Document:

Exhibit 10.4

Exhibit 10.4

  
    

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  EXECUTIVE AGREEMENT

    

    

  THIS AGREEMENT made the 15th day of March, 2010.

  BETWEEN:

  KGIC Language College ( 2010 ) Corp., a British Columbia Company having a registered records office at 2700-700 West Georgia Street, Vancouver, British Columbia, V7Y 1B8

  (“KGIC Language ”)

  AND:

  KGIC Business College (2010) Corp., a British Columbia Company having a registered records office at 2700-700 West Georgia Street, Vancouver, British Columbia, V7Y 1B8

  (“KGIC Business ”)

  AND:

  Steve Sohn with a place of residence at 15724 - 102B Ave. Surrey, BC     

  (the “Executive”)

  WHEREAS:

  A.      KGIC Language and KGIC Business (hereinafter collectively referred to as the “Company”) are in the business of providing educational services; and

  B.      The Company wishes to employ the Executive and the Executive has agreed to such        employment on the terms and conditions herein set forth.  

    

    NOW THEREFORE, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Executive agree as follows:

    

    

    

  
    

  

  
    

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  1.                   EMPLOYMENT

  1.1                Position and Term.  The Company agrees to employ the Executive and the Executive agrees to serve the Company as Executive Vice President of the Company.  The term of the Executive’s employment is indefinite, but the employment relationship under this Agreement may be terminated by either party as provided herein. The Executive’s start date for all purposes relating to his employment with the Company shall be deemed to be March 7, 2010. The Executive acknowledges and agrees that he is a fiduciary of the Company.

  1.2                Duties.  During the Executive’s employment, the Executive agrees to perform such duties as may be assigned to him from time to time by the Company’s representative (the “Company’s Representative”) which initially shall be President of the Sprott-Shaw Degree College.  The Company may change the Company’s Representative from time to time, at its option.

  1.3                Authority.  During the Executive’s employment, he will be involved in decision-making for the human resources decisions in consultation with the Company’s Representative.  

  1.4                Review of Company audit report.  Full access is permitted for the Executive to any and all accounting documents or audit report of the Company. 

  1.5                The Executive will devote a majority of his full professional time, ability and attention to the business and affairs of the Company. In doing so, he shall, at all times, discharge his responsibilities and duties hereunder honestly, faithfully and diligently serving the best interests of the Company. In exercising such powers and performing such duties, the Executive shall have responsibility for completing all tasks normally expected of a Vice President employed by a privately-held company.

  1.6                The Executive shall not undertake any other business or occupation, or become a director, officer, employee or agent of any other corporation or firm without the prior written consent of the Board.  The Company’s consent herein shall not permit any appropriation or diversion by the Executive of any business opportunity coming to the Executive in the Executive’s capacity as an Executive of the Company or otherwise in the course of the Company’s business.

  1.7                When discharging his duties and responsibilities, the Executive will comply with all applicable laws.

  1.8                Business Opportunities.  The Executive agrees to communicate at once to the Company all material business opportunities which come to the Executive in the course of the Executive’s employment or otherwise and to deliver to and assign ownership to the Company of all inventions and improvements in the nature of the business of the Company which, in the course of the Company’s business, the Executive may conceive, make or discover, become aware directly or indirectly or have presented to the Executive and such business opportunities, inventions, and improvements shall become the exclusive property of the Company without any obligation on the part of the Company to make any payment for the same.

  
     

  

  
    

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  1.9                Reporting.  The Executive shall report to and be directly responsible to the Company’s Representative.

  2.                   COMPENSATION

  2.1                Salary.  The Company will pay the Executive an annual salary of $102,000 (CAD) less applicable deductions, payable in bi-weekly instalments.  For the purposes of this Agreement, “Salary” means the remuneration described in this section (subject to adjustment under sub-section 2.2 below), and does not include any other payments such as bonuses, benefits, or amounts of a similar nature.

  2.2                Review.  The Company will review the Salary annually and will make any adjustments it determines are reasonable in the sole discretion of the Company, which shall take into account, but shall not be limited to considering, the Executive’s performance, the financial and operating success of the Company in the preceding 12 months and salaries for comparable positions in the marketplace.

  2.3                Benefits.  The Executive shall be entitled to participate in all executive benefit programs offered to the Company’s executives from time to time (the “Benefits”), including, without limiting the generality of the foregoing, those set out in Schedule “B” hereto, in accordance with and on the terms and conditions generally provided from time to time by the Company.  The Executive agrees that the Company may substitute or modify the terms of the Benefits on comparable terms and conditions without notice, provided that no material substitution or modification of benefits made within 12 months after a Change of Control of the Company (defined below) shall be binding on the Executive without the Executive’s consent.  All insured benefits shall be governed by the terms of the policies in force.

