Document:

Exhibit 10.1

 

  

 

  

 

  

 

  

 STOCK REPURCHASE
AGREEMENT  

 
        This
STOCK PURCHASE AGREEMENT (the “Agreement”) is made and entered into as of May 5,
2006, between Wishco, Inc., a corporation controlled by Barry N. Wish, (the
“Seller”) and Ocwen Financial Corporation, a Florida corporation (the
“Company”).  

 
        WHEREAS,
the Seller desires to sell and the Company desires to purchase one million (1,000,000)
shares of Common Stock, par value $.01 per share, of the Company owned by the Seller (the
“Shares”) pursuant to the terms and conditions of this Agreement.  

 
        WHEREAS,
the disinterested members of the Board of Directors of the Company have considered and
approved the purchase of the Shares by the Company at the price set forth in this
Agreement.  

 
        NOW
THEREFORE, in consideration of the mutual covenants and agreements contained herein, and
for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, and intending to be legally bound hereby, the parties hereto covenant and
agree as follows:  

      ARTICLE I 

      Sale
and Purchase  

 
        1.01  
Sale and Purchase. Subject to the terms and conditions of this Agreement,
the Seller shall sell to the Company, and the Company shall purchase from the Seller, the
Shares, at a price per share of $11.00. The aggregate purchase price due to the Seller is
$11,000,000 (the “Purchase Price”). The Purchase Price shall be paid in full at
Closing (as defined below) in immediately available funds by wire transfer to the Seller,  

 
        1.02  
Closing.At the closing of the transaction contemplated hereby to take place on May
9, 2006 (the “Closing”), the Seller will convey to the Company all of its right,
title and interest in and to the Shares free and clear of all Encumbrances other than
Company Encumbrances (each as defined in Section 2.01 hereof). The Seller shall deliver to
the Company, at the Closing, a certificate or certificates representing the Shares, duly
endorsed for transfer or accompanied by duly executed stock powers naming the Company as
transferee.  

ARTICLE II  

Representations and
Warranties of the Seller  

 
        As
a material inducement to the Company to enter into this Agreement and to consummate the
transactions contemplated hereby, the Seller hereby represents and warrants to the
Company, as of the Closing, as follows:  

 
        2.01  
Ownership; Authority: Good Title.The Seller is the lawful owner of the
Shares free and clear of any claim, lien, pledge, voting agreement, adverse claim, option,
charge, security interest, mortgage, deed of trust, encumbrance, right of assignment,
purchase right or other rights of any nature whatsoever affecting the use, voting or
transfer of the Shares (each, an “Encumbrance”) and has the full power and
authority to enter into this Agreement  

 

 
and to transfer, assign, convey and
deliver the Shares free and clear of any Encumbrance other than an Encumbrance arising
through the Company’s ownership of the Shares (a “Company Encumbrance”)
and, upon delivery to the Company of a certificate or certificates representing such
Shares, duly endorsed for transfer or accompanied by a stock power duly executed by such
Seller, the Company will have acquired good and valid title to the Shares, free and clear
of any Encumbrance other than a Company Encumbrance,  

 
        2.02  
Enforceability . This Agreement has been duly and validly executed and
delivered by the Seller and constitutes the legal, valid and binding obligation of the
Seller enforceable against the Seller in accordance with its terms, subject to bankruptcy,
insolvency or other similar laws of general application affecting creditors’ rights
and general principles of equity,  

 
        2.03  
Absence of Violations or Conflicts. Neither the execution and delivery by the
Seller of this Agreement, the compliance by the Seller with the terms and conditions
hereof, nor the consummation by the Seller of the transactions contemplated hereby will
violate, result in a breach of, or constitute a default under its articles of
incorporation or bylaws, as amended, or under any agreement, instrument, judgment, order
or decree to which the Seller is a party or is otherwise bound or result in the creation
or imposition of any lien, charge, security interest or encumbrance of any nature
whatsoever upon any of the property or assets of the Seller pursuant to any such
agreement, instrument, judgment, order or decree or give to others any material rights or
interests (including rights of purchase, termination, cancellation or acceleration), under
any such agreement or instrument.  

 
        2.04  
The Company has provided Seller with full and complete disclosure with respect to the
operations, business prospects and condition (financial or otherwise) of the Company, and
Seller has made a voluntary and informed investment decision to sell the Shares to the
Company.  

