Document:

Purchase Agreement - Teach Me To Trade

Exhibit 10.12 
 
AGREEMENT 
 
This agreement dated January 25, 2002 (hereinafter, “Agreement”) by and between Teach Me To Trade, LLC, Ryan Smith, Chad Miller,
Charles McHenry and David Hancock, (hereinafter collectively known as “TMTT”), and Whitney Information Network, Inc. (hereinafter known as “WIN”),. 
 
Whereas, TMTT is in the education business specializing in courses relating to investing in the stock market
and, 
 
Whereas, WIN is in the direct response
advertising business specializing in the post secondary education field with the emphasis on financing, real estate and asset protection, and 
 
Whereas, both companies feel that there is a common synergy that should be capitalized upon and a strategic affiliation or combination of
the two companies would be in the best interests of both. 
 
THEREFORE, for and in consideration of the mutual promises, covenants, terms and conditions set forth herein, the parties agree as follows: 
 

	 	1.	 	WIN will lend funds in the amount of $200,000 to TMTT in the following manner. $100,000 on or before January 28, 2002, or upon execution of this Agreement, whichever
occurs last, $75,000 on or before February 25, 2002 or upon execution of this Agreement, whichever occurs last, and $25,000 on or before March 15, 2002 or upon execution of this Agreement, whichever occurs last. TMTT (including its individual
shareholders, Ryan Smith, Chad Miller, Charles McHenry and David Hancock) will sign a note for the $200,000 payable to WIN at 8% interest, payable monthly at the rate of $5,000 per month beginning on May 1, 2002 until paid (an amortization schedule
is attached hereto as Appendix A). The note will be secured with the following (1) all of the assets of Teach Me To Trade, LLC, including the personal guarantee of the individual shareholders’ stock in TMTT, (2) a permanent, unlimited and
unrestricted license for WIN to use the TMTT data base software for any lawful purpose, which license shall not expire upon repayment of the loan and (3) the “Trade Seeker” software and systems. The above obligation shall be evidenced by a
“Note and Collateral Agreement” executed contemporaneously with the execution hereof., a copy of which is attached hereto as Appendix B. TMTT shall also execute any and all documents necessary to secure this obligation, including, without
limitation, a form UCC-1. A copy of the software and the Code for said software will be held by WIN, pursuant to this agreement. As the software is updated or changed by the company TMTT will supply WIN with an updated copy and code.

 

 

	 	2.	 	WIN will have the option of collecting on the note or converting the note to stock in the company or applying any unpaid amount of the note toward the purchase of
TMTT assets, as described later in this agreement. 

 

	 	3.	 	WIN may in its sole discretion, provide such additional funds as it deems necessary to promote a marketing program to attract students to the TMTT free preview
seminars. WIN will also, in its sole discretion, develop a marketing program for TMTT, including a TV infomercial as the main marketing tool in accomplishing its goals. WIN will own the marketing program and all rights thereto. WIN will develop
media products for the program using raw footage taken by WIN or supplied to WIN for use in the program by TMTT. In addition to developing the marketing program, WIN will provide personnel at the free preview seminars to assist the TMTT team in
securing tuition payments from potential students. Travel and hotel costs for the WIN staff (including TMTT personnel) at preview seminars will be paid first prior to any distributions. All revenues from the program will be processed by WIN and WIN
will first recover all its costs incurred in developing and implementing a marketing program for TMTT, until the WIN cost advances are repaid. WIN will provide a monthly accounting to TMTT of all revenue and expenses. At the time that WIN recovers
its costs, the then revenues in excess of WIN’S costs from the program (including all front end and back end sales of TMTT products and services) will be split 50% to WIN and 50% to TMTT. If WIN advances funds and other costs for media and
or other program related expenses, WIN must first recover those funds prior to any split. In addition, WIN will, at its sole discretion, promote and air the TMTT product show. If WIN does not promote the show within 30 days after production,
TMTT may promote its product show.  

 
TMTT has given WIN it’s current TMTT informercial and has granted WIN permission to use this infomercial in whole or part to use in testing the current marketing, and for further use if Win deems the show fit for use. WIN may
edit said infomercial and TMTT represents that it owns all right to said infomercial and any raw footage that was shot while making said infomercial. TMTT will make any and all additional footage available to WIN for editing. TMTT will provide WIN
with all affidavits of testimonials and releases that allow the use of said testimonials in the infomercial. TMTT further grants WIN the right to use the current infomercial as is, or edit the infomercial for use in selling the TMTT product direct
from the show. All revenues from the program will be processed by WIN and WIN will first recover all its costs for the program At the time that WIN recovers its costs, the then revenues in excess of WIN’S costs from the program (including all
front end and back end sales of TMTT products and services) will be split 50% to WIN and 50% to TMTT. If WIN advances funds and other costs for media and or other program related expenses, WIN must first recover those funds prior to any split. The
accounting for 
 

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the product
show shall be the same as for the seminar show. No guarantees or representations have been made regarding the success or results of WIN’S marketing efforts. 
 

	 	4.	 	WIN will set the pricing on both the front-end presentations (preview seminars), the back end instructional courses (fulfillments) and products, during the framing
of its marketing program. TMTT will design its back end course (fulfillment) to be a three day course concurrently with the design of the marketing program and submit the outline and course manual to WIN’s personal to review and approve.

 

	 	5.	 	TMTT will redesign its advanced courses (boot camps) to be three-day courses and work on developing its mentorship program to be a one on one, face-to-face program
in the student’s city of residence. TMTT will make such changes to its advanced course concurrently with the design of the marketing program, in 3 above, and within 30 days of execution of the marketing program, shall submit the outline and
course manual to WIN’s personnel to review and approve. 

