Document:

Unassociated Document

FORM  OF ADVISORY AGREEMENT

 

BY AND AMONG

 

AMERICAN REALTY CAPITAL GLOBAL DAILY NET ASSET VALUE TRUST, INC.,

 

AMERICAN REALTY CAPITAL GLOBAL OPERATING PARTNERSHIP, L.P.,

 

AND

 

AMERICAN REALTY CAPITAL GLOBAL ADVISORS, LLC

 

Dated as of                , 2011

  

  

  

 

  ADVISORY AGREEMENT

 

THIS ADVISORY AGREEMENT (this “ Agreement ”) dated as of August 3, 2011, is entered into among American Realty Capital Global Daily Net Asset Value Trust, Inc., a Maryland corporation (the “ Company ”), American Realty Capital Global Operating Partnership, L.P., a Delaware limited partnership (the “ Operating Partnership ”), and American Realty Capital Advisors II, LLC, a Delaware limited liability company.

 

WITNESSETH

 

WHEREAS, the Company is a Maryland corporation created in accordance with Maryland General Corporation Law and intends to qualify as a REIT;

WHEREAS, the Company is the general partner of the Operating Partnership;

WHEREAS, the Company and the Operating Partnership desire to avail themselves of the experience, sources of information, advice, assistance and certain facilities of the Advisor and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject to the supervision of the Board of Directors of the Company, all as provided herein; and

WHEREAS, the Advisor is willing to render such services, subject to the supervision of the Board of Directors of the Company, on the terms and subject to the conditions hereinafter set forth;

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1.            DEFINITIONS.   As used in this Agreement, the following terms have the definitions set forth below:

 

“ Acquisition Expenses” means any and all expenses, exclusive of Acquisition Fees, incurred by the Company, the Operating Partnership, the Advisor or any of their Affiliates in connection with the selection, evaluation, acquisition, origination, making or development of any Investments, whether or not acquired, including, without limitation, legal fees and expenses, travel and communications expenses, brokerage fees, costs of appraisals, nonrefundable option payments on property not acquired, accounting fees and expenses, title insurance premiums and the costs of performing due diligence.

 

“ Acquisition Fee ” means the fees payable to the Advisor or its assignees pursuant to Section 10(a) .

 

“ Advisor ” means American Realty Capital Global Advisors, LLC, a Delaware limited liability company, any successor advisor to the Company and the Operating Partnership, or any Person to which American Realty Capital Global Advisors, LLC or any successor advisor subcontracts substantially all its functions.  Notwithstanding the foregoing, a Person hired or retained by American Realty Capital Global Advisors, LLC to perform property management and related services for the Company or the Operating Partnership that is not hired or retained to perform substantially all the functions of American Realty Capital Global Advisors, LLC with respect to the Company and the Operating Partnership as a whole shall not be deemed to be an Advisor. 

“ Affiliate ” or “ Affiliated ” means with respect to any Person, (i) any other Person directly or indirectly owning, controlling or holding, with the power to vote, ten percent (10%) or more of the outstanding voting securities of such Person; (ii) any other Person ten percent (10%) or more of whose outstanding voting securities are directly or indirectly owned, controlled or held, with the power to vote, by such Person; (iii) any other Person directly or indirectly controlling, controlled by or under common control with such Person; (iv) any executive officer, director, trustee or general partner of such Person; and (v) any legal entity for which such Person acts as an executive officer, director, trustee or general partner.  For purposes of this definition, the terms “controls,” “is controlled by,” or “is under common control with” shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity, whether through ownership or voting rights, by contract or otherwise.

 

“ Annual Subordinated Performance Fee ” means the fees payable to the Advisor or its assignees pursuant to Section 10(e) .

“ Articles of Incorporation ” means the Articles of Incorporation of the Company, as amended from time to time.

 

“ Asset Management Fee ” means the fees payable to the Advisor pursuant to Section 10(d) . 

  

  

  

“ Average Invested Assets ” means, for a specified period, the average of the aggregate book value of the assets of the Company invested, directly or indirectly, in Investments before deducting depreciation, bad debts or other non-cash reserves, computed by taking the average of such values at the end of each month during such period.  For an equity interest owned in a Joint Venture, the calculation of Average Invested Assets shall take into consideration the underlying Joint Venture’s aggregate book value for the equity interest.

 

“ Board of Directors ” or “Board” means the Board of Directors of the Company.

“ Business Day ” means any day on which the New York Stock Exchange is open for trading.

 

“ By-laws ” means the by-laws of the Company, as amended and as the same are in effect from time to time.

 

“ Cause” means (i) fraud, criminal conduct, willful misconduct or illegal or negligent breach of fiduciary duty by the Advisor, or (ii) if any of the following events occur:  (A) the Advisor shall breach any material provision of this Agreement, and after written notice of such breach, shall not cure such default within thirty (30) days or have begun action within thirty (30) days to cure the default which shall be completed with reasonable diligence; (B) the Advisor shall be adjudged bankrupt or insolvent by a court of competent jurisdiction, or an order shall be made by a court of competent jurisdiction for the appointment of a receiver, liquidator, or trustee of the Advisor, for all or substantially all its property by reason of the foregoing, or if a court of competent jurisdiction approves any petition filed against the Advisor for reorganization, and such adjudication or order shall remain in force or unstayed for a period of thirty (30) days; or (C) the Advisor shall institute proceedings for voluntary bankruptcy or shall file a petition seeking reorganization under the federal bankruptcy laws, or for relief under any law for relief of debtors, or shall consent to the appointment of a receiver for itself or for all or substantially all its property, or shall make a general assignment for the benefit of its creditors, or shall admit in writing its inability to pay its debts, generally, as they become due.

“ Change of Control ” means a change of control of the Company of a nature that would be required to be reported in response to the disclosure requirements of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”), as enacted and in force on the date hereof, whether or not the Company is then subject to such reporting requirements; provided, however , that, without limitation, a Change of Control shall be deemed to have occurred if:  (i) any “person” (within the meaning of Section 13(d) of the Exchange Act, as enacted and in force on the date hereof) is or becomes the “beneficial owner” (as that term is defined in Rule 13d-3, as enacted and in force on the date hereof, under the Exchange Act) of securities of the Company representing 9.8% or more of the combined voting power of the Company’s securities then outstanding; (ii) there occurs a merger, consolidation or other reorganization of the Company which is not approved by the Board of Directors; (iii) there occurs a sale, exchange, transfer or other disposition of substantially all the assets of the Company to another Person, which disposition is not approved by the Board of Directors; or (iv) there occurs a contested proxy solicitation of the Stockholders that results in the contesting party electing candidates to a majority of the Board of Directors’ positions next up for election.

 

“ Code ” means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto.  Reference to any provision of the Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time.

 

“ Competitive Real Estate Commission ” means a real estate or brokerage commission for the purchase or sale of an asset which is reasonable, customary and competitive in light of the size, type and location of the asset.

 

“ Contract Purchase Price ” has the meaning set forth in the Articles of Incorporation.

“ Contract Sales Price ” means the total consideration received by the Company for the sale of an Investment.

 

“ Dealer Manager ” means Realty Capital Securities, LLC, or such other Person selected by the Board of Directors to act as the dealer manager for the Offering.

 

“ Dealer Manager Fee ” means three percent (3.0%) of Gross Proceeds from the sale of Retail Shares in a Primary Offering, payable to the Dealer Manager for serving as the dealer manager of such Primary Offering.

“ Director ” means a member of the Board of Directors.

 

“ Distributions ” means any distributions of money or other property by the Company to Stockholders, including distributions that may constitute a return of capital for U.S. federal income tax purposes.

 

“ Excess Amount ” has the meaning set forth in Section 13 .

 

“ Expense Year ” has the meaning set forth in Section 13 .

“Financing Coordination Fee” has the meaning set forth in Section 10(g).

 

“ GAAP ” means United States generally accepted accounting principles, consistently applied.

  

  

  

  

“ Good Reason ” means:  (i) any failure to obtain a satisfactory agreement from any successor to the Company or the Operating Partnership to assume and agree to perform obligations under this Agreement; or (ii) any material breach of this Agreement of any nature whatsoever by the Company or the Operating Partnership.

 

“ Gross Proceeds ” means the aggregate purchase price of all Shares sold for the account of the Company through an Offering, without deduction for Selling Commissions, volume discounts, any marketing support and due diligence expense reimbursement or Organization and Offering Expenses.  For the purpose of computing Gross Proceeds from the sale of Retail Shares, the purchase price of any Retail Share for which reduced Selling Commissions are paid to the Dealer Manager or a Soliciting Dealer (where net proceeds to the Company are not reduced) shall be deemed to be the full amount of the offering price per Retail Share pursuant to the Prospectus for such Offering without reduction.

 

“ Included Assets ” has the meaning set forth in Section 19(b)(ii) .

 

“ Indemnitee ” has the meaning set forth in Section 21 .

 

“ Independent Director ” has the meaning set forth in the Articles of Incorporation.

“ Independent Valuation Advisor ” means a firm that is (i) engaged in the business of conducting appraisals on real estate properties, (ii) not an affiliate of the Advisor and (iii) engaged by the Company with the Board’s approval to apprise the Real Properties and other Investments pursuant to the Valuation Guidelines.

“ Institutional Shares ” means shares of the Company’s common stock, par value $0.01 per share that have been designated institutional shares.

 

“ Investments ” means any investments by the Company or the Operating Partnership, directly or indirectly, in Real Estate Assets, Real Estate Related Loans or any other asset.

 

“ Joint Ventures ” means any joint venture, limited liability company or other entity through which the Company directly or indirectly owns, in whole or in part, any Investments.

 

“ Listing ” means (i) the listing of the Shares on a national securities exchange, or (ii) the receipt by the Stockholders of securities that are listed on a national securities exchange in exchange for Shares in a merger or any other type of transaction.

 

“ Loans ” means any indebtedness or obligations in respect of borrowed money or evidenced by bonds, notes, debentures, deeds of trust, letters of credit or similar instruments, including mortgages and mezzanine loans.

 

“ Management Agreement” means the Property Management and Leasing Agreement, dated as of [                                   ], 2011, among the Company, the Operating Partnership and American Realty Capital Global Properties, LLC, as the same may be amended from time to time.

  

“ NASAA REIT Guidelines ” means the Statement of Policy Regarding Real Estate Investment Trusts published by the North American Securities Administrators Association on May 7, 2007, as the same may be amended from time to time.

 

“ NAV ” means the Company’s net asset value, calculated pursuant to the Valuation Guidelines.

 

“ Net Income ” means, for any period, the Company’s total revenues applicable to such period, less the total expenses applicable to such period other than additions to reserves for depreciation, bad debts or other similar non-cash reserves and excluding any gain from the sale of the Company’s assets. 

  

“ Notice ” has the meaning set forth in Section 23 .

 

“ Offering ” means the public offering of Shares pursuant to a Prospectus.

 

“ Operating Partnership Agreement ” means the Agreement of Limited Partnership of the Operating Partnership, among the Company, the Operating Partnership and American Realty Capital  Trust Global Special Limited Partnership, LLC, as the same may be amended from time to time.

“ OP Units ” means units of limited partnership interest in the Operating Partnership.

 

  

  

  

“ Organization and Offering Expenses ” means all expenses (other than the Selling Commission, the Platform Fee and the Dealer Manager Fee) to be paid by the Company in connection with an Offering, including legal, accounting, printing, mailing and filing fees, charges of the escrow holder and transfer agent, charges of the Advisor for administrative services related to the issuance of Shares in an Offering, reimbursement of the Advisor for costs in connection with preparing supplemental sales materials, the cost of bona fide training and education meetings held by the Company (primarily the travel, meal and lodging costs of the registered representatives of broker-dealers), attendance and sponsorship fees and cost reimbursement for employees of the Company’s Affiliates to attend retail seminars conducted by broker-dealers and, in special cases, reimbursement to soliciting broker-dealers for technology costs associated with an Offering, costs and expenses related to such technology costs, and costs and expenses associated with facilitation of the marketing of the Shares and the ownership of Shares by such broker-dealer’s customers.

