Document:

Exhibit 10.2

 Exhibit 10.2
 MAKE WHOLE AGREEMENT

 This MAKE WHOLE AGREEMENT (the “Agreement”) by and among INFINITE CONFERENCING PARTNERS, LLC, a Florida limited liability company (the “Company”), INFINITE CONFERENCING, INC., a Florida corporation (the “ICI”), and Onstream Media Corporation, a Florida corporation (“Parent”) is entered into this 28th day of February, 2015 (the “Effective Date”).  
 RECITALS
 WHEREAS, pursuant to that certain bill of sale, executed by ICI and the Company dated of even date herewith (the “Bill of Sale”), ICI sold certain customer accounts (the “Customer Accounts”) to the Company; and
 WHEREAS, to incentivize the Company to purchase the Customer Accounts, ICI and Parent desire to provide assurances to the Company that the annual revenue received from the Customer Accounts shall not be less than $1,250,000 (the “Baseline Revenue”) and to agree to make whole any Shortfall (as hereinafter defined) in the event the Customer Accounts fail to generate eighty percent (80%) of the Baseline Revenue.  The “Shortfall” shall be the difference between the actual uncontested bona fide revenue generated by the Customer Accounts and the Baseline Revenue. 
 NOW, THEREFORE, in consideration of the mutual covenants herein contained and the foregoing recitals, which are hereby made part of this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company, ICI and Parent hereby agree as follows:
 1.
 Baseline Revenue.  ICI and Parent hereby represent that the Customer Accounts are expected to generate annual revenue of approximately $1,250,000, based on past performance.  
 2.
 Quarterly Calculation of Baseline Revenue.  The revenue generated by the Customer Accounts shall be calculated on a quarterly basis to determine if the Baseline Revenue is satisfied (each calculation, a “Quarterly Calculation”).  ICI shall provide a certificate (the “Certificate”) to the Company in the form of Schedule 1 attached hereto within thirty (30) days of the end of each calendar quarter with respect to such calendar quarter. 
 3.
 Make Whole.  After each Quarterly Calculation (determined by multiplying the revenue of said quarter by four (4)), if the annualized uncontested bona fide revenue  from the Customer Accounts is less than eighty percent (80%) of the Baseline Revenue, ICI and Parent hereby agree to (i) transfer cash to the extent due on a quarterly basis (due within five (5) days after the date by which the Certificate is due) to the Company in an amount equal to the Shortfall (which cash shall be considered to be revenue from the Customer Accounts for purposes of this Agreement and related agreements between the parties hereto), or (ii) transfer additional customer accounts to the Company (which transferred accounts shall then be included in Customer Accounts) provided such transferred customer accounts are expected to generate an annual revenue equal to or greater than the Shortfall.  
 
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 4.
 Obligation to Continue Distributions.  In the event that there is any impediment, which directly or indirectly is caused by, or relates in any way to ICI or Parent (including Bankruptcy), which would prevent more than 20% of the revenue from the Customer Accounts being earned or distributed, ICI and Parent hereby agree to take all necessary steps to ensure that such impeded revenue or revenue shortfall is otherwise earned or distributed or shall pay the amount of such impeded revenue or revenue shortfall to the Company to the extent due on a quarterly basis (within five (5)  days of that date by which the Certificate is to be provided). For purposes of this Agreement, “Bankruptcy” means the filing under Title 11 of the United States Code, as amended (which in the case of an involuntary petition, is not dismissed or stayed within 60 days of the filing of such petition).
 5.
 Term.  This Agreement shall remain in full force and effect for such time as the Management Services Agreement between ICI and the Company dated as of even date herewith (the “Management Services Agreement”)  is in full force and effect (the “Term”).  Thereafter, ICI and Parent shall have no obligation to make the Company whole in the event that eighty percent (80%) of Baseline Revenue is not met, but shall remain liable for all shortfalls arising prior to the effective date of termination of this Agreement. 
 6.
 Joint and Several Liability.  ICI and Parent shall be joint and severally liable for all obligations due under this Agreement.
 7.
 Amendments.  Neither this instrument nor any term hereof may be changed, waived, discharged or terminated orally, but only by an instrument in writing signed by the party against which enforcement of the change, waiver, discharge or termination is sought.
 8.
 No Waiver.  No delay or failure by the Company to exercise any right, power or privilege under this Agreement shall operate as a waiver of any such privilege, power or right.
 9.
 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 law principles.  
 10.
 Counterparts.  This Agreement may be executed in one or more counterparts, each of which taken together shall constitute one and the same instrument.
 11.
 Section Headings.  The Section Headings used in this Agreement are intended solely for convenience of reference and shall not in any manner amplify, limit, modify or otherwise be used in the interpretation of any of the provisions hereof.
 12.
 Notice.  All notices, demands, and communications required or permitted under this Agreement will be in writing and will be effective if served upon such other party and such other party’s copied persons as specified below to the address set forth for it below (or to such other address as such party will have specified by notice to each other party) if (i) delivered personally, (ii) sent and received by facsimile or (iii) sent by certified or registered mail or by Federal Express, DHL, UPS or any other comparably reputable overnight courier service, postage prepaid, to the appropriate address as follows:
 