 

	 	6.	 	WIN shall have the option to purchase up to 100% of the stock (or the assets) of TMTT for a price of $2,500,000, payable as follows: $500,000 upon exercise of the
option and $1,000,000 payable one hundred eighty (180) days thereafter and $1,000,000 payable one hundred eighty days after the first one million was paid. The million dollar payments may be in cash or stock, or a portion thereof, at the option of
WIN, however, if they are payable in stock the amount of stock can be no more than 25% of the payment and the stock shall be valued at no more than $2.00 per share and cannot be issued unless the market price in the month the payment
is due has equaled or exceeded $3.00 per share. At WIN’s option forgiveness of the note payable to WIN mentioned in (1) above shall be considered cash. WIN will at the time of the exercise appoint such
individuals as it sees fit to the board of directors of the TMTT companies. At the time of the acquisition, WIN will have the option to retain the corporate structure of Teach Me To Trade, LLC and/or change it as it sees fit. All
documents to effect the purchase will be drafted by WIN’s counsel to WIN’s and TMTT’s satisfaction. The purchase agreement shall contain all appropriate indemnifications and representations by TMTT and WIN. WIN will
secure (at its option) employment contracts from the officers of TMTT, at the time of execution of the Agreement, in such amounts and such terms as WIN and the officer’s deem appropriate in the circumstances. TMTT shall expend its best efforts
to insure that existing management stays in place. WIN can exercise its option at a date any time prior to a date ending six months after the formal rollout of the operating program or one year from the effective date, whichever is sooner. Rollout
of the operating program shall be when the front end 

 

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team (preview
team) is in place and scheduled and has performed (previews at least two weeks in a row) 
 

	 	7.	 	Upon WIN’s exercise of the option to purchase Stock or Assets of the TMTT, its principals Ryan Smith, Chad Miller, Charles McHenry and David Hancock, shall
execute a 5 year non-compete concurrently with their employment agreements, the geography of which shall be the entire United States, the United Kingdom, Canada, Australia and South America, it being understood that the business of WIN and the
business of TMTT being acquired operates within that geographic scope. 

 

	 	8.	 	A substantial amount of the performance required by TMTT and WIN under this agreement shall be performed at the offices of WIN in Lee County, Florida, including,
without limitation, development of the marketing program, accounting for revenues and expenditures, reporting, review of course materials and outlines, assistance in the hiring of speakers, instructors and trainers, etc....

 

	 	9.	 	If Maverick Trading is acquired by a third party Maverick will split with WIN on a 50/50 basis the amount of money received per client (that was
brought to Maverick through WIN’s efforts, through the marketing program o other means) from the acquiring company. 

 

	 	10.	 	Representations and Warranties 

 

	 	A.	 	Teach Me To Trade, LLC., is a Utah Corporations in good standing with the state. 

	 	B.	 	TMTT has not or is not in violation of any state, federal or local law, and ordinance, in Utah or in any other jurisdiction in the United States or any
other location it has operated now or in the past. TMTT has no pending claims, unasserted claims or any litigation whatsoever in process or contemplated to be asserted. 

	 	C.	 	TMTT is the owner of the its data base software and the “Tradeseeker” software free and clear of any and all liabilities and claims. TMTT has not sold,
licensed or in any way permitted any other person or entity access to the software. 

	 	D.	 	Ryan Smith, Chad Miller, Charles McHenry and David Hancock, are the principals and sole shareholders of the stock of Maverick Holdings, LLC, Maverick Trading, LLC,
Teach Me To Trade, LLC, and they have the authority to enter into a transaction of this type and are not restricted by any other agreement. 

	 	E.	 	All products currently sold by TMTT are owned by TMTT. 

	 	F.	 	TMTT except as otherwise indicated herein, the company will operate only in the ordinary course of business during the term of this agreement.

 

 

	 	G.	 	During the period that the Note and Collateral Agreement remains unpaid the officers of TMTT agree not to increase their salaries or pay themselves bonuses
without the consent of WIN. TMTT will not pay out any items out of the ordinary course of business during the term of this agreement. TMTT will not enter into any contracts long or short term during the term of this agreement without the express
written consent of WIN. 

 

	 	H.	 	TMTT will not issue any additional shares of stock, buy back stock, or have any other transaction concerning the stock of TMTT and or any affiliate or subsidiary
during the term of this agreement in excess of 10% of the issued and outstanding shares without the express written consent of WIN. 

 

	 	11.	 	TERM and TERMINATION. This Agreement shall continue in effect from the date signed for a period of one year, and will automatically renew unless cancelled by either
party. Either party may cancel this agreement at any time with 30 days prior written notice. In the event this agreement is terminated and TMTT continues to use the marketing program developed in 3 above TMTT will pay to WIN and amount equal to
30% of the net profits from the marketing program. Payments shall be made on the last day of the month for the preceding months business. Net profits are defined as Gross Revenues less media costs less reasonable speakers fees, travel
and meeting room costs and instructor, trainer’s fees and third party “web expenses”. Gross Revenues are all revenues brought in by the program less returns and allowances. Paragraphs 1, 3, 7, 9 & 19 shall survive
the termination of this Agreement 

 
Miscellaneous 
 

	 	12.	 	NOTICES. All notices required or permitted under this Agreement shall be in writing and shall be deemed delivered when delivered in person or deposited in the United
States mail, postage paid, addressed as follows: 

 
WIN 
Whitney Information Network, Inc. 
Richard Brevoort 
\President 
4818 Coronado Parkway 
Cape Coral, Florida 33904 
 
TMTT: 
Teach Me To Trade 
Ryan Smith /President 
12 West Broadway 
Salt Lake City, Utah 84101 
 

Either party may change such addresses from time to time by providing written notice in
the manner set forth above. 
 

	 	13.	 	ENTIRE AGREEMENT.    This Agreement contains the entire agreement of the parties and there are no other promises or conditions in any other
agreement whether oral or written. This Agreement supersedes any prior written or oral agreements between the parties. 

 

	 	14.	 	AMENDMENT.    This Agreement may be modified or amended, if the amendment is made in writing and is signed by both parties.

