Document:

ex4-17.htm

 

Exhibit 4.17

 

SECOND AMENDMENT TO THE PURCHASE AGREEMENT dated November 12th, 2009

	  	  
	
AMONG:

	
COPERNIC INC., a corporation duly incorporated under the laws of Ontario, having its head office at 66 Wellington Street West, Suite 4200, Toronto, Ontario, M5K 1N6, herein acting and represented by Marc Ferland, its President and Chief Executive Officer, duly authorized for the purposes hereof as he so declares;

	  	  
	  	
(the “Seller”)

	  	  
	
AND:

	
EMPRESARIO INC., a corporation duly incorporated, under the laws of the State of Illinois, having its head office at 216 S. Jefferson, Suite 304, Chicago, Illinois, USA, 60661, herein acting and represented by Omar Solis, its President, duly authorized for the purposes hereof as he so declares;

	  	  
	  	
(the “Purchaser”)

	  	  
	
AND:

	
OMAR SOLIS, residing at 216 S. Jefferson, Suite 304, Chicago, Illinois, USA, 60661;

	  	  
	  	
(the “Guarantor”)

	  	  
	  	
(the Seller, the Guarantor and the Purchaser are referred individually as to as “Party” and collectively as “Parties”.)

 

WHEREAS the Seller and the Purchaser entered into an asset purchase agreement (the “Purchase Agreement”) dated May 14, 2009, pursuant to which the Purchaser agreed to purchase and the Seller agreed to sell the Purchased Assets, subject to the terms and conditions set forth in the Purchase Agreement;

 

WHEREAS the Parties amended the Purchase Agreement by way of amendment on June 30, 2009, (the “First Amendment”).

 

WHEREAS the Parties wish to further amend the Purchase Agreement in accordance with the terms herein provided and in conformity with Section 1.7 of the Purchase Agreement which states that the Purchase Agreement may be amended, modified or supplemented only by a written agreement signed by all Parties;

 

NOW THEREFORE, in consideration of the premises and mutual agreements herein contained, and for other good and valuable consideration the receipt and sufficiency of which are acknowledged by each Party, the Parties hereto agree as follows:

 

ARTICLE 1

INTERPRETATION

 

The capitalized words and expressions used in this Agreement shall have the meaning ascribed thereto in the Purchase Agreement unless otherwise provided herein. All deletions, annulments, replacements, additions and other amendments to or from the Purchase Agreement contemplated hereby shall be effective as of and from the date hereof.

  

  

  

 

- 2 -

 

ARTICLE 2

AMENDMENT

 

2.1          Purchase Price and Terms of Payment

 

2.1.1      Section 4.1 (Purchase Price) is hereby amended to delete the number “$5,000,000” and replacing same with “4,447,230.23”.

 

2.1.2       Section 4.2 (Repayment) of the Purchase Agreement shall be amended by deleting “of $200,000” where it appears in such section as well as deleting the last sentence thereof and replacing with the following: “equal to the amount set forth in Section 4.3. All payments hereunder shall be applied firstly to the unpaid and accrued Interest and the balance to the unpaid balance of the Purchase Price.

 

2.1.3      Section 4.3 (Terms of Payment) of the Purchase Agreement is amended to delete the number and words “twenty-five (25)” and replace same with “thirty-six (36)” and “$200,000” is replaced with the phrase “the greater of $100,000 or 85% of gross monthly revenues of the Purchaser as set forth in Schedule 4.5 hereof. The Seller shall have the right to audit such revenues at its cost and the Purchaser shall allow the Seller access to his books and records to facilitate such audit”. In addition, the reference to “September 15th, 2011” is deleted and replaced with “August 15th 2012.”

 

2.1.4      Schedule 4.5 set forth in the First Amendment is replaced by the new Schedule 4.5 annexed hereto.

 

2.1.5      Section 4.5 (Interest) of the Purchase Agreement is amended by deleting the words “four percent” and number “4” and replacing said number with the number “13.6”.

 

2.1.6      Section 4.5 (Interest) of the Purchase Agreement is amended by deleting the addition made to said Section 4.5 in the First Amendment and by deleting the last two sentences of Section 4.5 and replacing said by the following:

	  	  
	  	
“The Purchaser shall pay all Interest accrued as part of the Monthly Payments as set forth in the attached Schedule 4.5 with any such Monthly Payment paid being applied first to accrued and unpaid Interest, and the balance thereof, if any, will be applied to the unpaid balance of the Purchase Price.”

 

2.1.7     Section 4.6 (Shortfall) of the Purchase Agreement is amended to delete the number “200,000” wherever it appears in said section and replaced with the phrase “the amount of the Monthly Payment set forth in Section 4.3”.

 

ARTICLE 3

GENERAL

 

3.1          Benefit of the Agreement

 

This Agreement will enure to the benefit of and be binding upon the respective successors and permitted assigns of the Parties hereto.

  

  

  

 

- 3 -

 

3.2          Construction of Agreement

 

The Preamble hereof and Schedule(s) hereto are incorporated herein by reference and constitute an integral part hereof as though recited herein at length. Reference in this Agreement to the terms “this Agreement”, “herein”, “hereof, “hereto”, “hereunder”, “hereby” and words of similar import shall be deemed to constitute a reference to this Amendment to the Purchase Agreement as a whole (as the same may be supplemented, amended, restated or replaced from time to time) and not to any particular Article, Section, Schedule or other division of this Agreement. The division of this Agreement into Articles, Sections, Schedules and the insertion of other divisions and headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement.