ARTICLE III  

Representations and
Warranties of the Company  

 
        As
a material inducement to the Seller to enter into this Agreement and to consummate the
transactions contemplated hereby, the Company hereby represents and warrants to the
Seller, as of the Closing, as follows:  

 
        3.01  
Existence: Authority. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of Florida, The Company has all
requisite corporate power and authority to execute, deliver and perform the terms of this
Agreement and to consummate the transactions contemplated hereby and has all taken all
necessary action to authorize the execution, delivery and performance of this Agreement,  

 
        3.02  
Enforceability. This Agreement has been duly and validly executed and
delivered by the Company and constitutes the legal, valid and binding obligation of the
Company enforceable against the Company in accordance with its terms, subject to
<PAGE>  

-2- 

 
bankruptcy, insolvency or other
similar laws of general application affecting creditors’ rights (except as specified
in Section 3.03 below) and general principles of equity.  

 
        3.03.  
Absence of Violations and Conflicts. Neither the execution and delivery
by the Company of this Agreement, the compliance by the Company with the terms
and conditions hereof, nor the consummation by the Company of the transactions
contemplated hereby will (a) violate any fraudulent conveyance laws, (b) violate
any laws restricting the Company’s purchase of its Common Stock or (e)
violate, result in a breach of, or constitute a default under its articles of
incorporation or bylaws, as amended, or any agreement, instrument, judgment,
order or decree to which the Company is a party or is otherwise bound or give to
others any material rights or interests (including rights of purchase,
termination, cancellation or acceleration) under any such agreement or
instrument.  

 
        3.04  
The Company is acquiring the Shares only for its own account, and not with a view to
resell or otherwise distribute the Shares.  

 
      ARTICLE
IV  

 
      Indemnification  

 
   4.01  
Indemnification.  

 
    (a)       
The Seller will defend and hold harmless the Company for, and will pay to the
Company any Damages arising from or in connection with any breach of any
representation or warranty made by such Seller in Article 2 of this Agreement.  

 
    (b)       
The Company will indemnify, defend and hold harmless the Seller for, and will
pay to the Seller any Damages arising from or in connection with any breach of
any representation or warranty made by the Company in Article 3 of this
Agreement,  

 
    (c)       
As used herein, “Damages” shall mean any loss, liability, claim,
damage or expense (including reasonable attorneys’ fees), whether or not
involving a third party claim.  

 
      ARTICLE
V  

 
      Miscellaneous 

 
        5.01  
Further Assurances. Each of the parties hereto agrees on behalf of itself
and its assigns or successors in interest that it will, without further consideration,
upon reasonable request, execute, acknowledge and deliver such other documents and take
such further actions as reasonably may be necessary to consummate the purchase and sale of
the Shares.  

 
        5.02  
Expenses. Each of the parties hereto agrees to pay all of their own
respective closing costs and expenses (including, without limitation, attorneys’
fees), arising from this Agreement and the transactions contemplated hereby.  

-3- 

 
        5.03  
Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Florida.  

 
        5.04  
Entire Agreement; Modification; Waiver. This Agreement constitutes the
entire Agreement among the parties hereto pertaining to the subject matter hereof and
supersedes all prior agreements, understandings, negotiations and discussions, whether
oral or written, of the parties and there are no warranties, representations or other
agreements, express or implied, made by either party to the other party in connection with
the subject matter hereof except as specifically set forth herein or in documents
delivered pursuant hereto. To the fullest extent permitted by law, unless otherwise
expressly provided for herein, no supplement, modification, waiver or termination of this
Agreement shall be binding unless executed in writing by the Company and the Seller. No
waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of
any other provision hereof (whether or not similar), nor shall such waiver constitute a
continuing waiver unless otherwise expressly provided.  

 
        5.05  
Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original, but all of which together shall constitute the
same instrument.  

 
        5.06  
Matters of Construction, Severability.  

 
    (a)       
Construction. Each party has been represented by counsel selected
by such party in connection with the negotiation and drafting of this Agreement,
and this Agreement has been jointly drafted by such counsel, so that no
principle of resolving ambiguities against the drafter shall apply in
constructing any of the terms hereof. Whenever the words “include,”
“includes” or “including” are used in this Agreement they
shall be deemed to be followed by the words “without limitation-"  

 
    (b)       
Severability. In the event that any provision of this Agreement
becomes or is declared by a court of competent jurisdiction to be
illegal, unenforceable or void, this Agreement shall continue in full force and
effect without said provision; provided that no such severability shall be
effective if it materially changes the economic benefit of this Agreement to any
party hereto.  

 
        5.07  
No Third-Party Beneficiaries. This Agreement shall not confer any rights or
remedies upon any person other than the Company, the Seller and their respective
successors.  

 
        5.08  
Succession and Assignment . This Agreement shall be binding upon and inure to the
benefit of the parties named herein and their respective successors. No party may assign
this Agreement or any of such party’s rights, interests or obligations hereunder
without the prior approval of the other party hereto.  

