Document:

Exhibit No. 10.1

 

 

	
   

  	
  JAMES
  E. MAY

  
	
   

  	
  CHIEF
  ADMINISTRATIVE OFFICER

  
	
   

  	
  AND
  GENERAL COUNSEL

  
	
   

  	
  Telephone:
  (239) 443-1627

  
	
   

  	
  Telecopier:
  (239) 540-6501

  
	
   

  	
  Email
  address:

  
	
   

  	
  jamesmay@tigrent.com

  

 

	
  March 16,
  2010

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Robert
  T. Kiyosaki

  	
   

  	
  Mike
  Sullivan

  
	
  Rich
  Global, LLC

  	
   

  	
  Rich
  Dad Operating Company, LLC

  
	
  4430
  N. Civic Center Plaza, Suite 100

  	
   

  	
  4430
  N. Civic Center Plaza, Suite 100

  
	
  Scottsdale,
  Arizona 85251

  	
   

  	
  Scottsdale,
  Arizona 85251

  
	
   

  	
   

  	
   

  
	
  Steven
  C. Barre

  	
   

  	
  Charles
  W. Lotzar

  
	
  Tigrent
  Inc.

  	
   

  	
  Lotzar
  Law Firm, P.C.

  
	
  1612
  E. Cape Coral Parkway

  	
   

  	
  6263
  N. Scottsdale Road, Suite 216

  
	
  Cape
  Coral, Florida 33904

  	
   

  	
  Scottsdale,
  Arizona 85250

  

 

Re: Rich Dad Education, LLC
Restructuring

 

Gentlemen:

 

This
letter of intent (“LOI”) entered
into this March 16, 2010 among Rich Global,
LLC (“RG”), and Rich Dad Operating Company,
LLC (“RD”), on the one hand, and Tigrent Inc.
(“Tigrent”) on the other, and sets forth
the principal terms and conditions under which they will restructure their
relationship.  The parties shall use best
efforts to enter into definitive agreements that incorporate these terms and
such additional terms and conditions customary for agreements of this nature no
later than March 31, 2010.

 

In
summary, the following transactions between the parties are contemplated, and
shall be executed and delivered concurrently:

 

·                              Settlement
Agreement Related to Rich Dad Education, LLC;

 

·                              New
Rich Dad Operating Company, LLC License with Tigrent;

 

·                              Cooperative
Marketing and Advertising Agreement;

 

 

·                              Termination
of the Administrative Services Agreement between Tigrent Group Inc. and Rich
Dad Education, LLC;

 

·                             Termination
of the License Agreements between Rich Dad Education, LLC and (i) RG and (ii) Tigrent;

 

·                             Amendment
to the Rich Dad Education, LLC Operating Agreement for corrections related to
allocations;

 

·                             Issuance
of shares of Tigrent common stock and shareholder’s rights agreement; and

 

·                             Winding
up of Rich Dad Education, LLC.

 

A.                                    SETTLEMENT
AGREEMENT RELATED TO RICH DAD EDUCATION, LLC

 

I.                                         Parties:

 

(a)                                  Rich Global,
LLC (“RG”).

(b)                                Tigrent Inc. (“Tigrent”).

(c)                                  Rich Dad
Education, LLC (“RDE”).

(d)                                Rich Dad
Operating Company, LLC (“Rich Dad”), as
a consenting party and intended third-party beneficiary with respect to certain
rights established within this Agreement.

 

II.            Effective Date:  upon execution.

 

III.           Material Terms
to be included in the definitive agreement related to settlement (the “Definitive Settlement Agreement”):

 

(A)                               Equity Grant:  RG to receive an award of equity in Tigrent
which shall equal 9.9% of the
Tigrent’s outstanding common stock on as converted basis (if applicable).  Once the shares are issued to RG, RG shall
promptly file on its behalf a Form 13 D
filing, indicating that RG holds in excess of 5%
of the outstanding shares in Tigrent. 
Tigrent shall reimburse RG for certain of RG’s expenses in connection
with this filing as more specifically set forth in Section A.IV.1.(d) of
this letter.  The stock will be subject
to a shareholder rights agreement, which will include piggy back rights and
demand rights exercisable after January 1, 2011.  RDE shall redeem RG’s entire membership
interest in RDE (49%) in exchange for RDE’s distribution
to RG of the Data Base (as defined below) free and clear of any liens or
encumbrances.

 

(B)                               Customer
Database:  All
capitalized terms in this section will have the definition provided to it in
the Operating Agreement.  The “Data Base” means the Data Base referenced in Section 2.8
of the Operating Agreement.

 

Pursuant to Section 2.8.3 of the Operating Agreement, upon
dissolution of RDE, each Member is to be deemed a joint owner of any leads
contributed by the 

 

 

Company (the “Leads”). In
consideration for all the other provisions contained in this settlement, the
parties agree that upon execution of the Definitive Settlement Agreement: (a) RG will be the sole owner of the leads contributed
to the Data Base by the Company so long as RG uses and discloses each lead in
conformance with the privacy policy under which it was collected and all
applicable law and (b) Tigrent
forfeits its rights in the Leads and will have access to and use the Leads
solely as permitted by the Cooperative Marketing and Advertising Agreement
contemplated by Section C of this LOI. 
RG assumes responsibility for and will comply with all current and
future laws, rules, regulations and official guidelines regarding the
distribution of the Data Base to RG as contemplated herein or the use or
disclosure of any information within the Data Base, including any use or
disclosure by RG to Tigrent or PEI (as defined below).

 

(C)                               Cooperative
Marketing and Advertising Agreement. Tigrent and Rich Dad will
enter into, and shall use best efforts to join Legacy Learning, LLC, a Delaware
limited liability company, dba Professional Education Institute (“PEI”) in, a cooperative marketing and advertising agreement
(the “Cooperation Agreement”) that aligns the
interests of all 3 companies that are core to the
Rich Dad brand.  The intent of the
Cooperation Agreement is to create and implement a cross-company marketing
strategy that is transparent, creates a seamless experience for Rich Dad
customers and is fair to all the partners. 
See Section C below for more
information.

