Document:

crwgform8kex101.htm

Exhibit 10.1

AGREEMENT AND PLAN OF MERGER

 

This Agreement and Plan of Merger (“Agreement”) is made and entered into as of June  9, 2010, by and among CrowdGather, Inc., a Nevada corporation, with its principal office at 20300 Ventura Blvd. Suite 330, Woodland Hills, CA 91364 (“CGI”), Adisn, Inc., a Delaware corporation, with its principal office at 3777 Long Beach Blvd., Suite 280, Long Beach, CA 90807 (“ADISN”), and Adisn Acquisition Corp., a newly-formed wholly-owned subsidiary of CGI, domiciled in Delaware (“Acquisition Sub” and collectively, the “Parties”).

A.           The respective Boards of Directors of CGI and ADISN deem it advisable and in the best interests of each party and their respective stockholders that CGI acquire ADISN through the merger of Acquisition Sub with and into ADISN, pursuant to which ADISN will survive as the wholly-owned subsidiary of CGI (the “Merger”).

 

B.           For federal income tax purposes, the parties intend that the Merger qualify as a tax-free reorganization within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder (the “Tax Code”).

 

In consideration of the foregoing and the representations, warranties and mutual covenants herein made, the parties hereby agree to the foregoing and as follows:

 

Section 1. Definitions.  Capitalized terms not otherwise defined herein have the meanings set forth in the attached Schedule 1.

 

Section 2. Merger.

 

(a) Effecting the Merger.  Upon the terms and subject to the conditions contained in this Agreement, at the Effective Time, Acquisition Sub shall be merged with and into ADISN, and the separate corporate existence of Acquisition Sub shall thereupon cease and ADISN shall continue as the surviving corporation.  ADISN as the surviving corporation after the Merger is sometimes referred to herein as the “Surviving Corporation.”   The effect of the Merger shall be as provided in this Agreement, the Certificate of Merger, and the applicable provisions of Delaware General Corporation Law.  Without limiting the generality of the foregoing, and subject thereto, at the Effective Time, all the property, rights, privileges, powers of ADISN and Acquisition Sub shall vest in the Surviving Corporation, and all debts, liabilities and duties of ADISN and Acquisition Sub shall become debts, liabilities, and duties of the Surviving Corporation.   At the Effective Time, the certificate of incorporation and the bylaws of ADISN shall be the certificate of incorporation and the bylaws of the Surviving Corporation until thereafter amended as provided therein and under applicable law.

 

  

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(b) Conversion of Shares.

 

(i) Each share of Preferred Stock of ADISN (the “ADISN Preferred Shares”) issued and outstanding on the Closing Date (as defined in Section 3, below) shall, by virtue of the Merger and without any action on the part of ADISN, CGI, Acquisition Sub, or the holders of the ADISN Preferred Shares as of the Closing Date, be cancelled and converted into the right to receive that number of validly issued, fully paid and non-assessable shares of common stock of CGI equal to the Preferred Consideration.  No fractional shares will be issued, and any right to receive a fractional share will be rounded-up to the nearest whole share.  The “Preferred Consideration” shall be equal to the Liquidation Preference (as defined in ADISN’s Amended and Restated Certificate of Incorporation in effect immediately prior to the Effective Time) divided by the lower of (i) the 20-day volume weighted average price of CGI’s common stock, the 20th day of which shall be the Trading Day immediately preceding the Closing Date or (ii) the closing price CGI’s common stock on the Closing Date.

 

(ii) Each share of common stock of ADISN (the “ADISN Shares”) issued and outstanding on the Closing Date (as defined in Section 3, below) shall, by virtue of the Merger and without any action on the part of ADISN, CGI, Acquisition Sub, or the holders of the ADISN Shares as of the Closing Date (the “Original Holders”), be cancelled and converted into the right to receive 0.198 validly issued, fully paid and non-assessable shares of common stock of CGI (the “Share Ratio”) such that the Original Holders will be issued a total of approximately 3,518,907 shares of CGI (the “New CGI Shares”) following the conversion (subject to the escrow obligations set forth in Section 2(c) and subject to deduction for the Lease Escrow pursuant to Section 2(d) below), plus a right to receive the Earn-Out Shares if and when they become issuable.  No fractional shares will be issued, and any right to receive a fractional share will be rounded-up to the nearest whole share.

 

(iii) At the Effective Time, the ADISN Shares and ADISN Preferred Shares will be deemed canceled and retired and will cease to exist, and each holder of a certificate for ADISN Shares and ADISN Preferred Shares will cease to have any rights with respect thereto; provided, however, that, following the Closing Date, upon surrender of an original stock certificate representing ADISN Shares or ADISN Preferred Shares, CGI will deliver a stock certificate for shares of common stock of CGI to which such person is entitled pursuant to the Share Ratio or the Preferred Consideration, as applicable, bearing any necessary or appropriate restrictive legend.

 

(iv) At the Effective Time, each share of common stock of Acquisition Sub (“Acquisition Sub Stock”) issued and outstanding immediately prior to the Effective Time shall be converted into and exchanged for one validly issued, fully paid, nonassessable share of common stock of the Surviving Corporation.  Each stock certificate evidencing ownership of any shares of Acquisition Sub Stock shall, at the Effective Time, evidence ownership of such shares of capital stock of the Surviving Corporation.

 

(v) If any certificate evidencing ADISN Shares shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person claiming the certificate to be lost, stolen or destroyed and, if required by CGI, the posting of an indemnity bond, in such reasonable amount as CGI or the transfer agent may direct, as collateral security against any claim that may be made with respect to the certificate, CGI will issue in exchange for the lost, stolen or destroyed certificate the applicable number of shares of CGI common stock.

 

  

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(c) Escrow Shares.  As of the Closing Date, certain of the Original Holders shall deliver an aggregate of 1,848,739 New CGI Shares (the “Escrow Shares”) to Esquire Consulting, Inc. (the "Escrow Agent") to be held in escrow in the event ADISN fails to achieve a certain financial performance thresholds for the six-month and the twelve-month periods following the Closing of the Merger as more described in the Escrow Agreement. The terms of the Escrow Agreement shall be substantially in the form of Exhibit A attached hereto.

 

(d) Earn Out Shares.  If ADISN generates Gross Revenues (as defined below) of more than One Million Five Hundred Sixty Two Thousand Five Hundred Dollars ($1,562,500) (“Performance Threshold”) for the twelve month period following the Closing Date of the Merger (“Earn Out Period”), CGI shall issue an additional One Million Dollars ($1,000,000) to the Original Holders, which shall be payable to Original Holders in shares of CGI’s common stock (“Earn Out Shares”) to be distributed on a pro-rata basis.  The number of Earn Out Shares to be issued to the Original Holders shall be calculated by dividing One Million Dollars ($1,000,000) by the 20-day volume weighted average price of CGI’s common stock, the 20th day of which shall be the Trading Day immediately preceding the one year anniversary of the Closing Date.

 

The Performance Threshold shall be determined, and if the Performance threshold has been attained, the Earn Out Shares shall be issued to the Original Holders, within five (5) business days following the filing by CGI of its Quarterly Report on Form 10-Q for the fiscal quarter in which end of the Earn Out Period occured, or, if end of the Earn Out Period occured during the fourth quarter of a fiscal year, then within five (5) business days following the filing by the Company of its Annual Report on Form 10-K for such fiscal year, as appropriate.

 

“Gross Revenues” shall be defined in accordance with US GAAP.

 

 “Trading Day” shall mean a day on which the New York Stock exchange is open for business.

 

(e) Lease Escrow Shares.  On the Closing Date, a total of 323,863 New CGI Shares (the “Lease Escrow Shares”) shall be deposited with the Escrow Agent to secure the indemnification obligations in Section 10(c)(iii).  The Lease Escrow Shares shall be distributed to the Original Holders in seven (7) equal installments at the end of each calendar quarter beginning September 30, 2010.  The number of Lease Escrow Shares distributed on any distribution date shall be subject to reduction for any pending or satisfied indemnification claims pursuant to Section 10(c)(iii).  The distribution of the Lease Escrow Shares to the Original Holders shall accelerate and such shares shall be distributed in full immediately following the expiration of the applicable indemnification claims period set forth in Section 10(c)(v).

 

(f) Lock-up Shares. The New CGI Shares issued to the ADISN Inside Shareholders (as defined below) shall be locked up for twelve (12) months after the Closing Date pursuant to the terms of the Lock-Up Agreement which shall be substantially in the form of Exhibit B attached hereto. Such Lock-Up Agreement shall provide that the ADISN Inside Shareholders may sell fifty percent (50%) of the New CGI Shares during the first three month period after six (6) months from the Closing Date (i.e. Months 7-9 after the Closing Date) and fifty percent (50%) of the New CGI Shares during the second three month period after six (6) months from the Closing Date (i.e. Months 10-12 after the Closing Date). The Escrow Shares issued to the ADISN Inside Shareholders shall be locked up for eighteen (18) months after the Closing Date; provided however, that the Lock-Up Agreement shall provide that the Adisn Inside Shareholders may sell fifty percent (50%) of the Escrow Shares during the first three month period after the conclusion of twelve month period from the Closing Date (“Escrow Period”) (i.e. Months 13-15 after the Closing Date) and fifty percent (50%) of the Escrow Shares during the second three month period after conclusion of Escrow Period (i.e. Months 16-18 after the Closing Date). “ADISN Inside Shareholders” shall be defined as ADISN’s officers, directors, employees, five percent (5%) shareholders and any affiliates of each of those parties, such that the combined ownership of the ADISN Inside Shareholders shall be greater than or equal to ninety percent (90%) of the issued and outstanding shares of capital stock of ADISN.