 

3.3          Assignment

 

This Agreement may not be assigned by any Party without the prior written consent of the other Parties.

 

3.4          Entire Agreement

 

The Purchase Agreement constitutes the entire agreement between the Parties hereto with respect to the subject matters hereof and cancels and supersedes any prior understanding, and agreement between the Parties hereto with respect thereto. There are no representations, warranties, terms, conditions or undertakings, express, implied or statutory, between the Parties other than as expressly set forth in this Agreement. The Purchase Agreement is not intended to confer upon any Person, other than the Parties hereto and their respective successors and permitted assigns, any rights or remedies.

 

3.5          Extent of Amendment

 

This Agreement shall be construed in connection with and as part of the Purchase Agreement, as amended by the First Amendment, and all terms, conditions, representations, warranties, covenants and agreements set forth in the Purchase Agreement, as amended by the First Amendment, except as herein modified or supplemented, are hereby confirmed and shall remain in full force and effect.

 

3.6          Counterparts

 

This Agreement may be executed in one or more counterparts, each of which shall conclusively be deemed to be an original but all of which taken together shall be deemed to constitute one and the same Agreement. A facsimile transmission of the Agreement bearing a signature on behalf of a Party shall be legal and binding on such Party.

 

3.7          Language

 

The Parties hereto acknowledge that they have expressly required that the present Agreement and all schedules, documents and notices relating thereto be drafted in the English language. Les parties aux présentes déclarent qu ’elks ont expressément exigé que la présente convention et tous les annexes, documents ou avis qui y sont afférents soient rédigés en anglais.

 

(remainder of this page left blank intentionally)

  

  

  

 

(signature page to the Amendment to the Purchase Agreement)

	  	  	  
	  	
COPERNIC INC.

	  	  	  
	  	
Per:

	  
	  	  	
JEAN-ROCK FOURNIER

	  	  	  
	  	
EMPRESARIO INC.

	  	  	  
	  	
Per:

	  
	  	  	
Omar Solis

 

AND TO THIS AGREEMENT INTERVENED THE GUARANTOR, who agrees to continue to be bound by the terms of the original guarantee executed on May 14, 2009 and who agrees to the terms set forth herein.

	  	  	  
	  	            
	  	
OMAR SOLIS

 

  

  

  

 

	
Copernic

	
SCHEDULE 4.5

	
Search Unit Offer

	  
	
Interest and Capital Table

	  

 

	
Interest Rate

	 	 	 13.60	%	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Opening

date

	 	
Period

	 	 	
Opening

Balance

	 	 	
Interest

	 	 	 	
Capital

	 	 	
Payment

	 	 	
Closing

Balance

	 	
Closing

date

	
30-juin-09

	 	 	0.5	 	 	 4 447 230.23	 	 	 	25 129.97	-	 	 	 	25 129.97	 	 	 	 	 	 	4 472 360.20	 	
15-juil-09

	
15-juil-09

	 	 	1	 	 	 	4 472 360.20 	 	 	 	25 271.97	-	 	 	 	25 271.97	 	 	 	 	 	 	4 497 632.17	 	
31-juil-09

	
31-juil-09

	 	 	1.5	 	 	 	4 497 632.17 	 	 	 	25 414.78	-	 	 	 	25 414.78	 	 	 	 	 	 	4 523 046.95	 	
15-aout-09

	
15-aout-09

	 	 	2	 	 	 	4 523 046.95 	 	 	 	25 558.39	-	 	 	 	25 558.39	 	 	 	 	 	 	4 548 605.33	 	
31-aout-09

	
31-aout-09

	 	 	2.5	 	 	 	4 548 605.33 	 	 	 	25 702.81	 	 	 	 	74 297.19	 	 	 	100000.00	 	 	 	4 474 308.14	 	
15-sept-09

	
15-sept-09

	 	 	3	 	 	 	4 474 308.14 	 	 	 	25 282.98	-	 	 	 	25 282.98	 	 	 	 	 	 	 	4 499 591.12	 	
30-sept-09

	
30-sept-09

	 	 	3.5	 	 	 	4 499 591.12 	 	 	 	25 425.85	 	 	 	 	74 574.15	 	 	 	100000.00	 	 	 	4 425 016.97	 	
15-oct-09

	
15-oct-09

	 	 	4	 	 	 	4 425 016.97 	 	 	 	25 004.45	-	 	 	 	25 004.45	 	 	 	 	 	 	 	4 450 021.42	 	
31-oct-09

	
31-oct-09

	 	 	4.5	 	 	 	4 450 021.42 	 	 	 	25 145.74	 	 	 	 	151 354.60	 	 	 	176500.34	 	 	 	4 298 666.82	 	
15-nov-09

	
15-nov-09

	 	 	5	 	 	 	4 298 666.82 	 	 	 	24 290.48	-	 	 	 	24 290.48	 	 	 	 	 	 	 	4 322 957.31	 	
30-nov-09

	
30-nov-09

	 	 	5.5	 	 	 	4 322 957.31 	 	 	 	24 427.74	 	 	 	 	150 640.63	 	 	 	175068.37	 	 	 	4 172 316.67	 	
15-dec-09

	
15-dec-09

	 	 	6	 	 	 	4 172 316.67 	 	 	 	23 576.52	-	 	 	 	23 576.52	 	 	 	 	 	 	 	4 195 893.19	 	
31-dec-09

