Document:

EXHIBIT 10.13

FORBEARANCE AGREEMENT

This Forbearance Agreement (this “Agreement”) is made and entered into this 11th day of May, 2011, by and among LY Holdings, LLC, a Kentucky limited liability company (the “Borrower”) and Lightyear Network Solutions, Inc. (f/k/a Libra Alliance Corporation) (the “Lender“).

WITNESSETH:

WHEREAS, Borrower is currently indebted to Lender in the principal amount of $5,149,980.00 pursuant to the Term Note dated February 12, 2010, executed in favor of Lender in the principal amount of $5,149,980.00 (the “Note”);

WHEREAS, as of the date hereof, a total of $5,149,980.00 of principal is currently outstanding under the Note, of which $0 is past due;

WHEREAS, as of the date hereof, interest in the amount of $320,286.43 is currently accrued and outstanding under the Note, of which $291,361.89 is past due and payable, which may be deemed to constitute an event of default under the Note (“Past Due Interest”);

WHEREAS, the Borrower desires Lender to waive existing events of default and forbear from exercising his rights and remedies to collect any Past Due Interest on the terms and conditions set forth herein; and

WHEREAS, Lender is willing to presently provide a waiver and forbear from exercising its rights and remedies to collect the Past Due Interest, on the terms and subject to the conditions contained in this Agreement.

NOW, THEREFORE, in consideration of the foregoing, the mutual promises and understandings of the parties hereto set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Lender and the Borrower each hereby agree as set forth in this Agreement.

1.           Use of Defined Terms.  Except as expressly set forth in this Agreement, all terms which have an initial capital letter where not required by the rules of grammar are defined in the Note.

   

2.           Waiver.  Lender hereto waives any existing defaults under the Note.

 

3.           Forbearance.  For good and valuable consideration, Lender agrees to forbear from demanding payment of Past Due Interest under the Note or commencing any action against the Borrower with respect to the payment of Past Due Interest until June 30, 2011, or such other date agreed upon by the parties.

4.           Authority to Execute this Agreement.  The Borrower and the Lender represent and warrant that it has the right, power and capacity and is duly authorized and empowered to enter into, execute, deliver and perform this Agreement.

5.           Reservation of Rights.  Lender continues to reserve all of its rights and remedies pursuant to this Agreement and the Credit Agreements, as well as any rights and remedies at law, in equity or otherwise.  Nothing contained in this Agreement shall be or be deemed a waiver of any hereafter arising or occurring breach, default or event of default, including, nor shall preclude the subsequent exercise of any of Lender’s rights or remedies, subject to Section 3 hereof.

6.           Construction.

A. This Agreement shall be interpreted, construed and governed by and under the laws of the Commonwealth of Kentucky, without regard to its conflicts of law doctrine.

B.           Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be valid and enforceable under applicable law, but if any provision of this Agreement is held to be invalid or unenforceable by a court of competent jurisdiction, such provision shall be served herefrom and such invalidity or unenforceability shall not affect any other provision of this Agreement, the balance of which shall remain in and have its intended full force and effect; provided, however, if such provision may be reasonably modified so as to be valid and enforceable as a matter of law, such provision shall be deemed to be modified so as to be valid and enforceable to the maximum extent permitted by law.

  

 

  

C.           The Paragraph headings contained in this Agreement are solely for the purpose of reference, are not part of the agreement between the Borrower and Lender, and shall not in any way affect the meaning or interpretation of this Agreement, any Paragraph or provision thereof.

D.           This Agreement shall be binding on the Borrower and its respective successors and heirs, and shall inure to the benefit of Lender, his successors, assigns, affiliates, divisions and parent.

E.           This Agreement may not be altered, changed, amended or modified, except by written agreement signed by Lender or the Borrower.

F.           Whenever required by context, the masculine pronouns will include the feminine and neuter genders, and the singular will include the plural, and vice versa.

G.           This Agreement constitutes the entire agreement between the Borrower and Lender with regard to the subject matter hereof.

IN WITNESS WHEREOF, the Borrower and Lender have executed this Agreement as of the date first set forth above.

	Lender:	  
	  	  	  
	LIGHTYEAR NETWORK SOLUTIONS, INC.	  
	  	  	  
	
By:

	
/s/ Elaine G. Bush

	  
	 	 	 
	  	
Elaine G. Bush, CFO

	  
	  	  	  
	Borrower:	  
	  	  	  
	LY HOLDINGS, LLC	  
	  	  	  
	
By:

	
/s/ J. Sherman Henderson

	  
	  	  	  
	  	
J. Sherman Henderson, Manager/MemberSECOND AMENDMENT TO NOTE

This Second Addendum (the “Addendum”) to the Promissory Note (the “Note”), dated as of March 2, 2009, in the original principal amount of up to $750,000 made by Saker Aviation Services, Inc. (f/k/a FirstFlight, Inc.), a Nevada corporation (the “Company”) to EuroAmerican Investment Corp., a New York corporation (the “Holder”), is entered into as of this 5th day of May, 2011.

WHEREAS, the Maturity Date (as defined in the Note) of the Note is February 27, 2011;

WHEREAS, the First Amendment extended the Maturity Date to March 1, 2012; and

WHEREAS, the Holder and the Company have agreed to extend the Maturity Date to May 1, 2012;

NOW THEREFORE, for $100 and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1.           The Note shall be deemed amended such that the “Maturity Date” shall mean May 1, 2012.

2.           Except as otherwise specifically provided for herein, the terms of the Note shall be unmodified and shall remain in full force and effect.

[SIGNATURES TO THIS ADDENDUM APPEAR ON

THE FOLLOWING PAGE]

 

  

  

  

 

IN WITNESS WHEREOF, the undersigned have executed this Addendum as of the day first above written.

	  	
EUROAMERICAN INVESTMENT CORP.

	  	  	  
	  	
By:

	
  /s/ William B. Wachtel

	  	
Name:  William B. Wachtel

	  	
Title:    President

	  	  	  
	  	
SAKER AVIATION SERVICES, INC.

	  	  	  
	  	
By:

	
  /s/ Ronald J. Ricciardi

	  	
Name:  Ronald J. Ricciardi

	  	
Title:    President and CEO

The undersigned guarantors of the Note hereby consent to the extension set forth herein.

	  	
  /s/  William B. Wachtel

	  
	  	
William B. Wachtel

	  
	  	  	  
	  	
  /s/  Alvin S. Trenk

	  
	  	
Alvin S. TrenkSTOCK PURCHASE AGREEMENT

THIS STOCK PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of May __, 2011, by and among LINO LUCIANI, an individual (the “Purchaser”), THE BLACKHAWK FUND, a Nevada corporation (the “Company”), and TERMINUS, INC., a Nevada corporation (the “Seller”).  Capitalized terms used in this Agreement without definition shall have the meanings set forth or referenced in Article VIII.