 

“ Other Liquidity Event ” means a liquidation or the sale of all or substantially all the Investments (regardless of the form in which such sale shall occur).  For clarification purposes, a transaction of the type described in clause (ii) of the definition of Listing shall not be an Other Liquidity Event.

“Oversight Fee” has the meaning set forth in Section 10(f).

 

“ Person ” means an individual, corporation, partnership, joint venture, association, company (whether of limited liability or otherwise), trust, bank or other entity, or any government or any agency or political subdivision of a government.

“ Platform Fee ” means an asset-based platform fee payable to the Dealer Manager monthly in arrears for sales of Institutional Shares in a Primary Offering.  The Platform Fee shall accrue daily and equals (a) the number of Shares outstanding each day, excluding shares issued under the Company’s distribution reinvestment plan, multiplied by (b) 1/365th of NAV per Share on such day.

  

“ Primary Offering ” means the portion of an Offering other than the Shares offered pursuant to the Company’s distribution reinvestment plan.

 

“Property Manager” means American Realty Capital Global Properties, LLC or another entity that has been retained to perform and carry out at one or more of the Properties property-management services, excluding Persons retained or hired to perform facility management or other services or tasks at a particular Property, the costs for which are passed through to and ultimately paid by the tenant at such Property.

 “Prospectus ” means a final prospectus of the Company filed pursuant to Rule 424(b) of the Securities Act, as the same may be amended or supplemented from time to time. 

“ Real Estate Assets ” means any investment by the Company or the Operating Partnership in unimproved and improved Real Property (including fee or leasehold interests, options and leases), directly, through one or more subsidiaries or through a Joint Venture.

“ Real Estate Commission ” means the fees payable to the Advisor pursuant to Section 10(c) .

 

“ Real Estate Related Loans ” means any investments in mortgage loans and other types of real estate related debt financing, including, mezzanine loans, bridge loans, convertible mortgages, wraparound mortgage loans, construction mortgage loans, loans on leasehold interests and participations in such loans, by the Company or the Operating Partnership, directly, through one or more subsidiaries or through a Joint Venture.

 

“ Real Property ” means real property owned from time to time by the Company or the Operating Partnership, directly, through one or more subsidiaries or through a Joint Venture, which consists of (i) land only, (ii) land, including the buildings located thereon, (iii) buildings only, or (iv) such investments the Board or the Advisor designate as Real Property to the extent such investments could be classified as Real Property.

 

“ REIT ” means a “real estate investment trust” under Sections 856 through 860 of the Code.

 

“ Retail Shares ” means shares of the Company’s common stock, par value $0.01 per share that have been designated retail shares.

“ Sale ” or “ Sales ” means any transaction or series of transactions whereby:  (i) the Company or the Operating Partnership directly or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes its direct or indirect ownership of any Real Estate Assets, Loan or other Investment or portion thereof, including the lease of any Real Estate Assets consisting of a building only, and including any event with respect to any Real Estate Assets that gives rise to a significant amount of insurance proceeds or condemnation awards; (ii) the Company or the Operating Partnership directly or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes its ownership of all or substantially all the direct or indirect interest of the Company or the Operating Partnership in any Joint Venture in which it is a co-venturer, member or partner; (iii) any Joint Venture directly or indirectly (except as described in other subsections of this definition) in which the Company or the Operating Partnership as a co-venturer, member or partner sells, grants, transfers, conveys, or relinquishes its direct or indirect ownership of any Real Estate Assets or portion thereof, including any event with respect to any Real Estate Assets which gives rise to insurance claims or condemnation awards; or (iv) the Company or the Operating Partnership directly or indirectly (except as described in other subsections of this definition) sells, grants, conveys or relinquishes its direct or indirect interest in any Real Estate Related Loans or portion thereof (including with respect to any Real Estate Related Loan, all payments thereunder or in satisfaction thereof other than regularly scheduled interest payments) and any event which gives rise to a significant amount of insurance proceeds or similar awards; or (v) the Company or the Operating Partnership directly or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes its direct or indirect ownership of any other asset not previously described in this definition or any portion thereof, but not including any transaction or series of transactions specified in clauses (i) through (v) above in which the proceeds of such transaction or series of transactions are reinvested by the Company in one or more assets within 180 days thereafter.

  

  

  

 

 “ Securities Act ” means the Securities Act of 1933, as amended. 

“ Selling Commission ” means seven percent (7.0%) of Gross Proceeds from the sale of Retail Shares in a Primary Offering payable to the Dealer Manager and reallowable to Soliciting Dealers with respect to Retail Shares sold by them.

“Service Provider” means, with respect to the Company’s investments in Europe, a European entity or entities selected by the Advisor pursuant to a service agreement, in which the entity shall perform certain duties of the Advisor as set forth in this Agreement, including acquisition and management responsibilities, seeking and procuring financing for the Company’s properties, selecting and negotiating investments, including property purchases and leasebacks, and providing asset management services.  The Advisor shall assign a percentage of the fees payable under this Agreement to such entities.  Notwithstanding delegation of responsibilities to a Service Provider, the Advisor shall retain ultimate responsibility for the performance of all the matters entrusted to it pursuant to this Agreement.  Subject to the terms of this Agreement and solely with respect to the Company’s foreign investment strategy outside of Europe, the Advisor may also delegate certain of its advisory duties to one or more additional Service Providers.  Any such relationship shall be governed pursuant to a service agreement on substantially similar terms as the service agreement with any European Service Provider.

“ Shares ” means the Institutional Shares and Retail Shares.

 

“ Soliciting Dealers ” means broker-dealers who are members of the Financial Industry Regulatory Authority Inc., or that are exempt from broker-dealer registration, and who, in either case, have executed soliciting dealer or other agreements with the Dealer Manager to sell Shares.

 

“ Sponsor ” means American Realty Capital II, LLC, a Delaware limited liability company.

 

“ Stockholders ” means the registered holders of the Shares.

“ Termination Date ” means the date of termination of this Agreement.

 

“ Total Operating Expenses ” of a Person means the aggregate of all costs and expenses paid or incurred by such Person, but excluding Organization and Offering Expenses, interest payments, taxes, non-cash expenditures, any Acquisitions Fees or Acquisition Expenses.  The definition of “Total Operating Expenses” set forth above is intended to encompass only those expenses which are required to be treated as Total Operating Expenses under the NASAA REIT Guidelines.  As a result, and notwithstanding the definition set forth above, any expense of the Company which is not part of Total Operating Expenses under the NASAA REIT Guidelines shall not be treated as part of Total Operating Expenses for purposes hereof.

“ Valuation Guidelines ” means the valuation guidelines adopted by the Board, as may be amended from time to time.

 

“ 2%/25% Guidelines ” has the meaning set forth in Section 13 .

 

2.            APPOINTMENT.   The Company and the Operating Partnership hereby appoint the Advisor to serve as their advisor to perform the services set forth herein on the terms and subject to the conditions set forth in this Agreement and subject to the supervision of the Board, and the Advisor hereby accepts such appointment.

 

3.1          DUTIES OF THE ADVISOR.   The Advisor will use its reasonable best efforts to present to the Company and the Operating Partnership potential investment opportunities and to provide a continuing and suitable investment program consistent with the investment objectives and policies of the Company as determined and adopted from time to time by the Board.  In performance of this undertaking, subject to the supervision of the Board and consistent with the provisions of the Articles of Incorporation, By-laws and the Operating Partnership Agreement, the Advisor shall, either directly or by engaging an Affiliate or third party, including any Service Provider, perform the following duties:  

(a)           serve as the Company’s and the Operating Partnership’s investment and financial advisor;

 

(b)           provide the daily management for the Company and the Operating Partnership and perform and supervise the various administrative functions necessary for the day-to-day management of the operations of the Company and the Operating Partnership;

 

 

  

  

  

  

(c)           investigate, select and, on behalf of the Company and the Operating Partnership, engage and conduct business with and supervise the performance of such Persons as the Advisor deems necessary to the proper performance of its obligations hereunder (including consultants, accountants, correspondents, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries, custodians, agents for collection, insurers, insurance agents, banks, builders, developers, property owners, real estate management companies, real estate operating companies, securities investment advisors, mortgagors, the registrar and the transfer agent and any and all agents for any of the foregoing), including Affiliates of the Advisor and Persons acting in any other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing services (including entering into contracts in the name of the Company and the Operating Partnership with any of the foregoing);

 

(d)           consult with the officers and Directors of the Company and assist the Directors in the formulation and implementation of the Company’s financial policies, and, as necessary, furnish the Board with advice and recommendations with respect to the making of investments consistent with the investment objectives and policies of the Company and in connection with any borrowings proposed to be undertaken by the Company or the Operating Partnership;

 

(e)           subject to the provisions of Section 4 , (i) participate in formulating an investment strategy and asset allocation framework; (ii) locate, analyze and select potential Investments; (iii) structure and negotiate the terms and conditions of transactions pursuant to which acquisitions and dispositions of Investments will be made; (iv) research, identify, review and recommend acquisitions and dispositions of Investments to the Board and make Investments on behalf of the Company and the Operating Partnership in compliance with the investment objectives and policies of the Company; (v) arrange for financing and refinancing and make other changes in the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal with, Investments; (vi) enter into leases and service contracts for Real Estate Assets and, to the extent necessary, perform all other operational functions for the maintenance and administration of such Real Estate Assets; (vii) actively oversee and manage Investments for purposes of meeting the Company’s investment objectives and reviewing and analyzing financial information for each of the Investments and the overall portfolio; (viii) select Joint Venture partners, structure corresponding agreements and oversee and monitor these relationships; (ix) with respect to foreign investments, select a Service Provider to seek and procure financing for the Company’s properties, select and negotiate investments, including property purchases and leasebacks, and provide asset management services to oversee, supervise and evaluate Affiliated and non-Affiliated property managers who perform services for the Company or the Operating Partnership; (x) oversee Affiliated and non-Affiliated Persons with whom the Advisor contracts to perform certain of the services required to be performed under this Agreement; (xi) manage accounting and other record-keeping functions for the Company and the Operating Partnership, including reviewing and analyzing the capital and operating budgets for the Real Estate Assets and generating an annual budget for the Company; (xii) recommend various liquidity events to the Board when appropriate; and (xiii) source and structure Real Estate Related Loans; 

(f)           upon request, provide the Board with periodic reports regarding prospective investments;

 

(g)           make investments in, and dispositions of, Investments within the discretionary limits and authority as granted by the Board;

 

(h)           negotiate on behalf of the Company and the Operating Partnership with banks or other lenders for Loans to be made to the Company, the Operating Partnership or any of their subsidiaries, and negotiate with investment banking firms and broker-dealers on behalf of the Company, the Operating Partnership or any of their subsidiaries, or negotiate private sales of Shares or obtain Loans for the Company, the Operating Partnership or any of their subsidiaries, but in no event in such a manner so that the Advisor shall be acting as broker-dealer or underwriter; provided , however , that any fees and costs payable to third parties incurred by the Advisor in connection with the foregoing shall be the responsibility of the Company, the Operating Partnership or any of their subsidiaries;

 

(i)           obtain reports (which may, but are not required to, be prepared by the Advisor or its Affiliates), where appropriate, concerning the value of Investments or contemplated investments of the Company and the Operating Partnership;

 

(j)            from time to time, or at any time reasonably requested by the Board, make reports to the Board of its performance of services to the Company and the Operating Partnership under this Agreement, including reports with respect to potential conflicts of interest involving the Advisor or any of its Affiliates;

 

(k)           provide the Company and the Operating Partnership with all necessary cash management services;

 

(l)            deliver to, or maintain on behalf of, the Company copies of all appraisals obtained in connection with the investments in any Real Estate Assets as may be required to be obtained by the Board;

 

(m)          notify the Board of all proposed material transactions before they are completed;

 

 (n)         effect any private placement of OP Units, tenancy-in-common (TIC) or other interests in Investments as may be approved by the Board;

 

(o)           perform investor-relations and Stockholder communications functions for the Company;

 

(p)           render such services as may be reasonably determined by the Board of Directors consistent with the terms and conditions herein;

  

  

  

(q)           maintain the Company’s accounting and other records and assist the Company in filing all reports required to be filed by it with the Securities and Exchange Commission, the Internal Revenue Service and other regulatory agencies;

(r)           do all things reasonably necessary to assure its ability to render the services described in this Agreement;

(s)           at the end of each Business Day, calculate the NAV as provided in the Valuation Guidelines, and in connection therewith, obtain appraisals performed by the Independent Valuation Advisors; and

(t)           supervise one or more Independent Valuation Advisors and, if and when necessary, recommend to the Board its replacement.

