Document:

bmnm10q20120331x1014.htm

EXHIBIT 10.14

 

SETTLEMENT AGREEMENT AND MUTUAL RELEASE

 

This Settlement Agreement and Mutual Release (“Agreement”) is made and entered into as of January __, 2012 by and among (a) First Bank, as successor to Coast Bank of Florida (“Coast” or “Plaintiff”), and (b) Opteum Financial Services, LLC, now known as MortCo TRS LLC (“Opteum” or “Defendant”).  Coast and Opteum shall collectively be referred to herein as the “Parties.”

 

WHEREAS, the Parties intend this Agreement to resolve, discharge and settle the Mutually Released Claims, as defined below, fully, finally and forever according to the terms and conditions set forth below:

 

WHEREAS, in or about June, 2007, Coast filed a civil action in the Circuit Court of the Twelfth Judicial Circuit in and for Manatee County, Florida against Opteum, asserting claims for breach of contract and specific performance.  The action is captioned Coast Bank of Florida v. Opteum Financial Services, LLC, No. 2007-CA-3865 (the “Litigation”);

 

WHEREAS, Opteum denies any and all claims asserted against it that are alleged in the Litigation;

 

WHEREAS, Coast and Opteum have each determined that it is in their own respective best interests to compromise and settle these matters on the terms set forth below; and

 

NOW THEREFORE, for and in consideration of the mutual covenants, promises and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties hereby agree as follows:

Section 1.                      Denial of Liability; No Admissions; Use of Settlement.

1.1           The Parties enter into this Agreement as a compromise of disputed claims (the “Settlement”) and to avoid the burden, expense, and risk of the Litigation.  In entering into this Agreement, Opteum does not admit any, and specifically denies all, allegations in the Litigation.

           1.2           Nothing in this Agreement, nor in any negotiations, actions, statements or court proceedings relating to this Agreement or the Settlement in any way, shall be construed as, offered as, received as, used as, or deemed to be evidence of any kind in the Litigation or in any other proceeding, except to the extent that it is used to prove the contents of this Agreement.

 

           Section 2.                      Approval of Settlement, Dismissal, and Stay

 

.

 

           2.1           Within five (5) days of receipt of payment by Coast as specified in Section 3 below, Coast shall file a Stipulation dismissing and discontinuing all claims against Opteum in the Litigation with prejudice pursuant to Fla. R. Civ.  P. 1.420(a)(1) in the form attached hereto as Exhibit A.

 

  

  

  

           Section 3.                      Payment

 

.  In consideration of the releases, dismissal with prejudice, and other covenants, promises, and agreements set forth in this Agreement, and upon completion of a W-9 form, Opteum will remit payment in the amount of eight hundred thousand ($800,000) dollars payable to First Bank, as successor to Coast, pursuant to the following wire instructions: First Bank, 11901 Olive Blvd., Creve Coeur, MO 63141, ABA #081009428, Account Number 11085, Attention:  Maurie Houlihan, 941-345-1421 within twenty four (24) hours from the Parties’ execution of the Agreement.  Time is of the essence with respect to execution of the Agreement and Coast’s receipt of the above described payment from Opteum.  Specifically, in the event that Coast has not received the above described payment within twenty four (24) hours from execution of the Agreement, or, the Agreement is not executed by the close of business on January 30, 2012, the Agreement and all provisions between the Parties for the settlement of the Litigation shall be immediately null and void, and the Parties shall advise the Court in the Litigation of their request that the trial of the Litigation be re-scheduled on an expedited basis.

           Section 4.                      Fees and Costs

 

.  Each of the Parties shall bear its own attorneys’ fees, costs and expenses incurred in the prosecution, defense, or settlement of the Litigation and with respect to this Agreement, including the Stipulation referenced in Section 2 above.

 

Section 5.                      Release.

 

           5.1           Mutually Released Claims.  Upon the timely performance of the Payment obligation set forth in Section 3 above, Coast and Opteum will each have released and fully, absolutely and forever discharged the other, and the other’s heirs, executors, parent companies, subsidiary companies, affiliated companies, partners, divisions, officers, directors, members, managers, attorneys, employees, owners, successors and assigns, administrators, shareholders, agents, representatives, and others who might be responsible for the other’s conduct, individually and collectively, to the fullest extent possible by law, from any and all claims, demands, damages, attorneys’ fees, debts, liabilities, accounts, reckonings, obligations, bonds, guaranties, warranties, costs, expenses, losses, liens, actions and causes of action of each and every kind, nature and description, whether now known or unknown, suspected or unsuspected, which the releasing Party might have, own or hold, or at any time heretofore ever had, owned or held, or could hereafter have, own or hold, based upon, related to or by reason of any statute, contract (express, implied in fact or implied in law), order, judgment, liability, matter, cause, fact, thing, act, or omission whatever, occurring or existing now or at any time prior to the effective date hereof, or which was or could have been asserted in the Litigation, or which is in any way relating to or arising out the Litigation (the “Mutually Released Claims”).

