Document:

Monaker Group, Inc. 8-K 

 

Exhibit
10.1

 

FIRST
AMENDMENT TO WARRANT 

 

This
First Amendment to Warrant (this “Agreement”) dated March 5, 2019 (the “Effective
Date”), is by and among Monaker Group, Inc., a Nevada corporation (the
“Company”) and the Donald P. Monaco Insurance Trust (the “Warrant
Holder”), each a “Party” and collectively the
“Parties.”

 

W I T N E S S E T H:

 

WHEREAS,
on August 11, 2017, the Company closed the transactions contemplated by the Common Stock and Warrant Purchase Agreement, entered
into by the Company on July 31, 2017 (the “Purchase Agreement”), with certain accredited investors named
therein, including the Warrant Holder (collectively, the “Purchasers”);

 

WHEREAS,
under the terms of the Purchase Agreement, the Company sold the Purchasers an aggregate of 613,0001 shares of common
stock (the “Shares”) and 613,000 warrants to purchase one share of common stock (the “Offering
Warrants”);

 

WHEREAS,
pursuant to the Purchase Agreement, the Warrant Holder subscribed for 35,000 Shares and 35,000 Offering Warrants;

 

WHEREAS,
the Warrant Holder has previously exercised 24,800 of the Offering Warrants for cash;

 

WHEREAS,
the Purchase Agreement included certain liquidated damage provisions which required the Company to grant to the Purchasers, as
partial liquidated damages for the failure to timely comply with certain milestones set forth in the Purchase Agreement, additional
warrants (on substantially similar terms as the Offering Warrants) (the “Liquidated Damages”);

 

WHEREAS,
the Warrant Holder was previously granted additional warrants to purchase 25,550 shares of the Company’s common stock in
connection with the Liquidated Damages (the “Liquidated Damage Warrants”);

 

WHEREAS,
the Warrant Holder holds warrants to purchase 35,750 shares of the Company’s common stock as of the date this Agreement,
which represents 10,200 Offering Warrants and 25,500 Liquidated Damage Warrants (collectively, the “Warrants”);

 

WHEREAS,
the Company desires to incentivize the Warrant Holder to exercise the Warrants by reducing the exercise price of the Warrants
from $5.13 per share to $2.85 per share, provided that the Warrant Holder agrees to immediately exercise such Warrants for cash;

 

 

1
All share and warrant amounts and exercise prices set forth herein have been retroactively adjusted by the Company’s
1-for-2.5 reverse stock split effective March 12, 2018.

 

    
Page 1 of 5
First Amendment To Warrant
March 2019

     

    

 

WHEREAS,
the Warrant Holder desires to immediately exercise the Warrants for cash subject to the reduction in exercise price described
above; and

 

WHEREAS,
the Parties now desire to amend the Warrant Agreements evidencing the Warrants (the “Warrant Agreements”)
to reduce the exercise price of such Warrants in consideration for the immediate cash exercise of such Warrants by the Warrant
Holder, pursuant to the terms and conditions of this Agreement and the Warrant Agreements as amended hereby.

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants, agreements, and considerations herein contained, and
other consideration, which consideration the Parties hereby acknowledge and confirm the receipt and sufficiency of, the Parties
hereto agree as follows:

 

1.             Amendment
to Warrant Agreements and Warrant Holder Exercise.

 

(a)       Effective
as of the Effective Date, the definition of “Exercise Price” set forth in Section 1 of the Warrant
Agreements are hereby amended and replaced by the following definition:

 

““Exercise
Price” means $2.85, subject to adjustment in accordance with Section 9.”

 

(b)       Effective
as of the Effective Date, the Warrant Holder shall be deemed to have affected a cash exercise of the full amount of the Warrants,
i.e., the Warrant Holder shall be deemed to have exercised the Warrant Agreements in full in cash at the Exercise Price as amended
hereby;

 

(c)       Concurrently
with the Warrant Holder’s entry into this Agreement and effective as of the Effective Date, but no later than two (2) Business
Days after the Effective Date (the “Deadline”), the Warrant Holder shall provide the Company (a) a Notice
of Exercise in the form of Exhibit A attached hereto (which shall be deemed, as applicable, in aggregate, to form a Notice
of Exercise of each of the Warrant Agreements)(the “Notice of Exercise”), confirming and documenting
the exercise of such Warrants for cash pursuant to the terms and conditions thereof (the “Exercise”);
and (b) the aggregate Exercise Price of the Warrants ($101,887.50)(the “Aggregate Exercise Price”).

