Series A Shares together with the Series B Shares shall collectively be referred to as the “Prior Securities”).

 

B.           The Company and the Holder have agreed to enter into a transaction pursuant to which the Series A Shares shall be exchanged for shares of  Common Stock, par value $0.001 per share (the “Common Stock”) of the Company.  Each of the Series A Shares has a Stated Value of $1,000 (the “Stated Value”) and accrues dividends at 7% per annum.  The Stated Value of a Series A Share plus accrued and unpaid dividends on such share shall be referred to as the “Total Value” of the share.  Each of the Series A Shares shall be exchanged for a number of shares of Common Stock equal to the Total Value of such Series A Share multiplied by 16 (the “Series A Exchange Ratio”).  For example, if a Series A Share has a Total Value of $1,020.00, it would be exchanged for 16,320 shares of Common Stock.

C.           In addition, the Company and the Holder have also agreed to enter into a transaction pursuant to which each Series B Share will be exchanged for one share of Common Stock (the “Series B Exchange Ratio”).  For purposes hereof the Common Stock into which the Series A Shares and the Series B Shares will be exchanged will hereinafter be referred to as the “Exchange  Shares” and the Series A Exchange Ratio and Series B Exchange Ratio together shall be referred to as the “Exchange Ratios.”

D.           It is intended that the transactions contemplated hereby will be conditioned upon, and effective immediately prior to the closing of a Subsequent Public Offering (as defined below).  For purposes hereof, a “Subsequent Public Offering” shall mean the closing of a public offering of equity securities pursuant to an effective S-1 in which the Company raises at least $20,000,000 in net cash proceeds.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Holder hereby agree as follows:

 

1. Exchange and Forfeiture. Effective immediately prior to, and conditioned upon, the closing of a Subsequent Public Offering (the “Effective Time”), the Holder shall: (a) exchange the Series A Shares for Exchange Shares at the Series A Exchange Ratio, and (b) exchange each Series B Share for one share of Common Stock.  It is expressly understood and agreed that at the Effective Time, the Series A Shares shall be automatically exchanged for the Exchange Shares at the Series A Exchange Ratio, and the Series B Shares shall each be automatically exchanged at the Series B Exchange Ratio.  The Holder shall, within ten (10) Business Days (as defined in the Series A Certificate of Designations) after the Effective Time, deliver the Series A Shares and the Series B Shares to the Company. Within ten (10) Business Days thereafter, the Company shall deliver to the Holder (x) one or more stock certificates evidencing the Exchange Shares, duly executed on behalf of the Company.

 

  

  

  

 

2. Representations and Warranties of the Company. The Company represents and warrants to the Holder that:

 

(a) Organization and Qualification. The Company is an entity duly organized and validly existing and in good standing under the laws of the jurisdiction in which it was formed and has the requisite power and authorization to own its properties and to carry on its business as now being conducted. The Company is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect. “Material Adverse Effect” means any material adverse effect on the business, properties, assets, liabilities, operations (including results thereof) or condition (financial or otherwise) of the Company and its Subsidiaries, taken as a whole. “Subsidiaries” means any Person (as defined below) in which the Company, directly or indirectly, owns 100% of the outstanding capital stock or holds 100% of the equity or similar interests of such Person, and each of the foregoing, is individually referred to herein as a “Subsidiary.”

 

(b) Authorization; Enforcement; Validity. The Company has the requisite power and authority to enter into and perform its obligations under this Agreement and to issue the Exchange Shares in accordance with the terms hereof and thereof. The execution and delivery of this Agreement by the Company, and the consummation by the Company of the transactions contemplated hereby have been duly authorized by the Company’s board of directors, and (other than the filing with the Securities and Exchange Commission (the “SEC”) or any state securities agencies of any required filings (collectively, the “Required Filings”)) no further filing, consent or authorization is required by the Company, its board of directors or its stockholders. This Agreement has been duly executed and delivered by the Company, and each constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with its respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and except as rights to indemnification and to contribution may be limited by federal or state securities law.

 

(c) Issuance of Securities. The issuance of the Exchange Shares is duly authorized, and upon issuance in accordance with the terms of this Agreement, will be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof. Subject to the accuracy of the representations and warranties of the Holder in this Agreement, the offer and issuance by the Company of the Securities is exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”).

 

  

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(d) No Conflicts. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of the transactions contemplated thereby will not (i) result in a violation of the Company’s certificate of incorporation, as amended and as in effect on the date hereof, or the Company’s bylaws, as amended and as in effect on the date hereof, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company is a party or (iii) result in a violation of any law, rule, regulation, order, judgment or decree applicable to the Company or any of its Subsidiaries other than, in the case of clauses (ii) and (iii) above, conflicts, defaults, rights or violations that could not reasonably be expected to have a Material Adverse Effect.

 

(e) Consents. The Company is not required to obtain any consent from, authorization or order of, or make any filing or registration with (other than the Required Filings), any court, governmental agency or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its obligations under this Agreement, in each case, in accordance with the terms thereof.

