Document:

f8k022712ex10iv_inspired.htm

Exhibit 10.4

 

This instrument prepared by 

And when recorded deliver to:

 

Daniel D. White, Esq.

LAW OFFICE OF DANIEL D. WHITE 

One Corporate Plaza Drive, Suite 110 

Newport Beach, California 92660-7924

 

STATE OF FLORIDA 

COUNTY OF DUVAL

 

MORTGAGE AND SECURITY AGREEMENT

 

THIS MORTGAGE AND SECURITY AGREEMENT (this "Mortgage") is dated June 24, 2013, from INSPIRED BUILDERS, INC., a Nevada corporation, whose address is 233 Wilshire Boulevard, Santa Monica, CA 90401 (hereinafter the "Mortgagor"), to BONAIR, LLC, a Nevada limited liability company, whose address is One Corporate Plaza Drive, Suite 110, Newport Beach, CA 92660 (hereinafter the "Mortgagee"), WITNESSETH:

 

THIS IS A FIRST MORTGAGE.

 

SECTION 1

 

1.1              PREMISES. The Mortgagor, for and inconsideration of the premises, as security for the Secured Indebtedness,

as that term is hereinafter defined, and other good and valuable consideration, the receipt of which is hereby acknowledged, does hereby bargain, sell, convey and grant unto the Mortgagee, its successors and assigns, the following (hereinafter collectively the "Premises"):

 

(a)           REAL PROPERTY. That certain real property (the "Real Property") lying and being in Duval County, Florida, and being more particularly described as follows:

 

SEE EXHIBIT "A" ATTACHED HERETO AND INCORPORATED HEREIN

 

(b)           IMPROVEMENTS. All buildings, structures and improvements of every nature whatsoever now or hereafter situated on the Real Property, all building materials, plans, specifications, drawings and books and records pertaining to design or construction of any buildings, structures and improvements now or hereafter situated on the Real Property, and all gas and electric fixtures, radiators, heaters, engines and machinery, boilers, ranges, elevators and motors, plumbing and heating fixtures, carpeting and other floor coverings, fire extinguishers and any other safety equipment required by governmental regulation or law, washers, dryers, water heaters, mirrors, mantles, air conditioning apparatus, refrigeration plants, refrigerators, cooking apparatus and appurtenances, window screens, awnings and storm sashes which are or shall be attached to said buildings, structures or improvements and all other furnishings, fixtures, machinery, equipment, appliances, materials, chattels, inventory, accounts, farm products, consumer goods, general intangibles and personal property of every kind and nature whatsoever now or hereafter owned by the Mortgagor and located in, on or about or used or intended to be used with or in connection with the use, operation and enjoyment of the Real Property, including all extensions, additions, improvements, betterments, after-acquired property, renewals, replacements and substitutions, or proceeds from a permitted sale of any of the foregoing, and all the right, title and interest of the Mortgagor in any such furnishings, furniture, fixtures, machinery, equipment, appliances, and personal property subject to or covered by any prior security agreements, conditional sales contract, chattel mortgage or similar liens or claims, all of which are hereby declared and shall be deemed to be fixtures and accessions to the Real Property and part of the Premises as between the parties hereto and all persons claiming by, through or under them.

 

 

  

 

 

(c)          APPURTENANCES. All easements, rights-of-way, strips and gores of land, vaults, streets, ways, alleys and passages, sewer rights, water rights and powers, minerals, flowers, shrubs, trees and other emblements now or hereafter located on the Real Property or under or above the same or any part or parcel thereof and all estates, rights, titles, interests, privileges, liberties, tenements, hereditaments and appurtenances, reversions and remainders, whatsoever, in any way belonging, relating or appertaining to the Real Property or Improvements or any part thereof, or which hereafter shall in any way belong, relate or be appurtenant thereto, whether now owned or hereafter acquired by the Mortgagor.

 

TO HAVE AND TO HOLD the same, together with all and singular the tenements, hereditaments and appurtenances thereunto belonging or in any way appertaining, to the Mortgagee, its successors and assigns in fee simple forever.

 

1.2              PERMITTED ENCUMBRANCES The Mortgagor, for itself, its successors, assigns, covenants with the Mortgagee, its successors and assigns, that: (i) the Mortgagor is indefeasibly seized of the Premises in fee simple; that the Mortgagor has full power and lawful right to convey the same in fee simple as aforesaid; that it shall be lawful for the Mortgagor, its successors and assigns at all times peaceably and quietly to enter upon, hold, occupy and enjoy the Premises and every part thereof; that the Premises and every part thereof is free from all encumbrances of every kind and character except for taxes assessed for the year of closing and those matters, if any, described in the title insurance commitment issued in connection herewith (the "Permitted Encumbrances"); that the Mortgagor will make such further assurances to perfect the fee simple title to the Premises in the Mortgagee, its successors and assigns, as may reasonably be required; that the Mortgagor does hereby fully warrant the title to the Premises and every part thereof and will defend the same against the lawful claims of all persons whomsoever except for the Permitted Encumbrances; (ii) the Mortgagor shall duly, promptly and fully perform, discharge, execute, effect, complete, comply with and abide by each and every of the stipulations, agreements, conditions and covenants of the Note and all other documents or instruments evidencing or securing the Secured Indebtedness, as those terms are hereinafter defined; (iii) the Premises and its use fully complies with all applicable building and zoning codes and other land use regulations, any applicable environmental laws or regulations, and any other applicable laws or regulations; (iv) no part of the Real Property has been artificially filled; and (v) the Mortgagor has lawful access to the Premises from a public road.

 

1.3              SECURED INDEBTEDNESS. This conveyance is intended to be and is a real property Mortgage and a "Security Agreement" governed by the laws of the State of Florida concerning mortgages and the Uniform Commercial Code as adopted in Florida and is intended to secure the payment of the following (the "Secured Indebtedness"):

 

	
  

	
(i)

	
A promissory note in the principal sum of Seven Hundred Fifty Thousand and 00/100 Dollars ($750,000.00), dated June 24, 2013; and

 

	
  

	
(ii)

	
The compliance with all the covenants, agreements and stipulations of this Mortgage, the Note, and any and all documents or instruments evidencing, securing or otherwise executed in connection with the Secured Indebtedness.

 

1.4              ASSIGNMENT OF LEASES AND RENTS. The Mortgagor hereby assigns, transfers, sets over and pledges to the Mortgagee, its successors and assigns, as further security and means for the discharge of the Secured Indebtedness, all leases of all or any part of the Premises now made, executed or delivered, whether written or verbal, or to be hereafter made, be the same written or verbal, and all of the rents, issues and profits of the Premises and the improvements now or hereafter thereon, which rents, issues and profits may become due and payable at any time during the life of this Mortgage when any amount shall be due and unpaid by the Mortgagor hereunder or when the Mortgagor shall otherwise be in default hereunder, whether said rents, issues and profits shall be due from the present or any future tenants or leases thereof, with full power and authority in the Mortgagee or its assigns to collect and receive the same from said tenants or leases or from any real estate agent or other person collecting the same, and to give proper receipts and acquittances therefor and after paying all commissions of any rental agent collecting the same and any attorney's fees and other expenses incurred in collecting the same to apply the net proceeds of such collections upon any and all indebtedness, obligations, undertakings or liabilities of the Mortgagor hereunder.