	
31-dec-09

	 	 	6.5	 	 	 	4 195 893.19 	 	 	 	23 709.74	 	 	 	 	149 926.66	 	 	 	173636.40	 	 	 	4 045 966.53	 	
15-janv-10

	
15-janv-10

	 	 	7	 	 	 	4 045 966.53 	 	 	 	22 862.55	-	 	 	 	22 862.55	 	 	 	 	 	 	 	4 068 829.07	 	
31-janv-10

	
31-janv-10

	 	 	7.5	 	 	 	4 068 829.07 	 	 	 	22 991.74	 	 	 	 	149 212.70	 	 	 	172204.44	 	 	 	3 919 616.38	 	
15-fevr-10

	
15-fevr-10

	 	 	8	 	 	 	3 919 616.38 	 	 	 	22 148.58	-	 	 	 	22 148.58	 	 	 	 	 	 	 	3 941 764.96	 	
28-fevr-10

	
28-fevr-10

	 	 	8.5	 	 	 	3 941 764.96 	 	 	 	22 273.74	 	 	 	 	148 498.73	 	 	 	170772.47	 	 	 	3 793 266.23	 	
15-mars-10

	
15-mars-10

	 	 	9	 	 	 	3 793 266.23 	 	 	 	21 434.61	-	 	 	 	21 434.61	 	 	 	 	 	 	 	3 814 700.84	 	
31-mars-10

	
31-mars-10

	 	 	9.5	 	 	 	3 814 700.84 	 	 	 	21 555.74	 	 	 	 	147 784.76	 	 	 	169340.50	 	 	 	3 666 916.08	 	
15-avr-10

	
15-avr-10

	 	 	10	 	 	 	3 666 916.08 	 	 	 	20 720.65	-	 	 	 	20 720.65	 	 	 	 	 	 	 	3 687 636.73	 	
30-avr-10

	
30-avr-10

	 	 	10.5	 	 	 	3 687 636.73 	 	 	 	20 837.73	 	 	 	 	147 070.80	 	 	 	167908.53	 	 	 	3 540 565.93	 	
15-mai-10

	
15-mai-10

	 	 	11	 	 	 	3 540 565.93 	 	 	 	20 006.68	-	 	 	 	20 006.68	 	 	 	 	 	 	 	3 560 572.61	 	
31-mai-10

	
31-mai-10

	 	 	11.5	 	 	 	3 560 572.61 	 	 	 	20 119.73	 	 	 	 	146 356.83	 	 	 	166476.56	 	 	 	3 414 215.79	 	
15-juin-10

	
15-juin-10

	 	 	12	 	 	 	3 414 215.79 	 	 	 	19 292.71	-	 	 	 	19 292.71	 	 	 	 	 	 	 	3 433 508.50	 	
30-juin-10

	
30-juin-10

	 	 	12.5	 	 	 	3 433 508.50 	 	 	 	19 401.73	 	 	 	 	145 642.86	 	 	 	165044.59	 	 	 	3 287 865.64	 	
15-juil-10

	
15-juil-10

	 	 	13	 	 	 	3 287 865.64 	 	 	 	18 578.75	-	 	 	 	18 578.75	 	 	 	 	 	 	 	3 306 444.38	 	
31-juil-10

	
31-juil-10

	 	 	13.5	 	 	 	3 306 444.38 	 	 	 	18 683.73	 	 	 	 	144 928.90	 	 	 	163612.63	 	 	 	3 161 515.49	 	
15-aout-10

	
15-aout-10

	 	 	14	 	 	 	3 161 515.49 	 	 	 	17 864.78	-	 	 	 	17 864.78	 	 	 	 	 	 	 	3 179 380.27	 	
31-aout-10

	
31-aout-10

	 	 	14.5	 	 	 	3 179 380.27 	 	 	 	17 965.73	 	 	 	 	144 214.93	 	 	 	162180.66	 	 	 	3 035 165.34	 	
15-sept-10

	
15-sept-10

	 	 	15	 	 	 	3 035 165.34 	 	 	 	17 150.81	-	 	 	 	17 150.81	 	 	 	 	 	 	 	3 052 316.15	 	
30-sept-10

	
30-sept-10

	 	 	15.5	 	 	 	3 052 316.15 	 	 	 	17 247.73	 	 	 	 	143 500.96	 	 	 	160748.69	 	 	 	2 908 815.19	 	
15-oct-10

	
15-oct-10

	 	 	16	 	 	 	2 908 815.19 	 	 	 	16 436.85	-	 	 	 	16 436.85	 	 	 	 	 	 	 	2 925 252.04	 	
31-oct-10

	
31-oct-10

	 	 	16.5	 	 	 	2 925 252.04 	 	 	 	16 529.73	 	 	 	 	142 786.99	 	 	 	159316.72	 	 	 	2 782 465.04	 	
15-nov-10

	
15-nov-10

	 	 	17	 	 	 	2 782 465.04 	 	 	 	15 722.88	-	 	 	 	15 722.88	 	 	 	 	 	 	 	2 798 187.92	 	
30-nov-10

	
30-nov-10

	 	 	17.5	 	 	 	2 798 187.92 	 	 	 	15 811.72	 	 	 	 	142 073.03	 	 	 	157884.75	 	 	 	2 656 114.90	 	
15-dec-10

	
15-dec-10

	 	 	18	 	 	 	2 656 114.90 	 	 	 	15 008.91	-	 	 	 	15 008.91	 	 	 	 	 	 	 	2 671 123.81	 	
31-dec-10

