Document:

Exhibit

Exhibit 10.1

SETTLEMENT AND RELEASE AGREEMENT

This Settlement and Release Agreement (“Agreement”) is entered into by and between Emmis Communications Corporation (“Emmis”) on the one hand and Corre Opportunities Fund, LP, Zazove Associates LLC, DJD Group LLLP, First Derivative Traders LP and Kevan A. Fight (collectively, the “Preferred Group”) on the other hand.  Emmis and the Preferred Group are collectively referred to as “Parties.”  This Agreement shall be effective upon execution by all Parties or their representatives.
Recitals
A.    Emmis and the Preferred Group are parties to a lawsuit captioned in the District Court as Corre Opportunities Fund, LP, et al v. Emmis Communications Corporation, Cause No. 1:12-cv-00491-SEB-TAB, and in the Circuit Court of Appeals as Corre Opportunities Fund, LP, et al v. Emmis Communications Corporation, Cause No. 14-1647 (the “Lawsuit”).
B.    The remaining issue in the Lawsuit is a pending Bill of Costs filed by Emmis on March 14, 2014, and the Preferred Group’s Response in Opposition to the Bill of Costs filed on March 27, 2014.
C.    The Court’s ruling on the Bill of Costs was stayed on April 9, 2014 pending the outcome of the Preferred Group’s appeal to the Seventh Circuit Court of Appeals.
D.    After determination of the appeal, the Court on October 21, 2015 granted Emmis’s Motion to Lift Stay on the Bill of Costs and the Magistrate Judge set the matter for a settlement conference which was conducted on November 5, 2015 with the Parties’ lead counsel present.

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E.    Emmis and the Preferred Group desire to settle and resolve their differences regarding the Bill of Costs, including all claims they may have against one another with respect to claims made in the Lawsuit or arising from Emmis’s or the Preferred Group’s actions in any way related to the Emmis 6.25% Series A Cumulative Convertible Preferred Stock (“Preferred Stock”).
Agreement
NOW, THEREFORE, for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the Parties agree as follows:
1.    Emmis shall withdraw the Bill of Costs with prejudice to refiling, and waives any right to reimbursement of costs in the Lawsuit.  Such withdrawal shall be filed with the court after the Emmis shareholder vote on the Amendment referenced in paragraph 2 below.

2.    The Preferred Group and each member thereof, represents and warrants that, together, they have the right to vote 695,108 shares of the Preferred Stock.  Further, they agree to maintain such right to vote all such shares and shall vote all such shares in favor of an amendment to Exhibit A, as amended to date, to Emmis’ Second Amended and Restated Articles of Incorporation that would cause a mandatory conversion of all Preferred Stock into Class A Common Stock of Emmis at a ratio of 2.80 shares of Class A Common Stock for each share of Preferred Stock (the “Amendment”).  A copy of the proposed Amendment is attached to this Agreement as Attachment 1.    
3.    Jeffrey H. Smulyan hereby agrees to vote all of his Emmis Common Shares (both Class A and Class B) in favor of the Amendment.

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4.    Emmis agrees and warrants it will, consistent with its Articles of Incorporation and Bylaws and the Indiana Business Corporation Law, use commercially reasonable efforts to promptly call and hold a shareholder meeting to vote on the Amendment.  The Preferred Group agrees to cooperate reasonably with Emmis in connection with any necessary filings with the United States Securities and Exchange Commission or any other applicable regulatory body in connection with Emmis’ performance under this Agreement.
5.    Release by Preferred Group:  The Preferred Group hereby RELEASES AND FOREVER DISCHARGES Emmis and all of its affiliates, predecessors, successors, assigns officers, directors, shareholders, agents, employees, representatives, and attorneys, in their representative as well as their individual capacities, from any and all claims, demands, damages, costs, expenses, and causes of action of any kind or nature, whether known or unknown, including, without limitation, any claims that the Preferred Group (or any of them) has, had or may have on account of or arising out of or in any way related to (a) the Preferred Stock, (b) the Lawsuit, and any matters that were alleged in, or that could have been alleged in, the Lawsuit, and/or (c) any and all matters, transactions or things in any way related to Emmis stock of any class or series that have occurred occurring prior to the effective date of this Agreement.  The release provided for in this section shall not bar any claim for breach of this Agreement.
6.    Release by Emmis:  Emmis hereby RELEASES AND FOREVER DISCHARGES the Preferred Group and all of its affiliates, predecessors, successors, assigns, officers, directors, shareholders, agents, employees, representatives, and attorneys, in their representative as well as their individual capacities, from any and all claims, demands, damages, costs, expenses, and causes of action of any kind or nature, whether known or unknown, including, without limitation, any claims that Emmis has, had or may have on account of or arising out of or in any way related 

