Document:

ex-10.7

 

 
 

 SUBSCRIPTION APPLICATION
 

 (for Accredited Investors Only)
 

 This Subscription Application is being delivered to you in connection with your investment in SPINDLE, INC., a Nevada corporation (the “Company”). The Company is conducting a private placement offering (the “Offering”) in accordance with that certain Private Placement Memorandum, dated November 17, 2015 (the “Memorandum”), of up to 7,407,408 units (each, a “Unit” and collectively, the “Units”), or $1,000,000.00 which shall consist of one share (each, a “Share” and collectively, the “Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”); provided, however, that the number of Units offered may be increased to 11,111,112 Units, or $1,500,000,  by authorization of the Company’s board of directors, in its sole discretion, without further notice or consent to the prospective investors. All funds received in the Offering, upon fulfillment of the conditions precedent set forth herein, shall be delivered to the Company, and thereafter the Units subscribed for as further described below shall be delivered. The Company may continue to offer and sell the Units and conduct additional closings for the sale of additional Units after the initial closing until the termination of the Offering.
 

 	 	 	
	 Name of Subscriber
	  
	  

	  
	  
	  

	 Name of Co-Subscriber, if any
	  
	  

	  
	  
	  

	 Address of Subscriber (1)
	  
	  

	  
	  
	  

	 Address of Co-Subscriber (if different) (1)
	  
	  

	  
	  
	  

	 Aggregate number of Units subscribed to purchase (2)
	  
	  

	  
	  
	  

	 Check enclosed (or wire transfer) in the amount of
	  
	 $

 

 (1)
 Permanent legal residence and domicile (other than Post Office Box) if the Subscriber is an individual, or permanent principal legal executive offices and place of business (other than Post Office Box) if the Subscriber is an entity.
 

 (2)
 The price per Unit is $0.135
 

 

 

 

 

 

 

 

 

 
 

 PERSONAL AND CONFIDENTIAL
 

 The undersigned (the “Subscriber”) hereby makes an application to purchase from the Company, the number of Units set forth above, pursuant to a Securities Purchase Agreement substantially in the form annexed hereto as Exhibit A (the “Agreement”).  The Subscriber understands and agrees that this Subscription Application to purchase the Units is binding and irrevocable on the Subscriber’s part, and that acceptance by the Company shall be in its sole discretion and otherwise in accordance with the terms set forth in this Subscription Application and the Agreement (the Agreement, together with the exhibits, schedules and attachments thereto, this Subscription Application, and the Memorandum are sometimes referred to collectively herein as the “Offering Materials”).
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 [Subscriber Questionnaire Follows]
 

 

 

 

 

 

 

 

 

 

 

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 CONFIDENTIAL
 

 
 1. CONFIDENTIAL SUBSCRIBER INFORMATION
 

 _________________________________________________________________________________
 Name of Subscriber
 

 _________________________________________________________________________________
 If Subscriber is an Entity Provide Name                     Year Formed               State of Formation
 

 _________________________________________________________________________________
 Street Address                                                  City                       State                            Zip
 

 _________________________________________________________________________________
 Subscriber SS# or EIN/TIN                 Work Phone Number                        Home Phone Number
 

 _________________________________________________________________________________
 Subscriber’s Age                                                                    Date of Birth
 

 _________________________________________________________________________________
 Name in which the Shares and the Warrants will be held (check one below)
 

 [  ] Individually   [  ] A married man(woman) as his(her) separate property    [  ] Community property
 [  ] JTWROS    [  ] Tenants in common    [  ] Other (Describe):  ______________________________
 

 _________________________________________________________________________________
 Aggregate Number of Units                                                             Amount Invested ($)
 

 _________________________________________________________________________________
 Subscriber’s Signature                                                                                    Date
 

 2. SUBSCRIBER’S ACCREDITED STATUS
 

 (a)
 Accredited Investor (Regulation D).  The Subscriber is an “Accredited Investor” as that term is defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”), as follows:
 

 (b)
 Individuals. (Check all that apply) 
 

 [  ]  The Subscriber’s individual net worth* or combined net worth* with his or her spouse, excluding the net value of such person’s or married couple’s primary residence, exceeds $1,000,000;
 

 [  ]   The Subscriber’s individual income,** exclusive of any income attributable to his or her spouse, was in excess of $200,000 for the two most recent calendar years preceding the calendar year of this Subscription Application, and the Subscriber reasonably expects an income,** exclusive of any income attributable to his or her spouse, in excess of $200,000 in the current calendar year; and/or the Subscriber’s combined income** with his or her spouse was in excess of $300,000 for the two most recent calendar years preceding the calendar year of this Subscription Application and the Subscriber and his or her spouse reasonably expect a combined income** in excess of $300,000 in the current calendar year.
 

 * For purposes of this Subparagraph, the term “net worth” means the excess of total value over total liabilities.
 ** The Subscriber may determine income by adding to his, her or its adjusted gross income any amounts attributable to tax exempt income received, losses claimed as a limited partner in any limited partnership,   deductions or claims for depletion, contributions to an IRA or Keogh retirement plan, alimony payments and any amount by which income from long-term capital gains has been reduced in arriving at adjusted gross income.
 

 

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 (c)
 Entities. (Check all that apply) 
 

 [  ]  Entity with Value Exceeding $5 Million.  The Subscriber is a corporation, partnership (general or limited), limited liability company, limited liability partnership or Massachusetts or similar business trust which: (1) was not formed for the specific purpose of acquiring the Securities, and (2) has total assets in excess of $5,000,000.
 

 [  ]  Entity Comprised of Accredited Investors.  The Subscriber is a corporation, partnership (general or limited), limited liability company, limited liability partnership or Massachusetts or similar business trust in which all of the Subscriber’s equity owners are Accredited Investors.
 

 [  ]  Revocable Trust.  The Subscriber is a revocable trust (also commonly known as a family or living trust) established to facilitate the distribution of the estate of the settlors (grantors): (1) which may be revoked or amended at any time by the settlors (grantors); (2) which passes all tax benefits of investments made by such trust through to the settlors (grantors) individually; and (3) in which all of the settlors (grantors) are Accredited Investors.
 

 [  ]  Trust Whose Assets Exceed $5 Million.  The Subscriber is a trust that has total assets in excess of $5,000,000, and the person making the investment decision on behalf of the trust has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Securities.
 