 

(D)                               New Rich Dad Operating Company, LLC
License.  Tigrent, as licensee, and Rich Dad, as
licensor, will enter into a new content and license trademark license agreement
(the “2010 License Agreement”).  See Section B
below for more information.

 

(E)                                 RG Specific Release.  RG on behalf of itself, Robert T.
Kiyosaki, Kim Kiyosaki, CASHFLOW Technologies, Inc., Rich Dad, and their
affiliates, past, present and future officers, directors, shareholders, parent
corporations, subsidiary corporations, agents, attorneys, and employees (the “RG Parties”) hereby fully and forever release, remise and
discharge RDE, Tigrent, its past, present and future officers, directors,
shareholders, parent corporations, subsidiary corporations, agents, attorneys,
and employees (each a “Tigrent Party”),
of and from certain claims and demands arising out of the relationship between
the parties, any agreement executed between the parties, including the
Administrative Services Agreement, the WIN License Agreement, the Rich Dad
Operating Agreement and the Rich Dad License Agreement (each as defined below),
which are specifically limited to: any and all such claims and demands directly
or indirectly, known or unknown, suspected or unsuspected but arising out of
claims and demands previously made by RG related to (each of the following are
individually and collectively referred to herein as the “RG Claims”):

 

(i)                                    past legal,
accounting, financial advisory fees incurred by RG for which RG did not obtain
reimbursement of approximately $545,175,

 

(ii)                                past costs
related to the operation of RDE for which RG did not obtain reimbursement $37,900,

 

 

(iii)                            and the release
of specified Claims related to the operations of RDE approximately $10,050,000, detailed as follows:

 

(a)                      Rich Global had been
underpaid $1,050,339 in royalties as of the date
of the Notice;

 

(b)                     Whitney Education Group (“WEG”) has failed to ensure that state sales tax payments are
made on a timely basis, subjecting RDE to penalties in addition to the tax
payments;

 

(c)                      WEG had been overpaid in
excess of $4,000,000 in management fees as of the
date of the Notice pursuant to the only effective agreements in place;

 

(d)                     The offset credit of $5,000,000 that WEG claimed against RDE for fulfilling RDE’s
obligation to students who do not attend the seminars for which they paid by
sending those students DVDs of the course materials;

 

(e)                      allegations of brand damage
in an unspecified amount; and

 

(f)                        any and all claims alleged
by RG in its purported letter of default dated March 27,
2009.

 

Notwithstanding
the specific nature of the release of the Claims, this Section will
not apply to any Claims for indemnification or contribution based on or arising
out of Claims made by the Learning Annex.

 

Covenant Not to Sue.  RG, on behalf of itself and each RG Party,
covenants not to sue or to initiate any legal or administrative proceeding
against any Tigrent Party with regard to any or all of the RG Claims released
in this Agreement.

 

(F)                                 Tigrent General
Release.  Tigrent, on behalf of itself
and the Tigrent Parties, hereby fully and forever releases, remises and
discharges the RG Parties, of and from any and all claims and demands of every
kind and nature, known and unknown, regarding the RG Parties, or arising out of
the relationship between the parties, any agreement executed between the
parties, including the Administrative Services Agreement, the WIN License Agreement,
the Rich Dad Operating Agreement and the Rich Dad License Agreement, or arising
out of any liability due or fees and expenses owed by any RG Party to any
Tigrent Party at any time prior to and including the execution date hereof,
suspected and unsuspected, disclosed and undisclosed, including, without
limitation, with respect to all claims and demands for breach of contract,
promissory estoppel, detrimental reliance, fraud, and misrepresentation, and
for any and all damages actual and consequential, past, present and future,
claims for attorneys fees, and all other forms of relief (the “Tigrent Claims”).

 

 

Notwithstanding
the general nature of the release, this Section will
not apply to any claims for indemnification or contribution based on or arising
out of claims made by the Learning Annex.

 

Covenant Not to Sue.  Tigrent, on behalf of itself and each Tigrent
Party, hereby covenants not to sue or to initiate any legal or administrative
proceeding against any RG Party with regard to any or all Tigrent Claims
released in this Agreement.

 

(G)                               Student
Fulfillment.  Tigrent
retains sole responsibility for fulfillment of the student coursework,
including but not limited to the student course work related to RDE.  Tigrent agrees to fulfill all student course work
required by those students who paid for RDE basic training, Rich U or Tigrent’s
Advanced Training.  Further, Tigrent
covenants and agrees that, subject to the provisions of Section B
(V) of this Letter of Intent and the attainment of the Reserve
Goal set forth therein, it will maintain a cash position of not less than 30% of its deferred revenue, so as to have
ample funds to address student fulfillment.

 

(H)                               Termination of
Agreements.  The parties
agree to terminate the following agreements in connection with the execution
and delivery of this Settlement Agreement:

 

(i)                              the
Administrative Services Agreement by and between Tigrent Group Inc. formerly
known as Whitney Education Group, Inc. and RDE dated July 18, 2006, as amended, if any (the
“Administrative Services Agreement”).

 

(ii)                                the License
Agreement by and between Tigrent formerly known as Whitney Information Network, Inc.,
as licensor and RDE, as licensee dated July 18,
2006, as amended, if any (the “WIN License Agreement”).

 

(iii)                            the License
Agreement by and between RG as licensor and RDE as licensee dated July 18, 2006 (the “Rich Dad
License Agreement”).  Any
Royalties due and owing as of the termination date shall paid payable to RG by
RDE in accordance with the royalty rates set forth in the 2010 License
Agreement.

 

(I)                                    Winding Up and
Dissolution of RDE.  Tigrent
agrees to take reasonable steps to promptly wind up and dissolve RDE.  The
parties agree that RDE will conduct no new business of any form.