 

 
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 If to Company:
 Infinite Conferencing Partners LLC
 3091 Ira Road
 Bellmore, NY 11710
 Attention:  Jeffrey Miller
 Telephone: 516-375-9750
  
 If to ICI:
 Infinite Conferencing Inc.
 100 Morris Avenue – Suite 302
 Springfield, NJ  07081
 Attention:  Randy S. Selman
 Telephone:  954-917-6655
 Facsimile:  954-917-0575
 If to Parent:
 Onstream Media Corporation
 1291 SW 29 Avenue
 Pompano Beach, FL  33069
 Attention:  Randy S. Selman
 Telephone:  954-917-6655
 Facsimile:  954-917-0575
 Unless otherwise specified herein, such notices or other communications will be deemed effective, (a) on the date received, if personally delivered or sent by facsimile during normal business hours, (b) on the business day after being received if sent by facsimile other than during normal business hours, (c) one business day after being sent by Federal Express, DHL or UPS or other comparably reputable delivery service and (d) five business days after being sent by registered or certified mail.  Each of the parties hereto will be entitled to specify a different address by giving notice as aforesaid to each of the other parties hereto.
 
 13.
 Prevailing Attorneys’ Fees.  If any of the Company, ICI or the Parent take any action to enforce the terms hereof or to declare rights hereunder, the prevailing party (or parties) in any such dispute or action shall be entitled to such party’s (or parties’) court costs and actual attorneys’ fees and costs, whether incurred before, at trial or on appeal or in any bankruptcy or other proceeding (including court order mediation or binding arbitration, if agreed to), to be paid by the non-prevailing party (or parties).
 

  [Signature page follows.]
 
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 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year above written. 
 

 INFINITE CONFERENCING PARTNERS, LLC
 

 By: /s/ Jeffrey Miller
 Name: Jeffrey Miller
 Title:  Managing Partner
 

 

 INFINITE CONFERENCING, INC.
 

 By: /s/ Randy S. Selman
 Name: Randy S. Selman
 Title: Chief Executive Officer
 

 

 ONSTREAM MEDIA CORPORATION
 

 By: /s/ Randy S. Selman
 Name: Randy S. Selman
 Title: President
 

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 SCHEDULE 1
 

 

 To: INFINITE CONFERENCING PARTNERS, LLC
 

 

 Infinite Conferencing, Inc. hereby certifies that the bona fide revenues generated by Infinite Conferencing Partners, LLC Customer Accounts during the calendar quarter ending ____________ are $_________. 
 

 

 INFINITE CONFERENCING, INC.
 

 Signed By: __________________________
 

 Print Name: ________________________
 

 Title: _________________________
 

 Date: _________________________
 

 