 [  ]  Financial Institution as Trustee.  The Subscriber is a financial institution which: (1) is a bank, savings and loan association, or other regulated financial institution; (2) is acting in its fiduciary capacity as trustee; and (3) is subscribing for the purchase of the Securities on behalf of the subscribing trust.
 

 [  ]  Employee Benefit Plan (including Keogh Plan) With Self-Directed Investments and Segregated Accounts.  The Subscriber is an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and: (1) such plan is self-directed and provides for segregated accounts; (2) the investment decision to purchase the Securities is being made by a plan participant who is an Accredited Investor; and (3) the investment in the Securities is being made solely on behalf of such Accredited Investor.
 

 [  ]  Employee Benefit Plan (including Keogh Plan) With Financial Institution As Trustee.  The Subscriber is an employee benefit plan within the meaning of ERISA, and the decision to invest in the Securities was made by a plan fiduciary (as defined in Section 3(21) of ERISA), which is either a bank, savings and loan association, insurance company, or registered investment adviser.
 

 [  ]  Employee Benefit Plan (including Keogh Plan) With Assets Exceeding $5 Million.  The Subscriber is an employee benefit plan within the meaning of ERISA and has total assets in excess of $5,000,000.
 

 [  ]  Tax Exempt 501(c)(3) Organization.  The Subscriber is an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, which organization was not formed for the specific purpose of acquiring the Securities, and which organization has total assets in excess of $5,000,000.
 

 [  ]  Bank.  The Subscriber is a bank as defined in Section 3(a)(2) of the Securities Act.
 

 [  ]  Savings and Loan Association.  The Subscriber is a savings and loan association or other institution as defined in Section 3(a)(5)(i) of the Securities Act.
 

 [  ]  Insurance Company.  The Subscriber is an insurance company as defined in Section 2(14) of the Securities Act.
 

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 [  ]  Investment Company.  The Subscriber is an investment company registered under the Investment Company Act of 1940.
 

 [  ]  Business Development Company.  The Subscriber is a business development company as defined in Section 2(a)(48) of the Investment Company Act of 1940.
 

 [  ]  Small Business Investment Company.  The Subscriber is a small business investment company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958.
 

 [  ]  Private Business Development Company.  The Subscriber is a private business development company as defined in Section 202(a)(22) of the Investment Advisors Act of 1940.
 

 [  ]  Registered Broker or Dealer.  The Subscriber is a broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934.
 

 3. REPRESENTATIONS AND WARRANTIES OF SUBSCRIBER
 

 The Subscriber and, if the Subscriber is an entity, each of its officers, directors, partners, managers, members, trustees, beneficial owners, principals and/or agents, hereby represents and warrants to the Company, each of which is deemed to be a separate representation and warranty, as follows:
 

 () 
 Residence.  The Subscriber’s permanent legal residence and domicile, if the Subscriber is an individual, or permanent legal executive offices and principal place of business, if the Subscriber is an entity, was and is at the address designated on the cover page of this Subscription Application at both the time of the “offer” and the time of the “sale” of the Securities to the Subscriber.
 

 ()
 Age.  The Subscriber, if a natural person, is age twenty-one (21) or over.
 

 (c)
 Investment Knowledge and Experience; Sophistication (Regulation D; Blue Sky).  The Subscriber (together with his, her and/or its Advisors (as defined in subsection (f) below)) has such knowledge and experience in business, financial and tax matters including, in particular, investing in private placements of securities in companies similar to the Company, so as to enable the Subscriber to utilize the information made available in connection with this offering to: (i) evaluate the merits and risks of an investment in the Company and to make an informed investment decision with respect thereto; and (ii) to reasonably be assumed to have the capacity to protect the Subscriber’s own interests in connection with the transaction contemplated by this Subscription Application.
 

 (d)
 Minimum Net Worth (Blue Sky).  An investment in the Securities will not exceed ten percent (10%) of the Subscriber’s net worth if the Subscriber is an entity, or joint net worth with his or her spouse if the Subscriber is a natural person.
 

 (e)
 Receipt and Review of Offering Materials and Company Information.  The Subscriber: (i) has received the Offering Materials; and (ii) has read each of the Offering Materials in its entirety and fully understands the matters discussed therein and the terms of thereof.
 

 (f)
 Independent Review of Investment Merits; Due Diligence.  During the course of the transactions contemplated by this offering, and before purchasing the Securities:  (i) the Subscriber had the opportunity to engage such investment professionals and advisors including, without limitation, accountants, appraisers, investment, tax and legal advisors (collectively, the “Advisors”), each of whom are independent of the Company and its advisors and agents (including its legal counsel) to:
 

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 (1) review the terms and conditions of this Subscription Application, the Agreement, the Memorandum and the information and disclosures contained herein and therein; (2) conduct such due diligence review as the Subscriber and/or such Advisors deemed necessary or advisable, and (3) to provide such opinions as to (A) the investment merits of a proposed investment in the Securities; (B) the tax consequences of the purchase of the Securities and the subsequent disposition of all or any portion of the Securities; and (C) the effect of same upon the Subscriber’s personal financial circumstances, as the Subscriber and/or such Advisors may deem advisable; and (ii) to the extent the Subscriber availed himself, herself or itself of this opportunity, received satisfactory information and answers from such Advisors.
 

 (g)
 Opportunity to Ask Questions and to Review Documents, Books and Records; Opportunity to Meet with Representatives of the Company; Full Satisfaction.  Without limiting the generality of subsections (e) and (f) above, during the course of the transaction contemplated by this Subscription Application, and before purchasing the Securities, the Subscriber and/or his, her or its Advisors had the opportunity, to the extent they determined to be necessary or relevant in order to verify the accuracy of the information contained in the Offering Materials and/or to evaluate the merits of an investment in the Securities: (i) to be provided with financial and other written information about the Company (in addition to that contained in the Offering Materials) to the extent the Company has such information in its possession or could acquire it without unreasonable effort or expense; (ii) to meet with representatives of the Company and to ask questions and receive answers concerning the terms and conditions of the Offering Materials, an investment in the Securities, and the business of the Company and its finances; (iii) to review all documents, books and records of the Company, including the periodic filings of the Company; and (iv) to the extent the Subscriber and/or his, her or its Advisors availed themselves of this opportunity, received satisfactory information and answers.
 