WITNESSETH:

WHEREAS, the Seller is the beneficial and record owner of 10,000,000 shares of Series C Preferred Stock, par value $0.001 per share (collectively, the “Shares”);

WHEREAS, the Purchaser desires to purchase from the Seller, and the Seller desire to sell to the Purchaser, all of the Shares, upon the terms and subject to the conditions set forth in this Agreement;

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I

PURCHASE AND SALE OF SHARES

1.1           Agreement to Purchase and Sell.  Upon the terms and subject to the conditions set forth herein, the Seller agrees to sell to the Purchaser, and the Purchaser agrees to purchase from the Seller, at the Closing, all of the Shares owned by the Seller, free and clear of all Liens.

1.2           Purchase Price.   The aggregate purchase price (the “Purchase Price”) for the Shares shall be THREE HUNDRED THOUSAND DOLLARS ($300,000).

1.3           Payment of the Purchase Price.  The Purchase Price shall be paid by a certified or back check made payable to the Seller, or by wire transfer pursuant to instructions provided by the Seller, at the Closing.

 

ARTICLE II

REPRESENTATIONS AND WARRANTEES

2.1           Representations and Warranties concerning the Company.  The Seller and the Company, jointly and severally, hereby represent and warrant to the Purchaser as follows:

  

 

  

(a)           Authority.  The Company has all necessary power and authority to enter into and deliver this Agreement and each of the other agreements, certificates, instruments and documents contemplated hereby (collectively, the “Ancillary Documents”) to which it is a party, to carry out its obligations hereunder and under any Ancillary Document and to consummate the transactions contemplated hereby and by the Ancillary Documents.  All actions, authorizations and consents required by Law for the execution, delivery and performance by the Company of this Agreement and each Ancillary Document to which it is a party, and the consummation of the transactions contemplated hereby and thereby, have been properly taken or obtained, including without limitation, the approval of this Agreement and the transactions contemplated by it by the Board of Directors of the Company.

(b)           Execution and Delivery.  This Agreement has been, and each Ancillary Document to which the Company is a party will be at the Closing, duly authorized, executed, and delivered by the Company and constitutes a legal, valid, and binding obligation of the Company, enforceable against the Company in accordance with their respective terms and conditions, except as enforceability thereof may be limited by applicable bankruptcy, reorganization, insolvency or other similar laws affecting or relating to creditors’ rights generally or by general principles of equity.

(c)           No Conflicts.  The execution, delivery and performance by the Company of this Agreement and each Ancillary Document to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not violate, conflict with or result in a breach of any term, condition or provision of, or require the consent of any Person under, or result in the creation of or right to create any Lien upon any of the assets of the Company under, (i) any Laws to which the Company or any of its assets are subject, (ii) any permit, judgment, order, writ, injunction, decree or award of any Governmental Authority to which the Company or any of its assets are subject, (iii) the certificate or articles of incorporation or bylaws of the Company, or (iv) any license, indenture, promissory note, bond, credit or loan agreement, lease, agreement, commitment or other instrument or document to which the Company is a party or by which the Company or any of its assets are bound.

(d)           Governmental Consents.   No consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Authority, is required to be obtained by the Company in connection with or as a result of the execution and delivery of this Agreement or any of the Ancillary Documents, or the performance of its obligations hereunder and thereunder.

(e)           Organization, Standing and Qualification.  The Company is a corporation duly organized, validly existing, and in good standing under the Laws of the jurisdiction of its organization.  The Company has all requisite power and authority to own, lease, and operate its properties and to carry on its business as now being conducted, to use its name and is duly qualified, licensed, or authorized to do business and in good standing, in each jurisdiction where the nature of the activities conducted by it or the character of the properties owned, leased or operated by it require such qualification, licensing or authorization.  Each such jurisdiction is identified on Schedule 2.1(e).  The Company’s corporate minute books reflect all resolutions approved and other actions taken by its shareholders or Board of Directors and any committees thereof since the date of its incorporation.  The Seller or the Company have previously delivered to the Purchaser true, correct, and complete copies of the Certificates of Incorporation and Bylaws of the Company, each as currently in effect (collectively, the “Organization Documents”).

  

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(f)           Capitalization.  The authorized capital stock of the Company consists solely of 4,000,000,000 shares of common stock, par value $0.001 per share (the “Common Stock”), of which 1,000,293,791 shares are issued and outstanding, 150,000,000 shares of Class B common stock, par value $0.001 per share (the “Class B Common Stock”), of which 30,000,000 shares are issued and outstanding, and 50,000,000 shares of preferred stock, $0.001 par value, of which 500,000 shares are issued and outstanding as Series A Preferred Stock, 10,000,000 shares are issued and outstanding as Series B Preferred Stock, and 10,000,000 shares are issued and outstanding as Series C Preferred Stock.  Attached as Schedule 2.1(f) are true and correct copies of the shareholder list as prepared by Computershare, the Company’s transfer agent.  All of the issued and outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid, non-assessable, and were issued in compliance with all federal and state securities laws.  No shares of Common Stock are held in treasury.  Except as disclosed in Schedule 2.1(f), there are no outstanding subscriptions, options, warrants, calls, contracts, demands, commitments, convertible or exchangeable securities, profits interests, conversion rights, preemptive rights, rights of first refusal or other rights, agreements, arrangements or commitments of any nature whatsoever under which the Company is or may become obligated to issue, redeem, assign or transfer any shares of capital stock or purchase or make payment in respect of any shares of capital stock of the Company now or previously outstanding, and there are no outstanding or authorized stock appreciation, phantom stock or similar rights with respect to or any shares of its capital stock.  There are no stockholders agreements, voting agreements, or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

(g)           Reporting Company.  The Company is a publicly-held company subject to reporting obligations pursuant to Section 13 of the Exchange Act, and its Common Stock is registered pursuant to Section 12(g) of the Exchange Act.

(h)           SEC Documents; Financial Statements.  The Company has filed all SEC Documents required to be filed by it under the Securities Laws, including pursuant to Section 13(a) or 15(d) of the Exchange Act, and for the twelve months preceding the date hereof, such SEC Documents have filed on a timely basis or the Company has received a valid extension of such time of filing and has filed any such SEC Documents prior to the expiration of any such extension.   Except as may have been corrected or supplemented in a subsequent SEC Document, as of their respective dates, the SEC Documents complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder, and none of the SEC Documents, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.  Except as may have been corrected or supplemented in a subsequent SEC Document, the financial statements of the Company included in the SEC Documents (the “Financial Statements”) comply in all material respects with applicable accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing.  Except as may have been corrected or supplemented in a subsequent SEC Document, the Financial Statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such Financial Statements or the notes thereto, or, in the case of unaudited financial statements, as permitted by Item 310(b) of Regulation S-B promulgated under the Securities Act and the Exchange Act, and fairly present in all material respects the financial position of the Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal,  year-end audit adjustments and the lack of footnotes.  The Company has not received any letters of comment from the Staff of the SEC which have not been satisfactorily resolved as of the date hereof.

