Document:

Unassociated Document

                                                   

        

Exhibit 10.1 – Memorandum of Understanding - July 13, 2010

Memorandum of Understanding

 

July 13, 2010

 

Michael P. Hilton, John A. McNiff III (the “Minority Members”) and Anchor Funding Services, Inc. (“Anchor”) are the members of Brookridge Funding Services, LLC (“Brookridge” and together with the Minority Members and Anchor, each a “Party” and together, the “Parties”) and are parties to the following agreements each dated December 7, 2009:  the Asset Purchase Agreement among the parties and Brookridge Funding, LLC (the “Purchase Agreement”); the Operating Agreement of Brookridge (the “Operating Agreement”); and the employment agreements between Brookridge and each of the Minority Members (the “Employment Agreements” and together with the Purchase Agreement and the Operating Agreement, the “Transaction Documents”).  The Parties have agreed to rescind the transactions contemplated by the Transaction Documents on the terms specified herein.  Capitalized terms used but not defined herein shall have the meaning ascribed thereto in the Operating Agreement.

 

	
1.  

	
Beginning on the date hereof and ending on October 7, 2010 (the “Option Period”) the Minority Members shall have the right to purchase 100% of Anchor’s Interest on the following terms:

 

	
(a)  

	
The Minority Members shall be entitled to approach potential financing sources to finance the purchase of Anchor’s Interest and the repayment of all debt owed by Brookridge to MGM Funding, LLC in their discretion.

 

	
(b)  

	
The closing of the transactions contemplated by this Section (the “BR Closing”) shall take place on a date mutually agreeable to the parties on or before the end of the Option Period.  Each Party shall be responsible for its own costs and expenses incurred in connection with such transactions.

 

	
(c)  

	
The Purchase price for Anchor’s Interest shall consist of a cash payment equal to its Pro Rata share of the total book value of the Company as of the BR Closing determined in accordance with U.S. generally accepted accounting principles; provided, it is acknowledged and agreed that for valuation purposes all Brookridge’s rights with respect to the Sherburne account (the “Sherburne Account”) will be valued at $0.

 

	
(d)  

	
Prior to the BR Closing the Company will operate in the ordinary course of business.

 

	
(e)  

	
At the BR Closing, the Sherburne Account and all rights with respect to Brookridge’s current website (but not including any rights with respect to the Brookridge name or web address/domain name) will be assigned to Anchor; provided, it is understood and agreed that such assignments shall have no impact on the determination of the purchase price for Anchor’s Interest and notwithstanding such assignment the Minority Members shall retain their right to share in any recovery with respect to the Sherburne Account in accordance with Section 3 below.

 

	
(f)  

	
At the BR Closing:

 

	
(1)  

	
All outstanding amounts owed by Brookridge to MGM Funding, LLC under its loan agreement with Brookridge shall be paid in full, Brookridge shall pay the purchase price for Anchor’s Interest and the Parties shall execute and deliver documents to effect the transfer of Achor’s Interest.

 

	
(2)  

	
The Minority Members shall be released from their Personal Guaranties (as such term in defined in the Employment Agreements) and shall forfeit the options granted to them under the Employment Agreements.

 

	
(3)  

	
Anchor shall enter into a non-solicitation agreement with Brookridge under which it shall be prohibited for a period of two years from soliciting current customers of Brookridge.

 

	
(4)  

	
The Parties will be released from any and all obligations under the Transaction Documents and will sign mutual releases releasing each other from any and all liabilities relating thereto or otherwise existing.

 

 

 

  

  

  

 

 

	
2.  

	
If for any reason the Closing shall not have occurred during the Option Period Anchor shall purchase 100% of the Minority Members’ Interests on the following terms:

 

	
(a)  

	
The closing of the transactions contemplated by this Section (the “Anchor Closing”) shall take place on a date mutually agreeable to the parties on or before October 12, 2010. Each Party shall be responsible for its own costs and expenses incurred in connection with such transactions.

 

	
(b)  

	
The Purchase price for Minority Members’ Interests shall consist of a cash payment equal to their Pro Rata share of the total book value of the Company as of the Anchor Closing determined in accordance with U.S. generally accepted accounting principles; provided, it is acknowledged and agreed that for valuation purposes the Sherburne Account will be valued at $0.

