Document:

Exhibit 10.2

PUT OPTION AGREEMENT

This PUT OPTION AGREEMENT (this “Agreement”) is entered into as of the 23 day of June, 2011 by and between Counsel RB Capital Inc., a Florida corporation (“Corporation”), and The Rexford Company, LLC, a Maryland limited liability company (the “Optionee”).

 

WHEREAS, the Optionee is acquiring twenty seven thousand three hundred twenty two (27,322) shares of the common stock of the Corporation (the “Purchased Shares”), pursuant to the terms of the Asset Purchase Agreement dated of even date herewith by and among the Optionee and certain other parties (the “Asset Purchase Agreement”) and the option to purchase twenty thousand (20,000) shares of the common stock of the Corporation, pursuant to the terms of the Option Agreement dated of even date herewith by and among Optionee and certain other parties (the “Option Agreement”).

 

NOW, THEREFORE, in consideration of the promises and mutual covenants herein contained and other good and valuable consideration, the parties hereto agree as follows:

 

1.           Grant of Put Option.    The Corporation hereby grants to the Optionee an option (the “Put Option”) to require the Corporation to purchase all, but not less than all, of the Shares and cancel the Option Agreement in exchange for one hundred fifty thousand dollars ($150,000).  The price paid to Optionee pursuant to the Put Option shall be hereinafter referred to as “Put Option Price”.  The Put Option must be exercised, if at all, on September 12, 2011 (the “Put Option Exercise Date”) by notice given pursuant to Section 2.  The Put Option may not be exercised if any of the Purchased Shares have been transferred to a third party, or if the Option Agreement has been  exercised in whole or in part.

 

2.           Exercise of Option.

 

(a)           Optionee may exercise the Put Option only on the Put Option Exercise Date, by delivering to the Corporation written notice of exercise, not more than sixty (60) days and not less than thirty (30) days, prior to the Put Option Exercise Date.

 

(b)           The closing of the sale and purchase of the Purchased Shares pursuant an exercise of the Put Option (the “Closing”) will occur on the Put Option Exercise Date.  At the Closing, the Optionee will: (i) deliver to the Corporation the certificate(s) or other document(s) evidencing the Shares to be acquired by Corporation, accompanied by stock powers executed in blank and otherwise will take such action and deliver such documentation as may be reasonably necessary in order to transfer to the Corporation good and marketable title to such Shares, free and clear of any and all liens, claims encumbrances of any nature; and (ii) execute termination document(s) provided by the Corporation for the Option Agreement.

 

(c)           The Corporation will satisfy the Put Option Price by wire transfer of the amount thereof in immediately available funds to Optionee’s designated bank account. For the avoidance of doubt, if the amount of Purchased Shares shall increase or decrease because of any stock split of the common stock of the Corporation, this Put Option shall apply to the amount of increased or decreased Purchased Shares.

  

 

  

3.           Representations of Optionee.  Optionee represents and warrants to the Corporation as follows:

 

(a)           Optionee has all requisite corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby.  The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby will not violate any provision of the articles of incorporation or bylaws, or similar organizational documents, of Optionee.

 

(b)           Upon any exercise of the Put Option, Optionee will be the legal and beneficial owner of, and shall at Closing convey to the Corporation hereunder good and marketable title to, the Purchased Shares being sold pursuant to such exercise, free and clear of any claim, lien, option, charge or encumbrance of any nature whatsoever.  Upon any exercise of the Put Option, Optionee will have full power, authority and capacity to sell the Purchased Shares being sold pursuant to such exercise to Corporation in accordance with the terms and provisions of this Agreement and applicable law.

 

4.           Representations of Corporation.  The Corporation represents and warrants to Optionee as follows:

 

(a)           The Corporation has all requisite corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby.

 

(b)           The execution and delivery of this Agreement, the performance of the Corporation’s obligations hereunder and the consummation of the transactions contemplated hereby have been duly and validly authorized by the Board of Directors of the Corporation, and no other corporate proceedings or actions on the part of the Corporation, the Board of Directors of the Corporation or the shareholders of the Corporation are necessary to authorize the execution and delivery of this Agreement or to perform the Corporation’s obligations hereunder.

 

(c)           The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby will not violate any provision of the articles of incorporation or bylaws, or similar organizational documents, of the Corporation.

 

5.           Governing Law.  This Agreement shall be governed by and construed in accordance with the substantive laws of the State of New York and without regard to its laws concerning choice of law.

6.           Arbitration.  Any controversy or claim arising out of or relating to this Agreement shall be settled exclusively by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect.  The decision of the arbitrator shall, except for mistakes of law, be final and binding upon the parties hereto, and judgment upon the award rendered by the arbitrator, which shall, in the case of damages, be limited to actual damages proven in the arbitration, may be entered in any court having jurisdiction thereof.

