Document:

Exhibit 10.3 -- Agreement of Purchase and Sale

 EXHIBIT 10.3 
 SALE AGREEMENT 
 Norberto Medina Zurinaga Office and 
 Interest in Quilichini, Oliver & Medina 
 -Valuation of Assets: 
 -Furniture and Equipment: 
  

			
	 - Furniture and improvements, Office ARB
	  	500
	 - Furniture and improvements, Office SBA
	  	300
	 - Furniture and improvements, Office MG
	  	100
	 - Furniture and improvements, Office NMZ
	  	1,000
	 - Pcs (7)
	  	500
	 - Software (Verdict, (500), RG Base (1,500))
	  	2,000
	 - Network batteries (5)
	  	125

 -Library: 
  

			
	 -JTS – Proc. Civil y Evidencia [Civil Procedure and Evidence]
	  	150
	 -LPRA
	  	500

 -Legal Practice (Goodwill and Going Concern Value): 
 Clients: 
 -R-G Financial Corp. and
affiliates 
 -VIG Leasing, S. E. 
 -VIG Leasing Corp. and affiliates 
 -Víctor Galán 
 -Suzuki del Caribe, Inc. and affiliates (except for DACO cases) 
 -Cond. Medina Center 
  

				
	 ($300,000 annual net income, according to income tax return, before taxes X 5 years) ÷ 3 =
	  	$	500,000
	 -RG Mortgage Corp: Escrituras cancelación [Release Instruments] ($120,000 X 5 years) ÷ 3 =
	  	$	200,000
		  	 	 
		  	$	705,175

 -Method of payment: 
 -Sale price to be paid in 25 consecutive payments of $28,207 each, starting on December 15, 2006, and from that point forward on the fifteenth of each subsequent third month, until the final and complete payment.

 -Without interest, except for late payment, in which case the amounts due shall accrue interest at 6% annually. 
 -Notwithstanding the foregoing, starting with the payment due on December 15, 2007 and in the payment corresponding to December for each subsequent
year, deferred from said payment shall be an amount equal to 50% of the additional tax liability that the total amount of the payments made to Seller during the year in question, including the deferred amount, represents for Buyer. As an example and
based on an amortization of 15 years and payments to Seller during the year in question equal to $112,828, the tax liability of Buyer for the amount represented by these payments would be $21,719 and the deferred payment $10,860 ($112,828 less
amortization of $705,175 over 15 years = $47,012, which would represent an additional 

 
reportable but not received income of $65,816, which at a tax rate of 33% would be $21,719, which divided by 2 = $10,860). 
 -Said deferred payment would be accumulated and would start to be paid with payment number 25 in quarterly payments that do not exceed $30,000 until the
final and complete payment thereof. 
 -Price Reduction Adjustments: 
 -The sale price of the legal practice and goodwill will be reduced proportionally to the extent that the invoicing for fees of client accounts included in said practice during any of the next 10 semesters [semiannual
periods] is less than $338,014.50 {(316,029 +240,000+120,000) ÷ 2} semiannually. The corresponding adjustment of the sale price shall be cumulative and performed semiannually in the payment corresponding to the next quarter and in
the payments corresponding to subsequent quarters, if necessary. Any increase in the semiannual invoicing above the previously indicated amount of $338,014.50 that occurs during any of the 10 semesters following the date of this agreement shall not
lead to an increase in the sale price. However, such increase, if it were to occur, shall be cumulatively credited to the sale price reduction adjustments that may have occurred previously in the payment corresponding to the next quarter and in the
corresponding payments of subsequent quarters, if necessary. 
 -The calculation of fees for purposes of the foregoing calculation will be
based on the accrual basis and not the cash basis. 
 -Notwithstanding the foregoing, any difference between the fees reported [accrual
basis] and those actually received [cash basis] from clients by Buyer after 6 months from the date the invoice was submitted shall be adjusted in the next payment to Seller. If said invoice is collected after performing said adjustment, the
adjustment shall be reversed in the next payment to Seller or if the last payment has already been made, within 10 days from receipt of the payment for the invoice of the client. 
 -Building: 
 -The parties shall liquidate the special company that is owner of office number 301 of
the Esquire condominium, which is 50% of the building where the offices of QOM are located, such that the building passes to the ownership of Seller and Buyer in common property in the same proportion as their current respective share in the company
to which it belongs (50:50). 
 -Except to the extent that Seller is the beneficiary of payments for the property taxes thereon, which will
be incumbent upon Buyer to make, Seller shall not receive any income that may be generated from the lease of the building nor shall it contribute to the expenses for the upkeep, improvements, etc., while it is not occupying the building. 

-Each party recognizes the right of first refusal that corresponds to the other party in the event that either of them subsequently decide to sell
their share in the building. 
 -Effective date: 
 -The transfer of ownership of the assets sold hereunder is effective May 17, 2006. However, there was a transition period from that date until May 31, 2006, during which Seller was settling its affairs and transferring the
administration of the Legal Practice sold hereunder to Buyer. All of the income and expenses that were generated until that date from the legal Practice will belong to Seller, even if they are received or paid at a later date, as applicable.

