Document:

Exhibit 10.14 Stock Purchase Agreement

EXHIBIT 10.14

STOCK PURCHASE AGREEMENT

This Agreement (the “Agreement”), dated as of July 24, 2014, is by and between SofTech, Inc., a Massachusetts corporation (“SofTech”), and Greenleaf Capital, Inc., a Michigan corporation (the “Seller”).

WHEREAS, the Seller owns 101,411 shares of common stock, par value $0.10 per share (the “Shares”), of SofTech, and SofTech desires to repurchase all of those shares.

NOW, THEREFORE, in consideration of the mutual promises, representations, warranties, covenants, agreements and terms and conditions contained herein and intending to be legally bound, the parties hereto agree as follows:

Section 1.

Purchase and Sale of Common Stock

(a)

Purchase. On the terms and subject to the conditions set forth in this Agreement, SofTech shall purchase the Shares from the Seller, and the Seller shall sell the Shares to SofTech, for $0.37 per Share, constituting an aggregate purchase price equal to $37,522.07 (the “Purchase Price”).

(b)

Closing. Within five business days of the execution of this Agreement, or such other date as agreed to in writing by the parties hereto (the “Closing Date”), and subject to the receipt by SofTech of the written consent of Prides Crossing Capital, L.P. and Prides Crossing Capital-A, L.P. to the purchase of the Shares, SofTech shall pay and deliver to Seller the Purchase Price by wire transfer of immediately available funds in accordance with the wire instructions provided by the Seller, and the Seller shall transfer the Shares to a book entry account designated by SofTech, or in such other manner as agreed to in writing by the parties hereto.

Section 2.

Representations, Warranties and Agreements 

(a)

SofTech, as one party, and the Seller, as the other party, hereby make the following representations and warranties to each other:

(i)

It has the full power and authority to enter into this Agreement and to consummate the transaction contemplated hereby.

(ii)

This Agreement is a valid and binding agreement, enforceable against such party in accordance with its terms, subject to bankruptcy and similar laws and to equitable principles.

(b)

The Seller hereby represents and warrants to SofTech that:

(i)

Such Seller has good and valid title to the Shares, free and clear of all liens, encumbrances or claims.

(ii)

Upon delivery of the Shares to be sold by the Seller, payment therefor pursuant hereto and assuming SofTech has no notice of any “adverse claim” (within the meaning of Section 8-102 of the Uniform Commercial Code (the “UCC”)) (x) SofTech shall be a “protected purchaser” of such Shares within the meaning of Section 8-303 of the UCC, and (y) under Section 8-501 of the UCC, SofTech will acquire good and valid title and a valid security entitlement in respect of such Shares free of any “adverse claims” (within the meaning of Section 8-102 of the UCC).

(iii)

The execution, delivery and performance of this Agreement by the Seller and the consummation by the Seller of the transactions contemplated hereby do not and will not (x) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, any indenture, mortgage, deed of trust, loan agreement, license or other agreement or instrument to which such Seller is a party or by which such Seller is bound or to which any of the property or assets of such Seller is subject, or (y) result in any violation of any statute or any order, rule or regulation of any court or governmental agency or body having jurisdiction over such Seller or the property or assets of such Seller.

(iv)

Except for filings by the Seller under Section 13 and Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as may be applicable, no consent, approval, authorization or order of, or filing or registration with, any court or governmental agency or body having jurisdiction over the Seller or the property or assets of the Seller is required for the execution, delivery and performance of this Agreement and the consummation by the Seller of the transactions contemplated hereby.

(v)

Seller represents that it has not conducted any general solicitation for offerees with respect to the Shares.

Section 3

General Release and Nondisparagement

(a)

General Release by Seller. Seller hereby releases, acquits, satisfies and forever discharges SofTech, and all of SofTech’s current and former officers, directors, employees, agents, representatives, predecessors, successors, investors, partners, affiliates, vendors, customers and insurers (and each of their respective heirs, successors and descendants) from any and all claims, demands, liabilities, promises, contracts, suits, debts, covenants, controversies, agreements and causes of action of any kind whatsoever, whether now known or unknown, whether currently existing or that will arise in the future, arising out of or relating to actions or failures to act from the beginning of time through the date of this Agreement.

(b)

Nondisparagement by Seller. Seller agrees not to make or publish disparaging statements of any kind (whether written or oral) regarding SofTech, its subsidiaries, related and affiliated companies and entities, or their respective present or past shareholders, directors, officers, or employees. 