 

Tigrent acknowledges that 1 of the
effects of the redemption of RG’s interest in RDE is that Tigrent would retain
any and all liabilities related to the operation of RDE.  Prior to the dissolution of RDE, Tigrent
shall (a) assume RDE’s
outstanding debts and liabilities, including but not limited to those
obligations and duties related to fulfillment of student course work and (b) transfer, deposit assign or
otherwise designate all funds from the accounts of RDE into Tigrent accounts.

 

 

(J)                                 Transfer of Rich Global interest to Tigrent.  In
consideration, for the issuance of the Tigrent Stock Grant, RG will transfer
its membership interest in RDE to RDE.

 

(K)                               Tigrent Board
of Directors; Consultation Right on Certain Hires.  Tigrent will consult with
Rich Dad prior to hiring any C.E.O., C.F.O., or any officer that reports
directly to the C.E.O.  All information
disclosed as part of the search will be considered Tigrent Confidential
Information.

 

(L)                                Amendment to
Operating Agreement.  The
Operating Agreement shall be amended as follows:

 

(i)            Built In Gain Property.  The Members hereby acknowledge and agree that
they have not contributed any property to a company where the Internal Revenue
Code (the “Code”)  Section 704 (b) book value of the property differs from the
contributing partner’s adjusted tax basis in such property.  There is no property contributed to the
company with built-in gains or built-in losses are commonly known as “Section 704 (c) property.”

 

(ii)           Amendment and Restatement of Section 3.1. 
Section 3.1 shall be deleted in
its entirety and replaced with the following:

 

3.1          Distributions.  Except as expressly set forth in Section 9 or as otherwise proved below, and subject to
the provisions of Section 2.7 hereof,
Members have no right to receive, demand or expect any distributions of cash or
property prior to dissolution.  Each
calendar quarter, the Manager shall determine in its reasonable judgment Net
Cash Flow, if available, which shall be distributed to the Members, which
distributions of Net Cash Flow shall be made in the following priority:

 

First, proportionate to their respective Unreturned
Capital Contributions until each Member’s Unreturned Capital Contribution has
been reduced to zero (the parties hereto
acknowledge that as of the date of this Operating Agreement, Unreturned Capital
Contributions for each Member is zero);

 

Second, to the Members until their pro rata portion of
their capital accounts are equal to the percentage of profits interest as set
forth on Exhibit A of all capital account
balances.

 

Third, Net Cash Flow shall be distributed to all Members
based on their percentage of profits interest as set forth on Exhibit A.

 

Such
distributions, if any, shall be made at the times and in the amount and manner
set forth in writing in a resolution of the Manager.  Such distributions, if any, shall be in cash,
as determined by the Manager and shall be made within 60 days
following the end of each calendar quarter during which such Net Cash Flow is
available.

 

(iii)         Amendment and Restatement of Section 4.1. 
Section 4.1 shall be deleted in
its entirety and replaced with the following:

 

 

 

4.1          Allocation
of Profits and Losses.

 

4.1.1       Profits shall be allocated and credited
to the Capital Accounts of the Members as follows and in the following order of
priority:

 

First, among the
Members in an amount equal to the Losses, if any, allocated to their Membership
Interests pursuant to Section 4.1.2
and not previously offset by Profits allocated to their Membership Interests
pursuant to this Section 4.1.1.  The Profits allocated pursuant to this Section 4.1.1 shall be allocated among such Members to
offset Losses on a year-by-year basis, with the Profits first offsetting the
Losses allocated in the year most recent to the year of such Profits allocation
and then to offset Losses in the preceding years with the most recent Losses
being offset first in the proportion that each such Member’s allocable share of
the Losses for each such years bears to the total Net Loss allocated for such
year; and

 

Second, to such
Members, in proportion to their Profits Interest set forth on Exhibit A.

 

4.1.2       Losses for each year shall be allocated
and charged to the Capital Accounts of the Members as follows and in the
following order of priority:

 

First, among the
Members in an amount equal to the Profits previously allocated to the Members
and not previously offset by losses allocated pursuant to this Section 4.1.2. 
The Losses allocated pursuant to this Section shall
be allocated between the Members to offset Profits on a year-by-year basis,
with the Losses first offsetting the Profits allocated in the year most recent
to the year of such Profit allocation and then to offset Profits in the
preceding years, with the most recent Profit being offset first in the
proportion that each Members’ allocable share of the Profits for such year
bears to the total Profits allocated for such year;

 

Second, among such
Members in an amount up to but not exceeding such Member’s positive Capital
Account in the proportion that each such Member’s Capital Account bears to the
aggregate Capital Accounts of all such Members;

 

Third, among such
Members in an amount up to be not exceeding their at-risk basis in their
Membership Interest under Code Sections 704(d) and
465 (which would permit the Members
with at-risk basis to incur negative capital accounts);

 

Fourth, any suspended
Losses which have been allocated to a Member for which a Member has no at-risk
basis and for which the suspended Losses have been carried over to another year
in which the Member has no at-risk basis, and if such other Member has at-risk
basis, such Loss shall be reallocated from the Member which has no at-risk
basis to the Member which has the at-risk basis; and

 

 

Thereafter, to such Members, in proportion to their Profits
Interest set forth on Exhibit A.

 

(M)         Recitation of
Prior Tax Status.  Tigrent
managed the prior business as Manager, and served as tax matters partner in
that capacity.  Rich Global, LLC did not
have any authority to change or vary those decisions.

 

(N)          Tax Matters.

 

1.1.         The Parties
hereby agree that effective February 28, 2010,
at 11:59 p.m., that RG has withdrawn
as a Member of RDE and that Tigrent, after such date is the sole member of
RDE.  From and after such date, RG shall
not be allocated any items of income, loss or credit from the business or
operations of RDE.