 

 

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SECTION 2

 

The Mortgagor further covenants and agrees as follows:

 

2.1              PAYMENT OF INDEBTEDNESS. To pay all and singular the principal and interest and other sums of money payable by virtue of the Secured Indebtedness, as in the Note, any instrument or instruments evidencing one or more future or additional advances, and/or this Mortgage provided, promptly on the days that the same respectively become due.

 

2.2              MAINTENANCE AND REPAIR. To keep perfect and unimpaired the security hereby given and to permit, commit or suffer no waste, impairment or deterioration of the Premises or any part thereof. The Mortgagor shall comply with all restrictive covenants, statutes, ordinances and requirements of any governmental authority relating to the Premises and shall not join in, consent to or initiate any change in such restrictive covenants, statues, ordinances or requirements without the express written consent of the Mortgagee.

 

2.3               TAXES, LIENS AND OTHER CHARGES. To pay all and singular the taxes, assessments, obligations and encumbrances of every nature now on the Premises or that hereafter may be levied, assessed or imposed thereon when due and payable according to law and before they become delinquent; and if the same not be promptly paid the Mortgagee may, at any time either before or after delinquency, pay the same without waiving or affecting its right to foreclose this Mortgage or an other right hereunder and all sums so paid shall become a part of he Secured Indebtedness and, at the option of the Mortgagee, shall bear interest from the date of each such payment at the maximum rate allowed by law. Upon notification from the Mortgagee, the Mortgagor shall pay to the Mortgagee, together with and in addition to the payments of principal and interest payable under the terms of the Note secured hereby, on installment paying dates in the Note, until said Note is fully paid or until notification from the Mortgagee to the contrary, an amount reasonably sufficient (as estimated by the Mortgagee) to provide the Mortgagee with funds to pay said taxes, assessments, insurance premiums, rents and other charges next due so that the Mortgagee will have sufficient funds on hand to pay the same thirty (30) days before the date upon which they become past due. In no event shall the Mortgagee be liable for any interest on any amount paid to it as herein required, and the money so received shall be held in a separate account pending payment or application thereof as herein provided. As required by the Mortgagee, the Mortgagor shall furnish to the Mortgagee, at least thirty (30) days before the date on which same will become past due, an official statement of the amount of said taxes, assessments, insurance premiums and rents next due, and the Mortgagee shall ay said charges to the amount of the then unused credit therefor as and when they become severally due and payable. An official receipt therefor shall be conclusive evidence of such payment and the validity of such charges.

 

2.4              INSURANCE.The Mortgagor will keep, or cause tenants of the Premises to keep, the Premises insured against loss or damage by fire, flood and such other risks and matters including, without limitation, business interruption, rental loss, public liability and boiler insurance, as the Mortgagee may from time to time require in amounts required by the Mortgagee, not exceeding in the aggregate 100% of the full insurable value of the Premises, and shall pay, or cause the tenants of the Premises to pay, the premiums for such insurance as same become due and payable. All policies of insurance (the "Policies") shall be issued by an insurer acceptable to the Mortgagee and shall contain the standard Florida non-contribution provision naming the Mortgagee as the person to which all payments made by such insurance company shall be paid. The Mortgagor will assign and deliver the Policies to the Mortgagee. Not later than thirty (30) days prior to the expiration date of each ofthe Policies, the Mortgagor will deliver to the Mortgagee evidence satisfactory to the Mortgagee of the renewal of each of the Policies. If the Premises shall be damaged or destroyed, in whole or in part, by fire or other casualty, the Mortgagor shall give prompt notice thereof to the Mortgagee. Sums paid to the Mortgagee by any insurer may be retained and applied by the Mortgagee toward payment of the Secured Indebtedness in such priority and proportions as the Mortgagee in its discretion shall deem proper or, at the discretion of the Mortgagee, the same may be paid, either in whole or in part, to the Mortgagor for such purposes as the Mortgagee shall receive and retain such insurance money, the lien of this Mortgage shall be reduced only by the amount thereof received after expenses of collection and retained by the Mortgagee and actually applied by the Mortgagee in reduction of the Secured Indebtedness. The foregoing rights of the Mortgagee with respect to any proceeds of insurance is subject and subordinate to the rights of any mortgagee whose mortgage recorded against the Real Property is superior in right to this Mortgage.

 

2.5              EXPENSES. To pay all and singular the costs, charges and expenses, including reasonable attorneys' fees and costs of abstracts of title, incurred or paid at any time by the Mortgagee or its assigns in collecting or attempting to collect the Secured Indebtedness or in foreclosing or attempting to foreclose this Mortgage or in enforcing any of its rights hereunder or incurred or paid by it because of the failure on the part of the Mortgagor promptly and fully to perform the agreements and covenants of the instrument or instruments evidencing the Secured Indebtedness and this Mortgage; and said costs, charges and expenses shall be immediately due and payable and shall be secured by the lien of this Mortgage.

 

 

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2.6              CONDEMNATION.Notwithstanding any taking of any property herein conveyed and agreed to be conveyed, by eminent domain, alteration of the grade of any street or other injury to, or decrease in value of, the Premises by any public or quasi-public authority or corporation, the Mortgagor shall continue to pay principal and interest on the Secured Indebtedness, and any reduction in the Secured Indebtedness resulting from the application by the Mortgagee of any award or payment for such taking, alterations, injury or decrease in value of the Premises, as hereinafter set forth, shall be deemed to take effect only on the date of such receipt; and said award or payment may, at the option of the Mortgagee, be retained and applied by the Mortgagee toward payment of the Secured Indebtedness, or be paid over, wholly or in part, to the Mortgagor for the purpose of altering, restoring or rebuilding any part of the Premises which may have been altered, damaged or destroyed as a result of any such taking, alteration of grade, or other injury to the Premises, or for any other purpose or object satisfactory to the Mortgagee, but the Mortgagee shall not be obligated to see to the application of any amount paid over to the Mortgagor. If, prior to the receipt by the Mortgagee of such award or payment, the Premises shall have been sold on foreclosure of this Mortgage, the Mortgagee shall have the right to receive said award or payment to the extent of any deficiency found to be due upon such sale, with legal interest thereon, whether or not a deficiency judgment on this Mortgage shall have been sought or recovered or denied, and of the reasonable counsel fees, costs and disbursements incurred by the Mortgagee in connection with the collection of such award or payment. The foregoing rights of the Mortgagee with respect to any proceeds of any condemnation with respect to the Premises is subject and subordinate to the rights of any mortgagee whose mortgage recorded against the Real Property is superior in right to this Mortgage.