3.1     ORGANIZATIONAL AND OFFERING SERVICES.  The Advisor shall perform all services related to the organization of the Company or any Offering or private sale of the Company’s securities, other than services that (i) are to be performed by the Dealer Manager, (ii) the Company elects to perform directly or (iii) would require the Advisor to register as a broker-dealer with the SEC or any state.

3.2     ACQUISITION SERVICES.  The Advisor shall (or shall retain other Persons to (but shall remain responsible to the Company)):

(a)           Serve as the Company’s investment and financial advisor and provide relevant market research and economic and statistical data in connection with the Company’s assets and investment objectives and policies;

(b)           Subject to Article 4 hereof and the investment objectives and policies of the Company and the Operating Partnership: (a) locate, analyze and select potential investments; (b) structure and negotiate the terms and conditions of transactions pursuant to which Investments will be made; (c) acquire, originate and dispose of Investments on behalf of the Company or the Operating Partnership (including through Joint Ventures); (d) arrange for financing and refinancing and make other changes in the asset or capital structure of investments in Investments; (e) select Joint Venture partners and structure corresponding agreements; and (f) enter into leases, service contracts and other agreements for Investments;

(c)           Perform due diligence on prospective investments and create due diligence reports summarizing the results of such work;

(d)           Prepare reports regarding prospective investments that include recommendations and supporting documentation necessary for the Directors to evaluate the proposed investments;

(e)           Obtain reports (which may be prepared by the Advisor or its Affiliates), where appropriate, concerning the value of the Properties;

(f)           Deliver to or maintain on behalf of the Company copies of all appraisals obtained in connection with the Company’s investments; and

(g)           Negotiate and execute approved investments and other transactions, including acquisitions of Investments.

3.3     ASSET MANAGEMENT SERVICES. The Advisor shall (or shall retain other Persons to (but shall remain responsible to the Company)):

	
  

	
(a)

	
Real Estate and Related Services:

	
  

	
(i)

	
Investigate, select and, on behalf of the Company, engage and conduct business with (including enter contracts with) and supervise the performance of such Persons as the Advisor deems necessary to the proper performance of its obligations as set forth in this Agreement, including consultants, accountants, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries, custodians, agents for collection, insurers, insurance agents, banks, builders, developers, property owners, security investment advisors, mortgagors, the registrar and the transfer agent, construction companies, the Property Manager and any and all Persons acting in any other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing services;

	
  

	
(ii)

	
Negotiate and service the Company’s debt facilities and other financings and negotiate on behalf of the Company with banks or other lenders for debt facilities to be made to the Company or with investment banking firms and broker-dealers or negotiate private sales of Shares or obtain debt facilities for the Company, but in no event in such a manner so that the Advisor shall be acting as a broker-dealer or underwriter; provided, however, that any fees and costs payable to third parties incurred by the Advisor in connection with the foregoing shall be the responsibility of the Company;

  

  

  

   

	
  

	
(iii)

	
Monitor applicable markets and obtain reports (which may be prepared by the Advisor or its Affiliates) where appropriate, concerning the value of investments of the Company;

	
  

	
(iv)

	
Monitor and evaluate the performance of each asset of the Company and the Company’s overall portfolio of assets, provide daily management services to the Company and perform and supervise the various management and operational functions related to the Company’s investments;

	
  

	
(v)

	
Formulate and oversee the implementation of strategies for the administration, promotion, management, operation, maintenance, investment, improvement, financing and refinancing, marketing, leasing and disposition of Investments on an overall portfolio basis;

	
  

	
(vi)

	
Consult with the Company’s officers and the Board and assist the Board in the formulation and implementation of the Company’s financial policies, and, as necessary, furnish the Board with advice and recommendations with respect to the making of investments consistent with the investment objectives and policies of the Company and in connection with any borrowings proposed to be undertaken by the Company;

	
  

	
(vii)

	
Oversee the performance by the Property Managers of their duties, including collection and proper deposits of rental payments and payment of Property expenses and maintenance;

	
  

	
(viii)

	
Conduct periodic on-site property visits to some or all (as the Advisor or its designee deems reasonably necessary) of the Properties to inspect the physical condition of the Properties and to evaluate the performance of the Property Manager;

	
  

	
(ix)

	
Review, analyze and comment upon the operating budgets, capital budgets and leasing plans prepared and submitted by each Property Manager and aggregate these property budgets into the Company’s overall budget;

	
  

	
(x)

	
Coordinate and manage relationships between the Company and any co-venturers or partners; and

	
  

	
(xi)

	
Consult with the Company’s officers and the Board and provide assistance with the evaluation and approval of potential asset dispositions, sales and refinancings.

	
  

	
(b)

	
Accounting and Other Administrative Services:

	
  

	
(i)

	
Provide the day-to-day management of the Company and perform or supervise, as appropriate, the various administrative functions reasonably necessary for the management of the Company;

	
  

	
(ii)

	
From time to time, or at any time reasonably requested by the Board, make reports to the Board on the Advisor’s performance of services to the Company under this Agreement;

	
  

	
(iii)

	
Make reports to the Company each quarter of the investments that have been made by other programs sponsored by the Advisor or any of its Affiliates, as well as any investments that have been made by the Advisor or any of its Affiliates directly, in each case to the extent such investments constitute a conflict of interest or a potential conflict of interest with the investment policies and objectives of the Company;

	
  

	
(iv)

	
Provide or arrange for any administrative services and items, legal and other services, office space, office furnishings, personnel and other overhead items necessary and incidental to the Company’s business and operations;

	
  

	
(v)

	
Provide financial and operational planning services;

	
  

	
(vi)

	
Maintain accounting and other record-keeping functions at the Company and investment levels, including information concerning the activities of the Company as shall be required to prepare and to file all periodic financial reports, tax returns and any other information required to be filed with the SEC, the Internal Revenue Service and any other regulatory agency;

	
  

	
(vii)

	
Maintain and preserve all appropriate books and records of the Company;

	
  

	
(viii)

	
Provide tax and compliance services and coordinate with appropriate third parties, including the Company’s independent auditors and other consultants, on related tax matters;

	
  

	
(ix)

	
Provide the Company with all necessary cash management services;

	
  

	
(x)

	
Deliver to, or maintain on behalf of, the Company copies of all appraisals obtained in connection with Investments;

  

  

  

	
  

	
(xi)

	
Manage and coordinate with the transfer agent the monthly dividend process and payments to Stockholders;

	
  

	
(xii)

	
Consult with the Company’s officers and the Board and assist the Board in evaluating and obtaining adequate insurance coverage based upon risk management determinations;

	
  

	
(xiii)

	
Consult with the Company’s officers and the Board and assist the Board in evaluating various liquidity events when appropriate;

	
  

	
(xiv)

	
Provide the Company’s officers and the Board with timely updates related to the overall regulatory environment affecting the Company, as well as managing compliance with such matters, including compliance with the Sarbanes-Oxley Act of 2002;

	
  

	
(xv)

	
Consult with the Company’s officers and the Board relating to the corporate governance structure and appropriate policies and procedures related thereto;

	
  

	
(xvi)

	
Perform all reporting, record keeping, internal controls and similar matters in a manner to allow the Company to comply with applicable law, including federal and state securities laws and the Sarbanes-Oxley Act of 2002;

	
  

	
(xvii)

	
Notify the Board of all proposed material transactions before they are completed; and

	
  

	
(xviii)

	
Do all things necessary to assure its ability to render the services described in this Agreement.

3.4     STOCKHOLDER SERVICES.  The Advisor shall (or shall retain other Persons to (but shall remain responsible to the Company)):

	
  

	
(a)

	
Manage services for and communications with Stockholders, including answering phone calls, preparing and sending written and electronic reports and other communications;

	
  

	
(b)

	
Oversee the performance of the transfer agent and registrar;

	
  

	
(c)

	
Establish technology infrastructure to assist in providing Stockholder support and service; and

	
  

	
(d)

	
Consistent with Section 3.1, perform the various subscription processing services reasonably necessary for the admission of new Stockholders.

3.5     OTHER SERVICES.  Except as provided in Article 9, the Advisor shall perform any other services reasonably requested by the Company.

 

4.1          AUTHORITY OF ADVISOR.  All rights and powers to manage and control the day-to-day business and affairs of the Company shall be vested in the Advisor. The Advisor shall have the power to delegate all or any part of its rights and powers to manage and control the business and  affairs of the Company to such officers, employees, Affiliates, agents and representatives of the Advisor or the Company or a third party as it may deem appropriate. Any authority delegated by the Advisor to any other Person shall be subject to the limitations on the rights and powers of the Advisor specifically set forth in this Agreement or the Articles of Incorporation.

4.2     POWERS OF THE ADVISOR. Subject to the express limitations set forth in this Agreement, to the continuing and exclusive authority of the Board over the supervision of the Company, and to the right of the Advisor to delegate its responsibilities pursuant to Section 4.1, the power to direct the management, operation and policies of the Company shall be vested in the Advisor, which shall have the power by itself and shall be authorized and empowered on behalf and in the name of the Company to carry out any and all of the objectives and purposes of the Company and to perform all acts and enter into and perform all contracts and other undertakings that it may in its sole discretion deem necessary, advisable or incidental thereto to perform its obligations under this Agreement.

 

4.3     APPROVAL BY THE BOARD.    Notwithstanding anything herein to the contrary, all Investments will require the prior approval of the Board, any particular Directors specified by the Board or any committee of the Board specified by the Board, as the case may be.  If a transaction requires approval by the Independent Directors, the Advisor will deliver to the Independent Directors all documents and other information reasonably required by them to evaluate properly the proposed transaction.

 

4.4          MODOFICATION OR REVOATION OF AUTHORITY OF ADVISOR.     The Board may, at any time upon the giving of notice to the Advisor, modify or revoke the authority set forth in this Section 4 ; provided, however , that such modification or revocation shall be effective upon receipt by the Advisor and shall not be applicable to investment transactions to which the Advisor has committed the Company or the Operating Partnership prior to the date of receipt by the Advisor of such notification.

  

  

  

 

5.            FIDUCIARY RELATIONSHIP.   The Advisor, as a result of its relationship with the Company and the Operating Partnership pursuant to this Agreement, stands in a fiduciary relationship with the Stockholders and the partners in the Operating Partnership. 

 

6.            NO PARTNERSHIP OR JOINT VENTURE.   The parties to this Agreement are not partners or joint venturers with each other and nothing herein shall be construed to make them partners or joint venturers or impose any liability as such on either of them.

 

7.            BANK ACCOUNTS.   The Advisor may establish and maintain one or more bank accounts in the name of the Company or the Operating Partnership and may collect and deposit into any such account or accounts, and disburse from any such account or accounts, any money on behalf of the Company or the Operating Partnership, under such terms and conditions as the Board may approve, provided that no funds shall be commingled with the funds of the Advisor; and, upon request, the Advisor shall render appropriate accountings of such collections and payments to the Board and to the auditors of the Company. 

 

8.            RECORDS; ACCESS.   The Advisor shall maintain appropriate records of all its activities hereunder and make such records available for inspection by the Directors and by counsel, auditors and authorized agents of the Company, at any time and from time to time.  The Advisor shall at all reasonable times have access to the books and records of the Company and the Operating Partnership.