  

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(i)           Material Changes.  Since the date of the latest balance sheet included within the SEC Documents, except as specifically disclosed in Schedule 2.1(i), (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any Liabilities (contingent or otherwise) out of the ordinary course of business that are of a nature material to the Company, (iii) the Company has not materially altered its method of accounting or the identity of its auditors, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (v) the Company has not issued any equity securities.  The Company does not have pending before the SEC any request for confidential treatment of information.

(j)           Internal Control Over Financial Reporting.  The Company and its subsidiaries maintain a system of internal control over financial reporting sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.  The Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls and procedures to ensure that material information relating to the Company, including its subsidiaries, is made known to the certifying officers by others within those entities, particularly during the period in which the Company’s most recently filed periodic report under the Exchange Act, as the case may be, is being prepared.  The Company’s certifying officers have evaluated the effectiveness of the Company’s controls and procedures as of the date prior to the filing date of the most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”).  The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date.  Since the Evaluation Date, there have been no significant changes in the Company’s internal controls (as such term is defined in Item 307(b) of Regulation S-K under the Exchange Act) or, to the knowledge of the Company, in other factors that could significantly affect the Company’s internal controls.  The Company has no “off-balance sheet arrangements” (as defined in Item 303(a)(4) of Regulation S-K promulgated by the SEC).

  

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(k)           Sarbanes-Oxley Act.  The Company is in compliance with applicable requirements of the Sarbanes-Oxley Act of 2002 and applicable rules and regulations promulgated by the SEC thereunder in effect as of the date of this Agreement, except where such noncompliance could not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.

(l)           Absence of Undisclosed Liabilities.  Except to the extent adequately reflected on or reserved against in the Financial Statements and except for recurring Liabilities incurred in the ordinary course of business consistent with recent past practice, as of December 31, 2010 (the “Balance Sheet Date”), the Company had no direct or indirect Liabilities for any period prior to such date or arising out of transactions entered into or any set of facts existing prior thereto.

(m)         Ordinary Course.  Since the Balance Sheet Date, except as otherwise disclosed on Schedule 2.1(m), the Company has operated its business in the ordinary course consistent with past practice and there has not occurred:

(i)           any change in the condition (financial or otherwise), properties, assets, liabilities, business, prospects, operations or results of operations that has had or could reasonably be expected to have a Material Adverse Effect on the Company;

(ii)          any amendments or changes in any of its Organization Documents;

(iii)         any issuance or sale of any shares of or interests in, or rights of any kind to acquire any shares of or interests in, or receipt of any payment based on the value of, its capital stock or any securities convertible or exchangeable into shares of its capital stock (including, without limitation, any stock options, phantom stock or stock appreciation rights) or any adjustment, split, combination or reclassification of its capital stock, or any declaration or payment of any dividend or any distribution on, or any redemption, purchase, retirement or other acquisition, directly or indirectly, of any shares of its capital stock or any securities or obligations convertible into or exchangeable for any shares of its capital stock;

(iv)        any investment of a capital nature on its own account;

(v)         any entering into, amendment of, modification in, relinquishment, termination or non-renewal by the Company of any contract, lease, transaction, commitment or other right or obligation, except for purchase and sale commitments entered into in the ordinary course of business consistent with recent past practice;

(vi)        any waiver, forfeiture, or failure to assert any rights of a material value or made, whether directly or indirectly, any payment of any material Liability before the same came due in accordance with its terms;

(vii)        any material damage, destruction or loss of the Company’s assets or properties, whether covered by insurance or not;

  

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(viii)       any payment of (or any making of oral or written commitments or representations to pay) any bonus, increased salary or special remuneration to any director, officer, employee or consultant or any entry into or alterations of the terms of any employment, consulting or severance agreement with any such person; any payment of any severance or termination pay (other than payments made in accordance with existing plans or agreements); any grant of stock option or issuance of any restricted stock; any entry into or modification of any agreement or Employee Benefit Plan (except as required by law) or any similar agreement;

(ix)         any modification of any term of benefits payable under any Employee Benefit Plan;

(x)          (A) any creation, incurrence or assumption of any Liability for borrowed money except those Liabilities incurred in the ordinary course of business consistent with recent past practice, (B) issuance or sale of any securities convertible into or exchangeable for debt securities of the Company; or (C) issuance or sale of options or other rights to acquire from the Company, directly or indirectly, debt securities of the Company or any securities convertible into or exchangeable for any such debt securities;

(xi)         any material change in the amounts or scope of coverage of insurance policies;

(xii)        any merger or consolidation with any other Person, acquisition of any capital stock or other securities of any other Person, or acquisition of all or a significant portion of the assets of any other Person, or acquisition of any assets or properties from any Seller or its affiliate or family member;

(xiii)       any assumption or guarantee of any Liability or responsibility (whether primarily, secondarily, contingently or otherwise) for the obligations of any other Person;

(xiv)       any loan, advance (including, without limitation, any loan or advance to any stockholder, officer, director or employee of such Company) or capital contribution to, or investment in, any Person;

(xv)        any sale, transfer or lease to others of, any grant, creation or assumption of Liens against, or otherwise disposed of, any of its material assets, whether tangible or intangible;

(xvi)       any lapse, failure to take any actions to protect, or any adverse change in respect of any of its Proprietary Rights;

(xvii)     any consummation of any other transaction that is not in the Company’s ordinary course of business consistent with recent past practice;

  

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(xviii)     any collection of the Company’s accounts receivable, or any payment of the Company’s accounts payable, in each case that is not in the Company’s ordinary course of business consistent with recent past practice; or

(xix)        any agreement or commitment, in writing or otherwise, to take any of the actions described in the foregoing subclauses (i) through (xviii).

 

(n)           Litigation.  There is no claim, legal action, suit, arbitration, investigation or other proceeding pending, or to the Knowledge of the Company, threatened against or relating to the Company or its assets.  Neither the Company nor any of its assets are subject to any outstanding judgment, order, writ, injunction or decree of any Governmental Authority.  There is currently no investigation or review by any Governmental Authority with respect to the Company pending or, to the Knowledge of the Company or the Seller, threatened, nor has any Governmental Authority notified the Company of its intention to conduct the same.

(o)           Compliance with Laws.  The Company has all licenses, permits, and other authorizations from all applicable Governmental Authorities necessary or desirable for the conduct of its business as currently conducted or as currently expected to be conducted following the Closing Date.  Schedule 2.1(v) hereto sets forth a true and complete list of all such licenses, permits and other authorizations obtained by the Company, each of which is in full force and effect and no violations thereunder have been recorded. The Company is in compliance, and has complied, with all Laws applicable to it and has not received any notice of any violation thereof.

(p)           Related Party Transactions.  Except as disclosed on Schedule 2.1(p), since January 1, 2009, no Related Party has been directly or indirectly a party to any contract or other arrangement (whether written or oral) with the Company providing for services (other than as an employee of the Company), products, goods or supplies, rental of real or personal property, or otherwise requiring payments from or to the Company.  There are no notes, loans, moneys and/or debts, of any kind, due any Related Party that shall not be discharged on or prior to the Closing of the transactions contemplated by this Agreement.  For purposes hereof, the term “Related Party” shall mean any Seller or a director or officer of the Company or any member of his or her family or any corporation, partnership, limited liability company, other business entity or trust in which he or she or any member of his or her family has greater than a ten percent (10%) interest, or of which he or she or any member of his or her family is an officer, director, general partner, member or trustee.