 

           Section 6.                      General Provisions.

 

           6.1.           Entire Agreement.  This Agreement, including Exhibit A, constitutes the full, complete and entire understanding, agreement and arrangement of and between the Parties with respect to the settlement of the Litigation.  This Agreement supersedes any and all prior oral or written understandings, agreements, and arrangements between the Parties with respect to the settlement of the Litigation.  Except those set forth expressly in this Agreement, there are no other agreements, covenants, promises, representations or arrangements between the Parties with respect to the settlement of the Litigation and the Mutually Released Claims.

 

  

  

  

           6.2.           Notices.  All letters, notices, requests, demands, and other communications required or permitted to be given to the Parties hereto pursuant to this Agreement shall be in writing and shall be delivered personally or mailed, postage prepaid, by first class mail, facsimile, and electronic mail to the Parties’ Counsel of record as follows:

 

	
For the Plaintiff:

	
For the Defendant:

	
Robert L. Olsen

rolsen@fowlerwhite.com

Fowler White Boggs P.A.

501 E. Kennedy Blvd, Suite 1700

Tampa, Florida 33602

Direct: (813) 222-1138

Fax: (813) 384-8313

	
Dianna Wyrick

dwyrick@reedsmith.com

Reed Smith LLP, Suite 1200

225 Fifth Avenue

Pittsburgh, PA 15222

Direct: (412) 288-7238

Fax: (412) 288-3063

           6.3.           Modification in Writing.  This Agreement may be altered, amended, modified or waived, in whole or in part, only in a writing signed by both Parties.  This Agreement may not be amended, altered, modified or waived, in whole or in part, orally.

 

           6.4.           Originals/Execution in Counterpart/ Facsimiles.  This Agreement may be signed in any number of counterparts, each of which shall be considered an original.  The electronic facsimile transmission of any signed original counterpart of this Agreement shall be deemed to be the delivery of an original counterpart.

 

           6.5.           No Reliance.  Each Party to this Agreement warrants that it is acting upon its independent judgment and upon the advice of its own counsel and not in reliance upon any warranty or representation, express or implied, of any nature or kind by any other Party, other than the warranties and representations expressly made in this Agreement.

 

           6.6.           Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Florida without regard to conflict of laws provisions.

 

           6.7.           Binding on Successors.  This Agreement shall be binding and shall inure to the benefit of the Parties and their respective successors and assigns.

 

           6.8.           Survivability and Severability.  If any provision of this Agreement shall be found by a court to be invalid or unenforceable, in whole or in part, then such provision shall be construed and/or modified as necessary to render it valid and enforceable, or shall be deemed excised from this Agreement, as the case may require, and this Agreement shall be construed and enforced to the maximum extent permitted by law, as if such provision had been originally incorporated herein as so modified, or as if such provision had not been originally incorporated herein, as the case may be.

 

           6.9.           Taxes.  Coast shall be responsible for paying any and all federal, state and local income taxes due on the payment made by Opteum pursuant to this Agreement.  Opteum is providing no tax advice to Coast.

 

 

 

 

  

  

  

 

This Agreement is executed as of this __ day of January, 2012, by the undersigned representatives for each Party:

 

	
FOR PLAINTIFF:

By: /s/ M. F. Houlihan, Jr.                                                                

                Maurice F. Houlihan, Jr.

Title:       Manager, Special Assets

                First Bank

Address:   1301 Sixth Avenue West

Bradenton, Florida 34205

941-744-1165 (Fax)

	
FOR DEFENDANT:

By: /s/ G. Hunter Hass                                                                

                  G. Hunter Haas IV

Title:     Member, Board of Managers

              MortCo TRS LLC

Address:    3305 Flamingo Drive

                  Verona Beach, Florida  32963

                  772-231-8896 (Fax)

- -

  

  

  

Exhibit A

 

IN THE CIRCUIT COURT OF THE TWELFTH JUDICIAL CIRCUIT

 

IN AND FOR MANATEE COUNTY, FLORIDA

 

COAST BANK OF FLORIDA,

                                                                           Case No.:  2007-CA-3865

           Plaintiff,                                                                Division D

vs.

OPTEUM FINANCIAL SERVICES, LLC,

           Defendant.

