Document:

Exhibit 10.4

Exhibit
10.4

Warrant
Issued to Tejas Securities

 

THIS WARRANT CERTIFICATE AND THE UNDERLYING SHARES OF COMMON STOCK REPRESENTED BY THIS WARRANT CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED AND MAY NOT BE OFFERED OR SOLD IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, REGISTRATION UNDER SAID ACT.

December 19, 2005

WILSON HOLDINGS, INC.

COMMON STOCK PURCHASE WARRANT

Number of Shares: 750,000

(subject to adjustment)

This Warrant (the “Warrant”) issued by Wilson Holdings, Inc., a Nevada corporation (formerly known as Cole Computer Corporation) (the “Company”) is the warrant referred to in, and is issued pursuant to, that certain Engagement Letter dated November 9, 2005 by and between the Company and Tejas Securities Group, Inc., as amended.

This Warrant certifies that, for cash in the amount of $100, which shall constitute good and valuable consideration, the Company grants to Tejas Securities Group, Inc. (including any successors or assigns, the “Holder”), the right to subscribe for and purchase from the Company, at any time on or prior to the Expiration Date (as defined herein), 750,000 shares of Common Stock (such shares and/or any other securities that may be deliverable on exercise hereof, the “Warrant Shares”), at the Exercise Price (as defined herein), all subject to the terms, conditions and adjustments herein set forth. The number of Warrant Shares and the Exercise Price are subject to adjustment as provided in Section 3. This Warrant is issued subject to the following terms and conditions:

1.             Definitions. As used in this Warrant, the following terms shall have the respective meanings set forth below or elsewhere in this Warrant as referred to below:

“Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this Warrant, “control,” when used with respect to any specified Person means the power to direct or cause the direction of the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

“Business day” (whether such term is capitalized or not) means any day except Saturday, Sunday and any day which shall be a federal legal holiday or a day on which banking institutions in the State of New York or the State of Texas are authorized or required by law or other governmental action to close.

 

“Common Stock” means the common stock, $0.001 par value per share, of the Company (including any securities into which or for which such shares may be exchanged for, or converted into, pursuant to any stock dividend, stock split, stock combination, recapitalization, reclassification, reorganization or other similar event).

“Company” has the meaning set forth in the preamble hereof.

“Exercise Price” means $2.00 per share of Common Stock, as such amount may be adjusted from time to time pursuant to Section 3 hereof.

“Expiration Date” means December 19, 2015.

“Fair Market Value” shall mean on any date (i) if the Common Stock is quoted on Nasdaq or listed on a national securities exchange, then the last reported sale price per share of Common Stock on Nasdaq or any national securities exchange in which such Common Stock is quoted or listed, as the case may be, on such date or, if no such sale price is reported on such date, such price on the next preceding business day in which such price was reported, (ii) if the Common Stock is actively traded over-the-counter, then the last sales price quoted, if determinable, or, if not determinable, the average of the closing bid and asked prices quoted on the OTCBB (or similar system) on such date or (iii) if such Common Stock is not traded, quoted or listed on Nasdaq or any national securities exchange or the over-the-counter market, then the fair
market value of a share of Common Stock, as determined in good faith by the Board of Directors of the Company.

“Holder” has the meaning set forth in the preamble of hereof.

“Majority Holders” means the holders of more than 50% of the aggregate number of Warrant Shares issuable upon the exercise of (a) this Warrant and (b) any warrants issued upon the transfer of portions of this Warrant by the Holder to other holders.

“OTCBB” means the OTC Bulletin Board.

“Person” (whether or not capitalized) means an individual, entity, partnership, limited liability company, corporation, association, trust, joint venture, unincorporated organization, and any government, governmental department or agency or political subdivision thereof.

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

“Securities Purchase Agreement” means that certain Securities Purchase Agreement, dated as of the date hereof, as it may be amended from time to time, by and among the Company and the Purchasers (as such term is defined therein).

	
             
 	
            2.
 	
            
Exercise of Warrant.
 

                                2.1   Exercise Period.          On the terms and subject to the conditions contained herein, the Holder may exercise this Warrant at any time and from time to time on any Business Day starting on the date hereof and ending at 5:00 p.m., Eastern Time, on the Expiration Date. The Expiration Date shall be extended for any period that the registration statement contemplated in Section 4 fails to remain effective.

 

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            2.2
 	
            
Method of Exercise; Payment.
 

(a)           Cash Exercise. Subject to all of the terms and conditions hereof, this Warrant may be exercised, in whole or in part, at any time and from time to time during the period commencing on the date hereof and ending at 5:00 p.m., Eastern Time, on the Expiration Date, by surrender of this Warrant to the Company at its principal office, accompanied by a subscription substantially in the form attached hereto, executed by the Holder and accompanied by (a) wire transfer of immediately available funds or (b) certified or official bank check payable to the order of the Company, in each case in the amount obtained by multiplying (i) the number of Warrant Shares for which the Warrant is being exercised, as designated in such subscription, by (ii) the Exercise Price. Thereupon, the Holder
shall be entitled to receive the number of duly authorized, validly issued, fully paid and nonassessable Warrant Shares determined as provided for herein.

(b)           Cashless Exercise/Conversion. Subject to all of the terms and conditions hereof, the Holder shall have the right to convert this Warrant, in whole or in part, at any time and from time to time during the period commencing on the date hereof and ending at 5:00 p.m., Eastern Time, on the Expiration Date, by surrender of this Warrant to the Company at its principal office, accompanied by a conversion notice substantially in the form attached hereto, executed by the Holder. Thereupon, the Holder shall be entitled to receive a number of duly authorized, validly issued, fully paid and nonassessable Warrant Shares equal to:

(i)            (A)(x) the number of Warrant Shares (subject to adjustment as provided in Section 3 hereof) which such Holder would be entitled to receive upon exercise of such Warrant for the number of Warrant Shares designated in such conversion notice (without giving effect to any adjustment thereof pursuant to this subsection), multiplied by (y) the Fair Market Value of each such Warrant Share so receivable upon such exercise

minus

(B)(x) the number of Warrant Shares subject to adjustment as provided in Section 3 hereof which such Holder would be entitled to receive upon exercise of such Warrant for the number of Warrant Shares designated in such conversion notice (without giving effect to any adjustment thereof pursuant to this subsection), multiplied by (y) the Exercise Price

divided by

	
             
 	
            (ii)
 	
            the Fair Market Value per Warrant Share.
 

