Document:

ex10_12.htm

 

 

 

Exhibit 10.12

 

ASI HOLDINGS, LTD.

 

July 30,2010

 

AuraSound Inc.

11839 East Smith Avenue

Santa Fe Springs, California 90670

 

          Re: Lock-Up Agreement

 

Ladies and Gentlemen:

 

          Reference is made to that certain Asset Purchase Agreement, dated as of July 10, 2010 (the “Agreement”), by and among AuraSound, Inc., a Nevada corporation (“AuraSound”), ASI Holdings, Ltd., a Hong Kong corporation (“ASI”), and ASI's wholly-owned subsidiary, ASI Audio Technologies, LLC, an Arizona limited liability company (“ASI Arizona”), pursuant to which AuraSound is acquiring certain assets and liabilities of ASI and ASI Arizona. Pursuant to the Agreement, AuraSound will issue 5,988,005 shares of its common stock (the “Lock-Up Shares”) to ASI's shareholders as follows: 5,389,204 shares to Sunny World Associates Limited, a British Virgin Islands corporation (“Sunny World”), and 598,801 shares to Faithful Aim Limited (“Faithful Aim”). Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Agreement.

 

          As an inducement to AuraSound to enter into the Agreement, each of Sunny World and Faithful Aim hereby agrees that (i) from the date hereof and continuing until the six (6) month anniversary of the Closing Date (the “Initial Lock-Up Period”), with respect to all of the Lock-Up Shares, (ii) from the six (6) month anniversary of the Closing Date until the one (1) year anniversary of the Closing Date (the “Second Lock-Up Period”), with respect to 4,041,904 of the Lock-Up Shares held by Sunny World and 449,100 of the Lock-Up Shares held by Faithful Aim, and (iii) from the one (1) year anniversary of the Closing Date until the two (2) year anniversary of the Closing Date, or such longer period as may be required pursuant to Section 6.5(b) of the Agreement (the “Third Lock-Up Period”), with respect to 2,694,603 of the Lock-Up Shares held by Sunny World and 299,400 of the Lock-Up Shares held by Faithful Aim, Sunny World and Faithful Aim will not (A) offer, sell, contract to sell, pledge, hypothecate, transfer or otherwise dispose of, directly or indirectly, the applicable Lock-Up Shares, (B) enter into any agreement or transaction that would have the effect of any of the foregoing, (C) enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of the applicable Lock-Up Shares, whether any such aforementioned transaction is to be settled by delivery of the applicable Lock-Up Shares, in cash or otherwise, or (D) publicly disclose the intention to make any such offer, sale, pledge or disposition, without, in each case, the approval of at least a majority of the disinterested members of the board of directors of AuraSound.

 

          In furtherance of the foregoing, during the Initial Lock-Up Period, Second Lock-Up Period and Third Lock-Up Period, AuraSound shall, and shall cause its transfer agent and registrar to, decline to make any transfer of the applicable Lock-Up Shares if such transfer would constitute a violation or breach of this letter agreement. AuraSound shall in no event cause the transfer agent to decline to transfer and/or note stop transfer restrictions with respect to any Lock-Up Shares with respect to any sales or transfers permitted by this letter agreement.

  

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          Notwithstanding the foregoing, nothing contained herein shall restrict a holder of the Lock-Up Shares from transferring any of such Lock-Up Shares (i) (A) to   any of its affiliates or (B) for estate planning purposes; provided, however, it shall be a condition to any such transfer that each transferee execute an agreement stating that the transferee is receiving and holding the applicable Lock-Up Shares subject to the provisions of this letter agreement, and there shall be no further transfer of such Lock-Up Shares except in accordance with this letter agreement, or (ii) pursuant to a secondary public offering pursuant to a resale registration statement approved by a majority of the disinterested members of the board of directors of AuraSound.

 

          This letter agreement shall be binding on Sunny World, Faithful Aim and their respective successors and assigns. This letter agreement shall be governed by the laws of the State of California, USA and venue for any legal action hereunder shall be in the state or federal courts located in the City of Los Angeles, California. AuraSound shall be entitled to seek injunctive relief to enforce its rights hereunder, in addition to any other remedies available at law or in equity.

 

[Signature Page Follows]

  

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          Intending to be legally bound, the undersigned have caused this letter agreement to be duly executed and delivered to AuraSound as of the date first written above.

