Document:

Exhibit 10.1

 

ASSET PURCHASE AGREEMENT

BY AND BETWEEN:

BROKE OUT INC., a Nevada corporation having an office in Germany (hereinafter referred to as the “Corporation”)

 

-And-

 

Henry D’Andrea, an individual residing in Arizona (hereinafter referred to as the “Owner”);

  

	
 

ASSET PURCHASE AGREEMENT

 

Dated as of March 1, 2016

 

 

 

 

 

 

 

ASSET PURCHASE AGREEMENT

THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is made as of the 1st day of March 2016, by and between BROKE OUT INC., a Nevada corporation (the “Corporation”), and Henry D’Andrea d/b/a AppVizzle, an individual residing in Arizona (“Owner”).

WHEREAS, Owner is engaged in the business of developing Android and Apple mobile applications (the “Business”);

WHEREAS, Owner developed and owns the Secret Menu for Starbucks mobile application;

WHEREAS, the Corporation desires to purchase and acquire the Secret Menu for Starbucks mobile application and the related assets, properties and contractual rights, and Owner  desires to sell the Secret Menu for Starbucks mobile application, and the related assets, properties and contractual rights to the Corporation;

NOW THEREFORE in consideration of the mutual covenants, representations and warranties, which are to be made and performed by the respective Parties, it is hereby agreed as follows:

 ARTICLE I

INTERPRETATION

Section 1.01. Definitions. The following terms when used in this Agreement shall have the meanings hereby assigned to them:

“Action” means any claim, action, suit, formal or informal arbitration or mediation, inquiry, proceeding or investigation by or before any Governmental Entity or private authority;

“Business Day” shall mean any day other than a day which is a Saturday, a Sunday or a statutory holiday in Las Vegas, Nevada;

“Closing” shall mean the closing of the transactions contemplated by this Agreement;

“Encumbrance” shall mean any mortgage, charge, pledge, lien, (otherwise than arising by statute or operation of law), equities, hypothecation or other encumbrance, priority or security interest, pre-emptive right deferred purchase, title retention, leasing, sale-and-repurchase or sale-and-leaseback arrangement whatsoever over or in any property, assets or rights of whatsoever nature and includes any agreement for any of the same and reference to “Encumbrances” shall be construed accordingly;

 

1

“Governmental Entity” shall mean any court or tribunal in any jurisdiction or any federal, state, municipal or other governmental body, agency, authority, department, commission, board or instrumentality;

“Liabilities” means all debts, liabilities and obligations, whether legal or equitable, accrued or fixed, absolute or contingent, matured or unmatured, determined or determinable, foreseen or unforeseen, ordinary or extraordinary, patent or latent, including those arising under any applicable law, rule or regulation, or Action and those arising under any contract, agreement, arrangement, commitment or undertaking;

“Party” shall mean a Person, which is bound by this Agreement;

“Person” shall mean any individual, firm, company, government, state or agency of a state or any joint venture, association or partnership (whether or not having separate legal personality);

“Regulations” shall mean all statutes, laws, codes, treaties, ordinances, decrees, rules, orders and regulations in effect from time to time and made by governments or Governmental Entities having jurisdiction over the Corporation, the Owner, or the Business;

ARTICLE II

ASSET PURCHASE

Section 2.01.                                        Agreement of Asset Purchase. Subject to and upon the terms and conditions of this Agreement, at the Closing, the Corporation agrees to pay to Owner for the Assets (defined below) ten thousand United States dollars ($10,000 USD) (the “Purchase Price”) and the Owner agrees to cause the assets, properties and contractual rights described in Schedule A (collectively, the “Assets”) to be assigned to the Corporation (the “Asset Purchase”).

Section 2.02.                                        Closing.  The Closing of the Asset Purchase and the other transactions contemplated by this Agreement will occur as soon as possible (the “Closing Date”).

Section 2.03.                                        Owner’s Closing Documents.  At the Closing, Owner shall tender, or cause to be tendered, to Corporation:

(a)    A Bill of Sale for the Assets and an Assignment of the Assets to the Corporation and such other separate instruments as Corporation reasonably requests;

(b)   All accounting and other documents of Owner pertaining to the Assets, including, but not limited to, all historical financial information related to the Assets, and all supporting invoices, contracts, agreements, bank statements and tax filings, all in a form acceptable to the Corporation’s auditor; and

2

(c)    A certification from Owner certifying that the conditions in Section 8.01(b) have been satisfied.

Section 2.04.                                        Corporation’s Closing Documents.  At the Closing, the Corporation will tender, or cause to be tendered, to Owner:

(a)    the Purchase Price; and

(b)    A certificate executed by a duly appointed officer of the Corporation certifying that the conditions in Section 9.01(b) have been satisfied.

Section 2.05.                                        Non-Assumption of Liabilities.  Corporation shall not, by the execution and performance of this Agreement or otherwise (including under theories of successor liability), assume, become responsible for or incur any Liability of any nature of Owner or any other Person.  Owner agrees that he shall pay and discharge all such Liabilities as and when they become due and payable.