(q)           Restrictions on Business Activities.  There is no agreement, judgment, injunction, order, or decree binding upon the Company or any Seller or, to the Knowledge of the Company, any employee of the Company, that has or could reasonably be expected to have the effect of prohibiting or materially impairing any business practice of the Company or the conduct of business by the Company as currently conducted or as currently expected to be conducted by the Company following the Closing.

(r)           Books and Records. All accounts, books, ledgers and official and other records prepared and kept by the Company are true, complete, and accurate in all material respects and have been kept in accordance with sound business practices.

  

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(s)           Investment Company.  The Company is not, and is not an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

(t)           DTC Status.   The Company’s transfer agent is a participant in and the Common Stock is eligible for transfer pursuant to the Depository Trust Company Automated Securities Transfer Program.  The name, address, telephone number, fax number, contact person and email address of the Company transfer agent is set forth on Schedule 2.1(mm) hereto.

(u)           SEC Matters.  To the Knowledge of the Company and the Seller, except as set forth on Schedule 2.1(u) hereto, no current or past officer or director of the Company has ever been sanctioned, disciplined, fined, and/or imprisoned for any violations of any securities laws of the United States or any other jurisdiction.

(v)           No Dissolution or Bankruptcy.  Neither the board of directors, the officers, nor the stockholders of the Company has taken action to propose, recommend, or approve the dissolution of the Company.  No articles of dissolution have been delivered to the Secretary of State for the State of Nevada.  No court has entered into any decree of dissolution with respect to the Company.  There are no pending or, to the Knowledge of the Company and the Seller, threatened actions or proceedings before any court seeking dissolution of the Company.  No administrative dissolution proceedings or other dissolution proceedings of any kind have been commenced with respect to the Company.  The Company has not received notice from the Secretary of the State of Nevada that one or more grounds exist for dissolving the Company.  No voluntary or involuntary bankruptcy or insolvency proceedings have been commenced under federal, state, or other law with respect to the Company.

(w)           Registered Agent.  The Company has a registered office and a registered agent in the State of Nevada, and presently there has been no discontinuance of such registered office of the Company, no resignation of such registered agent of the Company, and no change in such registered office or such registered agent of the Company as designated in the Articles of Incorporation of the Company or its most current annual report.

(x)           Disclosure.  No representation or warranty made by the Company in this Agreement, nor any information contained in any Ancillary Document to be delivered by the Company or the Seller pursuant hereto, or any information relating to the Company provided or made available to the Purchaser in connection with the transactions contemplated hereby, contains any untrue statement of a material fact, or omits or will omit to state a material fact necessary to make the statements or facts contained herein or therein not misleading in any material respect in light of the circumstances under which they were made.

 

  

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2.2           Representations and Warranties of the Seller.  The Seller hereby represents and warrants to the Purchaser as follows:

 

(a)           Authority.  The Seller has all necessary power or legal capacity and authority to enter into and deliver this Agreement and each of the Ancillary Documents to which the Seller is a party, to carry out the Seller’s obligations hereunder and under such Ancillary Document and to consummate the transactions contemplated hereby and by such Ancillary Documents.  All actions, authorizations, and consents required by Law for the execution, delivery, and performance by the Seller of this Agreement and each Ancillary Document to which the Seller is a party, and the consummation of the transactions contemplated hereby and thereby, have been properly taken or obtained.

(b)           Execution and Delivery.  This Agreement has been, and each Ancillary Document to which it is a party will be at the Closing, duly authorized, executed, and delivered by the Seller and constitutes, or will constitute at the Closing, a legal, valid and binding obligation of the Seller, enforceable against the Seller in accordance with their respective terms and conditions, except as enforceability thereof may be limited by applicable bankruptcy, reorganization, insolvency, or other similar laws affecting or relating to creditors’ rights generally or by general principles of equity.

(c)           No Conflicts.  The execution, delivery and performance by the Seller of this Agreement and each Ancillary Document to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not violate, conflict with or result in a breach of any term, condition or provision of, or require the consent of any Person under, or result in the creation of or right to create any Lien upon any of the assets of the Seller under, (i) any Laws to which the Seller or any of its assets are subject, (ii) any permit, judgment, order, writ, injunction, decree, or award of any Governmental Authority to which the Seller or any of its assets are subject, (iii) the certificate of formation or incorporation or the operating agreement or bylaws of the Seller (or their equivalent), or (iv) any license, indenture, promissory note, bond, credit or loan agreement, lease, agreement, commitment or other instrument or document to which the Seller is a party or by which the Seller or any of its assets are bound.

(d)           Governmental Consents.   No consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Authority, is required to be obtained by the Seller in connection with or as a result of the execution and delivery of this Agreement or any of the Ancillary Documents, or the performance of the Seller’s obligations hereunder or thereunder.

(e)           Organization, Standing, and Qualification.  The Seller is a corporation duly organized, validly existing, and in good standing under the Laws of the jurisdiction of its organization.  The Seller has all requisite power and authority to own, lease, and operate its properties and to carry on its business as now being conducted.

(f)           Ownership.  The Seller owns, beneficially and of record, free and clear of any Liens, such number, class, and series of Shares as set forth on Schedule 2.2(f).  At the Closing, upon delivery of and payment for such Shares as provided in this Agreement, all of the Shares owned by the Seller shall be transferred to the Purchaser, and the Purchaser shall have good and valid title to the Shares, free and clear of any Liens.  There are no outstanding subscriptions, options, warrants, calls, contracts, demands, commitments, convertible or exchangeable securities, profits interests, conversion rights, preemptive rights, rights of first refusal or other rights, agreements, arrangements or commitments of any nature whatsoever under which the Seller is or may become obligated to sell, assign, or transfer any shares of capital stock of the Company owned by the Seller.

  

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2.3           Representations and Warranties of the Purchaser. The Purchaser hereby represents and warrants to the Sellers as follows:

(a)           Authority.  The Purchaser has all necessary power and authority to enter into and deliver this Agreement and each of the Ancillary Documents to which it is a party, to carry out its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and by the Ancillary Documents.  All actions, authorizations, and consents required by Law for the execution, delivery, and performance by the Purchaser of this Agreement and each Ancillary Document to which it is a party, and the consummation of the transactions contemplated hereby and thereby, have been, or prior to the Closing will have been, properly taken or obtained.

(b)           Execution and Delivery.  This Agreement has been, and each Ancillary Document to which the Purchaser is a party will be at the Closing, duly authorized, executed and delivered by the Purchaser and constitutes a legal, valid, and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms and conditions, except as enforceability thereof may be limited by applicable bankruptcy, reorganization, insolvency or other similar laws affecting or relating to creditors’ rights generally or by general principles of equity.