 

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2.3           Delivery of Stock Certificates on Exercise. As soon as practicable after the exercise of this Warrant, and in any event within three (3) business days thereafter, the Company, at its expense, and in accordance with applicable securities laws, will cause to be issued in the name of and delivered to the Holder, or as the Holder may direct (subject in all cases, to the provisions of Section 8 hereof), a certificate or certificates for the number of Warrant Shares purchased by the Holder on such exercise, plus, in lieu of any fractional share to which the Holder would otherwise be entitled, cash equal to such fraction multiplied by the Fair Market Value.

2.4           Warrant Shares To Be Fully Paid and Nonassessable. All Warrant Shares issued upon the exercise of this Warrant shall be duly authorized, validly issued, fully paid and nonassessable, free of all liens, taxes, charges and other encumbrances or restrictions on sale (other than those set forth herein).

2.5           Issuance of New Warrants; Company Acknowledgment. Upon any partial exercise of this Warrant, the Company, at its expense, will forthwith and, in any event within three (3) business days, issue and deliver to the Holder a new warrant or warrants of like tenor, registered in the name of the Holder, exercisable, in the aggregate, for the balance of the Warrant Shares. Moreover, the Company shall, at the time of any exercise of this Warrant, upon the request of the Holder, acknowledge in writing its continuing obligation to afford to the Holder any rights to which the Holder shall continue to be entitled after such exercise in accordance with the provisions of this Warrant; provided, however, that if the Holder shall fail to make any such request, such failure shall not affect the
continuing obligation of the Company to afford to the Holder any such rights.

2.6           Payment of Taxes and Expenses. The Company shall pay any recording, filing, stamp or similar tax which may be payable in respect of any transfer involved in the issuance of, and the preparation and delivery of certificates (if applicable) representing, (i) any Warrant Shares purchased upon exercise of this Warrant and/or (ii) new or replacement warrants in the Holder’s name or the name of any transferee of all or any portion of this Warrant.

2.7          Cooperation with Filings. The Company shall assist and cooperate with any Holder required to make any governmental or regulatory filings or obtain any governmental or regulatory approvals prior to or in connection with any exercise of this Warrant (including, without limitation, making any filings required to be made by the Company).

2.8          Conditions. Notwithstanding any other provision of this Warrant, if the exercise of all or any portion of this Warrant is to be made in connection with a registered public offering, a sale of the Company or any other transaction or event, such exercise may, at the election of the Holder, be conditioned upon consummation of such transaction or event in which case such exercise shall not be deemed effective until the consummation of such transaction or event.

3.             Adjustment of Exercise Price and Warrant Shares. The Exercise Price and the number of Warrant Shares shall be subject to adjustment from time to time upon the happening of certain events as described in this Section 3.

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3.1           Subdivision or Combination of Stock. If at any time or from time to time after the date hereof, the Company shall subdivide (by way of stock dividend, stock split or otherwise) its outstanding shares of Common Stock, the Exercise Price in effect immediately prior to such subdivision shall be reduced proportionately and the number of Warrant Shares (calculated to the nearest whole share) shall be increased proportionately, and conversely, in the event the outstanding shares of Common Stock shall be combined (whether by stock combination, reverse stock split or otherwise) into a smaller number of shares, the Exercise Price in effect immediately prior to such combination shall be increased proportionately and the number of Warrant Shares (calculated to the nearest whole share) shall
be decreased proportionately. The Exercise Price and the number of Warrant Shares, as so adjusted, shall be readjusted in the same manner upon the happening of any successive event or events described in this Section 3.1.

	
             
 	
            3.2
 	
            
Adjustments
 

(a)           Adjustment for Stock Dividends. If at any time after the date hereof, the Company shall declare a dividend or make any other distribution upon any class or series of stock of the Company payable in shares of Common Stock, the Exercise Price in effect immediately prior to such declaration or distribution shall be reduced proportionately and the number of Warrant Shares (calculated to the nearest whole share) shall be increased proportionately, to reflect the issuance of any shares of Common Stock, issuable in payment of such dividend or distribution. The Exercise Price and the number of Warrant Shares, as so adjusted, shall be readjusted in the same manner upon the happening of any successive event or events described in this Section 3.2.

(b)           Adjustments for Other Dividends and Distributions. In the event the Company at any time or from time to time after the date hereof shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in securities of the Company (other than shares of Common Stock) or in cash or other property, then and in each such event provision shall be made so that the Holder shall receive upon exercise hereof, in addition to the number of shares of Common Stock issuable hereunder, the kind and amount of securities of the Company and/or cash and other property which the Holder would have been entitled to receive had this Warrant been exercised into Common Stock on the date of such event and had the Holder
thereafter, during the period from the date of such event to and including the exercise date, retained any such securities receivable, giving application to all adjustments called for during such period under this Section 3 with respect to the rights of the Holder.

 

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3.3           Adjustments for Reclassifications. If the Common Stock issuable upon the conversion of this Warrant shall be changed into the same or a different number of shares of any class(es) or series of stock and/or the right to receive property, whether by reclassification or otherwise (other than an adjustment under Sections 3.1 and 3.2 or a merger, consolidation, or sale of assets provided for under Section 3.4), then and in each such event, the Holder hereof shall have the right thereafter to convert each Warrant Share into the kind and amount of shares of stock and other securities and property receivable upon such reclassification, or other change by holders of the number of shares of Common Stock into which such Warrant Shares would have been convertible immediately prior to such
reclassification or change, all subject to successive adjustments thereafter from time to time pursuant to and in accordance with, the provisions of this Section 3.

3.4           Adjustments for Merger or Consolidation. In the event that, at any time or from time to time after the date hereof, the Company shall (a) effect a reorganization, (b) consolidate with or merge into any other Person, or (c) sell or transfer all or substantially all of its properties or assets or more than 50% of the voting capital stock of the Company (whether issued and outstanding, newly issued, from treasury, or any combination thereof) to any other person under any plan or arrangement contemplating the consolidation or merger, sale or transfer, or dissolution of the Company (each, a “Merger Transaction”), then, in each such case, the Holder, upon the exercise of this Warrant as provided in Section 2.2(a) or the conversion of this warrant as provided in Section 2.2(b)
hereof at any time or from time to time after the consummation of such reorganization, consolidation, merger or sale or the effective date of such dissolution, as the case may be, shall receive, in lieu of the Warrant Shares issuable on such exercise immediately prior to such consummation or such effective date, as the case may be, the stock and property (including cash) to which the Holder would have been entitled upon the consummation of such consolidation or merger, or sale or transfer, or in connection with such dissolution, as the case may be, if the Holder had so exercised this Warrant immediately prior thereto (assuming the payment by the Holder of the Exercise Price therefor as required hereby in a form permitted hereby, which payment shall be included in the assets of the Company for the purposes of determining the amount available for distribution), all subject to successive adjustments thereafter from time to time pursuant to, and in accordance with, the provisions of this
Section 3. The Company shall not effect any such reorganization, consolidation, merger, sale or transfer unless, prior to the consummation thereof, the successor entity (if other than the Company) resulting from the consolidation or merger or the entity purchasing such assets assumes by written instrument the obligation to deliver to each holder of Warrants such shares of stock, securities or assets as, in accordance with the foregoing provisions, such holder may be entitled to acquire; provided, that any assumption shall not relieve the Company of its obligations hereunder.