 

9.            LIMITATIONS ON ACTIVITIES.   Notwithstanding anything herein to the contrary, the Advisor shall refrain from taking any action which, in its sole judgment, or in the sole judgment of the Company, made in good faith, would (a) adversely affect the status of the Company as a REIT, unless the Board has determined that REIT qualification is not in the best interests of the Company and its Stockholders, (b) subject the Company to regulation under the Investment Company Act of 1940, as amended, or (c) violate any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Company, the Operating Partnership or the Shares, or otherwise not be permitted by the Articles of Incorporation or By-laws, except if such action shall be ordered by the Board, in which case the Advisor shall notify promptly the Board of the Advisor’s judgment of the potential impact of such action and shall refrain from taking such action until it receives further clarification or instructions from the Board.  In such event, the Advisor shall have no liability for acting in accordance with the specific instructions of the Board so given.

 

10.          FEES.

 

(a)           Acquisition Fees.   The Company shall pay an Acquisition Fee to the Advisor or its assignees as compensation for services rendered in connection with the investigation, selection and acquisition (by purchase, investment or exchange) of Investments. If the Advisor is terminated without cause pursuant to Section 17(a), the Advisor or its assignees shall be entitled to an Acquisition Fee for any Investments acquired after the Termination Date for which a contract to acquire any such Investment had been entered into at or prior to the Termination Date. The total Acquisition Fee payable to the Advisor or its assignees shall equal one percent (1.0%) of the purchase price of Real Estate Assets and one percent (1.0%) of the amount advanced for Real Estate Related Loans or other Investments (other than Real Estate Assets), along with reimbursement of acquisition expenses.  The purchase price of the Real Estate Assets shall equal the amount paid or allocated to the purchase, development or improvement of the Real Estate Assets inclusive of expenses related thereto and the amount of debt associated with such Investment.  The purchase price allocable for an Investment held through a Joint Venture shall equal the product of (i) the purchase price of, or the amount advanced for, the Investment, as applicable, and (ii) the direct or indirect ownership percentage in the Joint Venture held directly or indirectly by the Company or the Operating Partnership.  For purposes of this section, “ownership percentage” shall be the percentage of capital stock, membership interests, partnership interests or other equity interests held by the Company or the Operating Partnership, without regard to classification of such equity interests.  The Company shall pay to the Advisor or its assignees the Acquisition Fee promptly upon the closing of the Investment.  In addition, if during the period ending two years after the close of the initial Offering, the Company sells an Investment and then reinvests in other Investments, the Company will pay to American Realty Capital Global Advisors, LLC one percent (1.0%) of the purchase price of Real Estate Assets and one percent (1.0%) of the amount advanced for Real Estate Related Loans or other Investments (other than Real Estate Assets), along with reimbursement of acquisition expenses. 

(b)           Limitation on Total Acquisition Fees and Acquisition Expenses.   The total of all Acquisition Fees and Acquisition Expenses payable in connection with any Investment or any reinvestment shall not exceed four and one-half percent (4.5%) of the Contract Purchase Price of the Investment acquired or four and one-half percent (4.5%) of the amount advanced for an Investment; provided, however, that once all the proceeds from the initial Offering have been fully invested, the total of all Acquisition Fees shall not exceed one and one-half percent (1.5%) of the Contract Purchase Price of all the Investments acquired.

(c)           Real Estate Commission.   In connection with a Sale of a Real Estate Asset in which the Advisor or any Affiliate of the Advisor provides a substantial amount of services, as determined by the Independent Directors, the Company shall pay to the Advisor or its assignees a Real Estate Commission up to the lesser of (i) two percent (2.0%) of the Contract Sales Price of such Real Estate Asset or (ii) one-half of the total brokerage commission paid if a brokerage commission or other disposition fee is paid to a non-Affiliate broker in addition to the Real Estate Commission paid to the Advisor or its assignees; provided, however , that in no event may the Real Estate Commission paid to the Advisor, its Affiliates and non-Affiliates exceed the lesser of six percent (6.0%) of the Contract Sales Price and a Competitive Real Estate Commission.

  

  

  

(d)           Asset Management Fee.   The Company shall pay an Asset Management Fee to the Advisor or its assignees as compensation for services rendered in connection with the management of the Company’s assets in an amount equal to 1.0% of the monthly average of daily NAV.  The Asset Management Fee is payable on the first business day of each month; provided, however, that the amount of any asset management fee payable will be reduced to the extent that the Company's modified funds from operations ("MFFO") during the previous month is less than the amount of asset management fees paid during such month.

(e)           Oversight Fees. The Company shall pay the Advisor an Oversight Fee equal to one percent (1.0%) of the gross revenues from Properties managed by any Person that is not an Affiliate of the Advisor.  All Oversight Fees payable to the Advisor hereunder shall be paid monthly in arrears by the tenth (10th) day of the following month.  The Advisor shall submit an invoice to the Company, accompanied by a computation of the Oversight Fee for the applicable quarter.

(f)           Financing Coordination Fee.  The Company shall pay a Financing Coordination Fee to the Advisor in connection with the financing of any Investment, assumption of any loans with respect to any Investment or refinancing of any loan in an amount equal to one percent (1.0%) of the amount made available and/or outstanding under any such loan, including any assumed loan.  In no event will the aggregate Acquisition Fees and Financing Coordination Fees, at the time that the net proceeds of the Offering are fully invested or at any time thereafter, exceed, in the aggregate, one and a half percent (1.5%) of the aggregate Contract Sales Price of all of the Properties acquired by the Company.  The Advisor shall submit an invoice to the Company, accompanied by a computation of the Financing Coordination Fee at or prior to the closing of the financing.  The Company shall pay to the Advisor the Financing Coordination Fee at the closing of the financing. 

(g)          Annual Subordinated Performance Fee.  The Company may pay an Annual Subordinated Performance Fee to the Advisor calculated on the basis of the total return to Stockholders, payable monthly in arrears in any year in which the Company’s total return on Stockholders’ capital contributions exceeds six percent (6%) per annum.  In such year, the Advisor will be paid fifteen percent (15%) of the excess total return, not to exceed ten percent (10%) of the aggregate total return for such year.   This fee will only be payable upon the sale of assets or other event which results in the Company’s total return on Stockholders’ Capital contributions exceeding six percent (6%) per annum.

 

(h)          Payment of Fees.   In connection with the Acquisition Fee, Real Estate Commission and Annual Subordinated Performance Fee, the Company shall pay such fees to the Advisor or its assignees in cash or in Shares, or a combination of both, the form of payment to be determined in the sole discretion of the Advisor. The Asset Management Fee shall be payable, at the discretion of the Board of Directors, in cash, Shares or grants of restricted Shares, or any combination thereof. For the purposes of the payment of any fees in Shares, prior to the end of the escrow period and the acquisition of the Company’s first Real Estate Asset, each Share shall be valued at the per share offering price of our Shares in the initial Offering minus the maximum Selling Commissions, Platform Fees and Dealer Manager Fee allowed in the initial Offering.  Following the escrow period and the acquisition of the Company’s first Real Estate Asset, each Share shall be valued using NAV; provided, however, that in the case of Asset Management Fees payable in grants of restricted shares, each Share shall be valued in accordance with the provisions of the equity incentive plan of the Company pursuant to which such grants are to be made.  

 

(i)            Exclusion of Certain Transactions. 

 

(i)            If the Company or the Operating Partnership shall propose to enter into any transaction in which the Advisor, any Affiliate of the Advisor or any of the Advisor’s directors or officers has a direct or indirect interest, then such transaction shall be approved by a majority of the Board not otherwise interested in such transaction, including a majority of the Independent Directors.

 

(ii)          If the Board elects to internalize any management services provided by the Advisor, neither the Company nor the Operating Partnership shall pay any compensation or other remuneration to the Advisor or its Affiliates in connection with the internalization transaction.

 

11.          EXPENSES.

 

(a)           In addition to the compensation paid to the Advisor pursuant to Section 10 , the Company or the Operating Partnership shall pay directly or reimburse the Advisor for all the expenses paid or incurred by the Advisor or its Affiliates in connection with the services it provides to the Company and the Operating Partnership pursuant to this Agreement, including, the following:

 

(i)             Organization and Offering Expenses, including third-party due diligence fees related to the Primary Offering, as set forth in detailed and itemized invoices; provided, however , that the Company shall not reimburse the Advisor to the extent such reimbursement would cause the total amount of Organization and Offering Expenses paid by the Company and the Operating Partnership to exceed one and one-half percent (1.5%) of the Gross Proceeds raised in all Primary Offerings;

 

(ii)           Acquisition Expenses incurred in connection with the selection and acquisition of Investments, subject to the aggregate four and one-half percent (4.5%) cap on Acquisition Fees and Acquisition Expenses set forth in Section 10(b) ;

 

(iii)          the actual cost of goods and services used by the Company and obtained from entities not Affiliated with the Advisor;

 

(iv)          interest and other costs for Loans, including discounts, points and other similar fees;  

 

(v)           taxes and assessments on income of the Company or Investments;

  

  

  

 

(vi)          costs associated with insurance required in connection with the business of the Company or by the Board;

 

(vii)         expenses of managing and operating Investments owned by the Company, whether payable to an Affiliate of the Company or a non-affiliated Person;

 

(viii)        all expenses in connection with payments to the Directors for attending meetings of the Board and Stockholders;

 

(ix)           expenses associated with a Listing, if applicable, or with the issuance and distribution of Shares, such as selling commissions and fees, advertising expenses, taxes, legal and accounting fees, listing and registration fees;

 

(x)            expenses connected with payments of Distributions;

 

(xi)           expenses of organizing, revising, amending, converting, modifying or terminating the Company, the Operating Partnership or any subsidiary thereof or the Articles of Incorporation, By-laws or governing documents of the Operating Partnership or any subsidiary of the Company or the Operating Partnership;

 

(xii)          expenses of maintaining communications with Stockholders, including the cost of preparation, printing, and mailing annual reports and other Stockholder reports, proxy statements and other reports required by governmental entities;

 

(xiii)         administrative service expenses, including all costs and expenses incurred by Advisor or its Affiliates in fulfilling its duties hereunder, including reasonable salaries and wages, benefits and overhead of all employees directly involved in the performance of such services; provided , however , that no reimbursement shall be made for costs of such employees of the Advisor or its Affiliates to the extent that such employees perform services for which the Advisor receives a separate fee; and

 

(xiv)         audit, accounting and legal fees.

 

(b)           Commencing upon the earlier to occur of (i) the fifth fiscal quarter after the Company makes its first Investment or (ii) six (6) months after the commencement of the initial Offering, expenses incurred by the Advisor on behalf of the Company and the Operating Partnership or in connection with the services provided by the Advisor hereunder and payable pursuant to this Section 11 shall be reimbursed, no less than monthly, to the Advisor.

 

12.          OTHER SERVICES.    Should the Board request that the Advisor or any director, officer or employee thereof render services for the Company and the Operating Partnership other than set forth in Section 3 , such services shall be separately compensated at such customary rates and in such customary amounts as are agreed upon by the Advisor and the Board, including a majority of the Independent Directors, subject to the limitations contained in the Articles of Incorporation, and shall not be deemed to be services pursuant to the terms of this Agreement.

13.          REIMBURSEMENT TO THE ADVISOR.    The Company shall not reimburse the Advisor at the end of any fiscal quarter in which Total Operating Expenses incurred by the Advisor for the four (4) consecutive fiscal quarters then ended (the “Expense Year ”) exceed (the “ Excess Amount ”) the greater of two percent (2%) of Average Invested Assets or twenty-five percent (25%) of Net Income (the “ 2%/25% Guidelines”) for such year.  Any Excess Amount paid to the Advisor during a fiscal quarter shall be repaid to the Company or, at the option of the Company, subtracted from the Total Operating Expenses reimbursed during the subsequent fiscal quarter.  If there is an Excess Amount in any Expense Year and the Independent Directors determine that such excess was justified based on unusual and nonrecurring factors which they deem sufficient, then the Excess Amount may be carried over and included in Total Operating Expenses in subsequent Expense Years and reimbursed to the Advisor in one or more of such years, provided that there shall be sent to the Stockholders a written disclosure of such fact, together with an explanation of the factors the Independent Directors considered in determining that such excess expenses were justified.  Such determination shall be reflected in the minutes of the meetings of the Board.  All figures used in the foregoing computation shall be determined in accordance with GAAP applied on a consistent basis.

