Document:

ex10_2.htm

Exhibit 10.2

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of the 9th day of August 2011, by and between interclick, inc., a Delaware corporation headquartered at 11 West 19th Street, 10th floor, New York, NY 10011 and   Andrew Katz, an individual residing at 365 SE 6th Avenue, Apt 307, Delray Beach, Florida 33483 (“Executive”).  As used herein, the “Effective Date” of this Agreement shall mean January 1, 2011.

 

W I T N E S S E T H:

 

WHEREAS, the Executive desires to be employed by the Company as its Chief Technology Officer and the Company wishes to employ Executive in such capacity;

 

NOW, THEREFORE, in consideration of the foregoing recitals and the respective covenants and agreements of the parties contained in this document, the Company and Executive hereby agree as follows:

 

1.             Employment and Duties.  The Company agrees to employ and Executive agrees to serve as the Company's Chief Technology Officer.  The duties and responsibilities of Executive shall include the duties and responsibilities as the Chief Financial Officer may from time to time assign to Executive.

 

Executive shall devote substantially all of his working time and efforts during the Company's normal business hours to the business and affairs of the Company and its subsidiaries and to the diligent and faithful performance of the duties and responsibilities duly assigned to him pursuant to this Agreement.  Provided that none of the additional activities interferes with the performance of the duties and responsibilities of Executive or are determined by the Board of directors inconsistent with the position, standing, stature, reputation or best interests of the Company, nothing in this Section 1, shall prohibit Executive from (a) serving as a director or member of a committee of up to two (2) entities that do not, in the good faith determination of the Board, compete or present the appearance of competition with the Company or otherwise create, or could create, in the good faith determination of the Board, a conflict of interest or appearance of a conflict of interest with the business of the Company; (b) delivering lectures, fulfilling speaking engagements, and any writing or publication relating to his area of expertise; provided, that any fees, royalties or honorariums received therefrom shall be promptly turned over to the Company during the term of Executive’s Employment Period (defined below); (c) serving as a director or trustee of any governmental, charitable or educational organization or (d) engaging in additional activities in connection with personal investments and community affairs; provided that such activities are not inconsistent with Executive’s duties under this Agreement and do not violate the terms of Section 15.

 

2.             Term.  The term of this Agreement shall commence on the Effective Date and shall continue for a period of two (2) years following the Effective Date and shall be automatically renewed for successive one (1) year periods thereafter unless either party provides the other party with written notice of his or its intention not to renew this Agreement at least three (3) months prior to the expiration of the initial term or any renewal term of this Agreement.  “Employment Period” shall mean the initial two (2) year term plus renewals, if any.

 

  

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3.             Place of Employment.  Executive's services shall be performed at the Company's offices located in Boca Raton, Florida. The parties acknowledge, however, that Executive may be required to travel in connection with the performance of his duties hereunder.

 

4.             Base Salary.  For all services to be rendered by Executive pursuant to this Agreement, the Company agrees to pay Executive during the Employment Period a base salary (the "Base Salary") at an annual rate of $285,000.00, with such adjustments to the Base Salary as shall be determined by the Board. The Base Salary shall be paid in periodic installments in accordance with the Company's regular payroll practices.

 

5.             Bonuses.  During the Employment Period, the Executive shall be entitled to an annual bonus (the “Annual Bonus”) if the Company meets or exceeds criteria adopted by the Compensation Committee of the Board of Directors (the “Compensation Committee”) for earning Bonuses which shall be adopted by the Compensation Committee annually.  Bonuses shall be paid by the Company to the Executive promptly after determination that the relevant targets have been met, it being understood that the attainment of any financial targets associated with any bonus shall not be determined until following the completion of the Company’s annual audit and public announcement of such results and shall be paid promptly following the Company’s announcement of earnings.  The “Target Bonus” for Executive for 2011 shall be 50% of Base Salary upon achievement of 100% of the criteria for Executive established by the Compensation Committee and such percentage as the Compensation Committee shall determine during the Employment Period.  The Compensation Committee may provide for lesser or greater percentage Bonus payments for Executive upon achievement of partial or additional criteria established or determined by the Compensation Committee from time to time.  For the avoidance of doubt, if Executive is employed upon expiration of the term of this Agreement, he shall be entitled to the Annual Bonus for such last year on a pro-rata basis through the last date of employment, even if he is not employed by the Company on the date the Annual Bonus is paid for such last year.

 

6.             Severance Compensation.  Upon termination of Executive’s employment prior to expiration of the Employment Period unless the Executive’s employment is terminated for Cause or Executive terminates his employment without Good Reason, the Executive shall be entitled to receive any and all reasonable expenses paid or incurred by the Executive in connection with and related to the performance of his duties and responsibilities for the Company during the period ending on the termination date, any accrued but unused vacation time through the termination date in accordance with Company policy and an amount equal to 100% of the sum of Executive’s then-current Base Salary and current Annual Bonuses earned during the prior twelve (12) months (the “Separation Period”), immediately prior to the date of termination (the “Separation Payment”), provided that Executive executes an agreement releasing Company and its affiliates from any liability associated with this Agreement and complies with his other obligations under this Agreement as provided in Section 14 and 15 hereof, as a condition to such Separation Payment. Subject to the terms hereof, one-half of the Separation Payment shall be paid within ten (10) days following the execution and delivery of the aforementioned release and the balance of the Separation Payment shall be paid in accordance with the customary payroll practices of the Company, provided, however, that following the occurrence of the Change of Control the Separation Payment shall be payable within ninety (90) days of the termination of this Agreement and the employment of Executive  for Good Reason (as defined below) following the Change of Control.

 

  

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Subject to the Executive’s (1) timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) with respect to the Company’s group health insurance plans in which the Employee participated immediately prior to the termination date (“COBRA Continuation Coverage”), and (2) continued payment of premiums for such plans at the active employee rate (excluding, for purposes of calculating cost, an employee’s ability to pay premiums with pre-tax dollars), Company shall promptly reimburse Executive for the cost of COBRA Continuation Coverage for the Executive and his eligible dependents until the earliest of (x) the Executive or his eligible dependents, as the case may be, ceasing to be eligible under COBRA, and (y) twelve (12) months following the termination date (the benefits provided under this clause (ii), the “Medical Continuation Benefits”) or until such time as Executive shall obtain reasonably equivalent benefits from subsequent employment or spousal benefits.

 

7.             Equity Awards.  The Executive shall be eligible for such grants of awards under the Company’s 2011 Incentive Plan (or any successor or replacement plan adopted by the Board of Directors and approved by the stockholders of the Company) (the “Plan”) as the Compensation Committee may from time to time determine and initially, based on the following as set forth below (the “Share Awards”).  Share Awards shall be subject to the applicable Plan terms and conditions, provided, however, that Share Awards shall be subject to any additional terms and conditions as are provided herein or in any award certificate(s), which shall supersede any conflicting provisions governing Share Awards provided under the Plan.

 

The Executive has been awarded 30,000 shares of restricted Company Common Stock under the Company’s 2007 Incentive and Award Plan as of March 21, 2011 as a 2011 Share Award and has received grants of Company options.  The 2011 Share Award and any and all additional option grants or other awards (e.g., RSU’s) then held by Executive: (i) shall vest as set forth in the particular awards, provided Executive is still employed by the Company on each vesting date, and (ii) shall vest as to 100% of any then unvested portions upon the occurrence of a Change of Control. .   Prior to a Change of Control, any remaining unvested portion of the 2011 Share Award and other awards shall vest if the Executive’s employment or this Agreement is terminated by Executive for Good Reason or by the Company without Cause.