 

(f) Solicitation Fees.  There are no solicitation fees, brokerage commissions, finder’s fees or other similar fees or commissions payable in connection with the transaction with the Holder contemplated by this Agreement based on any agreement, arrangement or understanding with Company or any action taken by Company.

 

3. Holder’s Representations and Warranties. Holder represents and warrants to the Company that:

 

(a) Organization; Authority.  The Holder, if the Holder is an entity, is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization.  The Holder has the requisite power and authority to enter into and to consummate the transactions contemplated hereby and otherwise to carry out its obligations hereunder.

 

(b) No Public Sale or Distribution. The Holder (i) is acquiring the Exchange Shares for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof in violation of applicable securities laws, except pursuant to sales registered or exempted under the 1933 Act; provided, however, by making the representations herein, the Holder does not agree, or make any representation or warranty, to hold any of the Exchange Shares for any minimum or other specific term and reserves the right to dispose of the Exchange Shares at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act. The Holder does not presently have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Exchange Shares in violation of applicable securities laws. “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof.

 

  

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(c) Accredited Investor Status. The Holder is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D.

 

(d) Reliance on Exemptions. The Holder understands that the Exchange Shares are being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and the Holder’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Holder set forth herein in order to determine the availability of such exemptions and the eligibility of the Holder to acquire the Exchange Shares.

 

(e) Information. The Holder and its advisors, if any, have been furnished with all materials relating to the business, finances and operations of the Company and its Subsidiaries and materials relating to the offer and acquisition of the Exchange Shares which have been requested by the Holder. The Holder and its advisors, if any, have been afforded the opportunity to ask questions of the Company and each of its Subsidiaries. The Holder understands that its acquisition of the Exchange Shares involves a high degree of risk. The Holder has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Exchange Shares.

 

(f) No Governmental Review. The Holder understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the acquisition of the Exchange Shares nor have such authorities passed upon or endorsed the merits of the offering of the Exchange Shares.

 

(g) Transfer or Resale. The Holder understands that: (i) the Exchange Shares have not been and are not being registered under the 1933 Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) the Holder shall have delivered to the Company an opinion of counsel to the Holder, that is reasonably acceptable to the Company, to the effect that such Exchange Shares to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) the Holder provides the Company with reasonable assurance that such Exchange Shares can be sold, assigned or transferred pursuant to Rule 144 promulgated under the 1933 Act (or a successor rule thereto) (collectively, “Rule 144”); (ii) any sale of the Exchange Shares made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of the Exchange Shares under circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC promulgated thereunder; and (iii) neither the Company nor any other Person is under any obligation to register the Exchange Shares under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder.

 

  

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(h) Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Holder and constitutes the legal, valid and binding obligations of the Holder enforceable against the Holder in accordance with its terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

(i) No Conflicts. The execution, delivery and performance by the Holder of this Agreement and the consummation by the Holder of the transactions contemplated hereby will not (i) result in a violation of the organizational documents of the Holder (if the Holder is an entity), (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Holder is a party or (iii) result in a violation of any law, rule, regulation, order, judgment  or decree (including federal and state securities laws) applicable to the Holder, except in the case of clause (ii) above, for such conflicts, defaults or rights which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Holder to perform its obligations hereunder or thereunder.

 

(j) Transfer of Series A Shares and Series B Shares. The Holder will transfer the Series A Shares and Series B Shares to the Company free and clear of all liens, encumbrances, pledges, options and other rights of any kind and description (except for liens, encumbrances, pledges, options and other rights and restrictions imposed by applicable securities laws, the terms of the Series A Shares and the Series B Shares and agreements entered into with the Company relating to the Holder’s acquisition of the Series A Shares and the Series B Shares from the Company).

 

4. Entire Agreement. This Agreement supersedes all other prior oral or written agreements between the Holder, the Company and Persons acting on their behalf solely with respect to the matters contained herein, and this Agreement contains the entire understanding of the parties solely with respect to the matters covered herein.

 

5. Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Delaware. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in Wilmington, Delaware, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall (i) be deemed to limit in any way any right to serve process in any manner permitted by law or (ii) be deemed, or operate, to preclude any party from bringing suit or taking other legal action against any other party to this Agreement in any other jurisdiction to collect on such other party’s obligations to such party or to enforce a judgment or other court ruling in favor of such party. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

 

  

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6. Counterparts. This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.

 

7. Construction; Survival. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. The representations and warranties shall survive the consummation of the transactions contemplated by this Agreement for a period of two (2) years thereafter, and the covenants and agreements shall survive the consummation of the transactions contemplated by this Agreement. No specific representation or warranty shall limit the generality or applicability of a more general representation or warranty. Each and every reference to numbers in this Agreement that relate to the Common Stock, the Series A Shares or the Series B Shares shall be automatically adjusted for stock splits, stock dividends, stock combinations and other similar transactions that occur with respect to the Common Stock or any of the Series A Shares or the Series B Shares (as the case may be) after the date of this Agreement.  By way of illustration, the Company currently contemplates that it will effect a 1-for-80 reverse stock split, which is contemplated to be effective prior to the Effective Time.  Assuming such reverse stock split become effective, then, at the Effective Time, if a Series A Share has $20 in accrued and unpaid dividends of $20, such that it has a Total Value of $1,020.00, then at the Effective Time, such Series A Share would be exchanged for 204 shares of Common Stock, reflecting such reverse stock split. Unless expressly indicated otherwise, all section references are to sections of this Agreement.