 

(d)       Unless
extended by the Company in its sole discretion, in the event the Notice of Exercises and the Aggregate Exercise Price are not
received by the Company by the Deadline, this Agreement shall be rescinded and shall be void ab initio, the Exercise shall
be voided, the Exercise Price of the Warrants shall revert to $5.13 per share, and this Agreement shall have no force or effect
on the date immediately following the Deadline.

 

    
Page 2 of 5
First Amendment To Warrant
March 2019

     

    

 

2.            Consideration.
Each of the Parties agrees and confirms by signing below that they have received valid consideration in connection with this Agreement
and the transactions contemplated herein.

 

3.            Mutual
Representations, Covenants and Warranties. Each of the Parties, for themselves and for the benefit of each of the other
Parties hereto, represents, covenants and warrants that:

 

(a)       Such
Party has all requisite power and authority, corporate or otherwise, to execute and deliver this Agreement and to consummate the
transactions contemplated hereby and thereby. This Agreement constitutes the legal, valid and binding obligation of such Party
enforceable against such Party in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and general equitable principles;

 

(b)       The
execution and delivery by such Party and the consummation of the transactions contemplated hereby and thereby do not and shall
not, by the lapse of time, the giving of notice or otherwise: (i) constitute a violation of any law; or

(ii) constitute a breach of any provision contained in, or a default under, any governmental approval, any writ, injunction, order,
judgment or decree of any governmental authority or any contract to which such Party is bound or affected; and

 

(c)
       Any individual executing this Agreement on behalf of an entity has authority to act
on behalf of such entity and has been duly and properly authorized to sign this Agreement on behalf of such entity.

 

4.            Further
Assurances. The Parties agree that, from time to time, each of them will take such other action and to execute, acknowledge
and deliver such contracts, deeds, or other documents as may be reasonably requested and necessary or appropriate to carry out
the purposes and intent of this Agreement and the transactions contemplated herein.

 

5.            Effect
of Agreement. Upon the effectiveness of this Agreement, each reference in the Warrant Agreements
to “Warrant”, “Agreement,”
“hereunder,” “hereof,”
“herein” or words of like import shall mean and be a reference to
such Warrant Agreements as modified or amended hereby.

 

    
Page 3 of 5
First Amendment To Warrant
March 2019

     

    

 

6.            Exercise
of Warrants In Full; Termination of Warrant Agreements. Effective upon the Effective Date
and in connection with the Exercise, except for the right to receive Warrant Shares in connection with the Exercise of the Warrants
pursuant to the terms of this Agreement above and the terms of the Warrant Agreements (to the extent not modified hereby), the
Warrant Agreements and the Warrants shall be deemed to have been exercised in full, shall have no further force or effect, shall
be deemed terminated, and the Warrant Holder shall have no further rights, and the Company shall have no further obligation under,
such Warrant Agreements, effective on the Effective Date.

 

7.            Benefit
and Burden. This Agreement shall inure to the benefit of, and shall be binding upon, the Parties hereto and their successors
and permitted assigns.

 

8.            Entire
Agreement. This Agreement sets forth all of the promises, agreements, conditions, understandings, warranties and representations
among the Parties with respect to the transactions contemplated hereby and thereby, and supersedes all prior agreements, arrangements
and understandings between the Parties, whether written, oral or otherwise.

 

9.            Fully
Informed; Arm’s Length Transaction. Each Party herein expressly represents and warrants to all other Parties hereto
that (a) before executing this Agreement, said Party has fully informed itself of the terms, contents, conditions and effects
of this Agreement; (b) said Party has relied solely and completely upon its own judgment in executing this Agreement; (c) said
Party has had the opportunity to seek and has obtained the advice of its own legal, tax and business advisors before executing
this Agreement; (d) said Party has acted voluntarily and of its own free will in executing this Agreement; and (e) this Agreement
is the result of arm’s length negotiations conducted by and among the Parties and their respective counsel.