Section 2.06.                                        Post-Closing Matters.  Corporation and Owner agree that following the Closing:

(a)    Corporation shall cause Owner to be appointed to the Board of Directors of the Corporation, and such appointment and board position shall be subject to the Corporation’s governing documents as such may be amended from time to time, and applicable law.  As a director, Owner shall, among other things, provide advice to the Corporation, from time to time, regarding the Corporations operations and potential acquisitions.

(b)    Corporation shall employ Owner and Owner shall continue maintaining the Assets during the period of his employment.  The compensation during the period of employment will consist of (i) a fixed salary of $100 per month, and (ii) 20% of all profits generated from the Assets during the period of Owner’s employment with the Corporation (which may be paid to Owner or a beneficiary of his choosing).  Owner’s employment can be terminated by Corporation or Owner, for any or no reason, upon sixty (60) days advance notice.  Upon termination, Corporation shall have no further obligation to pay any compensation to Owner.

(c)    Within ninety (90) days of the Closing, the Corporation shall issue Owner shares of common stock of the Corporation equal to 0.1% of the issued and outstanding shares of the Corporation calculated as of the date of this Agreement.

3

ARTICLE III

REPRESENTATIONS AND WARRANTIES

Section 3.01.                           Each Party represents and warrants to the other Party that each of the warranties it makes is accurate in all respects and not misleading as at the date of this Agreement and at the Closing Date.

Section 3.02.                           Each Party undertakes to disclose in writing to the other Party anything which is or may constitute a breach of or be inconsistent with any of the warranties immediately upon the same coming to its notice at the time of and after Closing.

Section 3.03.                           Each Party agrees that each of the warranties it makes shall be construed as a separate and independent warranty and (except where expressly provided to the contrary) shall not be limited or restricted by reference to or inference from the terms of any other warranty or any other term of this Agreement.

Section 3.04.                           Each Party acknowledges that the restrictions contained in Section 12.07 (Public Notices) shall continue to apply after the Closing or Termination under this Agreement without limit in time.

Section 3.05.              All representations, warranties, covenants and agreements contained in this Agreement on the part of each of the Parties shall survive the Closing and the Assignment. If no claim shall have been made under this Agreement against a Party with respect to any incorrectness in or breach of any representation or warranty made by that Party in this Agreement within six months following the Closing, that Party shall have no further liability with respect to the representation or warranty.

Section 3.06.              The representations and warranties contained in clauses 3.01 and 3.02 herein of this Agreement shall be deemed to apply to all and shall not merge or diminish as a result of the Asset Purchase as contemplated hereunder.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE CORPORATION

Section 4.01.                                        Organization, Standing and Authority; Foreign Qualification. The Corporation is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has all requisite corporate power and authority to own, lease and operate its properties and to conduct its business as presently conducted and as proposed to be conducted and is duly qualified or licensed as a foreign corporation in good standing in each jurisdiction in which the character of its properties or the nature of its business activities require such qualification.

Section 4.02.                                        Corporate Authorization. The execution, delivery and performance by the Corporation of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action of the Corporation, and this Agreement constitutes a valid and binding agreement of the Corporation.

4

 

Section 4.03.                                    No Conflict.  The execution, delivery and performance of this Agreement and the completion of the transactions contemplated herein will not:

		(a)	Violate any provision of the Articles of Incorporation, By-laws or other charter or organizational document of the Corporation;

		(b)	Violate any order, judgment, injunction, award or decree of any court, arbitrator or governmental or regulatory body against, or binding upon, or any agreement with, or condition imposed by, any governmental or regulatory body, foreign or domestic, binding upon the Corporation or upon the assets or business of the Corporation; or

		(c)	Violate any statute, law or regulation of any jurisdiction as such statute, law or regulation relates to the Corporation or to the properties or business of the Corporation.

Section 4.04.                    Brokerage.  No broker or finder has acted, directly or indirectly, for the Corporation nor did the Corporation incur any finder’s fee or other commission, in connection with the transactions contemplated by this Agreement.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE OWNER

The Owner represents and warrants to the Corporation as follows:

Section 5.01.                               Organization, Standing and Authority; Foreign Qualification. Owner has all requisite power and authority to own, transfer and assign the Assets and to conduct his business as presently conducted and as proposed to be conducted.

Section 5.02.                              Authorization. The execution, delivery and performance by the Owner of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary action on the part of the Owner. The Owner has duly executed and delivered this Agreement and this Agreement constitutes a valid and binding agreement of the Owner.

Section 5.03.                              Title to the Assets. Upon completion of the Assignment, the Corporation shall be the beneficial and record holder of the Assets, without any Encumbrances thereon.

Section 5.04.                           Tax Advice. Owner is responsible for obtaining such legal, including tax, advice as it considers necessary or appropriate in connection with the execution, delivery and performance by it of this Agreement and the transactions contemplated herein.

