Document:

Unassociated Document

    FIRST
      AMENDMENT TO PURCHASE AGREEMENT

     

    This
      First Amendment (this “Amendment”)
      to
      that certain Purchase Agreement (the “Original
      Agreement”),
      dated
      as of September 30, 2006, by and among Emerge Capital Corp., a Delaware
      Corporation (the “Purchaser”),
      Kipling Holdings, Inc., a Delaware corporation (the “Company”)
      and
      Timothy J. Connolly, an individual and the holder of one hundred percent (100%)
      of the capital stock of the Company (the “Selling Shareholder”, and together
      with The Purchaser and the Company, the “Parties”)
      is
      dated and made effective as of October 5, 2006. 

     

    RECITALS:

     

    WHEREAS,
      pursuant
      to the Original Agreement,
      the
      Selling Shareholder sold to the Purchaser, and the Purchaser purchased from
      the
      Selling Shareholder, one hundred percent (100%) of the total issued and
      outstanding capital stock of the Company in exchange for (a) the Purchaser’s
      assumption of all of the liabilities of the Company, (b) the Purchaser expanding
      the Existing Anti-Dilution Rights (as such term is defined in the Original
      Agreement) in favor of the Selling Shareholder and (c) a nominal cash amount
      equal to the direct costs incurred by the Selling Shareholder in connection
      with
      the Original Agreement, on the terms and conditions set forth
      therein;
      and

     

    WHEREAS,
      pursuant to the Original Agreement (a) the Selling Shareholder shall, within
      five (5) business days following the Closing Date (as such term is defined
      in
      the Original Agreement) relinquish all Existing Dilution Rights (as such term
      is
      defined therein) by delivering those shares of the Purchaser’s Series B
      preferred stock held by the Selling Shareholder and the Selling Shareholder’s
      spouse and (b) the Purchaser shall, within five (5) days following the execution
      of the Original Agreement, file with the Secretary of State of the State of
      Delaware the Certificate of Designation (as such term is defined in the Original
      Agreement) and receive confirmation from the State of the effectiveness of
      such
      Certificate of Designation; and

     

    WHEREAS,
      the
      Parties desire to amend the Original Agreement to extend the time in which
      (a)
      the Selling Shareholder shall relinquish its Existing Dilution Rights and (b)
      the Purchaser shall file the Certificate of Designation as is more fully set
      forth herein.

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual promises, conditions and covenants contained herein
      and in the Employment Agreement, and for other good and valuable consideration,
      receipt of which is hereby acknowledged, the Parties hereto agree as follows:
      

     

    AGREEMENT:

     

    1. Amendment
      to Section 1.2 of the Original Agreement.
      The
      Original Agreement is hereby amended by deleting Section 1.2 therein in its
      entirety and by inserting in lieu thereof the following:

     

    “1.2
      Additional
      Dilution Rights.
      As
      partial consideration for the acquisition by the Purchaser of all of the
      outstanding capital stock of the Company in accordance with Section 1.1(b)
      above, within fifteen (15) business days following the Closing Date (as defined
      below), the Selling Shareholder shall relinquish all Existing Anti-Dilution
      Rights by delivering to the Purchaser those shares of Emerge Series B Preferred
      held by the Emerge Shareholders and, in exchange therefore, the Purchaser shall
      issue and deliver to the Emerge Shareholders, in the denominations set forth
      opposite each Emerge Shareholder’s name on Schedule
      A
      attached
      hereto, shares of its convertible Series D preferred stock, par value $0.01
      per
      share (the “Emerge
      Series D Preferred”).
      The
      Emerge Series D Preferred shares will have substantially the same powers,
      designations, preferences and relative, participating, optional and other
      special rights as the Emerge Series B Preferred except that holders of Emerge
      Series D Preferred will receive those additional anti-dilution rights (the
      “Additional
      Anti-Dilution Rights”)
      set
      forth in Section 4 of that certain Certificate of Designation of Emerge Series
      D
      Preferred Stock (the “Certificate
      of Designation”)
      in the
      form attached hereto as Exhibit
      A.
      Upon
      the satisfaction of those obligations set forth in Section 1.4.4 (a) and (b)
      herein the Emerge Series B Preferred shall be cancelled and be of no further
      force or effect.”

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2. Amendment
      to Section 1.4.3 of the Original Agreement.
      The
      Original Agreement is hereby amended by deleting Section 1.4.3 therein in its
      entirety and by inserting in lieu thereof the following:

     

    “1.4.3 Within
      fifteen (15) business days following the execution of this Agreement, the
      Purchaser shall file with the Secretary of State of the State of Delaware the
      Certificate of Designation and receive confirmation from the State of the
      effectiveness of such Certificate of Designation.”