 

8.             Clawback Rights.  The Annual Bonus, and any and all stock based compensation (such as options and equity awards) (collectively, the “Clawback Benefits”) shall be subject to “Company Clawback Rights” as follows: During the period that the Executive is employed by the Company and  upon the termination of the Executive’s employment and for a period of three (3) years thereafter, if there is a restatement of any financial results from which any Clawback Benefits to Executive shall have been determined, Executive agrees to repay any amounts which were determined by reference to any Company financial results which were later restated (as defined below), to the extent the Clawback Benefits amounts paid exceed the Clawback Benefits amounts that would have been paid, based on the restatement of the Company’s financial information.  All Clawback Benefits amounts resulting from such restated financial results shall be retroactively adjusted by the Compensation Committee to  take into account the restated results, and any excess portion  of  the Clawback Benefits  resulting from such restated results shall be immediately surrendered to the Company  and if not so surrendered within ninety (90) days of the revised calculation being provided to the Executive by the Compensation Committee following a publicly announced restatement, the Company shall have the right to take any and all action to effectuate such adjustment. The calculation of the Revised Clawback Benefits amount shall be determined by the Compensation Committee in good faith and in accordance with applicable law, rules and regulations.  All determinations by the Compensation Committee with respect to the Clawback Rights shall be final and binding on the Company and Executive.  The Clawback Rights shall terminate following a Change of Control, subject to applicable law, rules and regulations. For purposes of this Section 8, a restatement of financial results that requires a repayment of a portion of the Clawback Benefits amounts shall mean a restatement resulting from material non-compliance of the Company with any financial reporting requirement under the federal securities laws and shall not include a restatement of financial results resulting from subsequent changes in accounting pronouncements or  requirements which were not in effect on the date the financial statements were originally prepared (“Restatements”).  The parties acknowledge it is their intention that the foregoing Clawback Rights as relates to Restatements conform in all respects to the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) and requires recovery of all “incentive-based” compensation, pursuant to the provisions of the Dodd-Frank Act and any and all rules and regulations promulgated thereunder from time to time in effect.  Accordingly, the terms and provisions of this Agreement shall be deemed automatically amended from time to time to assure compliance with the Dodd-Frank Act and such rules and regulation as hereafter may be adopted and in effect.

 

  

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9.             Expenses.  Executive shall be entitled to prompt reimbursement by the Company for all reasonable ordinary and necessary travel, entertainment, and other expenses incurred by Executive while employed (in accordance with the policies and procedures established by the Company for its senior executive officers) in the performance of his duties and responsibilities under this Agreement; provided, that Executive shall properly account for such expenses in accordance with Company policies and procedures.

 

10.           Other Benefits.  During the term of this Agreement, the Executive shall be eligible to participate in incentive, stock purchase, savings, retirement (401(k)), and welfare benefit plans, including, without limitation, health, medical, dental, vision, life (including accidental death and dismemberment) and disability insurance plans (collectively, "Benefit Plans"), in substantially the same manner and at substantially the same levels as the Company makes such opportunities available to the Company's managerial or salaried executive employees.  The Company shall pay one hundred (100%) percent of the cost of individual coverage and fifty (50%) percent of the incremental cost of dependent coverage for Executive’s dependents.

 

11.           Intentionally omitted.

 

12.           Stock Options and Restricted Stock.  The Executive shall be eligible for such grants of awards under the Equity Incentive Plans as the Compensation Committee or the Board may from time to time determine

 

13.           Termination of Employment.

 

(a)           Death.  If Executive dies during the Employment Period, this Agreement and the Executive’s employment with the Company shall automatically terminate and the Company shall have no further obligations to the Executive or his heirs, administrators or executors with respect to compensation and benefits accruing thereafter, except for the obligation to pay to the Executive’s heirs, administrators or executors any earned but unpaid Base Salary, unpaid pro rata Annual Bonus for the current year through the date of death,  reimbursement of any and all reasonable expenses paid or incurred by the Executive in connection with and related to the performance of his duties and responsibilities for the Company during the period ending on the termination date and any accrued but unused vacation time through the termination date in accordance with Company policy.  The Company shall deduct, from all payments made hereunder, all applicable taxes, including income tax, FICA and FUTA, and other appropriate deductions.  In addition, the Executive’s spouse and minor children shall be entitled to Medical Continuation Coverage.

 

  

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(b)           Disability.  In the event that, during the term of this Agreement the Executive shall be prevented from performing his duties and responsibilities hereunder to the full extent required by the Company by reason of Disability (as defined below), this Agreement and the Executive’s employment with the Company shall automatically terminate and the Company shall have no further obligations or liability to the Executive or his heirs, administrators or executors with respect to compensation and benefits accruing thereafter, except for the obligation to pay the Executive or his heirs, administrators or executors any earned but unpaid Base Salary, unpaid pro rata Annual Bonus for the current year accrued through the Executive’s last date of Employment with the Company, reimbursement of any and all reasonable expenses paid or incurred by the Executive in connection with and related to the performance of his duties and responsibilities for the Company during the period ending on the termination date and any accrued but unused vacation time through the termination date in accordance with Company policy. The Company shall deduct, from all payments made hereunder, all applicable taxes, including income tax, FICA and FUTA, and other appropriate deductions through the last date of the Executive’s employment with the Company. In addition, the Executive’s spouse and minor children shall be entitled to Medical Continuation Coverage.  For purposes of this Agreement, “Disability” shall mean a physical or mental disability that prevents the performance by the Executive, with or without reasonable accommodation, of his duties and responsibilities hereunder for a period of not less than an aggregate of three (3) months during any twelve (12) consecutive months.

 

(c)           Cause.

 

(1)           At any time during the Employment Period, the Company may terminate this Agreement and the Executive’s employment hereunder for Cause. For purposes of this Agreement, “Cause” shall mean: (a) the willful and continued failure of the Executive to perform substantially his duties and responsibilities for the Company (other than any such failure resulting from Executive’s death or Disability) after a written demand by the Board for substantial performance is delivered to the Executive by the Company, which specifically identifies the manner in which the Board believes that the Executive has not substantially performed his duties and responsibilities, which willful and continued failure is not cured by the Executive within thirty (30) days following his receipt of such written demand; (b) the conviction of, or plea of guilty or nolo contendere to, a felony, or (c) fraud, dishonesty or gross misconduct which is materially and demonstratively injurious to the Company. Termination under clauses (b) or (c) of this Section 13(c)(1) shall not be subject to cure.

 

  

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(2)           For purposes of this Section 13(c), no act, or failure to act, on the part of Executive shall be considered “willful” unless done, or omitted to be done, by him in bad faith and without reasonable belief that his action or omission was in, or not opposed to, the best interest of the Company (including reputationally).  Prior to any termination for Cause, Executive will be given five (5) business days written notice specifying the alleged Cause event and will be entitled to appear (with counsel) before the full Board to present information regarding his views on the Cause event, and after such hearing, there is at least a majority vote of the full Board (other than Executive) to terminate him for Cause.  After providing the notice in the foregoing sentence, the Board may suspend the Executive with full pay and benefits until a final determination pursuant to this Section 13(c) has been made.