 - 5 -Exhibit 10.3

 Exhibit 10.3
 

 MEMBERSHIP INTEREST OPTION AGREEMENT
 THIS MEMBERSHIP INTEREST OPTION AGREEMENT (the “Agreement”) is made and entered into this 28th day of February, 2015 (the “Effective Date”), by and among Infinite Conferencing Inc. (“Optionee”), and Infinite Conferencing Partners, LLC (“Optionor”) 
 R E C I T A L S
 A.
 Optionee desires to be granted from Optionor, and Optionor desires to grant to Optionee, an option to acquire all of the membership interests in the Optionor (the “Membership Interests”) for the price and upon the terms and conditions set forth herein. Capitalized terms used herein but not defined herein are defined in accordance with the Sale Agreement entered contemporaneously herewith between Optionor and Optionee.
 NOW, THEREFORE, in consideration of the mutual promises and representations set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
 1.
 Recitals.  The recitals set forth above in Paragraph A are true and correct and are hereby incorporated herein.
 2.
 Options.
 (a)
 Grant of Option.  Optionor hereby grants an irrevocable option during the Option Term, as defined below, (the “Option”) to Optionee to purchase from Optionor all the Membership Interests, which can be exercised as set forth below.  The Optionee shall not have the right to exercise the Option for less than all of the outstanding Membership Interests.
 (b)
 Exercise of Option.  Optionee shall have the right to exercise the Option to purchase the Membership Interests at any time beginning on the Effective Date and ending on the date that is two (2) years from the Effective Date (the “Option Term”) by sending an option notice, as described below, to Optionor hereunder (the date of such option notice shall be referred to herein as the  “Exercise Date”).
 (c)
 Option Notice.  In the event that Optionee desires to exercise the Option, Optionee shall send written notice to Optionor that Optionee is exercising the Option to purchase the Membership Interests hereunder.  Optionor shall send notice to its members within fifteen (15) days of receipt of such notice. 
 (d)
 Closing.  The closing of a purchase of the Membership Interests after the timely exercise of an Option hereunder (the “Option Closing”), shall take place at the offices of the Optionor at such time as Optionor and Optionee shall mutually agree, which in no event shall be later than the date that is thirty (30) days following the timely exercise of the Option hereunder.
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 (e)
 Distributions. The Option granted hereby does not prevent or encumber or affect in any respect any distribution by the Optionor to its members of the preferred return (equal to an annual rate of 40% of each Optionor member’s capital contribution to the Company) (the “Preferred Return”) accruing prior to the Option Closing.
 (f)
 Sale of Customer Accounts.  Subject to the Right of First Refusal (as hereinafter defined), Optionor agrees that it shall retain ownership of the customer accounts, attached on Exhibit A hereto (the “Customer Accounts”),  for not less than six (6) months from the Effective Date, provided that a notice of offer shall not be delivered by Optionor to Optionee earlier than six (6) months after the Effective Date. Optionor may sell the Customer Accounts thereafter to a third party (“Third Party”) in a bona fide transaction.  In the event of sale of the Customer Accounts by the Optionor, an amount equal to the Option Price (or lesser sale proceeds), excluding any accounting fees, shall be distributed to the members of the Optionor at the time of such sale, and Optionee shall have no right to prevent such distribution to members of Optionor.  Notwithstanding the foregoing, Optionee shall continue to have an Option on membership interests (to acquire Optionor, including the undistributed sale proceeds in excess of the amount to be distributed as contemplated by this Section 2(f)). 
 (g)
 Encumbering Membership Interests.  During the Option Term, and until the Option Closing in the event of a timely exercise of the Option hereunder, neither Optionor nor its members will (i) encumber any of the assets or membership interests of Optionor to any party, other than Optionee or (ii) incur any liability whatsoever, whether actual or contingent, other than per the terms and provisions of the Operating Agreement and the Management Services Agreement between Optionor and Optionee dated of even date herewith (the “Management Agreement”). 
 (h)
 Liens on Optionor’s Assets.  To accommodate the exercise of the Option by Optionee, Optionor shall not place a lien on the Customer Accounts. 
 3.
 Payment.
 (a)
 Purchase Price.  The purchase price (the “Option Price”) for the Membership Interests to be purchased pursuant to this Agreement shall be equal to the sum of: (i) all of Optionor’s members’ initial capital contributions (which shall not be less than the purchase price for the Customer Accounts); (ii) to the extent not previously paid, the Optionor’s Members’ Preferred Return for the period prior to the Option Closing, but not less than six months; (iii) an amount equal to ten percent (10%) of the Optionor’s Member’s initial capital contribution (which shall increase by two and one-half percent (2.5%) for each quarterly period beginning twelve (12) months after the Effective Date) and (iv) any reasonable costs incurred by Optionor’s designated agent in connection with the exercise of the Option and distributing the proceeds of the Option.  In the event of a sale by Optionor of the Customer Accounts, the Option Price shall be reduced by the proceeds received through such sale distributed to the Optionor’s members (but not below $0).
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 (b)
  Deliveries at Closing.  At the Option Closing, Optionee and Optionor shall deliver to or cause to be delivered the following:
 (i)
 Assignment.  Optionor shall, or shall cause its members to, execute all documents necessary to convey the relevant Membership Interests to Optionee.
 (ii)
 Purchase Price.  Optionee shall deliver to the members of the Optionor immediately prior to the Option Closing, as their interests appear on the books and records of the Optionor, the Option Price in immediately available funds.
 4.
 Right of First Refusal.  Optionor grants to Optionee a right of first refusal on any sale of the Customer Accounts by Optionor (the “Right of First Refusal”).  Optionee shall have a right of first refusal to purchase the Customer Accounts at a purchase price and on those terms and conditions equal to that purchase price and those terms and conditions offered to Optionor by a third party in an arm’s length transaction (“Third Party Offer”).  Optionor shall give written notice to Optionee of a bona fide Third Party Offer.  Such notice shall detail the purchase price and other material terms and conditions.  Optionee shall have one hundred and twenty (120) days from the date of such written notice to exercise its Right of First Refusal or the Option (and retain the Customer Accounts).  For the avoidance of doubt, the Optionee shall have the right to exercise the Option during such 120 day period in accordance with the terms of this Agreement.   
 5.
 Representations and Covenants.
 (a)
 Optionee’s Representations.
 (i)
 Optionee hereby represents and warrants that (i) it is an entity which is duly organized, validly existing and, in good standing under applicable laws, and (ii) Optionee’s execution, delivery and performance of this Agreement has been duly authorized and does not violate Optionee’s articles of organization (or other governing documents), or any applicable law or regulations.  
 (ii)
 Optionee hereby represents and warrants to Optionor that Optionee has not dealt with any broker or finder in connection with this Agreement or the transactions contemplated hereunder.
 (iii)
 Optionee hereby represents and warrants to the Optionor that Optionee has such knowledge and experience in financial and business matters in general, and in particular, those related to the Optionor, that Optionee is capable of valuing the merits and risks of investment in the Optionor through the transfer of the Membership Interests.
 