     

    3. Full
      Force and Effect.
      Except
      as expressly amended herein, all other terms and provisions of the Original
      Agreement shall remain in full force and effect and are hereby ratified and
      confirmed in all respects. 

    

    4. Counterparts.
      This
      Amendment may be executed in one (1) or more counterparts, each of which such
      counterparts shall be deemed an original and all of which together shall
      constitute one and the same Amendment. 

     

    5. Further
      Amendments.
      The
      Original Agreement shall further be amended wherever appropriate to reflect
      the
      changes indicated above.

     

    6. Recitals.
      The
      Recitals hereto are hereby incorporated into this Amendment as if fully stated
      herein.

     

    7. Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Delaware. The parties hereto agree that any claim, suit, action or
      proceeding arising out of or relating to this Agreement or the transactions
      contemplated hereby shall be submitted for adjudication exclusively in any
      state
      or federal court sitting in Houston, Texas and each party hereto expressly
      agrees to be bound by such selection of jurisdiction and venue for purposes
      of
      such adjudication. Each party (a) waives any objection which it may have that
      such court is not a convenient forum for any such adjudication, (b) agrees
      and
      consents to the personal jurisdiction of such court with respect to any claim
      or
      dispute arising out of or relating to this Agreement or the transactions
      contemplated hereby and (c) agrees that process issued out of such court or
      in
      accordance with the rules of practice of such court shall be properly served
      if
      served personally or served by certified mail or other form of substituted
      service, as provided under the rules of practice of such court.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    8. Opportunity
      to Hire Counsel; Role of Kirkpatrick & Lockhart Nicholson Graham
LLP.
      The
      Selling Shareholder and the Company expressly acknowledge that they have been
      advised and have been given an opportunity to hire counsel with respect to
      this
      Amendment and the transactions contemplated hereby. The Selling Shareholder
      and
      the Company further acknowledge that the law firm of Kirkpatrick & Lockhart
      Nicholson Graham LLP
      did
      not
      provide them with any legal advice with respect to the transactions contemplated
      by this Agreement. The Selling Shareholder and the Company further acknowledge
      that the law firm of Kirkpatrick & Lockhart Nicholson Graham LLP
      has
      solely represented the Purchaser in connection with this Agreement and the
      transactions contemplated hereby and no other person.

     

    

     

    [Remainder
      of Page Intentionally Left Blank]

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      Parties have executed this First Amendment as of the date first written
      above.

     

    
      	 	
              Purchaser:

            
	 	 
	 	
              Emerge
                Capital Corp.

            
	 	 
	 	
              By: /s/
                Pete Shukis   

            
	 	
              Name:
                Pete Shukis

            
	 	
              Title:
                Controller 

            
	 	 
	 	 
	 	
              Company:

            
	 	 
	 	
              Kipling
                Holdings, Inc.

            
	 	 
	 	
              By: /s/
                Timothy J. Connolly   

            
	 	
              Name:
                Timothy J. Connolly

            
	 	
              Title:
                Chief Executive Officer 

            
	 	 
	 	 
	 	
              Selling
                Shareholder:

            
	 	 
	 	
              Timothy
                J. Connolly, an Individual

            
	 	 
	 	
              By: /s/
                Timothy J. Connolly

            
	 	
              Name:
                Timothy J. Connolly

            
	 	 

    

    

    
      
         

      

        4Unassociated Document

    Exhibit
      10.1

    

    

    EMPLOYMENT
      TERMINATION NOTICE AND NON-SOLICITATION POLICY 

    FOR
      THE CITIGROUP MANAGEMENT COMMITTEE1  

    

    

    As
      a
      member of the Citigroup Management Committee, effective October 2, 2006 you
      are
      required to give notice of the termination of your employment to your Citigroup
      employer (i.e.,
      Citigroup Inc. or one of its subsidiaries or their affiliates; referred to
      individually and collectively as “Citigroup”) and to refrain from the
      solicitation of Citigroup employees in the manner described below (the “CMC
      Policy”). 

    

    In
      exchange for your commitment to this CMC Policy, your Citigroup employer will
      provide you with reciprocal notice, as described in Section 2 below, should
      it
      ask you to leave.