Section 5.05                             No Conflict.  The execution, delivery and performance of this Agreement and the completion of the transactions contemplated herein will not:

5

(a)  Violate any provision of any agreements pertaining to any of the Assets;

(b)  Violate, conflict with or result in the breach of any of the terms of, result in any modification of the effect of, otherwise give any other contracting party the right to terminate, or constitute (or with notice or lapse of time or both constitute) a default under, any contract to which Owner is a party or by or to which his assets or properties, including the Assets, may be bound or subject;

(c) Violate any order, judgment, injunction, award or decree of any court, arbitrator or governmental or regulatory body against, or binding upon, or any agreement with, or condition imposed by, any governmental or regulatory body, foreign or domestic, binding upon Owner or upon any of the Assets;

(d) Violate any statute, law or regulation of any jurisdiction as such statute, law or regulation relates to Owner or to any of the Assets; or

(e) Result in the breach of any of the terms or conditions of, constitute a default under, or otherwise cause an impairment of, any permit or license held by Owner related to any of the Assets.

Section 5.06.                       Compliance with Laws.  To the best of Owner’s knowledge, Owner is not in violation of any applicable order, judgment, injunction, award or decree nor is it in violation of any federal, state, local or foreign law, ordinance or regulation or any other requirement of any governmental or regulatory body, court or arbitrator, other than those violations which, in the aggregate, would not have a material adverse effect on any of the Assets and Owner has not received written notice that any violation is being alleged.

Section 5.07.                                         Material Information.  This Agreement, the Schedules attached hereto and all other information provided, in writing, by Owner or his representatives, to the Corporation, taken as a whole, do not contain any untrue statement of a material fact or omit to state a material fact necessary to make any statement contained herein or therein not misleading.  There are no facts or conditions which have not been disclosed to the Corporation in writing which, individually or in the aggregate, could have a material adverse effect on Owner or a material adverse effect on the ability of Owner to perform any of his obligations pursuant to this Agreement or on the ability of the Corporation to operate any of the Assets.

Section 5.08.                       Actions and Proceedings. There are no outstanding orders, judgments, injunctions, awards or decrees of any court, governmental or regulatory body or arbitration tribunal against or involving Owner.  There are no actions, suits or claims or legal, regulatory, administrative or arbitration proceedings pending or, to the knowledge of Owner, threatened against or involving Owner, his assets or any of the Assets.

Section 5.09.                                     Financial Statements.  (a) Owner has, or will have prior to the Closing Date, provided to the Corporation all financial statements and other financial information pertaining to the Assets requested by the Corporation (the “Financial Statements”).

6

(b)          The Financial Statements shall be true, correct and complete in all material respects and fairly present the financial condition of the Assets.

Section 5.10.                      Status of Assets. The Assets are, and at the time of the Asset Purchase and the Closing shall be, in good standing and free from any Encumbrances whatsoever.

Section 5.11.                                        Brokerage.  No broker or finder has acted, directly or indirectly, for Owner nor has Owner incurred any obligation to pay any brokerage, finder’s fee or other commission in connection with the transactions contemplated by this Agreement.

ARTICLE VI

COVENANTS AND AGREEMENTS OF OWNER

Section 6.01.                                        Conduct of Businesses in the Ordinary Course.  From the date of this Agreement to the Closing Date, Owner shall conduct his business substantially in the manner in which it is currently conducted.

Section 6.02.                                        Preservation of Permits and Services.  From the date of this Agreement to the Closing Date, Owner shall use his best efforts to preserve any permits and licenses in full force and effect and to keep available the services, and preserve the goodwill, of his present managers, officers, employees, agents, and consultants.

Section 6.03.                                        Conduct Pending the Closing Date.  From the date of this Agreement to the Closing Date: (a) Owner shall use his best efforts to conduct his affairs in such a manner so that, except as otherwise contemplated or permitted by this Agreement, the representations and warranties contained in Article V shall continue to be true and correct on and as of the Closing Date as if made on and as of the Closing Date; and (b) Owner shall promptly notify Corporation of any event, condition or circumstance that would constitute a violation or breach of this Agreement by Owner.

Section 6.04.                                        Corporate Examinations and Investigations.  Prior to the Closing Date, Corporation shall be entitled, through its employees and representatives, to make such reasonable investigation of the assets, liabilities, properties, business and operations of Owner, and such examination of the books, records, tax returns, results of operations and financial condition of Owner. Any such investigation and examination shall be conducted at reasonable times and under reasonable circumstances and Owner and his employees and representatives, including without limitation, their counsel and independent public accountants, shall cooperate fully with such representatives in connection with such reasonable review and examination.

ARTICLE VII

COVENANTS AND AGREEMENTS OF CORPORATION

Section 7.01.                                        Conduct of Corporation Pending the Closing.  From the date hereof through the Closing Date:

7

(a)            Corporation shall use its best efforts to conduct its affairs in such a manner so that, except as otherwise contemplated or permitted by this Agreement, the representations and warranties contained in Article IV shall continue to be true and correct on and as of the Closing Date as if made on and as of the Closing Date; and

(b)            Corporation shall promptly notify Owner of any event, condition or circumstance occurring from the date hereof through the Closing Date that would constitute a violation or breach of this Agreement by the Corporation.