(3)           Upon termination of this Agreement for Cause, the Company shall have no further obligations or liability to the Executive or his heirs, administrators or executors with respect to compensation and benefits thereafter, except for the obligation to pay the Executive any earned but unpaid Base Salary, reimbursement of any and all reasonable expenses paid or incurred by the Executive in connection with and related to the performance of his duties and responsibilities for the Company during the period ending on the termination date and any accrued but unused vacation time through the termination date in accordance with Company policy.  The Company shall deduct, from all payments made hereunder, all applicable taxes, including income tax, FICA and FUTA, and other appropriate deductions.

 

(d)          Good Reason and Without Cause.

 

(1)           At any time during the term of this Agreement, subject to the conditions set forth in Section 13(d)(2) below, the Executive may terminate this Agreement and the Executive’s employment with the Company for “Good Reason.” For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following events: (A) the assignment, without the Executive’s consent, to the Executive of duties that are significantly different from, and that result in a substantial diminution of, the duties that he assumed on the Effective Date (including reporting to anyone other than solely and directly to the Chief Financial Officer or Chief Executive Officer); (B) the assignment, without the Executive’s consent, to the Executive of a title that is different from and subordinate to the title Chief Technology Officer of the Company, provided, however, for the absence of doubt following a Change of Control, should the Executive cease to retain either the title or responsibilities assumed on the Effective Date, or Executive is required to serve in a diminished capacity or lesser title  in a division or unit of another entity (including the acquiring entity), such event shall constitute Good Reason regardless of the title of Executive in such acquiring company, division or unit; (C) the occurrence of a Change of Control; (D) material breach by the Company of this Agreement; or (E) the re-location of Executive to an office outside of Boca Raton, Florida.

 

(2)           Except with respect to subparagraph “(C)” in Section 13(d)(1) above, the Executive shall not be entitled to terminate this Agreement for Good Reason unless and until he shall have delivered written notice to the Company within ninety (90) days of the date upon which the facts giving rise to Good Reason occurred of his intention to terminate this Agreement and his employment with the Company for Good Reason, which notice specifies in reasonable detail the circumstances claimed to provide the basis for such termination for Good Reason, and the Company shall not have eliminated the circumstances constituting Good Reason within thirty (30) days of its receipt from the Executive of such written notice.

 

  

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(3)           In the event that the Executive terminates this Agreement and his employment with the Company for Good Reason or the Company terminates this Agreement and Executive’s employment with the Company without Cause, the Company shall pay or provide to the Executive (or, following his death, to the Executive’s heirs, administrators or  executors) the Separation Payment amount; provided, however, that (a) in the event Executive elects to terminate this Agreement for Good Reason in accordance with subparagraph “(C)” in Section 13(d)(1), such election must be made within ninety (90) days of the occurrence of the Change of Control.  The Company shall deduct, from all payments made hereunder, all applicable taxes, including income tax, FICA and FUTA, and other appropriate deductions.

 

 (4)           Executive shall not be required to mitigate the amount of any payment provided for in this Section 13(d) by seeking other employment or otherwise, nor shall the amount of any payment provided for in this Section 13(d) be reduced by any compensation earned by the Executive as the result of employment by another employer or business or by profits earned by Executive from any other source at any time before and after the termination date. The Company’s obligation to make any payment pursuant to, and otherwise to perform its obligations under, this Agreement shall not be affected by any offset, counterclaim or other right that the Company may have against Executive for any reason.  Notwithstanding anything herein to the contrary, the benefits to Executive under this Agreement shall be reduced by the amount of any insurance proceeds payable to Executive.

 

(e)           Without “Good Reason” by Executive.  At any time during the term of this Agreement, the Executive shall be entitled to terminate this Agreement and the Executive’s employment with the Company without Good Reason by providing prior written notice of at least thirty (30) days to the Company.  Upon termination by the Executive of this Agreement or the Executive’s employment with the Company without Good Reason, the Company shall have no further obligations or liability to the Executive or his heirs, administrators or executors with respect to compensation and benefits thereafter, except for the obligation to pay the Executive any earned but unpaid Base Salary, reimbursement of any and all reasonable expenses paid or incurred by the Executive in connection with and related to the performance of his duties and responsibilities for the Company during the period ending on the termination date and any accrued but unused vacation time through the termination date in accordance with Company policy. The Company shall deduct, from all payments made hereunder, all applicable taxes, including income tax, FICA and FUTA, and other appropriate deductions.

 

(f)            Change of Control.  For purposes of this Agreement, “Change of Control” shall mean the occurrence of any one or more of the following: (i) the accumulation (if over time, in any consecutive twelve (12) month period), whether directly, indirectly, beneficially or of record, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended) of more than 50% or more of the shares of the outstanding Common Stock of the Company, whether by merger, consolidation, sale or other transfer of shares of Common Stock (other than a merger or consolidation where the stockholders of the Company prior to the merger or consolidation are the holders of a majority of the voting securities of the entity that survives such merger or consolidation), (ii) a sale of all or substantially all of the assets of the Company or (iii) during any period of twelve (12) consecutive months, the individuals who, at the beginning of such period, constitute the Board, and any new director whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the 12-month period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the Board; provided, however, that the following acquisitions shall not constitute a Change of Control for the purposes of this Agreement: any acquisition of Common Stock or securities convertible into Common Stock by any employee benefit plan (or related trust) sponsored by or maintained by the Company.

 

  

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(g)           Any termination of the Executive’s employment by the Company or by Executive (other than termination by reason of Executive’s death) shall be communicated by written Notice of Termination to the other party of this Agreement. For purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated, provided, however, failure to provide timely notification shall not affect the employment status of Executive.

 

14.           Confidential Information.

 

(a)           Disclosure of Confidential Information. The Executive recognizes, acknowledges and agrees that he has had and will continue to have access to secret and confidential information regarding the Company, its subsidiaries and their respective businesses (“Confidential Information”), including but not limited to, its products, methods, formulas, software code, patents, sources of supply, customer dealings, data, know-how, trade secrets and business plans, provided such information is not in or does not hereafter become part of the public domain, or become known to others through no fault of the Executive.  The Executive acknowledges that such information is of great value to the Company, is the sole property of the Company, and has been and will be acquired by him in confidence.  In consideration of the obligations undertaken by the Company herein, the Executive will not, at any time, during or after his employment hereunder, reveal, divulge or make known to any person, any information acquired by the Executive during the course of his employment, which is treated as confidential by the Company, and not otherwise in the public domain. The provisions of this Section 14 shall survive the termination of the Executive’s employment hereunder.

 

(b)           The Executive affirms that he does not possess and will not rely upon the protected trade secrets or confidential or proprietary information of any prior employer(s) in providing services to the Company or its subsidiaries.

 

(c)           In the event that the Executive’s employment with the Company terminates for any reason, the Executive shall deliver forthwith to the Company any and all originals and copies, including those in electronic or digital formats, of Confidential Information; provided, however, Executive shall be entitled to retain (i) papers and other materials of a personal nature, including, but not limited to, photographs, correspondence, personal diaries, calendars and rolodexes, personal files and phone books, (ii) information showing his compensation or relating to reimbursement of expenses, (iii) information that he reasonably believes may be needed for tax purposes and (iv) copies of plans, programs and agreements relating to his employment, or termination thereof, with the Company.

 

  

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15.           Non-Competition and Non-Solicitation.