 (h)
 Acceptance of Investment Risks.  The Subscriber understands and acknowledges that: (i) an investment in the Securities: (1) is a speculative investment with a high degree of risk of loss and the Subscriber must, therefore, be able to presently afford a complete loss of this investment; (2) the Subscriber must be able to hold the Securities indefinitely; and (3) it may not be possible for the Subscriber to liquidate the Securities in the case of emergency and/or other need and the Subscriber must, therefore, have adequate means of providing for the Subscriber’s current and future needs and personal contingencies, and have no need for liquidity in this investment; and (ii) the Subscriber has evaluated the Subscriber’s financial resources and investment position in view of the foregoing, and is able to bear the economic risk of an investment in the Securities.
 

 (i)
 Securities Purchased For Subscriber’s Own Account.  The Subscriber is purchasing the Securities: (i) as principal and not by any other person or entity; (ii) with the Subscriber’s own funds and not with the funds of any other person or entity; and (iii) for the account of the Subscriber, and not as a nominee or agent and not for the account or benefit of any other person or entity.  The Subscriber is purchasing the Securities for investment purposes only for an indefinite period, and not with a view to the sale or distribution of any part or all thereof, by public or private sale or other disposition.  No person or entity other than the Subscriber will have any interest, beneficial or otherwise, in the Securities, and the Subscriber is not obligated to transfer the Securities to any other person or entity, nor does the Subscriber have any agreement or understanding to do so.  The Subscriber understands that (1) the Securities may not be sold, hypothecated, pledged, transferred, assigned or disposed of except in accordance with the substantial restrictions on transfer described herein or that otherwise apply to the Securities, and (2) the Company is relying, in material part, upon the Subscriber’s representations as set forth in the Agreement and herein for purposes of claiming the “Federal Exemptions” or “Blue Sky Exemptions” (as those are defined in subsection (l) below), and that the basis for such exemptions may not be presented if, notwithstanding the Subscriber’s representations, the Subscriber has in mind merely acquiring the Securities for resale of all or a portion of the Securities upon the occurrence or nonoccurrence of some predetermined event, and the Subscriber has no such intention.
 

 

 

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 (j)
 Compliance with Investment Laws.  The Subscriber has complied with all applicable investment laws and regulations in force relating to the legality of an investment in the Securities by the Subscriber in any jurisdiction in which he, she or it purchases the Securities or is otherwise subject, and has obtained any consent, approval or permission required of him, her or it for the purchase of the Securities under such investment laws and regulations.
 

 (k)
 Unregistered Securities.  The Subscriber understands and acknowledges that: (i) the Securities have not been, and when issued will not be, registered with the Securities and Exchange Commission (the “Commission”) under Section 5 of the Securities Act in reliance upon one or more exemptions afforded by the Securities Act and/or rules promulgated by the Commission pursuant thereto which may be selected by the Company in its sole discretion including, without limitation (collectively and severally, the “Federal Exemptions”): (1) Section 4(2) of the Securities Act for private offerings; and (2) Rule 506 of Regulation D promulgated under Section 4(2) of the Securities Act for private offerings; and (ii) the Securities have not been, and when issued will not be, registered or qualified with any applicable state or territorial securities regulatory agency in reliance upon one or more exemptions afforded from registration or qualification afforded under the securities laws of such state or territory (the “Blue Sky Laws”) which exemptions may be selected by the Company in its sole discretion (collectively and severally, the “Blue Sky Exemptions”).
 

 (l)
 Resale Restrictions on Securities Pursuant to Securities Laws. The Subscriber understands and acknowledges that: (i) should the Company elect to rely upon the exemptions afforded by Rule 506 under Regulation D, the Securities will be classified, pursuant to Rule 502(d) of Regulation D of the Securities Act, as “restricted securities” acquired in a transaction under Section 4(2) of the Securities Act, which cannot be sold without registration under the Securities Act or an exemption therefrom such as, by way of example and not limitation: (1) Section 4(1) of the Securities Act; (2) the so-called “Section 4(11⁄2) Exemption” to the Securities Act which, pursuant to Section 4(1) of the Securities Act, exempts from the provisions of the Securities Act requiring the registration of securities certain “private sales” which are effectuated in a manner similar to private placements by issuers under Section 4(2) of the Securities Act; and (3) Rule 144 and/or Rule 144A of the Securities Act; (ii) if the Subscriber is an “Affiliate” of the Company (as such term is defined below), he, she or it generally will not be able to sell, transfer, assign, or otherwise dispose of the Securities except under Rule 144; (iii) the Securities will also be subject to applicable state securities laws that may require registration or qualification of the Securities in connection with their resale, unless an exemption from such registration or qualification is available.  In general, an “Affiliate” is defined as a person who is a director or officer of a company, or who directly or indirectly controls a company.  As a rule of thumb, ownership of 10% or more of a company’s voting stock generally will be deemed to constitute control, while ownership of less than 5% of a company’s voting stock will generally not be deemed to constitute control.  In general, assuming that the Company is current in filing reports with the Commission and that the Subscriber is not an Affiliate, a minimum of six (6) months must elapse following the purchase of the Securities before the Subscriber may re-sell the Securities under Rule 144 of the Securities Act. As a result of the Company’s prior status as a “shell company”, stockholders who receive our restricted securities will not be able to sell them pursuant to Rule 144 without registration until at least one year has elapsed from the time that the issuer filed current comprehensive disclosure with the Commission reflecting its status as an entity that is not a shell company, including audited financial statements (“Form 10 Information”) with the Commission (the “One Year Anniversary Date”); provided, that the Company is subject to the reporting requirements of Sections 13 or 15(d) of the Exchange Act and if and for so long as we have complied with our reporting requirements in the 12 months immediately prior to the One Year Anniversary Date. The Company filed equivalent of Form 10-12G on February 25, 2014 and amended the filing Form 10-12G/A Information with the Commission on April 28, 2014. As a result, the Company can only provide assurances that the proper paper filings and wait period have been achieved thus we believe we became eligible for resale pursuant to the exemption from registration under Rule 144 on April 28, 2015, the date upon which the Company has been subject to the reporting requirements for one full year, without objection from the Commission; provided that, the Company remains current in its reporting obligations at the time of any individual sale.
 