 

10.            No
Presumption from Drafting. This Agreement has been negotiated at arm’s-length between persons knowledgeable in the
matters set forth within this Agreement. Accordingly, given that all Parties have had the opportunity to draft, review and/or
edit the language of this Agreement, no presumption for or against any Party arising out of drafting all or any part of this Agreement
will be applied in any action relating to, connected with or involving this Agreement. In particular, any rule of law, legal decisions,
or common law principles of similar effect that would require interpretation of any ambiguities in this Agreement against the
Party that has drafted it, is of no application and is hereby expressly waived. The provisions of this Agreement shall be interpreted
in a reasonable manner to effect the intentions of the Parties.

 

    
Page 4 of 5
First Amendment To Warrant
March 2019

     

    

 

11.            Effect
of Facsimile and Photocopied Signatures. This Agreement and any signed agreement or instrument entered into in connection
with this Agreement, and any amendments hereto or thereto, may be executed in one or more counterparts, all of which shall constitute
one and the same instrument. Any such counterpart, to the extent delivered by means of a facsimile machine or by .pdf, .tif, .gif,
..jpeg or similar attachment to electronic mail (any such delivery, an “Electronic Delivery”) shall be
treated in all manner and respects as an original executed counterpart and shall be considered to have the same binding legal
effect as if it were the original signed version thereof delivered in person. At the request of any Party, each other Party shall
re execute the original form of this Agreement and deliver such form to all other Parties. No Party shall raise the use of Electronic
Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through
the use of Electronic Delivery as a defense to the formation of a contract, and each such Party forever waives any such defense,
except to the extent such defense relates to lack of authenticity.

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first written above to be effective
as of the Effective Date.

 

(“Company”)

 

Monaker
Group, Inc. 

 

By:
/s/ Bill Kerby

 

Its:
CEO

 

Printed
Name: Bill Kerby

 

(“Warrant
Holder”)

 

Donald
P. Monaco Insurance Trust 

 

By:
/s/ Donald P. Monaco

 

Its:
Trustee

 

Printed
Name: Donald P. Monaco

 

    
Page 5 of 5
First Amendment To Warrant
March 2019

     

    

 

EXHIBIT
A

 

     

     

    

 

EXERCISE
NOTICE

 

The
undersigned Holder hereby irrevocably elects to purchase 35,7501 shares of Common Stock pursuant to the
attached Warrants. Capitalized terms used herein and not otherwise defined have the respective meanings set forth in the Warrants.

 

(1)
         The undersigned Holder hereby exercises its right to purchase Warrant Shares pursuant
to the Warrants.

 

(2)
         The Holder intends that payment of the Exercise Price shall be made as (check one):

 

[X]
“Cash Exercise” under Section 10

 

[
] “Cashless Exercise” under Section 10

 

(3)
         If the holder has elected a Cash Exercise, the holder shall pay the sum of $101,887.502
to the Company in accordance with the terms of the Warrants.

 

(4)
         Pursuant to this Exercise Notice, the Company shall deliver to the holder Warrant Shares
in accordance with the terms of the Warrants.

 

	Dated March 5, 2019	Name of Holder: 
	 	 
	 	(Print)
	 	 
	 	Donald P. Monaco Insurance Trust
	 	 
	 	By: /s/ Donald P. Monaco
	 	 
	 	Its: Trustee
	 	 
	 	Printed Name: Donald P. Monaco
	 	 
	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)

 

 

1
Representing all of the warrants being exercised by the Holder on the date hereof pursuant to that certain First Amendment
to Warrant dated on or around the date hereof.

2 Representing the aggregate
exercise price of all of the warrants being exercised by the Holder on the date hereof pursuant to that certain First Amendment
to Warrant dated on or around the date hereof.pmts_EX10_19

		
			EXHIBIT 10.19
		

		
			CPI Card Group Inc.
		

		
			2019 Executive Retention Agreement
		

		
			Personal and Confidential
		

		
			 
		

		
			November 7, 2018
		

		
			Re:       Retention Bonus
		

		
			Dear Scott Scheirman:
		

		
			 
		

		
			On behalf of CPI Card Group Inc. (the “Company”), I am pleased to offer you the opportunity to receive a retention bonus if you agree to the terms and conditions contained in this letter agreement (this “Agreement”), which shall be effective as of the date you execute and return a copy of this Agreement (such date, the “Effective Date”).
		