 

	 	15.	 	JURISDICTION, VENUE AND APPLICABLE LAW.    The laws of the State of Florida shall govern this Agreement, and all actions brought hereunder
whether at law or in equity shall be brought in the Circuit Court in and for Lee County, or Broward County, Florida. Each party to this agreement hereby expressly consents to the Circuit Court of Lee County, and/or Broward County Florida, exercising
general, personal jurisdiction over such party or his, her or its representative after appropriate service of process as to enable such Circuit Court to render personal judgments against that party or representative. Furthermore, the parties also
agree that any and all claims arising from or in connection with the subject matter of this agreement must be brought in the Circuit Court in and for Lee County or Broward County, Florida and the parties hereby expressly waive any venue privileges,
which may be asserted in connection with this agreement. In any litigation arising out of this agreement, the prevailing party shall be entitled to recover reasonable attorney’s fees and costs. 

 

	 	16.	 	ATTORNEY’S FEES.    In any litigation arising out of the Agreement to be entered into, the prevailing party shall be entitled to recover
reasonable attorney’s fees and costs. 

 

	 	17.	 	SEVERABILITY.    If any part of this Agreement is or becomes legally ineffective, invalid or unenforceable in any jurisdiction, the
effectiveness, validity or enforceability of this Agreement in any other jurisdiction, or remainder of it in that jurisdiction will not be affected. 

 

	 	18.	 	DUE DILIGENCE.    The Agreement and all of its terms, provisions and covenants are subject to WIN’s due diligence to be performed no later
than 45 days from the Effective Date hereof. 

 

	 	19.	 	 CONFIDENTIALITY.    Neither WIN or TMTT will disclose the terms of this agreement in principle, except to their respective directors,
officers, agents or representatives, unless otherwise required by law or by the rules of any stock exchange on which its securities may be traded. However, WIN 

	 	 
may make appropriate disclosures of a general nature to its employees, vendors and customers to protect the Company’s goodwill and to
facilitate a closing. 

 

	 	20.	 	EFFECTIVE DATE.    The effective date of this contract shall be the latter of the date last signed or the date that the materials and documents
requested in item 3 are received by WIN. 

 

	 	21.	 	WAIVER OF CONTRACTUAL RIGHT.    The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or
limitation of that party’s right to subsequently enforce and compel strict compliance with every provision of this Agreement. 

 

	 	22.	 	EXPENSES.    Each of the parties will bear their own legal costs and other expenses incurred in negotiating this agreement, preparing this
document, and consummating this transaction. Any expenses incurred with respect to business advisors, brokers, legal counsel, accountants or other advisors or consultants engaged by TMTT or the Stockholders prior to the date of acquisition but not
paid by that time shall be deducted from the purchase price or reimbursed immediately by the TMTT shareholders. 

 

	 	23.	 	BOARD APPROVAL.    This agreement is subject to approval of the Board of Directors of WIN. 

 

	 	24.	 	BROKERS AND FINDERS.    Both parties represent that there are no Brokers or Finders fees payable in connection with this agreement. Neither party
has employed any broker, finder, consultant or agent or incurred any brokers fee, consultant’s fee, or finders fee or commission with respect to this agreement or the transactions contemplated with this agreement. 

 

	
	 WHITNEY INFORMATION NETWORK, INC.

	
	 /s/    RICHARD
BREVOORT        

	 Richard Brevoort, President

Accepted and Agreed this 25 day of January 2002: 
 

	 Teach Me To Trade, LLC
	 	 	 	 
	
	 By
	 	 /s/    RYAN
SMITH        

	 	 	 	 Its
	 	 President      

	 	 	 Ryan Smith  
	 	 	 	 	 	 

 
 

	 Maverick Trading, LLC
	 	 	 	 
	
	 By
	 	 /s/    RYAN
SMITH        

	 	 	 	 Its
	 	 Managing Member      

	 	 	 Ryan Smith  
	 	 	 	 	 	 

 

	
	 /s/    RYAN SMITH    

	 	 	 	 	 	 /s/    CHAD
MILLER        

	 Ryan Smith, Individually
	 	 	 	 	 	 Chad Miller, Individually For TMTT Stock Only

 

	
	 /s/    CHARLES K. McHenry    

	 	 	 	 	 	 /s/    DAVID
HANCOCK        

	 Charles McHenry, Individually
	 	 	 	 	 	 David Hancock, Individually

PROMISSORY NOTE and 
COLLATERAL AGREEMENT 
 
 

	 Principal amount $200,000.00 
	 January 28, 2002 

 
FOR VALUE RECEIVED, the undersigned hereby jointly and severally promise to pay to the order of Whitney Information Network, Inc. the sum
of Two Hundred Thousand Dollars ($200,00.00), together with interest thereon at the rate of 8% per annum on the unpaid balance. Said sum shall be paid in the following manner: 
Payable on the 1st day of each month at the rate of $4,882.58 per month beginning May 1, 2002, and continuing each month thereafter until
paid in full. 
 
This note shall be secured with
the following collateral: (1) all of the assets of Teach Me To Trade, LLC, including the personal guarantee of the individual shareholders stock in each of those entities (2) a permanent, unlimited and unrestricted license to use the TMTT data base
software for their own use, which license shall not expire upon repayment of the loan and (3) the “Trade Seeker” software and systems. 
 
All payments shall be first applied to interest and the balance to principal, pursuant to the attached amortization schedule. This note
may be prepaid, at any time, in whole or in part, without penalty. 
 
This note shall at the option of the holder thereof be immediately due and payable upon the occurrence of any of the following: 1) Failure to make any payment due thereunder within 10 days of its due date; 2) Breach of any
condition of any security interest, mortgage, loan agreement, pledge agreement or guarantee granted as collateral security for this note; 3) Breach of any condition of any loan agreement, security agreement or mortgage, if any, having a priority
over any loan agreement, security agreement or mortgage on collateral granted, in whole or in part, as collateral security for this note; 4) Upon the death, incapacity, dissolution or liquidation of any of the undersigned, or any endorser, guarantor
or surety hereto; 5) upon the filing by any of the undersigned of an assignment for the benefit of creditors, bankruptcy or other form of insolvency, or by suffering an involuntary petition in bankruptcy or receivership not vacated within (30)
thirty days. 
 