  

 

  

7.           Notices.  All notices and other communications given or made pursuant to this Agreement shall be in writing and deemed effectively given upon the date of personal delivery or one business day following sending by overnight delivery via a national courier service, addressed to the following at:

 

	
To the Corporation:

	  
	
Counsel RB Capital Inc.

	
Attn:  Jonathan Reich

	
267 Central Avenue

	
White Plains, New York 10606

	
Phone:  914.614.1800

	  
	
With a copy to:

	  
	
Counsel Corporation

	
Attn: R. Adam Levy

	
1 Toronto Street, Suite 700

	
Toronto ON M5C 2V6

	
Canada

	
Phone:  416.866.3000

	  
	
and

	  
	
Harwell Howard Hyne Gabbert & Manner, P.C.

	
Attn:  Curtis Capeling

	
315 Deaderick Street, Suite 1800

	
Nashville, Tennessee  37238

	
Phone:  615.256.0500

	
Fax: 615-251-1059

	  
	
To Optionee:

	  
	
The Rexford Company, LLC

	
Attn: Dan Rexford

	
Address:

	
Phone:

	
Fax:

8.           Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the heirs, legal representatives, successors, and assigns of each of the parties.

  

 

  

9.           Multiple Counterparts.  This Agreement may be executed in multiple counterparts, each of which shall be deemed an original for all purposes, but all of which together shall constitute one and the same instrument.

 

10.         Entire Agreement.  This Agreement constitutes the entire agreement of the parties, and supersedes all prior agreements, understandings, or documents, with respect to the subject matter hereof.

 

11.         Interpretation.  All pronouns and any variation thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the person or entity, or the context, may require.  Further, it is acknowledged by the parties that this Agreement including exhibits, if any, has undergone several drafts with the negotiated suggestions of both; and, therefore, no presumptions shall arise favoring either party by virtue of the authorship of any of its provisions or the changes made through revisions.

 

12.         Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

13.         Expenses.  Each party hereto will bear its own expenses incurred in connection with the preparation, negotiation and execution of this Agreement and the consummation of the transactions contemplated hereby.

 

14.         Amendment.  No provision of this Agreement may be amended, waived, changed, or modified except by an agreement in writing signed by Optionee and the Corporation, or in the case of a waiver, by the party waiving compliance.

  

 

  

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in multiple originals effective as of the date first set forth above.

 

	
CORPORATION:

	  
	
COUNSEL RB CAPITAL INC.

	  
	
By:

	
      

	
Name:  

	
      

	
Title:

	
      

	  
	
OPTIONEE:

	  
	
THE REXFORD COMPANY, LLC

	  
	
By:

	
      

	
Name:  

	
      

	
Title:

	
      

 

[Signature Page to Put Option Agreement]Exhibit 10.3

LOCK-UP AGREEMENT

THIS LOCK-UP AGREEMENT (this “Agreement”) is entered into on June 23, 2011 (the “Effective Date”), by and between Counsel RB Capital Inc., a Florida corporation (“CRB”), Kenneth Mann, an individual resident of the State of Maryland (“Mann”) and Equity Partners, Inc. of Maryland, a Maryland corporation (“Equity Partners”).

Counsel RB Capital LLC, a Delaware limited liability company (“LLC”) and Mann are parties to that certain Asset Purchase Agreement dated of even date herewith, pursuant to which Equity Partners received a certain number of shares of CRB common stock (the “Purchase Agreement”) and the option to purchase a certain number of shares of CRB common stock (the “Option Agreement”).  The shares of CRB common stock received by Equity Partners pursuant to the Purchase Agreement and any shares of CRB common stock acquired under the option granted to Equity Partners pursuant to the Option Agreement shall be hereinafter referred to as the “Purchased Shares.”

Mann and EP USA, LLC, a Maryland limited liability company (the, “Company”) are parties to that certain employment agreement dated of even date herewith (the “Employment Agreement”).

This Agreement, among others, is being entered into in connection with the acquisition of the Company by LLC, an affiliate of CRB, and Mann or his affiliate is receiving substantial consideration with that transaction.

The parties therefore agree as follows:

1.           Lock-Up.

1.1         General Prohibition on Transfer of Permitted Shares.  Mann and Equity Partners agree that neither of them shall not sell, assign, convey, pledge, hypothecate or otherwise dispose of, whether directly or indirectly, including a transfer of any interest in Equity Partners (“Transfer”) any of the Purchased Shares, whether or not for value, except as permitted by this Agreement.