    

    1. If
      It Is Your Decision
      To Leave

    

    If
      you
      resign, or otherwise terminate your employment relationship with Citigroup,
      you
      must give your Citigroup employer 75 days’ prior written notice of the effective
      date of your last day of employment. Your Citigroup employer may, in its sole
      discretion, waive all or any part of the applicable 75-day notice period and
      consider your termination effective on any such earlier date as determined
      by
      it. In no event, however, shall such earlier date be sooner than 2 business
      days
      from the date you give notice.2 Also,
      your Citigroup employer may, in its sole discretion, remove you from any
      assigned duties, assign you to other duties, or require you to remain away
      from
      its offices, during all or any part of the applicable 75-day notice period.
      During the applicable 75-day notice period, or any lesser period as determined
      by your Citigroup employer, you will continue to be paid your then-current
      base
      salary and remain benefits-eligible. Once notice is given, you are no longer
      eligible for any discretionary incentive or retention 

    

    
      
        

      

    

    
      
        1 Except
          as specifically provided below, this CMC Policy is not intended to shorten
          or
          limit any longer notice period or nonsolicitation obligation that you may
          have
          pursuant to contract, collective agreement or applicable policy, local
          law, rule
          or regulation (“Independent Obligation”), nor is it intended to limit or reduce
          any other obligation that you or your Citigroup employer may have pursuant
          to an
          Independent Obligation. To the extent such conflict exists between this
          CMC
          Policy and an Independent Obligation, the Independent Obligation shall
          govern.
          Independent Obligations may include (where applicable, and without limitation)
          the Corporate and Investment Banking or Global Wealth Management Employment
          Termination Notice Policy; however, notwithstanding any provision to the
          contrary herein, if you are a US CIB or GWM employee who previously committed
          to
          an early termination notice, that period will be superseded and replaced
          by the
          75-day early termination notice provided under this CMC Policy.

         

      

      
        2
          Between the date you give notice and your actual date of termination, you
          should
          consider exercising any vested options awarded to you pursuant to the terms
          of
          Citigroup’s equity compensation plans if such options would be otherwise
          cancelled on your termination date.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        award
          (individually and collectively, “Award”) even if the notice period includes the
          date on which an Award otherwise would have been made to you had you not
          given
          notice.

         

        2. If
          Your Citigroup Employer Asks You to Leave

        

        If
          your
          Citigroup employer asks you to leave, it will not terminate your employment,
          except for Cause, without giving you 75 days’ notice, provided, however, your
          Citigroup employer may, in its sole discretion, elect to accelerate your
          then
          current base salary for the applicable 75-day notice period and pay it
          to you in
          lieu of notice.3  

      

       

    

    For
      purposes of this provision, your Citigroup employer shall have “Cause” to
      terminate your employment by reason of an action taken by any governmental
      or
      non-governmental regulatory body which substantially impairs you from performing
      your duties; your misconduct in connection with your employment; your breach
      (intentional or otherwise) of any Citigroup policy or rule; your dishonesty
      in
      connection with your employment; your breach of your fiduciary duty of loyalty
      to Citigroup; your violation of any federal or state securities, banking or
      any
      other applicable law, constitution, by-law, rule or regulation; your failure
      to
      remain licensed to perform your functions, if applicable; your failure to devote
      all of your professional time to your assigned duties and to the business of
      Citigroup; your conviction of a felony; your conviction of a crime of breach
      of
      trust or dishonesty or participation in a pre-trial diversion program for such
      a
      crime; your failure to perform or your negligence in the performance of your
      duties; or any factual misrepresentation made by you in the furtherance of
      your
      hiring.
      4

     

    
      
        3.
          Nonsolicitation
          of Employees

      

    

    

    During
      your employment (inclusive of the 75-day notice period required by this CMC
      Policy), and for the one-year period after your termination date, in addition
      to
      any obligation you may have by virtue of the terms of any Independent
      Obligation, you agree that you will not directly or indirectly 

     

    
      

      
        3
          This
          notice period shall run concurrently with any other notice of termination
          that
          your Citigroup employer may give you. To the extent, however, your Citigroup
          employer is legally obligated to give you notice that is equal to or greater
          than the notice period provided for in this CMC Policy, your Citigroup
          employer
          shall then make a payment to you equal to 3 days of base salary as alternative
          consideration for your commitment to comply with this CMC Policy.

         

      

      
        4
          If you and your Citigroup employer are subject to a different definition
          of
“Cause” pursuant to the terms of an Independent Obligation, the definition of
“Cause” in the Independent Obligation shall apply. 

    

    
      
        
        

      

      
        Page
          2

        
          

        

      

      
        
        

      

    

    
    

    solicit
      or induce away from Citigroup or cause to be solicited or induced
      away from Citigroup any of its employees.5

     

    
      
        4.
          Consequences
          of Your Breach

      

    

    

    If
      you
      failed to comply with the Policy by failing to give compliant notice or by
      soliciting employees during the notice period, you will be required to repay
      your Citigroup employer the gross amount of the cash bonus component of such
      Award. A paid cash bonus is not subject to your repayment if you comply with
      the
      CMC Policy. See additional information below regarding your notice obligations
      and your Awards.