		
			1.         Retention Bonus.  Subject to the terms and conditions set forth herein, you will receive a cash lump sum payment in the amount of $690,000 (the “Retention Bonus”) on the next regularly scheduled administratively feasible payroll following the Effective Date.  The Retention Bonus will vest and become non-forfeitable on the earlier of March 13, 2020 or a Change in Control (the “Vesting Date) You agree that in the event your employment with the Company terminates for any reason other than a Qualifying Termination before the Vesting Date, you will be required to repay to the Company within ten (10) business days of such termination 100% of the After-Tax Value of the Retention Bonus.  Notwithstanding anything to the contrary contained herein, in the event of your Qualifying Termination before the Vesting Date and if you execute and do not revoke the release described in Section 6.2(e) of the Employment Agreement, you will not be required to repay any portion of the Retention Bonus.
		

		
			2.         Definitions.  For purposes of this Agreement:
		

		
			“After-Tax Value of the Retention Bonus” means the aggregate amount of the Retention Bonus net of any taxes you are required to pay in respect thereof and determined taking into account any tax benefit that may be available in respect of such repayment.  The Company shall determine in good faith the After-Tax Value of the Retention Bonus, which determination shall be conclusive and binding.
		

		
			“Annual Base Salary”,  “Annual Bonus”, “Cause”, “Disability” and “Target Bonus” shall each have the meaning set forth in your Employment and Non-Competition Agreement, dated September 25, 2017 (the “Employment Agreement”).
		

		
			“Change in Control” shall have the meaning set forth in the Company’s current Omnibus Incentive Plan, as amended and restated effective September 25, 2017.
		

		
			
		

		
			

		 

		

			1

		

 

		

		
			 
		

		
			“Good Reason” means any of the following, in each case, without your consent: (i) a change in your title or any material diminution of your duties, responsibilities or authority or the assignment of any duties or responsibilities inconsistent with your position, in each case, compared to what was in effect as of the Effective Date; (ii) a reduction of your Annual Base Salary or a failure to provide you a Target Bonus opportunity for 2019 of at least $1,035,000 on an annualized basis or a Target Bonus opportunity for 2020 at least equal to your Annual Base Salary on an annualized basis; (iii) a relocation of your principal office location more than fifty (50) miles from the Company’s offices at which you are based as of the Effective Date; (iv) you are not elected to or are removed from the Company’s Board of Directors; or (v) any other action or inaction by the Company which constitutes a material breach of this Agreement, the Employment Agreement or any other agreement with the Company.  Notwithstanding the foregoing, the occurrence of an event that would otherwise constitute Good Reason will cease to be an event constituting Good Reason upon any of the following: (x) your failure to provide written notice to the Company within thirty (30) days of the first occurrence of such event; or (y) correction of such occurrence by the Company within thirty (30) days following receipt of your written notice described in (x).
		

		
			“Qualifying Termination” means the termination of your employment (i) by the Company for a reason other than Cause, (ii) by you for Good Reason, or (iii) due to your death or Disability.
		

		
			3.         Release.  As a condition to receiving the Retention Bonus, you hereby agree to release any and all Claims (as defined below) against the Company, its affiliates and their respective directors, officers and employees (the “Released Parties”).  “Claims” means claims, charges or complaints for, or related to, any breach of contract, violation of any statute or law, or tortious conduct occurring, or based on events occurring, on or before the date of this Amendment; provided that Claims do not include, and you are not releasing: (a) any claims that may not be released as a matter of law, (b) any claims or rights that arise after you sign this Agreement (including claims based on an event occurring after the date you sign this Agreement), (c) any claims or rights with respect to accrued compensation or benefits, (d) any claims or rights for indemnification, advancement of defense costs or other fees and expenses and related matters, arising as a matter of law or under the Employment Agreement, the organizational documents of the Company or its affiliates or under any applicable insurance policy with respect to your liability as an employee, director, manager or officer of the Company or its affiliates; and (e) any claims or rights under the directors and officers and other insurance policies of the Company and its affiliates.  As additional consideration for your agreement to release the Released Parties, the Company, on behalf of itself and each of the Released Parties, hereby releases any and all Claims that the Company or its subsidiaries may have against you that are known by any member of the Board (other than you), excluding Claims described in (a) and (b) and Claims based on fraud or illegal conduct.
		