 

	
(c)  

	
Notwithstanding the Anchor Closing the Minority Members shall retain their right to share in any recovery with respect to the Sherburne Account in accordance with Section 3 below.

 

	
(d)  

	
At the Anchor Closing:

 

	
(1)  

	
Anchor shall pay the purchase price for the Minority Members’ Interests and the Parties shall execute and deliver documents to effect the transfer of such Interests.

 

	
(2)  

	
All rights with respect to Brookridge’s name and web address/domain name (but not including any rights with respect to the Brookridge website) will be assigned to the Minority Members; provided, it is understood and agreed that such assignment shall have no impact on the determination of the purchase price for the Minority Members’ Interests.

 

	
(3)  

	
The Minority Members shall be released from their Personal Guaranties (as such term in defined in the Employment Agreements) and shall forfeit the options granted to them under the Employment Agreements.

 

	
(4)  

	
The Minority Members shall enter into a non-solicitation agreement with Anchor under which they shall be prohibited for a period of two years from soliciting current customers of Brookridge and a confidentiality agreement covering Anchor (but not Brookridge) information.

 

	
(5)  

	
The Parties will be released from any and all obligations under the Transaction Documents and will sign mutual releases releasing each other from any and all liabilities relating thereto or otherwise existing.

 

	
3.  

	
With respect to the Sherburne Account the Parties acknowledge and agree that:

 

	
(a)  

	
Anchor shall control collection and recovery efforts and shall keep the Minority Members reasonably informed concerning substantive developments pertaining thereto.

 

	
(b)  

	
Prior to the first to occur of the BR Closing and the Anchor Closing, Brookridge shall bear all costs and expenses incurred in connection with such collection and recovery efforts.

 

	
(c)  

	
Following the first to occur of the BR Closing and the Anchor Closing, the Parties shall share all out-of-pocket costs and expenses as well as all collections on a Pro Rata basis based on the Parties’ current Percentage Interests.  Anchor shall invoice the Minority Members for such expenses as they are incurred which such invoices shall be payable within 20 days after delivery.  In the event the Minority Members shall fail to make any payment due in accordance with the foregoing within 10 days after receiving notice concerning a failure to pay any such invoice they shall forfeit any and all rights to share in collections.

 

	
4.  

	
The parties agree that the Operating Agreement is hereby amended to effect the foregoing.  Except as specifically modified herein, the Transaction Documents shall remain in full force and effect.

 

[Signature page follows]

 

 

 

  

  

  

 

 

Acknowledged and agreed:

 

	 	 	 	 	 
	
/s/ Michael P. Hilton 

	 	 	
/s/ John A. McNiff III  

	 
	
Michael P. Hilton  

	 	 	
John A. McNiff III

	 
	
 

	 	 	
 

	 

                                                   

 

Anchor Funding Services, Inc.

 

	 	 	 	 	 
	
/s/ Brad Bernstein 

	 	 	
 

	 
	
Name: Brad Bernstein

	 	 	
 

	 
	
Title: PresidentUnassociated Document

Exhibit 10.01

EXCHANGE AGREEMENT

This EXCHANGE AGREEMENT made and entered effective as of April 23, 2010, by and between CLICKER Inc., a Nevada corporation (the “Company”) and Cortell Communications Inc., a Delaware Corporation (“Cortell”).

 

WITNESSETH:

WHEREAS, the Company issued Cortell a promissory note in a principal amount of $70,000 on June 1, 2009, which was due on December 9, 2009, which has accrued interest of $2,100.00 as of April 23, 2010 at the rate of 8% per annum after December 9, 2009 (the “Debt”);

 

WHEREAS, the Company has requested that Cortell agree to restructure (the “Restructuring”) the Debt into a Convertible Note (the “New Debt”) with such New Debt convertible into the Company’s shares of common stock at a fifty percent (50%) discount to market, thereby eliminating the Debt;

WHEREAS, Cortell has agreed to the Restructuring and the New Debt;

WHEREAS, the board of directors of the Company deems it advisable and in the best interests of the Company to consummate the transactions contemplated by this Agreement upon the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements set forth herein and in reliance upon the undertakings, representations, warranties and indemnities contained herein, the Company and Cortell hereby agree as follows:

ARTICLE 1

EXCHANGE OF NOTES; CLOSING

Section 1.1                      Restructuring.  Subject to the terms and conditions herein stated, Cortell agrees at the Closing that the Debt shall be restructured and, as so restructured, to exchange the Debt for the New Debt pursuant to the Convertible Note dated as of the date hereof (the “Convertible Note”).