                                                                      /

Stipulation for Dismissal with Prejudice

           The parties, by their counsel, hereby stipulate as follows:

1. The parties stipulate that Plaintiff’s claims against Opteum Financial Services, LLC have been resolved and accordingly, Plaintiff stipulates and agrees that all claims against Defendant be and hereby are dismissed with prejudice.

2. The Court has jurisdiction with respect to enforcement of the terms of the Parties’ settlement agreement.

	
For the Plaintiff:

	
For the Defendant:

	
Robert L. Olsen

rolsen@fowlerwhite.com

Fowler White Boggs P.A.

501 E. Kennedy Blvd, Suite 1700

Tampa, Florida 33602

Direct: (813) 222-1138

Fax: (813) 384-8313

	
Dianna Wyrick (admitted pro hac vice)

dwyrick@reedsmith.com

Reed Smith LLP

Suite 1200

225 Fifth Avenue

Pittsburgh, PA 15222

Direct: (412) 288-7238

Fax: (412) 288-3063elit_ex1019.htm

Exhibit 10.19

Aspen Group, Inc.

224 W 30th Street

Suite #604

New York, NY 10001

April 4, 2012

 

 

	Mr. Patrick Spada 	Mr. Kenneth Matheson
	Higher Education Management Group, Inc. 	232 Steves Lane
	144 Vista Drive 	Franklin Lakes, NJ 07417
	Cedar Knolls, NJ 07927	 

                                                                                                                                                                                                                                      

Re:           Aspen Group Inc.

Dear Patrick and Ken:

This letter agreement (this “Agreement”) documents the transactions agreed upon by and among Aspen Group, Inc. (“Aspen”), Kenneth Mathieson (“Mathieson”), Higher Education Management Group, Inc. (“HEMG”) and Patrick Spada (“Spada”).  In consideration for $10.00 and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree to the following:

1.           By April 10, 2012, Mathieson (and his assigns) shall purchase and HEMG shall sell to Mathieson (and his assignees) 400,000 shares of common stock of Aspen at a purchase price of $0.50 per share (for a total of $200,000). The purchase price shall be paid to HEMG upon the purchaser’s receipt of: (i) the original stock certificates representing the Series C Preferred Stock (“Series C”) which converted to common stock, (ii) an executed stock power with medallion guarantee transferring the common stock to the purchasers, and (iii) executed Stock Purchase Agreements with each purchase in the form annexed hereto (the “SPAs”). HEMG and Spada hereby certify to Aspen that they have the ability to and shall convey good title to the common stock free and clear of all liens.  Aspen shall reissue any shares of common stock representing excess shares from the stock certificates delivered by HEMG and deliver them to HEMG, except for the Additional Purchased Shares, as defined.  HEMG and Spada acknowledge that Aspen retained Action Stock Transfer Corporation as its stock transfer agent.

2.           Aspen shall guarantee that it will purchase at least 600,000 Additional Purchase Shares at $0.50 per share for an additional $300,000 (Three Hundred Thousand Dollars) within ninety (90) days from the date of this Agreement.  In addition, Aspen shall use its best efforts to purchase from HEMG and resell to investors another 1,400,000 shares of Aspen common stock (the 600,000 shares and 1,400,000 shares together, the “Additional Purchased Shares”) at a purchase price of $0.50 per share (for an additional $700,000).  The right to purchase the balance of the 1,400,000 shares shall expire at 6:00 pm New York time 180 days from the date of this Agreement. The obligations of Aspen hereunder are subject to each of the following clauses being fully complied with by Spada and HEMG:(i) the original stock certificates representing the Additional Purchased Shares, (ii) executed stock powers with medallion guarantees transferring the Additional Purchased Shares to Aspen or the transferees, and (iii) executed SPAs for each purchaser of the Additional Purchased  Shares, all being delivered to Aspen.  HEMG and Spada hereby certify to Aspen that they have the ability to and shall convey good title to the Additional Purchased Shares free and clear of all liens.

 

  

  

  

 

Mr. Patrick Spada

Mr. Kenneth Mathieson

April 4, 2012

Page 2

 

3.           If HEMG and Spada fulfill their obligations specified in Paragraphs 1 and 2 above, Aspen hereby agrees to consent to additional private transfers by HEMG and/or Spada, of up to a total of 500,000 shares of Aspen’s common stock, on or before March 13, 2013 as long as the transferees agree to be bound by the lock-up agreement HEMG entered into on September 16, 2011.