 

2.7              REPAIRS BY MORTGAGEE. The Mortgagee shall have the right from time to time to expend such sums as it shall deem necessary to keep the Premises in good condition and repair, and all sums so expended shall be added to and become part of the Secured Indebtedness and shall bear interest and be payable as herein provided for the payment of the Secured Indebtedness and interest, and the lien of this Mortgage shall extend to and secure the same.

 

2.8              INDEMNIFICATION. The Mortgagor shall protect, indemnify and save harmless the Mortgagee from and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses (including without limitation attorneys' fees and expenses) imposed upon or incurred by or asserted against the Mortgagee by reason of (a) ownership of this Mortgage, the Premises or any interest therein or receipt of any rents; (b) any accident, injury to or death of persons or loss of or damage to property occurring in, on or about the Premises or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (c) any use, nonuse or condition in, on or about the Premises or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (d) any failure on the part of the Mortgagor to perform or comply with any of the terms of this Mortgage; or (e) performance of any labor or services or the furnishing of any materials or other property in respect of the Premises or any part thereof. Any amounts payable to the Mortgagee by reason of the application of this paragraph shall become part of the Secured Indebtedness and shall bear interest and be payable as herein provided for the payment of the Secured Indebtedness and interest, and the lien of this Mortgage shall extend to and secure the same. The obligations fo the Mortgagor under this paragraph shall survive any termination or satisfaction of this Mortgage.

 

 

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2.9              HAZARDOUS SUBSTANCES. The Mortgagor shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances (hereinafter defined) on or in the Premises. The Mortgagor shall not do, nor allow anyone else to do, anything affecting the Premises that is in violation of any Environmental Law (hereinafter defined). The Mortgagor shall promptly give the Mortgagee written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Premises and any Hazardous Substance or Environmental Law of which the Mortgagor has actual knowledge. If the Mortgagor learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any Hazardous Substance affecting the Premises is necessary, the Mortgagor shall promptly take all necessary remedial actions in accordance with Environmental Law at the Mortgagor's expense. As used in this paragraph, "Hazardous Substances" are those substances defined as toxic or hazardous substances by Environmental Law, and the following substances: (I) gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides and volatile solvents (other than such small quantities thereof as are generally recognized as being appropriate to normal use and to maintenance of the Premises), and (ii) materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph, "Environmental Law" means federal laws and laws of the jurisdiction where the Premises are located that relate to health, safety or environmental protection. To the maximum extent permitted by applicable law, the Mortgagor shall indemnify the Mortgagee and he Mortgagee's successors, assigns, members, managers, officers, directors, shareholders, employees, affiliates and agents (collectively, the "Indemnitees") against any and all liabilities, losses, damages or expenses suffered or incurred by Indemnitees as the result of the Mortgagor's failure to observe or perform any of the provisions of this paragraph, as a result of the failure of Mortgagor or any other person to comply with any Environmental Law affecting the Premises or as a result of the presence, storage, disposal or treatment on the Premises of any Hazardous Substance. The indemnification obligations of the Mortgagor under this paragraph shall survive payment or satisfaction of the Secured Indebtedness and any acquisition of the Premises by the Mortgagee by foreclosure of this Mortgage, by conveyance in lieu of foreclosure or otherwise, and such provisions shall remain in full force and effect as long as the possibility exists that Indemnitees may suffer or incur any such liabilities, losses, damages or expenses.

 

SECTION 3

 

3.1              EVENT OF DEFAULT. Each of the following events shall constitute an "Event of Default" under this Mortgage: (i) should the Mortgagor fail to pay the Secured Indebtedness, or any part thereof, when and as the same shall become due and payable; (ii) should any warrant or representation of the Mortgagor herein contained, or contain ed in any instrument, transfer, certificate, statement, conveyance, assignment or loan agreement given with respect to the Secured Indebtedness, prove untrue or misleading in any material aspect; (iii) should the Premises be subject to actual or threatened waste; (iv) should any federal tax lien or claim of lien for labor or material be filed of record against the Mortgagor or the Premises and not be removed by payment or bond within thirty (30) days from date of recording; (v) should any claim of priority to this Mortgage by title, lien or otherwise be asserted in any legal or equitable proceeding which is not fully covered by applicable title insurance; (vi) should the Mortgagor or any guarantor of the Secured Indebtedness make any guarantor of the Secured Indebtedness or of any of the Mortgagor's or any guarantor's of the Secured Indebtedness property be appointed, or should any petition for the bankruptcy, reorganization or arrangement of Mortgagor or any guarantor of the Secured Indebtedness pursuant to the Federal Bankruptcy Act or any similar statue be filed, or should the Mortgagor or any guarantor of the Secured Indebtedness be adjudicated a bankrupt or insolvent, or should the Mortgagor or any guarantor of the Secured Indebtedness in any proceeding admit his insolvency or inability to pay his debts as they fall due or should the Mortgagor, if a corporation, be liquidated or dissolved; (vii) should the Mortgagor fail to keep, observe, perfoi in, carry out and execute in every particular the covenants, agreement, obligations and conditions set out in this Mortgage or in the Note or in any instrument given with respect to the Secured Indebtedness; (viii) should the Mortgagor transfer, convey, encumber, mortgage, grant a security interest in or otherwise convey any interest in the Premises whatsoever without the prior written consent of the Mortgagee, excluding the creation of a purchase money security interest for household appliances, a transfer by devise, descent or by operation of law upon the death of a joint tenant or the grant of any leasehold interest of three (3) years or less not containing an option to purchase; (ix) should there occur, without the prior written consent of the Mortgagee, any change in the ownership of the Mortgagor; (x) should an event of default or an event that but for the passage of time or giving of notice would constitute an event of default occur under the terms of any mortgage or any note secured by said mortgage or any other document or security instrument given in connection therewith given from the Mortgagor to the Mortgagee; (xi) should an event of default or an event that but for the passing of time or giving of notice would constitute an event of default occur under the terms of any other mortgage encumbering all or any portion of the Premises; or (xii) should the Mortgagor hereafter attempt to limit the maximum principal amount which may be secured by this Mortgage.