 

  

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(g) Piggy-Back Registration Rights.

(i) In the event CGI proposes to file a registration statement with the Securities and Exchange Commission pursuant to the Securities Act covering the public offering of any of its stock (other than a registration relating solely to the issuance of securities by CGI pursuant to a stock option, stock purchase or similar benefit plan or an SEC Rule 145 transaction), CGI shall promptly give each Original Holder written notice of such registration.  CGI shall use all reasonable efforts to cause to be registered all of the New CGI Shares that each such Original Holder has requested to be included in such registration.  Notwithstanding any other provision of this Agreement and regardless of the registration of any New CGI Shares, the New CGI Shares will continue to be subject the lock up provisions specified in Section 2(f).

 

(ii) CGI shall have the right to terminate or withdraw any registration initiated by it under this Section 2(f) before the effective date of such registration, whether or not any Original Holder has elected to include New CGI Shares in such registration.

 

(iii) All expenses (other than underwriting discounts and commissions and stock transfer taxes and fees) incurred in connection with a registration pursuant to Sections 2(f) including, without limitation, registration, filing and qualification fees, printers’ and accounting fees, fees and disbursements of counsel for CGI shall be borne by CGI.

 

(iv) If a registration of which CGI gives notice under this Section 2(f) is for an underwritten offering, then CGI shall so advise the Original Holders.  In such event, the right of any Original Holder to include such Original Holder’s New CGI Shares in such registration shall be conditioned upon such Original Holder’s participation in such underwriting and the inclusion of such Original Holder’s New CGI Shares in the underwriting to the extent provided herein.  All Original Holders proposing to distribute their New CGI Shares through such underwriting shall enter into an underwriting agreement in customary form with the managing underwriters selected for such underwriting.  Notwithstanding any other provision of this Agreement, if the managing underwriters advise CGI that marketing factors require a limitation of the number of New CGI Shares to be underwritten or exclusion of the New CGI Shares, then the managing underwriters may exclude the New CGI Shares from the registration and the underwriting.  If any Original Holder disapproves of the terms of any such underwriting, such Original Holder may elect to withdraw therefrom by written notice to CGI and the managing underwriters.  Any New CGI Shares excluded or withdrawn from such underwriting shall be excluded and withdrawn from the registration.

 

Section 3. Closing Date.  On the terms and subject to the conditions of this Agreement, the closing of the Merger (the “Closing”) shall take place at the offices of M2 Law Professional Corporation, 500 Newport Center Drive, Suite 800, Newport Beach, California 92660, on June 9, 2010, at 10:00 PT, or such other time, date or place as CGI and ADISN may otherwise agree (the “Closing Date”).

 

Section 4. RESERVED.

 

  

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Section 5. ADISN’s Representations and Warranties.  ADISN represents and warrants to CGI that the statements contained in this Section will be true and correct as of the Closing Date, and will not contain any facts, or omit any facts, that render the statements herein to be misleading, except (i) where any variation would not be reasonably likely to have an Adverse Effect, and (ii) as set forth herein and in the disclosure schedule delivered by ADISN to CGI (the “ADISN Schedule”), arranged in sections corresponding to the paragraphs in this Section; the disclosure in any section or paragraph will qualify other paragraphs in this Section to the extent that it is reasonably apparent from a reading of the disclosure that it also qualifies or applies to such other paragraphs.

 

(a) Organization.  ADISN is a corporation validly existing and in good standing under the laws of the State of Delaware and has all requisite power and authority and possesses all necessary governmental approvals necessary to own, lease and operate its properties, to carry on its business as now being conducted, to execute and deliver this Agreement and the agreements contemplated herein, and to consummate the transactions contemplated hereby and thereby.  ADISN is duly qualified to do business and is in good standing in all jurisdictions in which its ownership of property or the character of its business requires such qualification, except where the failure to be so qualified would not reasonably be expected to have an Adverse Effect.  Certified copies of the Certificate of Incorporation and all amendments thereto, of ADISN, as amended to date, have been made available to CGI, are complete and correct, and no amendments have been made thereto or have been authorized since the date thereof.  ADISN is not in violation of any of the provisions of its Certificate of Incorporation or Bylaws.

 

(b) Capitalization.

 

(i) ADISN’s authorized capital stock consists of 31,328,353 shares of common stock, par value $0.001 per share, and 8,179,959 shares of preferred stock, par value $0.001 per share.

 

(ii) There are 17,260,526 shares of common stock issued and outstanding and no shares held in the treasury of ADISN.  All of the issued and outstanding shares of ADISN common stock were duly and validly issued and fully paid, are non-assessable and free of preemptive rights, and were issued in compliance with all applicable state and federal securities laws. There are 5,368,099 shares of preferred stock issued and outstanding and no shares held in the treasury of ADISN.  All of the issued and outstanding shares of ADISN preferred stock were duly and validly issued and fully paid, are non-assessable and free of preemptive rights, and were issued in compliance with all applicable state and federal securities laws.

 

(iii) Except as set forth on the ADISN Schedule, there are no outstanding (A) options, warrants, or other rights to purchase from ADISN any capital stock of ADISN; (B) debt securities or instruments convertible into or exchangeable for shares of such stock; or (C) commitments of any kind for the issuance of additional shares of capital stock or options, warrants or other securities of ADISN.

 

  

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(c) No Subsidiaries.  ADISN does not own any capital stock or other equity interest in any corporation, partnership, joint venture, or other entity.

 

(d) Authorization.  ADISN has all requisite power and authority to execute and deliver this Agreement, to perform its obligations hereunder, and to consummate the transactions contemplated hereby.  The execution and delivery of this Agreement by ADISN and the consummation by ADISN of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate and/or stockholder action by ADISN and no other corporate proceedings on the part of ADISN and no other stockholder vote or consent is necessary to authorize this Agreement or to consummate the transactions contemplated hereby.  This Agreement has been duly and validly executed and delivered by ADISN.  This Agreement and all other agreements and obligations entered into and undertaken in connection with the transactions contemplated hereby to which ADISN is a party constitute the valid and legally binding obligations of ADISN, enforceable against ADISN in accordance with their respective terms, except as may be limited by principles of equity or applicable bankruptcy, reorganization, insolvency, moratorium, fraudulent conveyance or other similar laws relating to or affecting the rights and remedies of creditors generally.  The execution, delivery and performance by ADISN of this Agreement and the agreements provided for herein, and the consummation by ADISN of the transactions contemplated hereby and thereby, will not, with or without the giving of notice or the passage of time or both, violate the provisions of the Certificate of Incorporation or Bylaws of ADISN, or to ADISN’s Knowledge (i) violate the provisions of any law, rule or regulation applicable to ADISN, (ii) violate any judgment, decree, order or award of any court, governmental body or arbitrator; or (iii) conflict with or result in the breach or termination of any term or provision of, or constitute a default under, or cause any acceleration under, or cause the creation of any lien, charge or encumbrance upon the properties or assets of ADISN pursuant to, any indenture, mortgage, deed of trust or other instrument or agreement to which ADISN is a party or by which ADISN or any of its properties is or may be bound.

 

(e) No Conflict.  The execution and delivery of this Agreement by ADISN does not require any consent or approval under, result in any breach of, result in any loss of any benefit under, or constitute a change of control or default (or an event which with notice or lapse of time or both would become a default) under; give to others any right of termination, vesting, amendment, acceleration or cancellation of; or result in the creation of any lien or encumbrance on any property or asset of ADISN pursuant to; any material agreement of ADISN or other instrument or obligation of ADISN.

 

(f) Litigation.  Except as set forth on the ADISN Schedule, there is no action, suit, legal or administrative proceeding or investigation pending or, to ADISN’s Knowledge, threatened against or involving ADISN (either as a plaintiff or defendant) before any court or governmental agency, authority, body or arbitrator.  There is not in existence on the date hereof any order, judgment or decree of any court, tribunal or agency to ADISN’s Knowledge enjoining or requiring ADISN to take any action of any kind with respect to its business, assets or properties.

 

(g) Insurance.  ADISN does not maintain any insurance policies.

 

  

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(h) Personal Property.  ADISN has good and marketable title to all of its tangible personal property free and clear of all liens, leases, encumbrances, claims under bailment and storage agreements, equities, conditional sales contracts, security interests, charges, and restrictions, except for liens, if any, for personal property taxes not due.  Such property is used by ADISN in the ordinary course of its business and is sufficient for continued conduct of ADISN’s business after the Closing Date in substantially the same manner as conducted prior to the Closing Date.  Such property is in good operating condition and repair, normal wear and tear excepted, and normal maintenance has been performed.

 

(i) Intangible Property.  ADISN is the sole and exclusive owner of all right, title and interest in and to all material items of intangible property (including formula and process know-how) necessary for the operation of all material aspects of ADISN’s business as it is currently conducted free and clear of all liens, security interests, charges, encumbrances, equities or other adverse claims.  ADISN has the right and authority to use, and to continue to use after the Closing Date, such property in connection with the conduct of its business in the manner presently conducted, and to its Knowledge such use or continuing use does not and will not materially infringe upon or violate any rights of any other person.