 

(a)           The Executive agrees and acknowledges that the Confidential Information that the Executive has already received and will receive is valuable to the Company and that its protection and maintenance constitutes a legitimate business interest of the Company, to be protected by the non-competition restrictions set forth herein. The Executive agrees and acknowledges that the non-competition restrictions set forth herein are reasonable and necessary and do not impose undue hardship or burdens on the Executive. The Executive also acknowledges that the products and services developed or provided by the Company, its affiliates and/or its clients or customers are or are intended to be sold, provided, licensed and/or distributed to customers and clients primarily in and throughout the United States (the “Territory”) (to the extent the Company comes to operate, either directly or through the engagement of a distributor or joint or co-venturer, or sell a significant amount of its products and services to customers located, in areas other than the United States during the term of the Employment Period, the definition of Territory shall be automatically expanded to cover such other areas), and that the Territory, scope of prohibited competition, and time duration set forth in the non-competition restrictions set forth below are reasonable and necessary to maintain the value of the Confidential Information of, and to protect the goodwill and other legitimate business interests of, the Company, its affiliates and/or its clients or customers.

 

(b)           The Executive hereby agrees and covenants that he shall not, during the Employment Period and any Separation Period without the prior written consent of the Company, directly or indirectly, in any capacity whatsoever, including, without limitation, as an employee, employer, consultant, principal, partner, shareholder, officer, director or any other individual or representative capacity (other than (i) as a holder of less than two (2%) percent of the outstanding securities of a Company whose shares are traded on any national securities exchange or (ii) as a limited partner, passive minority interest holder in a venture capital fund, private equity fund or similar investment entity which holds or may hold an equity or debt position in portfolio companies that are competitive with the Company; provided however, that the Executive shall be precluded from serving as an operating partner, general partner, manager or governing board designee with respect to such portfolio companies), or whether on the Executive's own behalf or on behalf of any other person or entity or otherwise howsoever, during the Employment Period and the Separation Period and thereafter to the extent described below, within the Territory:

 

(1)           Engage, own, manage, operate, control, be employed by, consult for, participate in, or be connected in any manner with the ownership, management, operation or control of any business in competition with the business of the Company;

 

(2)           Recruit, solicit or hire, or attempt to recruit, solicit or hire, any employee, or independent contractor of the Company to leave the employment (or independent contractor relationship) thereof, whether or not any such employee or independent contractor is party to an employment agreement, for the purpose of competing with the business of the Company;

 

  

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(3)           Attempt in any manner to solicit or accept from any customer of the Company, with whom Executive had significant contact during Executive’s employment by the Company (whether under this Agreement or otherwise), business of the kind or competitive with the business done by the Company with such customer or to persuade or attempt to persuade any such customer to cease to do business or to reduce the amount of business which such customer has customarily done or might do with the Company, or if any such customer elects to move its business to a person other than the Company, provide any services of the kind or competitive with the business of the Company for such customer, or have any discussions regarding any such service with such customer, on behalf of such other person; or

 

(4)           Interfere with any relationship, contractual or otherwise, between the Company and any other party, including, without limitation, any supplier, distributor, co-venturer or joint venturer of the Company, for the purpose of soliciting such other party to discontinue or reduce its business with the Company.

 

With respect to the activities described in Paragraphs (1), (2), (3) and (4) above, the restrictions of this Section 15(b) shall continue during the Employment Period and until the twelve (12) month anniversary following the termination of this Agreement or of the Executive’s employment with the Company (including upon expiration of this Agreement), whichever occurs later, unless this Agreement or Executive’s employment was terminated by Executive for Good Reason or by Company without Cause.

 

16.           Section 409A.

 

The provisions of this Agreement are intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and any final regulations and guidance promulgated thereunder (“Section 409A”) and shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A.  The Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A.

 

To the extent that Executive will be reimbursed for costs and expenses or in-kind benefits, except as otherwise permitted by Section 409A, (a) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit, (b) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year; provided that the foregoing clause (b) shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect and (c) such payments shall be made on or before the last day of the taxable year following the taxable year in which you incurred the expense.

 

  

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A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination constitutes a “Separation from Service” within the meaning of Section 409A and, for purposes of any such provision of this Agreement references to a “termination,” “termination of employment” or like terms shall mean Separation from Service.

 

Each installment payable hereunder shall constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b), including Treasury Regulation Section 1.409A-2(b)(2)(iii).  Each payment that is made within the terms of the “short-term deferral” rule set forth in Treasury Regulation Section 1.409A-1(b)(4) is intended to meet the “short-term deferral” rule.  Each other payment is intended to be a payment upon an involuntary termination from service and payable pursuant to Treasury Regulation Section 1.409A-1(b)(9)(iii), et. seq., to the maximum extent permitted by that regulation, with any amount that is not exempt from Code Section 409A being subject to Code Section 409A.

 

Notwithstanding anything to the contrary in this Agreement, if Executive is a “specified employee” within the meaning of Section 409A at the time of Executive’s termination, then only that portion of the severance and benefits payable to Executive pursuant to this Agreement, if any, and any other severance payments or separation benefits which may be considered deferred compensation under Section 409A (together, the “Deferred Compensation Separation Benefits”), which (when considered together) do not exceed the Section 409A Limit (as defined herein) may be made within the first six (6) months following Executive’s termination of employment in accordance with the payment schedule applicable to each payment or benefit.  Any portion of the Deferred Compensation Separation Benefits in excess of the Section 409A Limit otherwise due to Executive on or within the six (6) month period following Executive’s termination will accrue during such six (6) month period and will become payable in one lump sum cash payment on the date six (6) months and one (1) day following the date of Executive’s termination of employment.  All subsequent Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if Executive dies following termination but prior to the six (6) month anniversary of Executive’s termination date, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of Executive’s death and all other Deferred Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit.

 

For purposes of this Agreement, “Section 409A Limit” will mean a sum equal (x) to the amounts payable prior to March 15 following the year in which Executive terminations plus (y) the lesser of two (2) times: (i) Executive’s annualized compensation based upon the annual rate of pay paid to Executive during the Company’s taxable year preceding the Company’s taxable year of Executive’s termination of employment as determined under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any IRS guidance issued with respect thereto; or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Executive’s employment is terminated.

 

17.           Miscellaneous.

 

(a)           The Executive acknowledges that the services to be rendered by him under the provisions of this Agreement are of a special, unique and extraordinary character and that it would be difficult or impossible to replace such services.  Furthermore, the parties acknowledge that monetary damages alone would not be an adequate remedy for any breach by the Executive of Section 14 or Section 15 of this Agreement. Accordingly, the Executive agrees that any breach or threatened breach by him of Section 14 or Section 15 of this Agreement shall entitle the Company, in addition to all other legal remedies available to it, to apply to any court of competent jurisdiction to seek to enjoin such breach or threatened breach. The parties understand and intend that each restriction agreed to by the Executive hereinabove shall be construed as separable and divisible from every other restriction, that the unenforceability of any restriction shall not limit the enforceability, in whole or in part, of any other restriction, and that one or more or all of such restrictions may be enforced in whole or in part as the circumstances warrant. In the event that any restriction in this Agreement is more restrictive than permitted by law in the jurisdiction in which the Company seeks enforcement thereof, such restriction shall be limited to the extent permitted by law. The remedy of injunctive relief herein set forth shall be in addition to, and not in lieu of, any other rights or remedies that the Company may have at law or in equity.

 

  

11

  

(b)           Neither the Executive nor the Company may assign or delegate any of their rights or duties under this Agreement without the express written consent of the other; provided, however, that the Company shall have the right to delegate its obligation of payment of all sums due to the Executive hereunder, provided that such delegation shall not relieve the Company of any of its obligations hereunder.