 

	 	SUNNY WORLD ASSOCIATES LIMITED	 
	 	 	 
	 		 

 

	 	FAITHFUL AIM LIMITED	 
	 	 	 	 
	
 

	
By:

	 	 
	 	Name:	 	 
	 	Title:	 	 

 

	

ACKNOWLEDGED AND AGREED:

	
 

	
 

	 	 	 
	
AuraSound, Inc.

	
 

	
 

	 	 	 	 
	
By:

	 	 	 
	Name: Arthur Liu	 	 
	
Title: Chief Executive Officer

	
 

	
 

 

[SIGNATURE PAGE TO LOCK-UP AGREEMENT]

  

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          Intending to be legally bound, the undersigned have caused this letter agreement to be duly executed and delivered to AuraSound as of the date first written above.

 

 

	 	SUNNY WORLD ASSOCIATES LIMITED	 
	 	 	 	 
	
 

	
By:

	 	 
	 	Name: Harald Armin Weisshaupt	 
	 	Title:	 	 

 

	 	FAITHFUL AIM LIMITED	 
	 	 	 
	 	 	 

 

	

ACKNOWLEDGED AND AGREED: 

	
 

	
 

	 	 	 
	AuraSound, Inc.	 	 
	
 

	
 

	
 

	By:	 	 	 
	Name: Arthur Liu	 	 
	
Title: Chief Executive Officer

	
 

 

[SIGNATURE PAGE TO LOCK-UP AGREEMENT]

  

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          Intending to be legally bound, the undersigned have caused this letter agreement to be duly executed and delivered to AuraSound as of the date first written above.

 

	 	SUNNY WORLD ASSOCIATES LIMITED	 
	 	 	 	 
	
 

	
By:

	 	 
	 	Name: Harald Armin Weisshaupt 	 
	 	Title:	 

 

	 	FAITHFUL AIM LIMITED	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	Name: 	 	 
	 	Title:	 	 

 

 

[SIGNATURE PAGE TO LOCK-UP AGREEMENT]

  

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Exhibit 10.1                JOINDER AGREEMENT
 
THIS JOINDER AGREEMENT dated as of March 1, 2011 (this “Agreement”) is executed by Wells Fargo Bank, National Association (the “New Lender”).
 
WHEREAS, Fortegra Financial Corporation (“Fortegra”) and LOTS Intermediate Co. (“LOTS”; collectively with Fortegra, the “Borrowers”) have entered into that certain Revolving Credit Agreement dated as of June 16, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among the Borrowers, the financial institutions from time to time party thereto as Lenders (the “Lenders”), SunTrust Bank, in its capacity as Administrative Agent (the “Administrative Agent”) and the lenders from time to time party thereto (the “Lenders”) ; and
 
WHEREAS, pursuant to Section 2.21 of the Credit Agreement, the Borrowers have requested that the Aggregate Revolving Commitments under the Credit Agreement increase by $30,000,000.00; and
 
WHEREAS, the New Lender desires to become a Lender under the Credit Agreement as provided in Section 2.21 of the Credit Agreement.
 
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are acknowledged by the parties hereto, the parties hereto hereby agree as follows:
 
Section 1.  Joinder.  Effective as of the date hereof, the New Lender acknowledges and agrees that it shall be a Lender under the Credit Agreement, with a Revolving Commitment in the maximum principal amount of $30,000,000.00, all as if the New Lender were an original Lender under and signatory to the Credit Agreement having a Revolving Commitment in such amount.  In addition to the foregoing, on the date hereof, the New Lender agrees to purchase from the other Lenders its Pro Rata Share (as determined after giving effect to the increase of Revolving Commitments) of any outstanding Revolving Loans, by making available to the Administrative Agent for the account of such other Lenders, in same day funds, an amount equal to the sum of (A) the portion of the outstanding principal amount of such Revolving Loans to be purchased by such New Lender plus (B) interest accrued and unpaid to and as of such date on such portion of the outstanding principal amount of such Revolving Loans on the day other than the last day of an Interest Period.
 
Section 2.  Representations, Warranties and Agreements of the New Lender.  
 