  2.4                Bonus.  A complete copy of the bonus plan (the “Bonus Plan”) is set out in Schedule “C” hereto. 

  2.5                Vacation.  The Executive shall be immediately entitled to 4 weeks’ paid vacation each calendar year, at such time or times as shall be agreed between the Executive and the Company.  Unused vacation may not be carried over to a subsequent year.

  2.6                Expenses.  The Executive shall be reimbursed by the Company for all reasonable expenses necessarily and properly incurred by the Executive in the discharge of his duties for the Company.  The Executive agrees that such reimbursements shall be due only after the Executive has rendered an itemized expense account to the President of the Company showing all monies actually expended on behalf of the Company and such other information as may be required and requested by the Company.

  3.                   Confidentiality

  3.1                Confidentiality.  Except in the normal and proper course of the Executive’s duties hereunder, or unless ordered by a court of competent jurisdiction, the Executive will not use for the Executive’s own account or disclose to anyone else, during or after his employment with the Company, any confidential or proprietary information or material relating to the Company’s or its subsidiaries’ operations or business which the Executive has access to by virtue of his position with the Company or obtains from the Company, its subsidiaries or their respective officers or employees, agents, suppliers or customers or otherwise by virtue of the Executive’s employment by the Company or by the Company’s predecessors or that the Executive received from the Company on a confidential basis prior to his employment with the Company. The Executive acknowledges and agrees that the Company has all rights, titles and interests in and to the Confidential Information. The Executive will use his best efforts to protect and maintain the confidentiality of the Confidential Information.

  
     

  

  
    

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  3.2                Confidential Information includes, without limitation, the following types of information or material, in whatever form, regarding the Company or its subsidiaries:

  (a)                 corporate information, including, plans, proprietary information or material, strategies, plans, tactics, policies, resolutions, patent, trade-mark and trade name applications, and any litigation or negotiations; information concerning employees, suppliers, contractors, investment plans, marketing and business strategies, methods, and prospects;

  (b)                 financial information, including cost and performance data, profits, revenue, debts, liabilities, claims, capital structure, investors and holdings;

  (c)                 operational information, including start numbers, student populations, inquiry counts, litigation;

  (d)                 personnel information, including personnel lists, resumes, personnel data, organizational structure and performance evaluations (the “Confidential Information”).

  3.3                However, it is understood and agreed that Confidential Information will not include information which (i) is or becomes generally known by or available to the public other than as a result of the disclosure and violation of this Agreement by the Executive or anyone for whom he is responsible in law, or (ii) is or becomes known by or available to the Executive from a source other than the Company.

  3.4                Return of Documents.  The Executive agrees that all documents (including, without limitation, software and information in machine-readable form) of any nature pertaining to activities of the Company or to its affiliated, related, associated or subsidiary companies, including, without limitation, Confidential Information, in the Executive’s possession now or at any time during the Executive’s employment, are and shall be the property of the Company or its affiliated, related, associated or subsidiary companies, and that all such documents and all copies of them shall be surrendered to the Company upon the termination of the Executive’s employment for any reason, or otherwise as requested by the Company.

  4.                   non-competition

  4.1                During the Executive’s employment with the Company and the period of 18 months from the effective date of the cessation of the Executive’s employment with the Company, howsoever caused, the Executive will, prior to accepting employment or another engagement to provide services to a person or entity:

  (a)                 inform that employer (or other person or entity) of the existence of this Agreement and provide a copy to that employer (or other person or entity); and

  
     

  

  
    

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  (b)                 provide written assurance satisfactory to the Company from both the Executive and his new employer (or other person or entity) confirming the Executive’s duties.

  4.2                During the Executive’s employment with the Company and for the period of 18 months from the effective date of the cessation of the Executive’s employment with the Company, for termination with cause or resignation, the Executive will not for any reason, directly or indirectly, either as an individual, partner, joint venture, principal, agent, consultant, contractor, employee, or in any other capacity be engaged, be interested, be employed, work, consult, invest (excluding a 3% or less interest in any publicly traded company) advise, assist in working with an agent (to recruit students) with which the Company engaged at the time of termination of the Executive’s employment or to set up a business, product, service, or other matter which is the same as, or in competition with the Company, within a 50 mile radius of any school which the Company has in the following countries: Canada, China, Korea, Mexico, Philippines, Hong Kong, Jordan or any other country in which the Company has a school.

  5.                   non-solicitation / NON-INTERFERENCE

  5.1                During the Executive’s employment and for a period of 18 months from the effective date of the cessation of the Executive’s employment with the Company, howsoever caused, the Executive will not, directly or indirectly, either for the Executive or any other person or entity:

  (a)                 induce or attempt to induce any employee or contractor of the Company to leave, or terminate their services with, the Company; 

  (b)                 solicit or induce any of the Company’s clients, students, agents, affiliates, joint venture members, or representatives with whom the Contractor previously had any dealings on behalf of the Company or any of its predecessors, to transfer their business from the Company to any other person or entity, or

  (c)                 in any way interfere with the relationships between the Company and any employee, student, supplier, joint-venture member, affiliate, contractor, or representative of the Company.