 

1.2.         The Parties
acknowledge and agree that Tigrent has served as the Tax Matters Member in
connection with RDE.  The Tax Matters
Member was and is authorized and empowered to act for and represent RDE and
each of its members before the Internal Revenue Service in any audit or
examination of any RDE tax return and before any court selected by the Tax
Matters Member for judicial review of any adjustment assessed by the Internal
Revenue Service (“IRS”).  The Parties specifically acknowledge that the
Tax Matters Member shall be liable to RG for any loss, damage, liability or
expense suffered by RG on account of any failure or action taken or omitted to
be taken by the Tax Matters Member in his or her capacity as “Tax Matters Member” or in the preparation of tax returns, if
the Tax Matters Member has not discharged his or her duties as “Tax Matters Member” in good faith and in the best interest
of RG and RDE.  All reasonable
out-of-pocket expenses incurred by the Tax Matters Member in his or her
capacity as such shall be considered expenses of RDE for which the Tax Matters
Member shall be entitled to full reimbursement. 
No reimbursement shall be due or owing from RG in connection with
Tigrent acting as a Tax Matters Member. Nothing in this Section 1.2
shall limit the ability of the Members to take any action in their individual
capacity relating to tax audit matters that is left to the determination of an
individual member under Code Sections 6222-6232.

 

1.3.         Tax
Returns/Representations and Warranties. 
Tigrent and the Tax Matters Member hereby represent and warrant to RG
that:

 

(a)           RDE
has filed or caused to be filed (on a timely basis since 2006)
all federal, state and local income, employment and other tax returns (“Tax Returns”) that are or were required to be filed by or
with respect to the business and operations of RDE pursuant to applicable
state, local and federal laws (“Legal Requirements”).   Tigrent and the Tax Matters Member have
delivered to RDE true and correct copies of all federal and state income Tax
Returns filed since 2006.  RDE has paid, or made provision for the
payment of, all taxes that have or may have become due by RDE pursuant to the
Tax Returns or otherwise (“Taxes”), or
pursuant to any assessment received by RDE and Tigrent, except such Taxes, if
any, which are being contested in good faith and as to for which adequate
reserves (determined in accordance with GAAP) have been provided and have
provided true, correct and accurate Form K-1’s to
its members.

 

(b)           The
United States federal and state income Tax Returns of RDE subject to the Taxes
have been audited by the IRS or are closed by the applicable statute of
limitations for federal tax purposes for all taxable years through 2005.  No audits are
being contested as of the 

 

 

date hereof. 
Tigrent and the Tax Matters Member have not been given any notice of any
audit or adjustments to the United States federal income or state Tax Returns
filed by RDE and RDE has not given or been requested to give waivers or extensions
(or is or would be subject to a waiver or extension given by any other person)
of any statute of limitations relating to the payment of taxes of RDE or for
which RDE may be liable.

 

(c)           There
exists no proposed tax assessment against RDE. 
No consent to the application of Section 341(f)(2) of
the Internal Revenue Code has been filed with respect to any
property or assets held, acquired, or to be acquired by RDE. All taxes that RDE
is or was required by Legal Requirements to withhold or collect have been duly
withheld or collected and, to the extent required, have been paid to the proper
governmental body or other person.

 

(d)           All
Tax Returns filed by RDE are true, correct, and complete other than federal and
state amended returns for 2007 to be
filed.

 

(e)           As
of the end of 2008, RG’s tax capital account was
($2,142,240) of which ($565,938) resulted from tax losses from operations, which
losses were suspended for tax purposes because of the at-risk provisions of the
IRC (“Suspended Losses”).  $1,576,302 was
a withdrawal or distribution in 2008 for which
no income was allocated to RG as a result of such withdrawal or distribution.

 

(f)            As
of the end of 2009 for the period commencing January 1, 2009 and ending December 31,
2009 (“2009 Tax Period”),
RG’s tax capital account is estimated to be ($2,398,405)
of which an additional ($0) resulted
from losses from operations, which losses were suspended for tax purposes
because of the at-risk provisions of the IRC and $256,165
was a withdrawal or distribution in 2009 for which
no income was allocated to RG as a result of such withdrawal or distribution.

 

(g)           As
of February 28, 2010 for the period
commencing January 1, 2010 and ending February 28, 2010 (“2010 Stub Period”), RG’s tax capital account immediately
prior to the redemption of its units is estimated to be ($1,832,467)
of which the $565,938 increase resulted from a
reallocation of income to restore the full amount of tax losses previously
allocated to RG that were greater than the member’s at-risk basis.  RG has no obligation to restore the negative
capital account in RDE.

 

1.4.         Notwithstanding
the foregoing,

 

1.4.1.      The parties hereto acknowledge that no
allocations of taxable income, gain and loss from RDE on Form K-1(s) shall
be made to RG after the 2010 Stub
Period. 
No taxable income or gain shall be allocated to RG from RDE for the 2009 Tax Period and for the 2010
Stub Period except in connection with any: (i) failure to restore RG’s capital account or make up
a deficit in its capital account, or (ii) income
recognized as a result of any curative or remedial allocations under Internal Revenue Code Regulations  1.704-3(c)(1) and
1.704-3(d).  Notwithstanding the forgoing, if
any such allocations of taxable income or gain, are made for the 2009 Tax Period, the 2010 Stub
Period or pursuant to any amended return for any prior period, which income or
gain exceeds the suspended losses of RG as of the end of the Stub Period, or
thereafter, Tigrent shall remit to RG, upon issuance of the K-1(s), the amount of any tax liabilities (including tax,
interest or penalty) incurred by RG for such period, based upon a presumed 45% combined federal 

 

 

and state income tax rate. Any and all other items of income or gain, other than the qualified
income offset,  for RDE for the 2009 Tax Period and for the 2010
Stub Period for the qualified income offset, and thereafter, shall be allocated
to Tigrent.    With respect to the 2009 Net Taxable Income (Loss) allocated to RG, such
allocation shall be made by September 15, 2010
and with respect to the 2010 Stub
Period Taxable Income (Loss) allocated to RG, such allocation shall be made by November 15, 2010.