 

(c)           During the term of this Agreement, the Company (i) shall indemnify and hold harmless Executive and his heirs and representatives as, and to the extent, provided in the Company’s bylaws and (ii) shall cover Executive under the Company’s directors’ and officers’ liability insurance on the same basis as it covers other senior executive officers and directors of the Company.

 

(d)           This Agreement constitutes and embodies the full and complete understanding and agreement of the parties with respect to the Executive’s employment by the Company, supersedes all prior understandings and agreements, whether oral or written, between the Executive and the Company, and shall not be amended, modified or changed except by an instrument in writing executed by the party to be charged (it being understood that, pursuant to Section 7, Share Awards shall govern with respect to the subject matter thereof). The invalidity or partial invalidity of one or more provisions of this Agreement shall not invalidate any other provision of this Agreement. No waiver by either party of any provision or condition to be performed shall be deemed a waiver of similar or dissimilar provisions or conditions at the same time or any prior or subsequent time.

 

(e)           This Agreement shall inure to the benefit of, be binding upon and enforceable against, the parties hereto and their respective successors, heirs, beneficiaries and permitted assigns.

 

(f)           The headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement.

 

  

12

  

(g)           All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given when personally delivered, sent by registered or certified mail, return receipt requested, postage prepaid, or by reputable national overnight delivery service (e.g., Federal Express) for overnight delivery to the party at the address set forth in the preamble to this Agreement, or to such other address as either party may hereafter give the other party notice of in accordance with the provisions hereof.  Notices shall be deemed given on the sooner of the date actually received or the third business day after deposited in the mail or one business day after deposited with an overnight delivery service for overnight delivery.

 

(h)           This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without reference to principles of conflicts of laws and each of the parties hereto irrevocably consents to the jurisdiction and venue of the federal and state courts located in the County and State of New York.

 

(i)            This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one of the same instrument. The parties hereto have executed this Agreement as of the date set forth above.

 

(j)            The Executive represents and warrants to the Company, that he has the full  power and authority to enter into this Agreement and to perform his obligations hereunder and that the execution and delivery of this Agreement and the performance of his obligations hereunder will not conflict with any agreement to which Executive is a party.

 

(k)           The Company represents and warrants to Executive that it has the full  power and authority to enter into this Agreement and to perform its obligations hereunder and that the execution and delivery of this Agreement and the performance of its obligations hereunder will not conflict with any agreement to which the Company is a party.

 

[Signature page follows immediately]

  

13

  

IN WITNESS WHEREOF, the Executive and the Company have caused this Executive Employment Agreement to be executed as of the date first above written.

 

	  	
interclick, inc.

	  	  	  	  	 
	  	  	  	  	 
	  	
By:

	
/s/ Roger Clark

	  	  	
Name:  Roger Clark

	  	  	  	
Title:   Chief Financial Officer

	  	  	  	  	 
	  	  	  	  	 
	  	
/s/ Andrew Katz

	  	
ANDREW KATZ

 

 

14dhs1_ex101.htm - Generated by SEC Publisher for SEC Filing

 

                                      CONTRACT FOR SALE OF REAL ESTATE

 

This Contract, made this day ___ of January, 2009, 

 

BETWEEN:           E.S.K. Builders at Keansburg, L.L.C. 

                                      12 Mountain Lane 

                                      Holmdel, NJ 07733 

                                      (hereinafter designated as the "Seller") 

AND:

                                       Seaview Gardens at Keansburg, LLC 

                                      P.O. Box 627 

                                      Forked River, NJ 08731 

                                      (hereinafter designated as the "Buyer")

 

                                              W I T N E S S E T H: 

 

          1.       PROPERTY SOLD.  Seller agrees to sell and Buyer agrees to buy the

property described in this contract. The property to be sold consists of (a) the land and improvements on the land and (b) all the Seller's rights relating to the land, including all approvals necessary for the construction of 48 residential condominium units, approximately 6,000 square feet of commercial space, and approximately 4,000 square feet of restaurant space, along with associated common areas and amenities (the "Project"). The real property is more specifically known and designated as Lot 1 in Block 15 in Keansburg, New Jersey at the intersection of Beach Way and Raritan Avenue (“Property”).

 

          2.       PURCHASE PRICE.

 

The Purchase Price for the property referred to in Paragraph 1 above shall be $4,712,500.00 and shall be paid as follows: 

 

          Previously paid as set forth below in Paragraph 4   $   225,000.00

          1st Additional Deposit upon execution                     $     25,000.00

          2nd Additional Deposit on June 15, 2009                          $     25,000.00

          Seller financing                                                               $1,725,000.00

          Balance Due at time of closing in Attorney Trust 

          Account, wire transfer or certified check                          $2,712,500.00 

 

          3.0     CLOSING DATE. The closing of title shall take place on or before September 15, 2009 at the law office of Buyer’s attorney’s office, or at the law office of the attorney for Buyer’s Lender; provided, however, on or before September 15, 2009, Buyer may request one (1) three month extension of the 
Closing Date in which event closing of title shall take place on or before December 15, 2010.

 

 

 

          4.0     DEPOSIT MONIES. The $225,000.00 deposit referenced in Paragraph 2 above was previously paid by VCS Holdings LLC, an affiliated company of Buyer, to Seller under an earlier contract which the parties acknowledge is hereby terminated, the within Contract being in substitution therefor. Said deposit has been retained by Seller and is non-refundable. The two $25,000.00 deposits referenced in Paragraph 2 is to be held in the trust account of Cleary Alfieri & Jones (the "Escrow Agent") until closing of title or earlier Contract termination; provided, however, in the event the Buyer requests a three month extension pursuant to paragraph 3 above, then in that event an additional $25,000.00 deposit, which shall be released to Seller and be non-refundable, but applied to the purchase price, shall be due upon exercise of the three month extension. 

 

          5.       SELLER FINANCING. Seller shall provide financing to Buyer in the aggregate amount of $1,725,000.00 secured by a second purchase money mortgage under terms and conditions set forth below:

 

          a.       The amount of the note shall be $1,725,000.00, secured by a second mortgage, which matures twenty-four (24) months after closing; provided, however, that Buyer shall be entitled to one twelve (12) month extension upon request.

 

          b.       The rate of interest shall be 6% per annum beginning eight (8) months after closing.

 

          c.       Note and mortgage shall contain a standard 30-day default clause.  

 

          d.       The note and mortgage shall contain a five (5%) percent late charge provision if payment is not received within fifteen (15) days of the due date.

 

          e.       Purchase money note and mortgage are to be executed on Allstate form 2004 for note and 204 for mortgage.

 

          f.        Note and Mortgage shall be prepared by Sellers attorney at Buyer’s expense of $350.00 subject to Buyer's attorney's approval of the form thereof.

 

          g.       Buyer shall have the right to prepay, in whole or in part, the note at any time without penalty.

 

 

 

 

          h.       Interest only payments shall commence on the 11th month anniversary from closing and shall be paid quarterly on each three month anniversary thereafter.

          i.        A release payment of the lesser of $37,500.00 or the outstanding principal balance of the note shall be due at the sale of each unit and applied to the loan principal.

 

          j.        The seller financing shall only be subordinate to acquisition, site improvement and construction financing.

 

          k.       In addition to the payments set forth above, Buyer shall pay to Seller, on account of principal, two and one half percent (2 1/2%) of the amount of all advances made by Buyer's Lender for site improvements and construction financing.