(c)

General Release by SofTech. SofTech hereby releases, acquits, satisfies and forever discharges Seller, and all of Seller’s current and former officers, directors, employees, agents, representatives, trustees, predecessors, successors, investors, partners, affiliates, vendors, customers and insurers (and each of their respective heirs, successors and descendants) from any and all claims, demands, liabilities, promises, contracts, suits, debts, covenants, controversies, agreements and causes of action of any kind whatsoever, whether now known or unknown, whether currently existing or that will arise in the future, arising out of or relating to actions or failures to act from the beginning of time through the date of this Agreement.

(d)

Nondisparagement by SofTech. SofTech agrees not to make or publish disparaging statements of any kind (whether written or oral) regarding Seller, related and affiliated companies and entities, or their respective present or past shareholders, directors, officers, or employees. 

Section 4

Miscellaneous

(a)

Termination of Stockholder’s Agreement. The parties acknowledge and agree that as a result of Seller’s sale of the Remaining Shares to SofTech, the Stockholders Agreement dated March 8, 2011 is terminated as are all proxies delivered by Seller pursuant to the Stockholders Agreement.

(b)

Further Assurances. Each party hereto shall properly execute and deliver such further agreements and instruments, and take such further actions, as the other party may reasonably request in order to carry out the purposes and intent of this Agreement.

(c)

Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed given (i) when delivery is made or refused if delivered personally, (ii) upon successful written confirmation of facsimile transmission (with subsequent letter confirmation by any other method permitted under this Section), (iii) the next business day, if by overnight courier, and/or (iv) five days after being mailed by certified or registered mail, postage prepaid, return receipt requested, in each case, to the parties, their successors in interest or their assignees at the following addresses, or at such other addresses as the parties may designate by written notice in the manner aforesaid:

If to the Seller:

Greenleaf Capital, Inc.

100 West Michigan Avenue, Suite 300

Kalamazoo, MI 49007

Attention: Michael Elliston

Tel: (269) 553-6924

Fax: (269) 492-6831

SofTech/Greenleaf

Stock Purchase Agreement 

(Remaining Shares)

2

With a copy to:

Lake, Waldorf & Schau, PLC

141 E. Michigan Avenue, Suite 600

Kalamazoo, Michigan 49007

Attention: Jordan R. Schau

Tel: (269) 382-5440

Fax: (269) 382-3508

If to SofTech:

SofTech, Inc.

650 Suffolk Street, Suite 415

Lowell, MA 01854

Attention: Joseph P. Mullaney, Chief Executive Officer

Tel: (978) 513-2730

Fax: (978) 458-4096

With a copy to:

Edwards Wildman Palmer LLP

111 Huntington Avenue

Boston, MA 02199

Attention: Matthew J. Gardella, Esq.

Tel: (617) 239-0789

Fax: (866) 955-8776

(d)

Assignability and Parties in Interest. This Agreement shall not be assignable by any of the parties hereto without the consent of the other parties hereto.

(e)

Governing Law. This Agreement shall be deemed to be made in, and in all respects shall be interpreted, construed and governed by and in accordance with the internal laws of the Commonwealth of Massachusetts, without regard to the conflicts of law principles thereof that would cause the application of the laws of any jurisdiction other than the internal laws of the Commonwealth of Massachusetts.

(f)

Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. Any delivery of an executed counterpart of this Agreement (or counterpart signature page) by facsimile or electronic mail in PDF format shall be as effective as delivery of a manually executed counterpart (or counterpart signature page) of this Agreement.

(g)

Complete Agreement. This Agreement is an integrated agreement containing the entire agreement, and all representations, warranties, covenants and understandings, between the parties hereto with respect to the subject matter hereof and shall supersede all previous and all contemporaneous oral or written negotiations, commitments or understandings. Except as specifically set forth in this Agreement, neither the Seller nor SofTech makes any representation, warranty, covenant or undertaking with respect to the subject matter hereof.

(h)

Modifications, Amendments and Waiver. This Agreement may be modified, amended or otherwise supplemented or terminated only by a writing signed by each of the parties to this Agreement. No waiver of any right or power hereunder shall be deemed effective unless and until a writing waiving such right or power is executed by the party waiving such right or power.

(i)

Third Party Beneficiaries. There are no third party beneficiaries under this Agreement.