 

1.4.2.      RG shall have the right to review, comment
and approve (such approval shall not be unreasonably withheld) the Form 1065 and on all Form K-1s
in which any income or loss from RDE is allocated to RG 10 business days before they are issued for
the 2009 Tax Period and for the 2010 Stub Period. 
Also, RG shall have the right to review, comment and approve (such
approval shall not be unreasonably withheld) on all amended Form K-1s, or amended tax returns, for any prior tax
years in which RG is allocated income, loss or gain from RDE 10 business days before they are issued.  If RG shall disagree with and Form 1065, Schedule
K-1s, or amendments thereto, it shall notify the Tax Matters Member
and Tigrent of such disagreement in writing within 30 days
after delivery of the Schedule K-1s, Form 1065
or amendments thereto, which notice shall set forth in reasonable detail
the particulars of such disagreement.  If
RG fails to provide such a notice of disagreement within such 30 -day period, then RG shall be deemed to have accepted the
Schedule K-1s, Form 1065
or amendments thereto and the Schedule
K-1s, Form 1065 or amendments thereto
delivered by the Tax Matters Member and Tigrent shall be final, binding and
conclusive for all purposes hereunder. 
If any such notice of disagreement is timely provided by RG, then the
Tax Matters Member, RG and Tigrent shall use their reasonable best efforts for a
period of 30 days (or such longer period as they
may mutually agree) to resolve any disagreements with respect to the Schedule K-1s, Form 1065 or
amendments thereto.  If, at the
end of such period, they are unable to resolve such disagreements, then the division
of McGladrey & Pullen, LLP responsible for, and familiar with,
preparing tax returns for corporations and other entities (or such other
independent accounting firm of recognized national or regional standing as may
be mutually selected by the Tax Matters Member, RG and Tigrent) (the “Tax Firm”) shall resolve any remaining disagreements
relating to the Schedule K-1s, Form 1065
or amendments thereto.  The Tax
Firm shall determine, as promptly as practicable, but in any event within 60 days of the date on which such dispute is referred to the
Tax Firm, based solely on written submissions forwarded by the Tax Matters
Member, RG and Tigrent to the Tax Firm within 10 business
days following the Tax Firm’s engagement and such other information
that the Tax Firm reasonably requests in order to resolve the issues in such
written submissions, whether and to what extent (if any) the Schedule K-1s, Form 1065 or
amendments thereto require adjustment. 
The Tax Matters Member and Tigrent shall provide the Tax Firm access to
the employees, books and records of RDE to the extent necessary or requested by
the Tax Firm for the purpose of the Tax Firm making its determination.  The determination of the Tax Firm shall be
final, conclusive and binding on the parties

 

1.4.3.      Tigrent and the Tax Matters Member shall
provide to RG, within 15 business days
after receipt by Tigrent and the Tax Matters Member, copies of all IRS notices
or adjustments relating to RDE.  In
addition, except as may be prohibited by applicable law, Tigrent, the Tax
Matters Member and RG agree to make available to the other at the requesting
party’s sole expense any of the RDE’s records in the non-requesting party’s
custody or control for the purpose of preparing any tax return or 

 

 

preparing for or defending any tax related examination of the
requesting party by any governmental authority. 
The party requesting such record shall reimburse the non-requesting
party for out-of-pocket costs and expenses incurred by the non-requesting
party.  The non-requesting party shall
afford access to records during normal business hours and upon not less than 5 business days prior request, shall be
subject to such reasonable limitations as the non-requesting party may impose
to delete competitively sensitive information and shall not extend to any
information subject to a claim of privilege unless expressly waived by the
party entitled to claim the privilege. 
Access to records pursuant to this Subsection
1.4.3 shall be subject to the confidentiality provisions of Section 1.4.4.  The Parties shall make such requests set
forth above pursuant to the notice provisions set forth in the Definitive
Settlement Agreement.

 

1.4.4.      The Parties agree as follows: (a) with respect to tax returns not yet filed with the
IRS or any state relating to the 2009 Tax Period
and for the 2010 Stub Period, the Parties will
file their returns consistent with K-1s prepared
by Ehrhardt Keefe Steiner & Hottman PC,  which are consistent with the terms and
conditions of this Agreement, and will not take positions with the IRS or state
tax authorities which are inconsistent with such K-1s
(this assumes that any differences between the returns and drafts provided are
agreed to by the parties), and (b) with
respect to tax returns filed for tax years prior to the 2009
Tax Period, the Parties will not
take any positions with the IRS or state tax authorities which are inconsistent
with the Form K-1s filed for the Companies
for those years.  The Parties are aware
of the income tax consequences of the allocations made by this Agreement and
the economic impact of the allocations on the amounts receivable by them under
this Agreement.  Each Party agrees not
take a position on his, her or its own tax return that is inconsistent with a
position taken on the Company’s tax return. 
A Party’s filing of a tax return containing such an inconsistent
position shall constitute a breach of this Agreement.  Any Party breaching this Agreement shall be
required to hold each of the Companies and the other Parties harmless for, from,
and against any and all costs, liability and damages that they may incur
(including, but not limited to, incremental tax liability and attorneys’ fees
and expenses) as a result of such breach, but net of any tax benefit inuring to
the Indemnified Party.

 

1.4.5.                  The parties agree that no
deferred gain shall be allocated to RG relating to assets described in Section 751(a) of the  Internal
Revenue Code.

 

IV.                    General Provisions: 
The Definitive Settlement Agreement shall have the following provisions:

 

1.             Representations & Warranties:

 

a.                                     That the execution, delivery and
performance of this Agreement and of any other documents contemplated by this
Agreement to which it is a party, and the consummation of the transactions
contemplated hereby and thereby, have been duly authorized, and each of and all
such agreements have been duly executed and when delivered by it, will
constitute the valid and binding obligations of such party.