		
			4.         Employment Agreement.  For 2019 only, you hereby acknowledge and agree that your opportunity to be paid and retain the Retention Bonus, as well as your opportunity to participate in an executive incentive plan to be adopted by the Company following the Effective Date with an annualized Target Bonus of no less than $1,035,000 on an annualized basis  (and that otherwise satisfies the provisions of Section 2.3(b) of the Employment Agreement), shall satisfy the Company’s obligations under Sections 2.3(b) and (c) of the Employment Agreement.  Commencing with 2020, you shall be entitled to an Annual Bonus as described in Section 2.3(b) of the Employment Agreement with a Target Bonus of not less than 100% of your Annual Base
		

		
			
		

		
			

		 

		

			2

		

 

		

		
			 
		

		
			Salary.  Except as otherwise specifically provided herein, all terms of the Employment Agreement remain in full force and effect.  For the avoidance of doubt, in the event of your termination of employment, the provisions of Section 6.2 of the Employment Agreement shall apply, and your right to retain the Retention Bonus pursuant to this Agreement shall be in addition to, and not in lieu of, any payments or benefits to which you may be entitled under Section 6.2.
		

		
			5.         Withholding Taxes.  The Company may withhold from any and all amounts payable to you hereunder such federal, state and local taxes as the Company determines in its sole discretion may be required to be withheld pursuant to any applicable law or regulation.
		

		
			6.         No Right to Continued Employment.  Nothing in this Agreement will confer upon you any right to continued employment with the Company (or its subsidiaries or their respective successors) or to interfere in any way with the right of the Company (or its subsidiaries or their respective successors) to terminate your employment at any time.
		

		
			7.         Other Benefits.  The Retention Bonus is a special payment to you and will not be taken into account in computing the amount of salary or compensation for purposes of determining any bonus, incentive, pension, retirement, death or other benefit under any other bonus, incentive, pension, retirement, insurance or other employee benefit plan of the Company, unless such plan or agreement expressly provides otherwise.
		

		
			8.         Governing Law.  This Agreement will be governed by, and construed under and in accordance with, the internal laws of the State of Colorado, without reference to rules relating to conflicts of laws.
		

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

		
			10.       Entire Agreement; Amendment.  This Agreement constitutes the entire agreement between you and the Company with respect to the Retention Bonus and supersedes any and all prior agreements or understandings between you and the Company with respect to the Retention Bonus, whether written or oral.  This Agreement may be amended or modified only by a written instrument executed by you and the Company.
		

		
			11.       Section 409A Compliance.  Although the Company does not guarantee the tax treatment of the Retention Bonus, the intent of the parties is that the Retention Bonus be exempt from the requirements of Section 409A of the Internal Revenue Code of 1986, as amended and the regulations and guidance promulgated thereunder, and accordingly, to the maximum extent permitted, this Agreement shall be interpreted in a manner consistent therewith.
		

		
			12.       Miscellaneous.  The provisions of Sections 8.3 (Notices), 8.4 (Assignment), 8.6 Severability), 8.7 (Waivers), 8.9 (Third Parties), 8.13 (Survival), 8.14 (Legal Counsel), 8.15 (Attorneys’ Fees), and 8.16 (Headings) of the Employment Agreement shall apply to this Agreement in the same manner as such provisions apply to the Employment Agreement.
		

		
			[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
		

		
			 
		

		
			 
		

		
			

		 

		

			3

		

 

		

		
			 
		

		
			This Agreement is intended to be a binding obligation on you and the Company.  If this Agreement accurately reflects your understanding as to the terms and conditions of the Retention Bonus, please sign, date, and return to me one copy of this Agreement.  You should make a copy of the executed Agreement for your records.
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						Very truly yours,

					
						 

				
	
					
						 

					
					
						/s/ Nicholas Peters

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Nicholas Peters

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Chairman, CPI Card Group Inc
Compensation Committee of the Board of Directors

				

		
			 
		

		
			The above terms and conditions accurately reflect our understanding regarding the terms and conditions of the Retention Bonus, and I hereby confirm my agreement to the same.
		

			
					
						 

					
					
						 

				
	
					
						Scott Scheirman

					
					
						 

				
	
					
						NAME

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						/s/ Scott Scheirman

					
					
						 

				
	
					
						SIGNATURE

					
					
						 

				
	
					
						 

					
					
						 

				

		
			 
		

		 

		

			Signature Page to Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00293-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00293-of-00352.parquet"}]]