 

8. Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,” “include” and words of like import shall be construed broadly as if followed by the words “without limitation.”  The terms “herein,” “hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision in which they are found.

 

  

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9. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. Neither party hereto shall assign this Agreement or any rights hereunder, or delegate any obligations hereunder, without the prior written consent of the other party hereto (which may be granted or withheld in such other party’s sole discretion). This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

10. Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

11. Expenses. Each party to this Agreement shall bear its own expenses in connection with the transactions contemplated by this Agreement.

 

12. Severability. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

13. Amendments; Waivers.  No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and the Holder or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

14. Currency. Unless otherwise expressly indicated, all dollar amounts referred to in this Agreement are in United States Dollars (“U.S. Dollars”), and all amounts owing under this Agreement shall be paid in U.S. Dollars. All amounts denominated in other currencies (if any) shall be converted into the U.S. Dollar equivalent amount in accordance with the Exchange Rate on the date of calculation. “Exchange Rate” means, in relation to any amount of currency to be converted into U.S. Dollars pursuant to this Agreement, the U.S. Dollar exchange rate as published in the Wall Street Journal on the relevant date of calculation.

 

  

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15. Disclosure of Transactions. The Company shall, on or before 9:00 a.m. New York time, on the fourth (4th) Business Day following the date of this Agreement, file a Current Report on Form 8-K describing all the material terms of the transactions contemplated by this Agreement in the form required by the Securities Exchange Act of 1934, as amended, and attaching this Agreement.

 

16. Legends; Legend Removal.

 

(a) The Holder understands that the Exchange Shares will be issued pursuant to an exemption from registration or qualification under the 1933 Act and applicable state securities laws, and except as set forth below, the Exchange Shares shall bear any legend as required by the “blue sky” laws of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

 

(b) Certificates evidencing the Exchange Shares shall not be required to contain the legend set forth in Section 16(a) above or any other legend (i) following any sale of such Exchange Shares pursuant to an effective registration statement containing a usable prospectus or (ii) following any sale of such Securities pursuant to Rule 144 (provided that the Holder provides the Company with reasonable assurances (which shall include, without limitation, customary representation letters and an opinion of counsel that are reasonable satisfactory to the Company) that such Exchange Shares were properly sold pursuant to, and in compliance with, Rule 144). If a legend is not required pursuant to the foregoing, the Company shall no later than ten (10) Business Days following the delivery by the Holder to the Company of a legended certificate representing such Exchange Shares (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer, if applicable), together with any other deliveries from the Holder as may be required above in this Section 16(b), as directed by the Holder, either: (A) provided that the Company and its transfer agent are participating in The Depositary Trust Company’s (“DTC”) Fast Automated Securities Transfer Program, credit the aggregate number of Exchange Shares to which the Holder shall be entitled to the Holder’s balance account with DTC through its Deposit/Withdrawal at Custodian system or (B) if the Company or its transfer agent are not participating in the DTC Fast Automated Securities Transfer Program, a certificate representing such Exchange Shares that are free from all restrictive and other legends, registered in the name of the Holder.

 

  

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17. Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, if delivered personally; (ii) when sent, if sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); (iii) when sent, if sent by e-mail (provided that such sent e-mail is kept on file (whether electronically or otherwise) by the sending party and the sending party does not receive an automatically generated message from the recipient’s e-mail server that such e-mail could not be delivered to such recipient) and (iv) if sent by overnight courier service, one (1) Business Day after deposit with an overnight courier service with next day delivery specified, in each case, properly addressed to the party to receive the same. The addresses, facsimile numbers and e-mail addresses for such communications shall be:

 

If to the Company:

 

Viggle Inc.

902 Broadway, 11th Floor

New York, New York 10022

E-mail: mitch@viggle.com

Facsimile: (212) 750-3034

Attention: Mitchell J. Nelson

With a copy (for informational purposes only) to:

 

Greenberg Traurig, LLP

200 Park Avenue

New York, New York 10166

E-mail:  blockd@gtlaw.com

Facsimile: (212) 801-6400

Attention: Dennis J. Block, Esq.

If to the Holder:

At the address set forth on the signature page hereto

or to such other address, facsimile number and/or e-mail address and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date and recipient facsimile number or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iv) above, respectively. A copy of the e-mail transmission containing the time, date and recipient e-mail address shall be rebuttable evidence of receipt by e-mail in accordance with clause (iii) above.

 

[signature pages follow]

 

  

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In Witness Whereof, the parties hereto have caused this Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	
  

	
COMPANY:

 

	
  

	
VIGGLE INC.

 

	
  

	
By:

	 

	
  

	
Name:

	
  

	
Title:

	
  

	
Date: March 18, 2014

 

  

  

  

 

In Witness Whereof, the parties hereto have caused this Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	
  

	
HOLDER:

 

	
  

	
__________________________

	
  

	
Name:  ____________

	
  

	
Address:

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