3.5          Continuation of Terms. Upon any reorganization, consolidation, merger or transfer (and any dissolution following any such transfer) referred to in this Section 3, this Warrant shall continue in full force and effect and the terms hereof shall be applicable to the shares of Common Stock and other securities and property receivable upon the exercise of this Warrant after the consummation of such reorganization, consolidation or merger or the effective date of dissolution following any such transfer, as the case may be, and shall be binding upon the issuer of any such Common Stock or other securities, including, in the case of any such transfer, the Person acquiring all or substantially all of the properties or assets or more than 50% of the voting capital stock of the Company (whether
issued and outstanding, newly issued or from treasury or any combination thereof), whether or not such Person shall have expressly assumed the terms of this Warrant.

3.6           Minimum Adjustment of Exercise Price. If the amount of any adjustment of the Exercise Price required pursuant to this Section 3 would be less than one-tenth (1/10) of one percent (1%) of the Exercise Price in effect at the time such adjustment is otherwise so required to be made, such amount shall be carried forward and adjustment with respect thereto made at the time of and together with any subsequent adjustment which, together with such amount and any other amount or amounts so carried forward, shall aggregate at least one tenth (1/10) of one percent (1%) of such Exercise Price.

 

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3.7          Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment of the Exercise Price and number of Warrant Shares pursuant to this Section 3, this Warrant shall, without any action on the part of the Holder, be adjusted in accordance with this Section 3, and the Company, at its expense, promptly shall compute such adjustment or readjustment in accordance with the terms hereof and prepare and furnish to the Holder a certificate setting forth such adjustment or readjustment, showing in detail the facts upon which such adjustment or readjustment is based. The Company will forthwith send a copy of each such certificate to the Holder in accordance with Section 9.4 below.

4.            Registration Rights. Upon the written request of the Majority Holders, the Company shall use commercially reasonable efforts to, within 60 days, file a registration statement registering the Common Stock issuable on exercise of this Warrant, and shall use commercially reasonable efforts to cause such registration statement to remain effective until the earliest to occur of (i) the date after which all of the Warrant Shares registered thereunder shall have been sold, (ii) the second (2nd) anniversary of the effective date of the registration statement and (iii) the date on which the Holder may sell all Warrant Shares then held by the Holder without restriction under Rule 144(k) of the Securities Act of 1933, as amended (the “Securities Act”). After the expiration
of the second anniversary of the date of this Warrant, the Company shall provide instructions to its transfer agents that certificates representing the Warrant Shares shall be issued without a legend if such Warrant Shares are to be issued pursuant to a net cashless exercise/conversion pursuant to Section 2.2 hereof; provided that the Holder is not, and represents that it is not, then an “affiliate” of the Company as such term is defined under Rule 144.

5.             Notices of Record Date. Upon (a) any establishment by the Company of a record date of the holders of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend or other distribution, or right or option to acquire securities of the Company, or any other right, or (b) any capital reorganization, reclassification, recapitalization, merger or consolidation of the Company with or into any other Person, any transfer of all or substantially all the assets of the Company, or any voluntary or involuntary dissolution, liquidation or winding up of the Company, or the sale, in a single transaction, of a majority of the Company’s voting stock (whether newly issued, or from treasury, or previously issued and then
outstanding, or any combination thereof), the Company shall mail to the Holder at least ten (10) business days, or such longer period as may be required by law, prior to the record date specified therein and at least ten (10) business days prior to the date specified in clause (ii) or (iii) hereof, a notice specifying (i) the date established as the record date for the purpose of such dividend, distribution, option or right and a description of such dividend, distribution, option or right, (ii) the date on which any such reorganization, reclassification, transfer, consolidation, merger, dissolution, liquidation or winding up, or sale is expected to become effective and (iii) the date, if any, fixed as to when the holders of record of Common Stock shall be entitled to exchange their shares of Common Stock for securities or other property deliverable upon such reorganization, reclassification, transfer, consolidation, merger, dissolution, liquidation or winding up. Nothing herein shall
prohibit the Holder from exercising this Warrant during the ten (10) business day period commencing on the date of such notice.

 

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6.            Exchange of Warrant. Subject to the provisions of Section 7 hereof (if and to the extent applicable), this Warrant shall be exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for new warrants of like tenor, each registered in the name of the Holder or, subject to compliance with applicable federal and state securities laws, in the name of such other Persons as the Holder may direct (upon payment by the Holder of any applicable transfer taxes). Each of such new warrants shall be exercisable for such number of Warrant Shares as the Holder shall direct, provided that all of such new warrants shall represent, in the aggregate, the right to purchase the same number of Warrant Shares and cash, securities or other property, if any, which
may be purchased by the Holder upon exercise of this Warrant at the time of its surrender.

	
             
 	
            7.
 	
            
Transfer Provisions, etc.
 	
             

	
             
 	
            7.1
 	
            
Restrictions on Transfer.
 