  

 2 

 -Partnership name: 
 -This sale includes Seller’s entire interest in QOM. 
 -After June 1, 2006, the name of Medina was
eliminated from the partnership name of the firm QOM. 
 In San Juan, Puerto Rico, on October 26, 2006. 
  

					
			
	/s/ Norberto Medina Zurinaga	 		 	/s/ Gilberto Oliver Vázquez
	NORBERTO MEDINA ZURINAGA	 		 	GILBERTO OLIVER VÁZQUEZ
	SELLER	 		 	BUYER

  

 3Exhibit 10.4 -- Service Agreement

 EXHIBIT 10.4 
 SERVICE AGREEMENT 
 This Service Agreement (this “Agreement”), dated as of October 26, 2006
(the “Effective Date”), is by and between R-G Financial Corporation (“RG”), RG Financial Tower, 290 Jesús T. Piñero Ave., San Juan, Puerto Rico, 00918, and Quilichini & Oliver (“Service
Provider”). 
 ARTICLE I 
 Relationship of the Parties 
 SERVICE PROVIDER and RG intend that SERVICE PROVIDER is to act and perform as an independent
contractor of RG. No provision of this Agreement is intended to create any employment, partnership or joint venture relationship between the parties. SERVICE PROVIDER and RG agree that SERVICE PROVIDER shall retain the authority to direct the
day-to-day operations of its business. 
 ARTICLE II 
 Services to be Provided by SERVICE PROVIDER; Compensation 
 SERVICE PROVIDER agrees to provide to RG
legal representation and services, as agreed to by the parties and as approved by RG, as set forth hereinafter. As consideration for the services to be provided by SERVICE PROVIDER, RG agrees to pay to SERVICE PROVIDER during the term of this
Agreement, the following approximate sums: 
  

			
	- Hourly rates:	  	
		
	 - Senior attorneys:
	  	$170/ hr. or $140/ hr, depending on seniority
	 - Junior attorneys:
	  	$110/ hr.
	 - Paralegals:
	  	$ 45/ hr.
	
	 - Reimbursement of costs and out-of-pocket expenses

	
	- Deeds of cancellation of mortgages: Fees in the sum of $240,000/ year.

 ARTICLE III 
 Confidentiality 
 (a) SERVICE PROVIDER acknowledges that certain confidential information of RG and
its customers may be disclosed to SERVICE PROVIDER in connection with this Agreement and the matters contemplated hereunder. SERVICE PROVIDER agrees to hold in confidence any such confidential information and, to maintain such information in
confidence and not to disclose such information without the prior written consent of the disclosing party, except in connection with the performance of its obligations under this Agreement. 

 (b) The parties recognize that the unauthorized disclosure of confidential information by a party or its
employees, agents or servants who are or may be exposed to such confidential information may give rise to irreparable injury to the other party, which may not be adequately compensated by damages. Accordingly, in the event of a breach or threatened
breach of this Article, the injured party shall be entitled to injunctive relief restraining the other party from disclosing, in whole or in part, confidential information as defined in this paragraph. Nothing herein shall be construed as
prohibiting the injured party from pursing any other remedies available to it for such breach or threatened breach. 
 (c) SERVICE PROVIDER
agrees to implement appropriate measures designed to protect against unauthorized access to or use of customer information that could result in substantial harm or inconvenience to any customer of RG. SERVICE PROVIDER shall notify RG as soon as it
learns of any breach of security that results in an unauthorized intrusion into RG’s customer information systems maintained by SERVICE PROVIDER (** if applicable). 
 (d) The undertakings in this Article shall survive the termination of this Agreement. 
 ARTICLE IV

 Indemnification; Limitation of Liability; Insurance 
 Section 4.1 Indemnification. SERVICE PROVIDER, shall indemnify, defend and hold RG, its officers, partners, employees, agents and consultants
harmless, from and against any and all liabilities, losses, damages, claims, causes of action and expenses (including reasonable attorneys’ fees), whether or not covered by insurance (including self-insured insurance and reserves), whenever
arising or incurred, that are caused or asserted to have been caused as a result of any violation, during the term of this Agreement, of the Gramm-Leach-Bliley Act (15 U.S.C. Section 6801, et seq.), any federal rules and regulations thereunder,
or any claims under the Constitution or laws of the Commonwealth of Puerto Rico regarding the right to privacy and state law tort claims by (i) SERVICE PROVIDER and/or its partners, agents, employees and/or contractors or subcontractors, or
(ii) RG solely as a result of SERVICE PROVIDER’s breach of this Agreement. 
 Section 4.2 Force Majeure.
Notwithstanding any other provision of this Agreement, SERVICE PROVIDER shall not be liable for any failure, inability to perform, or delay in performance hereunder, if such failure, inability, or delay be due to acts of God, war, civil commotion,
governmental action, fire, explosion, strikes, other industrial disturbances, equipment malfunction that is beyond its reasonable control, or any other cause that is beyond its reasonable control. 
  