 

(j) Real Property.  Except as set forth on the ADISN Schedule, ADISN is not a party to any real property lease agreements and does not have any interests in any parcel of real property, improved or otherwise.

 

(k) Tax Matters.  ADISN has filed all federal, state and local tax returns and all tax returns for other governing bodies having jurisdiction to levy taxes upon it that are required to be filed.  ADISN has paid all taxes, interest, penalties, assessments and deficiencies that have become due, including without limitation income, franchise, real estate, and sales and withholding taxes.  No examinations of the federal, state or local tax returns of ADISN are currently in progress or threatened and no deficiencies have been asserted or to its Knowledge assessed against ADISN as a result of any audit by the Internal Revenue Service or any state or local taxing authority and no such deficiency has been proposed or threatened.

 

(l) Books and Records.  The general ledger and books of account of ADISN, all minute books of ADISN, all federal, state and local income, franchise, property and other tax returns filed by ADISN, all of which have been made available to CGI, are in all material respects complete and correct and have been maintained in accordance with good business practice and in accordance with all applicable procedures required by laws and regulations.

 

(m) Contracts and Commitments.  The ADISN Schedule lists all material contracts and agreements to which ADISN is a party, whether written or oral, other than those between ADISN and CGI.  Each such contract is a valid and binding agreement of ADISN, enforceable against ADISN in accordance with its terms, is in full force and effect and represents the material terms of the agreement between the respective parties.  ADISN has materially complied with all obligations required pursuant to such contracts to have been performed by ADISN on its part and neither ADISN nor, to its Knowledge, any other party to such contract is in breach of or default in any material respect under any such contract.

 

  

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(n) Compliance with Laws.  ADISN has all requisite licenses, permits and certificates, including environmental, health and safety permits, from federal, state and local authorities necessary to conduct its business as currently conducted and own and operate its assets, except where the failure to have such permits would not reasonably be expected to have an Adverse Effect.  ADISN is not in violation of any material federal, state or local law, regulation or ordinance (including, without limitation, laws, regulations or ordinances relating to building, zoning, environmental, disposal of hazardous waste, land use or similar matters) relating to its business or its properties.

 

(o) Employee Benefit Plans.  Except at set forth on the ADISN Schedule, ADISN has no (A) employee benefit plans as defined in ERISA Section 3(3), (B) bonus, stock option, stock purchase, incentive, deferred compensation, supplemental retirement, severance or other similar employee benefit plans, or (C) material unexpired severance agreements with any current or former employee of ADISN.

 

(p) Indebtedness to and from Affiliates.  ADISN is not indebted, directly or to its Knowledge indirectly, to any officer, director or 10% stockholder of ADISN in any amount other than for salaries for services rendered or reimbursable business expenses, and no such person is indebted to ADISN except for advances made to employees of ADISN in the ordinary course of business to meet reimbursable business expenses.

 

(q) Banking Facilities.  The ADISN Schedule sets forth a true, correct, and complete list of:  (i) each bank, savings and loan or similar financial institution in which ADISN has an account or safety deposit box and the numbers of the accounts or safety deposit boxes maintained by ADISN thereat; and (ii) the names of all signatories authorized to draw on each such account or to have access to any such safety deposit box facility.

 

(r) Regulatory Approvals.  All consents, approvals, authorizations or other requirements prescribed by any law, rule or regulation that must be obtained or satisfied by ADISN and that are necessary for the execution and delivery by ADISN of this Agreement or any documents to be executed and delivered by ADISN in connection therewith have been, or prior to the Closing Date will be, obtained and satisfied.

 

(s) No Brokers.  No broker or finder has acted for ADISN in connection with this Agreement or the transactions contemplated hereby, and no broker or finder is entitled to any brokerage or finder’s fee or other commissions in respect of such transactions based upon agreements, arrangements, or understandings made by or on behalf of ADISN.

 

(t) Disclosure.  The information concerning ADISN set forth in this Agreement, the exhibits and schedules hereto, and any document, statement or certificate furnished or to be furnished in connection herewith does not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated herein or therein or necessary to make the statements and facts contained herein or therein, in light of the circumstances in which they are made, not false or misleading.

 

(u) Tax Treatment.  Neither ADISN nor, to the Knowledge of ADISN, any of its Affiliates has taken or agreed to take action that would prevent the Merger from constituting a reorganization qualifying under the provisions of Section 368 of the Tax Code.

 

  

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Section 6. CGI’s and Acquisition Sub’s Representations and Warranties.  Each of CGI and Acquisition Sub represents and warrants to ADISN and the surviving corporation that the statements contained in this Section will be true and correct as of the Closing Date and will not contain any facts, or omit any facts, that render the statements herein to be misleading, except (i) where any variation would not be reasonably likely to have an Adverse Effect, and (ii) as set forth herein and in the disclosure schedule delivered by CGI and Acquisition Sub to ADISN (the “CGI Schedule”), arranged in sections corresponding to the paragraphs in this Section; the disclosure in any section or paragraph will qualify other paragraphs in this Section to the extent that it is reasonably apparent from a reading of the disclosure that it also qualifies or applies to such other paragraphs.

 

(a) Organization.

 

(ii) CGI is a corporation validly existing and in good standing under the laws of the State of Nevada and has all requisite power and authority and possesses all necessary governmental approvals necessary to own, lease and operate its properties, to carry on its business as now being conducted, to execute and deliver this Agreement and the agreements contemplated herein, and to consummate the transactions contemplated hereby and thereby.  CGI is duly qualified to do business and is in good standing in all jurisdictions in which its ownership of property or the character of its business requires such qualification, except where the failure to be so qualified would not reasonably be expected to have an Adverse Effect.  Copies of its Articles of Incorporation and Bylaws, as amended to date, have been made available to ADISN (if requested by ADISN), are complete and correct, and no amendments have been made thereto or have been authorized since the date thereof.  CGI is not in violation of any of the provisions of its Articles of Incorporation or Bylaws.

 

(iii) Acquisition Sub is a corporation validly existing and in good standing under the laws of the State of Delaware and has all requisite power and authority and possesses all necessary governmental approvals necessary to own, lease and operate its properties, to carry on its business as now being conducted, to execute and deliver this Agreement and the agreements contemplated herein, and to consummate the transactions contemplated hereby and thereby.  Copies of its Certificate of Incorporation and Bylaws have been made available to ADISN (if requested by ADISN), are complete and correct, and no amendments have been made thereto or have been authorized since the date thereof.  Acquisition Sub is not in violation of any of the provisions of its Certificate of Incorporation or Bylaws.

 

(b) Capitalization.

 

(i) CGI’s authorized capital stock consists of 975,000,000 shares of common stock, $0.001 par value.

 

(ii) There are 39,787,748 shares of common stock issued and outstanding, and no shares of common stock of CGI are held in the treasury of CGI.  All of the issued and outstanding shares of common stock of CGI were duly and validly issued and fully paid, are non-assessable and free of preemptive rights, and were issued in compliance with all applicable state and federal securities laws.

 

(iii) Except as set forth on the CGI Schedule, there are no outstanding (A) options, warrants, or other rights to purchase from CGI or Acquisition Sub any capital stock of CGI or Acquisition Sub; (B) debt securities or instruments convertible into or exchangeable for shares of such stock; or (C) commitments of any kind for the issuance of additional shares of capital stock or options, warrants or other securities of CGI or Acquisition Sub.

 

(iv) CGI owns all of the outstanding capital stock of Acquisition Sub, free and clear of all liens or other encumbrances.

 

  

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(c) No Subsidiaries.  Except for Acquisition Sub, CGI does not own any capital stock or other equity interest in any corporation, partnership, joint venture or other entity.

 

(d) Authorization.  Each of CGI and Acquisition Sub has all requisite power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby.  The execution and delivery of this Agreement by CGI and Acquisition Sub and the consummation by CGI and Acquisition Sub of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action by CGI and Acquisition Sub, respectively, and no other corporate proceedings on the part of CGI or Acquisition Sub, respectively, and no stockholder vote or consent is necessary to authorize this Agreement or to consummate the transactions contemplated hereby.  This Agreement has been duly and validly executed and delivered by CGI and Acquisition Sub.  This Agreement and all other agreements and obligations entered into and undertaken in connection with the transactions contemplated hereby to which CGI or Acquisition Sub is a party constitute the valid and legally binding obligations of CGI and Acquisition Sub, respectively, enforceable against CGI and Acquisition Sub, respectively, in accordance with its terms, except as may be limited by principles of equity or applicable bankruptcy, reorganization, insolvency, moratorium, fraudulent conveyance or other similar laws relating to or affecting the rights and remedies of creditors generally.  The execution, delivery and performance by CGI and Acquisition Sub of this Agreement and the agreements provided for herein, and the consummation by CGI and Acquisition Sub of the transactions contemplated hereby and thereby, will not, with or without the giving of notice or the passage of time or both, violate the provisions of the Articles of Incorporation or Bylaws of CGI or the Certificate of Incorporation or Bylaws of Acquisition Sub or, to CGI’s or Acquisition Sub’s Knowledge, (i) violate the provisions of any law, rule or regulation applicable to CGI or Acquisition Sub, (ii) violate any judgment, decree, order or award of any court, governmental body or arbitrator; or (iii) conflict with or result in the breach or termination of any term or provision of, or constitute a default under, or cause any acceleration under, or cause the creation of any lien, charge or encumbrance upon the properties or assets of CGI or Acquisition Sub pursuant to, any indenture, mortgage, deed of trust or other instrument or agreement to which CGI or Acquisition Sub is a party or by which CGI or Acquisition Sub or any of their respective properties is or may be bound.