 

          l.        The mortgage shall be personally guaranteed by Vincent Simonelli. 

 

          6.       FINANCING CONTINGENCY. The Buyer’s obligation to close is contingent upon it obtaining a loan in the amount of not less than $13,000,000.00 (which includes acquisition, site improvements and construction, which will be secured by a mortgage on the Property. In the event that Buyer has not obtained the financing or waived this contingency on or before ninety days following the Effective Date hereof, either party may terminate this Contract at which time the Additional Deposit shall be returned to Buyer or the parties may agree to extend this contingency for an additional period. In the event that the lender requires conditions (including by way of example further environmental investigations) then this financing contingency shall not be deemed satisfied until all of lender's conditions have been favorably satisfied. Upon satisfaction of the within financing contingency, the lst Additional Deposit shall be paid over to the Seller, to be retained by Seller subject to Seller satisfactorily performing its obligations under this Contract.

 

          7.0     AS IS.

 

          A.      Buyer acknowledges that Seller has represented that Seller has obtained approval for the Project as previously defined, including forty-eight (48) residential units, approximately 6,000 square feet of commercial space and approximately 4,000 square feet of restaurant space, along with associated common  area and amenities.

 

          B.      At closing, Buyer shall take the premises “AS IS” and in its present condition, status and state of repair. Seller shall not be liable or bound in any manner by any verbal statements or representations, express or implied, made 
by Seller, its agents or representatives, relating to the premises, or its operation, condition, character or quality, including, without limitation, the structural, mechanical and environmental condition of the premises, the state of title, the availability of utilities, the capacity for development of the premises and whether the premises is in compliance with laws. 

 

 

 

 

          C.      Buyer’s investigation. Buyer acknowledges that Buyer has entered into this agreement on the basis of its right to conduct a full inspection and investigation of the premises, its operation, condition, character and quality, including, without limitation, the structural, mechanical and environmental condition of the premises, the state of title, the availability of utilities, the capacity for development of the premises and whether the premises is in compliance with laws, and Buyer acknowledges that it shall be relying solely on its own investigations when proceeding with the purchase of the premises (the "Due Diligence Matters"). Buyer further acknowledges that Buyer is sophisticated and experienced in real estate transactions. In the event Buyer determines, prior to closing, that the there is any defect in any of the Due Diligence Matters that would interfere with the ability of the Buyer to develop the Project in accordance with the Seller's representations, or prevent the funding of financing pursuant to the mortgage commitment to be obtained by Buyer as contemplated above, then Buyer may terminate the Contract or give the Seller additional time to cure the defects prior to closing.

 

          8.0     TYPE OF DEED. A Deed is a written document used to transfer ownership of property. In this sale, the Seller agrees to provide and the Buyer agrees to accept a Deed known as Bargain and Sale with covenants against Grantor's acts. Seller shall also provide and execute at closing an Affidavit of Title and any other documentation reasonably required by Buyer's Title Company. Seller shall also execute and deliver at closing all necessary assignments to transfer to Buyer all of Seller's rights in the Project, including by way of example, plans, surveys, permits, approvals, and the like.

 

          9.0     REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER.  Seller hereby makes the following representations, warranties and covenants to Buyer, each of which shall be true and correct as of the date of closing:

 

          a)       There are not now outstanding with respect to the Premises any notices of any uncorrected violations of any laws, statutes, ordinances, rules or regulations and any such notices hereafter issued prior to closing will be satisfied by Seller. 

 

          b)       Seller has the full power, authority and legal right to enter into and 
perform this Contract, without requiring the consent or approval of any party not previously obtained. The execution, delivery and performance of this Agreement will not contravene any law, governmental rule, regulation or order binding on Seller, nor will the performance of the obligations hereunder violate or constitute an event of default under the terms or provisions of any agreement, document or other instrument to which Seller is party or by which the Property is bound.

 

 

 

 

          c)       To the best of Seller’s knowledge, the Property is not affected by or subject to any pending or threatened (I) condemnation proceedings or proceedings which would impair or result in the termination of access from the Property to abutting public highways, streets and roads; (ii) tax appeals; or (iii) any actions or proceedings before any Court or administrative agency which will materially adversely affect the Property or the ability of Seller to perform Seller’s obligations under this Contract.  

 

          d)       No one other than Buyer has a contract, option or right of first refusal to purchase the Property or any part thereof and Seller has granted no leases or licenses, nor created any tenancies, affecting the property. There are no parties in possession of any portion of the Property as trespassers or otherwise.

 

          e)       To the best of Seller’s knowledge, (I) there are no hazardous substances, as defined by any federal, state or municipal law, on the Property; or (ii) there are no grounds for the filing of a lien against the Property pursuant to the New Jersey Spill Compensation and Control Act. Seller has no knowledge of (I) any underground storage tanks located on or under the Property and subsequently removed or abandoned in place without obtaining approval of a closure plan from NJ DEP, or (ii) any sumps, clarifiers or on-site wells located on or under the Property. Seller further states, to the best of Seller's knowledge that from the date of the Phase I performed on behalf of Buyer or Buyer's affiliated companies, no events have occurred on or about the Property that would create an Area of Concern were a new Phase I to be completed by Buyer pursuant to the within Contract. 

 

          f)       Seller has received variances and Final Site Plan Approval allowing for the development of the Project as contemplated hereby, subject to satisfaction by Seller of the conditions set forth in the Resolution of Approval attached hereto as Exhibit A. Seller further represents that Seller has obtained all ancillary approvals required to enable Buyer to obtain a building permit upon submission of the construction plans to the municipality. Seller represents that it will use its best efforts to keep the Municipal Approval in full force and effect, and shall apply from time to time during this Contract for such extensions of the same as may be permitted by law or reasonably required, all at Seller's sole cost and expense. All approvals referred to herein shall be final and non-appealable, shall 
not have expired on or before closing of title, nor be scheduled to expire within six (6) months following closing of title. Attached hereto as Exhibit B is a schedule setting forth a list of all approvals obtained by Seller to date and the status of each.

 

 

 

 

          g)      All conditions set forth in any of the Planning Board Engineer's review letters, copies of which have been attached hereto as Exhibit C, have been satisfied in full by Seller, or will have been satisfied on or before Closing of Title, it being the intention of the parties hereto that upon closing of title, Buyer shall be able to obtain a building permit upon filing construction drawings, in order to allow commencement of construction of the Project without the need to obtain any additional approvals other than the approval of the actual construction drawings.

 

          h)       At the time Seller received approvals, no COAH fees were required to be paid by the developer of the Project pursuant to the approvals or the Engineer's Review letters issued pursuant to those approvals. Seller is not aware of any present requirement to pay COAH fees in connection with the development of the within project. In the event COAH fees are eventually required to be paid in connection with the development of the within project as a result of a change in the laws subsequent to the date hereof and applicable to this project, then in that event the Seller and Buyer agree to split the burden of such fees fifty-fifty.

 

          All of the foregoing representations and warranties of Seller are true, accurate and complete as of the date of execution of this Contract and, as a condition precedent to Buyer’s obligation to close hereunder, shall be true, accurate and complete as of the closing date. All of the foregoing representations and warranties shall survive the closing and delivery of the Deed for a period of one year following the closing.