					

(a)           Restrictions. The Holder, by its acceptance of this Warrant, agrees to be bound by the provisions of this Section 7.1 and acknowledges and confirms that this Warrant and any Warrant Shares issued upon exercise of this Warrant have not been registered under the Securities Act or any applicable state securities laws, and may not be sold or transferred except in compliance with and subject to the Securities Act and such state securities laws. Unless and until this Warrant and such Warrant Shares have been registered under the Securities Act and such state securities laws, the Company may require, as a condition to effecting any sale or transfer of this Warrant or such Warrant Shares on the books of the Company, an opinion of counsel reasonably satisfactory to the Company to the
effect that an exemption from registration under the Securities Act and such state securities laws is available for the proposed transfer or assignment or a certification reasonably satisfactory to the counsel of the Company in its professional determination from the transferee that it is an “accredited investor” as defined under the Securities Act and regulations promulgated thereunder. Any purported sale or transfer of this Warrant and/or such Warrant Shares shall be null and void unless made in compliance with the conditions set forth in this Section 7.1. Except as otherwise provided in Section 7.1(b), (a) this Warrant and any warrant of the Company issued in exchange of or replacement for this Warrant shall be stamped or otherwise imprinted with a legend in substantially the form set forth on the cover of this Warrant, (b) each certificate for Warrant Shares issued upon the exercise of this Warrant and each certificate issued upon the transfer of any such Warrant Shares
shall be stamped or otherwise imprinted with a legend substantially to the same effect.

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(b)        Termination of Restrictions. The restrictions imposed by Section 7.1(a) upon the transferability of this Warrant and the Warrant Shares shall terminate: (a) when and so long as this Warrant or any such Warrant Shares shall have been effectively registered under the Securities Act and transferred in compliance therewith; or (b) when the Company shall have received an opinion of counsel reasonably satisfactory to it that this Warrant or such Warrant Shares may be transferred without registration thereof under the Securities Act; provided, however, that if the Warrant or the Warrant Shares have been held (both legally and beneficially) by the Holder for at least one (1) year and is proposed to be sold in compliance with Rule 144 under the Securities Act, no such opinion of counsel shall be required. Whenever
the legend requirements imposed by Section 7.1(a) shall terminate as to this Warrant or the Warrant Shares, the Holder of this Warrant or any Warrant Shares shall be entitled to receive from the Company, upon request, at the Company’s expense, a new warrant or a new certificate representing the Warrant Shares, as the case may be, not bearing the restrictive legend described in Section 7.1(a).

(c)   Compliance with Securities Laws. The Holder, by acceptance hereof, represents to the Company that this Warrant and any Warrant Shares purchased upon exercise of this Warrant are being acquired solely for the Holder’s own account and not as a nominee for any other party, and for investment, and that the Holder will not offer, sell or otherwise dispose of this Warrant or any such Warrant Shares except under circumstances that will not result in a violation of the Securities Act or any applicable state securities laws. The Holder has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment in this Warrant and any Warrant Shares purchased on exercise or conversion hereof and has the ability to bear the
economic risks of such investment. The Holder certifies and represents to the Company that it is an “accredited investor” as defined in Rule 501 of Regulation D promulgated under the Securities Act and, if not an individual, was not organized for the purpose of acquiring the Warrants.

(d)     Mechanics of Transfer. 

          (i)    
Subject to compliance with the other provisions of this Section 7.1, any
transfer of this Warrant, in whole or in part, shall occur upon surrender of
this Warrant at the principal executive offices of the Company, together with a
duly executed form of assignment, in the form attached hereto and funds
sufficient to pay any transfer taxes payable upon the making of such transfer
and, if required, an opinion of counsel reasonably acceptable to counsel of the
Company in its professional determination concerning the compliance of such
transfer with the Securities Act and applicable state securities laws.

         ii)     In the event of any transfer of all or any portion of this Warrant in accordance with Section 7.1, the Company shall issue (i) a new warrant of like tenor to the transferee, representing the right to purchase the number of Warrant Shares, and cash, securities or other property, if any, which were purchasable by the Holder of the transferred portion of this Warrant at the time of said transfer, and (ii) a new warrant of like tenor to the Holder, representing the right to purchase the number of Warrant Shares, if any, and cash, securities or other property, if any, purchasable by the Holder of the un-transferred portion of this Warrant. Until this Warrant or any portion thereof is transferred on the books of the Company, the Company may treat the Holder as the absolute holder of this Warrant and all right, title and interest therein for all purposes, notwithstanding any notice to
the contrary.

(e)     No Restrictions on Transfer. Subject to compliance with applicable federal and state securities laws and the foregoing provisions of this Section 7.1, this Warrant and any portion hereof, the Warrant Shares and the rights hereunder may be transferred by the Holder in its sole discretion at any time and to any Person or Persons, including without limitation Affiliates and affiliated groups of such Holder, without the consent of the Company.

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                              7.2    
Warrant Register. The Company shall keep at its principal office a register for the registration, and registration of transfers, of the Warrants. The name and address of each Holder of one or more of the Warrants, each transfer thereof and the name and address of each transferee of one or more of the Warrants shall be registered in such register. The Company shall give to any Holder of a Warrant promptly upon request therefor, a complete and correct copy of the names and addresses of all registered Holders of the Warrants.

8.            Lost, Stolen or Destroyed Warrant. Upon receipt by the Company of evidence satisfactory to it of loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of a customary affidavit of the Holder and customary unsecured indemnity agreement, or, in the case of mutilation, upon surrender of this Warrant, the Company at its expense will execute and deliver, or will instruct its transfer agent to execute and deliver, a new Warrant of like tenor and date and representing the same rights represented by such lost, stolen, destroyed or mutilated warrant and any such lost, stolen, mutilated or destroyed Warrant thereupon shall become void.

	
             
 	
            9.
 	
            
General.
 

9.1           Authorized Shares, Reservation of Warrant Shares for Issuance. At all times while this Warrant is outstanding, the Company shall maintain its corporate authority to issue, and shall have authorized and reserved for issuance upon exercise of this Warrant, such number of shares of Common Stock, and any other capital stock or other securities as shall be sufficient to perform its obligations under this Warrant (after giving effect to any and all adjustments to the number and kind of Warrant Shares purchasable upon exercise of this Warrant).

9.2           No Impairment. The Company will not, by amendment of its Certificate of Incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issuance or sale of securities, sale or other transfer of any of its assets or properties, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the Holder hereunder against impairment. Without limiting the generality of the foregoing, the Company (a) will not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant
above the amount payable therefor on such exercise, and (b) will take all action that may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant.

 

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9.3           No Rights as Stockholder. Except as provided herein (including Sections 3 and 5), the Holder shall not be entitled to vote or to receive dividends or to be deemed the holder of Common Stock that may at any time be issuable upon exercise of this Warrant for any purpose whatsoever, nor shall anything contained herein be construed to confer upon the Holder any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance or reclassification of stock, change of par value or change of stock to no par value, consolidation, merger or conveyance or otherwise), or to receive notice of meetings (except to the extent otherwise provided in this Warrant), or to receive dividends or subscription rights, until the Holder shall have exercised this Warrant and been issued Warrant Shares in accordance with the provisions hereof and continues to hold Warrant Shares.