 

(e) No Conflict.  The execution and delivery of this Agreement by CGI and Acquisition Sub does not require any consent or approval under, result in any breach of, any loss of any benefit under or constitute a change of control or default (or an event which with notice or lapse of time or both would become a default) under, or give to others any right of termination, vesting, amendment, acceleration or cancellation of, or result in the creation of any lien or encumbrance on any property or asset of CGI or Acquisition Sub pursuant to any material agreement of CGI or Acquisition Sub or other instrument or obligation of CGI or Acquisition Sub.

 

(f) Litigation.  There is no action, suit, legal or administrative proceeding or investigation pending or, to CGI’s Knowledge, threatened against or involving CGI or Acquisition Sub (either as a plaintiff or defendant) before any court or governmental agency, authority, body or arbitrator.  There is not in existence on the date hereof any order, judgment or decree of any court, tribunal or agency to CGI’s Knowledge enjoining or requiring CGI or Acquisition Sub to take any action of any kind with respect to its business, assets or properties.

 

  

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(g) Tax Matters.  Within the times and in the manner prescribed by law, CGI has filed all federal, state and local tax returns and all tax returns for other governing bodies having jurisdiction to levy taxes upon it which are required to be filed.  CGI has paid all taxes, interest, penalties, assessments, and deficiencies which have become due, including without limitation income, franchise, real estate, and sales and withholding taxes.  No examinations of the federal, state or local tax returns of CGI are currently in progress nor threatened and no deficiencies have been asserted or to its Knowledge assessed against CGI as a result of any audit by the Internal Revenue Service or any state or local taxing authority and no such deficiency has been proposed or threatened.

 

(h) Books and Records.  The general ledger and books of account of CGI, all minute books of CGI, all federal, state and local income, franchise, property and other tax returns filed by CGI, all reports and filings with the SEC by CGI, all of which have been made available to ADISN (if requested by ADISN), are in all material respects complete and correct and have been maintained in accordance with good business practice and in accordance with all applicable procedures required by laws and regulations.

 

(i) Compliance with Laws.  CGI has all requisite licenses, permits and certificates, including environmental, health and safety permits, from federal, state and local authorities necessary to conduct its business as currently conducted and own and operate its assets, except where the failure to have such permits would not reasonably be expected to have an Adverse Effect.  CGI is not in violation of any material federal, state or local law, regulation or ordinance (including, without limitation, laws, regulations or ordinances relating to building, zoning, environmental, disposal of hazardous waste, land use or similar matters) relating to its business or its properties.

 

(j) Employee Benefit Plans.  Except as disclosed in its filings with the SEC, CGI has no (A) employee benefit plans as defined in ERISA Section 3(3), (B) bonus, stock option, stock purchase, incentive, deferred compensation, supplemental retirement, severance or other similar employee benefit plans, or (C) material unexpired severance agreements with any current or former employee of CGI.  With respect to such plans, individually and in the aggregate, no event has occurred and, to its Knowledge, there exists no condition or set of circumstances in connection with which CGI could be subject to any liability that is reasonably likely to have an Adverse Effect under ERISA, the Tax Code or any other applicable law.

 

(k) Regulatory Approvals.  All consents, approvals, authorizations or other requirements prescribed by any law, rule or regulation that must be obtained or satisfied by CGI and Acquisition Sub and that are necessary for the execution and delivery by CGI and Acquisition Sub of this Agreement or any documents to be executed and delivered by CGI and Acquisition Sub in connection therewith have been obtained and satisfied.

 

(l) No Brokers.  No broker or finder has acted for CGI or Acquisition Sub in connection with this Agreement or the transactions contemplated hereby, and no broker or finder is entitled to any brokerage or finder’s fee or other commissions in respect of such transactions based upon agreements, arrangements or understandings made by or on behalf of CGI or Acquisition Sub.

 

  

11

  

 

(m) Disclosure.  The information concerning each of CGI and Acquisition Sub set forth in its reports and filings with the SEC, this Agreement, the exhibits and schedules hereto, and any document, statement or certificate furnished or to be furnished in connection herewith (as applicable) does not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated herein or therein or necessary to make the statements and facts contained herein or therein, in light of the circumstances in which they are made, not false or misleading.

 

(n) SEC and State Securities Law Filings.

 

(i) CGI has timely and properly filed all forms, reports and documents required to be filed with the SEC since formation of CGI.  At the time filed or, with respect to registration statements filed with the SEC under the Securities Act, as of the effective date thereof, all such filings (A) complied in all material respects with the applicable requirements of the Securities Act and the Exchange Act, as the case may be, and (B) did not at the time they were filed (or if amended or superseded by a filing prior to the date of this Agreement, then on the date of such filing) contain any untrue statement of a material fact or omit to state a material fact required to be stated in such filings or necessary in order to make the statements in such filings, in the light of the circumstances under which they were made, not misleading.

 

(ii) Each of the financial statements (including, in each case, any related notes) contained in CGI’s SEC filings complied as to form in all material respects with the applicable rules and regulations with respect thereto, was prepared in accordance with GAAP applied on a consistent basis throughout the periods involved (except as may be indicated in the notes to such financial statements or, in the case of unaudited statements, as permitted by Form 10-Q of the SEC) and fairly presented the financial position of CGI as of the dates and the results of its operations and cash flows for the periods indicated, except that the unaudited interim financial statements were or are subject to normal and recurring year-end adjustments which were not or are not expected to be material in amount.

 

(o) Tax Treatment.  Neither CGI nor, to the Knowledge of CGI, any of its Affiliates has taken or agreed to take action that would prevent the Merger from constituting a reorganization qualifying under the provisions of Section 368 of the Tax Code.

 

  

12

  

 

Section 7. Conditions to the Merger.  The respective obligation of each party to effect the Merger and the other transactions contemplated herein shall be subject to the fulfillment at or prior to the Closing Date of the following conditions, any or all of which may be waived, in whole or in part by the parties hereto, to the extent permitted by applicable law:

 

(a) Any governmental or third-party approvals required to effect the Merger shall have been obtained.

 

Section 8. ADISN’s Conditions to the Merger.  The obligation of ADISN to effect the Merger shall be subject to the fulfillment at or prior to the Closing Date of the following conditions, unless waived by ADISN:

 

(a) Each of the representations and warranties of CGI and Acquisition Sub contained in this Agreement shall be true and correct as of the date of this Agreement, except to the extent that any changes, circumstances, or events making such representations and warranties not true or correct would not, individually or in the aggregate, constitute an Adverse Effect;

 

(b) CGI and Acquisition Sub shall have performed or complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with by it;

 

(c) From the date of this Agreement through the Effective Time, there shall not have occurred any change, circumstance or event concerning CGI or Acquisition Sub that has had or could be reasonably likely to have an Adverse Effect; and

 

(d) CGI shall have delivered to ADISN a complete and accurate CGI Schedule and such schedule shall have been approved by ADISN.

 

  

13

  

 

Section 9. CGI’s and Acquisition Sub’s Conditions.  The obligations of CGI and Acquisition Sub to effect the Merger shall be subject to the fulfillment at or prior to the Closing Date of the following conditions, unless waived by CGI:

 

(a) Each of the representations and warranties of ADISN contained in this Agreement shall be true and correct as of the date of this Agreement, except to the extent that any changes, circumstances or events making such representations and warranties not true or correct would not, individually or in the aggregate, constitute an Adverse Effect;

 

(b) ADISN shall have performed or complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with by it on or prior to the Effective Time;

 

(c) From the date of this Agreement through the Effective Time, there shall not have occurred any change, circumstance, or event concerning ADISN that has had or could be reasonably likely to have an Adverse Effect;

 

(d) ADISN shall have delivered to CGI a complete and accurate ADISN Schedule and such schedule shall have been approved by CGI;

 

(e) ADISN shall have delivered to CGI audited balance sheet of ADISN as of December 31, 2009 and December 31, 2008, and the related statements of operations, changes in stockholders’ equity, and cash flows for the years ended  December 31, 2009 and December 31, 2008; and

 

(f) ADISN shall have delivered to CGI an Officer Certificate of authorized officer of ADISN certifying (1) the accuracy of their representations and warranties as of the date of this Agreement and as of the Closing, and (2) compliance with and performance of their obligations with at or before the Closing.

 

Section 10. Other Covenants and Agreements of the Parties.

 

(a) Press Releases.  ADISN and CGI will consult with each other before issuing, and will provide each other the opportunity to review and comment upon, any press release or other public statements with respect to the transactions contemplated by this Agreement and shall not issue any such press release or make any such public statement prior to such consultation, except as may be required by applicable law or court process.  The parties agree that the initial press release or releases to be issued with respect to the transactions contemplated by this Agreement shall be mutually agreed upon prior to the issuance thereof.  Post-Closing, ADISN will not issue any press releases without the prior written consent of CGI.