Section 1.2                      Closing.  The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place simultaneously with the execution and delivery of this Agreement and the Convertible Note.

Section 1.3                      Deliveries at Closing.  At the closing, Cortell and the Company shall exchange executed copies of this Agreement and the Convertible Note.

 

 

 

  

1

  

 

ARTICLE 2

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company represents and warrants to Cortell as of the date hereof as follows:

Section 2.1                      Organization.  The Company is a corporation duly organized, validly existing and in good standing under the laws of the state of Nevada and has all requisite corporate power and authority to own its properties and carry on its business as now being conducted.

Section 2.2                      Authority; Enforceability.  The Company has the requisite corporate power and authority to execute and deliver this Agreement and to carry out its obligations hereunder.  The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Company and no other corporate proceedings on the part of the Company are necessary to authorize this Agreement or to consummate the transactions so contemplated.  This Agreement has been duly executed and delivered by the Company and constitutes a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as (a) enforceability may be limited by applicable bankruptcy, insolvency, fraudulent transfer, moratorium or similar laws from time to time in effect affecting creditors’ rights generally and (b) the availability of equitable remedies may be limited by equitable principles of general applicability.

Section 2.3                      Third Party Consents.  No consent, authorization, order or approval of, or filing or registration with, any governmental authority or other person is required for the execution and delivery of this Agreement or the consummation by the Company of any of the transactions contemplated hereby.

Section 2.4                      No Other Representations or Warranties.  Except as set forth above in this Section 2, no other representations or warranties, express or implied, are made in this Agreement by the Company to Cortell.

ARTICLE 3

MISCELLANEOUS

Section 3.1                      Survival of Representations, Warranties and Agreements. The representations, warranties, covenants and agreements in this Agreement or in any instrument delivered pursuant to this Agreement shall survive the Closing and shall not be limited or affected by any investigation by or on behalf of any party hereto.

Section 3.2.                     Further Assurances.  Each of the Company and Cortell will use its, as the case may be, best reasonable efforts to take all action and to do all things necessary, proper or advisable on order to consummate and make effective the transactions contemplated by this Agreement.

 

 

  

2

  

 

Section 3.3                      Entire Agreement; No Third Party Beneficiaries.  This Agreement (including the documents, exhibits and instruments referred to herein) (a) constitutes the entire agreement and supersedes all prior agreements, and understandings and communications, both written and oral, among the parties with respect to the subject matter hereof, and (b) is not intended to confer upon any person other than the parties hereto any rights or remedies hereunder.

Section 3.4                      Governing Law.  This Agreement shall be governed and construed in accordance with the laws of the State of New York without regard to any applicable principles of conflicts of law.

Section 3.5                      Counterparts.  This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which taken together shall constitute one and the same document.

Section 3.6                      Amendment and Modification.  This Agreement may not be amended or modified except by an instrument in writing signed by each of the parties hereto.

Section 3.7                      No Joint Venture.  Nothing contained herein shall make Cortell or the Company, partners or joint venturers or create any relationship or obligation between any of them except as expressly set forth herein.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed themselves or by their respective duly authorized officers as of April 23, 2010.

 

	 	CLICKER INC.	 
	 	 	 	 
	
 

	
By: 

	/s/ ALBERT AIMERS	 
	 	 	Name: Albert Aimers	 
	 	 	Title: Chief Executive Officer	 
	 	 	 	 

	 	CORTELL COMMUNICATIONS INC.	 
	 	 	 	 
	
 

	
By: 

	/s/ GARY CORTELL	 
	 	 	Name: Gary Cortell	 
	 	 	Title: Chief Executive Officer	 
	 	 	 	 

        

 

 

 

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