 

b.                                     Neither the execution, delivery or
performance of this Agreement nor the consummation of the transactions
contemplated hereby will violate, conflict with or require any notice or
consent under any certificate of incorporation or bylaws,

 

 

or articles of
organization or operating agreement, if applicable, or any applicable law or
statute or any agreement or obligation by which by which the parties are bound.

 

c.             Investment Representations. 
RG understands that the equity securities have not been registered under
the Securities Act.  RG also understands
that the Equity securities are being offered and sold pursuant to an exemption
from registration contained in the Securities Act based in part upon RG’s
representations contained in this Agreement. 
RG hereby represents and warrants as follows:

 

(i)            RG
Bears Economic Risk.  RG has
substantial experience in evaluating and investing in the securities of
companies similar to Tigrent so that it is capable of evaluating the merits and
risks of its investment in Tigrent and has the capacity to protect its own
interests.  RG must bear the economic
risk of this investment indefinitely unless the equity securities are
registered pursuant to the Securities Act, or an exemption from registration is
available.  RG understands that Tigrent
has no present intention of registering the equity securities.  RG also understands that there is no
assurance that any exemption from registration under the Securities Act will be
available and that, even if available, such exemption may not allow RG to
transfer all or any portion of the equity securities under the circumstances,
in the amounts or at the times RG might propose.

 

(ii)           Acquisition
for Own Account.  RG is
acquiring the equity securities for RG’s own account for investment only, and
not with a view towards their distribution.

 

(iii)         RG Can Protect Its Interest.  RG represents that by reason of its, or of
its management’s, business or financial experience, RG has the capacity to
protect its own interests in connection with the transactions contemplated in
this Agreement.  Further, RG is aware of
no publication of any advertisement in connection with the transactions
contemplated in this Agreement.

 

(iv)          Accredited Investor.  RG represents that it is
indirectly wholly-owned, and controlled by, accredited investors within the
meaning of Regulation D under the Securities Act.

 

(v)            Company
Information.  RG has had
an opportunity to discuss Tigrent’s business, management and financial affairs
with directors, officers and management of Tigrent.  RG has also had the opportunity to ask
questions of and receive answers from, Tigrent and its management regarding the
terms and conditions of this investment.

 

(vi)          Rule 144.  RG
acknowledges and agrees that the equity securities are “restricted
securities” as defined in Rule 144 promulgated under the
Securities Act as in effect from time to time and must be held indefinitely
unless they are subsequently registered under the Securities Act or an
exemption from such registration is available. 
RG has been advised or is 

 

 

aware
of the provisions of Rule 144, which permits limited resale of shares
purchased in a private placement subject to the satisfaction of certain
conditions, including, among other things: 
the availability of certain current public information about Tigrent,
the resale occurring following the required holding period under Rule 144
and the number of shares being sold during any 3-month
period not exceeding specified limitations.

 

(vii)         Residence.  RG is a limited liability company and the
offices in which its investment decision was made is located at the following
address:

 

4330 North Civic Center Plaza

Suite 100

Scottsdale, Arizona  85251

 

d.             Registration Rights.

 

Demand Rights: Commencing January 1, 2011, if RG request that
the Company file a Registration Statement covering the registration of all of
the equity securities issued to RG pursuant to the transactions contemplated
hereby, Tigrent will use its best efforts to cause such shares to be
registered.  Tigrent shall have the right
to delay such registration under certain circumstances for 1
period not in excess of 90 days in
any 12 month period.

 

Company Registration: 
RG shall be entitled to “piggy-back”
registration rights on all registrations of Tigrent or on any demand
registrations of any other investor subject to the right, however, of Tigrent
and its underwriters to reduce the number of shares proposed to be registered
pro rata in view of market conditions.

 

Expenses:  Tigrent shall reimburse RG for expenses it
incurs with respect to such registration, including but not limited to filing
costs associated with RG’s filing of its Form 13 D and the reasonable fees
and expenses of special counsel (but exclusive of underwriting discounts and
commissions) in an aggregate amount not to exceed $20,000.

 

Other Provisions:  Other provisions shall be contained in a
definitive investor rights agreement with respect to registration rights as are
reasonable, including cross-indemnification, the period of time in which the
registration statement shall be kept effective, and underwriting
arrangements.  There will not be any
additional Lock—Up Provisions.

 

2.             Indemnification. 
Each of the Parties shall indemnify and hold harmless the other, and the
other’s affiliates, from and against any loss, cost, damages and expenses
arising from the party’s breach of any statute, regulation, ordinance or other
law in connection with the performance of its duties assumed herein.

 

3.             Cooperation. 
Each of the Parties will, from time-to-time, execute, acknowledge, and
deliver, or cause to be executed, acknowledged, and delivered, such further
instruments as may be reasonably required for the carrying out of the intention
of or facilitating the performance of 

 

 

this Agreement.

 

4.             Joint Press Release. 
The Parties agree to issue the joint press release in the form of Exhibit A attached hereto.

 

5.             Domain Name Assignment Agreement. 
Tigrent shall assign to Rich Dad the “Rich Dad
Education” domain name as provided in Exhibit B.

 

6.             Binding Effect. 
This Agreement shall be binding on and inure to the benefit of the
successors, heirs, representatives, or assigns of the Parties hereto.

 

7.             No Admission of Wrongdoing. 
This Agreement does not constitute an admission that any of the Parties
or any person or entity violated any local, state, or federal ordinance,
regulation, ruling, statute, rule of decision, or principle of common law,
or that any of the Parties or any person or entity engaged in any improper or
unlawful conduct or wrongdoing.  By
entering into this Agreement, no Party admits any liability or wrongdoing to
another Party, nor shall this Agreement be considered as an admission of
liability, nor shall any Party characterize this Agreement as an admission of
liability.

 

8.             Severability. 
The Parties have fully negotiated all of the provisions of this
Agreement.  In the event there is
litigation involving this Agreement and the court concludes that provisions in
this Agreement are unenforceable for whatever reason, the court shall have the
authority to modify the provisions to make said provisions enforceable, if
possible, as set forth in this Agreement or otherwise.  Further, the unenforceability or invalidity
of any provision shall not affect the enforceability of the other provisions.