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 (m)
 Satisfaction of Counsel of Company As to Transfers of Securities.  The Subscriber understands and acknowledges that: (i) prior to any sale, transfer, assignment, pledge, hypothecation or other disposition of the Securities in accordance with the terms and conditions of the Agreement, the Subscriber must either: (1) furnish the Company with a detailed explanation of the circumstances surrounding the proposed disposition; furnish the Company with an opinion of legal counsel (which may be the Company’s), in form and substance reasonably satisfactory to the Company and its legal counsel, to the effect that such disposition is exempted from the registration and prospectus delivery requirements under the Securities Act and the securities laws of the state in which the Subscriber is then resident; and legal counsel for the Company shall have concurred in such opinion and the Company shall have advised the Subscriber of such concurrence; or (2) satisfy the Company that an appropriate form of registration statement under the Securities Act with respect to the Securities proposed to be so disposed of shall then be effective, and that such disposition shall have been appropriately qualified or registered in accordance with the applicable Blue Sky Laws; and (ii) notwithstanding the foregoing, if in the opinion of counsel for the Company, the Subscriber has acted in a manner inconsistent with the representations and warranties in this Subscription Application or the Agreement, the Company may refuse to transfer the Securities until such time as counsel for the Company is of the opinion that such transfer: (1) will not require registration of the Securities under the Securities Act, and registration or qualification of the Securities under the applicable Blue Sky Laws; or (2) will otherwise comply with the Securities Act or the applicable Blue Sky Laws with respect to the sale or transfer of the Securities.  The Subscriber understands and agrees that the Company may refuse to acknowledge or permit any disposition of any portion of the Securities that is not in all respects in compliance with this Subscription Application, and the Company intends to make an appropriate notation in its records to that effect.
 

 (n)
 Legend on Certificates to Comply with Securities Laws.  The Subscriber understands and agrees that the certificate(s) representing the Securities, when issued, shall each bear such restrictive legend as the Company may deem reasonably necessary or advisable to facilitate compliance with the Securities Act and the securities laws of the state or territory of the Subscriber’s residence, including, without limitation, substantially the following legend:
 

 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), IN RELIANCE UPON ONE OR MORE EXEMPTIONS FROM REGISTRATION OR QUALIFICATION AFFORDED BY THE SECURITIES ACT AND/OR RULES PROMULGATED BY THE COMMISSION PURSUANT THERETO.  THE SECURITIES REPRESENTED HEREBY HAVE ALSO NOT BEEN REGISTERED OR QUALIFIED (AS THE CASE MAY BE) UNDER THE SECURITIES LAWS OF ANY STATE OR TERRITORY OF THE UNITED STATES (THE “BLUE SKY LAWS”), IN RELIANCE UPON ONE OR MORE EXEMPTIONS FROM REGISTRATION OR QUALIFICATION (AS THE CASE MAY BE) AFFORDED UNDER SUCH SECURITIES LAWS.  NEITHER THE COMMISSION NOR ANY SECURITIES REGULATORY AGENCY OF ANY STATE OR TERRITORY OF THE UNITED STATES HAS REVIEWED OR PASSED UPON OR ENDORSED THE MERITS OF THE OFFERING CONTEMPLATED HEREBY, AND ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.  THESE SECURITIES HAVE BEEN ACQUIRED FOR THE HOLDER’S OWN ACCOUNT FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW FOR RESALE OR DISTRIBUTION.
 

 

 

 

 

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 THESE SECURITIES ARE “RESTRICTED SECURITIES” WITHIN THE MEANING OF RULE 144 PROMULGATED UNDER THE SECURITIES ACT.  THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED, OR OFFERED FOR SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION, WITHIN THE UNITED STATES OR ANY OF ITS TERRITORIES OR TO A UNITED STATES PERSON, UNLESS: (i) THE SECURITIES ARE REGISTERED PURSUANT TO SECTION 5 OF THE SECURITIES ACT AND/OR REGISTERED OR QUALIFIED PURSUANT TO ANY APPLICABLE BLUE SKY LAWS; OR (ii) THE PROPOSED TRANSACTION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE SECURITIES ACT AND THE REGISTRATION AND QUALIFICATION PROVISIONS OF ANY APPLICABLE BLUE SKY LAWS.  AS A RESULT, THESE SECURITIES ARE SUITABLE ONLY FOR CERTAIN SOPHISTICATED AND QUALIFIED INVESTORS WHO CAN BEAR THE FINANCIAL RISK OF AN INVESTMENT IN THESE SECURITIES FOR AN INDEFINITE PERIOD OF TIME.
 

 (o)
 Completeness and Accuracy of Information.  All information which the Subscriber has heretofore furnished or furnishes herewith to the Company or its agents is complete and accurate and may be relied upon by the Company in determining the availability of an exemption from registration under federal and state securities laws in connection with the offer and sale of the Securities to the Subscriber in particular.
 

 (p)
 Material Changes in Information.  The Subscriber will notify and supply corrective information to the Company immediately upon the occurrence of any material change(s) in any information provided by the Subscriber to the Company occurring prior to the Closing, (as defined in the Agreement), of the purchase by the Subscriber of the Securities.
 

 (q)
 Cooperation.  Within five (5) days after receipt of a request from the Company, the Subscriber will provide such information and deliver such documents as may reasonably be necessary to comply with any and all laws and ordinances to which the Company is subject.
 

 (r)
 Offering Representations and Communications.  No person has provided any information (other than the Offering Materials) or made any verbal or written representations or warranties to the Subscriber and/or his, her or its Advisors, if any, about the Company, the Securities or this Offering, other than as stated in Section 3 of the Agreement.
 

 (s)
 Reliance Upon Offering Materials and Information Provided.  In evaluating the suitability of an investment in the Securities, the Subscriber has not relied upon, and agrees that he, she or it may not rely upon, any representation, warranty or other information (verbal or written) other than as stated in Section 3 of the Agreement.
 

 (t)
 No Awareness of Public Advertising.  The Subscriber is unaware of, is in no way relying on, and did not become aware of this Offering, through or as a result of any form of public advertising including, without limitation, any advertisement, article, notice, leaflet or other communication (whether published in any newspaper, magazine, or similar media or broadcast over television, internet or radio, or otherwise generally disseminated or distributed).
 

 (u)
 No General Solicitation.  The Subscriber did not subscribe to purchase the Securities, or become aware of this offering, through or as the result of any public or promotional seminar or meeting to which the Subscriber was invited by, or any solicitation of a subscription by, a person not previously known to the Subscriber in connection with investments in securities generally.
 