1.2         Permitted Transfers.  Section 1.1 notwithstanding and subject to compliance with Section 2, Mann or Equity Partners are permitted to Transfer Purchased Shares in the following circumstances (each of which constitutes a “Permitted Transfer”):

(a)           Mann or Equity Partners may at any time Transfer all or any portion of the Purchased Shares to CRB on terms mutually agreeable to the parties;

(b)           Equity Partners may Transfer all or any portion of the Purchased Shares to Mann so long as Equity Partners is wholly owned by Mann from the date of this Agreement to the date of such Transfer, and Mann is able to demonstrate to CRB that he is an “accredited investor” as defined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended, at the time of such Transfer; and

  

 

  

(c)           On and from January 1, 2013, Mann or Equity Partners may Transfer any or all of the Purchased Shares to any party, subject to Section 2 of this Agreement.

2.           No Transfer in Violation of Law; Insider Trading Policies.  Mann and Equity Partners covenant that they will not: (i) Transfer any of the Purchased Shares in violation of any law, including, without limitation, the Securities Act of 1933 (the “Securities Act”), the Securities Exchange Act of 1934 (the “Exchange Act”), the securities or “blue sky” laws of any applicable state and the rules and regulations promulgated under any of the foregoing; or (ii) Transfer any of the Purchased Shares in violation of the rules, procedures or restrictions relating to the Transfer of common stock by insiders which are established by CRB from time to time, in each case whether or not such Transfer would otherwise be deemed a Permitted Transfer under Section 1.2.

3.           Indemnification.  Mann and Equity Partners (each an “Indemnifying Party”) agree to jointly and severally indemnify, defend and hold harmless CRB, CRB’s affiliates, and each of the foregoing’s shareholders, directors, officers, employees, agents, successors and assigns (each a “CRB Indemnified Party”) against any and all losses, claims, damages or liabilities, costs or expenses (including reasonable attorneys’ and experts’ fees) (“Claims”), whether incurred in an action between any such CRB Indemnified Party and an Indemnifying Party, a third party or otherwise, to which any such CRB Indemnified Party may become subject under the Securities Act, the Exchange Act, state securities laws, or otherwise, and any rules and regulations promulgated under any of the foregoing, insofar as such Claims (or actions in respect thereof) arise out of or are based upon any breach by any Indemnifying Party of any of the provisions of this Agreement.

4.           Miscellaneous.

4.1           This Agreement constitutes the entire agreement between the parties and supersedes any prior or contemporaneous communications, representations or agreements between the parties, whether oral or written, regarding the subject matter of this Agreement.

 

4.2           If any provision of this Agreement is found to be void, invalid or unenforceable: (i) the same will be conformed to the extent necessary to comply with applicable law or stricken if not so conformable, so as not to affect the validity of this Agreement; and (ii) the remaining provisions will remain in effect.  No amendment of this Agreement is binding unless in writing and executed by each of the parties.  Any waiver or consent is valid only if in a signed writing and only in the specific instance in which it is given, and such waiver or consent is not to be construed as a waiver of any subsequent breach of any other provision or as a consent with respect to any similar instance or circumstance.

 

4.3           This Agreement inures to the benefit of and is binding upon the parties and their respective legal representatives, successors, and assigns.  Seller may not directly or indirectly, including by assignment, operation of law or change of control, transfer or assign this Agreement without CRB’s prior written consent, and any purported transfer or assignment in violation of this section will be null and void.

  

 

  

4.4           This Agreement will be governed by and construed in accordance with the laws of the State of New York, without regard to conflict of laws principles.  Exclusive venue for any action arising out of or related to this Agreement will be in state or federal court located in the County of New York, New York, and each party consents to the jurisdiction of such courts and waives any defense based on lack of personal jurisdiction or inconvenient forum.

 

4.5           EACH PARTY IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATED TO THIS AGREEMENT BE TRIED BY JURY.  EACH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHT TO DEMAND TRIAL BY JURY.

 

4.6           This Agreement may be executed in counterparts, each of which will be an original, and all of which together will be one and the same agreement.  A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission will have the same legal effect as delivery of an original signed copy of this Agreement.  The headings of this Agreement are provided for convenience only and are not intended to affect its construction or interpretation.

 

4.7           The parties acknowledge that there may be no adequate remedy at law for a breach of this Agreement and that money damages may not be an appropriate remedy for breach of this Agreement.  Therefore, the parties agree that each party has the right to injunctive relief and specific performance of this Agreement in the event of any breach hereof in addition to any rights it may have for damages.  The remedies set forth in this section are cumulative and will in no way limit any other remedy any party has at law, in equity or pursuant hereto.

 

[signature page follows]

  

 

  

The parties have executed this Agreement effective as of the Effective Date.

 

	
Counsel RB Capital Inc.

	  
	
By:

	
       

	
Title:  

	
       

	  
	
Equity Partners, Inc. of Maryland

	  
	
By:

	
       

	
Name: Kenneth W. Mann

	
Title: President

	  
	
Kenneth W. Mann

	  
	
       

[Signature Page to Lockup Agreement – Kenneth W. Mann]

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