 

9.             Voluntary and Knowing Agreement. 
The Parties enter into this negotiated agreement freely and voluntarily
with full and complete knowledge of the meaning and legal significance of the
terms of this Agreement.  The Parties
have had an opportunity to discuss each provision of this Agreement with
independent legal counsel and the terms are fully understood and voluntarily
accepted by each of them.

 

10.          Entire Agreement. 
This Agreement represents and contains the entire Agreement and
understanding between the Parties with respect to the subject matter hereof and
supersedes any and all prior and oral and written agreements and understandings
with respect to the subject matter hereof. 
No inducement, representation, warranty, condition, understanding or
agreement of any kind with respect to the subject matter hereof shall be relied
upon by the Parties unless expressly set forth herein.  This Agreement may not be amended or modified
except by an agreement in writing signed by the Party against whom the enforcement
of such modification is sought.

 

11.          Choice of Law. 
This Agreement and the rights and obligations of the Parties hereunder
shall be governed by and construed in accordance with the laws of the State of
Arizona, without respect to its conflict of law provisions.  Each Party hereto hereby irrevocably submits
to the jurisdiction of any United States District Court or Maricopa County
Superior Court sitting in Maricopa County, Arizona, and agrees that such courts
shall be the exclusive forums for the resolution of disputes between the
Parties under this Agreement.  In the
event of any dispute between the Parties regarding this Agreement, the
prevailing Party shall be entitled to collect 

 

 

attorneys’ fees, costs, and other
expenses from the other Party or Parties to the dispute.

 

12.          Headings. 
The descriptive headings of the paragraphs and subparagraphs of this
Agreement are intended for convenience only, and do not constitute parts of
this Agreement.

 

13.          Counterparts. 
This Agreement may be executed simultaneously in 2
or more counterparts, each of which will be deemed an original, but all of
which together will constitute one and the same instrument.

 

14.          Compliance with Applicable Laws. 
Each of the parties hereto will use reasonable efforts to comply with
all applicable federal and state laws, rules and regulations.

 

15.          Notice.  All notices or other communication concerning
this Agreement shall be provided, in writing, to the address below.  Notice shall be deemed received: (a) when delivered,
if hand delivery; (b) upon return receipt, if sent
certified mail with return receipt; (c) upon confirmation of successful
delivery, if by facsimile transmission; (d) 3  business days after mailing, if sent regular mail.  A Party may change notice address information
by delivering a notice with such information in compliance with this Section.

 

16.          The addresses for notice are:

 

To Rich Dad:

 

Rich Dad Operating Company, LLC

Attention:  Neil R. Dubé, General
Counsel

4330 North Civic Center Plaza

Suite 101

Scottsdale, Arizona  85251

Facsimile:  (480) 348-1439

 

With a copy to:

 

Charles W. Lotzar

Lotzar Law Firm, P.C.

6263 North Scottsdale Road, Suite 216

Scottsdale, Arizona  85250

Facsimile:  (480) 905-0321

 

To Tigrent:

 

Tigrent Inc.

Attention:  James E. May, Chief Administration Officer

and General Counsel

1612 E. Cape Coral Parkway

Cape Coral, Florida  33904

Facsimile:  (239) 540-6501

 

 

With a copy to:

 

Cooley Godward Kronish LLP

Attention:  Eric Tobias, Special
Counsel

One Freedom Square, Reston Town Center

11951 Freedom Drive

Reston, Virginia  20190-5656

Facsimile:  (703) 456-8100

 

17.          Survival.  Sections       , and        through        of this Agreement and
any other provisions which in accordance with its terms is intended to survive
this Agreement will survive and shall continue in full force and effect
thereafter.

 

 

B.            RICH
DAD OPERATING COMPANY, LLC LICENSE WITH TIGRENT INC. (the “2010 License”)

 

I.              Parties:

 

	
  (a)

  	
   

  	
  Rich
  Dad Operating Company, LLC (“Rich Dad”) as
  Licensor.

  
	
  (b)

  	
   

  	
  Tigrent
  Inc. (“Tigrent”) as Licensee.

  
	
  (c)

  	
   

  	
  Rich
  Global, LLC (“RG”) as a consenting party as it
  relates to the use of the Data Base.

  

 

II.            Date:  March      ,
2010:

 

III.          Definitions.  The terms used herein have the following
meanings:

 

(a)           “Gross
Revenue” means revenue actually received by Tigrent directly or
indirectly related to the Rich Dad Education Business, specifically including
any funds received on promissory notes collected from students, but excluding
any merchant fees, taxes, shipping, refunds (e.g., returns, right of recession,
NSF checks, and credit card chargebacks), rebates, bad debt and any sums paid
to PEI.

 

(b)           “Rich Dad
Education Business” means the business to be undertaken by Tigrent
pursuant to the Rich Dad License based on students whose contact information
was obtained directly or indirectly in connection with the Rich Dad brand and
the Rich Dad Business includes all forms of revenue subsequently obtained by
Tigrent from such students, including but not limited to revenue from the Rich
Dad Basic Training, Rich U, Tigrent Advanced Training, Tigrent mentoring,
Tigrent subscription services, and the like.

 

(c)           “Royalty Fee”
means either the Current Royalty Payments or the Fulfillment Royalty Payments,
as applicable.

 

(d)           “Royalty Rate”
means: (a) during the Reserve Replenishment Period, 8% of Gross Revenues which is due and
payable as Current Royalty Payments and Fulfillment Royalty Payments and (b) after
the Reserve Replenishment Period, 10% of Gross
Revenues, which is due and payable as the Post-Reserve Goal Royalty Payments.

 

(e)           “Current Royalty Payments” means Tigrent’s monthly payments to
Rich Dad in an amount equal to 3% of Gross
Revenues.