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to (a) the Preferred Stock, (b) the Lawsuit, and any matters that were alleged in or that could have been alleged in, the Lawsuit, and/or (c) any and all matters, transactions or things in any way related to Emmis stock of any class or series that have occurred prior to the effective date of this Agreement.  The release provided for in this section shall not bar any claim for breach of this Agreement.
7.    Emmis will file the Amendment with the Indiana Secretary of State no later than the first business day after the adoption of the Amendment by Emmis’ shareholders. The Class A Common Stock to be issued pursuant to the Amendment shall be unrestricted, freely transferrable and, with respect to each person or entity who holds Preferred Stock through a DTC participant, delivered to such holder via DTC.  Emmis will use its commercially reasonable efforts to cause the Amendment to be effective so that the holders of Preferred Stock who desire to voluntarily convert their shares may effect such a conversion at the rate of 2.80 shares of Common Stock per share of Preferred Stock on or before March 1, 2016.  Provided that the Preferred Group is not then in breach of this Agreement, the Preferred Group shall have the right to terminate this Agreement by giving written notice to Emmis in the event that the Amendment is not effective on or before March 31, 2016.  In the event of such termination, this Agreement shall be null and void.
8.    Emmis will defend and indemnify the Preferred Group from and against any third-party claim or lawsuit arising from or relating to the Amendment (each, a “Claim”); provided that such defense and indemnity shall not be available to the extent that such claim or lawsuit resulted primarily from the gross negligence, bad faith or willful misconduct of any member of the Preferred Group or the material breach of the Preferred Group’s obligations under this Agreement.  The Preferred Group shall promptly notify Emmis of any Claim, will allow 

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Emmis to take over the defense of such Claim, and will cooperate with Emmis, as reasonably requested, in the defense or resolution of such Claim.  Emmis shall promptly reimburse the Preferred Group for any reasonable attorneys’ fees incurred by the Preferred Group in providing such requested cooperation.  The Preferred Group shall not settle any Claim without the prior written consent of Emmis (which consent shall not be unreasonably withheld, delayed or conditioned).
9.    The parties acknowledge and agree that this Agreement constitutes a voting agreement between the members of the Preferred Group and Jeffrey H. Smulyan under I.C. 23-1-31-2, and  is specifically enforceable under I.C. 23-1-31-2(b).  The prevailing party in any action to enforce a party’s obligation to vote in accordance with this Agreement shall be entitled to reimbursement of all reasonable attorneys’ fees and other costs in connection with such action.
10.    This Agreement shall be construed in accordance with the laws of the State of Indiana, without regard to conflict of law principles.
11.    Each of the undersigned attorneys represents and warrants that he or she has been duly empowered and authorized to execute this Agreement and on behalf of the Party or Parties he or she represents as counsel, and that by his or her execution, this Agreement will be binding on such Party or Parties according to its terms.
12.     The Preferred Group and each member thereof acknowledges and agrees that: (i) it has agreed to enter into this Agreement and perform its obligations hereunder, notwithstanding the fact that Emmis may be in possession of material, nonpublic information regarding Emmis, including, without limitation, its financial condition, results of operations, business, properties, assets, liabilities, management, projections, appraisals, and plans, proposals and prospects (including such information with respect to its fiscal quarter ending November 30, 2015); (ii) if it 

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were in possession of some or all of such information, it might not be willing to execute this Agreement or perform its obligations hereunder, but it has agreed to execute this Agreement and perform its obligations hereunder notwithstanding the non-disclosure of such information; and (iii) Emmis shall have no obligation to disclose to the Preferred Group any of the information referred to in the preceding two clauses (i) and (ii).
13.    This Agreement constitutes the entire agreement among the Parties with respect to the subject matter hereof, and supersedes all prior or contemporaneous oral or written agreements, understandings or representations.  This Agreement may not be amended, nor may any of its provisions be waived, except by a writing signed by all the Parties.
14.    This Agreement may be executed in counterparts by any of the signatories hereto, including counterparts and signatures transmitted by telecopier or email, and as so executed, shall constitute one and the same instrument.

[Remainder of Page Intentionally Blank]

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IN WITNESS WHEREOF, the parties have caused this Agreement, dated and effective as of December 3, 2015 to be executed by their duly authorized attorneys.