 

  

14

  

 

(b) Further Agreements, Reasonable Efforts.  Subject to the terms and conditions herein provided, each of the Parties agrees to use all reasonable efforts to take, or cause to be taken, all action, and to do, or cause to be done, all things reasonably necessary, proper or advisable under applicable laws and regulations to consummate and make effective the transactions contemplated by this Agreement, including, without limitation, (i) obtaining consents of all third parties and governmental bodies necessary, proper or advisable for the consummation of the transactions contemplated by this Agreement; and (ii) the execution of any additional instruments necessary to consummate the transactions contemplated hereby.

 

(c) Indemnification.

 

(i) Irrespective of any due diligence investigation conducted by the CGI with regard to the transactions contemplated hereby, ADISN shall indemnify and hold CGI and each of its officers and directors (the “CGI Representatives”) harmless from and against any and all liabilities, obligations, damages, losses, deficiencies, costs, penalties, interest and expenses (collectively, “Losses”) arising out of, based upon, attributable to or resulting from any and all Losses incurred or suffered by CGI or any of CGI Representatives resulting from or arising out of any breach of a representation, warranty or covenant made by Adisn as set forth herein.

 

(ii) CGI shall indemnify and hold ADISN, and each of its officers and directors and the Original Holders (the “ADISN Representatives”) harmless from and against any and all Losses arising out of, based upon, attributable to or resulting from any and all Losses incurred or suffered by ADISN or any of the ADISN Representatives resulting from or arising out of any breach of a representation, warranty or covenant made by CGI as set forth herein.

 

(iii) Andrew Moeck shall indemnify and hold ADISN and CGI  harmless from and against any and all Losses arising out of, based upon, attributable to or resulting from any and all Losses incurred or suffered by ADISN or CGI resulting from (A) that certain Lease Agreement dated January 10, 2008 by and between ADISN and 3777+ Partners L.P. (the “Lease Agreement”) and (B) any wrongful termination claims from former employees of ADISN.

 

(iv) All claims for indemnity hereunder shall be payable in shares of common stock of CGI and such shares shall be valued at the price of CGI’s common stock on the first day which such shares can be sold.  Indemnification claims payable pursuant to Section 10(c)(i) shall be paid solely from the Escrow Shares held by the Escrow Agent. Indemnification claims payable pursuant to Section 10(c)(ii) shall be paid solely by the issuance of new shares of common stock of CGI.  Indemnification claims payable pursuant to Section 10(c)(iii)(A) shall be payable solely from the Lease Escrow Shares. Indemnification claims payable pursuant to Section 10(c)(iii)(B) shall be payable solely from the Escrow Shares held by the Escrow Agent.

 

(v) No indemnification claims shall be made under Section 10(c)(i) or (ii) after the first anniversary of the Closing Date.  No indemnification claim shall be made under Section 10(c)(iii)(A) after twenty (20) days after the earlier of (i) the expiration or termination of the Lease Agreement or (ii) the date that ADISN no longer has any obligations under the Lease Agreement. No indemnification claim shall be made under Section 10(c)(iii)(B) after the first anniversary of the Closing Date.

 

  

15

  

 

(d) Notice of Indemnification. In the event any proceeding shall be threatened or instituted or any claim or demand shall be asserted in respect of which payment may be sought by ADISN or any ADISN Representative or by CGI or any CGI Representative, against the other, as the case may be (each an “Indemnitee”), under the provisions of Section 10(c) (an “Indemnity Claim”), the Indemnitee shall promptly cause written notice of the assertion of any such Claim of which it has knowledge which is covered by this indemnity to be forwarded to the ADISN Representative, who shall be Andrew Moeck, or CGI. Any notice of an Indemnity Claim by reason of any of the representations, warranties or covenants contained in this Agreement shall state specifically the representation, warranty or covenant with respect to which the Indemnity Claim is made, the facts giving rise to an alleged basis for the Claim, and the amount of the liability asserted against the Indemnitor by reason of the Indemnity Claim. Within ten (10) days of the receipt of such written notice, the ADISN Representative or CGI, as the case may be, shall notify the Indemnitee in writing of its intent to contest the indemnification obligation (a “Contest”) or to accept liability hereunder. If the ADISN Representative or CGI, as the case may be, does not respond within ten (10) days of the request of such written notice to such written notice, the ADISN Representative or CGI, as the case may be, will be deemed to accept liability. In such event, the Indemnitee will deliver a Notice to the ADISN that there is a determination of liability to Section 10(c) and 10(d). In the event of a Contest, within ten (10) days of the receipt of the written notice thereof, the parties will select arbitrators and submit the dispute to binding arbitration before the American Arbitration Association at a venue to be located in Los Angeles, California. The arbitrators shall be selected by the mutual agreement of the parties. If the parties cannot agree on the arbitrator, each may select one arbitrator and the two designated arbitrators shall select the third arbitrator. If the third arbitrator cannot be agreed upon, the American Arbitration Association in California shall select the third arbitrator. A decision by the individual arbitrator or a majority decision by the three arbitrators shall be final and binding upon the parties. Such arbitration shall follow the rules of the American Arbitration Association and must be resolved by the arbitrators within thirty (30) days after the matter is submitted to arbitration.

 

(e) Purchase Price Adjustment.  The Parties agree to treat each indemnification payment pursuant to this Agreement as an adjustment to the merger consideration for all tax purposes and shall take no position contrary thereto unless required to do so by applicable tax law pursuant to a determination as defined in Section 1313(a) of the Code.

 

Section 11. Confidentiality.  Each party shall ensure that any nonpublic information provided to it by any other party in confidence shall be treated as strictly confidential and that all such confidential information that each party or any of its respective officers, directors, employees, attorneys, agents, investment bankers, or accountants may now possess or may hereinafter create or obtain relating to the financial condition, results of operations, businesses, properties, assets, liabilities, or future prospects of the other such parties, any affiliate thereof, or any customer or supplier thereof shall not be published, disclosed, or made accessible by any of them to any other person at any time or used by any of them, in each case without the prior written consent of the other party; provided, however, that the restrictions of this Section shall not apply (a) as may otherwise be required by law, (b) as may be necessary or appropriate in connection with the enforcement of this Agreement, or (c) to the extent such information was in the public domain when received or thereafter enters the public domain other than because of disclosures by the receiving party.  Each such party shall, and shall cause all of such other persons who received confidential information, from time to time to deliver to the disclosing party all tangible evidence of such confidential information to which the restrictions of this Section apply upon written request.

 

  

16

  

 

Section 12. Miscellaneous.

 

(a) Survival.  The representations and warranties of the parties will terminate at the Effective Time and only those covenants that by their terms survive the Effective Time shall survive the Effective Time.  This Section 12 shall survive the Effective Time.

 

(b) No Third-Party Beneficiaries.  This Agreement will not confer any rights or remedies upon any person other than the parties and their respective successors and permitted assigns.

 

(c) Notices.  All notices required or permitted under this Agreement will be in writing and will be given by certified or regular mail or by any other reasonable means (including personal delivery, facsimile, or reputable express courier) to the party to receive notice at the following addresses or at such other address as any party may, by notice, direct:

 

	
  

	
To CGI or

	
CrowdGather, Inc.

	
  

	
Acquisition Sub:

	
Adisn Acquisition Corp.

20300 Ventura Blvd. Suite 330

Woodland Hills, California 91364

Fax number:  (818) 435-2473

 

	
  

	
With a copy to:

	
M2 Law Professional Corporation

	
  

	
(which will not

	
Attention:  Michael Muellerleile

	
  

	
constitute notice)

	
500 Newport Center Drive, Suite 800

Newport Beach, CA 92660

Fax number:  (949) 706-1475

	
  

	
To ADISN:

	
Adisn, Inc.

	
  

	
Attention: Andrew Moeck

3777 Long Beach Blvd., Suite 280

Long Beach, CA 90807

Fax number: (562) 684-0772

 

  

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All notices given by certified mail will be deemed as given on the delivery date shown on the return mail receipt, and all notices given in any other manner will be deemed as given when received.

 

(d) Waiver.  The rights and remedies of the parties to this Agreement are cumulative and not alternative.  Neither the failure nor any delay by any party in exercising any right, power, or privilege under this Agreement or the documents referred to in this Agreement will operate as a waiver of such right, power, or privilege, and no single or partial exercise of any right, power, or privilege will preclude any other or further exercise of such right, power, or privilege or the exercise of any other right, power, or privilege.  To the maximum extent permitted by applicable law, (a) no claim or right arising from this Agreement or the documents referred to in this Agreement can be discharged by one party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by the waiving party, (b) no waiver that may be given by a party will be applicable except in the specific instance for which it is given, and (c) no notice to or demand on one party will be deemed to be a waiver of any obligation of such party or of the right of the party giving such notice or demand to take further action without notice or demand as provided in this Agreement or the documents referred to in this Agreement.

 

(e) Further Assurances.  The parties agree (a) to furnish upon request to each other such further information, (b) to execute and deliver to each other such other documents, and (c) to do such other acts and things, all as the other party may reasonably request for the purpose of carrying out the intent of this Agreement and of the documents referred to in this Agreement.