  6.                   ACKNOWLEDGEMENT AND INJUNCTIVE RELIEF

  6.1                Acknowledgement and Injunctive Relief.  The Executive acknowledges that, in connection with the Executive’s employment by the Company, the Executive will receive or will become eligible to receive substantial benefits and compensation. The Executive acknowledges that the Executive’s employment by the Company and all compensation and benefits and potential compensation and benefits to the Executive from such employment will be conferred by the Company upon the Executive only because and on condition of the Executive’s willingness to commit the Executive’s best efforts and loyalty to the Company, including protecting the Company’s right to have its and its subsidiaries’ Confidential Information protected from non-disclosure by the Executive and abiding by the confidentiality, non-solicitation, non-competition and other provisions herein. The Executive understands the Executive’s duties and obligations as set forth in this Agreement and agrees that such duties and obligations would not unduly restrict or curtail the Executive’s legitimate efforts to earn a livelihood following any termination of the Executive’s employment with the Company. The Executive agrees that the restrictions contained in sections 3, 4, and 5 are reasonable and valid. The Executive further acknowledges that irreparable damage may result to the Company or its subsidiaries if the provisions of sections 3, 4, and 5 are not specifically enforced, and agrees that the Company shall be entitled to any appropriate legal, equitable, or other remedy, including injunctive relief, in respect of any failure or continuing failure to comply with the provisions of sections 3, 4, and 5. For greater certainty, the terms of sections 3, 4, and 5 shall apply regardless of whether the Executive resigns his employment or whether his employment is terminated with or without cause.

  
     

  

  
    

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  6.2                The obligations, entitlements, restrictions and covenants set out at sections 3, 4, and 5.  this Agreement shall survive the cessation of the Executive’s employment with the Company, howsoever caused.

  7.                   TERMINATION

  7.1                Resignation by the Executive.  The Executive may resign from his employment by providing the Company 8 weeks’ advance written notice, in which event, the Executive shall not be entitled to any Severance payment, but shall be entitled to receive Salary and vacation pay earned to the effective date of resignation and payment of approved reimbursable expenses.

  7.2                Termination Without Cause.  The Company may terminate the Executive’s employment without cause at any time, by providing the Executive with 8 months’ written notice of such termination, or 8 months’ Salary in lieu thereof (at the Company’s discretion). This notice or payment shall constitute the Executive’s entire notice and severance entitlement under all applicable legislation and the common law.  In this regard, the Executive shall have no entitlement to reasonable notice of termination under the common law.

  7.3                Termination for Cause. The Company may at any time terminate the employment of the Executive for just cause. Without limiting the generality of the foregoing, just cause includes but is not limited to:

  (a)                 any act of fraud or material dishonesty;

  (b)                 wilful neglect of duties to a material degree; and

  (c)                 if the conduct of the Executive is determined by the Company, which determination shall be made in a bona fide and reasonable manner, to be detrimental to the business of the Company and if the Executive persists in such conduct after being informed of the Company’s determination.

  In such event, the Executive shall not be entitled to any compensation or notice, but shall be entitled to receive the Salary and vacation pay earned to the date of termination and payment of approved reimbursable expenses. 

  
     

  

  
    

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  7.4                Termination by Death.  The Executive’s employment shall terminate automatically (without notice or pay in lieu thereof) upon the death of the Executive.  In the event that the Executive’s employment is terminated pursuant to this section, the following terms shall apply:

  (a)                 The Company shall, within 60 days of the date of termination, pay to the Executive or the legal representatives of the Executive all amounts owed by the Company to the Executive under the Agreement as of the date of termination of the Executive’s employment;

  (b)                 The Company shall make such payments to the Executive or the legal representative of the Executive, when due, as the Company may otherwise be obligated to make pursuant to any other benefit or other plan or program referred to in Section 2 and/or Schedule B of this Agreement;

  8.                   Acts after Termination of Employment

  8.1                On or before the cessation of the Executive’s employment for whatever reason, the Executive must:

  (a)                 Resign all offices held by him in the Company or any related corporation;

  (b)                 Deliver to the Company all records of Confidential Information in his possession;

  (c)                 Permanently erase all records of Confidential Information from his electronic organiser and all other electronic storage devices owned by the Executive;

  (d)                 If a car owned or leased by the Company is being utilized by the Executive, return the car and its keys to the Company at a place designated by the Company unless the car is then purchased or leased by the Executive; and

  (e)                 Deliver to the Company all other property of the Company including business cards, credit cards and charge cards issued to the Executive by or on behalf of the Company;

  8.2                The Company is not liable for any loss of personal data stored in a personal organiser or other electronic storage device which occurs in any way during the permanent erasure of Confidential Information.