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 (iv)
 Optionee acknowledges and understands that the Membership Interests has not been registered under the Securities Act or the securities laws of any state and that the Membership Interests is to be acquired pursuant to an investment representation on the part of Optionee and should not be sold, pledged, hypothe­cated, donated or otherwise transferred by Optionee whether or not for consideration and that the Optionor will not permit the transfer of the Membership Interests without registration or upon issuance to the Optionor of a favorable opinion of counsel reasonably satisfactory to the Optionor to the affect that any such transfer shall not be in violation of the registration requirements of the Securities Act and any applicable state securities laws.
 (v)
 Optionee acknowledges that there are both tax and non-tax risks associated with the Membership Interests and that Optionee will be required to report and pay taxes on Optionee’s allocable share of any of the Optionor’s profits, even if the Optionor does not make any corresponding distributions of cash to Optionee with respect to such profits, in the event that Optionee becomes a member of the Optionor.
 (b)
 Optionor’s Representations and Covenants.  The Optionor hereby represents, warrants and covenants to Optionee as follows:
 (i)
 Optionor hereby represents and warrants that (i) it is an entity which is duly organized, validly existing and, in good standing under applicable laws, and (ii) Optionor’s execution, delivery and performance of this Agreement has been duly authorized and does not violate Optionor’s articles of incorporation (or other governing documents), or any applicable law or regulations.  
 (ii)
 All of the Membership Interests in the Optionor to be purchased by Optionee, pursuant to the Option, is or shall be duly authorized and the Membership Interests and/or Customer Accounts shall be transferred free and clear of all liens, claims, encumbrances, charges, restrictions and assessments of any kind.  Any violation of this provision shall be determined on a Membership Interest by Membership Interest basis assertable solely against the member of the Optionor whose interests are affected. 
 (iii)
 Optionor has not dealt with any broker or finder in connection with this Agreement or the transactions contemplated hereunder.
 6.
 Death of Optionor Members.  The death of any member of the Optionor shall not terminate the rights and obligations hereunder and all rights and obligations of Optionor and Optionee shall survive the death of such party hereto and such successors, heirs and/or assigns shall be obligated to perform all obligations of such party hereunder.
 7.
 Termination Upon Bankruptcy.  Optionor shall have a right to terminate this Agreement in the event of Optionee’s Bankruptcy or dissolution.  Such termination shall be effective immediately upon Optionor’s notice to Optionee.  For purposes of this Agreement, “Bankruptcy” means the filing under Title 11 of the United States Code, as amended (which in the case of an involuntary petition, is not dismissed or stayed within 60 days of the filing of such petition).
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 8.
 Specific Performance.  The parties hereby acknowledge and agree that the Membership Interests cannot be readily purchased or sold on the open market and for that reason, among others, the parties hereto will be irreparably damaged in the event this Agreement is not specifically enforced.  Should any dispute arise concerning the sale, encumbrance or other disposition of the Membership Interests, an injunction may be issued restraining any such sale, encumbrance or other disposition pending the resolution of such controversy.  In the event of any controversy concerning the right or obligation to purchase or sell any interest in the Optionor, such right or obligation shall be enforced in a court of equity by degree of specific performance.  Such remedies shall however be cumulative and not exclusive, and shall be in addition to any other remedies of the parties hereto.  If any person or entity shall institute any action or proceeding to enforce the provisions hereof, the person or entity against whom such action or proceeding is brought hereby waives the claim or defense that the person or entity instituting such action has an adequate remedy at law, and shall not urge in any such action or proceeding that a claim or remedy at law exists.  Optionee shall have the right to file UCC-1 financing statements to reflect its interest in the Membership Interests hereunder.
 9.
 Notices.  All notices, requests, demands and other communications hereunder shall be in writing and personally delivered or sent by registered or certified mail, return receipt requested, postage prepaid, to the following addresses:
 