(c)           No Conflicts.  The execution, delivery, and performance by the Purchaser of this Agreement and each Ancillary Document to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not violate, conflict with or result in a breach of any term, condition or provision of, or require the consent of any Person under, or result in the creation of or right to create any Lien upon any of the assets of the Purchaser under, (i) any Laws to which the Purchaser or any of its assets are subject, (ii) any judgment, order, writ, injunction, decree or award of any Governmental Authority to which the Purchaser or any of its assets are subject, or (iii) any license, indenture, promissory note, bond, credit or loan agreement, lease, agreement, commitment or other instrument or document to which the Purchaser is a party or by which any of its assets are bound, except where, in the case of clause (iii), such violation, conflict, breach, etc. would not, individually or in the aggregate, have a Material Adverse Effect on the Purchaser.

(d)           Governmental Consents.   No consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Authority, is required to be obtained by the Purchaser in connection with or as a result of the execution and delivery of this Agreement or any of the Ancillary Documents, or the performance of its obligations thereunder.

  

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ARTICLE III

CERTAIN COVENANTS

3.1           Reasonable Efforts; Assurances.  Upon the terms and subject to the conditions of this Agreement, each of the parties hereto shall use all reasonable efforts to take or cause to be taken all action, and to do or cause to be done, and to assist and cooperate with the other parties in doing, all things necessary, proper or advisable to consummate and make effective as promptly as practicable the transactions contemplated by this Agreement, including using commercially reasonable efforts to (a) obtain all consents or approvals required or desirable in connection with the transactions contemplated hereby, (b) effect promptly all necessary or appropriate registrations or filings with any Governmental Authorities, and (c) fulfill or cause the fulfillment of the conditions to Closing set forth in Article IV.  In case at any time after the Closing Date any further action is reasonably necessary or desirable to carry out the purposes of this Agreement, each of the parties hereto shall take such further action without additional consideration.

3.2           Access and Information.  From time to time for a period of three (3) years after the Closing, the Purchaser shall afford, and shall cause the Company to afford, upon reasonable prior notice and during normal business hours of the Company, to the Seller and its accountants, counsel, and other representatives access to the books, records, and personnel of the Company with respect to matters relating to the operations of the Company prior to the Closing Date to the extent that they have a legitimate business purpose for the same (e.g., for Tax purposes or for purposes of defending claims) and provided that such access does not unreasonably interfere with the operations of the Company.

3.3           Public Announcements.  No party will issue or make or cause the publication of, any press release or other public announcement with respect to this Agreement or the transactions contemplated hereby without the prior written consent of the other parties hereto; provided, however, that nothing herein will prohibit any party from issuing, making, or causing the publication of any such press release or public announcement to the extent that such party is advised by its legal counsel that such action is required by Law, in which case the party making such determination will use reasonable efforts to allow the other parties reasonable time to review and comment on such release or announcement in advance.  For the purposes of this Section, the Company shall be entitled to give such prior written consent on behalf of the Seller.

3.4           Further Assurances; Cooperation.  Each party hereto will, before, at, and after the Closing, execute and deliver such instruments and take such other actions as the other party or parties, as the case may be, may reasonably require in order to carry out the intent of this Agreement.  Without limiting the generality of the foregoing, at any time after the Closing, at the request of the Company or the Purchaser, and without further consideration, the Seller (a) will execute and deliver such instruments of sale, transfer, conveyance, assignment and confirmation and take such action as the Company or the Purchaser may reasonably deem necessary or desirable in order to more effectively transfer, convey and assign to the Purchaser, and to confirm the Purchaser’s title to, the Shares, and (b) will execute such documents, take such action, and provide such assistance (and shall cause its agents and representatives to provide such assistance) as the Company or the Purchaser may reasonably deem necessary or desirable in order to prepare and file any future SEC Documents that the Company seeks to file with the SEC under the Securities Act or the Exchange Act.

  

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ARTICLE IV

CONDITIONS TO CLOSING

4.1           Conditions to Obligation of the Seller.  The obligation of the Seller to consummate the transactions contemplated hereby shall be subject to the satisfaction on or prior to the Closing of the following conditions (any of which may be waived on behalf of the Seller in writing by the Company):

(a)           the Purchaser shall have performed and complied with all obligations and agreements required to be performed and complied with by it hereunder on or prior to the Closing;

(b)           the representations and warranties of the Purchaser contained in this Agreement shall be true and correct as of the Closing Date as if made as of such date (other than those representations and warranties that address matters only as of a particular date or only with respect to a specific period of time, which need only be true and correct as of such date or with respect to such period);

(c)           there shall be no order, decree, or ruling by any Governmental Authority nor any action, suit, claim or proceeding by or before any Governmental Authority shall be pending, which seeks to restrain, prevent or materially delay or restructure the transactions contemplated hereby or by any Ancillary Document, or which otherwise questions the validity or legality of any such transactions;

(d)           there shall be no statute, rules, regulation, or order enacted, entered, or enforced or deemed applicable to the transactions contemplated hereby which would prohibit or, render illegal the transactions contemplated by this Agreement or the Ancillary Documents;

(e)           each of the documents to be delivered by the Purchaser pursuant to Section 5.3 shall have been so delivered by the Purchaser at the Closing.

4.2           Conditions to Obligation of the Purchaser.  The obligation of the Purchaser to consummate the transactions contemplated hereby shall be subject to the satisfaction on or prior to the Closing of the following conditions (any of which may be waived in writing by the Purchaser):

(a)           the Seller and the Company shall have performed or complied with all obligations and agreements required to be performed or complied with by any of them hereunder on or prior to the Closing (including, without limitation, those specified in Section 5.2);

  

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(b)           the representations and warranties of the Seller and the Company contained in this Agreement shall be true and correct as of the Closing Date as if made as of such date (other than those representations and warranties that address matters only as of a particular date or only with respect to a specific period of time, which need only be true and correct as of such date or with respect to such period);

(c)           there shall be no order, decree, or ruling by any Governmental Authority nor any action, suit, claim, or proceeding by or before any Governmental Authority shall be pending, which seeks to restrain, prevent, or materially delay or restructure the transactions contemplated hereby or any Ancillary Document, or which otherwise questions the validity or legality of any such transactions;

(d)           there shall be no statute, rules, regulation, or order enacted, entered, or enforced or deemed applicable to the transactions contemplated hereby which would prohibit or render illegal the transactions contemplated by this Agreement or the Ancillary Documents;

(e)           the Company and the Seller shall have obtained on terms and conditions satisfactory to the Purchaser all consents and approvals of third parties (including Governmental Authorities) that are required (i) for the consummation of the transactions contemplated hereby or any Ancillary Document, or (ii) in order to prevent a breach of, a default under or a termination, material change in the terms or conditions or material modification of, any Material Agreement as a result of the consummation of the transactions contemplated hereby;

(f)           the Company and the Seller shall have delivered evidence satisfactory to the Purchaser that all Liabilities of the Company have been satisfied, compromised, or otherwise extinguished as of the Closing; and

(g)           each of the documents to be delivered by Sellers or the Company pursuant to Section 5.2 shall have been so delivered by Sellers or the Company at the Closing.