 

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 (v)
 Pre-Existing Relationship with Company.  The Subscriber represents that he, she or it has a pre-existing personal or business relationship*** with the Company or any of its managers, officers or controlling persons.
 

 ***  The term “pre-existing personal or business relationship” includes any relationship consisting of personal or 
 business contacts of a nature and duration which would enable a reasonably prudent purchaser to be aware   of the character, business acumen and general business and financial circumstances of the person with whom the relationship exists.
 

 (w)
 USA Patriot Act; Anti-Money Laundering.  The Subscriber should check the Office of Foreign Assets Control (“OFAC”) website at <http://www.treas.gov/ofac> before making the following representations:
 

 The Subscriber represents that the amounts invested by it in the Company in the Offering were not and are not directly or indirectly derived from activities that contravene federal, state or international laws and regulations, including anti-money laundering laws and regulations. Federal regulations and Executive Orders administered by OFAC prohibit, among other things, the engagement in transactions with, and the provision of services to, certain foreign countries, territories, entities and individuals.  The lists of OFAC prohibited countries, territories, persons and entities can be found on the OFAC website at <http://www.treas.gov/ofac>.  In addition, the programs administered by OFAC (the “OFAC Programs”) prohibit dealing with individuals[1] or entities in certain countries regardless of whether such individuals or entities appear on the OFAC lists;
 

 To the best of the Subscriber’s knowledge, none of: (1) the Subscriber; (2) any person controlling or controlled by the Subscriber; (3) if the Subscriber is a privately-held entity, any person having a beneficial interest in the Subscriber; or (4) any person for whom the Subscriber is acting as agent or nominee in connection with this investment is a country, territory, individual or entity named on an OFAC list, or a person or entity prohibited under the OFAC Programs.  Please be advised that the Company may not accept any amounts from a prospective investor if such prospective investor cannot make the representation set forth in the preceding paragraph.  The Subscriber agrees to promptly notify the Company should the Subscriber become aware of any change in the information set forth in these representations.  The Subscriber understands and acknowledges that, by law, the Company may be obligated to “freeze the account” of the Subscriber, either by prohibiting additional subscriptions from the Subscriber, declining any redemption requests and/or segregating the assets in the account in compliance with governmental regulations.  The Subscriber further acknowledges that the Company may, by written notice to the Subscriber, suspend the redemption rights, if any, of the Subscriber if the Company reasonably deems it necessary to do so to comply with anti-money laundering regulations applicable to the Company or any of the Company’s other service providers.  These individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs;
 

 To the best of the Subscriber’s knowledge, none of: (1) the Subscriber; (2) any person controlling or controlled by the Subscriber; (3) if the Subscriber is a privately-held entity, any person having a beneficial interest in the Subscriber; or (4) any person for whom the Subscriber is acting as agent or nominee in connection with this investment is a senior foreign political figure,[2] or any immediate family[3] member or close associate[4] of a senior foreign political figure, as such terms are defined in the footnote below; and
 

 

 ___________
 [1] These individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs.
 [2]  A “senior foreign political figure” is defined as a senior official in the executive, legislative, administrative, military or judicial branches of a foreign government (whether elected or not), a senior official of a major foreign political party, or a senior executive of a foreign government-owned corporation. In addition, a “senior foreign political figure” includes any corporation, business or other entity that has been formed by, or for the benefit of, a senior foreign political figure.
 [3]  “Immediate family” of a senior foreign political figure typically includes the figure’s parents, siblings, spouse, children and in-laws.
 [4] A “close associate” of a senior foreign political figure is a person who is widely and publicly known to maintain an unusually close relationship with the senior foreign political figure, and includes a person who is in a position to conduct substantial domestic and international financial transactions on behalf of the senior foreign political figure.
 

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 If the Subscriber is affiliated with a non-U.S. banking institution (a “Foreign Bank”), or if the Subscriber receives deposits from, makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, the Subscriber represents and warrants to the Company that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country in which the Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related to its banking activities; (3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank to conduct banking activities; and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does not have a physical presence in any country and that is not a regulated affiliate.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 CONFIDENTIAL
 

 
 

 The Subscriber has executed and delivered this Subscription Application to Spindle, Inc. as of the date set forth below.  
 

 

 	 	
	  
	 SUBSCRIBER:

	  
	  

	  
	  

	  
	  

	  
	 By: ___________________________

	  
	 (Signature)

	  
	  

	  
	 Name: _________________________

	  
	 Title: __________________________

	  
	 Date: __________________________

	  
	  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 12
 CONFIDENTIAL
 

 
 

 EXHIBIT A
 

 FORM OF SECURITIES PURCHASE AGREEMENTExhibit 10.60

 

SEPARATION AGREEMENT AND RELEASE

 

THIS SEPARATION AGREEMENT AND RELEASE (this “Agreement”) is made by and between Christopher J. Harris (“Executive”) and Clean Diesel Technologies, Inc.  (the “Company”), together with each and every of its predecessors, successors (by merger or otherwise), parents, subsidiaries, affiliates, divisions and related entities, legal representatives, directors, officers, employees and agents, whether present or former and both in their individual and corporate capacities (collectively the “Releasees”);

 

WHEREAS, the Executive has served until October 22, 2015 as President and Chief Executive Officer pursuant to an Employment Agreement dated December 22, 2014 (the “Employment Agreement”) and has served as President and Chief Operating Officer (“COO”) since October 22, 2015;

 

WHEREAS, the Parties desire to amicably terminate their relationship;

 

WHEREAS, the parties desire to separate on amicable terms and Executive and the Company wish to resolve any and all claims or disputes they may have through the Termination Date (as defined below);

 

NOW, THEREFORE, the parties agree as follows, in consideration of the covenants and obligations contained herein, and intending to be legally held bound:

 

1.             Separation and Resignation for Good Reason.  By this Agreement, Executive hereby acknowledges and agrees to his resignation, effective as of December 11, 2015, (the “Termination Date”), from all officer and director positions with the Company or any Releasee, including without limitation as CEO.  Executive acknowledges and agrees that as of such date, he shall not have any authority or power to bind the Company or the Releasees, or act on behalf of the Company or the Releasees in any manner.  Subject to Executive’s compliance with his obligations hereunder, the Company agrees to treat Executive’s resignation as a “Resignation for Good Reason,” as described in the Employment Agreement.  This agreement attaches hereto, incorporates and makes a part hereof the Employment Agreement entered into by the parties on December 22, 2014, as Exhibit A, which dictates the parties’ obligations upon Resignation for Good Reason.  If this Agreement is expressly inconsistent with the Employment Agreement, the terms of the Employment Agreement shall prevail.