  9.                   SUCCESSORS OR ASSIGNS

  9.1                Successors.  This Agreement shall ensure to the benefit of and be binding upon and shall be enforceable by the Company and the successors and assigns of the Company.  

  9.2                Assignment.  The Company shall be entitled to assign this agreement without the Executive’s consent to any affiliate of the Company (as defined in the B.C. Business Corporations Act) on written notice to the Executive, provided there is no material change to the Executive’s terms of employment.    The Executive shall not be entitled to assign, pledge or grant a security interest in any obligation of the Company to make payment hereunder.

  
     

  

  
    

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  10.                MISCELLANEOUS

  10.1            Applicable Laws.  This Agreement and the employment of the Executive shall be governed, interpreted, construed and enforced according to the laws of the Province of British Columbia and the laws of Canada applicable therein.  The parties hereby irrevocably attorn to the jurisdiction of the courts of the province of British Columbia.

  10.2            Time.  Time shall be of the essence of this Agreement.

  10.3            Consideration.  The parties acknowledge and agree that this Agreement has been executed by each of them in consideration of the mutual premises and covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged. The parties waive any and all defenses relating to an alleged failure or lack of consideration in connection with this Agreement.

  10.4            Severability.  If any portion of this Agreement is deemed by a court of competent jurisdiction to be unenforceable, or if enforced only to the extent deemed reasonable by such court, the remaining portions of this Agreement shall continue in full force and effect.

  10.5            Entire Agreement.  This Agreement represents the entire Agreement between the Executive and the Company concerning the subject matter hereof and supersedes any previous oral or written communications, representations, understandings or agreements with the Company or any officer or agent thereof.  This Agreement may only be amended or modified in writing signed by both parties.

  10.6            Notices.  Any notice, acceptance or other document required or permitted hereunder shall be considered and deemed to have been duly given if delivered by hand or mailed by postage prepaid and addressed to the party for whom it is intended at the party’s address above or to such other address as the party may specify in writing to the other and shall be deemed to have been received if delivered, on the date of delivery, and if mailed as aforesaid, then on the second business day following the date of mailing thereof, provided that if there shall be at the time of mailing or within two business days thereof a strike, slowdown or other labour dispute which might affect delivery of notice by the mails, then the notice shall only be effective if actually delivered.

  10.7            Waiver.  The waiver by the Executive or by the Company of a breach of any provision of this Agreement by the Company or by the Executive shall not operate or be construed as a waiver of any subsequent breach by the Company or by the Executive.

  
     

  

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    IN WITNESS WHEREOF the parties have executed this Agreement on this 15th day of March, 2010.

    
      				
	The Corporate Seal of KGIC Language College ( 2010 ) 		) 	 
	Corp. was hereunto affixed in the presence of: 		) 	 
	 		) 	 
	 		) 	 
	“Signed”		) 	C/S 
	Authorized Signatory 		) 	 
	 		) 	 
	 		) 	 
				
				
	Authorized Signatory 		 	 
				
	The Corporate Seal of KGIC Business College ( 2010 ) 		) 	 
	Corp. was hereunto affixed in the presence of: 		) 	 
	 		) 	 
	 		) 	 
	“Signed”		) 	 
	Authorized Signatory 		) 	C/S 
	 		) 	 
	 		) 	 
	 		) 	 
				
	Authorized Signatory 		 	 
				
	 		) 	 
	 		) 	 
	 		) 	 
	 		) 	 
			   	/s/ J.U. (John) Park
	 		) 	Signature of Witness 
	 		) 	 
	 		)	J.U. (JOHN) PARK 
	 		) 	Name of Witness
	 		) 	BARRISTER & SOLICITOR
	 		) 	LINDSAY KENNEY LLP
	 		) 	#1800 - 401 WEST GEORGIA STREET
	 		 	VANCOUVER, BC V6B 5A1
			 	TEL: 604-687-1323
	/s/ Steve Sohn		 	 
	 Steve Sohn		 	 
	 		 	 

    

    
       

    

  

  

  

  

  
    

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  Schedule “A”

  The following non-exhaustive list of duties, highlights, but does not limit, Executive Duties and Responsibilities performed by the  ♦ :

 ♦  Job Description to be attached

   

  
    

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  Schedule “B”

   

  During the Executive’s employment, the Company shall provide the following benefits to the Executive:

    ♦

  ·         Monthly car allowance - The amount of this allowance will be a maximum of the existing monthly payment based on the Executive’s current leased vehicle, up to the end of the current lease. Upon the expiry of the current lease, the maximum monthly car allowance will be $800 per month. This amount is inclusive of insurance, maintenance, fuel and other items;

  ·         Premiums for extended medical coverage;

  ·         Economy class airfare for domestic air travel and flights to and from the United States.  Business class airfare for all other international flights and North American flights over 7 hours in duration.