SofTech/Greenleaf

Stock Purchase Agreement 

(Remaining Shares)

3

(j)

Expenses. Each party hereto shall bear its own costs and expenses, including, without limitation attorneys’ fees, incurred in connection with this Agreement and the transactions contemplated hereby.

(k)

Confidentiality. Seller agrees to keep the existence and subject matter of this Agreement confidential and not disclose it, unless required by law (in which case the Seller shall give the other party advance notice and opportunity to review the disclosure, and consider in good faith any reasonable comments thereto). Specifically, the Seller agrees to use reasonable efforts to provide SofTech with at least one business day to review any proposed disclosure relating to this Agreement and/or any sale of the Shares contemplated hereby in any filing by Seller under Section 13 and Section 16 of the Exchange Act (e.g., amendment of a Schedule 13G or Form 4).

[Remainder of Page Left Intentionally Blank]

SofTech/Greenleaf

Stock Purchase Agreement 

(Remaining Shares)

4

IN WITNESS WHEREOF, each of SofTech and the Seller has caused this Agreement to be signed by their respective duly authorized officers as of the date first written above.

SOFTECH, INC.

By: /s/ Joseph P. Mullaney

Name: Joseph P. Mullaney

Title: Chief Executive Officer

[First Signature Page to the Stock Purchase Agreement]

SofTech/Greenleaf

Stock Purchase Agreement 

(Remaining Shares)

SELLER:

GREENLEAF CAPITAL, INC.

/s/ Michael D. Elliston

Name: Michael D. Elliston

Title: Chief Financial Officer

[Second and Final Signature Page to the Stock Purchase Agreement]Exhibit 10.15 Short Term Loan Agreement

EXHIBIT 10.15

TERM NOTE

This short term loan agreement (the “Term Note”) dated as of October 1, 2014, is made by SofTech, Inc., a Massachusetts corporation with offices at 650 Suffolk Street, Suite 415, Lowell, MA 01854 (the “Borrower”) in favor of EssigPR, Inc., a Puerto Rico corporation (the “Lender”).

1.

Promise to Pay. For value received, the Borrower promises to pay to the Lender the principal amount of Three Hundred Thousand Dollars ($300,000), at the times described below, together with interest thereon as described below. 

2.

Funding Mechanism. The $300,000 Term Note shall be funded solely from the $320,000 payment (the “Holdback Payment”) due from Mentor Graphics Corporation (“Mentor”) to Borrower related to Mentor’s acquisition of the CADRA product line in October 2013. The Holdback Payment was part of a series of deferred payments due from Mentor that have been assigned to EssigPR as collateral for a $750,000 promissory note entered into in June 2014. The Holdback Payment is due from Mentor on October 11, 2014. 

3.

Collateral. Upon repayment of the Borrower’s existing debt facility with Prides Capital (“Existing Lender”) and the release of Existing Lender’s first security interest in all of the Borrower’s assets, any amounts owed by Borrower under this Term Note shall be secured by all of the Borrower’s accounts receivable until paid in full.

4.

Interest. Borrower shall make quarterly interest payments, in arrears, to Lender at an annual interest rate of 9.5% computed on the basis of a 360-day year for the actual number of days elapsed on the unpaid principal balance. 

5.

Warrants. Borrower hereby awards Lender 5,000 stock options to purchase SofTech common stock at an exercise price of $1.00 per share. Such stock options will be fully vested upon execution of this Term Note. The stock options will expire on the ten year anniversary of the award if not exercised. 

6.

Term. The term of this Term Note shall be six months. Borrower shall pay the principal of this Term Note in full on April 10, 2015.

 

7.

Prepayments. Borrower may prepay all or part of the principal of this Term Note at any time. Any partial prepayment will be applied to the installment or installments last falling due under this Term Note.

8.

Manner and Place of Payments.  Payments of principal and interest shall be paid in lawful money of the United States of America on the day when due, by wire transfer of immediately available funds to the account of Lender designated by it in writing.  If any principal or interest payment under this Term Note shall be stated to be due on a day other than a business day, such payment shall be made on the next succeeding business day, and such extension of time shall in such case be included in the computation of interest.

9.

Default and Acceleration. Each of the following shall be an event of default under this Term Note:

a.)

a default in the payment of any installment of principal or interest under this Term Note that Borrower at any time owes to the Lender or in the payment of any other indebtedness or obligation that Borrower now or in the future owes to the Lender, as and when it shall be or become due and payable unless cured within five (5) business days of written notice from Lender;

b.)

a default in the performance of any other obligation to Lender under this Term Note,  or any other agreement that has been or in the future is entered into between Borrower and Lender unless cured within five (5) business days of written notice from Lender; or

c.)