 

14.          OTHER ACTIVITIES OF THE ADVISOR.   Except as set forth in this Section 14 , nothing herein contained shall prevent the Advisor or any of its Affiliates from engaging in or earning fees from other activities, including the rendering of advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized by the Sponsor or its Affiliates; nor shall this Agreement limit or restrict the right of any director, officer, member, partner, employee or stockholder of the Advisor or any of its Affiliates to engage in or earn fees from any other business or to render services of any kind to any other Person and earn fees for rendering such services; provided, however , that the Advisor must devote sufficient resources to the Company’s business to discharge its obligations to the Company under this Agreement.  The Advisor may, with respect to any investment in which the Company is a participant, also render advice and service to each and every other participant therein, and earn fees for rendering such advice and service.  Specifically, it is contemplated that the Company may enter into Joint Ventures or other similar co-investment arrangements with certain Persons, and pursuant to the agreements governing such Joint Ventures or similar co-investment arrangements, the Advisor may be engaged to provide advice and service to such Persons, in which case the Advisor will earn fees for rendering such advice and service. 

  

  

  

The Advisor shall report to the Board the existence of any condition or circumstance, existing or anticipated, of which it has knowledge, which creates or could create a conflict of interest between the Advisor’s obligations to the Company and its obligations to or its interest in any other Person.  If the Advisor, Director or Affiliates thereof have sponsored other investment programs with similar investment objectives which have investment funds available at the same time as the Company, the Advisor shall inform the Board of the method to be applied by the Advisor in allocating investment opportunities among the Company and competing investment entities and shall provide regular updates to the Board of the investment opportunities provided by the Advisor to competing programs in order for the Board (including the Independent Directors) to fulfill its duty to ensure that the Advisor and its Affiliates use their reasonable best efforts to apply such method fairly to the Company.  

 

15.          THE AMERICAN REALTY CAPITAL NAME.   The Advisor and its Affiliates have or may have a proprietary interest in the names “American Realty Capital,” “ARC” and “AR Capital.”  The Advisor hereby grants to the Company, to the extent of any proprietary interest the Advisor may have in any of the names “American Realty Capital,” “ARC” and “AR Capital,” a non-transferable, non-assignable, non-exclusive, royalty-free right and license to use the names “American Realty Capital,” “ARC” and “AR Capital” during the term of this Agreement. The Company agrees that the Advisor and its Affiliates will have the right to approve of any use by the Company of the names “American Realty Capital,” “ARC” and “AR Capital,” such approval not to be unreasonably withheld or delayed. Accordingly, and in recognition of this right, if at any time the Company ceases to retain the Advisor or one of its Affiliates to perform advisory services for the Company, the Company will, promptly after receipt of written request from the Advisor, cease to conduct business under or use the names “American Realty Capital,” “ARC” and “AR Capital” or any derivative thereof and the Company shall change its name and the names of any of its subsidiaries to a name that does not contain the names “American Realty Capital,” “ARC” and “AR Capital” or any other word or words that might, in the reasonable discretion of the Advisor, be susceptible of indication of some form of relationship between the Company and the Advisor or any its Affiliates. At such time, the Company will also make any changes to any trademarks, servicemarks or other marks necessary to remove any references to the words “American Realty Capital,” “ARC” and “AR Capital.” Consistent with the foregoing, it is specifically recognized that the Advisor or one or more of its Affiliates has in the past and may in the future organize, sponsor or otherwise permit to exist other investment vehicles (including vehicles for investment in real estate) and financial and service organizations having any of the names “American Realty Capital,” “ARC” and “AR Capital” as a part of their name, all without the need for any consent (and without the right to object thereto) by the Company.  Neither the Advisor nor any of its Affiliates makes any representation or warranty, express or implied, with respect to the names “American Realty Capital,” “ARC” and “AR Capital” licensed hereunder or the use thereof (including without limitation as to whether the use of the names “American Realty Capital,” “ARC” and “AR Capital” will be free from infringement of the intellectual property rights of third parties.  Notwithstanding the preceding, the Advisor represents and warrants that it is not aware of any pending claims or litigation or of any claims threatened in writing regarding the use or ownership of the names “American Realty Capital,” “ARC” and “AR Capital.”

 

16.          TERM OF AGREEMENT.   This Agreement shall continue in force for a period of one year from the date hereof.  Thereafter, the term may be renewed for an unlimited number of successive one-year terms upon mutual consent of the parties.

 

17.          TERMINATION BY THE PARTIES.   This Agreement may be terminated upon sixty (60) days’ written notice (a) by the Independent Directors of the Company or the Advisor, without Cause and without penalty, (b) by the Advisor for Good Reason, or (c) by the Advisor upon a Change of Control.  The provisions of Sections 19 through 31 of this Agreement shall survive termination of this Agreement. 

 

18.          ASSIGNMENT.  

(a)           Assignment of Agreement.  This Agreement may be assigned by the Advisor to an Affiliate with the approval of a majority of the Directors (including a majority of the Independent Directors).  The Advisor may assign any rights to receive fees or other payments under this Agreement to any Person without obtaining the approval of the Directors.  This Agreement shall not be assigned by the Company or the Operating Partnership without the consent of the Advisor, except in the case of an assignment by the Company or the Operating Partnership to a Person which is a successor to all the assets, rights and obligations of the Company or the Operating Partnership, in which case such successor Person shall be bound hereunder and by the terms of said assignment in the same manner as the Company or the Operating Partnership, as applicable, is bound by this Agreement.

(b)           Assignment of Payments.  The Advisor may assign any rights to receive fees or other payments under this Agreement without obtaining the approval of the Board, and the Company shall honor and pay directly the assignee of such assignment

 

19.          PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION.

 

(a)           Amounts Owed .   After the Termination Date, the Advisor shall be entitled to receive from the Company or the Operating Partnership within thirty (30) days after the effective date of such termination all amounts then accrued and owing to the Advisor, including all its interest in the Company’s income, losses, distributions and capital by payment of an amount equal to the then-present fair market value of the Advisor’s interest, subject to the 2%/25% Guidelines to the extent applicable.

  

(b)           Advisor’s Duties .  The Advisor shall promptly upon termination of this Agreement:

 

  

  

  

 (i)          pay over to the Company and the Operating Partnership all money collected and held for the account of the Company and the Operating Partnership pursuant to this Agreement, after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled;

 

(ii)          deliver to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Board;

 

(iii)         deliver to the Board all assets, including all Investments, and documents of the Company and the Operating Partnership then in the custody of the Advisor; and

 

(iv)         cooperate with the Company and the Operating Partnership to provide an orderly management transition.

 

20.         INCORPORATION OF THE ARTICLES OF INCORPORATION AND THE OPERATING PARTNERSHIP AGREEMENT.   To the extent that the Articles of Incorporation or the Operating Partnership Agreement impose obligations or restrictions on the Advisor or grant the Advisor certain rights which are not set forth in this Agreement, the Advisor shall abide by such obligations or restrictions and such rights shall inure to the benefit of the Advisor with the same force and effect as if they were set forth herein.

 

21.          INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP. 

(a)           The Company and the Operating Partnership shall indemnify and hold harmless the Advisor and its Affiliates, as well as their respective officers, directors, equity holders, members, partners, stockholders, other equity holders and employees (collectively, the “ Indemnitees ,” and each, an “ Indemnitee ”), from all liability, claims, damages or losses arising in the performance of their duties hereunder, and related expenses, including reasonable attorneys’ fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by insurance, and to the extent that such indemnification would not be inconsistent with the laws of the State of New York, the Articles of Incorporation or the provisions of Section II.G of the NASAA REIT Guidelines.  Notwithstanding the foregoing, the Company and the Operating Partnership shall not provide for indemnification of an Indemnitee for any loss or liability suffered by such Indemnitee, nor shall they provide that an Indemnitee be held harmless for any loss or liability suffered by the Company and the Operating Partnership, unless all the following conditions are met:

 

(i)           the Indemnitee has determined, in good faith, that the course of conduct that caused the loss or liability was in the best interest of the Company and the Operating Partnership;

 

(ii)          the Indemnitee was acting on behalf of, or performing services for, the Company or the Operating Partnership;

 

(iii)         such liability or loss was not the result of negligence or willful misconduct by the Indemnitee; and

 

(iv)        such indemnification or agreement to hold harmless is recoverable only out of the Company’s net assets and not from the Stockholders.

(b)          Notwithstanding the foregoing, an Indemnitee shall not be indemnified by the Company and the Operating Partnership for any losses, liabilities or expenses arising from or out of an alleged violation of federal or state securities laws by such Indemnitee unless one or more of the following conditions are met:

 

(i)           there has been a successful adjudication on the merits of each count involving alleged securities law violations as to the Indemnitee;

 

(ii)          such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the Indemnitee; or

 

(iii)         a court of competent jurisdiction approves a settlement of the claims against the Indemnitee and finds that indemnification of the settlement and the related costs should be made, and the court considering the request for indemnification has been advised of the position of the Securities and Exchange Commission and of the published position of any state securities regulatory authority in which securities of the Company or the Operating Partnership were offered or sold as to indemnification for violation of securities laws.

 

(c)           In addition, the advancement of the Company’s or the Operating Partnership’s funds to an Indemnitee for legal expenses and other costs incurred as a result of any legal action for which indemnification is being sought is permissible only if all the following conditions are satisfied:

(i)           the legal action relates to acts or omissions with respect to the performance of duties or services on behalf of the Company or the Operating Partnership;

 

(ii)          the legal action is initiated by a third party who is not a Stockholder or the legal action is initiated by a Stockholder acting in such Stockholder’s capacity as such and a court of competent jurisdiction specifically approves such advancement; and

  

  

  

 

(iii)         the Indemnitee undertakes to repay the advanced funds to the Company or the Operating Partnership, together with the applicable legal rate of interest thereon, in cases in which such Indemnitee is found not to be entitled to indemnification.

 

22.          INDEMNIFICATION BY ADVISOR.   The Advisor shall indemnify and hold harmless the Company and the Operating Partnership from contract or other liability, claims, damages, taxes or losses and related expenses, including reasonable attorneys’ fees, to the extent that such liability, claims, damages, taxes or losses and related expenses are not fully reimbursed by insurance and are incurred by reason of the Advisor’s bad faith, fraud, willful misfeasance, intentional misconduct, gross negligence or reckless disregard of its duties; provided, however , that the Advisor shall not be held responsible for any action of the Board in following or declining to follow any advice or recommendation given by the Advisor.

 

23.          NOTICES.   Any notice, report or other communication (each a “ Notice ”) required or permitted to be given hereunder shall be in writing unless some other method of giving such Notice is required by the Articles of Incorporation, the By-laws, and shall be given by being delivered by hand, by courier or overnight carrier or by registered or certified mail to the addresses set forth below:   

	  	  	  
	
To the Company:

	  	
American Realty Capital Global Daily Net Asset Value Trust, Inc.

	  	  	
405 Park Avenue

	  	  	
New York, New York 10022

	  	  	
Attention:  William M. Kahane,

	  	  	
President

	  	  	  
	  	  	
with a copy to:

	  	  	  
	  	  	
John A. Good, Esq.

	  	  	
Bass, Berry & Sims PLC

	  	  	
100 Peabody Place, Suite 900

	  	  	
Memphis, Tennessee 38103-3672

 

	
To the Operating Partnership:

	  	
American Realty Capital Global Operating Partnership, L.P.

	  	  	
405 Park Avenue

	  	  	
New York, New York 10022

	  	  	
Attention:  William M. Kahane

	  	  	  
	  	  	
with a copy to:

	  	  	  
	  	  	
John A. Good, Esq.