 

 

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3.2              REMEDIES. If an Event of Default occurs and remains uncured, then in either or any such event, the aggregate sum or sums secured hereby then remaining unpaid, with interest accrued at that time, and all moneys secured hereby, shall become due and payable forthwith, or thereafter, at the option of the Mortgage, its assigns, as fully and completely as if all of the said sums of money were originally stipulated to be paid on such date, anything in the Note or any instrument or instruments on in this Mortgage to the contrary notwithstanding; and thereupon, or thereafter, at the option of the Mortgage, or its assigns, without notice or demand, suit at law or in equity may be prosecuted as if all moneys secured hereby had matured prior to its institution. The Mortgagee, or its assigns, may do either or both of the following as to the amount so declared due and payable: (i) bring an action to enforce payment of the amount so declared due and payable, with or without bringing an action to foreclose this Mortgage; and/or (ii) foreclose this Mortgage as to the amount so declared due and payable, and the Premises, or any part or parts thereof, in one or more sales as determined by the Mortgagee, shall be sold to satisfy and pay the same with costs, expenses and allowances. In addition, the Mortgagee shall also be entitled to take such action and avail itself of such remedies as may be available under the Uniform Commercial Code in effect in the State of Florida.

 

3.3              RECEIVER. In the event a suit shall be instituted to foreclose this Mortgage, the Mortgage, its successors or assigns, shall be entitled to apply at any time pending such foreclosure suit to the court having jurisdiction thereof for the appointment of a receiver for all and singular the Premises and of all the rents, income, profits, issues and revenues thereof, from whatsoever source derived, with the usual powers and duties of receivers in like cases, and such appointment shall be made by such court as a matter of strict right to the Mortgage, its successors or assigns, without reference to the adequacy or inadequacy of the value of the property hereby mortgaged or to the solvency or insolvency of the Mortgagor, the Mortgagor's legal representative, successors or assigns, and that such rents, profits, incomes, issues, and revenues shall be applied by such receiver to the payment of the Secured Indebtedness, costs, and charges according to the order of said court. The Mortgagor hereby specifically waives the right to object to the appointment of a receiver as described herein and hereby expressly consents that such appointment shall be made as an admitted equity and is the Mortgagee's absolute right, and that the appointment may be done without notice to the Mortgagor. The Mortgagor further consents to the appointment of the Mortgagee or any officer or employee of the Mortgagee as receiver.

 

SECTION 4

 

4.1              PRIOR LIENS, LEASEHOLD, OR CONDOMINIUM. If this is a junior Mortgage, or if this is a mortgage on a leasehold estate, the Mortgagor shall pay all installments of principal and interest and perform each and every covenant and obligation of the prior mortgage or the lease. Failure of the Mortgagor to do so shall constitute a default hereunder. Upon failure of the Mortgagor to do so, the Mortgagee may (but shall not be required to) make such payments or perform such covenants or obligations and the cost of same, together with interest at the maximum rate allowed by law, shall be payable by the Mortgagor upon demand by the Mortgagee and shall be secured by the lien of this Mortgage. If this is a junior Mortgage and the Mortgagor increases the amount due on any prior mortgage without the Mortgagee's prior written consent, the Mortgagee may, at its option, immediately or thereafter declare this Mortgage and the indebtedness secured hereby due and payable forthwith and thereupon may, at its option, proceed to foreclose this Mortgage. If this is a Mortgage on a condominium or a planned unit development, Mortgagor shall perform all of the Mortgagor's obligations under the declaration or covenants creating or governing the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by the Mortgagor and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof.

 

4.2              NOTICES. Any notice, election, or other communication required or permitted hereunder shall be in writing and shall be either: (i) delivered in person; (ii) sent by overnight courier service; or (iii) sent by certified or registered United States mail, return receipt requested, to the addresses for the Mortgagor and the Mortgagee set forth on the first page of this Mortgage. Any notice, election, or other communication delivered or mailed as aforesaid shall, if delivered in person, be effective upon date of delivery, if couriered by overnight delivery service be effective on the date of delivery and if mailed, such notice shall be effective upon date of actual receipt. Any notice delivered to the address or addresses set forth above to the respective party shall be deemed delivered if delivery thereof is rejected or refused at the address provided. Each party hereto may change its address and addressee for notice, election, and other communication from time to time by notifying the other parties hereto of the new address and addressee in the manner provided for giving notice herein.

 

 

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4.3              SUBROGATION. To the extent of the Secured Indebtedness, the Mortgagee is hereby subrogated to the lien or liens and to the rights of the owners and holders thereof of each and every mortgage, lien or other encumbrance on the Premises which is paid or satisfied, in whole or in part, from the proceeds of the loan evidenced by the Secured Indebtedness or from the proceeds of any future or additional advances, and the liens of said mortgages or other encumbrances shall be and the same and each of them hereby are preserved and shall pass to and be held by the Mortgagee herein as security for the Secured Indebtedness, the same extent that it would have been preserved and would have been passed to and been held by the Mortgagee had it been duly and regularly assigned, transferred, set over and delivered unto the Mortgagee by separate deed of assignment, notwithstanding the fact that the same may be satisfied and cancelled of record, it being the intention that the same will be satisfied and cancelled of record by the holders thereof at or about the time of the recording of this Mortgage.

 

4.4              GENERAL. The provisions hereof shall be binding upon and shall inure to the benefit of the Mortgagor, its successors and assigns (including without limitation subsequent owners of the Premises), and shall be binding upon and inure to the benefit of the Mortgagee, its successors or assigns of any future holder of the Secured Mortgage and may not be changed, terminated or modified orally or in any other manner than by an instrument in writing signed by the party against whom enforcement is sought. The captions or headings at the beginning of each Section hereof are for the convenience of the parties are not a part of this Mortgage. In no event shall all charges in the nature of interest charged or taken on this Mortgage or in connection with the Secured Indebtedness exceed the maximum allowed by law, and in the event such charges cause the interest to exceed said maximum allowed by law, such interest shall be recalculated, and such excess shall be credited to principal, it being the intent of the parties that under no circumstances shall the Mortgagor be required to pay any charges in the nature of interest in excess of the maximum rate allowed by law. In the case any one or more of the covenants, agreements, terms, or provisions contained in this Mortgage or in the Note shall be held or found invalid, illegal, or unenforceable in any respect, the validity of the remaining covenants, agreements, terms, or provisions contained herein and in the Note shall in no way be affected, prejudiced, or disturbed thereby. This Mortgage shall be governed and construed by the laws of the State of Florida. No act of the Mortgagee shall be construed as an election to proceed under any one provision of the Mortgage or of the applicable statutes of the State of Florida to the exclusion of any other such provision, anything herein otherwise to the contrary notwithstanding. Time is of the essence of this Mortgage. No waiver of any covenant herein or in the obligations secured hereby shall at any time hereafter be held to be a waiver of any of the other terms hereof or of the Secured Indebtedness secured hereby or future waiver of the same covenant. The use of any gender shall include all other genders. The singular shall include the plural. The Mortgagor will execute and deliver promptly to the Mortgagee on demand at any time or times hereafter any and all further instruments reasonably required by the Mortgagee to carry out the provisions of this Mortgage.