ARTICLE V

CLOSING

5.1           Closing.  The closing of the transactions contemplated hereby (the “Closing”) shall take place at the offices of Indeglia & Carney, 1900 Main Street, Suite 300, Irvine, California 92614, as soon as practicable but in no event later than 10:00 a.m., Pacific time, on the third (3rd) Business Day after the date on which each of the conditions set forth in Sections 4.1 and 4.2 have been satisfied or waived by the party or parties entitled to the benefit of such conditions, or at such other place, at such other time or on such other date as the parties may mutually agree.  The date on which the closing actually occurs is referred to herein as the “Closing Date”.

5.2           Deliveries by the Seller and the Company.  Subject to the terms and conditions hereof, the Seller and the Company shall deliver the following to the Purchaser at or before the Closing:

  

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(a)           certificates, duly endorsed for transfer or accompanied by a duly executed blank stock power, in either case with medallion signature guarantees, and with evidence of payment of any applicable stamp or transfer taxes, representing all of the Shares;

(b)           certified resolutions of the Seller’s board of directors authorizing the transactions contemplated by this Agreement and the endorsement and negotiation of the certificates representing all of the Shares;

(c)           the corporate minute book of the Company, including the articles of incorporation, as amended, the bylaws, as amended, all minutes of the stockholders, board of directors, and committees thereof, and the corporate seal;

(d)           all stock ledgers for all series of preferred stock of the Company;

(e)           a certified list of common stockholders from the Company’s transfer agent, dated as of the date of Closing;

(f)           all accounting books and records for the Company commencing January 1, 2008 through the present;

(g)           all SEC EDGAR codes for the Company;

(h)           resolutions of the board of directors appointing Lino Luciani as a director of the Company, effective as of the Closing;

(i)           resignations of all officers and directors of the Company, effective as of the Closing;

(j)           a letter of instruction to the Company’s transfer agent signed by Frank Marshik on behalf of the Company advising the transfer agent of the change of officers and directors contemplated by this Agreement;

(k)           a letter to the Company’s current certifying accountants signed by Frank Marshik on behalf of the Company advising the certifying accountants of the change of officers and directors contemplated by this Agreement;

(l)           evidence that the Company and/or the Seller have obtained on terms and conditions reasonably satisfactory to the Purchaser all consents and approvals of third parties (including Governmental Authorities) that are required (i) for the consummation of the transactions contemplated hereby or (ii) in order to prevent a material breach of, a default under or a termination, material change in the terms or conditions or material modification of, any Material Agreement as a result of the consummation of the transaction contemplated hereby; and

  

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(m)           certificates of the Company and the Seller, in form and substance reasonably satisfactory to the Purchaser, dated the Closing Date, certifying compliance with the conditions set forth in Sections 4.2(a) and 4.2(b).

5.3          Actions or Deliveries by the Purchaser.  Subject to the terms and conditions hereof, the Purchaser shall deliver the following to the Seller at or before the Closing:

(a)           the Purchase Price in accordance with Section 1.3; and

(b)           a certificate of the Purchaser, in form and substance reasonably satisfactory to the Seller, dated the Closing Date and signed by the President of the Purchaser evidencing compliance with the conditions set forth in Sections 4.1(a) and 4.1(b).

5.4           Other Documents.  The parties agree to execute and deliver on or before the Closing all other documents that are reasonably necessary or desirable in order to consummate the transactions contemplated hereby and to carry out the intent of this Agreement.

5.5           Expenses.  Except as otherwise specifically provided herein, the Seller and the Company, on one hand, and the Purchaser, on the other hand, shall pay their own expenses, including, but not limited to, attorneys’, accountants’, financial advisors’ and brokers’ or finders’ fees, incurred in connection with the transactions contemplated hereby (“Expenses”).  It is the express intention of the parties that the Seller shall personally be responsible for all Expenses incurred by the Company, its Affiliates, or their respective agents in connection with the transactions contemplated hereby.

ARTICLE VI

TERMINATION

6.1          Termination.  This Agreement may be terminated at any time prior to the Closing:

(a)           by mutual consent of the Purchaser and the Seller;

(b)           by either the Purchaser or the Seller if the Closing shall not have been consummated on or before May 31, 2011 (provided that the terminating party is not otherwise in material breach of its obligations under this Agreement), which date may be extended by written agreement of the Purchaser and the Seller; or

(c)           by either the Purchaser or the Seller, if a permanent injunction or other order by any Federal or state court which would make illegal or otherwise restrain or prohibit the consummation of the transactions contemplated hereby shall have been issued and shall have become final and non-appealable.

6.2          Effect of Termination.  In the event of the termination of this Agreement in accordance with this Article VI, this Agreement shall thereafter become void and there shall be no liability on the part of any party hereto or their respective directors, officers, stockholders or agents, except that any such termination shall be without prejudice to the rights of any party hereto arising out of any breach by any other party of this Agreement.

  

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ARTICLE VII

INDEMNIFICATION

7.1           Survival; Indemnity.  The representations, warranties, covenants, and agreements of the parties contained in this Agreement, and the indemnification rights set forth in this Article VII, shall survive the Closing.  Notwithstanding the foregoing, the representations and warranties of the parties shall only so survive until the first anniversary of the Closing Date; provided, however, that the representations and warranties contained in Section 2.1(a), (b), (e) (but only with respect to due organization) or (f) shall survive in perpetuity (the period from the Closing Date to such applicable date is hereinafter referred to as the “Survival Period”).  Nothing contained in the foregoing sentence shall prevent recovery under this Article after the expiration of the Survival Period so long as the party making a claim or seeking recovery complies with the provisions of clause (x) and (y) of the following sentence. No party shall have any claim or right of recovery for any breach of a representation, warranty, covenant, or agreement unless (x) written notice is given in good faith by that party to the other party of the representation, warranty, covenant, or agreement pursuant to which the claim is made or right of recovery is sought setting forth in reasonable detail the basis for the purported breach of the representation, warranty, covenant, or agreement, the amount or nature of the claim being made, if then ascertainable, and the general basis therefor and (y) such notice is given prior to the expiration of the Survival Period.

7.2           General Indemnification by the Seller and the Company.  The  Seller and the Company, jointly and severally, agree to indemnify the Purchaser and its officers, directors, shareholders, employees, Affiliates, attorneys, accountants and agents (the “Purchaser Parties”), and hold them harmless from and against any and all damages, losses, liabilities, costs, and expenses (including, without limitation, reasonable expenses of investigation and reasonable attorneys’ fees and expenses in connection with any action, suit or proceeding) (collectively, “Purchaser Damages”) incurred or suffered by the Purchaser Parties as a result of any breach or inaccuracy of any representation, warranty, covenant, or agreement of the Seller or the Company contained in this Agreement, or any certificate delivered by the Seller or the Company pursuant to this Agreement.