  
     

  

  
    

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  SCHEDULE “B”

  The Company’s Incentive and Bonus Plan shall consist of the following:

  ·         Performance based Incentive Plan

  o    Target Revenue

  o    Target EBITDA

  o    Surpassing the Targets

  ·         Performance based Bonus PlanExhibit 10.29

Exhibit 10.29

 

AGREEMENT AND PLAN OF REORGANIZATION

This Agreement And Plan Of Reorganization (this “Agreement”) dated as of December 10, 2007 by and among CIBT Education Group Inc., a corporation governed by the laws of the Province of British Columbia (“CAG”), CIBT School of Business & Technology Corp., a corporation governed by the laws of the Province of British Columbia and subsidiary of CAG (“CIBT”) and Shane Corporation S.à.r.l., a private limited liability company (société à responsabilité limitée) under the laws of the Grand-Duchy of Luxembourg (“Shane”).

W I T N E S S E T H:

WHEREAS, the respective Board of Directors of CAG and CIBT have determined it is in the best interests of CAG and its stockholders and CIBT to effect a reorganization through the transactions and other actions contemplated by this Agreement (the “Reorganization”) in order to increase CAG’s ownership of CIBT and to focus CAG on the education sector in China and North America;

WHEREAS, Shane has agreed to participate in such Reorganization pursuant to this Agreement;

WHEREAS, in connection with the Reorganization, Shane, which holds a debenture in an original aggregate principal amount of $5,000,000 (the “Debenture”) and a warrant to acquire up to 5,361,667 common shares of CIBT (the “Warrants”), shall exercise the Warrants and pay the exercise price of the Warrants by surrendering the Debenture for cancellation to CIBT (the “Recapitalization”);

WHEREAS, in connection with the Reorganization and following the Recapitalization, Shane and CAG shall exchange the 5,361,667 common shares of CIBT held by Shane (the “CIBT Shares”) for 10,000,000 newly-issued common shares (the “New Shares”) of CAG (the “Exchange”);

WHEREAS, in connection with the Reorganization, CAG also shall exchange a warrant to acquire up to 268,083 common shares of CIBT held by BMO Capital Markets Inc. ("BMO") for a warrant to acquire up to 256,000 common shares of CAG at an exercise price of $0.93 per share (the “BMO Transaction”); and

WHEREAS, CAG, CIBT and Shane are parties to certain agreements which will be amended or terminated in connection with the Reorganization (the “Existing Documents”), which agreements are listed on Schedule A attached hereto.

NOW, THEREFORE, in consideration of the promises and the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

SECTION I

RECAPITALIZATION

1.1 Payment of Exercise Price. Subject to the terms and conditions of this Agreement and on the basis of the representations, warranties, covenants and agreements herein contained, Shane agrees to surrender the Debenture to CIBT for cancellation as payment in full of the aggregate exercise price of the Warrants. CAG agrees to accept the Debenture as such payment in full.

1.2 Payment of Accrued Interest. Notwithstanding the surrender of the Debenture under Section 1.1 above, CIBT shall pay to Shane an amount equal to the interest accrued but unpaid on the Debenture through the Closing Date. Such payment shall be made by wire transfer of immediately available funds within five business days of the surrender of the Debenture in accordance with the terms hereof.

1.3 Issuance of CIBT Shares. Upon surrender of the Debenture pursuant to Section 1.1 above and surrender of the Warrants to CIBT, the Warrants shall be deemed exercised in accordance with the terms thereof and CIBT shall issue to Shane the CIBT Shares, which shares shall be fully paid and non-assessable and free and clear of any claim, lien, pledge, restriction (other than restrictions under BC Securities Laws and the policies of the TSX Venture Exchange) or option (“Encumbrance”). “BC Securities Laws” means the Securities Act (British Columbia), and the rules and regulations promulgated thereunder, as amended, as well as all applicable rules, policy statements, notices, blanket rulings, instruments and orders issued by the British Columbia Securities Commission.

SECTION II

EXCHANGE

2.1 Share Exchange. Subject to the terms and conditions of this Agreement and on the basis of the representations, warranties, covenants and agreements herein contained, CAG agrees to issue and convey to Shane, and Shane agrees to acquire and accept from CAG, the New Shares in exchange for the CIBT Shares held by Shane.

2.2 CAG Forfeiture Right. In the event that CAG’s common shares remain listed on the American Stock Exchange, Toronto Stock Exchange or TSX Venture Exchange and the daily reported sale prices per share of CAG’s common shares thereon are equal to or greater than USD $3.00 (as appropriately adjusted for any stock split, dividend, combination or other recapitalization effected after the date hereof) for nine consecutive months (the “Forfeiture Condition”) during the two calendar year period beginning on the original date of issuance of the New Shares, then Shane shall forfeit to CAG for no consideration 966,667 common shares of CAG. Such forfeiture will be completed within ten days after written notice by CAG to Shane, which notice shall include reasonable detail and support for the Forfeiture Condition having been satisfied. “Month” means a period calculated from a day in one calendar month to a day numerically corresponding to that day in the following calendar month, less one day; provided that if the calculation of time ends on a day in a calendar month that has no date corresponding to the first day of the period of time, the time shall be deemed to end on the last day of that calendar month.