9.4           Notices. Any notices, reports or other correspondence (hereinafter collectively referred to as “correspondence”) required or permitted to be given hereunder shall be sent by postage prepaid first class mail, overnight courier or facsimile transmission, or delivered by hand to the party to whom such correspondence is required or permitted to be given hereunder. The date of giving any notice shall be the date of its actual receipt.

	
             
 	
            (a)
 	
            All correspondence to the Company shall be addressed as follows:
 

 

Wilson Holdings, Inc.

2700 Via Fortuna, Suite 400

Austin, Texas 78746

Attn:  Chief Financial Officer

Facsimile: (512) 732-0959

 

with a copy to:

 

Andrews Kurth LLP

111 Congress Avenue, Suite 1700

Austin, Texas 78701

Attn:  Carmelo Gordian

Facsimile: (512) 320-9292

(b)           All correspondence to the Holder shall be addressed to the Holder at its address appearing in the books maintained by the Company.

10.           Amendment and Waiver. No failure or delay of the Holder in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Holder are cumulative and not exclusive of any rights or remedies which it would otherwise have. Any term of this Warrant may be amended or waived upon the written consent of the Company and the Majority Holders, which amendment or waiver will be effective on all holders of this Warrant or any warrant issued on transfer hereof.

11.          Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of New York, as such laws are applied to contracts entered into and wholly to be performed within the State of New York and without giving effect to any principles of conflicts or choice of law that would result in the application of the laws of any other jurisdiction.

 

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12.          Covenants To Bind Successor and Assigns. All covenants, stipulations, promises and agreements in this Warrant contained by or on behalf of the Company shall bind its successors and assigns, whether so expressed or not.

13.           Severability. In case any one or more of the provisions contained in this Warrant shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. The parties shall endeavor in good faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

14.          Construction. The definitions of this Warrant shall apply equally to both the singular and the plural forms of the terms defined. Wherever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The section and paragraph headings used herein are for convenience of reference only, are not part of this Warrant and are not to affect the construction of or be taken into consideration in interpreting this Warrant.

15.          Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive the defense in any action for specific performance that a remedy at law would be adequate. In any action or proceeding brought to enforce any provision of this Warrant or where any provision hereof is validly asserted as a defense, the successful party to such action or proceeding shall be entitled to recover reasonable attorneys’ fees in addition to any other available remedy.

[SIGNATURE PAGE TO FOLLOW]

 

12

 

               IN WITNESS WHEREOF, the Company has executed this Common Stock Purchase Warrant as of the date first written above.

COMPANY:

WILSON HOLDINGS, INC.

By:
_______________________________

Name:
_____________________________

Title:
______________________________

 

 

 

Exhibit A

NOTICE AND

SUBSCRIPTION

	
            To:
 	
            Wilson Holdings, Inc.

2700 Via Fortuna, Suite 400

Austin, Texas 78746
 

The undersigned hereby irrevocably elects to exercise the right of purchase represented by the attached Warrant for, and to exercise thereunder, shares of Common Stock, of WILSON HOLDINGS, INC., a Nevada corporation (the “Company”), and tenders herewith payment of $______________, representing the aggregate purchase price for such shares based on the price per share provided for in such Warrant. Such payment is being made in accordance with Section 2.2(a) of the attached Warrant.

The undersigned hereby represents and warrants as follows:

(a)           the undersigned is acquiring such shares of Common Stock for its own account for investment and not for resale or with a view to distribution thereof in violation of the Securities Act of 1933, as amended, and the regulations promulgated thereunder (the “Securities Act”); and

(b)           the undersigned is an “accredited investor” as defined in Rule 501 of Regulation D promulgated under the Securities Act and was not organized for the purpose of acquiring the Warrant or such shares of Common Stock. The undersigned’s financial condition is such that it is able to bear the risk of holding such securities for an indefinite period of time and the risk of loss of its entire investment. The undersigned has sufficient knowledge and experience in investing in companies similar to the Company so as to be able to evaluate the risks and merits of its investment in the Company.

Please issue a certificate or certificates for such shares of Common Stock in the following name or names and denominations and deliver such certificate or certificates to the person or persons listed below at their respective address set forth below:

 

 

If said number of shares of Common Stock shall not be all the shares of Common Stock issuable upon exercise of the attached Warrant, a new Warrant is to be issued in the name of the

undersigned for the remaining balance of such shares of Common Stock less any fraction of a share of Common Stock paid in cash pursuant to Section 2.2(a) of the attached warrant.

 

 

	
            Dated:
 	
            
_____________, ______
 	
             	
            _____________________________

Signature

The undersigned Wilson Holdings, Inc. hereby acknowledges receipt of this Notice and Subscription and authorizes issuance of the shares of Common Stock described above.

Wilson Holdings, Inc.

By:
____________________________

Title: 
__________________________

Date: 
__________________________

 

 

 

FORM OF ASSIGNMENT

(To be executed upon assignment of Warrant)

 

For value received,                                         hereby sells, assigns and transfers unto                                the attached Warrant [    % of the attached Warrant], together with all right, title and interest therein, and does hereby irrevocably constitute and appoint                                     attorney to transfer said Warrant [said percentage of

 said Warrant] on the books of WILSON HOLDINGS, INC., a Nevada corporation, with full power of substitution in the premises.

If not all of the attached Warrant is to be so transferred, a new Warrant is to be issued in the name of the undersigned for the balance of said Warrant.

The undersigned hereby agrees that it will not sell, assign, or transfer the right, title and interest in and to the Warrant unless applicable federal and state securities laws have been complied with.

 

	
            Dated:
 	
            
_____________, ______
 	
             	
            _____________________________

Signature

 

 

 

 

FORM OF CONVERSION NOTICE

To Wilson Holdings, Inc.:

 

The undersigned registered holder of the attached Warrant hereby irrevocably converts such Warrants with respect to                          (1) Warrant Shares which such holder would be entitled to receive upon the exercise hereof, and requests that the certificates for such shares be issued in the name of, and delivered to                                     , whose address is as follows:

 

 

Such conversion is being made in accordance with Section 2.2(b) of the attached Warrant. The undersigned hereby represents and warrants as follows:

(a)       the undersigned is acquiring such shares of Common Stock for its own account for investment and not for resale or with a view to distribution thereof in violation of the Securities Act; and

(b)       the undersigned is an “accredited investor” as defined in Rule 501 of Regulation D promulgated under the Securities Act and was not organized for the purpose of acquiring the Warrant or such shares of Common Stock. The undersigned’s financial condition is such that it is able to bear the risk of holding such securities for an indefinite period of time and the risk of loss of its entire investment. The undersigned has sufficient knowledge and experience in investing in companies similar to the Company so as to be able to evaluate the risks and merits of its investment in the Company.