	
		
	 
	/s/ Richard A. Kempf

	 
	Richard A. Kempf

	 
	 

	 
	Counsel for Emmis Communications Corporation and Former Defendent Jeffrey H. Smulyan

                

	
		
	 
	/s/ Wayne C. Turner

	 
	Wayne C. Turner

	 
	 

	 
	Counsel for Corre Opportunities Fund, LP, Zazove Associated LLC, DJD Group LLLP, First Derivative Traders LP and Kevan A. Fight

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Attachment 1

EXHIBIT A TO THE SECOND AMENDED AND RESTATED ARTICLES OF INCORPORATION OF EMMIS COMMUNICATIONS CORPORATION IS AMENDED TO AMEND AND RESTATE SECTION 8(a), AND TO ADD A NEW SECTION 10 AS FOLLOWS:

8.    Conversion

(a)    Subject to compliance with the provisions of this Section 8, each outstanding share of the Preferred Stock shall be convertible at any time at the option of the holder into that number of whole shares of the Corporation’s Class A Common Stock as is equal to the Liquidation Preference, divided by an initial conversion price of $17.857, equivalent to 2.8000 shares of Class A Common Stock per share of Preferred Stock, subject to adjustment as described in Section 8(c). The initial conversion price and the conversion price as adjusted are referred to in this Exhibit A as the Conversion Price. A share of Preferred Stock called for redemption will be convertible into shares of Class A Common Stock up to and including, but not after, the close of business on the date fixed for redemption unless the Corporation defaults in the payment of the amount payable upon redemption.

10.    Mandatory Conversion

(a)    On the fifth business day after any delisting of the Preferred Stock by Nasdaq has become effective (the “Mandatory Conversion Date”), each outstanding share of the Preferred Stock shall be automatically converted into 2.80 shares of Class A Common Stock per share of Preferred Stock (the “Mandatory Conversion”).  The Mandatory Conversion shall be deemed to have been effected at 5:00 p.m., New York City time, on the Mandatory Conversion Date, the person or persons entitled to receive shares of Class A Common Stock issuable upon the Mandatory Conversion shall be treated for all purposes as the holder(s) of such shares of Class A Common Stock after that time on the Mandatory Conversion Date, and the rights with respect to all shares of Preferred Stock, including the rights, if any, to receive notices, will terminate at that time, except only the rights of holders of Preferred Stock to receive certificates for the number of shares of Class A Common Stock into which such Preferred Shares have been converted.  Except as provided in Section 6.3(b), prior to 5:00 p.m., New York City time, on the Mandatory Conversion Date, the shares of Class A Common Stock issuable upon the Mandatory Conversion of the Preferred Stock shall not be deemed to be outstanding for any purpose, and holders of the Preferred Stock shall have no rights with respect to such shares of Class A Common Stock, including voting rights, rights to respond to tender offers and rights to receive any dividends or other distributions on such shares of Class A Common Stock, by virtue of holding the Preferred Stock.
(b)    On or after the Mandatory Conversion Date, each holder of a certificated share of Preferred Stock shall upon the request of the Corporation surrender the certificate representing such share, duly endorsed or assigned to the Corporation or in blank, at the office of the transfer agent.  If the shares of Class A Common Stock deliverable upon conversion are to be issued in a different name from the name in which the shares of Preferred Stock to be converted 

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are registered, the holder must also deliver to the transfer agent a written notice of the name and address of the person in which the shares of Class A Common Stock deliverable upon conversion are to be registered and an instrument of transfer, in form satisfactory to the Corporation, duly executed by the holder or the holder’s duly authorized attorney, together with an amount sufficient to pay any transfer or similar tax in connection with the issuance and delivery of such shares of Class A Common Stock in such name (or evidence reasonably satisfactory to the Corporation demonstrating that such taxes have been paid).
(c)    As promptly as practicable after compliance with the provisions of Section 10(b), the Corporation shall deliver or cause to be delivered at the office of the transfer agent for delivery to the holder thereof a certificate or certificates representing the number of shares of Class A Common Stock into which such Preferred Stock has been converted in accordance with the provisions of this Section 10, registered in the same name or names as the shares of Preferred Stock converted or such other name or names as are duly specified in accordance with Section 10(b).  
(d)    No fractional shares or scrip representing fractional shares of Class A Common Stock shall be issued upon the Mandatory Conversion of the Preferred Stock.  If more than one share of Preferred Stock is surrendered for conversion by the same holder, the number of full shares of Class A Common Stock issuable upon conversion thereof shall be computed on the basis of the aggregate number of shares of Preferred Stock so surrendered.  If the conversion of any share or shares of Preferred Stock results in a fraction, an amount equal to such fraction, multiplied by the last reported sale price of the Class A Common Stock on the Nasdaq Stock Market (or on such other national securities exchange or authorized quotation system on which the Class A Common Stock is then listed for trading or authorized for quotation or, if the Class A Common Stock is not then so listed or authorized for quotation, an amount determined in good faith by the Board of Directors to be the fair market value of the Class A Common Stock) at the close of business on the trading day next preceding the Mandatory Conversion Date shall be paid to such holder in cash by the Corporation.
(e)    The issuance or delivery of certificates for Class A Common Stock upon the Mandatory Conversion of shares of Preferred Stock shall be made without charge to the holder of shares of Preferred Stock for such certificates or for any documentary stamp or similar issue or transfer tax in respect of the issuance or delivery of such certificates or the securities represented thereby, and such certificates shall be issued or delivered in the respective names of, or in such names as may be directed by, the holders of the shares of Preferred Stock converted, provided, however, that the Corporation shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any such certificate in a name other than that of the holder of the shares of Preferred Stock converted, and the Corporation shall not be required to issue or deliver such certificate unless or until the person or persons requesting the issuance or delivery thereof have paid to the Corporation the amount of such tax or have established to the reasonable satisfaction of the Corporation that such tax has been paid. 