 

          10.     TITLE PROVISIONS. The premises are to be sold and conveyed subject only to the following exceptions, which shall be deemed permitted exceptions provided they do not interfere with the proposed use and development of the proposed use of the and development of the Project:

 

          a)       Municipal Zoning ordinances, law, and ordinances of the State of New

 Jersey, County of Monmouth, Borough of Keansburg, the rules and regulations of the respective agencies relating to buildings and construction used and all amendments and additions thereto now or hereafter in force and effect which relate to the premises, provided that the same are not violated;

 

 

 

 

          b)       The rights, public and private, and of public utility corporations, if any in the streets and roads, if any adjoining the premises; and  

 

          c)       Such facts as an accurate survey would disclose; provided, however, that such survey shall not disclose any defects or impediments to title.

 

          d)       Subsurface conditions affecting the premises.

 

          e)       Title to the lands and premises to be conveyed hereunder shall be good and marketable and such as will be insurable with standard exceptions by a reputable title insurance company authorized to do business in the State of New Jersey.

          f)       Buyer agrees to complete a title examination within twenty (20) days from the date of this Contract. In the event that the examination of title to be made by and at the cost and expense of the Buyer discloses any exception to title the Buyer shall serve a written notice as to the same upon the Seller, any such notice or notices to be mailed to the Seller within ten (10) days after the Buyer's counsel receives written notice in the form of a written report of title on any one or more occasions from the title insurance company designated by the Buyer, or any such exception or exceptions, and the Seller shall have forty-five (45) days thereafter to cause the removal of such exception, and Seller shall at its sole cost and expense diligently attempt to do so, provided, however, that in the event the cost exceeds $25,000.00, and the Buyer does not waive the exception or exceptions.

 

          Seller shall have the option to terminate this Contract without further liability. Notwithstanding the aforesaid, any voluntary liens or encumbrances, together with any and all judgments shall be paid by Seller at closing. Any exception not so reported shall be deemed waived. In the event that the Seller is unable to cause removal of any exception as to which they have such notice within the time period, the Buyer shall have the option to:

 

          i)        Proceed to closing taking such title as Seller can deliver but without any abatement in the purchase price, unless such exception is for a sum certain or able to be ascertained; or

 

          ii)       Terminate this agreement, in which case the Deposit shall be returned to the Buyer, and the parties shall have no further obligations as to each other pursuant to the terms of this Agreement and Seller shall reimburse Buyer for the reasonable cost of title searches and survey, not to exceed $5,000.00.

 

          11.     ADJUSTMENTS AT CLOSING The Buyer and Seller agree to adjust the following expenses as of the closing date: Real estate taxes and other incidental 
charges. The Buyer or the Seller may require that any person with a claim or right affecting the property be paid off from the proceeds of this Sale. Seller shall be responsible for rollback taxes, if any, and the Realty Transfer Fee (other than the Mansion Tax, if applicable, which shall be the responsibility of the Buyer.

 

 

 

            12.       CONDEMNATION.  In the event that, prior to the day of any closing herein, condemnation or eminent domain proceedings shall be commenced against the Premises, or threatened, Buyer shall have the option to: 

          a)       Terminate this Agreement, in which event this Agreement shall become null and void and neither party shall have any further right or remedy against the other; or

          b)       Proceed to the Closing and accept the Premises subject to such proceedings, in which event any award that might be paid to Seller shall be paid over or assigned by Seller to Buyer.

          13.     ASSESSMENTS. If, at the time before signing of the Contract, the Premises or any portion thereof, shall be or shall have been affected by an assessment or assessments for any public improvements installed or to be installed by any governmental agency which are or may become payable in annual installments of which the first installment is then due or has been paid, then, for the purpose of this Agreement, all of the unpaid installments of such assessment, including those which are to become due and payable after the delivery of the Deed, shall be deemed to be due arid payable and to be liens upon the premises and shall be paid and discharged by the Seller upon the delivery of the Deed. Unconfirmed improvements and assessments, if any, shall be paid and allowed by Seller on account of the purchase price, if the improvements or work has been commenced on or before the date of this Agreement. Seller represents that to the best of its knowledge there are no present assessments, confirmed or unconfirmed. 

     14.  DEFAULT BY BUYER OR SELLER.

          a)       In the event of a breach of this Agreement by Buyer, Seller shall retain the Deposit monies as liquidated damages.

          b.       In the event of a breach by Seller, the Buyer shall have available to it all remedies at law, including specific performance.

          This Agreement contains the Buyer's promises to do or not to do various things. Failure to keep these promises within designated time periods, if any are specified, is called a "default" or "breach of contract."

 

 

 

          The Buyer and the Seller specifically agree that if the Buyer commits or permits a default, the damages which the Seller will suffer cannot be calculated in advance with any degree of mathematical certainty. However, in good faith, the Buyer and the Seller have agreed to estimate the amount of such damages which will reasonably compensate the Seller for a default. This is called "liquidated damages." If the Buyer commits or permits a default, the Seller may choose to terminate this Agreement. If the Seller terminates this Agreement, the Buyer will no longer have any rights under this Agreement or with respect to the property. Upon termination, the Seller will be entitled to liquidated damages in an amount equal to the Additional Deposit monies.

          The amount of liquidated damages may be greater or less than the actual amount of damages that the Seller may suffer. However, the actual amount of Seller's damages may not be determinable for a significant time after Buyer's default. Buyer understands that the provision for liquidated damages is of vital importance to the Seller, and that the Seller would not enter into this Agreement without such a provision. Accordingly, the Buyer agrees that the Seller may enforce the liquidated damages provision.

          15.     COMPLETE AGREEMENT. This Contract is the entire and only agreement between the Buyer and the Seller. This contract replaces and cancels any previous agreements between the Buyer and the Seller. This contract can only be changed by an agreement in writing signed by both Buyer and Seller. The Seller  states that the Seller has not made any other Contracts to sell the property to anyone else.

          16.     PARTIES LIABLE. This Contract is binding upon all parties who sign it and all who succeed to their rights and responsibilities.

          17.     BROKER'S COMMISSION. The parties hereby represent to each other that there are no written agreements or correspondence with any real estate agents or brokers relating to this Agreement and therefore the parties hold each other harmless from any claims for commissions. Notwithstanding the aforesaid, the Buyer was introduced to the property by Michael Smyth and Seller shall be responsible for the payment of a $25,000.00 commission to Smyth in recognition of such service.

          18.     RECORDATION.  It is understood and agreed that a memorandum of this Contract may be recorded in the Monmouth County Clerk's Office at either party's option.

          19.     NOTICES. No notice, request, consent, approval, waiver or other communication under this Contract shall be effective unless, but any such 
communication shall be deemed to have been given if, the same is in writing and is mailed by registered mail or certified mail, postage prepaid, confirmed fax transmission, or email, addressed to the parties at the address noted below, or sent by fax at the fax numbers listed below or email at the addresses below:

 

 

 

From Buyer to Seller:      Salvatore Alfieri, Esq.

                                      Cleary Alfieri & Jones 

                                      5 Ravine Drive 

                                      Matawan, NJ 07747 

                                      732-583-7474 

                                      732-290-0753 Fax 

                                      email address: rmago@clearyalfieri.com

 

With a copy to:                E.S.K. Builders at Keansburg, L.L.C. 

                                      12 Mountain Lane

                                      Holmdel, NJ 07733 

                                      732-888-4860 Fax

 

Notices from Seller 

to Buyer:                         David Shaheen, Esq.