 

4.5              ENTIRE AGREEMENT, WAIVER OF JURY TRIAL. It is understood and agree that: 

ANY CONTEMPORANEOUS OR PRIOR REPRESENTATIONS, STATEMENTS, UNDERSTANDINGS AND AGREEMENTS, ORAL OR WRITTEN, BETWEEN THE MORTGAGOR AND THE MORTGAGEE ARE MERGED INTO THIS MORTGAGE, WHICH ALONE FULLY AND COMPLETELY EXPRESSES THEIR AGREEMENT, AND THAT THE SAME IS ENTERED INTO AFTER FULL INVESTIGATION, NEITHER PARTY RELYING ON ANY STATEMENT OR REPRESENTATION MADE BY THE OTHER WHICH IS NOT EMBODIED IN THIS MORTGAGE. THE MORTGAGEE AND THE MORTGAGOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTION OF EITHER PARTY. THIS PARAGRAPH IS A MATERIAL INDUCEMENT FOR THE MORTGAGEE MAKING THE LOAN TO MORTGAGOR.

 

 

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The Mortgagor has executed this Mortgage as of the date and year first above written.

 

	Signed, sealed and delivered 	 	THE MORTGAGOR	 
	in the presence of:	 	 	 
	  	 	
INSPIRED BUILDERS, INC., 

a Nevada corporation

	  
	 	 	 	 
	  	 	 	  
	[Type/Print Name of Witness] 	 	MATTHEW J. NORDGREN 	 
	 	 	Chief Executive Officer	 
	 	 	 	 
	 	 	 	 
	[Type/Print Name of Witness] 	 	 	 

 

 

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EXHIBIT "A"

 

LEGAL DESCRIPTION

 

PARCEL D:

 

A part of the unsurveyed portion of Section 14, Township 1 South, Range 27 East, Duval County, Florida, as recorded in Deed Book 1754, page 427 and Official Records Book 201, page 318, said public records, being more particularly described as follows:

 

Commence at the intersection of the northerly prolongation of the east line of Government Lot 4, Section 23, Township 1 South, Range 27 East, and the northerly right-of-way line of Hecksher Drive (a 200 foot right-of-way as now established); thence North 89 degrees 20 minutes 20 seconds West along said right-of-way, a distance of 1200 feet to the Point of Beginning; thence continue North 89 degrees 20 minutes 20 seconds West, a distance of 624 feet, more or less, to the approximate high water line of Dunn's Creek; thence northeasterly, easterly and southeasterly along the meanderings of the approximate high waterline of Dunn's Creek to a point that lies North 0 degrees 27 minutes East and 62 feet from the point of beginning; thence South 0 degrees 27 minutes West, 62 feet to the Point of Beginning.

 

 

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ACKNOWLEDGMENT

  

	STATE OF CALIFORNIA 	)	 	 
	 	) ss.	 	 
	

COUNTY OF LOS ANGELES

	)	 	 

 

On                                , before me                                                     , Notary Public in and for said State, personally appeared                                                              ,  who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

	 	 	 
	
Notary Public in and for said

	 	 
	

County and State 

	[SEAL]	 

 

 

10f8k022712ex10v_inspired.htm

Exhibit 10.5

 

SECURITIES EXCHANGE AGREEMENT

 

THIS SECURITIES EXCHANGE AGREEMENT (this “Agreement”), is made and entered into as of the ___ day of June 2013 by and between INSPIRED BUILDERS, INC., a Nevada corporation (the “ISRB”), NORe CAPITAL, LLC, a British Virgin Islands Business Company (“NORe”), and PALI-HOLLOWAY, LLC, a California limited liability company (“Pali-Holloway”).  ISRB, NORe and Pali-Holloway are hereinafter sometimes collectively referred to individually as a “party” or collectively as the “parties.”

 

WHEREAS, NORe is the holder of an amended and restated secured deed of trust and mezzanine promissory note in $19,000,000 principal amount, dated as of June 23, 2013 issued by Pali-Holloway, as borrower, to NORe, and in the form of Exhibit A annexed hereto and made a part hereof (the “Exchange Note”) ; and

 

WHEREAS, NORe desires to sell, assign and transfer (collectively, “Transfer”) the Exchange Note to ISRB pursuant to the note purchase and assignment agreement, dated of even date herewith and in the form of Exhibit B annexed hereto and made a part hereof (the “Assignment Agreement”); and

 

WHEREAS, in consideration for and in exchange for the Transfer of the Exchange Note to it, ISRB has agreed to issue to NORe the “ISRB Securities,” as described below..

 

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

 

ARTICLE I

The Exchange

 

Section 1.1            The Exchange.  Subject to the terms and conditions of this Agreement, on the “Closing Date” (as hereinafter defined):

 

(a)           NORe shall Transfer to ISRB, all right, title and interest in and to the Note.

 

(b)           In exchange for the Exchange Note and in full consideration therefore, ISRB shall:

 

(i)            issue to NORe $12,000,000 of ISRB common stock, $0.001 par value per share  (the “Common Stock”), represented by stock certificates evidencing an aggregate of ___________ shares of Common Stock  of ISRB or such other number of shares of Common Stock as shall be determined by dividing $12,000,000 by the closing price of ISRB Common Stock as at the Closing Date (the “ISRB Shares”); and

 

(ii)           issue to NORe, ISRB’s 2% $7,000,000 promissory note payable quarterly as to interest commencing July 1, 2016, and as to principal and all accrued interest on June 30, 2020, and in the form of Exhibit C annexed hereto and made a part hereof (the “ISRB Note”).

 

  

 

  

 

ISRB Shares and ISRB Note are hereinafter collectively referred to as the “ISRB Securities.”  The Transfer of Exchange Note in exchange for ISRB Securities is referred to herein as the “Securities Exchange.”

 

Section 1.2            Closing and Closing Date. The consummation of the Securities Exchange (the “Closing”) shall take place at the offices of ISRB or such other place as the parties hereto mutually agree on a date (the “Closing Date”) which shall be not later than June 30, 2013, unless such date shall be extended by mutual agreement of the parties.

 

Section 1.3            Palii-Holloway Representations and Covenants. By its execution of this Agreement, Pali-Holloway does hereby represent, warrant and agree as follows:

 

(a)           The execution and delivery of this Agreement by Pali-Holloway and the exchange of the Exchange Note from NORe to ISRB in accordance with this Agreement has been duly authorized by all necessary action on the part Pali-Holloway and no other proceeding is necessary for the execution and delivery of this Agreement by Pali-Holloway.