 

	
            Dated:
 	
             	
             	
            __________________________________
	
             
	
             
	
             
	
            (Signature must conform in all respects to  name of holder as specified on the face of Warrant)

 

	
             
 	
             
	
             
	
            
__________________________________

	
             
	
             
	
             
	
             (Street Address)

	
             
 	
             
	
             
	
            
__________________________________

	
             	
             	
             	
            (City)        
(State)         
(Zip Code)
 

___________________

(1)       Insert here the number of Warrant Shares into which the Warrant is convertible (or, in the case of a partial conversion, the number of Warrant Shares as to which the Warrants evidenced by this Warrant Certificate are then being converted). In the case of a partial conversion, a new Warrant Certificate will be issued and delivered, representing the unconverted portion of the Warrants, to the holder surrendering this Warrant Certificate.

               

 

 

The undersigned Wilson Holdings, Inc. hereby acknowledges receipt of this Conversion Notice and authorizes issuance of the shares of Common Stock described above.

Wilson Holdings, Inc.

By:
____________________________

Title:
___________________________

Date:
___________________________Exhibit 10.1

Exhibit 10.1

SEPARATION AGREEMENT AND GENERAL RELEASE

This Separation Agreement and General Release (hereinafter “Agreement”) is made and entered into by and between KENNETH T. NEILSON (hereinafter “Employee”) and HUDSON UNITED BANCORP (“Hudson United”) and HUDSON UNITED BANK (“Hudson Bank”) (Hudson United and Hudson Bank are hereinafter collectively referred to as the “Bank”) as of December 21, 2005.

WITNESSETH:

WHEREAS, Employee has been employed by the Bank since on or about October 13, 1983; and

WHEREAS, Hudson United will be merged (the “Merger”) with and into TD BANKNORTH INC. (“TD Banknorth”) pursuant to an Agreement and Plan of Merger among Hudson United, TD Banknorth and, solely with respect to Article X, THE TORONTO-DOMINION BANK (“TD”), dated as of July 11, 2005 (the “Merger Agreement”), with the Merger scheduled to be effective on or about January 31, 2006 (the “Merger Effective Date”); and

WHEREAS, immediately following consummation of the Merger, Hudson Bank will be merged with and into TD Banknorth, NA; and

WHEREAS, Employee and Bank have agreed that Employee’s employment and position as an officer of the Bank and any affiliates will terminate effective as of the Merger Effective Date (“Termination Date”); and

WHEREAS, Employee and the Bank wish to enter into this Agreement to provide for certain payments to Employee and to address certain rights and obligations of the parties before and following the Termination Date;

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, it is agreed as follows:

1.             The Bank shall pay to Employee salary continuation at Employee’s current base rate of pay continuing through to and including the Termination Date by means of a pre-paid sum of $62,500.00 paid on or before December 31, 2005 for all services through the Termination Date. This payment shall be made in accordance with the Bank’s normal payroll practices and shall be subject to all applicable withholdings and deductions. The period from the date hereof through the Termination Date shall be considered a transition period and shall be known as the “Notification Period.”

2.             Upon receipt of a copy of this Agreement signed by Employee, and upon expiration of the revocation period set forth in paragraph 12 below and after the Termination Date terminating Employee’s employment, the Bank agrees to provide Employee with the following consideration:

 

(a)           Subject to the parties’ acknowledgement that Employee’s employment will terminate as of the Termination Date, and in consideration for the two-year non-competition provision in paragraph 13 below, the Bank shall pay to Employee a lump sum payment equal to $1,312,500, less any lawful deductions required by law. Such payment will be made on the eighth day after the date the Bank receives this Agreement signed by Employee (such date being the “Effective Date”). It is understood and agreed that this payment will not be included in the calculation of any of Employee’s benefits, including, but not limited to, any pension, SERP or 401(k) benefits.

(b)           Commencing as of the day following the Termination Date, Employee shall be entitled to continue to receive medical coverage for the number of weeks for which severance is being provided, on the same terms as if Employee had continued to be an employee for such period. Thereafter, Employee shall be entitled to continue such medical coverage in accordance with the continuation requirements of the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) at Employee’s own expense and pursuant to the requirements of COBRA. In addition, commencing as of the day following the Termination Date, Employee shall be entitled to continue dental coverage in accordance with the continuation requirements of COBRA at Employee’s own expense and pursuant to the requirements of COBRA. Employee’s coverage under all other
employee benefit programs currently provided by the Bank, including but not limited to the Bank’s pension and 401(k) plans, the 401(k) loan program, and Long Term Disability, shall cease as of the Termination Date. Notwithstanding the severance payments set forth above, Employee shall be ineligible for any annual or year-end bonus, incentive, or other additional rewards of any kind offered or distributed by the Bank to its employees for the year 2006.

(c)           Employee shall be deemed to be 100% vested in his or her Matching Contribution Account under the Hudson United Bancorp and Subsidiaries Savings and Investment Plan.

(d)           Employee shall be entitled to receive benefits under Hudson United’s Supplemental Employees’ Retirement Plan at the times and in the amounts provided by the terms of such plan. Employee shall also be entitled to health benefits until Medicare eligibility for himself and his spouse as provided in the letter to him dated August 15, 2005.