 

(f) Successors and Assigns.  This Agreement will be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.  No party may assign either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the other party, which may be granted or withheld at the sole discretion of such other party.  Any unauthorized assignment is void.

 

(g) Severability.  Any provision of this Agreement that is invalid, illegal or unenforceable in any jurisdiction will, as to that jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability, without affecting in any way the remaining provisions hereof in such jurisdiction or rendering that or any other provision of this Agreement invalid, illegal or unenforceable in any other jurisdiction.

 

(h) Expenses.  Each party will pay all fees and expenses (including, without limitation, legal and accounting fees and expenses) incurred by such party in connection with the transactions contemplated by this Agreement.

 

(i) Governing Law.  This Agreement will be governed by and construed in accordance with the laws of the State of Nevada, without giving effect to principles of conflicts of laws.

 

(j) Counterparts; Signatures.  This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original, but all of which will be one and the same document.  Facsimiles and electronic copies in portable document format (“PDF”) containing original signatures shall be deemed for all purposes to be originally signed copies of the documents that are the subject of such facsimiles or PDF versions.

 

(k) Entire Agreement.  This Agreement, the schedules and exhibits hereto, and the agreements and instruments to be delivered by the parties on Closing represent the entire understanding and agreement between the parties and supersede all prior oral and written and all contemporaneous oral negotiations, commitments and understandings.

 

[Signature page to follow]

 

                                                                     

  

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

 

	 	CrowdGather, Inc.	 
	 	 	 	 
	
 

	
By: 

	/s/ Sanjay Sabnani	 
	 	 	Sanjay Sabnani, Chief Executive Officer	 
	 	 	 	 

	 	Adisn Acquisition Corp.      	 
	 	 	 	 
	
 

	
By: 

	/s/ Sanjay Sabnani	 
	 	 	Sanjay Sabnani, Chief Executive Officer	 
	 	 	 	 

	 	Adisn, Inc.	 
	 	 	 	 
	
 

	
By: 

	/s/ Andrew Moeck	 
	 	 	Andrew Moeck, Chief Executive Officer	 
	 	 	 	 

	 	Andrew Moeck	 
	 	 	 	 
	
 

	
By: 

	/s/ Andrew Moeck	 
	 	 	Andrew Moeck	 
	 	 	 	 

 

                                                                   

  

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Schedule 1

 

Definitions

 

“Adverse Effect” means, with respect to each party, any effect or change that would have a material adverse effect on the results of operations, financial condition, assets, properties or business of the party, taken as a whole, or on the ability of the party to consummate timely the transactions contemplated hereby.

 

“Affiliate” has the meaning set forth in Exchange Act Rule 12b-2.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

 

“Effective Time” means the time of acceptance for recording of the Certificate of Merger by the Secretary of State of the State of Delaware in accordance with the Delaware General Corporation Law (but not earlier than the Closing Date) or at such later time that the parties hereto shall have agreed upon and designated in such filing in accordance with applicable law as the effective time of the Merger.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“GAAP” means United States generally accepted accounting principles as in effect from time to time, consistently applied.

 

“Knowledge” means the actual knowledge of the executive officers of a party, without independent investigation.

 

 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“SEC” means the Securities and Exchange Commission.

20crwgform8kex102.htm

Exhibit 10.2

 

 

SECURITIES ESCROW AGREEMENT

 

This SECURITIES ESCROW AGREEMENT (“Agreement”), dated as of June 9, 2010 by and among CrowdGather, Inc., a Nevada corporation (the “Company”), the persons and entities listed on the Counterpart Signature Pages hereof (collectively, the “Adisn Stockholders”), and Esquire Consulting, Inc. (the “Escrow Agent”). Capitalized terms used but not defined herein shall have the meanings set forth in the Merger Agreement (as defined below). For the purposes of this Agreement, Andrew Moeck shall act as representative of the Adisn Stockholders (the “Adisn Representative”).

 

WITNESSETH:

 

WHEREAS, the Company has entered into an Agreement and Plan of Merger dated June 4, 2010 among the Company, Adisn, Inc., a Delaware corporation (“Adisn”) and the Company’s wholly-owned subsidiary, Adisn Acquisition Corp. (the “Merger Agreement”), pursuant to which Adisn Acquisition Corp. shall merge with and into Adisn and Adisn will survive as the wholly-owned subsidiary of the Company (“Merger”);

 

 

WHEREAS, as an inducement to the Company to enter into the Merger Agreement, the Adisn Stockholders have agreed to place stock certificates of the Company’s Common Stock representing an aggregate of two million one hundred seventy two thousand six hundred two (2,172,602) shares of Common Stock (the “Escrow Shares”) into escrow for the benefit of the Company (i) to secure the indemnification obligations in Section 10(c)(i) and (iii) of the Merger Agreement, and (ii) in the event the Company fails to achieve certain financial performance thresholds for the six and twelve month periods following the closing of the Merger; and

 

 

WHEREAS, the Company has requested that the Escrow Agent hold the Escrow Shares on the terms and conditions set forth in this Agreement and the Escrow Agent has agreed to act as escrow agent pursuant to the terms and conditions of this Agreement.

 

 

NOW, THEREFORE, in consideration of the covenants and mutual promises contained herein and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged and intending to be legally bound hereby, the parties agree as follows:

 

  

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ARTICLE I

TERMS OF THE ESCROW

 

1.1 Appointment of Escrow Agent. The parties hereby agree to appoint Esquire Consulting, Inc.  as Escrow Agent (the “Escrow Agent”), to act in accordance with the terms and conditions set forth in this Agreement, and Escrow Agent hereby accepts such appointment and agrees to act in accordance with such terms and conditions.

 

1.2 Establishment of Escrow Account. Upon the execution of this Agreement, the Adisn Stockholders shall deliver to the Escrow Agent the Escrow Shares, along with a stock power executed in blank, signature medallion guaranteed or in other form and substance acceptable for transfer. The Escrow Agent shall hold the Escrow Shares and distribute the same as contemplated by this Agreement.

 

1.3 Lease Escrow Shares. The distribution of three hundred twenty three thousand eight hundred sixty four (323,864) of the Escrow Shares (“Lease Escrow Shares”) shall be based on the indemnification obligations in Section 10(c)(iii) of the Merger Agreement.

 

(a) The Lease Escrow Shares shall be distributed to the Adisn Stockholders in seven (7) equal installments at the end of each calendar quarter beginning September 30, 2010.  The number of Lease Escrow Shares distributed on any distribution date shall be subject to reduction for any pending or satisfied indemnification claims pursuant to Section 10(c)(iii) of the Merger Agreement. The distribution of the Lease Escrow Shares to the Adisn Stockholders shall accelerate and such shares shall be distributed in full immediately following the expiration of the applicable indemnification claims period set forth in Section 10(c)(v) of the Merger Agreement.

 

(b) During the initial six months of this Agreement, the Lease Escrow Shares may be distributed to the Company to satisfy any pending indemnification claims pursuant to Section 10(c)(iii) of the Merger Agreement. Such Lease Escrow Shares shall be valued at the price of Company’s common stock on the first day which such shares can be sold. Subsequent to the initial six months of this Agreement, the Company may instruct the Escrow Agent to sell an amount of the Lease Escrow Shares sufficient to satisfy any pending indemnification claims pursuant to Section 10(c)(iii) of the Merger Agreement.

 

1.4 Performance Threshold. The distribution of one million eight hundred forty eight thousand seven hundred thirty nine (1,848,739) of the Escrow Shares (“PT Escrow Shares”) shall be based upon the following performance threshold:

 

(a) The “Performance Threshold” shall be defined as gross revenues of One Million Two Hundred Fifty Thousand ($1,250,000) generated from Adisn’s operations for the twelve month period following the Closing Date (the “PT Period”) as determined in accordance with US GAAP.

 

 (b) For the purposes of this Agreement, “Gross Revenues” shall be defined in accordance with US GAAP.

 

  

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1.5 Determination of Performance Threshold.

 

(a) The Performance Threshold shall be determined within five (5) business days following the filing by the Company of its Quarterly Report on Form 10-Q for the fiscal quarter in which end of the PT Period occured, or, if the end of the PT Period occured during the fourth quarter of a fiscal year, then within five (5) business days following the filing by the Company of its Annual Report on Form 10-K for such fiscal year, as appropriate.

 

 (b) The Company will provide the Adisn Representative with Adisn’s financial statements for the PT period, prepared in accordance with US GAAP, no later than five (5) business days following the filing by the Company of its Quarterly Report on Form 10-Q or Annual Report on Form 10-K, as the case may be, so as to allow the Adisn Representative the opportunity to evaluate whether the Performance Threshold was attained.

 

(c) No later than five (5) business days after delivery of the Adisn financial statements to the Adisn Representative, the Company and the Adisn Representative shall provide joint written instructions in accordance with the calculations above to the Escrow Agent (the “Disbursement Instructions”) instructing the Escrow Agent to issue and deliver the applicable PT Escrow Shares. Promptly after receiving the Disbursement Instructions, the Escrow Agent will issue and deliver the PT Escrow Shares in accordance with the Disbursement Instructions.