	
31-dec-10

	 	 	18.5	 	 	 	2 671 123.81 	 	 	 	15 093.72	 	 	 	 	141 359.06	 	 	 	156452.78	 	 	 	2 529 764.75	 	
15-janv-11

	
15-janv-11

	 	 	19	 	 	 	2 529 764.75 	 	 	 	14 294.95	-	 	 	 	14 294.95	 	 	 	 	 	 	 	2 544 059.69	 	
31-janv-11

	
31-janv-11

	 	 	19.5	 	 	 	2 544 059.69 	 	 	 	14 375.72	 	 	 	 	140 645.09	 	 	 	155020.82	 	 	 	2 403 414.60	 	
15-fevr-11

	
15-fevr-11

	 	 	20	 	 	 	2 403 414.60 	 	 	 	13 580.98	-	 	 	 	13 580.98	 	 	 	 	 	 	 	2 416 995.58	 	
28-fevr-11

	
28-fevr-11

	 	 	20.5	 	 	 	2 416 995.58 	 	 	 	13 657.72	 	 	 	 	139 931.13	 	 	 	153588.85	 	 	 	2 277 064.45	 	
15-mars-11

	
15-mars-11

	 	 	21	 	 	 	2 277 064.45 	 	 	 	12 867.01	-	 	 	 	12 867.01	 	 	 	 	 	 	 	2 289 931.46	 	
31-mars-11

	
31-mars-11

	 	 	21.5	 	 	 	2 289 931.46 	 	 	 	12 939.72	 	 	 	 	139 217.16	 	 	 	152156.88	 	 	 	2 150 714.30	 	
15-avr-11

	
15-avr-11

	 	 	22	 	 	 	2 150 714.30 	 	 	 	12 153.04	-	 	 	 	12 153.04	 	 	 	 	 	 	 	2 162 867.35	 	
30-avr-11

	
30-avr-11

	 	 	22.5	 	 	 	2 162 867.35 	 	 	 	12 221.72	 	 	 	 	138 503.19	 	 	 	150724.91	 	 	 	2 024 364.16	 	
15-mai-11

	
15-mai-11

	 	 	23	 	 	 	2 024 364.16 	 	 	 	11 439.08	-	 	 	 	11 439.08	 	 	 	 	 	 	 	2 035 803.23	 	
31-mai-11

	
31-mai-11

	 	 	23.5	 	 	 	2 035 803.23 	 	 	 	11 503.72	 	 	 	 	137 789.23	 	 	 	149292.94	 	 	 	1 898 014.01	 	
15-juin-11

	
15-juin-11

	 	 	24	 	 	 	1 898 014.01 	 	 	 	10 725.11	-	 	 	 	10 725.11	 	 	 	 	 	 	 	1 908 739.12	 	
30-juin-11

	
30-juin-11

	 	 	24.5	 	 	 	1 908 739.12 	 	 	 	10 785.71	 	 	 	 	137 075.26	 	 	 	147860.97	 	 	 	1 771 663.86	 	
15-juil-11

	
15-juil-11

	 	 	25	 	 	 	1 771 663.86 	 	 	 	10 011.14	-	 	 	 	10 011.14	 	 	 	 	 	 	 	1 781 675.00	 	
31-juil-11

	
31-juil-11

	 	 	25.5	 	 	 	1 781 675.00 	 	 	 	10 067.71	 	 	 	 	136 361.29	 	 	 	146429.01	 	 	 	1 645 313.71	 	
15-aout-11

	
15-aout-11

	 	 	26	 	 	 	1 645 313.71 	 	 	 	9 297.18	-	 	 	 	9 297.18	 	 	 	 	 	 	 	1 654 610.89	 	
31-aout-11

	
31-aout-11

	 	 	26.5	 	 	 	1 654 610.89 	 	 	 	9 349.71	 	 	 	 	135 647.32	 	 	 	144997.04	 	 	 	1 518 963.56	 	
15-sept-11

	
15-sept-11

	 	 	27	 	 	 	1 518 963.56 	 	 	 	8 583.21	-	 	 	 	8 583.21	 	 	 	 	 	 	 	1 527 546.77	 	
30-sept-11

	
30-sept-11

	 	 	27.5	 	 	 	1 527 546.77 	 	 	 	8 631.71	 	 	 	 	134 933.36	 	 	 	143565.07	 	 	 	1 392 613.41	 	
15-oct-11

	
15-oct-11

	 	 	28	 	 	 	1 392 613.41 	 	 	 	7 869.24	-	 	 	 	7 869.24	 	 	 	 	 	 	 	1 400 482.66	 	
31-oct-11

	
31-oct-11

	 	 	28.5	 	 	 	1 400 482.66 	 	 	 	7 913.71	 	 	 	 	134 219.39	 	 	 	142133.10	 	 	 	1 266 263.27	 	
15-nov-11

	
15-nov-11

	 	 	29	 	 	 	1 266 263.27 	 	 	 	7 155.28	-	 	 	 	7 155.28	 	 	 	 	 	 	 	1 273 418.54	 	
30-nov-11

	
30-nov-11

	 	 	29.5	 	 	 	1 273 418.54 	 	 	 	7 195.71	 	 	 	 	133 505.42	 	 	 	140701.13	 	 	 	1 139 913.12	 	
15-dec-11

	
15-dec-11

	 	 	30	 	 	 	1 139 913.12 	 	 	 	6 441.31	-	 	 	 	6 441.31	 	 	 	 	 	 	 	1 146 354.43	 	
31-dec-11