 

2.             Consideration.  In consideration for and subject to the releases and other covenants of Executive set forth in this Agreement, after the Effective Date as defined below in Paragraphs 8(g) of this Agreement, the Company agrees to provide Executive the following payments and benefits as provided in the Employment Agreement (the “Severance Benefits”).  These payments shall begin on the first regularly scheduled payroll date following January 7, 2016, or the Effective Date, whichever is later:

 

(a)           Payment in the gross amount of $297,917 (which equals 13 months of Executive’s base salary rate as in effect at the Termination Date), subject to all legally required withholdings and payable in installments in accordance with the Company’s normal payroll schedule and payroll practices in effect from time to time, on a biweekly basis (the “Severance Period”).  Executive agrees that such payments will be issued by the Company via direct deposit,

 

 

and that if Executive’s bank account information changes at any time, Executive will notify the Company in writing and confirm receipt of such notice.  Executive understands that any change in bank account information may cause delay in direct deposit of any Severance Benefits.

 

(b)           The Company will provide Executive with a one-time payment in the amount of $11,936.07 (which includes applicable tax gross-up), less all applicable withholdings and deductions, to help defray costs incurred for medical insurance whether Executive obtains coverage through his spouse, elects coverage under the provisions of Section 4980 of the Internal Revenue Code of 1986 (“COBRA”), or obtains coverage through the State or Federal Health Insurance Marketplaces, known as the “Exchanges”.   Executive understands that obtaining medical insurance coverage through these means will be solely his responsibility.

 

(c)           Executive acknowledges that the Employment Agreement provides that it is solely within the Board’s discretion to determine if it will accelerate the vesting of the balance, or some lesser portion of, Executive’s stock options and restricted share units.  In addition, while not required to do so, it is within the Board’s discretion to extend the post-termination exercise period of Executive’s stock options.  Executive understands that the Board has exercised its discretion and the Company agrees, subject to Executive’s compliance and execution of this Agreement, to accelerate, effective as of the Termination Date, the vesting of the unvested portions of the stock options and restricted share units and to extend the post-termination exercise period of the stock options, all as identified in Exhibit B attached to this Agreement.  Subject to the foregoing, upon the Termination Date, Executive will be vested in a total of 46,762 stock options and 15,595 restricted share units on December 18, 2015, subject to the applicable award agreement(s).  Executive acknowledges that, as of the Termination Date, Executive is entitled to only those interests in the equity securities of the Company described in Exhibit B attached to this Agreement, subject to this paragraph and the terms of the applicable award agreements, including satisfaction of the Tax Obligations described in such agreements  (by way of the Company’s sell to cover program), and but for this Agreement, Executive would not otherwise be entitled to any accelerated vesting of the unvested portions of his stock options and restricted share units.  Notwithstanding the previous, the Company agrees and accepts that Executive will satisfy his tax obligations by way of the Company’s sell to cover program, and the Company will facilitate such process.

 

(d)           Payment of a discretionary, prorated Annual Bonus consistent with Paragraph 4(b)(ii)(C) of Executive’s Employment Agreement, in the amount of $87,970, less applicable withholdings and deductions, to be paid in a lump sum on the first payroll date after the Effective Date or January 7, 2016, whichever is later.

 

(e)           Outplacement services and support for a maximum period of six (6) months through Syntesis Global.  Executive’s eligibility for outplacement services shall commence on the date of the execution of this Agreement, but in no circumstance shall such services and support extend beyond December 31, 2016.  Executive acknowledges that this benefit will cease in the event that Executive accepts new employment.  Executive acknowledges and understands that this Severance Benefit is not required by the Employment Agreement and is subject to Executive complying with the promises herein.

 

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Executive acknowledges that Severance Benefits constitute consideration to which he would not otherwise be entitled.

 

3.             Other Payments.  Benefits, and Acknowledgments.

 

(a)           Executive confirms that as of the date he executes this Agreement and regardless of whether Executive executes this Agreement, Executive received all wages for all hours worked and that as of his Termination Date, he will be paid for all final wages for all hours worked and for accrued and earned but unused vacation pay through the Termination Date, subject to all applicable withholdings and deductions.

 

(b)           Executive will be reimbursed for all ordinary and necessary, reasonable business-related expenses incurred in connection with Executive’s employment with the Company through the Termination Date.  Executive must submit all requests for reimbursement for such expenses no later than December 31, 2015.

 

(c)           Executive acknowledges that Executive will not be entitled to any additional bonus payments for 2015 or any subsequent year.

 

(d)           The Company acknowledges that Executive shall continue to be entitled to only those benefits to which he may be entitled under the Company’s Executive Long-Term Incentive Plan as of the Termination Date.

 

(e)           Executive represents and confirms that he: (i) is not aware of any unpaid wages, vacation, bonuses, or other amounts owed to Executive by Company, other than the Consideration and payments specifically promised in this Agreement; (ii) Executive has not been denied any request for leave to which Executive believes he was legally entitled, and Executive was not otherwise deprived of his rights under the Family and Medical Leave Act or any similar state or local statute; and (iii) under this Agreement, Executive has been provided everything owed and due under his Employment Agreement and any Company plans or equity grant documents.

 

4.             Executive’s and the Company’s Release.  Executive hereby generally releases and discharges the Releasees from any and all suits, causes of action, complaints, obligations, demands, or claims of any kind, whether in law or in equity, direct or indirect, known or unknown, suspected or unsuspected (hereinafter “claims”), which Executive ever had or now has against the Releasees, or any one of them, arising out of or relating to any matter, thing or event occurring up to and including the date of this Agreement, exclusive of a claim for breach of this Agreement.  Similarly, the Company hereby generally releases and discharges Executive from any and all suits, causes of action, complaints, obligations, demands, or claims of any kind, whether in law or in equity, direct or indirect, known or unknown, suspected or unsuspected (hereinafter “claims”), which the Company ever had or now has against Executive arising out of or relating to any matter, thing or event occurring up to and including the date of this Agreement, exclusive of a claim for breach of this Agreement.  THIS IS A GENERAL RELEASE OF ALL CLAIMS.  Executive’s release, and the Company’s release as applicable, specifically includes, but is not limited to:

 

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(a)           any and all claims relating to or arising from Executive’s employment relationship with the Company and the termination of that relationship;

 

(b)           any and all claims for wages and benefits including, without limitation, salary or other wages, stock, options, commissions, royalties, license fees, health and welfare benefits, severance pay, vacation pay, and bonuses, but excluding claims to vested benefits, including but not limited to claims under the following statutes: the Fair Labor Standards Act, as amended, the California Labor Code, the California Industrial Wage Orders, the Private Attorney General Act, the California Business and Professions Code, or any comparable statute of any state, country or locality.