(a)    Generally.  The New Lender (i) represents and warrants to the Administrative Agent, the Lenders and the Borrowers that it is legally authorized to enter into this Agreement and to become a Lender under the Credit Agreement; (ii) confirms that it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant thereto and such other documents and information (including without limitation the Loan Documents) as it has deemed appropriate to make its own credit analysis and decision to become a Lender; and (iii) appoints and authorizes the Administrative Agent to take such action as contractual representative on the New Lender's behalf and to exercise such powers under the

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Credit Agreement and the other Loan Documents as are specifically delegated to the Administrative Agent by the terms thereof, together with such powers as are reasonably incidental thereto.
 
(b)    Representations to Administrative Agent and Lenders.  The New Lender makes and confirms to the Administrative Agent and the Lenders all of the representations, warranties and covenants of a Lender under the Credit Agreement.  Not in limitation of the foregoing, the New Lender acknowledges and agrees that (i) it has, independently and without reliance upon the Administrative Agent, any other Lender, counsel to the Administrative Agent, or any of their respective officers, directors, employees and agents, and based on the financial statements of the Borrowers, the Subsidiaries and other Affiliates thereof, and inquiries of such Persons, its independent due diligence of the business and affairs of the Borrowers, the other Loan Parties, the Subsidiaries and other Persons, its review of the Loan Documents, the legal opinions required to be delivered under the Loan Documents, the advice of its own counsel and such other documents and information as it has deemed appropriate, made its own credit and legal analysis and decision to become a Lender under the Credit Agreement; (ii) it will, independently and without reliance upon the Administrative Agent, or any other Lender or counsel to the Administrative Agent or any of their respective officers, directors, employees and agents, and based on such review, advice, documents and information as it shall deem appropriate at the time, continue to make its own decisions in taking or not taking action under the Loan Documents; and (iii) except as expressly provided in the Credit Agreement or any other Loan Document, the Administrative Agent shall have no duty or responsibility whatsoever, either initially or on a continuing basis, to provide the New Lender with any credit or other information with respect to the Borrowers, any Subsidiary or any other Loan Party or to notify the New Lender of any Event of Default.
 
Section 3.  Address and Payment Instructions.  The New Lender specifies as its address for notices under the Credit Agreement and as its lending office for all Loans, the offices set forth as such on its Administrative Questionnaire delivered to the Administrative Agent.  All payments to be made to the New Lender under the Credit Agreement shall be made as provided in the Credit Agreement in accordance with the payment instructions set forth on the Administrative Questionnaire.
 
Section 4.  Effectiveness of Agreement.  This Agreement shall not be effective until this Agreement is executed and delivered by the New Lender and acknowledged by the Administrative Agent and the Borrowers.
 
Section 5.  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.
 
Section 6.  Counterparts.  This Agreement may be executed in any number of counterparts each of which, when taken together, shall constitute one and the same agreement.

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Section 7.  Headings.  Section headings have been inserted herein for convenience only and shall not be construed to be a part hereof.
 
Section 8.  Amendments; Waivers.  This Agreement may not be amended, changed, waived or modified except by a writing executed by the New Lender, the Administrative Agent and the Borrowers.
 
Section 9.  Binding Effect.  This Agreement shall be binding upon the New Lender, and its successors and permitted assigns and shall inure to the benefit of the Borrowers, the Administrative Agent, and the Lenders, and their respective successors and permitted assigns.
 
Section 10.  Definitions.  Terms not otherwise defined herein are used herein with the respective meanings given them in the Credit Agreement.
 
Section 11.  Entire Agreement.  This Agreement embodies the entire agreement of the parties with respect to the subject matter hereof and supersedes all other prior arrangements and understandings relating to the subject matter hereof.
 
[Signatures on Next Page]
    

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IN WITNESS WHEREOF, the undersigned has duly executed this Joinder Agreement as of the date and year first written above.
 
 
WELLS FARGO BANK, NATIONAL ASSOCIATION
 
 
By:    /s/ Linda D Coley        
Name:    Linda D. Coley, CFA
Title:    Senior Vice President

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Acknowledged and Accepted as of the
date first written above.
 
SUNTRUST BANK, as Administrative Agent
 
 
By:    /s/ K. Scott Bazemore
Name: K. Scott Bazemore
Title:   Vice President
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[Signature Page to Joinder Agreement]

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Acknowledged and Accepted as of the
date first written above.
 
FORTEGRA FINANCIAL CORPORATION
LOTS INTERMEDIATE CO., as Borrowers
 
 
By:    /s/ Michael Vrban        
Name: Michael Vrban
Title: EVP & Chief Accounting Officer
 

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