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SECTION III

THE CLOSING

3.1 Time and Place of the Closing. The closing (the “Closing”) of the Reorganization shall be held at the offices of Maitland & Company, 625 Howe Street, Suite 700, Vancouver, British Columbia (or remotely via the exchange of documents and signatures), at 10:00 A.M., local time, on December 10, 2007 (the “Closing Date”) or at such other time, place and date as the parties shall determine.

3.2 Deliveries and Actions by CAG. On the Closing Date, CAG shall (a) deliver to Shane a stock certificate representing the New Shares, free and clear of any Encumbrances, and (b) deliver to Shane the Voting Agreement (as defined below) and the Registration Rights Agreement by and between CAG and Shane substantially in the form attached hereto as Exhibit A (the "CAG Registration Rights Agreement").

3.3 Delivery of the CIBT Shares. On the Closing Date, Shane shall deliver to CAG, the stock certificate representing the CIBT Shares held by Shane.

3.4 Conditions Precedent to the Closing. The Closing shall be subject to the satisfaction of all of the following conditions:

a) CAG shall have received approval for the transactions contemplated hereby from the TSX Venture Exchange (“TSX Approval”).

b) No provision of any applicable law, rules or regulations shall be in effect which has the effect of making the Reorganization illegal or shall otherwise restrain or prohibit the consummation of the Reorganization.

c) No Material Adverse Change shall have occurred since April 24, 2007. “Material Adverse Change” shall mean, with respect to CAG or CIBT, any materially adverse change in or effect on the business, operations, financial condition, or results of operations of CAG or CIBT, provided, however, that Material Adverse Change shall not include any materially adverse change in or effect on the business or financial condition of CAG or CIBT resulting from general financial and economic conditions and industry trends that do not disproportionately impact CAG or CIBT.

d) CAG shall have taken all necessary actions to appoint two individuals nominated by Shane to CAG’s board of directors effective as of the Closing.

e) Certain of CAG’s stockholders shall have entered into a voting agreement acceptable to Shane and substantially in the form attached as Exhibit B (the "Voting Agreement" and together with this Agreement and the CAG Registration Rights Agreement, the "Transaction Agreements").

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f) Each of the parties hereto shall have complied with their respective obligations under Sections I and II hereof.

g) BMO shall have consented to consummation of the BMO Transaction.

3.5 Abandonment. At any time prior to the Closing, this Agreement may be terminated and the transactions and actions contemplated hereby may be abandoned by Shane without further obligation by any party hereto if the conditions to the Closing have not been met.

SECTION IV

REPRESENTATIONS, WARRANTIES AND COVENANTS OF CAG

CAG represents, warrants and covenants to Shane as follows:

4.1 Organization; Good Standing. CAG is a corporation duly organized, validly existing and in corporate and tax good standing under the laws of the Province of British Columbia.

4.2 Authority. CAG has full corporate power and authority to execute and deliver the Transaction Agreements and to perform its obligations hereunder and thereunder, and except for TSX Approval, no consent or approval of any other Person is required therefor. The execution and delivery of the Transaction Agreements by CAG, the performance by CAG of its agreements hereunder and thereunder and the consummation by CAG of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action. The Transaction Agreements constitute valid and binding obligations of CAG, enforceable against CAG in accordance with their respective terms. “Person” means any individual, partnership, corporation, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization, government or agency or political subdivision thereof, or other entity.

4.3 No Conflicts. Neither the execution and delivery of the Transaction Agreements, nor the consummation of the transactions contemplated hereby and thereby, violates any provision of the certificate of incorporation, articles or resolutions of CAG or any law, statute, ordinance, regulation, order, judgment or decree of any court or governmental agency, or conflicts with or results in any breach of any of the terms of, or constitutes a default under or results in the termination of or the creation of any lien or any other rights pursuant to the terms of any contract or agreement to which CAG is a party or by which CAG or any of its assets is bound. Neither CAG nor CIBT has any current plan or intention to acquire any Remaining Shares (as defined below) other than through the issuance of common shares of CAG as consideration.

4.4 Due Authorization; Capitalization. The New Shares being issued by CAG hereunder have been duly authorized and when issued to Shane in exchange for the CIBT Shares as herein provided, shall be validly issued in accordance with BC Securities Laws, fully paid and nonassessable, and free and clear of any Encumbrances. The New Shares being issued hereunder, as of the Closing Date, represent approximately 16.5% of the issued and outstanding common shares of CAG after giving effect to the BMO Transaction and the Exchange.