 

1.6 Distribution of the PT Escrow Shares. The parties other than the Escrow Agent hereby agree that the PT Escrow Shares shall be distributed to the appropriate parties based on the following formula:

 

(a) If Adisn fails to operate on a Break Even Cash Flow Basis (as defined below) for the six month period following the Closing Date, the PT Escrow Shares shall be returned by the Escrow Agent to the Company for cancellation as soon as practicable.

 

(b) If Adisn operates on a Break Even Cash Flow Basis for the initial six month period following the Closing Date, then PT Escrow Shares shall be distributed the appropriate parties based on the following formula:

 

(i) If Adisn does not achieve at least fifty percent (50%) of the Performance Threshold for the PT Period, the PT Escrow Shares shall be returned by the Escrow Agent to the Company for cancellation:

 

(ii) If Adisn achieves between fifty percent (50%) and seventy-five (75%) of the Performance Threshold for the PT Period, fifty percent (50%) of the PT Escrow Shares shall be returned to the Adisn Stockholders and fifty percent (50%) of the PT Escrow Shares shall be returned to the Company for cancellation: or

 

(iii) If Adisn achieves greater than seventy-five (75%) of the Performance Threshold for the PT Period, all of the PT Escrow Shares shall be returned to the Adisn Stockholders.

 

  

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(c) Upon the occurrence of any of the following events, the PT Escrow Shares shall be immediately be distributed to the Adisn Stockholders: (i) the involuntary termination of Adisn Representative as Chief Executive Officer of Adisn (“Executive”) without Cause, or the involuntary termination of Executive’s authority to maintain primary control over operating decisions of Adisn (subject to the reasonable direction of the Board of Directors), (ii) the occurrence of a Change of Control of Adisn or (iii) the occurrence of a Change of Control of the Company.

 

“Break Even Cash Flow Basis” shall mean that cash flow from the operations of Adisn (determined in accordance with US GAAP, except as provided herein) shall be greater than or equal to zero.  For purposes hereof, the cash flow determination shall include all pre-existing liabilities of Adisn and exclude the effect of the following items: (a) any overhead, administrative expenses or other costs or expenses incurred by the Company and allocated to or paid by Adisn, (b) any claim, expense or payment of Adisn that is subject to an indemnification claim pursuant to this Agreement, (c) any costs, fees or expenses in incurred in connection with the Merger, and (d) non-recurring, non-operating items related to activities outside the ordinary course of business.

 

“Cause” shall mean any of the following:  (a) gross negligence, gross misconduct, or the failure of Executive to substantially perform his duties and responsibilities to the reasonable satisfaction of the Board, in the event such conduct continues after the Board has provided 30 days written notice to Executive and a reasonable opportunity to cure; (b) any material breach by Executive of his fiduciary duties to Adisn after 30 days written notice to Executive of such breach and a reasonable opportunity to cure such breach; (c) the conviction of Executive for any felony; (d) the commission by the Executive of any act of fraud or embezzlement against Adisn; or (e) Executive’s engagement in any act that results in substantial  injury to the reputation, business or business relationships of Adisn or the Company or that, in each case, has subjected, or if generally  known would subject, Adisn or the Company to public ridicule or embarrassment.

“Change of Control” with respect to any entity shall mean (i)  a sale, lease, conveyance or other disposition of all or substantially all of the assets of  such entity, (ii) the grant by the entity of an exclusive license of all substantially all of the entity’s intellectual property, (iii) any reorganization, merger or consolidation of the entity, other than a transaction or series of related transactions in which the holders of the voting securities of such entity outstanding immediately prior to such transaction or series of related transactions retain, immediately after such transaction or series of related transactions, at least a majority of the total voting power represented by the outstanding voting securities of such entity or such other surviving or resulting entity, or (iv) any “person” or “group” (within the meaning of Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of more than 50% of the outstanding voting securities of such entity having the right to vote for the election of members of the Board of Directors  (other than in connection with the sale of voting securities with the primary purpose to fund such entity’s operations).

  

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ARTICLE II

REPRESENTATIONS OF THE ADISN STOCKHOLDERS

 

2.1 Representations and Warranties. The Adisn Stockholders hereby represent and warrant to the Company as follows:

 

(i) The Adisn Stockholders are the record and beneficial owners of the Escrow Shares placed into escrow and own the Escrow Shares, free and clear of all pledges, liens, claims and encumbrances, except encumbrances created by this Agreement and the Merger Agreement. There are no restrictions on the ability of the Adisn Stockholders to transfer the Escrow Shares, other than transfer restrictions under the Lock-Up Agreement entered into the Adisn Stockholder in connection with the Merger Agreement and/or applicable federal and state securities laws.

 

(ii) The performance of this Agreement and compliance with the provisions hereof will not violate any provision of any law applicable to the Adisn Stockholder and will not conflict with or result in any material breach of any of the terms, conditions or provisions of, or constitute a default under the terms of the certificate of incorporation or by-laws of the Adisn Stockholder, or any indenture, mortgage, deed of trust or other agreement or instrument binding upon the Adisn Stockholders or affecting the Escrow Shares or result in the creation or imposition of any lien, charge or encumbrance upon, any of the properties or assets of the Adisn Stockholder, the creation of which would have a material adverse effect on the business and operations of the Adisn Stockholders. No notice to, filing with, or authorization, registration, consent or approval of any governmental authority or other person is necessary for the execution, delivery or performance of this Agreement or the consummation of the transactions contemplated hereby by the Adisn Stockholders, other than those already obtained. Upon the transfer of the Escrow Shares to the Company pursuant to this Agreement, the Company will be the record and beneficial owners of all of such shares and have good and valid title to all of such shares, free and clear of all encumbrances.

 

ARTICLE III

ESCROW AGENT

 

3.1 The Escrow Agent's duties hereunder may be altered, amended, modified or revoked only by a writing signed by the Company, the Adisn Representative and the Escrow Agent.

 

3.2 The Escrow Agent shall be obligated only for the performance of such duties as are specifically set forth herein and may rely and shall be protected in relying or refraining from acting on any instrument reasonably believed by the Escrow Agent to be genuine and to have been signed or presented by the proper party or parties. The Escrow Agent shall not be personally liable for any act the Escrow Agent may do or omit to do hereunder as the Escrow Agent while acting in good faith and in the absence of gross negligence, fraud or willful misconduct, and any act done or omitted by the Escrow Agent pursuant to the advice of the Escrow Agent's attorneys-at-law shall be conclusive evidence of such good faith, in the absence of gross negligence, fraud or willful misconduct.

 

  

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3.3 The Escrow Agent is hereby expressly authorized to disregard any and all warnings given by any of the parties hereto or by any other person or corporation, excepting only orders or process of courts of law and is hereby expressly authorized to comply with and obey orders, judgments or decrees of any court. In case the Escrow Agent obeys or complies with any such order, judgment or decree, the Escrow Agent shall not be liable to any of the parties hereto or to any other person, firm or corporation by reason of such decree being subsequently reversed, modified, annulled, set aside, vacated or found to have been entered without jurisdiction.

 

3.4 The Escrow Agent shall not be liable in any respect on account of the identity, authorization or rights of the parties executing or delivering or purporting to execute or deliver any documents or papers deposited or called for thereunder in the absence of gross negligence, fraud or willful misconduct.

 

3.5 The Company and the Adisn Stockholders shall pay Two Thousand Dollars ($2,000) to Escrow Agent, which shall represent Escrow Agent’s fees, costs and expenses arising from Escrow Agent’s performance of its obligations, duties and responsibilities pursuant to this Agreement. The Escrow Agent shall be entitled to employ such legal counsel and other experts as the Escrow Agent may deem necessary to properly advise the Escrow Agent in connection with the Escrow Agent's duties hereunder, may rely upon the advice of such counsel, and may pay such counsel reasonable compensation therefor which shall be paid by the Escrow Agent.

 

3.6 The Escrow Agent's responsibilities as escrow agent hereunder shall terminate if the Escrow Agent shall resign by giving 45 days’ prior written notice to the Company and the Adisn Stockholders. In the event of any such resignation, the Company and the Adisn Stockholders shall appoint a successor Escrow Agent and the Escrow Agent shall deliver to such successor Escrow Agent any escrow funds and other documents held by the Escrow Agent.

 

3.7 If the Escrow Agent reasonably requires other or further instruments in connection with this Escrow Agreement or obligations in respect hereto, the necessary parties hereto shall use its best efforts to join in furnishing such instruments.

 

3.8 It is understood and agreed that should any dispute arise with respect to the delivery and/or ownership or right of possession of the documents or the Escrow Shares held by the Escrow Agent hereunder, the Escrow Agent is authorized and directed in the Escrow Agent's sole discretion (1) to retain in the Escrow Agent's possession without liability to anyone all or any part of said documents or the Escrow Shares until such disputes shall have been settled either by mutual written agreement of the parties concerned or by a final order, decree or judgment or a court of competent jurisdiction after the time for appeal has expired and no appeal has been perfected, but the Escrow Agent shall be under no duty whatsoever to institute or defend any such proceedings or (2) to deliver the Escrow Shares and any other property and documents held by the Escrow Agent hereunder to a state or Federal court having competent subject matter jurisdiction and located in the City of Los Angeles, State of California, in accordance with the applicable procedure therefor.