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In the event this note shall be in default and placed for collection, then the undersigned
agree to pay all reasonable attorney fees and costs of collection. Payments not made within five (5) days of the due date shall be subject to a late charge of 10% of said payment. All payments hereunder shall be made to such address as may from time
to time be designated by the holder. Initially, payments shall be made to the holder at 
 
Accounting Department, Controllers Office 
Whitney Education Group, Inc. 
4818 Coronado Parkway 
Cape Coral, Florida 33904

 
The undersigned and all other parties to this
note, whether as endorsers, guarantors or sureties, agree to remain fully bound until this note shall be fully paid and waive demand, presentment and protest and all notices hereto and further agree to remain bound, notwithstanding any extension,
modification, waiver, or other indulgence or discharge or release of any obligor hereunder or exchange, substitution, or release of any collateral granted as security for this note. No modification or indulgence by any holder hereof shall be binding
unless in writing; and any indulgence on any one or more occasions shall not be an indulgence for any other or future occasion. Any modification or change in terms, hereunder granted by the holder hereof, shall be valid and binding upon each of the
undersigned, notwithstanding the acknowledgement of any of the undersigned, and each of the undersigned does hereby irrevocably grant to each of the others a power of attorney to enter into any such modification on their behalf. The rights of the
holder hereof shall be cumulative and not necessarily successive. This note shall take effect as a sealed instrument and shall be construed, governed and enforced in accordance with the laws of the State of Florida. 
 
 
 
Witnessed: 
 
 

	
	 	 	 /s/                        

	 	 	 	 	 	 /s/    RYAN
SMITH        

	 	 	 Witness
	 	 	 	 	 	 Teach Me To Trade, LLC

 

GUARANTY 
 
We the undersigned jointly and severally guaranty the prompt and punctual payment of all moneys due under the
aforesaid note and agree to remain bound until fully paid. 
 
In
the presence of: 
 

	
	 	 	 /s/            

	 	 	 	 	 	 /s/    RYAN
SMITH        

	 	 	 Witness
	 	 	 	 	 	 Ryan Smith, Individually

	
	 	 	 /s/    

	 	 	 	 	 	 /s/     CHAD
MILLER        

	 	 	 Witness
	 	 	 	 	 	 Chad Miller, Individually

	
	 	 	 /s/    

	 	 	 	 	 	 /s/    DAVID HANCOCK      

	 	 	 Witness
	 	 	 	 	 	 David Hancock, Individually

	
	 	 	 /s/    

	 	 	 	 	 	 /s/    CHARLES
MCHENRY        

	 	 	 Witness
	 	 	 	 	 	 Charles McHenry, IndividuallyPurchase Agreement - Whitney Leadership Group

Exhibit 10.13 
 
STOCK PURCHASE AGREEMENT 
 
THIS COMMON STOCK PURCHASE AGREEMENT (the “Agreement”) is made as of January 31, 2002, by and between
Russell Whitney and Ingrid Whitney, as tenants by the entireties (“Seller”) and Whitney Information Network, Inc., a Colorado corporation (the “Buyer”). 
 
A. Seller is the owner of one hundred (100) shares of common stock (the “Shares”) of Whitney
Leadership Group, Inc. (the “Company”). 
 
B. Seller desires to sell and Buyer desires to purchase all of the Shares now owned by Seller on the terms and subject to the conditions set forth in this Agreement. 
 
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties agree as follows: 
 
1. Purchase and
Sale of Common Stock 
 
1.1 Purchase Price

 
Seller shall sell to Buyer and Buyer
shall purchase from Seller the Shares for the purchase price of one million two hundred thousand dollars ($1,200,000.00) payable as set forth below. 
 
1.2 Payment of Purchase Price 
 
On the Closing Date as defined herein, Buyer shall deliver to the Seller three hundred thousand dollars ($300,000.00) in the form of a
commercial bank check or wire transfer and a promissory note in the form of Exhibit “A” attached hereto in the principal amount of nine hundred thousand dollars ($900,000.00), payable in three (6) semi-annual installments of one hundred
fifty thousand dollars ($150,000.00) due and payable on each February 28th and August 28th beginning February 28, 2004 until paid with interest at 7%. 
 
2. Closing 
 
The closing of the transaction (the “Closing”) provided for herein shall take place on or before April 15, 2003 at the offices
of the Company or at such other place or time agreed upon by Buyer and Seller (the “Closing Date”). 
 
2.1 Documents Delivered By Seller 
 
Subject to the terms and conditions hereof, on the Closing Date, Seller shall deliver to Buyer the following documents and instruments: (i) stock certificates evidencing the shares, with the
assignments endorsed thereon or with an executed assignment separate from the certificate; and (ii) one (1) original resolution of the board of directors of the Company acknowledging the sale of the Shares and approving any other documents to be
executed by the Company; 
 
2.2 Documents Delivered by Buyer

 
Subject to the terms and conditions
hereof on the Closing Date, Buyer shall deliver 

to Seller the following documents and instruments: (i) bank check or wire transfer in the amount of three hundred thousand dollars
($300,000.00) and a promissory note in the principal amount of nine hundred thousand dollars ($900,000.00). 
 
3. Buyers’ Conditions Precedent to Closing 
 
All of the obligations of the Buyer under this Agreement are subject to the fulfillment at or before the Closing of each of the following
conditions, any of which may be waived in writing by the Buyer. 
 
3.1 Representations and Warranties 
 
The representations and warranties of the Seller contained herein shall be true and correct on and as of the Closing Date with the same effect as if made on and as of the Closing Date. 
 
3.2 Performance 
 
The Seller shall have performed or fulfilled all agreements,
obligations and conditions contained herein including but not limited to the execution of the documents set forth in Section 2.1 and shall have obtained all consents, waivers and approvals necessary to transfer the Shares and for Buyer to operate
the business of the Company. 
 