ARTICLE VIII

CONDITIONS PRECEDENT TO THE OBLIGATION OF CORPORATION TO CLOSE

The obligations of the Corporation to be performed by it at the Closing pursuant to this Agreement are subject to the fulfillment on or before the Closing Date, of each of the following conditions, any one or more of which may be waived by it, to the extent permitted by law:

Section 8.01.                                        Representations and Covenants.  (a)       The representations and warranties of Owner contained in this Agreement shall be true and correct on and as of the Closing Date with the same force and effect as though made on and as of the Closing Date, except that any of such representations and warranties that are given as of a particular date and relate solely to a particular date or period shall be true as of such date or period; and

(b)            The Owner shall have performed and complied with all covenants and agreements required by this Agreement to be performed or complied with by him on or before the Closing Date. The Owner shall have delivered to the Corporation a certificate, dated the Closing Date, and signed by the Owner to the foregoing effect.

Section 8.02.                                        Governmental Permits and Approvals.

            (a)            All approvals, authorizations, consents, permits and licenses from governmental and regulatory bodies required for the transactions contemplated by this Agreement and to permit the business currently carried on by Owner to continue to be carried on substantially in the same manner immediately following the Closing Date shall have been obtained and shall be in full force and effect, and the Corporation shall have been furnished with appropriate evidence, reasonably satisfactory to it, of the granting of such approvals, authorizations, consents, permits and licenses; and

(b)            There shall not have been any action taken by any court, governmental or regulatory body then prohibiting or making illegal on the Closing Date the transactions contemplated by this Agreement.

8

Section 8.03.                                        Third Party Consents.  All consents, permits and approvals from parties to contracts with Owner that may be required in connection with the performance by Owner hereunder or the continuance of such contracts in full force and effect after the Closing Date, shall have been obtained.

Section 8.04.                                        Litigation.  No action, suit or proceeding shall have been instituted and be continuing or be threatened by any person to restrain, modify or prevent the carrying out of the transactions contemplated hereby, or to seek damages in connection with such transactions, or that has or could have a material adverse effect on Owner.

Section 8.05.                                        Due Diligence Review.  The Corporation must have received results satisfactory to it, in its sole discretion, from its due diligence review of Owner and the Assets.

Section 8.06.                                        Closing Documents.  The Owner shall have executed and delivered the documents described in Section 2.03 above.

ARTICLE IX

CONDITIONS PRECEDENT TO THE OBLIGATION OF THE OWNER TO CLOSE

The obligations of Owner to be performed by him at the Closing pursuant to this Agreement are subject to the fulfillment, on or before the Closing Date, of each the following conditions, any one or more of which may be waived by him, to the extent permitted by law:

Section 9.01.                                        Representations and Covenants.  (a)      The representations and warranties of the Corporation contained in this Agreement shall be true and correct on and as of the Closing Date with the same force and effect as though made on and as of the Closing Date, except that any of such representations and warranties that are given as of a particular date and relate solely to a particular date or period shall be true as of such date or period; and

            (b)            The Corporation shall have performed and complied with all covenants and agreements required by this Agreement to be performed or complied with by it on or before the Closing Date. The Corporation shall have delivered to Owner a certificate dated the Closing Date, and signed by an authorized signatory of the Corporation to the foregoing effect.

Section 9.02.                                        Governmental Permits and Approvals.  (a)    All approvals, authorizations, consents, permits and licenses from governmental and regulatory bodies required for the transactions contemplated by this Agreement and to permit the business currently carried on by the Corporation to continue to be carried on substantially in the same manner immediately following the Closing Date shall have been obtained and shall be in full force and effect, and Owner shall have been furnished with appropriate evidence, reasonably satisfactory to him, of the granting of such approvals, authorizations, consents, permits and licenses; and

9

(b)            There shall not have been any action taken by any court, governmental or regulatory body then prohibiting or making illegal on the Closing Date the transactions contemplated by this Agreement.

Section 9.03.                                        Litigation.  No action, suit or proceeding shall have been instituted and be continuing or be threatened by any person to restrain, modify or prevent the carrying out of the transactions contemplated hereby, or to seek damages in connection with such transactions, or that has or could have a material adverse effect on the Corporation.

Section 9.04.                                        Closing Documents.  The Corporation shall have executed and delivered the documents described in Section 2.04 above.

ARTICLE X

TERMINATION

Section 10.01.                                        Termination.

(a)            Notwithstanding anything to the contrary in this Agreement, this Agreement may be terminated and the Asset Purchase and the other transactions contemplated by this Agreement shall be abandoned at any time prior to the Closing:

                          (i)            by mutual written consent of Owner and the Corporation;

                          (ii)            by either Owner or the Corporation in the event that a temporary restraining order, preliminary or permanent injunction or other judicial order preventing the consummation of the Asset Purchase or any of the other transactions contemplated hereby shall have become final and non-appealable; provided, that, the party seeking to terminate this Agreement pursuant to this clause (ii) shall have used all commercially reasonable efforts to have such order, injunction or other order vacated;