 

(b)           The Exchange Note has been duly executed and delivered by Pali-Holloway to NORe and constitutes a legal, valid and binding obligation of Pali-Holloway, enforceable against it in accordance with its terms, except that) the enforceability of the Exchange Note (i) may be subject to the terms of a subordination Agreement in the form of Exhibit D annexed hereto (the “Subordination Agreement”) that may be required by East West Bank to be executed and delivered by ISRB, (ii) is subject to applicable bankruptcy, insolvency or other similar Laws, now or hereinafter in effect, affecting creditors’ rights generally, and (iii) is subject to the general principles of equity (regardless of whether enforceability is considered at a proceeding at Law or in equity).

 

(c)           Pali-Holloway hereby consents in all respect to the Transfer of the Exchange Note from NORe to ISRB.

 

ARTICLE II

Representations and Warranties of NORe

 

NORe and NORe represent and warrant to ISRB as of the Closing Date as follows:

 

Section 2.1           Organization, Qualification and Corporation Power.  NORe (a) is a Corporation company duly formed, validly existing and in good standing under the Laws of the British Virgin Islands and has the requisite power and authority to own, operate or lease its properties and to carry on its business as is now being conducted and proposed to be conducted, except where the failure to be so organized, existing and in good standing or to have such power and authority would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect (as defined below) on NORe, and (b) is duly qualified and in good standing to do business in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification necessary, other than in such jurisdictions where the failure so to qualify or to be in good standing would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect on NORe.

 

  

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For purposes of this Agreement, the term “Material Adverse Effect” when used in connection with an entity means any change, event, circumstance or effect whether or not such change, event, circumstance or effect is caused by or arises in connection with a breach of a representation, warranty, covenant or agreement of such entity in this Agreement that is or is reasonably likely to be materially adverse to the business, assets (including intangible assets), capitalization, financial condition, operations or results of operations, employees or prospects of such entity taken as a whole with its subsidiaries, except to the extent that any such change, event, circumstance or effect is caused by results from (i) changes in general economic conditions, (ii) changes affecting the industry generally in which such entity operates (provided that such changes do not affect such entity in a substantially disproportionate manner).

 

For purposes of this agreement, the term “Law” shall mean any applicable foreign, federal, state or local law, statute, code, ordinance, regulation, rule, principle of common law or  other legally enforceable obligation imposed by a court or other Governmental Entity (as defined in Section 1.1 below) in the applicable jurisdiction.

 

Section 2.2           Ownership of Exchange Note.  NORe is the record and beneficial owner of 100% of the exchange Note, and, except for limitations that may be imposed upon ISRB under a Subordination Agreement, the Exchange Note is not subject to limitations on payment or enforceability of the rights of the holder thereof, other than (a) applicable bankruptcy, insolvency or other similar Laws, now or hereinafter in effect, affecting creditors’ rights generally, and (bi) general principles of equity (regardless of whether enforceability is considered at a proceeding at Law or in equity).

 

Section 2.3           Authority Relative to this Agreement.  NORe has the necessary power and authority to enter into this Agreement and to carry out its obligations hereunder.  The execution and delivery of this Agreement by NORe and the consummation by NORe of the transactions contemplated hereby have been duly authorized by all necessary action on the part of NORe and no other corporate proceeding is necessary for the execution and delivery of this Agreement by NORe, the performance by NORe of its obligations hereunder and the consummation by NORe of the transactions contemplated hereby.  This Agreement has been duly executed and delivered by NORe and, assuming the due authorization, execution and delivery of this Agreement by ISRB, constitutes a legal, valid and binding obligation of NORe, enforceable against them in accordance with its terms, except that (a) the enforceability hereof may be subject to applicable bankruptcy, insolvency or other similar Laws, now or hereinafter in effect, affecting creditors’ rights generally, and (b) the general principles of equity (regardless of whether enforceability is considered at a proceeding at Law or in equity).

 

Section 2.4           Title to Exchange Note.  NORe has acquired good and marketable title to the Exchange Note and on the Closing Date shall Transfer good and marketable title to the Exchange Note to ISRB, free and clear of all Liens.

 

Section 2.5           Investment Representations.  NORe hereby represents and warrants only with respect to himself:

 

(a)           ISRB Shares and ISRB Note will be acquired for investment for the account of NORe’s or an Affiliate thereof, , not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and NORe has no present intention of selling, granting any participation in, or otherwise making a public distribution of ISRB Securities.  Except for the assignment of ISRB Securities to an Affiliate, NORe does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation in any of ISRB Securities to such person or to any third person.

 

(b)           NORe has had an opportunity to ask questions and receive answers from ISRB regarding the terms and conditions of the offering and sale of ISRB Securities.  NORe acknowledges that (i) it has had an opportunity to review all of ISRB’s filings with the SEC of its annual, quarterly and interim reports under the Securities Exchange Act of 1934, as amended (the “ISRB SEC Reports”); (ii) an investment in ISRB Securities involves a high degree of risk, (iii) ISRB is presently a development stage company and that such corporation may never generate significant revenues or profits, (iv) an active trading market for ISRB Common Stock may not develop, and (v) the value of the IRSB Note is largely dependent upon the future business success of ISRB.

 

  

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(c)           NORe acknowledges that he has (i) such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the investment in ISRB Securities, (ii) had such risks explained to him and has determined that such investment is suitable for it in view of its financial circumstances and available investment opportunities, (iii) sufficient net worth and income to bear the economic risk of this investment, and (iv) no need for liquidity of the investment and no reason to anticipate any change in the his financial circumstances which may cause or require any sale, transfer or other distribution of ISRB Securities.

 

ARTICLE III

Representations and Warranties of ISRB

 

ISRB hereby represents and warrants to NORe as of the Closing Date as follows:

 

Section 3.1           Organization, Qualification and Corporation Power. ISRB as of the Closing Date (a) is a corporation duly organized, validly existing and in good standing under the Laws of the jurisdiction in which it is organized and has the requisite corporate power and authority and any necessary governmental authority to own, operate or lease the properties that it purports to own, operate or lease and to carry on its business as it is now being conducted and proposed to be conducted, and (b) is duly qualified as a foreign corporation to do business, and is in good standing, in each other jurisdiction where the character of its properties owned, operated or leased or the nature of its activities makes such qualification necessary, except in the case of clause.

 

Section 3.2            Authority Relative to this Agreement.  ISRB has the necessary corporate power and authority to enter into this Agreement and to carry out its obligations hereunder.

 

Section 3.3            No Conflict; Required Filings and Consents.

 

(a)           The execution and delivery of this Agreement by the of ISRB do not, and the consummation by it of the transactions contemplated hereby will not, (i) conflict with or violate any Law, court order, judgment or decree applicable to ISRB or by which any of its property is bound, (ii) violate or conflict with the Articles of Incorporation or Bylaws (or comparable organizational documents) of ISRB, or (iii) result in any breach of, or constitute a default (or an event which with notice or lapse of time of both would become a default) under, or give to others any rights of termination or cancellation of, or result in the creation of a Lien on any of the properties or assets of ISRB pursuant to any contract, instrument, permit or license to which ISRB is a party or by which ISRB or its property is bound, except in the case of clauses (i) and (iii) for conflicts, violations, breaches or defaults which, individually or in the aggregate, would not have or result in a Material Adverse Effect on ISRB.