3.3 Buyer’s
Investigation 
 
Buyer’s reasonable
satisfaction with the results of Buyer’s due diligence investigation including but not limited to 
 
(a) A satisfactory assessment of the business; competition and the market; 
 
(b) Buyer’s satisfaction with the Financial Statements and other financial books and records of the
Company; 
 
(c) Buyer’s approval of the
equipment, furniture, intellectual property and the Company’s inventory (collectively referred to as the “Assets”); 
 
(d) Buyer’s satisfaction with the results of the investigation into any potential environmental or occupational, safety and health
issues which may affect the viability of the Company; and 
 
(e) Buyer’s satisfaction with the results of interviews with key employees, customers, suppliers and creditors of the Company which shall take place at time and place agreed upon by Buyer and Seller. 
 
3.4 Approval of Contracts and Related Agreements 
 
The approval of Buyer and Buyer’s professional advisors
of all contracts, instruments and other documents arising out of or delivered pursuant to this Agreement and any agreement pending or continuing as of the Closing Date between the Company and third parties. 
 

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3.5 Maintenance of Key
Agreements 
 
The maintenance of all
exclusive dealerships, distributorships, representation agreements, lease agreements, the bank credit line and other agreements, and other material agreements of the Company currently in effect or for the benefit of the Company, to the Company
and/or Buyer following the Closing Date on substantially the same terms as are presently extended to the Seller and/or the Company. 
 
3.6 Profit Sharing Plan 
 
The Seller shall have paid the total amount due to the Company’s Profit Sharing Plan and Retirement Trust for each fiscal year since
the plan and trust were adopted or shall have settled such obligation in a manner satisfactory to the Buyer. 
 
37 Premises Lease 
 
The Company shall have maintained in good standing the terms of the lease to the property located at 1612 E. Cape Coral Parkway and 4818 Coronado Parkway, Cape Coral Florida (the “Premises
Lease”). 
 
3.8 Material Deterioration

 
There shall have been no Material
Deterioration in the business, financial condition or operating results of the Company. 
 
3.9 No Pending Litigation 
 
No material action, suit or proceeding shall be pending or threatened against he Company or the Seller which (in the case of a suit against the Seller) relates to this Agreement or the transactions contemplated hereby or
which if decided unfavorably would adversely affect the right of Buyer to own and operate the Company or the value of the Company. Any action, suit or proceeding with an actual or potential claim of one thousand dollars ($1,000.00) or more or an
estimated cost to defend of five hundred ($500.00) or more shall be deemed to be “material”. 
 
4. Seller’s Conditions Precedent to Closing 
 
The obligations of the Seller under this Agreement are subject to the fulfillment at or before the Closing of each of the following
conditions, any of which may be waived in writing by the Seller. 
 
4.1 Representations and Warranties 
 
The representations and warranties of Buyer contained in this Agreement shall be true and correct on and as of the Closing Date with the same effect as though said representations and warranties had been made on and as of
the Closing Date. 
 
4.2 Approval of Contracts and Related
Agreements 
 

3 

 
The approval
of Seller and Seller’s professional advisors of all contracts, instruments and other documents, including but not limited to the Promissory Note, arising out of or delivered pursuant to this Agreement. 
 
4.3 Performance 
 
The Buyer shall have performed or fulfilled all agreements,
obligations and conditions contained herein and shall have obtained all consents, waivers and approvals necessary to transfer the Shares to Buyer. 
 
4.4 Seller’s Satisfaction with Buyer’s Financial Status 
 
Seller’s satisfaction with the most recent financial statements, credit reports, and business and
personal references, provided by Buyer. 
 
5. Seller’s
Representation and Warranties 
 
Seller hereby
represents and warrants to Buyer as follows. 
 
5.1
Seller’s Title 
 
Seller has and as
of the Closing Date shall have good and marketable title to the Shares free and clear of all liens, security interests, claims, options, charges or encumbrances. None of the Shares are subject to any outstanding agreements of sale or rights of third
parties to acquire any interest therein. The Shares constitute all of the capital stock of the Company owned by the Seller. Seller has the right and authority to execute, deliver, and perform this Agreement and all agreements delivered in connection
herewith (the “Related Agreements”) and to sell and transfer the Shares to Buyer. To Seller’s knowledge, this Agreement, and all Related Agreements, constitutes legal, binding and valid obligations of the Seller, enforceable in
accordance with their respective terms. 
 
5.2 Corporate
Organization and Authority 
 
The Company:

 
(a) Is a corporation duly organized, validly
existing, authorized to exercise all of its corporate powers, rights and privileges, and in good standing in the State of Florida; 
 
(b) Has the corporate power and corporate authority to own and operate its properties and to carry on its business as now conducted; and

 
(c) Is qualified as a foreign corporation in
all jurisdictions in which such qualification is required. 
 
5.3 Capitalization 
 
Immediately prior to the Closing, the authorized capital of the Company shall consist of one hundred (100) shares of common stock of which one hundred (100) shares are duly and validly issued (including, without limitation, issued to
Seller’s knowledge in compliance with applicable federal and state securities laws), fully- 

 

4 

paid non-assessable, outstanding and held by the Seller. There are no outstanding warrants, options, conversion privileges, preemptive
rights, voting agreements or similar arrangements, or other rights or agreements to purchase or otherwise acquire or issue any equity securities of the Company. 
 
5.4 Subsidiaries 
 
The Company does not currently own, have any investment in, or control, directly or indirectly, any subsidiaries, associations or other
business entities. The Company is not a participant in any joint venture or partnership. 
 
5.5 No Conflict with Other Instruments 
 
The execution, delivery and performance of this Agreement and the Related Agreements will not result in any material violation of, be in conflict with, or constitute a default under, with or without
the passage of time or the giving of notice: (i) any provision of the Company’s Articles of Incorporation or Bylaws; (ii) any provision of any judgment, decree or order to which the Company or Seller is party or by which it is bound; (iii) any
material contract, obligation or commitment to which the Company or Seller is a party or by which either of them is bound; or (iv) to Seller’s knowledge, any statute, rule or governmental regulation applicable to Seller or the Company.