                          (iii)            by the Corporation (a) if the Corporation is not then in material breach of this Agreement and if there shall have been any breach by Owner (which has not been waived) of one or more of its representations or warranties, covenants or agreements set forth in this Agreement, which breach or breaches (A) would give rise to the failure of a condition set forth in Article VIII, and (B) shall not have been cured within thirty (30) days following receipt by Owner of written notice of such breach, or such longer period in the event that such breach cannot reasonably be expected to be cured within such 30‐day period and Owner is diligently pursuing such cure, or (b) if the Corporation has not received results satisfactory to it, in its sole discretion, from its due diligence review of Owner or the Assets;

                          (v)            by Owner if he is not then in material breach of this Agreement and if there shall have been any breach by the Corporation (which has not been waived) of one or more of its representations or warranties, covenants or agreements set forth in this Agreement, which breach or breaches (A) would give rise to the failure of a condition set forth in Article IX, and (B) shall not have been cured within thirty (30) days following receipt by the Corporation of written notice of such breach; or

10

(b)            In the event of termination by Owner or the Corporation pursuant to this Section 10.01, written notice thereof shall forthwith be given to the other Party and the transactions contemplated by this Agreement shall be terminated, without further action by any Party.

Section 10.02.                                        Effect of Termination.  If this Agreement is terminated and the transactions contemplated hereby are abandoned as described in Section 10.01, this Agreement shall become null and void and of no further force and effect, except for the provisions of (i) Section 10.01 and this Section 10.02; and (ii) Section 12.07 relating to publicity. Nothing in this Section 10.02 shall be deemed to release any Party from any liability for any breach by such Party of the terms, conditions, covenants and other provisions of this Agreement or to impair the right of any Party to compel specific performance by any other Party of its obligations under this Agreement.

ARTICLE XI

NOTICE

Section 11.01.                                          Service of Notice

All notices, requests, consents and other communications required or permitted hereunder shall be deemed to be served properly if served (i) when delivered if delivered personally (including by courier); (ii) on the third day after mailing, if mailed postage prepaid, by registered or certified mail (return receipt requested); (iii) on the day after mailing if sent by a nationally recognized overnight delivery service which maintains records of the time, place and recipient of delivery; or (iv) upon receipt of a confirmed transmission, if sent by telecopy or facsimile transmission, in each case to the parties at the following addresses.

Section 11.02.                                        Addresses for Notices

The address for service of notices hereunder of each of the Parties shall be as follows:

		Corporation:	Broke Out Inc.

Eschersheimer Landstrasse 42

Frankfurt, Germany

Owner:                                                      Henry D’Andrea

9608 W Clara Ln

Peoria, Arizona 85382

 

11

Section 11.03.          Right to Change Address

A Party may change its address for service by notice to the other Parties, and such changed address for service thereafter shall be effective for all purposes of this Agreement.

 

ARTICLE XII

MISCELLANEOUS PROVISIONS

Section 12.01.          Assignment.  The rights of the Parties shall not be assignable without the prior written consent of the other Party, which assignment shall not be unreasonably withheld.

Section 12.02.          Expenses. Each Party to this Agreement will pay its own expenses in connection with the negotiation of this Agreement, the performance of its obligations hereunder, and the consummation of the transactions contemplated herein.

Section 12.03.          Governing Law.  This Agreement shall be subject to and be interpreted, construed and enforced in accordance with the laws in effect in the State of Nevada applicable therein to the exclusion of any conflicts of laws rules, which would refer the matter to the laws of another jurisdiction.  Each Party accepts the exclusive jurisdiction of the courts of the State of Nevada and all courts of appeal there from.

Section 12.04.          Time.  Time shall be of the essence in this Agreement.

Section 12.05.          No Amendment Except in Writing.  This Agreement may be amended only by written instrument executed by all of the Parties hereto.

Section 12.06.          Further Assurances.  The Parties shall with reasonable diligence do all things and provide all reasonable assurances as may be required to consummate the transactions contemplated by this Agreement, and each Party shall provide such further documents or instruments required by any other Party as may be reasonably necessary or desirable to effect the purpose of this Agreement and to carry out its provisions, whether before or after the Closing.

Section 12.07.          Notices.   The Parties agree that all notices to third parties and all other publicity concerning the transactions contemplated by this Agreement shall be jointly planned and coordinated and no Party shall act unilaterally in this regard without the prior approval of the others, such approval not to be unreasonably withheld.

Section 12.08.          Standstill Agreement.  Unless and until this Agreement is terminated pursuant to Article 10 without the Closing having taken place, Owner shall not, directly or indirectly, solicit offers for the Assets, or respond to inquiries from, share information with, negotiate with or in any way facilitate inquiries or offers from, third parties who express or who have expressed an interest in acquiring the Assets. Owner shall notify the Corporation immediately if any Person makes any proposal, offer, inquiry or contact with respect to any of the foregoing.

12

IN WITNESS WHEREOF the Parties have executed this Asset Purchase Agreement on the date first above written.

BROKE OUT INC.,                                                                                        OWNER

a Nevada corporation

By:            /s/Chan Set Kuan                                                                      /s/ Henry D’Andrea

Name:       Chan Set Kuan                                                                            Henry D’Andrea

Title:          Chief Executive Officer

 

 

 

 

 

 

 

 

 

13

Schedule “A”

Identification the Assets

Secret Menu for Starbucks mobile application and all related intellectual property, historical financial information, contracts, and other rights.