3.             IN EXCHANGE FOR THE CONSIDERATION SET FORTH IN THIS AGREEMENT, WHICH EMPLOYEE ACKNOWLEDGES IS IN ADDITION TO THAT WHICH EMPLOYEE WOULD OTHERWISE BE ENTITLED TO RECEIVE, EMPLOYEE HEREBY KNOWINGLY AND VOLUNTARILY RELEASES AND DISCHARGES HUDSON UNITED AND HUDSON BANK, THEIR PREDECESSORS, SUCCESSORS, PARENT CORPORATIONS, SUBSIDIARIES, OR AFFILIATES, AND EACH OF THEIR EMPLOYEES, OFFICERS, DIRECTORS, ATTORNEYS, BENEFIT COMMITTEES, TRUSTEES, FIDUCIARIES, PLANS, AND TRUSTS, AND THEIR RESPECTIVE HEIRS, EXECUTORS, ADMINISTRATORS, SUCCESSORS AND ASSIGNS (HEREINAFTER COLLECTIVELY REFERRED TO AS THE “RELEASEES”) FROM ANY AND ALL CLAIMS, ACTIONS, DEMANDS, CAUSES OF ACTION, DAMAGES, EXPENSES, ATTORNEYS’ FEES AND LIABILITIES OF WHATEVER KIND OR NATURE IN LAW, EQUITY OR OTHERWISE, WHETHER ACCRUED, ABSOLUTE,
CONTINGENT, UNLIQUIDATED OR OTHERWISE AND WHETHER NOW KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, WHICH EMPLOYEE MAY HAVE OR CLAIM TO HAVE AGAINST THE BANK OR ANY OF THE RELEASEES RELATING TO EMPLOYEE’S EMPLOYMENT OR THE TERMINATION OF EMPLOYEE ‘S EMPLOYMENT WITH THE BANK OR ANY OF THE RELEASES. THE CLAIMS RELEASED INCLUDE, BUT ARE NOT LIMITED TO:

 

 

(a)           all claims for any compensation whatsoever, including but not limited to back wages, front pay, incentive and other bonuses, stock awards, car allowance, moving expenses, fringe benefits, insurance benefits, vacation time or pay, reinstatement, retroactive seniority, severance pay, or any other form of economic loss;

(b)           all claims under any federal, state or local statute, provision, order or regulation, including but not limited to any claims arising under the New Jersey Law Against Discrimination, the New Jersey Conscientious Employee Protection Act, the New Jersey Family Leave Act, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Sarbanes-Oxley Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act, the Fair Labor Standards Act, the National Labor Relations Act, and any similar or analogous federal, state or local statute, order or regulation;

(c)           all claims arising under the United States, New Jersey or any other applicable state Constitutions;

(d)           all claims arising under any Executive Order or derived from or based upon any state or federal regulations,

(e)           all common law claims including claims for wrongful discharge, public policy claims, retaliation claims, claims for breach of any express or implied contract, claims for breach of an implied covenant of good faith and fair dealing, intentional infliction of emotional distress, defamation, conspiracy, loss of consortium, tortuous interference with contract or prospective economic advantage, promissory estoppel and negligence;

(f)            all claims for personal injury, including physical injury, mental anguish, emotional distress, pain and suffering, embarrassment, humiliation, damage to name or reputation, liquidated damages, and punitive damages;

	
             
 	
            (g)
 	
            all claims for costs and attorneys’ fees; and
 

(h)           any other claims based upon federal, state or local civil rights laws, whistle-blower or any other local, state or federal laws, regulations or ordinances and any public policy, contract (oral, written or implied), tort constitution or common law.

4.            Employee represents that Employee has no charge, claim or lawsuit of any kind pending against any of the Releasees, and Employee covenants and agrees not to file a lawsuit or initiate any action against any of the Releasees seeking any personal recovery or personal injunctive relief with respect to any matter arising out of or relating in any way to Employee’s employment with the Bank or any of the Releasees and/or the termination of that employment. Nothing in this paragraph shall prohibit Employee from bringing any action to enforce the terms of this Agreement.

 

5.             It is expressly understood and agreed that this Agreement (a) does not waive or release any rights or claims which may arise after the date on which the Agreement is signed by Employee, except as set forth herein; (b) does not waive or release any vested benefit possessed by Employee as a result of Employee’s employment with the Bank, including but not limited to vested rights with respect to any pension benefits, 401(k) benefits, stock options or restricted stock awards, and medical benefits; and (c) does not waive or release any rights for indemnification existing on the date hereof or which Employee may possess pursuant to Section 7.7 of the Merger Agreement for indemnification.

6.            Employee acknowledges and agrees that during the Notification Period and up to and including the Termination Date, Employee shall be and shall remain an active employee of the Bank. As an active employee of the Bank, Employee shall be required to perform Employee’s duties and responsibilities in accordance with, and at a level that befits, the requirements of Employee’s position and experience.

7.            Employee further agrees to keep confidential and not use or disclose to anyone any information which is the confidential and proprietary information of the Bank or any of its successors (hereinafter the “Confidential Information”. The Confidential Information includes, but is not limited to, customer lists, financial information, marketing data, business and operational plans and systems and other records, reports, proposals, books, memoranda, data, letters or any writing, documents or computerized records which relate to any of the Bank’s operations, business, assets, personnel matters, or any other information which the Bank has provided to Employee in confidence. Notwithstanding the foregoing, Confidential Information does not include information which becomes available in the public domain, including
information which becomes available in the public domain by virtue of direct or indirect disclosure by the Bank (unless it has become public due to Employee’s breach of this paragraph), or which Employee may be required to disclose by law or by a court or other governmental agency of competent jurisdiction, or which was not provided to or received by Employee during the course of Employee’s employment. It shall not be considered a breach of this paragraph for Employee, at any time prior to the Termination Date, to continue to use or disclose Confidential Information as permitted in connection with the performance of Employee’s duties for the Bank.

8.             The Bank hereby releases and discharges Employee from any and all known claims, liabilities, loans, expense obligations, demands, and causes of action, which the Bank or any of its successors may have or claim to have against Employee arising from any lawful conduct undertaken by Employee within the scope of Employee’s employment as an officer or employee of the Bank. Nothing in this paragraph releases Employee from any obligations under this Agreement, or from any claims, liabilities, demands, or causes of action which may arise after the date of this Agreement, or from any claims, liabilities, demands or causes of action which the Bank or any of its successors may have or claim to have against Employee arising from any conduct undertaken by Employee within the scope of Employee’s employment or as an
officer or employee of the Bank where a court of competent jurisdiction deems such conduct to be unlawful, recklessness or willful misconduct, or from any credit or loan obligations of Employee to the Bank.

9.            Employee and the Bank mutually agree not to make any statements or issue any communications, whether written or oral, that disparage, criticize or otherwise reflect adversely upon one another, except if testifying truthfully under oath pursuant to a lawful court order or subpoena or otherwise responding to or providing disclosures to regulatory authorities as required by law.

 

10.           This Agreement shall not be construed as an admission or acknowledgment of any wrongdoing or liability by the Bank with respect to any aspect of Employee’s employment or the termination of that employment. Employee agrees that neither this Agreement nor the furnishing of the consideration for this Agreement shall be deemed or construed at any time for any purpose as an admission by the Bank or any of the Releasees of any liability or unlawful conduct of any kind.