 

(c)           any and all claims for wrongful discharge, breach of contract (whether express or implied), or for breach of the implied covenant of good faith and fair dealing;

 

(d)           any and all claims for employment discrimination on the basis of age, race, color, religion, sex, national origin, veteran status, disability and/or handicap, sexual orientation, marital status or any other characteristic protected by law, and any and all claims in violation of any federal, state or local statute, ordinance, judicial precedent or executive order, including but not limited to claims for discrimination under the following statutes: Title VII of the Civil Rights Act of 1964, 42 U.S.C.  Section 2000e et seq., the Civil Rights Act of 1866, 42 U.S.C.  Section 1981, the Age Discrimination in Employment Act, as amended, 29 U.S.C.  Section 621 et seq., the Older Workers Benefit Protection Act, 29 U.S.C.  Section 626(f), the Americans with Disabilities Act, 42 U.S.C.  Section 12101 et seq., or any claims under the Family and Medical Leave Act of 1993, as amended, the California Fair Employment and Housing Act, as amended, the Fair Labor Standards Act, as amended, the Employee Retirement Income Security Act of 1974, as amended, or any comparable statute of any state, country or locality.

 

(e)           any and all claims in tort (including but not limited to any claims for misrepresentation, defamation, interference with contract or prospective economic advantage, intentional or negligent infliction of emotional distress, duress, loss of consortium, invasion of privacy and negligence);

 

(f)            any and all claims for violation of the federal, or any state, constitution;

 

(g)           any claim for any loss, costs, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any of the proceeds received by Executive as a result of this Agreement; and

 

(h)           any and all claims for attorneys’ fees and costs.

 

5.             Mutual Release of Unknown Claims.  Executive and the Company understand that this release extends to all of the aforementioned claims and potential claims forever and to the fullest extent permissible by law, whether now known or unknown, suspected or unsuspected, and that this constitutes an essential term of this Agreement.  Executive and the Company further understand and acknowledge the significance and consequence of this Agreement and of each specific release and waiver, and expressly consent that this Agreement shall be given full force and effect according to each and all of its express terms and provisions,

 

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including those relating to unknown and unsuspected claims, demands, obligations, and causes of action, if any, as well as those relating to any other claims, demands, obligations or causes of action herein above-specified.  Executive and the Company expressly waives any right or benefit available to him in any capacity under the provisions of California Civil Code section 1542, which provides as follows:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

6.             Cooperation in Legal Proceedings.  In consideration for the severance and other payments and promises set forth above, Executive shall provide to Releasee, and to any or all of its subsidiaries, divisions, and affiliated companies, such cooperation in legal proceedings as is reasonably requested, including by furnishing information and/or testimony in connection with such legal proceedings.

 

7.             Remedies.  All remedies at law or in equity shall be available to the Releasees for the enforcement of this Agreement.  This Agreement may be pleaded as a full bar to the enforcement of any claim that Executive may assert against the Releasees.

 

8.             Age Discrimination in Employment Act.  Executive acknowledges, agrees and understands that:

 

(a)           under the general release detailed above, Executive is waiving and releasing, among other claims, any rights and claims that may exist under the Age Discrimination in Employment Act (“ADEA”);

 

(b)           the waiver and release of claims set forth in the release above does not apply to any rights or claims that may arise under the ADEA after the date of execution of this Agreement;

 

(c)           the payments and other consideration that are being provided to Executive are of significant value and are in addition to what Executive otherwise would be entitled;

 

(d)           Executive is being advised in writing to consult with an attorney before signing this Agreement;

 

(e)           Executive is being given a period of twenty-one (21) days within which to review and consider this Agreement before signing it, though Executive may sign earlier, and if Executive fails to sign and return this Agreement within the twenty-one (21) day consideration period, the Company’s offer and this Agreement will expire on its own terms and the Company may assert that Executive was terminated for cause or otherwise;

 

(f)            Executive may revoke her/his acceptance of this Agreement by providing written notice to the Company within seven (7) days following its execution, and any notice of revocation of this Agreement must be in writing and transmitted by hand or certified mail to:

 

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Clean Diesel Technologies, Inc.

1621 Fiske Place

Oxnard, CA 93033

Attn: Matthew Beale

Chief Executive Officer

Email: mbeale@cdti.com

 

(g)           Because of Executive’s right to revoke this Agreement, this Agreement shall not become effective and enforceable until the eighth (8th) day after the return of an executed copy of this Agreement by Executive to the Company (the “Effective Date”), and Executive will not be entitled to any of the benefits set forth in this Agreement until after the Effective Date.

 

9.             No Admissions.  Neither the execution of this Agreement by the Releasees, nor the terms hereof, constitute an admission by the Releasees of liability to Executive.  Similarly, neither the execution of this Agreement by Executive, nor the terms hereof, constitute an admission by Executive of liability to the Company and/or the Releasees.

 

10.          No Disparagement.  Executive agrees to refrain from making disparaging comments about the Releasees, and further agrees not to take any action that would harm the business or professional reputation of any of the Releasees.

 

11.          No Disparagement by Releasees.  Senior Management of Company agrees that they will not disparage or defame Executive, and will use reasonable efforts to prevent the Releasees from disparaging or defaming Executive.

 

12.          Confidentiality.  Except to the extent the terms are publicly disclosed in the SEC filings of the Company, Executive shall not disclose or publicize the terms or fact of this Agreement, directly or indirectly, to any person or entity, except to his accountant, attorney, spouse, and to others as required by law.  Nothing in this Agreement shall be construed to prohibit Executive from reporting alleged improper or unlawful conduct to, or participating in any investigation or proceeding conducted by any federal or state government agency or self-regulatory organization.  Executive also may disclose Paragraph 14 of this Agreement to a prospective employer, if necessary.