 

7.3           Indemnification by Purchaser.  The Purchaser agrees to indemnify the Seller from and after the Closing and to hold the Seller and its officers, directors, stockholders, employees, Affiliates, attorneys, accountants and agents (the “Seller Parties”) harmless from and against any and all damages, losses, liabilities, costs, and expenses (including, without limitation, reasonable expenses of investigation and reasonable attorneys ‘ fees and expenses in connection with any action, suit or proceeding) (collectively, “Seller Damages”) incurred or suffered by the Seller Parties arising out of any breach of any representation, warranty, covenant or agreement of the Purchaser.

  

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7.4           Indemnification Procedures

(a)           Notification of Claims.  Upon any party (the “Indemnified Party”) becoming aware of a fact, condition, or event that constitutes a basis for a claim for Purchaser Damages or Seller Damages, as the case may be, in respect thereof against the other party (the “Indemnifying Party”) under Section 7.2 or 7.3, if such a claim is to be made, the Indemnified Party will with reasonable promptness and specificity notify the Indemnifying Party or Parties in writing of such fact, condition or event.  The failure to notify the Indemnifying Party or Parties under this Section 7.4 shall not relieve any Indemnifying Party of any liability that it may have to the Indemnified Party except to the extent that such failure to notify shall have resulted in a waiver of any lawful and valid affirmative defense to any third-party claim or otherwise materially prejudices the Indemnifying Party or Parties in connection with the administration or defense of such third-party claim.

(b)           Third-Party Claims.

(i)           Upon receipt by the Indemnifying Party or Parties of any notice of claim for indemnification hereunder arising from a third-party claim, the Indemnifying Party or Parties shall assume the administration and defense of such third-party claim with counsel that is reasonably satisfactory to the Indemnified Party and shall proceed with the administration and defense of such third-party claim diligently and in good faith; provided, however, that any Indemnifying Party shall be entitled to assume the administration and defense of such third-party claim only if it agrees in writing with the Indemnified Party that it is obligated to indemnify the Indemnified Party pursuant to this Article with respect to such third-party claim; and provided, further that no Indemnifying Party shall be entitled to assume the administration and defense of any third-party claim that (A) seeks an injunction or other equitable relief that might materially and adversely affect any Indemnified Party, or (B) involves any criminal action or any claim that could reasonably be expected to result in a criminal action against any Indemnified Party.  Each parties’ counsel in connection with this transaction shall be deemed to be reasonably satisfactory to the other party for purposes of this Section 7.4(b)(i).  The Indemnified Party shall be fully consulted by the Indemnifying Party or Parties and shall have the right to participate, at its own expense, in the investigation, administration and defense of such third-party claim.  Any party hereto receiving notice of any proposed settlement of any such third-party claim shall promptly provide a copy of such notice to the other parties hereto.  The Indemnifying Party or Parties shall not have the right to settle or compromise any third-party claim for which indemnification is being sought hereunder without the consent of the Indemnified Party unless as a result of such settlement or compromise the Indemnified Party is fully discharged and released from any and all liability with respect to such third-party claim. The Indemnified Party shall make available to the Indemnifying Party or Parties and its counsel all books, records, documents and other information relating to any third-party claim for which indemnification is sought hereunder, and the parties to this Agreement shall render to each other reasonable assistance in the defense of any such third-party claim.

  

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(ii)           Notwithstanding any other provision of this Agreement, if the Indemnified Party is not entitled to defend a third-party claim under Section 7.4(b)(i), the Indemnified Party shall have the absolute right, at its election (to be exercised in its sole discretion by written notice to the Indemnifying Party or Parties) to assume from the Indemnifying Party or Parties the administration and defense of any such third-party claim against the Indemnified Party with counsel that is reasonably satisfactory to the Indemnifying Party.  In such event, the Indemnified Party shall proceed with the administration and defense of such third-party claim(s) diligently and in good faith, and the Indemnifying Party shall be fully consulted by the Indemnified Party or Parties and shall have the right to participate, at its own expense, in the investigation, administration and defense of such third-party claim.  The Indemnifying Party or Parties shall be responsible for the costs and expenses of the administration and defense of such claim(s) incurred prior to the Indemnified Party or Parties’ assumption of the administration and defense of such claim(s) and shall not be responsible for costs and expenses incurred after such assumption, and the Indemnifying Party shall have the right to participate in, but not control, the defense of such claim(s) at the sole cost and expense of the Indemnifying Party.

ARTICLE VIII

DEFINITIONS

8.1           Certain Definitions.  For purposes of this Agreement, the following terms and phrases shall have the following meanings:

“Affiliate” shall have the meaning ascribed to it in Rule 405 promulgated under the Securities Act.

“Business Day” shall mean any Monday, Tuesday, Wednesday, Thursday or Friday that is not a day on which banking institutions in the State of New York are authorized by law, regulation or executive order to close.

“Code” shall mean the Internal Revenue Code of 1986, as amended.

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

“GAAP” shall mean generally accepted accounting principles as in effect in the United States.

“Governmental Authority” shall mean any court, administrative agency or commission or other governmental authority or instrumentality, domestic or foreign.

“Knowledge of the Company” shall mean the actual knowledge of Frank Marshik, upon due inquiry.

“Laws” shall mean all applicable statutes, rules, regulations, ordinances, orders, writs, injunctions, judgements, decrees, awards or restrictions of any governmental entity.

“Liabilities” shall mean any liability or obligation, including without limitation, any direct or indirect indebtedness, guaranty, endorsement, claim, loss, damage, deficiency, cost, expense, obligation or responsibility, whether known or unknown, fixed or unfixed, choate or inchoate, liquidated or unliquidated, secured or unsecured.

 

  

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“Liens” shall mean any security interest, mortgage, lien, charge, claims, option and encumbrance.

“Material Adverse Effect” used in connection with a party shall mean any event, change or effect that is or is reasonably likely to become materially adverse to the condition (financial or otherwise), properties, assets, liabilities, businesses, operations, results of operations or prospects of such party and its subsidiaries, if any, on a consolidated basis.

“Person” shall mean any individual, firm, corporation, partnership, trust, incorporated or unincorporated association, joint venture, joint stock company, governmental entity of any kind.

“SEC” shall mean the United States Securities and Exchange Commission.

“SEC Documents” shall mean all reports and registration statements filed, or required to be filed, by the Company pursuant to the Securities Laws.

“Securities Act” shall mean the Securities Act of 1933, as amended.

“Securities Laws” shall mean the Securities Act; the Exchange Act; the Investment Company Act of 1940, as amended; the Investment Advisers Act of 1940, as amended; the Trust Indenture Act of 1939, as amended; and the rules and regulations of the SEC promulgated thereunder.

“Subsidiary” shall mean, as to any Person, any corporation, partnership, limited liability company or other entity which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors, the general managers or other persons performing similar functions, are at the time directly or indirectly owned by such Person; unless otherwise specified, “Subsidiary” means a Subsidiary of the Company.