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Following the four month holding period required under the policies of the TSX Venture Exchange and BC Securities Laws, the New Shares shall be freely tradeable by Shane.

SECTION V

REPRESENTATIONS, WARRANTIES AND COVENANTS OF CIBT

CIBT represents, warrants and covenants to Shane as follows:

5.1 Organization; Good Standing. CIBT is a corporation duly organized, validly existing and in corporate and tax good standing under the laws of the Province of British Columbia.

5.2 Authority. CIBT has full corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder, and no consent or approval of any other Person is required therefor. The execution and delivery of this Agreement by CIBT, the performance by CIBT of its agreements hereunder and the consummation by CIBT of the transactions contemplated hereby have been duly authorized by all necessary corporate action. This Agreement constitutes a valid and binding obligation of CIBT, enforceable against CIBT in accordance with its terms.

5.3 No Conflicts. Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, violates any provision of the certificate of incorporation or articles or resolutions of CIBT, or any law, statute, ordinance, regulation, order, judgment or decree of any court or governmental agency, or conflicts with or results in any breach of any of the terms of, or constitutes a default under or results in the termination of or the creation of any lien or any other rights pursuant to the terms of any contract or agreement to which CIBT is a party or by which CIBT or any of its assets is bound.

5.4 Due Authorization; Capitalization.

The CIBT Shares being issued by CIBT have been duly authorized and when issued upon exercise of the Warrants as herein provided, shall be validly issued in accordance with BC Securities Laws and shall be fully paid and non-assessable. The capital stock of CIBT, as authorized by the certificate of incorporation, notice of articles or resolutions, as amended, of CIBT, consists of 100,000,000 common shares without par value, of which 19,267,999 common shares are issued and outstanding and held of record, in the aggregate, by CAG and, after giving effect to the Recapitalization, 5,361,667 shares are issued and outstanding and held of record by Shane. Following the BMO Transaction and the Exchange, (a) 5,395,667 common shares of CIBT are outstanding and held by Persons other than CAG ("Remaining Shares"); and (b) there are no outstanding or authorized options, warrants, rights, agreements or commitments to which CAG, CIBT or any of their respective subsidiaries is a party or which are binding on any of them providing for the issuance, disposition or acquisition of any Capital Stock of CIBT or any of its subsidiaries. “Capital Stock” means (i) with respect to any Person that is a corporation, any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock or share capital of such Person and (ii) with respect to any other Person, any and all partnership, membership, joint venture or other equity interests of such Person.

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SECTION VI

REPRESENTATIONS AND WARRANTIES OF SHANE

Shane represents and warrants to CAG and CIBT as follows:

6.1 Authority. Shane has the full power and authority to execute and deliver this Agreement and to perform its obligations hereunder, and no consent or approval of any other Person is required therefor. The execution and delivery of this Agreement by Shane, the performance by Shane of its agreements hereunder and the consummation by Shane of the transactions contemplated hereby have been duly authorized by all necessary action.

6.2 No Conflicts. Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby (i) violates any other organizational document to which Shane is a party or subject to, (ii) violates any law, statute, ordinance, regulation, order, judgment or decree of any court or governmental agency, or (iii) conflicts with or results in any breach of any terms of, or constitutes a default under or results in the termination of or the creation of any lien or any other rights pursuant to the terms of any contract or agreement to which Shane is a party or by which Shane or any of its assets are bound.

SECTION VII

OTHER ACTIONS WITH RESPECT TO THE REORGANIZATION

7.1 Further Assurances; Books and Records. Each of CAG and CIBT hereby consents to the taking of all actions necessary to effect the Reorganization and the transactions set forth in this Agreement on the books and records of CAG and CIBT.

7.2 Termination of Agreements. Effective as of the Closing, the Existing Agreements set forth on Schedule A and identified as “Terminating Agreements” shall be terminated in their entirety and shall be of no further force and effect, except as specifically set forth in Schedule A.

7.3 Amendment of Existing Agreements. Effective as of the Closing, the Existing Agreements set forth in Schedule A and identified as “Amended Agreements” shall be amended as specifically set forth on Schedule A.

7.4 Certain Continuing Obligations. Notwithstanding anything to the contrary (including, without limitation, Section 1.1 hereof), the parties acknowledge and agree that CIBT’s obligations under Section 6 of that certain Debenture, dated April 24, 2007, by CIBT School of Business & Technology Corp. and Section 8.9 of the Purchase Agreement (as defined Schedule A) shall survive the Reorganization. Shane agrees that CIBT may assign to CAG, and CAG may assume, such obligations upon written notice to Shane duly executed by CAG and CIBT.