11.          Employee is hereby advised that Employee should consult with an attorney prior to signing this Agreement. Employee represents to the Bank that Employee has had the opportunity to discuss this Agreement with whomever Employee wished, including an attorney of Employee’s own choosing and at Employee’s own cost. Employee also states that Employee has had the opportunity to read, review and consider all of the provisions of this Agreement; that Employee understands its provisions and its final and binding effect upon Employee; and that Employee is accepting the consideration offered to Employee and entering into this Agreement freely, voluntarily, and without duress or coercion.

12.          Employee understands that Employee has twenty-one (21) days within which to consider this Agreement before signing it and returning it to the Bank and that, after signing the Agreement, Employee may revoke Employee’s signature within seven (7) calendar days of the Execution Date by providing written notification of Employee’s decision to revoke Employee’s signature to Timothy Matteson, General Counsel, Hudson United Bank, 1000 MacArthur Blvd., Mahwah, New Jersey 07430. Such revocation must be received on or before the seventh day after the Execution Date.

13.           (a) Employee agrees that during the 24-month period immediately following the Termination Date (the “Non-Competition Period”), except for his Consulting Agreement with TD Banknorth, Inc., dated July 11, 2005, Employee will not, directly or indirectly, (a) become a director, officer, employee, shareholder, principal, agent, consultant or independent contractor of any commercial bank, savings bank or savings association insured by the Federal Deposit Insurance Corporation, or of any holding company of any such insured institution, located in any county in the States of New Jersey, New York, Connecticut or Pennsylvania in which Hudson United or any of its subsidiaries or affiliates has an office as of the Termination Date (in each case, a “Competing Business”), provided, however, that this provision shall not prohibit Employee from owning bonds,
non-voting preferred stock or up to five percent (5%) of the outstanding common stock of any Competing Business if such common stock is publicly traded, (b) solicit or induce, or cause others to solicit or induce, any employee of TD Banknorth or any of Its subsidiaries to leave the employment of such entities, or (c) solicit (whether by mail, telephone, personal meeting or any other means, excluding general solicitations of the public that are not based in whole or in part on any list of customers of the Bank or any of its successors) any customer of TD Banknorth or any of its subsidiaries to transact business with any other entity, whether or not a Competing Business, or to reduce or refrain from doing any business with TD Banknorth or any of its subsidiaries, or interfere with or damage (or attempt to interfere with or damage) any relationship between TD Banknorth or its subsidiaries and any such customers. Employee acknowledges and agrees that all references to TD Banknorth in this
subparagraph 13(a) include the Bank.

 

(b)           Employee acknowledges that TD Banknorth would not have entered into the Merger Agreement or intend to consummate the Merger unless Employee had, among other things, entered into this Agreement. Any breach of paragraph 13 of this Agreement will result in irreparable damage to TD Banknorth for which TD Banknorth will not have an adequate remedy at law. In addition to any other remedies and damages available to TD Banknorth, Employee further acknowledges that TD Banknorth shall be entitled to injunctive relief hereunder to enjoin any breach of paragraph 13 of this Agreement, and the parties hereby consent to any injunction issued in favor of TD Banknorth by any court of competent jurisdiction, without prejudice to any other right or remedy to which TD Banknorth may be entitled. Employee represents and acknowledges that, in light
of his experience and capabilities, Employee can obtain employment with other than a Competing Business or in a business engaged in other lines and/or of a different nature than those engaged in by TD Banknorth or its subsidiaries or affiliates, and that the enforcement of a remedy by way of injunction will not prevent Employee from earning a livelihood. In the event of a breach of this Agreement by Employee, Employee acknowledges that in addition to or in lieu of TD Banknorth seeking injunctive relief, TD Banknorth may also seek to recoup any or all amounts paid by the Bank to Employee pursuant to paragraph 2(a) hereof. Each of the remedies available to TD Banknorth in the event of a breach by Employee shall be cumulative and not mutually exclusive.

14.          Except for issues or matters as to which federal law is applicable, this Agreement shall be construed in accordance with and governed by the laws of the State of New Jersey without regard to its conflict of laws provision.

15.           In the event either party breaches any provision of this Agreement, Employee and the Bank affirm that either may institute an action to specifically enforce any term or terms of this Agreement, in addition to any other legal or equitable relief permitted by law.

16.           The parties hereto agree that the provisions of this Agreement shall be enforced to the fullest extent permissible under all applicable laws and public policies, but that the unenforceability or the modification to conform with such laws or public policies of any provision hereof shall not render unenforceable or impair the remainder of the Agreement. The covenants in paragraph 13 of this Agreement with respect to the states listed shall be deemed to be separate covenants with respect to each state listed, and should any court of competent jurisdiction conclude or find that this Agreement or any portion is not enforceable with respect to any of the states listed, such conclusion or finding shall in no way render invalid or unenforceable the covenants herein with respect to any other state. Accordingly, if any provision
shall be determined to be invalid or unenforceable either in whole or in part, this Agreement shall be deemed amended to delete or modify as necessary the invalid or unenforceable provisions to alter the balance of this Agreement in order to render the same valid and enforceable.

17.           This Agreement shall be binding upon any and all successors and assigns of any of the parties to this Agreement, including TD Banknorth as the successor to Hudson United and TD Banknorth, NA as the successor to Hudson Bank. As successors, TD Banknorth and TD Banknorth, NA shall have all the rights, benefits and obligations of Hudson United and Hudson Bank hereunder.

18.           This Agreement sets forth the entire agreement between the parties hereto, and fully supersedes any prior agreements or understandings between the parties. Employee acknowledges that Employee has not relied on any representations, promises, or agreements of any kind made to Employee in connection with Employee’s decision to enter into this Agreement, except for those set forth in this Agreement.

 

 

IN WITNESS WHEREOF, the parties hereto knowingly and voluntarily executed this Agreement and General Release as of the date set forth below:

HUDSON UNITED BANCORP and

HUDSON UNITED BANK

 

	By:	/s/
Peter Visaggio 	 	/s/ Kenneth T.
Neilson
	Name:	
Peter Visaggio 	 	KENNETH T. NEILSON, Employee
	Title:	First Senior Vice President	 	 
	 	 	 	 
	DATED: December 21, 2005	 	DATED: December 21, 2005

									

THIS AGREEMENT IS NOT BINDING ON EITHER PARTY UNTIL SIGNED BY SUCH PARTY, AND THIS REQUIREMENT MAY NOT BE WAIVED BY EITHER PARTY.

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