“Taxes” shall mean taxes, fees, levies, duties, tariffs, imposts, and governmental impositions or charges of any kind in the nature of (or similar to) taxes, payable to any federal, state, local or foreign taxing authority, including (without limitation) (i) income, franchise, profits, gross receipts, ad valorem, net worth, value added, sales, use, service, real or personal property, special assessments, capital stock, license, payroll, withholding, employment, social security, workers’ compensation, unemployment compensation, utility, severance, production, excise, stamp, occupation, premiums, windfall profits, transfer and gains taxes, and (ii) interest, penalties, additional taxes and additions to tax imposed with respect thereto.

  

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8.2           Other Defined Terms.  Each of the following terms have the meaning assigned to it in the Section indicated:

	
Term

	  	
Section

	
Agreement

	  	
First Paragraph

	
Ancillary Documents

	  	
2.1

	
Balance Sheet Date

	  	
2.1

	
Closing

	  	
5.1

	
Closing Date

	  	
5.1

	
Company

	  	
First Paragraph

	
Evaluation Date

	  	
2.1

	
Expenses

	  	
5.5

	
Financial Statements

	  	
2.1

	
Indemnified Party

	  	
7.4

	
Indemnified Plans

	  	
7.2

	
Indemnifying Party

	  	
7.4

	
Material Agreements

	  	
2.1

	
Organizational Documents

	  	
2.1

	
Purchase Price

	  	
1.2

	
Purchaser

	  	
First Paragraph

	
Purchaser Damages

	  	
7.2

	
Purchaser Parties

	  	
7.2

	
Related Party

	  	
2.1

	
Seller

	  	
First Paragraph

	
Seller Damages

	  	
7.3

	
Seller Parties

	  	
7.3

	
Shares

	  	
Recitals

	
Survival Period

	  	
7.1

ARTICLE IX

MISCELLANEOUS

9.1           Notices.  All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered personally (including delivery by courier service), transmitted by telecopy or mailed by registered or certified mail, postage prepaid, return receipt requested, or sent by a nationally recognized overnight courier service, as follows:

(a)           If to the Purchaser, to:

Lino Luciani

c/o Lanham & Lanham, LLC

28562 Oso Parkway, Unit D

Rancho Santa Margarita, CA 92688

(b)           If to the Company or the Seller, to:

The Blackhawk Fund/Terminus, Inc.

1802 N. Carson Street, Suite 212-3018

Carson City, NV 89701

  

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or to such other address as the Person to whom notice is to be given may have previously furnished to the other parties in writing in accordance herewith.  Notice shall be deemed given on the date received (or, if receipt thereof is refused, on the date of such refusal).

9.2           Amendments and Waivers.  This Agreement may not be amended, modified, or supplemented except by written agreement of the parties hereto.  No waiver by any party of any non-compliance, default, misrepresentation or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent non-compliance, default, misrepresentation or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

9.3           Interpretation.  The headings preceding the text of Articles and Sections included in this Agreement and the headings to Exhibits and Schedules attached to this Agreement are for convenience only and shall not be deemed part of this Agreement or be given any effect in interpreting this Agreement.  The use of the masculine, feminine or neuter gender herein shall not limit any provision of this Agreement.  The use of the terms “including” or “include” shall in all cases herein mean “including, without limitation” or “include, without limitation,” respectively.  References to any “Article,” “Section,” “Exhibit,” or “Schedule” shall refer to an Article or Section of, or an Exhibit or Schedule to, this Agreement.  In any case where the concept of materiality is applied more than once to qualify any provision of this Agreement (whether by cross-referencing or incorporation or otherwise), such provision shall be interpreted as if only one, but the broadest one, of such materiality qualification applied to it.  Any due diligence review, audit, or other investigation or inquiry undertaken or performed by or on behalf of a party shall not limit, qualify, modify or amend the representations, warranties, or covenants of, or indemnities made by any other party pursuant to this Agreement, irrespective of the knowledge and information received (or which should have been received) therefrom by the investigating party and consummation of the transactions contemplated herein by a party shall not be deemed a waiver of a breach of or inaccuracy in any representation, warranty, or covenant or of any other party’s rights and remedies with regard thereto.

9.4           Assignment; Binding Upon Successors and Assigns.  None of the parties hereto may assign or delegate any of its rights or obligations hereunder without the prior written consent of the other parties hereto.  This Agreement will be binding upon and inure to the benefit of the parties hereto and their respective successors, heirs, legatees, distributes, and assigns.

9.5           Parties in Interest.  This Agreement shall be binding upon and inure solely to the benefit of the parties hereto and their respective successors, permitted assigns and legal representatives, and nothing in this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of any nature.

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

  

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9.7           Governing Law; Venue; Jurisdiction.  The laws of the State of California (irrespective of its choice of law principles) will govern the validity of this Agreement, the construction of its terms and the interpretation and enforcement of the rights and duties of the parties hereto.  This Agreement shall be enforceable in any court of competent jurisdiction.  In furtherance of and not in limitation of the foregoing, the parties hereto (i) agree and consent to the personal jurisdiction and venue of the state and Federal courts sitting in Orange County, California in any action or proceeding arising out of or connected in any way with this Agreement, (ii) irrevocably waive, to the fullest extent permitted by law, any claim that any such proceeding brought in such a court has been brought in an inconvenient forum, and (iii) agree that service of process in any such action or proceeding will be sufficient if sent by certified mail, return receipt requested, to applicable address set forth above, and that such service shall constitute “personal service,” and further agree to the invocation of said jurisdiction by service of process in any other manner authorized by law.

9.8           Severability.  If any term or provision of this Agreement shall, to any extent, be held by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement or the application of such term or provision to Persons or circumstances other than those as to which it has been held invalid or unenforceable, shall not be affected thereby and this Agreement shall be deemed severable and shall be enforced otherwise to the full extent permitted by law.

9.9           Entire Agreement.  This Agreement (including the Schedules and Exhibits referred to herein and which form a part hereof) and the Ancillary Documents constitute the entire agreement among the parties hereto and supersedes all prior agreements and understandings, oral and written, among the parties hereto with respect to the subject matter hereof except for a confidentiality agreement by and among the parties hereto, if any.

9.10         Schedules and Exhibits.  The Schedules and Exhibits attached hereto are incorporated herein and made a part hereof for all purposes.

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IN WITNESS WHEREOF, this Stock Purchase Agreement has been duly executed and delivered by the parties hereto on the date first above written.

	  	
PURCHASER:

	  	  
	  	
LINO LUCIANI

	  	  
	  	  
	  	  
	  	
COMPANY:

	  	  
	  	
THE BLACKHAWK FUND

	  	  	  
	  	
By:

	  
	  	  	
Name: Frank Marshik

	  	  	
Title: President

	  	  	  
	  	
SELLER:

	  	  
	  	
TERMINUS, INC.

	  	  	  
	  	
By:

	  
	  	  	
Name: Frank Marshik

	  	  	
Title: President

  

23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}]]