	
31-dec-11

	 	 	30.5	 	 	 	1 146 354.43 	 	 	 	6 477.71	 	 	 	 	132 791.46	 	 	 	139269.16	 	 	 	1 013 562.97	 	
15-janv-12

	
15-janv-12

	 	 	31	 	 	 	1 013 562.97 	 	 	 	5 727.34	-	 	 	 	5 727.34	 	 	 	 	 	 	 	1 019 290.31	 	
31-janv-12

	
31-janv-12

	 	 	31.5	 	 	 	1 019 290.31 	 	 	 	5 759.71	 	 	 	 	132 077.49	 	 	 	137837.20	 	 	 	887 212.82	 	
15-fevr-12

	
15-fevr-12

	 	 	32	 	 	 	8 872 12.82 	 	 	 	5 013.37	-	 	 	 	5 013.37	 	 	 	 	 	 	 	892 226.20	 	
29-fevr-12

	
29-fevr-12

	 	 	32.5	 	 	 	8 922 26.20 	 	 	 	5 041.70	 	 	 	 	131 363.52	 	 	 	136405.23	 	 	 	760 862.67	 	
15-mars-12

	
15-mars-12

	 	 	33	 	 	 	7 608 62.67 	 	 	 	4 299.41	-	 	 	 	4 299.41	 	 	 	 	 	 	 	765 162.08	 	
31-mars-12

	
31-mars-12

	 	 	33.5	 	 	 	7 651 62.08 	 	 	 	4 323.70	 	 	 	 	130 649.56	 	 	 	134973.26	 	 	 	634 512.53	 	
15-avr-12

	
15-avr-12

	 	 	34	 	 	 	6 345 12.53 	 	 	 	3 585.44	-	 	 	 	3 585.44	 	 	 	 	 	 	 	638 097.97	 	
30-avr-12

	
30-avr-12

	 	 	34.5	 	 	 	6 380 97.97 	 	 	 	3 605.70	 	 	 	 	129 935.59	 	 	 	133541.29	 	 	 	508 162.38	 	
15-mai-12

	
15-mai-12

	 	 	35	 	 	 	5 081 62.38 	 	 	 	2 871.47	-	 	 	 	2 871.47	 	 	 	 	 	 	 	511 033.85	 	
31-mai-12

	
31-mai-12

	 	 	35.5	 	 	 	5 110 33.85 	 	 	 	2 887.70	 	 	 	 	129 221.62	 	 	 	132109.32	 	 	 	381 812.23	 	
15-juin-12

	
15-juin-12

	 	 	36	 	 	 	3 818 12.23 	 	 	 	2 157.51	-	 	 	 	2 157.51	 	 	 	 	 	 	 	383 969.74	 	
30-juin-12

	
30-juin-12

	 	 	36.5	 	 	 	3 839 69.74 	 	 	 	2 169.70	 	 	 	 	128 507.66	 	 	 	130677.35	 	 	 	255 462.08	 	
15-juil-12

	
15-juil-12

	 	 	37	 	 	 	2 554 62.08 	 	 	 	1 443.54	-	 	 	 	1 443.54	 	 	 	 	 	 	 	256 905.62	 	
31-juil-12

	
31-juil-12

	 	 	37.5	 	 	 	2 569 05.62 	 	 	 	1 451.70	 	 	 	 	256 905.62	 	 	 	258357.32	 	 	 	-	 	
15-aout-12

	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  
	
Total

	 	 	 	 	 	 	 	 	 	 	1 079 559.04	 	 	 	 	4 447 230.23	 	 	 	5 526 789.27Sunset Suits Holdings Inc.: Exhibit 10.1 - Filed by newsfilecorp.com

Exhibit 10.1

Certified Translation from Polish into English

SHARE SALE AGREEMENT

Concluded in Jelenia Góra on the 26th of March 2010 between:

“SUNSET SUITS” JOINT STOCK COMPANY in Poznań, STAROŁĘCKA street 18, 61-361 Poznań, registered in the Entrepreneurs’ Register kept by the District Court of Poznań under the number KRS 0000265620, represented by: Board of Directors Chairman Ryszard Kranik,

Further called the Seller,

and

XCRITO Limited, with a domicile at the address 35, Theklas Lyssioti Street, Eagle Star House 6th Floor, 3030 Limassol, Cyprus, with a registration number: 258967,

Represented by: authorized representative and legal advisor Robert Bobkier

Further called the Purchaser.

§1

Declarations of the Parties

1.  

The Seller declares that:

a)

He is the owner of 2002 (two thousand and two) shares in the company’s share capital under the business name Fashion Service Limited Company in Miłosław, in Sienkiewicza Street 11, 62-320 Miłosław registered in the Entrepreneurs’ Register kept by the District Court of Poznań under the number KRS 0000294354 (further called the Company), of an initial value of 500 PLN (five hundred zlotys) per share, and a total initial value of 1.001.000 PLN (one million one thousand zlotys),

b)

The shares specified in point a), further called the Shares, represent a total of 100% of the Company’s share capital,

c)

The Shares are free of any charges and claims by third parties,

d)

The Seller received permission from the Company’s Shareholders’ Assembly to sell the Shares.

2.  

The Purchaser declares that he is familiar with the Company’s Agreement.

§2

Subject of the Agreement

The Seller sells and the Purchaser buys 2002 (two thousand and two) shares in the Company’s share capital.