 
5.6 Financial Statements and Business Plan

 
Seller has delivered to Buyer (i) the
Company’s unaudited balance sheet at September 30, 2002 (the “Balance Sheet”) (ii) the Company’s year-to-date income statement of December 31, 2002 and (iii) the Company’s unaudited financial statements for the years ended
September 30, 2001 and September 30, 2000 (collectively, the “Financial Statements”). The Financial Statements (attached hereto as Exhibit “B” and incorporated herein by reference) are substantially in accordance with the
Company’s books and records, complete and accurate in all material respects and to Seller’s knowledge prepared in accordance with generally accepted accounting principles and fairly present the financial condition of and operating results
of the Company during the period indicated therein. 
 
5.7
Changes 
 
Since the Balance Sheet Date
and prior to Closing, there has not been: 
 
(a)
Any change in the assets, liabilities, financial condition, or operations of the Company except changes in the ordinary course of business which have not been, either in any case or in the aggregate, materially adverse; 
 
(b) Any damage, destruction, or loss, whether or not covered
by insurance, materially and adversely affecting the properties or business of the Company; 
 
(c) Any waiver or compromise by the Company of a valuable right or of any debt owed to it; 
 
(d) Any loans made by the Company to its employees, officers or directors 

 

5 

other than travel or like advances made in the ordinary course of business not in excess of one hundred dollars ($1000.00); 
 
(e) Any declaration or payment of any dividend or other
distribution by the Company or any repurchase or redemption of the Company’s capital stock; 
 
(f) Any cancellation of any material purchase order or contract or any write-off as uncollectible two thousand dollars ($2,000.00) or
greater; or 
 
(g) Any Material Deterioration or
any other event or condition of any character which has materially and adversely affected the Company’s business or prospects. 
 
5.8 No Liabilities 
 
Except as have been incurred in the ordinary course of business since the Balance Sheet Date, the Company has no liabilities, obligations
or commitments greater than five thousand dollars ($5,000.00), whether absolute or contingent and whether due or to become due other than as set forth in the Financial Statements. 
 
5.9 Litigation 
 
There is as of the Closing no claim, action, lawsuit, proceeding or investigation pending or threatened against the Company, (or to the
knowledge of the Seller, against any of its officers or directors) or any basis therefore known to the Seller, including, without limitation, that questions the validity of this Agreement or the right of the Seller to enter into this Agreement.
There is no judgment, decree or order of any Court or any arbitration or governmental authority in effect against the Company or any of its properties and the Company is not in default with respect to any such judgment, decree or order to which the
Company is a party or by which it is bound. There is no action, suit, proceeding or investigation by the Company currently pending or which the Company presently intends to initiate. 
 
5.10 Title to Properties; Liens and Encumbrances 
 
Attached hereto as Exhibit “C” and incorporated herein by reference is a true and correct copy of
all of the Assets currently owned by the Company (the “Assets”). The Company has good and marketable title to the Assets. The Company’s assets include all assets tangible and intangible owned by the company subject to all liabilities
owed by the company, including all of the rights, trademarks, copyrights, titles and licenses to use all of the infomercials, books, tapes, and CD’s for all products and services presently sold by WEG, including any brand names and patents,
including the rights to use the name Russ Whitney for all lawful, moral, and ethical purposes but not for any use prohibited by public policy, in which case, all rights revert back to the Seller. The Assets are not subject to any mortgage, pledge,
lien, security interest, conditional sale agreement, option license, encumbrance or charge. The Company owns or leases all tangible assets necessary for the conduct of its business as currently conducted. 
 
5.11 Condition of Assets 
 

6 

 
The Assets
are currently in good operating condition and repair (subject to normal wear and tear) and are suitable for the purposes for which they are currently used. All current inventory of the Company is of merchantable quality and saleable in the ordinary
course of the Company’s business. 
 
5.12 Patents and
Other Proprietary Rights 
 
To the
knowledge of the Seller: (i) the Company has sufficient title and ownership of all patents, trademarks, service marks, trade names, copyrights, trade secrets, information, proprietary rights and processes necessary for its business as now conducted,
and as proposed to be conducted, and (ii) the use thereof does not, and will not, conflict with or constitute an infringement of the rights of others. 
 
5.13 Taxes 
 
As of Closing, all federal, state, local, foreign, employment and property tax returns required to be filed by the Company have been
filed, or if not yet filed have been granted extensions of the filing dates which extensions have not expired, and all taxes, assessments, fees and other governmental charges upon the Company, or upon any of its Assets or income (including all
employment taxes) have been paid. 
 
5.14 No Defaults,
Violations or Conflicts 
 
The Company is
not and as of the Closing shall not be in violation of any term or provision of its articles of incorporation, bylaws or any material term or provision of any indebtedness, mortgage, indenture, contract, agreement, judgment, or any decree or order.

 
5.15 Insurance 
 
The Company currently has in effect insurance including but
not limited to workers’ compensation insurance, covering risks associated with its business in such amounts as the Company believes are customary in its industry. The Seller is not aware of any pending or threatened claims against the Company
for personal injuries, product liability or property damages 
 
5.16 Employee Compensation Plans 
 
The Company is not party to, or bound by any currently effective employment contracts, deferred compensation agreements, bonus plans, incentive plans, profit sharing plans, retirement agreements or other employee compensation
agreements. Subject to applicable law, the employment of each officer and employee of the Company is terminable at the will of the Company. 
 
5.17 Accounts Receivable 
 
All accounts receivable of the Company reflected on the Balance Sheet are valid receivables subject to no material setoffs or
counterclaims and are current and collectible (within ninety (90) days after the date on which it first became due and payable), net of the applicable reserve for bad debts reflected in the Balance Sheet. To Seller’s knowledge, all accounts
receivable reflected in the financial or 

 

7 

accounting records of the Company that have arisen since December 31, 2002 are valid receivables subject to no material setoffs or
counterclaims and are collectible, net of a reserve for bad debts in an amount proportionate to the reserve reflected in the Balance Sheet. 
 