 2 

 Section 4.3. Insurance. SERVICE PROVIDER shall at all times during the term of this
Agreement maintain a reasonable level of professional malpractice / errors & omissions insurance coverage in relation to its industry and business activities. 
 ARTICLE V 
 Term and Termination 
 This Agreement shall begin on the Effective Date and shall continue until terminated by either party by giving written notice of such termination to the
other party. 
 ARTICLE VI 
 General Provisions 
 Section 6.1 Amendments. Subject to Section 6.11, this Agreement shall not be modified
or amended except by a written document executed by each of the parties to this Agreement, and such written modification(s) or amendment(s) shall be attached hereto. 
 Section 6.2 Waiver of Provisions. Any waiver of any terms and conditions of this Agreement must be in writing, and signed by both RG and SERVICE PROVIDER. The waiver of any of the terms and conditions of
this Agreement shall not be construed as a waiver of any other terms and conditions of the Agreement. 
 Section 6.3 Additional
Documents. SERVICE PROVIDER and RG agree to execute any document or documents that may be requested from time to time by the other party to implement or complete such party’s obligations pursuant to this Agreement. 
 Section 6.4 Attorneys’ Fees. If legal action is commenced by either party to enforce or defend its rights under this Agreement, the
prevailing party in such action shall be entitled to recover its costs and reasonable attorneys’ fees in addition to any other relief granted. 
 Section 6.5 Parties In Interest; No Third-Party Beneficiaries. Except as otherwise provided in this Agreement, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective heirs,
legal representatives, successors and permitted assigns of the parties to this Agreement. Neither this Agreement nor any other agreement contemplated in this Agreement shall be deemed to confer upon any person not a party to this Agreement any
rights or remedies contained in this Agreement. 
 Section 6.6 Entire Agreement. This Agreement and the agreements contemplated
hereby constitute the entire agreement of the parties regarding the subject matter hereof, and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof. 
  

 3 

 Section 6.7 Severability. If any provision of this Agreement is held to be illegal, invalid
or unenforceable under present or future laws effective during the term of this Agreement, such provision shall be fully severable and this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision never
comprised a part hereof; and the remaining provisions hereof shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom. Furthermore, in lieu of such illegal,
invalid or unenforceable provision, there shall be added automatically as part of this Agreement a provision as similar in its terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.

 Section 6.8 Governing Law. This agreement shall be governed by and construed in accordance with the laws of the Commonwealth
of Puerto Rico. 
 Section 6.9 Captions. The captions in this Agreement are for convenience of reference only and shall not limit
or otherwise affect any of the terms or provisions hereof. 
 Section 6.10 Reference to Agreement. Use of the words
“herein”, “hereof”, “hereto” and the like in this Agreement shall be construed as references to this Agreement as a whole and not to any particular Article, Section or provision of this Agreement, unless otherwise
noted. 
 Section 6.11 Intervention and Reports by the CFO. The following actions shall require the approval or
ratification of the Chief Financial Officer of RG (the “CFO”) or in his absence, that of the Chief Administrative Officer: 
  

	 	a)	The execution of this Agreement; 

  

	 	b)	Any amendment to or waiver of any provision of this Agreement; 

  

	 	c)	The payment of all invoices submitted by the SERVICE PROVIDER hereunder; 

  

	 	d)	From the date of this Agreement, all assignments hereunder to the SERVICE PROVIDER, except those related to the deeds of cancellation of mortgages, as provided in Article II.

 The CFO shall submit quarterly reports to the Audit Committee of the Board of Directors of RG on the engagement of and
assignments to the SERVICE PROVIDER hereunder, including those assignments made by Norberto Medina, General Counsel of RG. 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

  

									
	R-G FINANCIAL CORPORATION	 		 	 SERVICE PROVIDER
 QUILICHINI & OLIVER

					
	By:	 	 /s/ Ramón Luis Nieves, Esq.
	 		 	 By:
	 	 /s/ Gilberto Oliver Vázquez, Esq.

		 	 Ramón Luis Nieves, Esq.
	 		 		 	 Gilberto Oliver Vázquez, Esq.

		 	 Legal Counsel
	 		 		 	

  

									
					
	Ratified by:	 	 /s/ Vicente Gregorio
	 		 		 	
		 	 Vicente Gregorio
	 		 		 	
		 	 Chief Financial Officer
	 		 		 	
		 	 R-G Financial Corp.
	 		 		 	
					
	Ratified by:	 	 /s/ Melba Acosta
	 		 		 	
		 	 Melba Acosta
	 		 		 	
		 	 Chief Administrative Officer
	 		 		 	
		 	 R-G Financial
	 		 		 	

  

 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]