§3

Sale Price

1. The total price of the subject of the agreement indicated in §2 is the equivalent of 16.000 USD (sixteen thousand US dollars) in Polish zlotys (PLN).

Certified Translation from Polish into English

2. The price specified in item 1 is payable within 30 (thirty) days via transfer onto the Seller’s bank account which the Purchaser will be notified of in a separate letter.

§4

Final Provisions

1.     The agreement was prepared in 5 (five) copies, 2 (two) for the Seller, 2 (two) for the Purchaser and 1 (one) for the Company.

2.     All possible disputes will be settled by a court appropriate to the Purchaser based on the legal system of Cyprus.

3.     All changes and supplements to this agreement require the form of a written annex under pain of nullity.

  
  	Seller	Purchaser
	 	 
	/s/ Mirosław
      Ryszard Kranik	/s/ Robert Bobkier

  

Certified Translation from Polish into English

Annex no 1 from 26.03.2010 to the

SHARE SALE AGREEMENT

Concluded in Jelenia Góra on the 26th of March 2010 between:

“SUNSET SUITS” JOINT STOCK COMPANY in Poznań, STAROŁĘCKA street 18, 61-361 Poznań, registered in the Entrepreneurs’ Register kept by the District Court of Poznań under the number KRS 0000265620, represented by: Board of Directors Chairman Ryszard Kranik,

Further called the Seller,

and

XCRITO Limited, with a domicile at the address 35, Theklas Lyssioti Street, Eagle Star House 6th Floor, 3030 Limassol, Cyprus, with a registration number: 258967,

Represented by: authorized representative and legal advisor Robert Bobkier

Further called the Purchaser.

§1

Declarations of the Seller

1.  

The Seller declares that:

a)

The Company, whose shares he is selling, particularly consists of:

(i)

the furnished real-estate of a total value of 97,177.00 PLN, for which the District Court in Śrem keeps a land and mortgage register KW no 31614,

(ii)

intangible and legal property in the amount of 31,800,000.00 PLN,

(iii)
 

tangible assets in the amount of 27,058,675,53 PLN,

(iv)

liabilities in the amount of 61,233,700.67 PLN.

b) 

The enterprise pro forma balance of the company, whose shares he sells prepared in accordance with US GAAP constitutes appendix no 1 to this Annex.

c) 

The enterprise pro forma balance of the company, whose shares he sells prepared in accordance with Polish Accounting Standards (PAS) constitutes appendix no 2 to this annex.

d)  

In connection with the sale agreement the Seller excludes the following obligations from credit agreements, which he will handle individually, from the enterprise liabilities of the company whose shares he sells:

(i) 

ING Bank Śląski S.A. – credit agreement from the 1st of March 2000 for the primary sum of 5,387,201.10 PLN (approximately 1,697,665.23 USD),

(ii) 

Bank Gospodarki Żywnościowej S.A. – credit agreement from the 3rd of October 2000 for the primary sum of 4,714,554.66 USD,

(iii)   

Bank Gospodarki Żywnościowej S.A. – credit agreement from the 28th of February 2000 for the primary sum of 3,045,046.22 PLN (approximately 959,583.46 USD),

Certified Translation from Polish into English

(iv) 

Bank Współpracy Europejskiej S.A. – credit agreement from the 30th of December 1997 for the primary sum of 136,137.93 USD,

(v) 

Bank Współpracy Europejskiej S.A. – credit agreement from the 12th of April 1998 for the primary sum of 4,403,955.15 PLN (approximately 1,387,815.57 USD),

(vi) 

Bank Współpracy Europejskiej S.A. – credit agreement from the 1st of October 2000 for the primary sum of 554,862.53 USD.

e) 

Shall see to it that the current Company Management resigns from their function in the Company no later than within 90 days after the signature date of this annex, and during this time will refrain from incurring any new liabilities and acquiring any new business contracts without authorization by the Purchaser; the above restriction does not apply to the activities of the regular board of directors.

§2

Declarations of the Purchaser

1. The Purchaser declares that he is familiar with the legal and proprietary situation of the Company presented in the document PROSPECTUS SUNSET SUITS HOLDINGS, INC., prepared in accordance with regulation 424(b)(3) registration number 333-152149 and published on the 4th of February 2010 on the pages of THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION,

2.The Purchaser declares to take responsibility for the liabilities of the company, whose shares he purchases, in the event where these liabilities, secured in the Seller’s property and due and payable on the conclusion date of this annex and ruled in future court and administrative proceedings, in the future became subject to settlement an execution from the Seller’s property.

§3

Final Provisions

1.

The enterprise balance of the Fashion Service Ltd. Company at the date of sale shall be prepared within 90 days following the share sale date.

2.

Possible temporary terms of use for the enterprise real-estate of the Company by the Seller will be settled via civil agreements.

  
  	Seller	Purchaser
	 	 
	/s/ Mirosław
      Ryszard Kranik	/s/ Robert Bobkier
	 	 

  

Appendix no 1

	
  
  Pro forma US GAAP Balance sheet of Fashion Service Ltd.