 

(b)           Except for its filing of a Form 8-K Interim Report with the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) ISRB is not required to submit any notice, report or other filing with any Governmental Entity in connection with the execution, delivery or performance of this Agreement or the consummation of the transactions contemplated hereby the failure of which to submit would, individually or in the aggregate, have or result in a Material Adverse Effect on ISRB.  No waiver, consent, approval or authorization of any Governmental Entity or any third party is required to be obtained or made by ISRB in connection with its execution, delivery or performance of this Agreement.

 

  

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Section 3.4            Issuance of the ISRB Securities.

 

(a)           The ISRB Securities to be issued to NORe on the Closing Date have been duly authorized and, when issued and paid for in accordance with the terms hereof and thereof, will be duly and validly issued, fully paid and non-assessable, free and clear of all liens other than restrictions on transfer provided for in this Agreement hereto imposed by applicable securities laws and shall not be subject to preemptive or similar rights of stockholders.

 

(b)           The ISRB Securities will be issued in compliance with all applicable federal and state securities laws. The issue and sale of the ISRB Securities will not, immediately or with the passage of time, obligate ISRB to issue shares of its securities to any person other than NORe and will not result in a right of any holder of ISRB’s securities to adjust the exercise, conversion, exchange or reset price under such securities.

 

Section 3.5        Commitments..  No securities of ISRB are entitled to preemptive or similar rights, and no person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated hereby; Except as set forth in the ISRB SEC Reports, ISRB has not issued any other options, warrants or scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exchangeable for, or entered into any agreement giving any person any right to subscribe for or acquire, any shares of ISRB Common Stock; there are no contracts, commitments, understandings, or arrangements by which ISRB is or may become bound to issue additional shares of the capital stock of ISRB or options, securities or rights convertible into shares of capital stock of ISRB; except for customary adjustments as a result of stock dividends, stock splits, combination of shares, reorganizations, recapitalizations, reclassifications or other similar events, there are no anti-dilution or price adjustment provisions contained in any security issued by ISRB (or in any agreement providing rights to security holders) and the issuance and sale of the ISRB Securities will not obligate ISRB to issue securities to any person (other than NORe) and will not result in a right of any holder of securities to adjust the exercise, conversion, exchange or reset price under such securities; ISRB is not a party to, and it has no knowledge of, any agreement restricting the voting or transfer of any shares of the capital stock of ISRB.

 

Section 3.6        Tax Matters.  ISRB (i) has accurately and timely prepared and filed all foreign, federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all material taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith, with respect to which adequate reserves have been set aside on the books of ISRB and (iii) has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of ISRB know of no basis for such claim.  ISRB has not waived or extended any statute of limitations at the request of any taxing authority. There are no outstanding tax sharing agreements or other such arrangements between ISRB and any other corporation or entity and ISRB is not presently undergoing any audit by a taxing authority.

 

Section 3.7         Litigation. There is no pending litigation, arbitration or administrative proceeding against ISRB.

 

  

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Section 3.8         Compliance.  ISRB, except in each case as, individually or in the aggregate, has not and could not reasonably be expected to result in a Material Adverse Effect (i) is in violation of any order of any court, arbitrator or governmental body having jurisdiction over ISRB or its properties or assets, or (ii) to ISRB’s knowledge, is or has been in violation of any statute, rule or regulation of any governmental authority applicable to ISRB.

 

Section 3.10       No Directed Selling Efforts or General Solicitation. Neither ISRB nor any of its affiliates, nor any person acting on its or their behalf has conducted any “general solicitation” or “general advertising” (as those terms are used in Regulation D) in connection with the offer or sale of any of the Shares.

 

Section 3.11       Investment Company.  ISRB is not required to be registered as, and is not an affiliate of, and immediately following the Closing will not be required to register as, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

Section 3.12       Questionable Payments. Neither ISRB nor, to ISRB’s knowledge, any directors, officers, employees, agents or other persons acting on behalf of ISRB has, in the course of its actions for, or on behalf of, ISRB: (a) used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to foreign or domestic political activity; (b) made any direct or indirect unlawful payments to any foreign or domestic governmental officials or employees from corporate funds; (c) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended or (d) made any other unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee.

 

ARTICLE IV

Conditions of Securities Exchange

 

Section 4.1          Conditions to Obligations of ISRB to Effect the Securities Exchange.  The obligations of ISRB to effect the Securities Exchange will be subject to the satisfaction or waiver of the following conditions prior to the Closing Date:

 

(a)             Representations and Warranties.  Those representations and warranties of NORe and Pali-Holloway set forth in this Agreement will be true and correct as of the Closing Date (except to the extent such representations and warranties expressly relate to a specific date in which case such representations and warranties will be true and correct as of such date).

 

(b)            Agreements and Covenants.  NORe shall have performed in all material respects all obligations and complied in all material respects with all of its agreements and covenants required to be performed or complied with under this Agreement.

 

Section 4.2            Conditions to Obligations of NORe to Effect the Securities Exchange.  The obligations of NORe to effect the Securities Exchange will be further subject to the satisfaction or waiver of the following conditions prior to the Closing Date:

 

(a)            Representations and Warranties.  Those representations and warranties of ISRB set forth in this Agreement will be true and correct as of the Closing Date (except to the extent such representations and warranties expressly relate to a specific date in which case such representations will be true and correct as of such date).

 

(b)            Agreements and Covenants. ISRB and shall have performed in all material respects all obligations and complied in all material respects with all agreements and covenants of ISRB and required to be performed or complied with by them under this Agreement.

 

(c)             Certificate of Secretary. NORe will have received from the corporate secretary of ISRB a certificate (i) certifying ISRB’s Articles of Incorporation and Articles of Incorporation, respectively, (ii) certifying the bylaws of ISRB, and (iii) certifying the resolutions of the board of directors of ISRB.

 

  

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(d)            Majority Stockholders Consent.  ISRB and NORe shall have received the written consents duly executed by such Persons owning a majority of the issued and outstanding shares of ISRB Common Stock as at the Closing Date (the “ISRB Majority Stockholders”), approving, adopting and ratifying on behalf of ISRB  this Agreement and all exhibits hereto and all transactions contemplated hereby (the “Majority Stockholders Consents”).