	  	  	
Bass, Berry & Sims PLC

	  	  	
100 Peabody Place, Suite 900

	  	  	
Memphis, Tennessee 38103-3672

	
To the Advisor:

	  	
American Realty Capital Global Advisors, LLC

	  	  	
405 Park Avenue

	  	  	
New York, New York 10022

	  	  	
Attention:  William M. Kahane

	  	  	  
	  	  	
with a copy to:

	  	  	  
	  	  	
John A. Good, Esq.

	  	  	
Bass, Berry & Sims PLC

	  	  	
100 Peabody Place, Suite 900

	  	  	
Memphis, Tennessee 38103-3672

	  	  	  

 

Any party may at any time give Notice in writing to the other parties of a change in its address for the purposes of this Section 23 .

 

24.          MODIFICATION.   This Agreement shall not be amended, supplemented, terminated, or discharged, in whole or in part, except by an instrument in writing signed by the parties hereto, or their respective successors or assignees.

 

  

  

  

25.          SEVERABILITY.   The provisions of this Agreement are independent of and severable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part.

 

26.         GOVERNING LAW .   The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State of New York as at the time in effect, without regard to the principles of conflicts of laws thereof.

 

27.          ENTIRE AGREEMENT.   This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof.  The express terms hereof control and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof. 

28.          NO WAIVER.   Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence.  No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

 

29.         PRONOUNS AND PLURALS.   Whenever the context may require, any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa.

 

30.          HEADINGS.   The titles of sections and subsections contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.

 

31.          EXECUTION IN COUNTERPARTS.   This Agreement may be executed (including by facsimile transmission) with counterpart signature pages or in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument.

 

[Remainder of page intentionally left blank]

 

  

  

  

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written above.

 

	  	
American Realty Capital Global Daily Net

	  
	  	
Asset Value Trust, Inc.

	  
	  	  	  
	  	
By:

	  	  
	  	
Nicholas S. Schorsch, Chairman, President and

	  
	  	
Chief Executive Officer

	  
	  	  	  
	  	
American Realty Capital Global Operating

	  
	  	
Partnership, L.P.

	  
	  	  	  
	  	  	
American Realty Capital Global Daily Net

	  
	  	  	
Asset Value Trust, Inc., its General Partner

	  
	  	  	  
	  	  	
By:

	  	  
	  	  	
Nicholas S. Schorsch, Chairman, President

	  
	  	  	
and Chief Executive Officer

	  
	  	  	  
	  	
American Realty Capital Global Advisors, LLC

	  
	  	  	  
	  	  	
By:

	  	  

ARC GNAV – Advisory AgreementUnassociated Document

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES PURCHASE AGREEMENT (this “Agreement”) is dated as of December 5, 2011, between Robocom Systems International Inc., a Nevada corporation (“Robocom”), AgriVest Americas, Inc., a Delaware corporation and a wholly-owned subsidiary of Robocom (“AgriVest”), and Michael Campbell, an individual residing in Tustin, California (the “Purchaser”).

 

WHEREAS, Robocom intends to merge with and into AgriVest pursuant to the terms of the Merger Agreement (as defined below) for the purposes of changing the name and jurisdiction of Robocom and recapitalizing the outstanding capital stock of Robocom; and

 

WHEREAS, subject to the terms, conditions and limitations set forth in this Agreement, immediately following such merger ArgiVest wishes to sell, and Purchaser wishes to purchase, an aggregate of 19 million shares (the “Shares”) of the common stock, par value $0.001 per share (the “Common Stock”), of AgriVest; and

 

WHEREAS, the consideration for the Shares shall be $0.001 per share of Common Stock for a total of $50,000 (the “Purchase Price”).

 

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, Robocom, AgriVest and the Purchaser agree as follows:

ARTICLE I

DEFINITIONS

1.1           Definitions.  In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings set forth in this Section 1.1:

 

 “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

“Board of Directors” means, with respect to a corporation, the board of directors of such corporation.

 

“Business Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

 

 “Closing” means the closing of the purchase and sale of the Shares pursuant to Section 2.1.

 

  

 

  

 

“Closing Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchaser’s obligations to pay the Purchase Price and (ii) AgriVest’s obligations to deliver the Shares, in each case, have been satisfied or waived.

 

“Commission” means the United States Securities and Exchange Commission.

 

“Common Stock” means, in the case of Robocom, the Common Stock, par value $0.1 per share, of Robocom and in the case of AgriVest, the common stock, par value $0.001 per share, of AgriVest and any other class of securities into which such securities may hereafter be reclassified or changed.

 

“Common Stock Equivalents” means any securities of AgriVest which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

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

“Exempt Issuance” means the issuance of Common Stock issuable upon a stock split, stock dividend or any subdivision of shares of Common Stock.

“Liens” means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

“Merger” means the merger of Robocom with and into AgriVest pursuant to the terms of the Merger Agreement.

“Merger Agreement” means the Agreement and Plan of Merger dated as of December 5, 2011 between Robocom and AgriVest in the form annexed hereto as Exhibit A.

“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

“Preferred Stock” means, in the case of Robocom, the Preferred Stock, par value $.01 per share of Robocom and in the case of AgriVest, the Preferred Stock, par value $.001 per share, of AgriVest.

“Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding, such as a deposition), whether commenced or threatened.

 “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

  

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“Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

 

“Shares” has the meaning set forth in the Preamble.

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

 “Short Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include the location and/or reservation of borrowable shares of Common Stock).

“Trading Day” means a day on which the principal Trading Market is open for trading.

“Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE Amex, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the OTC Bulletin Board (or any successors to any of the foregoing).

“Transaction Documents” means this Agreement, the Merger Agreement and all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.

“Transfer Agent” means the current transfer agent of Robocom, and any successor transfer agent of Robocom.

ARTICLE II

PURCHASE AND SALE

2.1 Closing.  On the Closing Date, upon the terms and subject to the conditions set forth herein, AgriVest agrees to sell, and the Purchaser agrees to purchase, an aggregate of 19 million shares of Common Stock.  Purchaser shall deliver to AgriVest a personal check equal to the Purchase Price and AgriVest shall deliver to Purchaser a certificate representing the Shares.  Robocom, AgriVest and Purchaser shall each deliver to the other items set forth in Section 2.2 deliverable at the Closing.  Upon waiver or satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at such location as the parties shall mutually agree.

 

2.2  Deliveries.

 

(a) On or prior to the Closing Date, Robocom shall deliver or cause to be delivered to the Purchaser the following:

 

(i) the Transaction Documents signed by Robocom; and

 

  

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(ii) evidence of the consummation of the Merger pursuant to the terms of the Merger Agreement.

 

(b) On or prior to the Closing Date, AgriVest shall deliver or cause to be delivered to the Purchaser the following:

 

(i) the Transaction Documents signed by AgriVest;

 

(ii) a certificate evidencing 19 million shares of Common Stock;

 

(iii) resignation letters of such directors of AgriVest as the Purchaser may specify in its sole discretion in writing prior to the Closing, and resolutions of the AgriVest’s Board of Directors appointing Michael Campbell as the sole officer of AgriVest and as a director of AgriVest, to serve in such capacity until the next annual meeting of AgriVest’s stockholders or his sooner replacement, as applicable; and

 

(iv) a certificate of the secretary of AgriVest (a) certifying that all conditions to Closing have been met, as well as the incumbency of AgriVest’s officers executing the Transaction Documents; (b) attaching copies of resolutions of the Board of Directors of AgriVest (x) approving the transactions contemplated by this Agreement, and (y) appointing such directors and officers of AgriVest as may be designated by Purchaser, which resolutions shall in each case be in full force and effect; (c) attaching copies certified by the Secretary of State of the State of Delaware of AgriVest’s Articles of Incorporation, as amended, and (d) attaching a true and complete copy of AgriVest’s bylaws, as amended, which shall be in full force and effect.

 

(c) On or prior to the Closing Date, Purchaser shall deliver or cause to be delivered to Robocom and AgriVest the following:

 

(i)  this Agreement duly executed by Purchaser;

 

(ii) a bank check or other form of payment satisfactory to AgriVest in the amount of $50,000.00 in payment of the Purchase Price; and

(iii) all other Transaction Documents to which the Purchaser is a party, duly executed by Purchaser.

	
2.3  

	
Closing Conditions.

 

(a) The obligations of Robocom and AgriVest hereunder in connection with the Closing are subject to the following conditions being met:

 

(i) the accuracy in all material respects on the Closing Date of the representations and warranties of the Purchaser contained herein (unless as of a specific date therein);

 

  

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(ii) all obligations, covenants and agreements of the Purchaser required to be performed at or prior to the Closing Date shall have been performed; and

 

(iii) the delivery by the Purchaser of the items set forth in Section 2.2(c) of this Agreement.

 

(b) The obligations of the Purchaser hereunder in connection with the Closing are subject to the following conditions being met:

 

(i) the accuracy in all material respects when made and on the Closing Date of the representations and warranties of Robocom and AgriVest contained herein (unless as of a specific date therein);

 

(ii) all obligations, covenants and agreements of Robocom required to be performed at or prior to the Closing Date shall have been performed;

 

(iii) the delivery by Robocom of the items set forth in Section 2.2(a) of this Agreement;

 

(iv) the delivery by AgriVest of the items set forth in Section 2.2(b) of this Agreement;

 

(v) there shall have been no Material Adverse Effect with respect to the Robocom or AgriVest since the date hereof; and

 

(vii)           from the date hereof to the Closing Date, no banking moratorium shall have been declared either by the United States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of the Purchaser, makes it impracticable or inadvisable to purchase the Shares at the Closing.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

3.1           Representations and Warranties of Robocom.  Except as set forth in the SEC Reports, which SEC Reports shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the applicable SEC Report, Robocom hereby makes the following representations and warranties to the Purchaser as of the Closing Date:

 

(a) Subsidiaries. Robocom has no subsidiaries other than AgriVest.

 

  

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(b) Organization and Qualification.  Robocom is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.  Robocom is not in violation or default of any of the provisions of its certificate or articles of incorporation, bylaws or other organizational or charter documents.  Robocom is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of Robocom, taken as a whole, or (iii) a material adverse effect on Robocom’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.  Notwithstanding the foregoing, the following events, changes, conditions or effects shall not be deemed to have a “Material Adverse Effect:” (A) any action or omission of Robocom taken with the prior written consent of the Purchaser; or (B) any violations or other matters that occur as a result of the taking of any action expressly required by this Agreement or the failure to take any action prohibited from being taken by this Agreement.

 

(c) Authorization; Enforcement.  Robocom has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder.  The execution and delivery of each of the Transaction Documents by Robocom and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of Robocom and no further action is required by Robocom, the Board of Directors or Robocom’s stockholders in connection therewith.  Each Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by Robocom and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of Robocom enforceable against Robocom in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(d) No Conflicts.  The execution, delivery and performance by Robocom of the Transaction Documents and the consummation by it of the transactions contemplated hereby and thereby to which it is a party do not and will not: (i) conflict with or violate any provision of Robocom’s articles of incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of Robocom, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Robocom debt or otherwise) or other understanding to which Robocom is a party or by which any property or asset of Robocom is bound or affected, or (iii) conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which Robocom is subject (including federal and state securities laws and regulations), or by which any property or asset of Robocom is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

  

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(e) Filings, Consents and Approvals.  Robocom is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by Robocom of the Transaction Documents, other than such filings as are required to be made in connection with the Merger Agreement or under applicable state securities laws.

 

(f) Issuance of the Shares.  The Shares when issued by AgriVest shall be duly authorized, duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by Robocom other than restrictions on transfer provided for in the Transaction Documents.

 

(g) Capitalization.  The capitalization of Robocom is as follows: 100 million shares of Common stock being duly authorized of which 4,840,984 shares of Common Stock are issued and outstanding and one million shares of Preferred Stock being authorized, none of which are issued and outstanding. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents.  There are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Common Stock or Preferred Stock, or contracts, commitments, understandings or arrangements by which Robocom is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents.  The sale of the Shares by AgriVest will not obligate Robocom to issue shares of Common Stock or other securities to any Person and will not result in a right of any holder of Robocom’s securities to adjust the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital stock of Robocom are validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.  No further approval or authorization of any stockholder, the Board of Directors or others is required for the consummation of the transactions contemplated by the Transaction Documents.  There are no stockholders agreements, voting agreements or other similar agreements with respect to Robocom’s capital stock to which Robocom is a party or, to the knowledge of Robocom, between or among any of Robocom’s stockholders.