  (all amounts in thousands)

	
  
  December 31,

  2009

	
  
  ASSETS

	 
	
  
  Current assets

	 
	
  
  Cash

	
  
  $10

	
  
  Accounts Receivable

	
  
  915

	
  
  Inventories

	
  
  2 400

	
  
  Other current assets

	
  
  329

	
  
  Non-current assets

	 
	
  
  Property, plant and equipment, net

	
  
  7 694

	
  
  TOTAL ASSET HELD FOR SALE

	
  
  $ 11 348

	 	 
	
  
  LIABILITIES AND STOCKHOLDERS’ EQUITY

	 
	
  
  Current liabilities

	 
	
  
  Current portion of finance lease payable

	
  
  36

	
  
  Accounts payable

	
  
  3 085

	
  
  Income and other taxes payable

	
  
  6 178

	
  
  Accrued employee compensation and benefits

	
  
  509

	
  
  Non-current liabilities

	 
	
  
  Provisions

	
  
  69

	
  
  Deferred taxes

	
  
  1 299

	
  
  Long-term tax payable

	
  
  6 319

	
  
  Finance lease payable

	
  
  65

	
  
  Total liabilities associated with assets held for sale

	
  
  $ 17,560

	 	 
	
  
  Stockholders’ equity

	 
	
  
  Retained earnings (deficit)

	
  
  (6,212)

	 	 
	
  
  TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY ASSOCIATED WITH ASSETS HELD FOR SALE

	
  
  $ 11,348

 

Appendix no 2

	
  
  Fashion Services Ltd.

  SIENKIEWICZA 11

  62-320 MIŁOSŁAW

  NIP 778-14-50-551 REGON 300712607

	
  
  BALANCE

  In accordance with PAS

	

Assets

	
  
  As at

  28.02.2010

	
  
  As at

  31.12.2009

	
  
  A. Fixed assets

	
  
  59 443 820,34

	
  
  59 384 665,96

	
  
  I. Intangible and legal properties

	
  
  31 800 000,00

	
  
  31 800 000,00

	
  
  1. Costs of finished development works

	 	 
	
  
  2. Company value

	 	 
	
  
  3. Other intangible and legal properties

	
  
  31 800 000,00

	
  
  31 800 000,00

	
  
  4. Advances for intangible and legal properties

	 	 
	
  
  II. Tangible fixed assets

	
  
  27 058 675,53

	
  
  26 999 521,15

	
  
  1. Fixed assets

	
  
  25 471 653,25

	
  
  25 412 498,87

	
  
  a) land (including right of perpetual usufruct)

	
  
  97 177,00

	
  
  97 177,00

	
  
  b) buildings, premises and land and water engineering facilities

	
  
  22 066 486,30

	
  
  22 023 913,47

	
  
  c) technical equipment and machines

	
  
  2 915 644,06

	
  
  2 913 942,47

	
  
  d) means of transport

	
  
  389 349,21

	
  
  374 640,42

	
  
  e) other fixed assets

	
  
  2 996,68

	
  
  2 825,44

	
  
  2. Fixed assets under construction

	
  
  1 587 022,28

	
  
  1 587 022,28

	
  
  3. Advances for fixed assets under construction

	 	 
	
  
  III. Long-term receivables

	 	 
	
  
  1. From associated entities

	 	 
	
  
  2. From other entities

	 	 
	
  
  IV. Long-term investments

	 	 
	
  
  1. Real-estate

	 	 
	
  
  2. Intangible and legal properties

	 	 
	
  
  3. Long-term financial assets

	 	 
	
  
  a) In associated entities

	 	 
	
  
  - Shares or stocks

	 	 
	
  
  - Other securities

	 	 
	
  
  - Loans given

	 	 
	
  
  - Other long-term financial assets

	 	 
	
  
  a) In other entities

	 	 
	
  
  - Shares or stocks

	 	 
	
  
  - Other securities

	 	 
	
  
  - Loans given

	 	 
	
  
  - Other long-term financial assets

	 	 
	
  
  1. Other long-term investments

	 	 
	
  
  V. Long-term prepayments and accruals

	
  
  585 144,81

	
  
  585 144,81

	
  
  1. Deferred tax assets

	
  
  585 144,81

	
  
  585 144,81

	
  
  2. Other prepayments and accruals

	 	 
	
  
  B. Current assets

	
  
  22 940 206,76

	
  
  22 978 725,74

	
  
     I. Inventories

	
  
  7 020 887,84

	
  
  6 367 204,85

	
  
  1. Materials

	
  
  3 987 231,88

	
  
  3 814 334,19

	
  
  2. Semi-finished products and products in development

	
  
  183 046,61

	
  
  351 867,90

	
  
  3. Finished products

	
  
  2 850 606,35

	
  
  2 201 002,76

	
  
  4. Goods

	 	 
	
  
  5. Advance payments for deliveries

	 	 
	
  
     II. Short-term payables

	
  
  15 807 740,17

	
  
  16 487 735,20

	
  
  1. Payables from associated entities

	
  
  14 136 167,04

	
  
  15 296 746,33

	
  
  a) From deliveries and services in a payment term

	
  
  13 204 976,04

	
  
  14 365 555,33

	
  
  - To 12 months

	
  
  13 204 976,04

	
  
  14 365 555,33

	
  - Over 12 months	 	 
	
  
  a) Other

	
  
  931 191,00

	
  
  931 191,00

	
  
  1. Payables from other entities

	
  
  1 671 573,13

	
  
  1 190 988,87

	
  
  a) From deliveries and services in a payment term

	
  
  1 320 111,26

	
  
  1 012 899,44

	
  
  - To 12 months

	
  
  1 320 111,26

	
  
  1 012 899,44

	
  
  - Over 12 months

	 	 
	
  
  a) From taxes, donations, customs, social and healthcare insurance and other benefits