 

 

 

 

 

 

 

 

 

 

 

14EX-4.1

 Exhibit 4.1 

EXECUTION VERSION 
 THIS NOTE AND THE
SECURITIES UNDERLYING THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE OR FOREIGN SECURITIES LAWS. IT MAY NOT BE SOLD, PLEDGED, ASSIGNED OR TRANSFERRED UNLESS REGISTERED THEREUNDER OR UNLESS AN EXEMPTION
FROM SUCH REGISTRATION SHALL BE AVAILABLE. 
 CONVERTING NOTE 

 

			
	March 3, 2016	  	USD 20,000,000

 FOR VALUE RECEIVED, and subject to the terms and conditions set forth herein, Ampco-Pittsburgh Corporation, a
Pennsylvania corporation (“Maker”), hereby unconditionally issues this Converting Note (the “Note”) to SHB (as defined below), or its permitted assigns (“Noteholder”, and together with Maker, the
“Parties”), in the principal amount of USD 20,000,000 (the “Principal Amount”). 
 1. Definitions. Capitalized
terms used herein shall have the meanings set forth in this Section 1. 
 “Altor” means Altor Fund II GP
Limited, a company duly incorporated and organized under the laws of Jersey, having its principal office at 11-15 Seaton Place, St Helier, Jersey JE4 0QH Channel Islands, as general partner of Altor Fund II (No. 1) Limited Partnership, Altor Fund II
(No. 2) Limited Partnership, Altor Fund II (No. 3) Limited Partnership and as investment manager to Altor Fund II (No. 4) Limited. 

“Maker” has the meaning set forth in the introductory paragraph. 

“Business Day” means a day other than a Saturday, Sunday or other day on which commercial banks in New York City are
authorized or required by law to close. 
 “Governmental Authority” means the government of any nation or any
political subdivision thereof, whether at the national, state, territorial, provincial, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government (including any supranational bodies such as the European Union or the European Central Bank). 

“Law” as to any Person, means any law (including common law), statute, ordinance, treaty, rule, regulation, policy or
requirement of any Governmental Authority and authoritative interpretations thereon, whether now or hereafter in effect, in each case, applicable to or binding on such Person or any of its properties or to which such Person or any of its properties
is subject. 
 “Material Adverse Effect” means a material adverse effect on (a) the business, assets, properties,
liabilities (actual or contingent), operations, or condition (financial or otherwise) of Maker; (b) the validity or enforceability of the Note; or (c) the rights or remedies of the Noteholder. 

“Note” has the meaning set forth in the introductory paragraph. 

 “Noteholder” has the meaning set forth in the introductory paragraph. 

“Order” as to any Person, means any order, decree, judgment, writ, injunction, settlement agreement, requirement or
determination of an arbitrator or a court or other Governmental Authority, in each case, applicable to or binding on such Person or any of its properties or to which such Person or any of its properties is subject. 

“Parties” has the meaning set forth in the introductory paragraph. 

“Person” means any individual, corporation, limited liability company, trust, joint venture, association, company,
limited or general partnership, unincorporated organization, Governmental Authority or other entity. 
 “Purchase
Agreement” has the meaning set forth in Section 2. 
 “Seller” has the meaning set forth in
Section 2. 
 “SHB” means Svenska Handelsbanken AB (publ), a company limited by shares incorporated in Sweden
under company registration number 502007-7862 having its principal office at Kungsträdgårdsgatan 2, 111 47 Stockholm, Sweden. 
 2. Purchase
Agreement. This Note is being issued to Noteholder pursuant to and in accordance with the terms and conditions of the Share Sale and Purchase Agreement, dated as of December 2, 2015, by and among Maker, Altor, Åkers Holding AB
(“Seller”), and Ampco UES Sub, Inc. (as amended or modified from time to time, the “Purchase Agreement”) and is subject to the terms and conditions of the Purchase Agreement. The Noteholder is entitled to the
benefits of the Note and the Purchase Agreement and may enforce the agreements of Maker contained in this Note and in the Purchase Agreement. Capitalized terms used and not otherwise defined in this Note shall have the meaning given to such terms in
the Purchase Agreement. 
 3. Conversion. 