9konaredexh10_1.htm

Exhibit 10.1

 

 

SECURITIES PURCHASE AGREEMENT

This SECURITIES PURCHASE AGREEMENT (this “Agreement”), dated as of December 3, 2015, is entered into by and between KonaRed Corporation, a Nevada corporation, (the “Company”), and Vista Capital Investments, LLC (the “Buyer”).

 

A.           The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “1933 Act”).

 

B.           Upon the terms and conditions stated in this Agreement, the Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement (i) a Promissory Note of the Company, in the form attached hereto as Exhibit A, in the original principal amount of $110,000.00 (together with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the terms thereof, the “Note”), (ii) Five Hundred Thousand (500,000) restricted common shares in the Company (“Inducement Shares”) to be delivered to Holder, via overnight courier, within 5 business days following the Closing Date,.

 

NOW THEREFORE, the Company and the Buyer hereby agree as follows:

 

1.             Purchase and Sale. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase from the Company (i) the Note in the original principal amount of $110,000, and (ii) the Inducement Shares.

 

1.1.           Form of Payment. On the Closing Date, (i) the Buyer shall pay the purchase price of $100,000 (the “Purchase Price”) for the Securities to be issued and sold to it at the Closing (as defined below) by wire transfer of immediately available funds to a company account designated by the Company, in accordance with the Company’s written wiring instructions, against delivery of the Securities, and (ii) the Company shall deliver such duly executed Securities on behalf of the Company, to the Buyer, against delivery of such Purchase Price.

 

1.2.           Closing Date. The date and time of the issuance and sale of the Securities pursuant to this Agreement (the “Closing Date”) shall be on or about December 3, 2015, or such other mutually agreed upon time. The closing of the transactions contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the parties.

 

2.             Governing Law; Miscellaneous.

 

2.1.           Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of San Diego County, California or in the federal courts located in San Diego County, California. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail 

 

 

  

  

  

 

 

or overnight delivery (with evidence of delivery) to such party at the address in effect for 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 be deemed to limit in any way any right to serve process in any other manner permitted by law. THE COMPANY 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.

 

2.2.           Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party.

 

2.3.           Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation of, this Agreement.

 

2.4.           Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.

 

2.5.           Entire Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be waived or amended other than by an instrument in writing signed by the Buyer.

 

2.6.           Notices. Any notice required or permitted hereunder shall be given in writing (unless otherwise specified herein) and shall be deemed effectively given on the earliest of:

 

(a)           the date delivered, if delivered by personal delivery as against written receipt therefor or by e-mail to an executive officer, or by confirmed facsimile,

 

(b)           the fifth Trading Day after deposit, postage prepaid, in the United States Postal Service by registered or certified mail, or

 

(c)           the third Trading Day after mailing by domestic or international express courier, with delivery costs and fees prepaid, in each case, addressed to each of the other parties thereunto entitled at the following addresses (or at such other addresses as such party may designate by ten (10) calendar days’ advance written notice similarly given to each of the other parties hereto):

 

If to the Company, to:

 

KonaRed Corporation

1101 Via Callejon #200

San Clemente, CA 92673-4230

Tel: 808.212.1553

Fax: 808.442.9922

Attention: Shaun Roberts and John Dawe

Emails: shaun@konared.com; jdawe@konared.com

 

 

  

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If to the Buyer:

 

VISTA CAPITAL INVESTMENTS, LLC

*****************

*****************

*****************

Attn: David Clark

Email: dclark@vci.us.com

 

2.7.           Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns. Notwithstanding anything to the contrary herein, the rights, interests or obligations of the Company hereunder may not be assigned, by operation of law or otherwise, in whole or in part, by the Company without the prior written consent of the Buyer, which consent may be withheld at the sole discretion of the Buyer; provided, however, that in the case of a merger, sale of substantially all of the Company’s assets or other corporate reorganization, the Buyer shall not unreasonably withhold, condition or delay such consent. This Agreement or any of the severable rights and obligations inuring to the benefit of or to be performed by Buyer hereunder may be assigned by the Buyer to a third party, including its financing sources, in whole or in part, without the need to obtain the Company's consent thereto.

 

2.8.           Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

2.9.           Survival. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the Closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to indemnify and hold harmless the Buyer and all its officers, directors, employees, attorneys, and agents for loss or damage arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they are incurred.

 

2.10.         No Strict Construction. 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.

 

2.11.         Remedies. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required.

 

 

  

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2.12.         Buyer’s Rights and Remedies Cumulative.  All rights, remedies, and powers conferred in this Agreement and the Transaction Documents on the Buyer are cumulative and not exclusive of any other rights or remedies, and shall be in addition to every other right, power, and remedy that the Buyer may have, whether specifically granted in this Agreement or any other Transaction Document, or existing at law, in equity, or by statute; and any and all such rights and remedies may be exercised from time to time and as often and in such order as the Buyer may deem expedient.

 

2.13.         Prohibition of Short Sales and Hedging Transactions. Buyer represents and warrants to Company that at no time will any of the Buyer, its agents, representatives or affiliates engage in or effect, in any manner whatsoever, directly or indirectly, any action designed to manipulate, or cause or result in de-stabilization of the stock price of the Company, or engage in a (i) "short sale" (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of the Common Stock or (ii) hedging transaction, which establishes a net short position with respect to the Common Stock and will not engage in any such short sales, or any activities which could be categorized as manipulation during the term of this Agreement and the Note.

 

2.14.         Attorneys’ Fees and Cost of Collection. In the event of any action at law or in equity to enforce or interpret the terms of this Agreement or any of the other Transaction Documents, the parties agree that the party who is awarded the most money shall be deemed the prevailing party for all purposes and shall therefore be entitled to an additional award of the full amount of the attorneys’ fees and expenses  paid by such prevailing party in connection with the litigation and/or dispute without reduction or apportionment based upon the individual claims or defenses  giving rise to the fees and expenses.  Nothing herein shall restrict or impair a court’s power to award fees and expenses for frivolous or bad faith pleading.

 

2.15.         Accredited Investor. Buyer acknowledges, the Inducement Shares will be issued per the information provided by Buyer in Exhibit B and will bear a standard restriction legend precluding re-sale into public markets, except in connection with a Registration by the Company under the Securities Act of 1933 (the “Act”), or pursuant to an exemption from such Registration. Buyer represents and warrants that he is either an “Accredited Person”, as that term is defined under the Securities Act of 1933 and applicable regulations thereunder, or otherwise have sufficient experience, education and business knowledge such that he can fend for himself in making a reasoned investment decision to accept the Shares, and the Company is able therefore to issue the shares in a valid private placement under Section 4(2) of the Act

 

 

 

 

[Remainder of page intentionally left blank; signature page to follow]

 

 

 

 

 

 

 

  

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SUBSCRIPTION AMOUNT:

 

	
Original Principal Amount of Note:

	
$110,000.00

	
Purchase Price:

	
$100,000.00

IN WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.

 

 

THE COMPANY:

	
KONARED CORP.

 

	
By: /s/ Shaun Roberts

	
Shaun Roberts

Chief Executive Officer

	  
	
 

THE BUYER:

 

VISTA CAPITAL INVESTMENTS, LLC

 

	
 By /s/ David Clark

       David J. Clark

       Principal

 

	  

 

 

 

 

 

 

 

 

 

 

 

 

  

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EXHIBIT A

NOTE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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EXHIBIT B

SHARE ISSUANCE INFORMATION

Name and address to appear

	on stock certificate and record:	Vista Capital Investments, LLC
	 	 
	 	
 
*****************

*****************

	 	 
	 	 
	TAX ID:	 
*****************

	 	 
	Delivery address:	 
*****************

	 	 
	 	 
*****************

	 	 
	 	________________________________________________

 

 

 

 

 

 

 

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