 

  

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(h) SEC Reports; Financial Statements.  Robocom has filed all reports, schedules, forms, statements and other documents required to be filed by Robocom under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as Robocom was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension.  As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, 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 the light of the circumstances under which they were made, not misleading.  The financial statements of Robocom included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing.  Such 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 and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of Robocom 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, immaterial, year-end audit adjustments.

 

(i) Material Changes; Undisclosed Events, Liabilities or Developments.  Since the date of the latest audited financial statements included within the SEC Reports or except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof: (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) Robocom has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in Robocom’s financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) Robocom has not altered its method of accounting, (iv) Robocom 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) Robocom has not issued any equity securities to any officer, director or Affiliate.  Robocom does not have pending before the Commission any request for confidential treatment of information.  Except for the transactions contemplated by this Agreement, no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to Robocom or its business, properties, operations, assets or financial condition, that would be required to be disclosed by Robocom under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least one Trading Day prior to the date that this representation is made.

 

(j) Litigation.  There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of Robocom, threatened against or affecting Robocom, or any of its respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign).

 

(k) Labor Relations.  Robocom does not currently have any employees.

 

(l) Compliance.  Robocom is not: (i) in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by Robocom under), nor has Robocom received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) in violation of any judgment, decree or order of any court, arbitrator or governmental body or (iii) in or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable to its business and all such laws that affect the environment, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

  

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(m) Regulatory Permits.  Robocom possesses all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct business as described in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material Permits”), and Robocom has not received any notice of proceedings relating to the revocation or modification of any Material Permit.

 

(n) Title to Assets. Robocom has no material assets.

 

(o) Patents and Trademarks. Robocom has no patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses or other intellectual property rights or any similar rights.

 

(p) Insurance.  Robocom has no policy of insurance.

 

(q) Transactions With Affiliates and Employees.  Except as set forth in the SEC Reports, none of the officers or directors of Robocom is presently a party to any transaction with Robocom (other than for services as officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer or director, any entity in which any officer or director has a substantial interest or is an officer or director, trustee or partner, in each case in excess of $120,000.

 

(r) Investment Company.  Robocom is not, and is not an Affiliate of, and following the consummation of the transactions contemplated by the Transaction Documents will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.  Robocom shall conduct its business in a manner so that it will not become an “investment company” subject to registration under the Investment Company Act of 1940, as amended.

 

(s) Registration Rights.  No Person has any right to cause Robocom to effect the registration under the Securities Act or Exchange Act of any securities of Robocom.

 

(t) Registration of Securities.  Robocom’s Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and Robocom has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has Robocom received any notification that the Commission is contemplating terminating such registration.

 

  

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(u) Application of Takeover Protections.  Robocom and the Board of Directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under Robocom’s articles of incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchaser as a result of the Purchaser and Robocom fulfilling their respective obligations or exercising their respective rights under the Transaction Documents, including without limitation as a result of Robocom’s issuance of the Shares and the Purchaser’s ownership of the Shares.

 

(v) Disclosure.  Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, Robocom confirms that neither it nor any other Person acting on its behalf has provided the Purchaser or its representatives, agents or counsel with any information that it believes constitutes or might constitute material, non-public information.  Robocom understands and confirms that the Purchaser will rely on the foregoing representation in effecting transactions in securities of Robocom.  All of the disclosure furnished by or on behalf of Robocom to the Purchaser regarding Robocom, its business and the transactions contemplated hereby is true and correct in all material respects and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. Robocom acknowledges and agrees that the Purchaser makes, has not made, nor will make any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof and in the other Transaction Documents to which the Purchaser is a party.

 

(w) Tax Status.  Robocom has filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and Robocom has no knowledge of a tax deficiency which has been asserted or threatened against Robocom.

 

(x) Accountants.  Robocom’s accounting firm is a registered public accounting firm as required by the Exchange Act.

 

(y) No Disagreements with Accountants and Lawyers.  There are no disagreements of any kind presently existing, or reasonably anticipated by Robocom to arise, between Robocom and the accountants and lawyers formerly or presently employed by Robocom and Robocom is current with respect to any fees owed to its accountants and lawyers which could affect Robocom’s ability to perform any of its obligations under any of the Transaction Documents.

 

(z) Regulation M Compliance.  Robocom has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of Robocom to facilitate the sale or resale of any of the Shares, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Shares, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of Robocom.

 

  

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(aa) Stock Option Plans. Robocom has no stock option or restricted security plans, agreements or arrangements.  Robocom has not knowingly granted, and there is no and has been no policy or practice to knowingly grant, stock options or restricted securities prior to, or otherwise knowingly coordinate the grant of stock options with, the release or other public announcement of material information regarding Robocom or its financial results or prospects.

 

3.2           Representations and Warranties of AgriVest.  Except as set forth in the SEC Reports, which SEC Reports shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the applicable SEC Report, AgriVest hereby makes the following representations and warranties to Purchaser as of the Closing Date:

 

(a) Subsidiaries.  AgriVest has no subsidiaries.

 

(b) Organization and Qualification.  AgriVest is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.  AgriVest is not in violation or default of any of the provisions of its certificate or articles of incorporation, bylaws or other organizational or charter documents.  AgriVest is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in a Material Adverse Effect and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.  Notwithstanding the foregoing, the following events, changes, conditions or effects shall not be deemed to have a “Material Adverse Effect:” (A) any action or omission of AgriVest taken with the prior written consent of the Purchaser; or (B) any violations or other matters that occur as a result of the taking of any action expressly required by this Agreement or the failure to take any action prohibited from being taken by this Agreement.

 

(c) Authorization; Enforcement.  AgriVest has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder.  The execution and delivery of each of the Transaction Documents by AgriVest and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of AgriVest and no further action is required by AgriVest, the Board of Directors or AgriVest’s stockholders in connection therewith.  Each Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by AgriVest and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of AgriVest enforceable against AgriVest in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

  

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(d) No Conflicts.  The execution, delivery and performance by AgriVest of the Transaction Documents, the sale of the Shares and the consummation by it of the transactions contemplated hereby and thereby to which it is a party do not and will not: (i) conflict with or violate any provision of AgriVest’s articles of incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of AgriVest, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a AgriVest debt or otherwise) or other understanding to which AgriVest is a party or by which any property or asset of AgriVest is bound or affected, or (iii) conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which AgriVest is subject (including federal and state securities laws and regulations), or by which any property or asset of AgriVest is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(e) Filings, Consents and Approvals.  AgriVest is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by AgriVest of the Transaction Documents, other than such filings as are required to be made under applicable state securities laws.

 

(f) Issuance of the Shares.  The Shares when issued shall be duly authorized, duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by AgriVest other than restrictions on transfer provided for in the Transaction Documents.

 

(g) Capitalization.  The capitalization of AgriVest is as follows: 100 million shares of Common stock being duly authorized of which 100 shares of Common Stock will be issued and outstanding immediately prior to the consummation of the Merger and 2,420,492 shares will be issued and outstanding immediately following the Merger, and 25 million shares of Preferred Stock being authorized, none of which are issued and outstanding.  No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents.  Except as provided in the Merger Agreement, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Common Stock or Preferred Stock, or contracts, commitments, understandings or arrangements by which AgriVest is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents.  The sale of the Shares by AgriVest will not obligate AgriVest to issue shares of Common Stock or other securities to any Person (other than the Purchaser) and will not result in a right of any holder of AgriVest’s securities to adjust the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital stock of AgriVest are validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.  No further approval or authorization of any stockholder, the Board of Directors or others is required for the consummation of the transactions contemplated by the Transaction Documents.  There are no stockholders agreements, voting agreements or other similar agreements with respect to AgriVest’s capital stock to which AgriVest is a party or, to the knowledge of AgriVest, between or among any of AgriVest’s stockholders.

 

  

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(h) Material Changes; Undisclosed Events, Liabilities or Developments.  Since the date of the latest audited financial statements of Robocom included within the SEC Reports or except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof: (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) AgriVest has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in AgriVest’s financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) AgriVest has not altered its method of accounting, (iv) AgriVest 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) AgriVest has not issued any equity securities to any officer, director or Affiliate.  AgriVest does not have pending before the Commission any request for confidential treatment of information.  Except for the transactions contemplated by this Agreement, no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to AgriVest or its business, properties, operations, assets or financial condition, that would be required to be disclosed by AgriVest under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least one Trading Day prior to the date that this representation is made.

 

(i) Litigation.  There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of AgriVest, threatened against or affecting AgriVest, or any of its respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign).

 

(j) Labor Relations.  AgriVest does not currently have and has never had any employees.

 

(k) Compliance.  AgriVest is not: (i) in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by AgriVest under), nor has AgriVest received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) in violation of any judgment, decree or order of any court, arbitrator or governmental body or (iii) in or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable to its business and all such laws that affect the environment, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(l) Regulatory Permits.  AgriVest possesses all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct business as described in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material Permits”), and AgriVest has not received any notice of proceedings relating to the revocation or modification of any Material Permit.

 

  

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(m) Title to Assets.  AgriVest has no material assets.

 

(n) Patents and Trademarks. AgriVest has no patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses or other intellectual property rights or any similar rights.

 

(o) Insurance.  AgriVest has no policy of insurance.

 

(p) Transactions With Affiliates and Employees.  Except as set forth in the SEC Reports, none of the officers or directors of AgriVest is presently a party to any transaction with AgriVest (other than for services as officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer or director, any entity in which any officer or director has a substantial interest or is an officer or director, trustee or partner, in each case in excess of $120,000.

 

(q) Investment Company.  AgriVest is not, and is not an Affiliate of, and following the consummation of the transactions contemplated by the Transaction Documents will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.  AgriVest shall conduct its business in a manner so that it will not become an “investment company” subject to registration under the Investment Company Act of 1940, as amended.

 

(r) Registration Rights.  No Person has any right to cause AgriVest to effect the registration under the Securities Act or Exchange Act of any securities of AgriVest.

 

(s) Registration of Securities.  Following the merger contemplated by the Merger Agreement, the Common Stock of AgriVest will be registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and AgriVest has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has AgriVest received any notification that the Commission is contemplating terminating such registration.

 

(t) Application of Takeover Protections.  AgriVest and the Board of Directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under AgriVest’s articles of incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchaser as a result of the Purchaser and AgriVest fulfilling their respective obligations or exercising their respective rights under the Transaction Documents, including without limitation as a result of AgriVest’s issuance of the Shares and the Purchaser’s ownership of the Shares.

 

  

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(u) Disclosure.  Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, AgriVest confirms that neither it nor any other Person acting on its behalf has provided the Purchaser or its representatives, agents or counsel with any information that it believes constitutes or might constitute material, non-public information.  AgriVest understands and confirms that the Purchaser will rely on the foregoing representation in effecting transactions in securities of AgriVest.  All of the disclosure furnished by or on behalf of AgriVest to the Purchaser regarding AgriVest, its business and the transactions contemplated hereby is true and correct in all material respects and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.  AgriVest acknowledges and agrees that the Purchaser makes, has not made, nor will make any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof and in the other Transaction Documents to which the Purchaser is a party.

 

(v) Tax Status.  AgriVest has filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and AgriVest has no knowledge of a tax deficiency which has been asserted or threatened against AgriVest.

 

(w) Accountants.  AgriVest’s accounting firm is a registered public accounting firm as required by the Exchange Act.

 

(x) No Disagreements with Accountants and Lawyers.  There are no disagreements of any kind presently existing, or reasonably anticipated by AgriVest to arise, between AgriVest and the accountants and lawyers formerly or presently employed by AgriVest and AgriVest is current with respect to any fees owed to its accountants and lawyers which could affect AgriVest’s ability to perform any of its obligations under any of the Transaction Documents.