5.18 Product Warranty 
 
No product sold, leased or delivered by the Company prior to Closing is subject to any guaranty, warranty, right of return or other such
indemnity beyond the manufacturer’s warranty. The Company has no liability for product liability or product warranty claims with respect to sales of products or services prior to Closing (other than product warranty claims in the ordinary
course of business) that would not have a material adverse effect on the Company or its financial condition. 
 
5.19 Legal Compliance 
 
To Seller’s knowledge, the Company, and the conduct and operations of its business, will be in substantial compliance with each law (including rules and regulations thereunder) of any federal,
state, local or foreign government, or any governmental entity, which (a) affects or relates to this Agreement or the transactions contemplated hereby or (b) is applicable to the Company or business, except for any violation of or default under a
law referred to above which reasonably may be expected not to have a material adverse effect on the assets, business financial condition or results of operations of the Company. 
 
5.20 Permits 
 
Exhibit “D” sets forth a list of all material permits, licenses, registrations, certificates, orders or approvals from any
governmental entity (including without limitation those issued or required under environmental laws and those relating to the occupancy or use of owned or leased real property) (“Permits”) issued to or held by the Company and currently
required for the operation of its business. Such listed Permits are the only Permits that are required for the conduct of the Company’s business as currently conducted, except for those the absence of which would not have any material adverse
effect on the Assets, business’ financial condition, results of operations or future prospects of the Company. Each such Permit is in full force and effect and, to Seller’s knowledge no suspension or cancellation of such Permit is
threatened and the Seller believes that such Permit will be renewed upon expiration. 
 
5.21 Brokers’ Fees 
 
Neither the Seller nor the Company has any liability or obligation to pay any fees or commissions to any broker, finder or agent with respect to the transactions contemplated by this Agreement. 
 
5.22 Books and Records 
 
As of Closing, the minute book and other similar records of
the Company contain true and complete records of all actions taken at any meetings of the Company’s 

 

8 

shareholders and Board of Directors, and of all written consents executed in lieu of the holding of any such meeting and the books and
records of the Company accurately reflect in all material respects the assets, liabilities, business, financial condition and results of operations of the Company and have been maintained in accordance with good business and bookkeeping practices.

 
5.23 Customers and Suppliers 
 
No material supplier of the Company has indicated within the
past year that it will stop, or materially decrease the rate of, supplying materials, products, or services to them and no material customer of the Company has indicated within the past year that it will stop, or materially decrease the rate of
buying materials, products or services from it. 
 
5.24
Employee Relations 
 
As of Closing, the
Seller believes its relations with the Company’s employees are satisfactory. The Company’s employees are not represented by any labor unions nor, to the Seller’s knowledge, is any union organization campaign in progress. The Seller is
not aware that any of its officers or employees intend to terminate employment. 
 
5.25 Environmental Regulations 
 
To Seller’s knowledge, the Company has substantially met, and will continue through Closing, to substantially meet, all applicable United States local, state, federal and national environmental regulations and has disposed of
its waste products and effluent and/or has caused others to dispose of such waste products and effluent, in accordance with all applicable United States local, state, federal and national environmental regulations and in such a manner that no harm
has resulted or will result to any of its respective employees or properties or to any other person or entities or their properties. 
 
5.25 Full Disclosure 
 
The representations and warranties of the parties contained in this Agreement, the other provisions of this Agreement and all other
documents delivered to one another in connection with the purchase and sale of the Shares when read together, do not contain and will not contain any untrue statement of a material fact or omit any material fact necessary to make the statements
contained therein or herein in view of the circumstances under which they were made not misleading. 
 
6. Representations and Warranties of Buyer 
 
Buyer represents and warrants to the Company as follows. 
 
6.1 Authorization 
 
This Agreement and all the Related Agreements constitute the legally binding and valid obligations of Buyer, enforceable in accordance
with their respective terms. Buyer has the right and authority to execute, deliver and perform this Agreement 

 

9 

and all of the Related Agreements and to purchase the Shares from the Seller. 
 
6.2 Broker’s Fees 
 
Buyer has no liability or obligation to pay any fees or commissions to any broker, finder or agent with
respect to the transactions contemplated by this Agreement. 
 
7. Covenants 
 
7.1 Best Efforts

 
Each of the parties shall use its best
efforts, to the extent commercially reasonable, to take all action and to do all things necessary, proper or advisable including but not limited to obtaining all such waivers, permits, consents, approvals or other authorizations from third parties
and governmental entities, as may be necessary or desirable in connection with the transactions contemplated by this Agreement. 
 
7.3 Confidentiality 
 
Prior to the Closing Date (or at any time if the Closing does not occur) Buyer shall keep confidential and not disclose to any Person
(other than its employees, attorneys, accountants and advisors) or use (except in connection with the transactions contemplated hereby) all non-public information obtained by Buyer pursuant to this Agreement. Following the Closing, Seller shall keep
confidential and not disclose to any Person (other than its employees, attorneys, accountants and advisors) or use (except in connection with preparing Tax Returns and conducting proceeds relating to Taxes) any nonpublic information relating to the
Company and its Subsidiaries. This Section 7.3 shall not be violated by disclosure pursuant to court order or as otherwise required by law, on condition that notice of the requirement for such disclosure is given the other party prior to making any
disclosure and the party subject to such requirement cooperates as the other may reasonably request in resisting it. If the Closing does not occur, Buyer shall return to Seller, or destroy, all information it shall have received from Seller or
Company in connection with this Agreement and the transactions contemplated hereby, together with any copies or summaries thereof or extracts therefrom. Seller and Buyer shall use their best efforts to cause their respective representatives,
employees, attorneys, accountants and advisors to whom information is disclosed pursuant to this Agreement to comply with the provisions of this Section 7.3. 
 