 

ARTICLE V

Survival and Indemnification

 

Section 5.1            Survival of Representations.  All representations, warranties and covenants of the parties contained in this Agreement will remain operative and in full force and effect, regardless of any investigation made by or on behalf of the other parties to this Agreement, until the earlier of the termination of this Agreement or eighteen (18) monthsafter the Closing Date (the “Survival Period”), whereupon such representations, warranties and covenants will expire (except for covenants that by their terms survive for a longer period). The parties’ post-closing remedies for a breach are not limited by the pre-closing discovery of a breach.

 

Section 5.2            Limitations on Indemnity Obligations.

 

(a)           Notwithstanding anything to the contrary herein, in no event shall a party or person having the indemnity obligation under this ARTICLE V (“Indemnifying Party”) have any liability for an indemnity obligation under this ARTICLE V unless and until the Damages relating to the party’s indemnity claims exceed $10,000 in the aggregate.

 

ARTICLE VI

Closing Date Deliveries

 

Section 6.1            Deliveries by ISRB.   On the Closing Date, ISRB shall cause to be delivered to NORe:

 

(a)           against delivery by NORe of the Exchange Note (i) one or more share certificates evidencing all of the ISRB Shares duly registered in the name of NORe, and (ii) the ISRB Note;

 

(b)           resolutions of the board of directors of ISRB and the Majority Stockholders Consents.

 

Section 6.2            Deliveries by NORe.  On the Closing Date, NORe shall cause to be delivered to ISRB, against receipt of the ISRB Securities, the Exchange Note, duly endorsed to ISRB for transfer.

 

  

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ARTICLE VII

General and Miscellaneous Provisions

 

Section 7.1           Notices.  All notices and other communications given or made pursuant hereto will be in writing and will be deemed to have been duly given or made (a) as of the date delivered, if delivered personally or by overnight courier, (b) on the third Business Day after deposit in the U.S. mail, if mailed by registered or certified mail (postage prepaid, return receipt requested), or (c) when successfully transmitted by facsimile (with a confirming copy of such communication to be sent as provided in clauses (a) or (b) above), and, in each case to the parties at the following addresses or facsimile number (or at such other address for a party as will be specified by like notice, except that notices of changes of address will be effective upon receipt):

 

(a)           If to ISRB:

 

Inspired Builders, Inc..

_________________________

________________

Attention:

Telephone:

(b)           If to NORe

 

NORe Capital LLC

Harbour House, Second Floor

Road Town, Tortola

British Virgin Islands

Tel: (284) 494-4770

 

For purposes of this Agreement, a “Business Day” shall mean any day that is not a Saturday, a Sunday or other day on which banking organizations in the State of California. are authorized or required by law to close.

 

Section 7.2           Expenses.  All fees, costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby will be paid by the party incurring such fees, costs and expenses.

 

Section 7.3           Amendment.  This Agreement may not be amended except by an instrument in writing signed by the parties hereto.

 

Section 7.4           Entire Agreement.  This Agreement and the schedules and exhibits attached hereto, constitute the entire agreement and supersede any and all other prior agreements and undertakings, both written and oral, among the parties, or any of them, with respect to the subject matter hereof.

 

Section 7.5           Public Announcements.  ISRB and NORe will consult with each other before holding any press conferences, analyst calls or other meetings or discussions and before issuing any press release or other public announcements with respect to the transactions contemplated by this Agreement.  The parties will provide each other the opportunity to review and comment upon any press release or other public announcement or statement with respect to the transactions contemplated by this Agreement, and will not issue any such press release or other public announcement or statement prior to such consultation, except as may be required by applicable Law, court process or by obligations pursuant to any listing agreement with any national securities exchange.  The parties agree that the initial press release or releases to be issued with respect to the transactions contemplated by this Agreement will be mutually agreed upon prior to the issuance thereof.

 

  

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Section 7.6           No Third-Party Beneficiaries.  Except for the parties hereto, this Agreement is not intended to confer upon any other Person any rights or remedies hereunder.

 

Section 7.7           Assignment.  This Agreement will not be assigned by operation of Law or otherwise, except that NORe may assign all or any of the ISRB Securities and its rights hereunder to any Affiliate of NORe; provided, however, that no such assignment will relieve the assigning party of its obligations hereunder.  This Agreement will be binding upon, and will be enforceable by and inure to the benefit of the parties hereto and their respective successors and assigns.

 

Section 7.8           Severability.  If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of Law, or public policy, all other conditions and provisions of this Agreement will nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner adverse to any party.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto will negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the maximum extent possible.

 

Section 7.9           Governing Law.  This Agreement will be governed by, and construed in accordance with, the Laws of the State of Nevada applicable to contracts executed in and to be performed entirely within that State.

 

Section 7.10         Consent to Jurisdiction.  Any dispute arising under this Agreement shall be submitted to arbitration administered in the State or Nevada.

 

Section 7.11         Headings; Interpretation.  The headings contained in this Agreement are for reference purposes only and will not affect in any way the meaning or interpretation of this Agreement.  Whenever the words “include,” “includes” or “including” are used in this Agreement, they will be understood to be followed by the words “without limitation.”

 

Section 7.12         Construction.  In the event of an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties and no presumption or burden of proof will arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement.

 

Section 7.13         Counterparts.  This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed will be deemed to be an original but all of which will constitute one and the same agreement.

 

Section 7.14        Confidentiality.  NORe and ISRB each recognize that they have received and will receive confidential information concerning the other during the course of the Securities Exchange negotiations and preparations.  Accordingly, NORe and ISRB each agree (a) to use its respective best efforts to prevent the unauthorized disclosure of any confidential information concerning the other that was or is disclosed during the course of such negotiations and preparations, and is clearly designated in writing as confidential at the time of disclosure, and (b) to not make use of or permit to be used any such confidential information other than for the purpose of effectuating the Securities Exchange and related transactions.  The obligations of this section will not apply to information that (i) is or becomes part of the public domain, (ii) is disclosed by the disclosing party to third parties without restrictions on disclosure, (iii) is received by the receiving party from a third party without breach of a nondisclosure obligation to the other party or (iv) is required to be disclosed.

 

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IN WITNESS WHEREOF, ISRB NORe and Pali-Holloway have executed this Agreement as of the date first written above.

 

	  	
INSPIRED BUILDERS, INC.

	  
	  	  	  	  
	  	
By:

	  	  
	  	
Name:

	  	  
	  	
Title:

	
President

	  
	  	  	  	  
	  	
NORe CAPITAL, LLC

	  
	  	  	  	  
	  	
By:

	  	  
	
 

	
Name:

	  	  
	  	
Title:

	
Member and Manager

	  
	  	  	  	  
	  	
PALI-HOLLOWAY, LLC

	  
	  	
By;

	
Pali-Holloway Management LLC Manager:

	  
	  	  	  	  
	  	
By:

	 	  
	 	 	
Avi Brosh, Member and Manager

	 

 

 

10

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