 

(y) Regulation M Compliance.  AgriVest has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of AgriVest to facilitate the sale or resale of any of the Shares, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Shares, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of AgriVest.

 

(z) Stock Option Plans. AgriVest has no stock option or restricted security plans, agreements or arrangements.  AgriVest has not knowingly granted, and there is no and has been no policy or practice to knowingly grant, stock options or restricted securities prior to, or otherwise knowingly coordinate the grant of stock options with, the release or other public announcement of material information regarding AgriVest or its financial results or prospects.

 

3.3           Representations and Warranties of the Purchaser.  Purchaser hereby represents and warrants as of the date hereof and as of the Closing Date to Robocom and AgriVest as follows (unless as of a specific date therein):

 

  

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(a)           Due Execution.  Each Transaction Document to which Purchaser is a party has been duly executed by Purchaser, and when delivered by Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of Purchaser, enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b)           Government Consent etc.  No consent, approval or authorization of or designation, declaration or filing with any governmental authority on the part of the Purchaser is required in connection with the valid execution and delivery of this Agreement or the Transaction Documents, or the offer and sale of the Shares, or the consummation of any other transaction contemplated hereby other than those filings required under the Exchange Act.

 

(c)           Disclosure of Information.  The Purchaser represents that it has had an opportunity to ask questions and receive answers from Robocom regarding the terms and conditions of the offering of the Shares and the business, properties, prospects and financial condition of Robocom.

 

(d)           Restricted Securities.  The Purchaser understands that the Shares will be characterized as “restricted securities” under the federal securities laws, inasmuch as they are being acquired from Robocom in a transaction not involving a public offering, and that under such laws and applicable regulations such Shares may not be resold without registration under the Securities Act, except in certain limited circumstances.  In this connection, the Purchaser represents that it is familiar with Rule 144 promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.  The Purchaser further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the Shares and on requirements relating to Robocom that are outside the Purchaser’s control, and that Robocom is under no obligation and may not be able to satisfy.

 

(e)           Accredited Investor.  The Purchaser is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities Act.

 

ARTICLE IV

OTHER AGREEMENTS OF THE PARTIES

 

4.1           Transfer Restrictions.

 

(a) The Shares may only be disposed of in compliance with state and federal securities laws.  In connection with any transfer of Shares other than pursuant to an effective registration statement or Rule 144, to AgriVest or to an Affiliate of Purchaser or in connection with a pledge as contemplated in Section 4.1(b), AgriVest may require the transferor thereof to provide to AgriVest an opinion of counsel selected by the transferor and reasonably acceptable to AgriVest, the form and substance of which opinion shall be reasonably satisfactory to AgriVest, to the effect that such transfer does not require registration of such transferred Shares under the Securities Act.

 

  

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(b) The Purchaser agrees to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Shares in the following form:

 

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND, IF APPLICABLE, THE SECURITIES LAWS OF ANY APPLICABLE STATE OR OTHER JURISDICTION OR IN THE ABSENCE OF SUCH REGISTRATION UPON DELIVERY TO THE COMPANY OF AN OPINION OF COUNSEL SATSIFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.”

AgriVest acknowledges and agrees that Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered broker-dealer or grant a security interest in some or all of the Shares to a financial institution that is an “accredited investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement  and, if required under the terms of such arrangement, Purchaser may transfer pledged or secured Shares to the pledgees or secured parties.  Such a pledge or transfer would not be subject to approval of AgriVest and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith.  Further, no notice shall be required of such pledge.  At Purchaser’s expense, AgriVest will execute and deliver such reasonable documentation as a pledgee or secured party of Shares may reasonably request in connection with a pledge or transfer of the Shares.

 

(c) Purchaser agrees with AgriVest that Purchaser will sell any Shares pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that if Shares are sold pursuant to a registration statement, they will be sold in compliance with the plan of distribution set forth therein, and acknowledges that the removal of the restrictive legend from certificates representing Shares as set forth in this Section 4.1 is predicated upon AgriVest’s reliance upon this understanding.

 

4.2           Furnishing of Information; Public Information.  As long as Purchaser owns Shares, AgriVest covenants to maintain the registration of the Common Stock under Section 12(b) or 12(g) of the Exchange Act and to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by AgriVest after the date hereof pursuant to the Exchange Act even if AgriVest is not then subject to the reporting requirements of the Exchange Act.  AgriVest further covenants that it will take such further action as any holder of Shares may reasonably request, to the extent required from time to time to enable such Person to sell such Shares without registration under the Securities Act, including without limitation, within the requirements of the exemption provided by Rule 144.

 

  

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4.3           Securities Laws Disclosure; Publicity.  AgriVest shall, by 8:30 a.m. (New York City time) on the 4th Business Day immediately following the date hereof, issue a Current Report on Form 8-K disclosing the material terms of the transactions contemplated hereby, and including the Transaction Documents as exhibits thereto.  AgriVest and the Purchaser shall consult with each other in issuing any press releases with respect to the transactions contemplated hereby, and neither AgriVest nor the Purchaser shall issue any such press release nor otherwise make any such public statement without the prior consent of AgriVest, with respect to any press release of Purchaser, or without the prior consent of the Purchaser, with respect to any press release of AgriVest, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or communication.

 

4.4           Shareholder Rights Plan.  No claim will be made or enforced by Robocom or AgriVest, with the consent of Robocom, or any other Person, that Purchaser is an “Acquiring Person” under any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by Robocom or AgriVest, or that Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Shares under the Transaction Documents or under any other agreement between Robocom or AgriVest and the Purchaser.

 

4.5           Non-Public Information.  Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, each of Robocom and AgriVest covenants and agrees that neither it, nor any other Person acting on its behalf, will provide Purchaser or its agents or counsel with any information that Robocom believes constitutes material non-public information, unless prior thereto Purchaser shall have executed a written agreement with Robocom or AgriVest, as the case may be, regarding the confidentiality and use of such information.  Each of Robocom and AgriVest understands and confirms that Purchaser may rely on the foregoing covenant in effecting transactions in securities of Robocom.

 

4.6           Indemnification of the Purchaser.  Subject to the provisions of this Section 4.6, Robocom and AgriVest will, jointly and severally, indemnify and hold the Purchaser and his representatives and agents  (each, a “Purchaser Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by Robocom or AgriVest in this Agreement or in the other Transaction Documents or (b) any action instituted against Purchaser in any capacity, or any of them or their respective Affiliates, by any stockholder of Robocom or AgriVest who is not an Affiliate of Purchaser, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is pleaded with particularity as follows and based upon a breach of Purchaser’s representations, warranties or covenants under the Transaction Documents or any agreements or understandings Purchaser may have with any such stockholder or any violations by Purchaser of state or federal securities laws or any conduct by Purchaser which constitutes fraud, gross negligence, willful misconduct or malfeasance).  If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, Purchaser Party shall promptly notify Robocom and AgriVest in writing, and Robocom and AgriVest shall have the right to assume the defense thereof with counsel of their own choosing reasonably acceptable to the Purchaser Party.  Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by Robocom and AgriVest in writing, (ii) Robocom and AgriVest have failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material conflict on any material issue between the position of Robocom and/or AgriVest, on the one hand, and the position of such Purchaser Party, on the other hand, in which case Robocom and AgriVest shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. Neither Robocom nor AgriVest will be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected without Robocom’s and AgriVest’s prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents.

 

  

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4.7           Certain Transactions and Confidentiality. Purchaser covenants that neither he, nor any Affiliate acting on his behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales, of any of Robocom’s or AgriVest’s securities during the period commencing with the execution of this Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the Current Report on Form 8-K.  Purchaser covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by Robocom or AgriVest pursuant to the Current Report on Form 8-K, Purchaser will maintain the confidentiality of the existence and terms of this transaction and the information included in the Transaction Documents.  Notwithstanding the foregoing, and notwithstanding anything contained in this Agreement to the contrary, each of Robocom and AgriVest expressly acknowledges and agrees that (i) Purchaser does not make any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities of Robocom and AgriVest after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the Current Report on Form 8-K, (ii) Purchaser shall not be restricted or prohibited from effecting any transactions in any securities of Robocom or AgriVest in accordance with applicable securities laws from and after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the Current Report on Form 8-K and (iii) Purchaser shall have no duty of confidentiality to Robocom or AgriVest after the issuance of the Current Report on Form 8-K regarding this Agreement.

 

  

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ARTICLE V

MISCELLANEOUS

5.1           Termination; Cooperation. 

 

(a)           This Agreement may be terminated by the Purchaser if the Closing has not been consummated on or before January 15, 2012.

 

(b)           From the date hereof until the Closing Date, each of Robocom and AgriVest will cooperate, and will cause its officers, directors, agents and advisers to cooperate, with the Purchaser on any due diligence investigation of Robocom or AgriVest, their businesses, officers and directors, and each of Robocom and AgriVest will promptly notify (or cause to be notified) the Purchaser of any material event or events of any nature whatsoever regarding Robocom or AgriVest or the subject matter of the Purchaser’s due diligence investigation.

 

5.2           Fees and Expenses.  The Purchaser, Robocom and AgriVest shall pay the fees and expenses of their respective advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement and the other Transaction Documents.  AgriVest shall pay all Transfer Agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Shares to the Purchaser other than taxes based upon income.

 

5.3           Entire Agreement; Further Assurances.  The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.  The parties hereto agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement and the Transaction Documents.

 

5.4           Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given.  The address for such notices and communications shall be as set forth on the signature pages attached hereto.

 

5.5           Amendments; Waivers.  No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by each of Robocom, AgriVest and the Purchaser or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought.  No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

  

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5.6           Headings.  The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

 

5.7           Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.  Neither Robocom nor AgriVest may assign this Agreement or any rights or obligations hereunder without the prior written consent of Purchaser.  Purchaser may assign any or all of its rights under this Agreement to any Person to whom Purchaser assigns or transfers any Shares, provided that such transferee agrees in writing to be bound, with respect to the transferred Shares, by the provisions of the Transaction Documents that apply to Purchaser.

 

5.8           No Third-Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

5.9           Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York applicable to contracts and agreements made and to be performed solely within the State of New York.  Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York.  Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an  inconvenient venue for such proceeding.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

5.10           Survival.  The representations and warranties contained herein shall survive the Closing and the delivery of the Shares.

 

  

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5.11           Execution.  This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

5.12           Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

5.13           Replacement of Shares.  If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, AgriVest shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to AgriVest of such loss, theft or destruction.  The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Shares.

 

5.14           Remedies.  In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of Purchaser, Robocom and AgriVest will be entitled to specific performance under the Transaction Documents.  The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any such obligation the defense that a remedy at law would be adequate.

 

5.15           Saturdays, Sundays, Holidays, etc.                                                                If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.

 

5.16           Construction. The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments hereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

 

  

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5.17           WAIVER OF JURY TRIAL.  IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

[Signature Page Follows]

 

  

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IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	
ROBOCOM SYSTEMS INTERNATIONAL INC.

	
Address for Notice:

	  	  	 	  
	
By:

	
 /s/ Irwin Balaban

	 	
17 Fairbanks Boulevard

	  	
Name:  Irwin Balaban

	 	
Woodbury, New York  11797

	  	
Title:    President and Chief Executive Officer

	  
	  	  	 	  
	
AGRIVEST AMERICAS, INC.

	 	
Address for Notice:

	  	  	 	  
	
By:

	
  /s/ Irwin Balaban         

	 	
17 Fairbanks Boulevard

	  	
Name:  Irwin Balaban

	 	
Woodbury, New York  11797

	  	
Title:    President and Chief Executive Officer

	  
	  	  	 	  
	  	  	 	  
	
PURCHASER:

	 	  
	  	  	 	  
	  	  	 	
Address for Notice:

	  	  	 	  
	
By:

	
  /s/ Michael Campbell     

	 	
11753 Willard Avenue,

	
Name:

	
 Michael Campbell

	 	
Tustin, California  92782

  

24

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