 

13.          Return of Property.  Executive confirms that as of the date of this Agreement, he has returned to the Company in good working order all the Company property within his possession, custody and control.  Such property includes, but is not limited to, strategic plans and files, technical and intellectual property data and files, electronic equipment, memory sticks or USB flash drives, keys, software, calculators, equipment, credit cards, forms, files, manuals, correspondence, business cards, personnel data, lists of or other information regarding customers, contacts and/or employees, contracts, contract information, agreements, leases, plans, brochures, catalogues, training materials, computer tapes and diskettes or other portable media.  Notwithstanding anything to the contrary in this Paragraph, Executive will be permitted to retain Executive’s Company-issued laptop following the Termination Date, following the reformatting and removal of any confidential and proprietary information of the

 

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Company.  To the extent Executive at any point discovers Company property that Executive failed to return, Executive shall return any and all such Company property immediately.

 

14.          Continuing Obligations.  Executive acknowledges that in the course of his employment he has obtained confidential and proprietary information about the Company, including but not limited to financial, business, product, customer and marketing information, plans, forecasts, and strategies, and that he is required to maintain the confidentiality of all such non-public information following the termination of his employment.  The Executive shall at all times, both before and after termination of employment, cooperate with the Company in executing and delivering documents and taking any other actions that are necessary or requested by the Company.  Executive specifically acknowledges and agrees to advise and provide any information related to the Company including but not limited to emails, telephone calls, documents, or any other communications Executive receives after the Termination Date to the Company and that Executive will make reasonable efforts to advise the Company of such dealings by contacting Matthew Beale.  Executive also specifically acknowledges that post-termination, he will be bound by Paragraphs 5 (Protection of Confidential Information), 6 (Protection of Intellectual Property), and 7 (Post-Employment Covenants) of his Employment Agreement, in their entirety to the fullest extent permitted by law, as well as any other confidentiality obligations to which the Executive is subject.  If any provision of the Employment Agreement or any other similar obligation is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other obligation under this Paragraph 14, such term shall be modified to the extent necessary to make it enforceable, and notwithstanding the foregoing, Executive agrees to be bound by all other obligations under this Paragraph 14.  In the event that Executive breaches his obligations under this Paragraph 14, in addition to, and not limiting other legal and equitable remedies, the Company shall have no further obligation to continue rendering payments, benefits, or permit Executive’s continued participation in any Company program under Paragraph 2 herein.

 

15.          Essential Terms.  Executive understands and acknowledges that the promises in Paragraphs 8, 9, 11, 12 and 13 are a material inducement for Releasees to enter this Agreement and are of the essence of this Agreement.  Executive therefore agrees that if he should breach any of the provisions of the aforementioned paragraphs, he will be obligated to return to Releasees any payments made under this Agreement, to the extent permitted by law.

 

16.          No Knowledge of Wrongdoing.  Executive represents that Executive has no knowledge of any wrongdoing involving improper or false claims against a federal or state governmental agency, or any other wrongdoing that involves Executive or other present or former Company employees.

 

17.          Fees and Costs.  The parties shall bear their own attorneys’ fees and costs associated with negotiation and execution of this Agreement.

 

18.          Entire Agreement.  This Agreement and its Exhibits contain the entire agreement of the parties with respect to the subject matter hereof, and supersede any prior agreements or understandings with respect to the subject matter hereof.  The parties acknowledge that in signing this Agreement, they do not rely upon and have not relied upon any representation

 

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or statement made by any of the parties or their agents with respect to the subject matter, basis or effect of this Agreement, other than those specifically stated in this written Agreement.

 

19.          Legally Binding.  The terms of this Agreement contained herein are contractual, and not a mere recital.  This Agreement shall be binding upon the parties to this Agreement and upon their heirs, administrators, representatives, executors and assigns.  Executive represents and warrants that he has not transferred to any person or entity any rights, causes of action or claims released in this Agreement.

 

20.          Severability.  If any term or provision of this Agreement shall be held to be invalid or unenforceable for any reason, the validity or enforceability of the remaining terms or provisions shall not be affected, and such term or provision shall be deemed modified to the extent necessary to make it enforceable.

 

21.          Advice of Counsel: Revocation Period.  Executive is hereby advised in writing to consult with an attorney prior to the execution of this Agreement.  Executive acknowledges that he is acting of his own free will, that he has been afforded a reasonable time to read and review the terms of this Agreement, and that he is voluntarily entering into this Agreement with full knowledge of its provisions and effects.  Executive intends that this Agreement shall not be subject to any claim for duress.  Executive further acknowledges that he has been given at least twenty-one (21) days within which to consider this Agreement, and has utilized the full 21-day review period with his own chosen counsel and has entered into this Agreement voluntarily and knowingly, after substantial negotiations.  Executive also acknowledges that he has seven (7) days following his execution of this Agreement to revoke his acceptance of the Agreement, with the Agreement not becoming effective until the revocation period has expired.

 

22.          No Representations.  The Parties represent that they each have had the opportunity to consult with an attorney, at their own expense, and have carefully read and understand the scope and effect of the provisions of this Agreement.  Neither Party has relied upon any representations or statements made by the other Party hereto which are not specifically set forth in this Agreement.

 

23.          Amendments.  Neither this Agreement nor any term hereof may be orally changed, waived, discharged, or terminated, and may be amended only by a written agreement between the parties hereto.

 

24.          Governing Law and Jurisdiction.  This Agreement shall be governed by the laws of the State of California without regard to the conflict of law principles of any jurisdiction and the Company and Executive each submit to the exclusive jurisdiction and venue of any state or federal court in the County of Ventura, California.

 

25.          Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

26.          Good Faith Compliance.  The Parties agree to cooperate in good faith and to do all things necessary to effectuate this Agreement.

 

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IN WITNESS WHEREOF, the parties, acknowledging that they are acting of their own free will, have caused the execution of this Agreement as of this day and year written below.

 

	
EXECUTIVE:   
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Christopher J. Harris
    	
 
    	
Witness:
    	
Self
    
	
Christopher J. Harris
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
December 11,   2015
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
COMPANY:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Matthew Beale
    	
 
    	
Witness:
    	
/s/   Alicia MacCracken
    
	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Matthew   Beale
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
CEO
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
December 14,   2015
    	
 
    	
 
    

 

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