3.1 Mandatory Conversion. Immediately upon transfer and endorsement of this Note to Altor, the Principal Amount shall automatically
convert into the Consideration Shares (as defined in the Purchase Agreement). 
 3.2 Maker to Provide Stock. Maker covenants that it
will at all times reserve and keep available out of the aggregate of its authorized but unissued shares of Common Stock or its issued shares of Common Stock held in its treasury, or both, for the purpose of effecting conversion of this Note, the
full number of Consideration Shares deliverable upon the conversion of this Note. Upon conversion of this Note in accordance with the terms hereof, Maker will take any and all corporate action which may, in the opinion of its counsel, be necessary
in order that Maker may validly and legally issue fully paid and non-assessable Consideration Shares to Altor. 
 3.3 Investment
Representation. By acceptance of this Note when transferred and endorsed by SHB, Altor acknowledges that: (i) it will acquire the Consideration Shares issuable upon conversion of this Note for investment purposes only and not with any
present intention to resell or engage in a redistribution thereof; and (ii) such Consideration Shares have not been registered under the Securities 

  
 2 

 
Act of 1933, as amended (the “Act”), and may not be sold or otherwise transferred in the absence of an effective registration statement relating thereto or an opinion of counsel
for Maker that registration is not required under the Act. 
 3.4 Legend. Each certificate representing the Consideration Shares
issuable upon any conversion of this Note shall have stamped, printed or typed thereon a legend substantially in the form set forth below: 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION THEREUNDER.” 

3.5 Conversion Rights Not Separable From Note. The conversion rights granted hereby cannot be transferred except in connection with a
transfer of this Note. In addition, Consideration Shares issuable upon any conversion of this Note shall only be issued to Altor at the time of conversion. 

3.6 Manner of Conversion. Altor shall, immediately upon receipt of this Note, surrender this Note for conversion to Maker. Conversion
of this Note shall be deemed to have been effected immediately upon receipt of this Note by Altor, and Altor shall be deemed to have become the holder of the Consideration Shares to be obtained pursuant to such conversion. To the extent that the
value of the Consideration Shares is less than the Principal Amount, the difference between the value of the Consideration Shares and the Principal Amount will be added to the initial principal balance of the Notes. 

4. Representations and Warranties. Maker hereby represents and warrants to Noteholder on the date hereof as follows: 

4.1 Existence; Compliance With Laws. Maker is (a) a corporation incorporated and validly existing and subsisting under the laws of
the state of its jurisdiction of incorporation and has the requisite power and authority, and the legal right, to own, lease and operate its properties and assets and to conduct its business as it is now being conducted and (b) in compliance
with all Laws and Orders except to the extent that the failure to comply therewith would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

4.2 Power and Authority. Maker has the power and authority, and the legal right, to execute and deliver this Note and to perform its
obligations hereunder. 
 4.3 Authorization; Execution and Delivery. The execution and delivery of this Note by Maker and the
performance of its obligations hereunder have been duly authorized by all necessary corporate action in accordance with all applicable Laws. Maker has duly executed and delivered this Note. 

4.4 No Approvals. No consent or authorization of, filing with, notice to or other act by, or in respect of, any Governmental Authority
or any other Person is required in order for Maker to execute, deliver, or perform any of its obligations under this Note. 

  
 3 

 4.5 No Violations. The execution and delivery of this Note and the consummation by Maker
of the transactions contemplated hereby do not and will not (a) violate any provision of Maker’s organizational documents; (b) violate any Law or Order applicable to Maker; or (c) conflict with or result in any breach, or
constitute a default, under any material agreement or contract by which Maker is bound. 
 4.6 Enforceability. The Note is a valid,
legal and binding obligation of Maker, enforceable against Maker in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law). 

4.7 No Litigation. No action, suit, litigation, investigation or proceeding of, or before, any arbitrator or Governmental Authority is
pending or, to the knowledge of Maker, threatened by or against Maker or any of its property or assets (a) with respect to the Note or any of the transactions contemplated hereby or (b) that would be expected to materially adversely affect
Maker’s financial condition or the ability of Maker to perform its obligations under the Note. 
 5. Covenants. Until all the Principal Amount
has been converted in full into the Consideration Shares, Maker shall: 
 5.1 Maintenance of Existence. (a) Preserve, renew and
maintain in full force and effect its corporate or organizational existence and (b) take all reasonable action to maintain all rights, privileges and franchises necessary or desirable in the normal conduct of its business, except, in each case,
where the failure to do so would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 5.2
Compliance. Comply with (a) all of the terms and provisions of its organizational documents; (b) its obligations under its material contracts and agreements; and (c) all Laws and Orders applicable to it and its business, except
where the failure to do so would not reasonably be expected to have a Material Adverse Effect. 
 5.3 Further Assurances. Upon the
request of Noteholder, execute and deliver such further instruments and do or cause to be done such further acts as may be necessary or advisable to carry out the intent and purposes of this Note. 

6. Enforcement. Maker hereby waives demand, notice, protest and notice of dishonor. 

7. Miscellaneous. 
 7.1 Notices.

 (a) All notices, requests or other communications required or permitted to be delivered hereunder shall be delivered in writing, in each
case to the address specified below or to such other address as such Party may from time to time specify in writing in compliance with this provision: 
  

			
	    (i)    If to Maker:
		 	Ampco-Pittsburgh Corporation

  
 4 

			
		 	  
 726 Bell Avenue, Suite 301, Carnegie, PA 15106

 
 Attn: Masha Trainor, Vice President, General Counsel and Secretary

 
 Telephone: 412-456-4470, Facsimile: 412-456-4443

 
 E-mail: mtrainor@ampcopgh.com

	
	    (ii)    If to Noteholder:
		 	Svenska Handelsbanken AB (publ)
		 	  