 

3.9 The Company agrees to indemnify and hold harmless the Escrow Agent and its partners, employees, agents and representatives from any and all claims, liabilities, costs or expenses in any way arising from or relating to the duties or performance of the Escrow Agent hereunder or the transactions contemplated hereby other than any such claim, liability, cost or expense to the extent the same shall have been determined by final, unappealable judgment of a court of competent jurisdiction to have resulted from the gross negligence, fraud or willful misconduct of the Escrow Agent.

 

  

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ARTICLE IV

ADISN REPRESENTATIVE

4.1.           Appointment.  By virtue of the adoption of this Agreement and the approval of the Merger by the Adisn Stockholders, each Adisn Stockholder hereby initially appoints, as of the date of this Agreement, Andrew Moeck (together with his permitted successors, the “Adisn Representative”), as his, her or its true and lawful agent and attorney-in-fact to enter into this Agreement and any transactions contemplated by this Agreement and the Merger Agreement, and to: (i) give and receive notices and communications to or from the Company (on behalf of himself or any other Adisn Stockholders) and/or the Escrow Agent relating to this Agreement, the Merger Agreement or any of the transactions and other matters contemplated hereby or thereby (except to the extent that this Agreement or the Merger Agreement expressly contemplates that any such notice or communication shall be given or received by such Adisn Stockholders individually); (ii) authorize deliveries to the Company of stock from the escrow account in satisfaction of claims asserted by the Company (on behalf of itself or any other CGI Representative, including by not objecting to claims thereto); (iii) object to any claims by the Company to the escrow; (iv) consent or agree to, negotiate, enter into settlements and compromises of, and agree to arbitration and comply with orders of courts and awards of arbitrators with respect to such claims; (v) assert, negotiate, enter into settlements and compromises of, and agree to arbitration and comply with orders of courts and awards of arbitrators with respect to, any other claim by any indemnified party against any such Adisn Stockholder or by any such Adisn Stockholder against the Company or any CGI Representative or any dispute between any the Company (or any CGI Representative) and any such Adisn Stockholder, in each case relating to this Agreement, the Merger Agreement or the transactions contemplated hereby or thereby; (vi) amend this Agreement, the Merger Agreement or any other agreement referred to herein or contemplated hereby; and (vii) take all actions necessary or appropriate in the judgment of the Adisn Representative for the accomplishment of the foregoing, in each case without having to seek or obtain the consent of any person under any circumstance.

4.2           Acceptance.  Andrew Moeck hereby accepts his appointment as the Adisn Representative.

4.3           Replacement.  The person serving as the Adisn Representative may be replaced from time to time by the holders of a majority in interest of the shares held in escrow pursuant to this Agreement upon not less than 10 days’ prior written notice to the Company and with the Company’s written consent, which shall not be unreasonably withheld.  No bond shall be required of the Adisn Representative, and the Adisn Representative shall receive no compensation for his services.  Notices or communications to or from the Adisn Representative shall constitute notice to or from each of the Adisn Stockholders.

4.4           No Liability.  The Adisn Representative shall not be liable to any Adisn Stockholder for any act done or omitted hereunder or under this Agreement or the Merger Agreement as the Adisn Representative while acting in good faith and any act done or omitted pursuant to the advice of counsel shall be conclusive evidence of such good faith.  The Adisn Stockholders shall jointly and severally indemnify the Adisn Representative and hold him harmless against any loss, liability or expense incurred without gross negligence or bad faith on the part of the Adisn Representative and arising out of or in connection with the acceptance or administration of his duties hereunder.  The Adisn Representative may receive reimbursement directly from the Adisn Stockholders out of distributions to them of the shares held in escrow (or proceeds from the sale of such shares sold at the direction of the Adisn Representative) for any and all expenses, charges and liabilities, including attorneys’ fees, reasonably incurred by the Adisn Representative in the performance or discharge of his rights and obligations under this agreement. Prior to the distribution of any Lease Escrow Shares or PT Escrow Shares to the Adisn Stockholders, the Adisn Representative may instruct the Escrow Agent to sell an amount of the shares sufficient to satisfy any pending reimbursement claims by the Adisn Representative.

 

  

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4.5           Notice.  Any notice or communication given or received by, and any decision, action, failure to act within a designated period of time, agreement, consent, settlement, resolution or instruction of, the Adisn Representative shall constitute a notice or communication to or by, or a decision, action, failure to act within a designated period of time, agreement, consent, settlement, resolution or instruction of all the Adisn Stockholders and shall be final, binding and conclusive upon each such Adisn Stockholder; and the Company and the Escrow Agent shall be entitled to rely upon any such notice, communication, decision, action, failure to act within a designated period of time, agreement, consent, settlement, resolution or instruction as being a notice or communication to or by, or a decision, action, failure to act within a designated period of time, agreement, consent, settlement, resolution or instruction of, each and every such Adisn Stockholder.  The Company and the Escrow Agent are hereby relieved from any liability to any person for any acts done by them in accordance with any such notice, communication, decision, action, failure to act within a designated period of time, agreement, consent or instruction of the Adisn Representative.

ARTICLE V

MISCELLANEOUS

 

5.1 Waiver. No waiver of, or any breach of any covenant or provision herein contained shall be deemed a waiver of any preceding or succeeding breach thereof, or of any other covenant or provision herein contained. No extension of time for performance of any obligation or act shall be deemed an extension of the time for performance of any other obligation or act.

 

 

5.2 Notices. All notices, demands, consents, requests, instructions and other communications to be given or delivered or permitted under or by reason of the provisions of this Agreement or in connection with the transactions contemplated hereby shall be in writing and shall be deemed to be delivered and received by the intended recipient as follows: (i) if personally delivered, on the business day of such delivery (as evidenced by the receipt of the personal delivery service), (ii) if mailed certified or registered mail return receipt requested, two (2) business days after being mailed, (iii) if delivered by overnight courier (with all charges having been prepaid), on the business day of such delivery (as evidenced by the receipt of the overnight courier service of recognized standing), or (iv) if delivered by facsimile transmission, on the business day of such delivery if sent by 6:00 p.m. in the time zone of the recipient, or if sent after that time, on the next succeeding business day (as evidenced by the printed confirmation of delivery generated by the sending party's telecopier machine). If any notice, demand, consent, request, instruction or other communication cannot be delivered because of a changed address of which no notice was given (in accordance with this Section 4.2), or the refusal to accept same, the notice, demand, consent, request, instruction or other communication shall be deemed received on the second business day the notice is sent (as evidenced by a sworn affidavit of the sender). All such notices, demands, consents, requests, instructions and other communications will be sent to the following addresses or facsimile numbers as applicable.

 

  

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If to Escrow Agent:

 

Esquire Consulting, Inc

949 Alandele Avenue

Los Angeles, CA 90036

Tel. No.: (949) 903-1903

Fax No.: (440) 848-6345

 

If to the Company:

 

CrowdGather, Inc.

20300 Ventura Blvd. Suite 330

Woodland Hills, CA 91364

Tel. No.: (818) 435-2472

Fax No.: (818) 435-2473

 

If to the Adisn Representative:

 

Andrew Moeck

3777 Long Beach Blvd., Suite 280

Long Beach, CA 90807

Tel. No.: (213) 814-3161

Fax No.: (562) 684-0772

 

 

or to such other address and to the attention of such other person as any of the above may have furnished to the other parties in writing and delivered in accordance with the provisions set forth above.

 

  

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5.3 Successors and Assigns. This Escrow Agreement shall be binding upon and shall inure to the benefit of the permitted successors and permitted assigns of the parties hereto.

 

 

5.4 Entire Agreement; Amendment. This Agreement contains the entire understanding and agreement of the parties relating to the subject matter hereof and supersedes all prior and/or contemporaneous understandings and agreements of any kind and nature (whether written or oral) among the parties with respect to such subject matter. This Escrow Agreement may not be modified, changed, supplemented, amended or terminated, nor may any obligations hereunder be waived, except by written instrument signed by the parties to be charged or by its agent duly authorized in writing or as otherwise expressly permitted herein.

 

 

5.5 Headings. The section headings contained in this Agreement are inserted for reference purposes only and shall not affect in any way the meaning, construction or interpretation of this Agreement. Any reference to the masculine, feminine, or neuter gender shall be a reference to such other gender as is appropriate. References to the singular shall include the plural and vice versa.

 

 

5.6 Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of California, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction. This Agreement shall not be interpreted or construed with any presumption against the party causing this Agreement to be drafted.

 

 

[Signatures Pages to Follow]

 

  

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the day and year first above written.

 

 

CROWDGATHER, INC.

 

 

By: _________________________________

 

Name: Sanjay Sabnani

Title: Chief Executive Officer

 

 

ESCROW AGENT:

 

ESQUIRE CONSULTING, INC.

 

 

By: _______________________________

Name:  Lan Nguyen, Esq.

Title:  President

 

  

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SIGNATURE PAGE OF ADISN STOCKHOLDERS

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the day and year first above written.

 

                           ADISN STOCKHOLDER

 

	 	 	 
	 	(Print Adisn Stockholder name) 	 
	 	 	 
	 	 	 
	 	(Signature) 	 
	 	 	 
	 	 	 
	 	(Print name of signatory, if signing for an entity) 	 
	 	 	 
	 	 	 
	 	(Print title of signatory, if signing for an entity) 	 
	 	 	 
	 	 	 
	 	Number of Shares of Common Stock 	 

 

[SIGNATURE PAGES CONTINUE]

12

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