8. Indemnification 
 
8.1 Indemnification by Seller 
 
Seller shall indemnify the Company and Buyer in respect of, and hold the Company and Buyer harmless against, any and all debts,
obligations and other liabilities (whether absolute, accrued, contingent, fixed or otherwise, or whether known or unknown, or due or to become due or otherwise), monetary damages, fines, fees, penalties, interest obligations, deficiencies, losses
and expenses (including without limitation attorneys fees and litigation costs) incurred or suffered by the Company and Buyer: 
 

10 

 
(a) Resulting
from any misrepresentation, breach of warranty or failure to perform any covenant or agreement of the Seller contained in this Agreement; 
 
(b) Resulting from any income, franchise, employment, excess or property taxes owing or arising on account of or in connection with the
operation of the Company prior to the Closing which taxes (if not previously paid) are not reflected on the Closing Balance Sheet; and 
 
(c) Resulting from any liability (other than the Assumed Liabilities) which are not reflected in the Closing Balance Sheet. 
 
8.2 Indemnification by Buyer 
 
Buyer shall indemnify Seller in respect of and hold Seller
harmless against any and all debts, obligations or other liabilities, monetary damages, fines, fees or penalty interest obligations, deficiencies, losses and expenses (including without limitation attorneys fees and litigation costs) incurred or
suffered by the Seller arising out of Buyer’s operation of the Company after the Closing Date. 
 
8.3 Survival 
 
The representations, warranties, covenants and agreements of Buyer and Seller set forth in this Agreement shall survive the closing and consummation of the transactions contemplated hereby for a period
of two (2) years from the Closing Date, except with respect to indemnification for tax liability which shall survive for the applicable statute of limitations and shall not be affected by any examination made for or on behalf of the Buyer or the
knowledge of the Buyer. If a notice is given before expiration of such periods, then (notwithstanding the expiration of such time period) the representation, warranty, covenant or agreement applicable to such claim shall survive until, but only for
purposes of, the resolution of such claims. 
 
9. Miscellaneous

 
9.1 Entire Agreement; Successors and Assigns

 
This Agreement and the Related
Agreements constitute the entire agreement between Seller and Buyer relative to the subject matter hereof. Any previous agreements between the parties are superseded by this Agreement and the Related Agreements. Subject to any exceptions
specifically set forth in this Agreement, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective executors, administrators, heirs, successors and assigns of the parties. 
 
9.2 Governing Law 
 
This Agreement shall be governed by and construed in
accordance with the laws of the State of Florida. 
 
9.3
Counterparts 
 

11 

 
This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 
9.4 Headings 
 
The headings of the Sections of this Agreement are for convenience and shall not by themselves determine the interpretation of this
Agreement. 
 
9.5 Notices 
 
Any notice required or permitted hereunder shall be given in
writing and shall be conclusively deemed effectively given upon personal delivery, or two days after deposit in the United States mail, by registered or certified mail, postage prepaid, addressed (i) if to the Seller, as set forth below the
Seller’s name on the signature page of this Agreement, and (ii) if to a Buyer, at such Buyer’s address as set forth on the signature page or at such other address as the Seller or such Buyer may designate by five days’ advance written
notice to the Buyer or the Seller, respectively. 
 
9.6
Amendment of Agreement 
 
Except as
expressly provided herein, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated other than by written instrument signed by the party against whom enforcement of any such amendment, waiver, discharge or
termination is sought. 
 
9.7 Parties in Interest

 
Nothing in this Agreement, whether
express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any persons other than the parties to it and their respective successors and assigns, nor is anything in this Agreement intended to relieve or
discharge the obligation or liability of any third persons to any party of this Agreement, nor shall any provision give any third persons any right of subrogation or action over against any party to this Agreement 
 
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written. 
 

	 SELLER
	 	 	 	 BUYER

	 Russell and Ingrid Whitney,
 As tenants by the entireties
	 	 	 	 Whitney Information Network, Inc.

	 232 Bayshore Drive
	 	 	 	 1612 E. Cape Coral Parkway

	 Cape Coral, FL 33904
	 	 	 	 Cape Coral, FL 33904

	 	 	 	 	 
	 	 	 	 	 
	
	 	 	 	

	 Russell A. Whitney
	 	 	 	 By: Ronald S. Simon, Secretary

	 	 	 	 	 
	 	 	 	 	 
	
	 	 	 	 
	 Ingrid Whitney
	 	 	 	 

 

12 

PROMISSORY NOTE 
 
$900,000.00 
 
February 28, 2003 
 
For Value Received, the undersigned, Whitney Information Network, Inc. (hereinafter referred to as “Maker”), hereby promises to pay to the order of Russell and Ingrid Whitney as tenants by
the entireties (“Payee”), at 232 Bayshore Drive, Cape Coral, FL 33904, (or at such other place as the holder hereof may from time to time designate in writing, the principal sum of nine hundred thousand dollars ($900,000.00), in six (6)
equal semi-annual installments of one hundred fifty thousand dollars ($150,000.00), such installments due on February 28, 2004 and August 31th 2004 on each February 28th and August 31 of the next two years thereafter, with interest
at 7%. 
 
In the event of any failure to pay when due any
installment of the principal sum hereof, and the continuance of such failure to pay for a period of ten (10) days after written notice, by certified or registered mail or by hand delivery, of such failure, this promissory note shall be considered to
be in default and the entire unpaid principal sum hereof, together with accrued interest, shall at the option of the holder hereof become immediately due and payable in full. 
 
Except as set forth herein, Maker waives presentment, demand and presentation for payment, notice of nonpayment and dishonor,
protest and notice of protest and expressly agrees that this promissory note or any payment hereunder may be extended from time to time without in any way affecting the liability of Maker. 
 
In the event of default and the placement of this promissory note in the hands of an attorney or collection agency for
collection, Maker agrees to pay all collection costs and expenses, including attorneys’ fees equal to fifteen per cent of the amount then due hereunder. 
 
The validity and construction of this promissory note and all matters pertaining hereto are to be determined in accordance with the laws of the State of
Florida. 
 
In Witness Whereof, Maker by its appropriate agent
thereunto duly authorized, has executed this promissory note on this 28th day of February, 2003. 
 
Whitney Information Network, Inc. 

	
	 
	
	

	 Ronald S. Simon, Secretary

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