 
        5.09  
Survival. The representations and warranties of the Seller and the Company
shall survive the Closing indefinitely.  

-4- 

 
        IN
WITNESS WHEREOF, the undersigned have duly executed this Agreement as of the date first
above written.  

 
Ocwen
Financial Corporation

 By  

/s/ RONALD M. FARIS
Ronald M. Faris
President  

 
Wishco,
Inc.  

 By   /s/ BARRY N. WISH

Barry
N. Wish
President  

-5-<PAGE>
EXHIBIT 10.1

                              PREPAYMENT AGREEMENT

THIS PREPAYMENT AGREEMENT ("Agreement") is made this 31st day of March, 2006, by
and between SUPERIOR GALLERIES, INC,. a Delaware corporation ("Borrower") and
the JOHN WESLEY ENGLISH LIVING TRUST (the "Trust"), with respect to the
following facts:

                                 R E C I T A L S

         A. The Trust is the successor to John Wesley English, who made certain
loans to the Borrower's predecessor-in-interest. As a result of those loans and
the succession by the Trust to the liabilities, obligations and rights of John
Wesley English, the Borrower is now indebted to the Trust in the principal
amount of $1,900,000, plus interest of $9,682.19 as of March 31, 2006 (the
"Indebtedness"). The Borrower is presently obligated to make monthly payments
with respect to such Indebtedness, with the entire unpaid balance being due and
payable September 1, 2006 (the "Maturity Date").

         B. The parties desire that the entire balance of the Indebtedness be
paid in the manner set forth herein, and that in connection therewith the
Borrower shall be released from any further obligation with respect to the
Indebtedness.

                                A G R E E M E N T

         NOW, THEREFORE, in consideration of the foregoing recitals and the
agreements to the parties contained herein, the parties do hereby agree as
follows:

1. PAYMENT.

On or before March 31, 2006, Borrower shall:

         (a) Deliver to the Trust rare and collectible coins ("Coins") having a
value, determined as set forth below, of One Million Dollars ($1,000,000);

         (b) Deliver to the Trust a certified or cashier's check in the amount
of $850,000; and

         (c) Deliver to the Trust a check in the amount of $9,682.19,
constituting accrued interest through March 31, 2006.

2. VALUATION OF COINS.

         The Coins shall be valued at their wholesale value as determined by a
valuation performed by Mr. Kevin Lipton. Each of the parties agrees to accept
the valuation placed on the Coins in this manner.

3. WAIVER AND RELEASE.

         The Trust agrees that effective upon its receipt of the consideration
described Section 1 above, the Indebtedness shall be paid in full, and upon such
receipt the Trust waives, releases and forever discharges Borrower from any
remaining obligations under or liability with respect to the Indebtedness, which
shall, accordingly, then be conclusively considered to have been paid in full.
The parties agree that the Trust's waiver of Fifty Thousand Dollars ($50,000) of
the principal amount of Indebtedness shall be in consideration of the Company's
agreement to prepay the Indebtedness at the time and in the manner described
herein. Accordingly, the Trust agrees that all security interests it holds in
collateral provided by the Borrower with respect to the Indebtedness are
terminated, and the Trust authorizes the Borrower to file appropriate
termination statements in all jurisdictions in which such security interests are
of record. The Trust further agrees that all guarantees with respect to the
Indebtedness are terminated as a result of the payments made pursuant to Section
1 above.

<PAGE>

4. MISCELLANEOUS.

         (a) GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of California.

         (b) COUNTERPARTS. This Agreement may be executed in two counterparts,
which taken together shall be deemed a single instrument. Executed copies of
this Agreement may be delivered by facsimile transmission, and delivery by such
means shall have the same effect as delivery of the executed original agreement.

         (c) ENTIRE AGREEMENT. This Agreement includes the entire agreement of
the parties concerning the subject matter hereof, and supersedes all prior
discussions or agreements concerning such subject matter.

         (d) AUTHORIZATION. Each of the parties hereby represents that such
party has been fully authorized by all necessary corporate or trust action, as
appropriate, in connection with the execution, delivery and performance of this
Agreement, and that this Agreement therefore constitutes such party's valid,
binding and enforceable agreement.

         IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the dates indicated opposite their names below.

                                        BORROWER:
Dated:  March 31, 2006                  SUPERIOR GALLERIES, INC,
                                        a Delaware corporation

                                        By: /s/ Paul Song
                                            -----------------------------------
                                            Paul Song, Vice President

                                        TRUST:
Dated:  March 31, 2006                  JOHN WESLEY ENGLISH LIVING TRUST

                                        By: /s/ Michael Verna
                                            ------------------------------------
                                            Michael Verna, Trustee

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