                                      Jahos, Broege & Shaheen 

                                      116 Oceanport Ave.

                                      Little Silver, NJ 07739 

                                      732-747-4326 

                                      732-224-5317 Fax

                                      email address: dshaheenajbslaw.us

 

With a copy to:                VCS Holdings, LLC 

                                      P.O. Box 627 

                                      Forked River, NJ 08731 

                                      609-693-3802 Fax

                                      email address: vince@foxmoorhomes.com

 

          20.     APPLICABLE LAW. This Agreement and the performance hereof shall be governed, interpreted, construed and regulated by the Laws of the State of New Jersey.

 

          21.     SEVERABILITY. If any term, covenant, condition or provision of this Agreement, or the application thereof to any person or circumstances, shall, at any time or to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 

 

 

 

 

          22.     INTERPRETATION.  Wherever herein the singular number is used, the same shall include the plural, and the masculine gender shall include the feminine and neuter genders, and vice versa, as the context shall require. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument.

 

          23.     SECTION HEADINGS. The Section Headings in this Agreement are inserted only as a matter of convenience in reference and are not to be given any effect whatsoever in construing any provision of this Agreement. 

 

          24.     ASSIGNMENT. The within Agreement may not be assigned by Buyer without the prior written consent of Seller unless Buyer agrees to continue to  guarantee all obligations of the purchaser of the property pursuant to the terms of this Contract.

          25.     ENTIRE AGREEMENT. This Agreement sets forth all of the promises, agreements, conditions, and understandings between the parties hereto relative to the subject matter hereof, and there are no promises, agreements, conditions or understandings, either written or oral, expressed or implied, between them other than as herein set forth. Except as herein otherwise specifically provided, no subsequent alterations, amendments, changes or additions to this Agreement shall be binding upon either party unless in writing and signed by each party. 

 

          26.     EXCHANGE UNDER SECTION 1031.

 

     Like Kind Exchange Election. Seller may elect, in its sole and absolute discretion, to exchange (rather than sell) the Property for other property of a like kind. The parties acknowledge that it is Seller’s intent that the exchange qualify as a tax-deferred exchange under Section 1031 of the Internal Revenue Code of 1986, as amended (the “Code”).  Therefore, to the extent possible, the provisions of this Section shall be interpreted consistently with this intent. The foregoing notwithstanding, if a tax-deferred exchange cannot be effected for any reason other than the breach of Buyer, Seller shall be obligated to close the transaction as a purchase and sale pursuant to the terms of this Agreement.

          Election Notice. To exercise its right under this Section to exchange, rather than sell, the Property, Seller shall provide Buyer with a written statement stating its intent to enter into an exchange at least three (3) days prior to the closing date.

          Assignment of Agreement.  If Seller exercises its right to exchange, rather than sell, the Property, Seller may, on or before the closing date, assign its rights 
under this Agreement to a “qualified intermediary,” as defined in Treasury Regulation 1 .103(k)-1(g) (the “Accommodator”) or transfer the Property to the Accommodator subject to all of Buyer’s rights under this Agreement, including without limitation Buyer’s rights to acquire the Property at the closing. In either case, all payments which Buyer is obligated to make to Seller under this Agreement shall be made to an escrow agent or the Accommodator, as appropriate, and not to Seller. Buyer agrees to cooperate with the Seller and the Accommodator in arranging the exchange. Buyer shall execute any and all documents as a tax-deferred exchange under Section 1031 of the Code and the Treasury Regulations effective thereunder at the time of closing, including but not limited to any appropriate amendments to this Agreement and any appropriate escrow instructions provided however, that no such document shall adversely affect Buyer in any respect or change any of the economic terms and conditions of the transaction with respect to Buyer, nor require Buyer to obtain title to another piece of property. For example, if Seller assigns its rights under this Agreement to the Accommodator and/or transfers the Property to the Accommodator, Seller shall simultaneously execute an appropriate document affirming to Buyer that the warranties and representations of Seller set forth in this Agreement and the deed required pursuant to this Agreement shall remain the representations and warranties of Seller. Buyer shall not be obligated to incur any costs, expenses, losses, liabilities or damages greater than those Buyer would have incurred had Seller not elected to effect an exchange.  Seller shall reimburse Buyer at closing for all out-of-pocket expenses incurred by Buyer in excess of those that would have been incurred if Seller had not elected to effect an exchange.

 

 

 

          Buyer‘s Limited Obligation.  In no event shall Buyer be obligated to acquire title to any other property, whether by Deed or Contract right, for the benefit of Seller or its assignee, nor shall Buyer be obligated to accommodate any exchange in any similar manner.  Buyer’s sole obligation in connection with any exchange shall be to acquire the Property from Seller or its assignee in exchange for the purchase price. Seller agrees to defend, indemnify and hold Buyer free and harmless from all costs, expenses, losses, damages or liability, including but not limited to reasonable attorney’s fees and costs of suit, arising out of or in connection with any exchange attempted pursuant to this Section and Buyer’s cooperation hereunder. Seller acknowledges that Seller is not relying on any representations of Buyer or Buyer’s counsel with respect to the federal, state or local income tax treatment of Seller in connection with this transaction. The obligations of the parties under this Section survive closing and the delivery of the Deed. Buyer shall not be required to either accelerate or delay closing in an effort to accommodate any proposed 1031 Exchange.

          27.     AGREEMENT NOT AN OFFER. This Agreement is transmitted for 
examination only, and does not constitute an offer to sell the Property. This Agreement shall become effective only upon execution by and delivery to both parties. A draft of this Agreement that is signed and delivered by one party shall become null and void if not accepted by the other party within five (5) business days after such party is in receipt of the signed draft.

 

 

 

          28.     EFFECTIVE DATE. The Effective Date of this Agreement is that date on which a fully executed copy has been delivered to Buyer and Seller, and the Additional Deposit has been paid by Buyer to the Escrow Agent.

     29.  MISCELLANEOUS.

                   a)       By signing this agreement, Steven Kontos acknowledges that Steven Kontos owns a fifty percent interest in the Buyer. Upon closing of title and delivery of deed, Steven Kontos agrees to assign to Vincent C. Simonelli, or his assigns, all of Steven Kontos' interest in the Buyer for a consideration of $1.00 so that upon closing of title, Vincent C. Simonelli, and his assigns shall own 100% of the outstanding membership interests in Buyer.

                   b)       Buyer acknowledges that the Seller is not responsible for past due Architectural fees for this project charged by Tekton Enterprises Inc. At closing, Seller shall assign to Buyer all of its right title and interest in all plans for the Project.

                   c)       Any unpaid water and sewer connection fees shall be the responsibility of Buyer, provided that Seller shall have paid and satisfied all application and other fees (other than the aforesaid connection fees) applicable to water and sewer.

                   d)       Buyer shall pay to Seller at closing legal fees in the amount of $5,000.00 for legal services rendered by Seller's attorney in obtaining extensions of approvals.

                   e)       Seller has posted performance bonds for sewer extensions, which bonds shall be assigned to Buyer at Closing. Buyer shall pay at closing for the cost of any such bond extensions obtained subsequent to the Effective Date of this Contract.

          IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals or caused these presents to be executed the day and year first above written.

 

 

 

Witness:                                            E.S.K. Builders at Keansburg, 

                                                          L.L.C. Seller

 

/s/ P. Glyn                                             /s/  Steven Kontos                    

                                                          By: Steven Kontos 

                                                          Title: Managing Member

 

 

                                                          Seaview Gardens at Keansburg, 

                                                          LLC, Buyer

 

/s/ P. Glyn                                              /s/ Vincent Simonelli            

                                                          By: Vincent C. Simonelli  

                                                          Title: Managing Member

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