	 	 
	
  
  b) Other

	
  
  351 461,87

	
  
  178 089,43

	
  
  c) Attained through court proceedings 

	 	 
	
  
     III. Short-term investments

	
  
  27 693,84

	
  
  22 121,54

	
  
  1. Short-term financial assets

	
  
  27 693,84

	
  
  22 121,54

	
  
  a) In associated entities

	 	 
	
  
  - Shares or stocks

	 	 
	
  
  - Other securities

	 	 
	
  
  - Loans given

	 	 
	
  
  - Other short-term financial assets

	 	 
	
  
  a) In other entities

	 	 
	
  
  - Shares or stocks

	 	 
	
  
  - Other securities

	 	 
	
  
  - Loans given

	 	 
	
  
  - Other short-term financial assets

	 	 
	
  
  a) Cash resources and cash equivalent assets

	
  
  27 693,84

	
  
  22 121,54

	
  
  - Cash in the register and on accounts

	
  
  27 693,84

	
  
  22 121,54

	
  
  - Other cash resources

	 	 
	
  
  - Other cash equivalent assets

	 	 
	
  
  1. Other short-term investments

	 	 
	
  
  IV. Short-term prepayments and accruals

	
  
  83 884,91

	
  
  101 664,15

	
  
  Total Assets

	
  
  82 384 027,10

	
  
  82 363 391,70

	

Liabilities

	
  
  As at

  28.02.2010

	
  
  As at

  31.12.2009

	
  
  A. Equity Capital

	
  
  21 129 691,03

	
  
  3 275 794,58

	
  
    I. Primary capital

	
  
  1 001 000,00

	
  
  1 001 000,00

	
  
    II. Payments due to the primary capital (negative value)

	
  
  0,00

	 
	
  
    III. Treasury shares (negative value)

	 	 
	
  
    IV. Supplementary capital

	
  
  25 512 621,24

	
  
  6 229 711,96

	
  
    V. Valuation update capital

	 	 
	
  
    VI. Other reserve capital

	 	 
	
  
    VII. Profit (loss) from previous years

	
  
  -3 954 917,38

	
  
  664 981,86

	
  
    VIII. Net profit (loss)

	
  
  (1 429 012,83)

	
  
  (4 619 899,24)

	
  
    IX. Net profit write-offs in the fiscal year (negative value)

	 	 
	
  
  B. Obligations and obligation reserves

	
  
  61 233 700,67

	
  
  79 108 232,52

	
  
    I. Obligation reserves

	
  
  198 023,00

	
  
  198 023,00

	
  
  1. Deferred income tax reserves

	 	 
	
  
  2. Pension and other benefit reserves

	
  
  36 003,00  

	
  
  36 003,00

	
  
  - Long-term

	 	 
	
  
  - Short-term

	
  
  36 003,00

	
  
  36 003,00

	
  
  1. Other reserves

	
  
  162 020,00

	
  
  162 020,00

	
  
  - Long-term

	 	 
	
  
  - Short-term

	
  
  162 020,00

	
  
  162 020,00

	
  
    II. Long-term obligations

	
  
  0,00

	
  
  14 085 968,73

	
  
  1. Due to associated entities

	 	 
	
  
  2. Due to other entities

	
  
  0,00

	
  
  14 085 968,73

	
  
  a) Credits and loans

	 	
  
  14 085 968,73

	
  
  b) From the issue of due securities

	 	 
	
  
  c) Other financial obligations

	 	 
	
  
  d) Other

	 	 
	
  
    III. Short-term obligations

	
  
  61 035 677,67

	
  
  64 824 240,79

	
  
  1. Due to associated entities

	
  
  8 580 184,35

	
  
  9 258 743,80

	
  
  a) From deliveries and services in the due period:

	
  
  0,00

	
  
  678 559,45

	
  
  - Up to 12 months

	 	
  
  678 559,45

	
  
  - Over 12 months

	 	 
	
  
  a) Other

	
  
  8 580 184,35

	
  
  8 580 184,35

	
  
  1. Due to other entities

	
  
  52 455 493,32

	
  
  55 565 496,99

	
  
  a) Credits and loans

	 	
  
  5 196 940,55

	
  
  b) From the issue of due securities

	 	 
	
  
  c) Other financial obligations

	 	 
	
  
  d) From deliveries and services in the due period:

	
  
  6 700 886,79

	
  
  6 612 427,50

	
  
  - Up to 12 months

	
  
  6 700 886,79

	
  
  6 612 427,50

	
  
  - Over 12 months

	 	 
	
  
  a) Advance payments received for deliveries

	
  
  6 313 044,15

	
  
  5 718 924,04

	
  
  b) Liability on bills of exchange

	 	 
	
  
  c) From taxes, customs, insurance and other benefits

	
  
  36 289 217,78

	
  
  35 619 159,36

	
  
  d) From remuneration

	
  
  2 035 900,23

	
  
  1 362 112,70

	
  
  e) Other

	
  
  1 116 444,37

	
  
  1 055 932,84

	
  
  1. Special funds

	 	 
	
  
  IV. Prepayments and accruals

	
  
  0,00

	 
	
  
  1. Company’s negative value

	 	 
	
  
  2. Other prepayments and accruals

	
  
  0,00

	 
	
  
  - Long-terms

	 	 
	
  
  - Short-term

	
  
  0,00

	 
	
  
  Total Liabilities

	
  
  82 363 391,70

	
  
  82 384 027,10

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