 SE-106 70 Stockholm

 
 Attn: Medium and Long Term Finance

 
 E-mail: loanadmin@handelsbanken.se

 
 with a copy to:
  

Svenska Handelsbanken AB (publ)
  

Trädgårdsgatan 13
  

Box 64
  

SE-645 21 Strängnäs
  

Att: Katharina Schramm Hellmark
  

E-mail: strangnas@handelsbanken.se

 (b) Notices if (i) mailed by certified or registered mail or sent by hand or overnight courier service
shall be deemed to have been given when received; (ii) sent by facsimile during the recipient’s normal business hours shall be deemed to have been given when sent (and if sent after normal business hours shall be deemed to have been given
at the opening of the recipient’s business on the next Business Day); and (iii) sent by e-mail shall be deemed received upon the sender’s receipt of an acknowledgment from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written acknowledgment). 
 7.2 Governing Law. The Notes and any
claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out, of or relating to the Notes and the transactions contemplated hereby shall be governed by the laws of the State of New York, without
regard to its principles regarding conflicts of law. 
 7.3 Submission to Jurisdiction. Each of Maker and Noteholder hereby
irrevocably and unconditionally (i) agrees that any legal action, suit or proceeding arising out of or relating to the Notes may be brought in the courts of the State of New York in the Borough of Manhattan or of the United States of America
for the Southern District of New York and (ii) submits to the exclusive jurisdiction of any such court in any such action, suit or proceeding. Final judgment against Maker or Noteholder in any action, suit or proceeding shall be conclusive and
may be enforced in any other jurisdiction by suit on the judgment. 

  
 5 

 7.4 Venue. Each of Maker and Noteholder irrevocably and unconditionally waives, to the
fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to the Notes in any court referred to in Section 7.3 and the
defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
 7.5 Waiver of Jury Trial. EACH
OF MAKER AND NOTEHOLDER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY RELATING TO THIS NOTE OR THE TRANSACTIONS CONTEMPLATED
HEREBY WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY. 
 7.6 Counterparts; Integration; Effectiveness. This Note and any
amendments, waivers, consents or supplements hereto may be executed in counterparts, each of which shall constitute an original, but all taken together shall constitute a single contract. This Note constitutes the entire contract between the Parties
with respect to the subject matter hereof and supersede all previous agreements and understandings, oral or written, with respect thereto. Delivery of an executed counterpart of a signature page to this Note by facsimile or in electronic (i.e.,
“pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Note. 
 7.7
Transfers; Successors and Assigns. The Note may not be assigned or transferred by the Noteholder to a Person other than Altor. Maker may not assign or transfer this Note or any of its rights hereunder without the prior written consent of
Noteholder. This Note shall inure to the benefit of, and be binding upon, the Parties and their permitted assigns. 
 7.8
Interpretation. For purposes of this Note (a) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation”; (b) the word “or” is
not exclusive; and (c) the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer to this Note as a whole. The definitions given for any defined terms in this Note shall apply
equally to both the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. Unless the context otherwise requires, references herein:
(x) to Schedules, Exhibits and Sections mean the Schedules, Exhibits and Sections of this Note; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from
time to time to the extent permitted by the provisions thereof; and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Note shall be
construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. 

7.9 Amendments and Waivers. The terms of the Note (including the provisions of this sentence) may not be amended, modified, or
supplemented, Maker may not take any action herein prohibited or omit to perform any act herein required to be performed by it, and waivers or consents to departures from the provisions hereof may not be given, without the prior written consent of
(a) Maker and (b) the Noteholder. Any such amendment, modification, supplement, omission, waiver, or consent shall apply equally to all Noteholders and shall be binding upon them as well as their successors and permitted assigns and upon
Maker and its successors and permitted assigns, whether or not the Note shall have been marked to indicate such amendment, modification, supplement, omission, waiver, or consent. 

  
 6 

 7.10 Headings. The headings of the various Sections and subsections herein are for
reference only and shall not define, modify, expand or limit any of the terms or provisions hereof. 
 7.11 No Waiver; Cumulative
Remedies. No failure to exercise and no delay in exercising on the part of Noteholder, of any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law. 
 7.12 Severability. If any term or provision of this Note is invalid, illegal or
unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Note or invalidate or render unenforceable such term or provision in any other jurisdiction. 

[SIGNATURE PAGE FOLLOWS] 

  
 7 

 IN WITNESS WHEREOF, Maker has executed this Note as of March 3, 2016. 

 

			
	AMPCO-PITTSBURGH CORPORATION
		
	By	 	     /s/ John S. Stanik

	Name: John S. Stanik
	Title: Chief Executive Officer

 Pay to the order of Altor Fund II GP Limited. 
  

			
	SVENSKA HANDELSBANKEN AB (PUBL)
		
	By	 	 /s/ Daniel Andersson    /s/Johan Ohlsson-Leijon

	Name: Daniel Andersson and Johan Ohlsson-Leijon
	Title: Authorized Persons and Attorneys-in-Fact for Svenska Handelsbanken AB (PUBL)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00255-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00255-of-00352.parquet"}]]