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SECTION VIII

SURVIVAL OF REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION

8.1 Survival of Representation and Warranties. All representations, warranties, waivers and acknowledgements contained herein (including with respect to the information contained on the Schedules hereto) shall survive the execution and delivery hereof and the Closing hereunder and shall continue in full force and effect thereafter; notwithstanding any investigation at any time made by or on behalf of any party hereto.

8.2 Indemnification of Shane. CAG and CIBT shall jointly and severally indemnify and hold harmless Shane against and from any losses, claims, damages or liabilities (or actions in respect thereof) arising out of or based upon the breach, falsity or incorrectness as of the Closing of any representation, warranty, waiver or acknowledgement of CAG or CIBT contained herein. Notwithstanding the foregoing, CAG and CIBT expressly agree and acknowledge that the right of indemnification granted herein to Shane shall not be deemed to be the exclusive remedy available to Shane.

8.3 Indemnification of CAG & CIBT. Shane shall indemnify and hold harmless CAG and CIBT against and from any losses, claims, damages or liabilities (or actions in respect thereof) arising out of or based upon the breach, falsity or incorrectness as of the Closing of any representation, warranty, waiver or acknowledgement of Shane contained herein. Notwithstanding the foregoing, Shane expressly agrees and acknowledges that the right of indemnification granted herein to CAG and CIBT shall not be deemed to be the exclusive remedy available to CAG and CIBT.

SECTION IX

TAX FREE REORGANIZATION

9.1 Tax Free Reorganization. Each party hereto agrees to cooperate with each of the other parties (including, but not limited to, by consistent reporting and filing with each appropriate tax authority) in order for the Reorganization to qualify as a non-taxable reorganization.

SECTION X

MISCELLANEOUS

10.1 Notices. All notices, demands, requests, consents approvals or other communications (collectively, “Notices”) required or permitted to be given hereunder or which are given with respect to this Agreement shall be in writing and shall be personally served, delivered by reputable air courier service with charges prepaid, or transmitted by personal delivery, or overnight courier, addressed as set forth below, or to such other address as such party shall have specified most recently by written notice. Notice shall be deemed given on the date of personal delivery or the next business day if sent by overnight courier. Notices shall be delivered as follows:

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If to CIBT or CAG:

CIBT Education Group Inc.

1200 – 777 West Broadway

Vancouver BC, Canada V5Z 4J7

Telephone: (604) 871-9909

Attn: Toby Chu

with a copy (which shall not constitute notice) to:

Maitland & Company

625 Howe Street, Suite 700

Vancouver, British Columbia

V6C 2T6, Canada

Attn: Ron Paton, Esq.

If to Shane:

Shane Corporation S.á.r.l.

c/o Camden Partners

500 East Pratt Street

Suite 1200

Baltimore, MD 21202

Attn: David Warnock

with a copy to (which shall not constitute notice hereunder):

Wilmer Cutler Pickering Hale and Dorr LLP

1875 Pennsylvania Avenue, N.W.

Washington, D.C. 20006

Attn: Gerry Cater, Esq.

10.2 Expenses. All costs and expenses incurred in connection with this Agreement shall be paid by the party incurring such cost or expense.

10.3 Assignment. Other than as provided herein, this Agreement shall not be assignable by any of the parties hereto except pursuant to a writing executed by all of the parties hereto.

10.4 Amendment and Waiver. The provisions of this Agreement may be amended or waived only with the written consent of all of the parties hereto.

10.5 Invalidity. If any provision of this Agreement, or the application of any such provision to any Person or circumstance, shall be held invalid by a court of competent jurisdiction, the remainder of this Agreement, or the application of such provision to Persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.

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10.6 Headings. The headings of this Agreement are for convenience of reference only and are not part of the substance of this Agreement.

10.7 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

10.8 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia applicable in the case of agreements made and to be performed entirely within such province and the laws of Canada applicable therein, without regard to its conflict of law provisions.

10.9 Counterparts. This Agreement may be executed in counterparts and delivered electronically or by fax, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

10.10 Entire Agreement. As among the parties hereto, the Transaction Agreements (including Schedule A and all other agreements, certificates and instruments contemplated hereby) constitute the entire agreement of the parties with respect to the subject matter hereof and supersede all prior and contemporaneous agreements and understandings whether oral or written with respect to the subject matter hereof. Schedule A is an integral part of this Agreement and is incorporated herein by reference.

* * * * * * *

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IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the date first above written.

				
		CIBT EDUCATION GROUP INC. 	
			 	
		By:	 	
		Name: 	 	
		Title: 	 	
			 	
			 	
			 	
			 	
		CIBT SCHOOL OF BUSINESS & TECHNOLOGY CORP. 	
			 	
			 	
		By:	 	
		Name: 	 	
		Title:	  	
			 	
			 	
			 	
			 	
		SHANE CORPORATION S.à.r.l. 	
			 	
			 	
			 	
		By:	  	
		Name:	David Warnock 	
		Title: 	Manager 	

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