 If to Optionor:
 Infinite Conferencing Partners LLC
 3091 Ira Road     
 Bellmore, NY 11710
 

 If to Optionee:
 Infinite Conferencing Inc.
 100 Morris Avenue – Suite 302
 Springfield, NJ 07081
 

 Provided, however, that any party hereto may, from time to time, give to the other party written notice, in the manner provided for herein, of some other address to which com­muni­cations to such party shall be sent, in which event notices to such party shall be personally delivered or sent by registered or certified mail, return receipt requested, postage prepaid, to such address.  Notice shall be deemed effectively given hereunder when personally delivered or deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, as the case may be.
 10.
 Attorneys’ Fees.  In the event any action at law or in equity or other proceeding is brought to interpret or enforce this Agreement, the Optionee shall pay all costs and expenses incurred in such action, including, but not limited to, court costs, and reasonable attorneys’ fees, paralegal fees, law clerk fees and other legal costs and expenses, whether incurred at or before the trial level, or in any appellate, bankruptcy or other legal proceeding.
 11.
 Binding Effect; Assignment.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective personal representatives, heirs, beneficiaries, successors and permitted assigns.  No party to this Agreement may assign such party’s rights or obligations hereunder without the prior written consent of the other party.
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 12.
 Complete Agreement.  This Agreement constitutes the complete agreement between the parties hereto with respect to the subject matter hereof, and supercedes any prior written or oral agreements between the parties with respect to the subject matter hereof.
 13.
 Governing Law; Venue.  This Agreement shall be governed by and construed in accordance with the laws of the State of Florida.  In the event of any legal or equitable action arising under this Agreement, the venue of such action shall lie exclusively within either the state courts of Florida located in Broward County, Florida, or the United States District Court for the Southern District of Florida, and the parties hereto do hereby specifically waive any other jurisdiction and venue.
 14.
 Further Actions.  Each party to this Agreement shall take such further actions to execute, file, record, publish and deliver such additional certificates, instruments, agreements and other documents that the other party may from time to time reasonably request in order to effectuate the transfer and sale of the Membership Interests to be transferred and sold pursuant hereto, or otherwise to accomplish the purposes of this Agreement.
 15.
 Waiver.  No waiver of any breach of any term or condition of this Agreement shall be deemed to be a waiver of any subsequent breach of any term or condition of a like or different nature.
 16.
 Captions.  The captions used herein are inserted only as a matter of convenience and are not to be used in the interpretation of any provision hereof.
 17.
 Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which shall be deemed to constitute one and the same agreement.
 
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 IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date and year first above written.
 

 	 	
	  
	 “OPTIONEE”
  

	  
	 INFINITE CONFERENCING, INC.
 

 By: /s/ Randy S. Selman
 Name: Randy S. Selman
 Title: Chief Executive Officer

	  
	  

 

 

 

 	 	
	 

	  

	  
	 “OPTIONOR”
  

	  
	 INFINITE CONFERENCING PARTNERS, LLC
 

 By: /s/ Jeffrey Miller
 Name: Jeffrey Miller
 Title: Managing Partner

 

 

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 Exhibit A
 

 Customer Accounts
 

 

 [Confidential information redacted]
 

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