4.           If Aspen and Mathieson fulfill their obligations specified in Paragraphs 1, 2 and 3 above, HEMG and Spada hereby agree as follows:

	
  

	
(a)

	
Neither HEMG nor Spada, nor any of their officers, directors or affiliates, will directly or indirectly, initiate any communications including any negative references or misrepresentations, whether oral, written or electronic regarding Aspen or the University to any individual, entity,  third party, any government agency including the United States Department of Education, any State agency regulating distance education and to any entity which accredits distance education including the Distance Education and Training Council concerning Aspen or its affiliates including Aspen University Inc. (the “University”), or any of their officers, directors or employees, except: (i) to the extent necessary to report income to appropriate taxing authorities; (ii) in response to an order of a court of competent jurisdiction or subpoena issued under the authority thereof; or (iii) in response to any inquiry or subpoena issued by a state or federal governmental agency or any accrediting entity; provided, however, that notice of receipt of such order, subpoena or inquiry shall promptly be delivered to Aspen, so that Aspen will have the opportunity to assert what rights it has to non-disclosure prior to any response to the order, subpoena or inquiry.

	
  

	
(b)

	
Neither HEMG nor Spada shall, directly or indirectly, commence any lawsuit, participate, cooperate or assist any person(s) or entity with respect to any claim, lawsuit, proceeding or action that they or any such person or entity may have against Aspen, except if an action, claim or suit is brought by the University, its officers and directors, or its affiliates against HEMG or Spada in which case HEMG and Spada may assert any counterclaim or cross-claim against the University.  Nothing shall prevent HEMG or Spada from testifying as a witness in any lawsuit or providing discovery to parties in any lawsuit.

	
  

	
(c)

	
Neither Aspen or the University,  nor any of their officers, directors or affiliates, will, directly or indirectly, initiate any communications including any negative references or misrepresentations, whether oral, written or electronic regarding HEMG, Spada and/or any other educational entity or affiliates of  HEMG or Spada to any individual, entity, third party, to any government agency including the United States Department of Education,  any State agency regulating distance education and to any entity which accredits distance education including the Distance Education and Training Council concerning Spada or HEMG or its affiliates, or any of their officers, directors or employees, except as may be required by law, including: (i) to the extent necessary to report income to appropriate taxing authorities; (ii) in response to an order of a court of competent jurisdiction or subpoena issued under the authority thereof; or (iii) in response to any inquiry or subpoena issued by a state or federal governmental agency or any accrediting entity; provided, however, that notice of receipt of such order, subpoena or inquiry shall promptly be delivered to Spada and HEMG, so that they will have the opportunity to assert what rights it has to non-disclosure prior to any response to the order, subpoena or inquiry as of the date of the signing of this agreement. In furtherance of this, Aspen may in the future communicate  anything it has disclosed in reports it has filed with the Securities and Exchange Commission.

 

5.           The University is claiming that in 2010 HEMG and/or the University sold 131,500 shares of the University’s common stock (giving effect to the agreed upon adjustments) at a time when the University did not have authorized capital so that the shares should have been but were not deducted from HEMG’s common stock.  Additionally, Ted Gencarelli did not get the 11,000 share stock dividend since his ownership of 10,000 shares did not show on the shareholder list of the University and HEMG did not cancel 10,000 shares due to a clerical error. HEMG agrees to not sell, pledge or otherwise transfer 142,500 shares of common stock pending resolution of this dispute.

6.           HEMG owes the University $772,793.  In consideration of HEMG and Spada entering into this letter agreement, Aspen shall cause the University to extend the due daate to September 30, 2014 and waive any default which has previously arisen.  The 654,850 shares of Aspen common stock pledged by HEMG continue to be pledged to secure performance of the obligation to pay $772,793.

This Agreement is effective as of April 4, 2012.  If either party breaches the terms of this Agreement, that causes harm to the other party, the offended party has the right to terminate this Agreement.

If the foregoing is acceptable to you, please sign in the place indicated below and return an executed copy to us.

SIGNATURE PAGE TO FOLLOW

 

 

  

  

  

Mr. Patrick Spada

Mr. Kenneth Mathieson

April 4, 2012

Page 3

 

	 	Sincerely,
	 	 
	 	/s/ Michael Mathews
	 	 
	 	Michael Mathews,
	 	Chief Executive Officer

 

	AGREED AND ACCEPTED:	 
	 	 
	/s/ Patrick Spada 	 
	

PATRICK SPADA

	 
	 	 
	 	 

	HIGHER EDUCATION MANAGEMENT GROUP, INC.	 
	 	 
	
By: 

	/s/ Patrick Spada	 
	 	Patrick Spada, President	 
	 	 	 
	 	 	 

	/s/ Kenneth Mathieson 	 
	

KENNETH MATHIESON

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