Borrower dissolves, becomes insolvent, or makes an assignment for the benefit of creditors.

On the occurrence and during the continuation of any event of default that has not been cured after written notice from Lender, all or any part of the indebtedness and all or any part of all other indebtedness evidenced by this Term Note and obligation then owing by Borrower to the Lender shall, at the option of the Lender, become immediately due and payable without notice or demand. If a voluntary or involuntary case in bankruptcy, receivership, or insolvency is at any time begun by or against Borrower, then all such indebtedness shall automatically become immediately due and payable. 

10.

Place and Application of Payments. Each payment on this Term Note shall be made at Lender’s address set forth above or any other place that the Lender directs in writing. Any payment on this Term Note shall be applied in the following order: first to any expenses (including expenses of collection) then due and payable to Lender under this Term Note, second to any accrued and unpaid interest, and third to the unpaid principal balance. If Borrower at any time owes the Lender any indebtedness or obligation in addition to the indebtedness evidenced by this Term Note, and if any indebtedness owed by Borrower to the Lender is then in default, then Borrower shall have no right to direct or designate the particular indebtedness or obligation on which any payment made by or collected from Borrower or other security shall be applied. Borrower waives any such right and agrees that the manner of application of any such payment, as between or among such indebtedness and obligations, shall be determined solely by the Lender.

11.

Setoff. The Lender shall have the right at any time to set off any indebtedness that Lender then owes to Borrower against any indebtedness evidenced by this Term Note that is then due and payable.

12.

Remedies. The Lender shall have all rights and remedies provided by law and by agreement of any Borrower, as well as any rights of a secured creditor under the Uniform Commercial Code. Any requirement of reasonable notice with respect to any sale or other disposition of collateral shall be met if the Lender sends the notice at least ten days before the date of sale or other disposition. Borrower shall reimburse the Lender for all expenses, including reasonable attorney fees and legal expenses that the Lender pays or incurs in protecting and enforcing the rights of and obligations to the Lender under any provision of this Term Note.

13.

Waivers. No delay by the Lender shall be a waiver of the exercise of any right or remedy. No single or partial exercise by the Lender of any right or remedy shall preclude any other or future exercise of that or any other right or remedy. No waiver by the Lender of any default or of any provision of this Term Note shall be effective unless it is in writing and signed by the Lender. No waiver of any right or remedy on one occasion shall be a waiver of that right or remedy on any future occasion.

Borrower waives demand for payment, presentment, notice of dishonor, and protest of this Term Note, waives all defenses based on suretyship or impairment of collateral, and consents to any extension or postponement of time of its payment, to any substitution, exchange, or release of all or any part of any security given to secure this Term Note, to the addition of any party, and to the release, discharge, waiver, modification, or suspension of any rights and remedies against any person who may be liable for the indebtedness evidenced by this Term Note.

14.

Applicable Law and Jurisdiction. This Term Note shall be governed by and interpreted according to the laws of the Commonwealth of Massachusetts and that any action or proceeding arising under this Term Note may be commenced in any federal or state court of the Commonwealth of Massachusetts sitting in the County of Suffolk.

EACH OF LENDER AND BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION, INCLUDING ANY CLAIM, COUNTERCLAIM, CROSS-CLAIM OR THIRD-PARTY CLAIM (“CLAIM”) THAT IS BASED UPON, ARISES OUT OF, OR RELATES TO THIS TERM NOTE OR THE INDEBTEDNESS EVIDENCED BY IT, INCLUDING, WITHOUT LIMITATION, ANY CLAIM BASED UPON, ARISING OUT OF, OR RELATING TO ANY ACTION OR INACTION OF LENDER IN CONNECTION WITH ANY ACCELERATION, ENFORCEMENT, OR COLLECTION OF THIS NOTE OR SUCH INDEBTEDNESS.

					
	BORROWER

	 
	LENDER

	 
	 
	 

	SofTech, Inc.

	 
	EssigPR, Inc. 

	 
	 
	 
	 
	 

	By:

	/s/ Joseph Mullaney

	 
	By:

	/s/ Joseph P. Daly

	 
	 
	 
	 
	 

	Its: 

	CEO

	 
	Its:

	CEO

	 
	 
	 
	 
	 

	Date: 

	October 2, 2014

	 
	Date: 

	October 2, 2014

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