    

    In
      addition, if you violate any term of the CMC Policy during the 75-day notice
      period and the one-year period thereafter, Citigroup may seek an order or
      injunction from a court or arbitration panel to stop the violation, and may
      seek
      other permissible remedies. Citigroup may hold you personally liable for any
      damages it suffers as result of the breach, such as additional compensation
      paid
      to replace or retain solicited employees.

    

    Your
      Notice Obligations and Your Awards

    

    Under
      longstanding Citigroup policy and practice, you are not entitled to a
      discretionary incentive or retention award (individually and collectively,
      “Award”) for a particular year if you resign before, or are not actively
      employed on, the day that Awards are made, even if you worked all or a portion
      of the year for which the Award is made. For example, if a Citigroup Management
      Committee member resigns from Citigroup during 2006, or before Awards were
      actually made in January 2007, s/he would not be entitled to any Award for
      2006.

    

    If
      you
      give early notice of your decision to resign from Citigroup as required by
      the
      CMC Policy and such notice is given at any time before Awards are made, even
      if
      you worked all or a portion of the year for which the Awards are made, you
      are
      not eligible to receive any Award for that year. For example, a Citigroup
      Management Committee member who gives his/her 75-day notice on December 31,
      2006
      (intending to terminate his/her employment on March 16, 2007) would not be
      eligible for any Award for 2006 even though Awards for 2006 are likely to be
      made prior to his/her termination date in March. 

    

    A
      discretionary cash bonus that has already been paid is subject to your repayment
      if you do not comply with the CMC Policy by either (1) failing to give compliant
      notice, or (2) soliciting Citigroup employees during the notice period. For
      example, a Citigroup Management Committee member gives notice on February 1,
      2007, after the 2006 Awards have been made, but violates the CMC Policy by
      terminating his/her 

     

    ________________

    5
      In the
      event you fail to provide notice as required by this CMC Policy, your obligation
      not to solicit as described in this CMC Policy will commence as of your
      termination date and will run for the remainder of the 75-day notice period
      and
      for an additional one-year period thereafter.

     

    
      
        
        

      

      
        Page
          3

        
          

        

      

      
        
        

      

    

    employment
      prior to the required 75 days notice period after February 1st. S/he would
      have
      to repay the gross amount of the cash bonus s/he received in early 2007. The
      gross amount of the cash bonus is subject to repayment because the Management
      Committee member failed to give notice 75 days earlier and, thereby, frustrated
      the purpose of the CMC Policy and received an Award s/he would not have
      otherwise been awarded had s/he given notice as required. 

     

    On
      the
      other hand, a discretionary cash bonus that has been paid is not subject to
      your
      repayment if you fully comply with the CMC Policy. Consider a Citigroup
      Management Committee member who works all of 2006 and receives an Award in
      January 2007. The day after the Award is made, s/he gives his/her 75 days’
notice of his/her decision to resign and does not solicit employees during
      that
      notice period. Because s/he complied with the CMC Policy, his/her cash bonus
      component of the Award is not subject to repayment.

    

    Other
      Terms of the CMC Policy

    

    If
      your
      employment relationship with your Citigroup employer is currently “at-will”,
      nothing herein constitutes or is intended to constitute a promise or guarantee
      of employment for a definite period or any change to the employment “at-will”
relationship between you and your Citigroup employer, i.e.,
      both
      your Citigroup employer and you retain the right to terminate the employment
      relationship at any time (subject to the notice periods described in Sections
      1
      and 2 above) for no reason or for any reason not otherwise prohibited by
      law.

    

    If
      you
      are employed in the United States or are on a formal expatriate assignment
      at
      the time you or your Citigroup employer decides to terminate the employment
      relationship, this CMC Policy shall be governed by the laws of the State of
      New
      York (regardless of the laws that might otherwise govern under applicable
      conflict of law principles) as to all matters, including, but not limited to,
      validity, construction, effect, performance and remedies. If you are otherwise
      employed outside the United States at the time you or your Citigroup employer
      decides to terminate the employment relationship, this CMC Policy shall be
      governed by the laws of the country (or the appropriate political subdivision
      thereof) designated in your contract of employment. In the absence of any such
      designation, this CMC Policy shall be governed by the laws of the country (or
      the appropriate political subdivision thereof) in which you are employed at
      such
      time.

    

    

    *
      * * *
      *

    
      
        
        

      

      
        Page
          4

        
          

        

      

      
        
        

      

    

    

    

    I
      have
      read this CMC Policy and understand its terms. By signing below, I agree to
      comply with the terms and conditions of this CMC Policy set forth above.

    

    

    
      	ACCEPTED AND AGREED:	 	 
	 	 	 
	 	 	 
	Signature	 	Date
	 	 	 
	 	 	 
	Name (print)	 	 

    

     

    

    
      
        
        

      

      Page
        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"}]]