 

(f)            “Fulfillment Royalty Payments” means Tigrent’s monthly payments
to Rich Dad based on actual student course fulfillment or student contract
breakage in an amount up to 5% of
Gross Revenues associated with the applicable student’s contract which were the
subject of the course fulfillment or student contract breakage.  Until the Reserve Goal is achieved and
maintained, all Fulfillment Royalty Payments shall be deposited into the
Reserve Account and such amounts shall be deemed to be still owing to Rich Dad
as provided in Section V(c) (distribution
of excess funds from Reserve Account).

 

(g)           “Post-Reserve
Goal Royalty Payments” means the royalty that is due and payable to
Rich Dad after the Reserve Goal has been met (i.e., after the Reserve
Replenishment Period, as defined below, has been completed) and is equal to 10% of Gross Revenue.

 

 

(h)           “Rich Dad
Personality” means any authors or co- authors
of a work in the “Rich Dad”, “Rich Dad Advisors”, “Rich Family”,  “Rich Woman”, “Rich Life” or similar series of books and
all other individuals or concerns directly or in directly related to “Rich Dad”, “Rich  Dad Advisors”, “Rich Family” , “Rich Woman”, “Rich Life” or affiliated brands which may
be designated by either Robert T. Kiyosaki or Kim Kiyosaki in his or her sole
discretion.

 

(i)            “Adjusted EBITDA”  means Adjusted EBITDA as publically
reported by Tigrent.

 

(j)            “Cash Operating Profit” or “COP” shall mean the Total Adjusted Cash Sales less the sum of:

 

(1)    all direct course expenses;

(2)    all advertising and sales
expenses, including commissions; and

(3)    9% of Total Cash
Sales; which is included in order to estimate the amount of cash outlays which
is recorded as deferred expenses.

 

(k)           “COP Ratio”
shall mean the ratio between COP and the sum of Tigrent’s:

 

(1)   G & A;

(2)   Royalties; and

(3)   Legal expenses.

 

(l)            “Total Adjusted Cash Sales” means the figure
which is the sum of PEI concessions and Total Cash Sales.

 

IV.           Payments.  The Current Royalty Payments and the
Post-Reserve Goal Royalty Payments shall be remitted no later than 15 calendar days after the end of each
calendar month via wire transfer to an account specified by Rich Dad.  Any Current Royalty Payments and Fulfillment
Royalty Payments that are not paid within 15
calendar days after the end of a given month shall be considered
delinquent.  Interest shall accrue on
such delinquent Current Royalty Payments and Fulfillment Royalty Payments
amounts at a rate of 12% per annum
until such past due amounts including any and all accrued interest on such
amounts are paid in-full.

 

V.            Fulfillment
Reserve.  The parties recognize the
desirability of maintaining a cash reserve sufficient to ensure that Tigrent
can fulfill contractual commitments to RDE and/or Tigrent students.  For this purpose, Tigrent will establish a
separate, restricted reserve account for the purpose of fulfilling outstanding
contractual student commitments and paying to Rich Dad the Fulfillment Royalty
Payments (the “Reserve Account”).  The Reserve Account will be on deposit with
Wells Fargo Bank, N.A. (or a different banking institution acceptable to Rich
Dad) (the “Bank”), as trustee, Tigrent as
trustor, in favor of the students of the Rich Dad Education Business who have
contracted for classes that have not yet been fulfilled, and Rich Dad, as
beneficiaries.  The Reserve Account will
be governed by a collateral trust agreement between the Bank and Tigrent that
is in a form acceptable to Rich Dad and that will be modified only with Rich
Dad’s consent.  In order to protect its
brand, Rich Dad requires cash collateral to secure Tigrent’s obligations and
duties to fulfill student contracts and to secure Tigrent’s obligation to pay
to Rich Dad the Fulfillment Royalty payments and the parties are each willing
to contribute funds to be used as cash collateral for those obligations and
duties.  Rich Dad’s rights in respect of
the cash collateral will be subordinated to the fulfillment of the student
contracts.  It is the 

 

 

stated
goal of both parties that the Reserve Account will accumulate an amount of
funds which when summed with the trust account contemplated by Section VI below and RDE’s and Tigrent’s merchant
deposit reserve funds results in an amount equal to 30%
of Tigrent’s Deferred Revenue associated with the Rich Dad Education Business
(the “Reserve Goal”). The Reserve Account
will be maintained for the duration of the term of the 2010
License.  The parties will use best
efforts to reach the Reserve Goal as soon as possible on a commercially
reasonable basis.  To meet the Reserve
Goal, the parties will do the following between the Effective Date and the date
that the Reserve Goal is met (the “Reserve Replenishment Period”):

 

(a)           On a monthly
basis, Tigrent will deposit the applicable monthly Fulfillment Royalty Payment
into the Reserve Account.

 

(b)           Within 25 days of the conclusion of each calendar
month, Tigrent will calculate its Average Cash Balance as of the end last day
of the month.  “Average Cash
Balance” means the average cash balance of all unrestricted funds in
Tigrent accounts for the prior 90 day period,
but specifically excludes (i) proceeds
from the sale of, or other realization on, non-core assets and (ii) any cash accounts from RDE made available to
Tigrent.  In the event that the Average
Cash Balance is in excess of $6,000,000, Tigrent will sweep the excess into
the Reserve Account; provided, however, such deposits maybe reduced or not made
to the extent the resulting amount of funds in the Reserve Account is in excess
of the Reserve Goal.  Under such
circumstances, the Reserve Goal must remain achieved and maintained for the
given month.  The parties agree that
Tigrent will not be required to make the first sweep until July 25,
2010 based upon the Average Cash Balance for April,
May and June,
2010.

 

(c)           In addition to
these cash deposits, the parties will work cooperatively to increase student
fulfillment and reduce Deferred Revenue. 
Examples of such cooperation may include, attendance by Robert and Kim
Kiyosaki at Rich Dad Education events, or special marketing programs intended
to increase the likelihood of student fulfillment.

 

(d)           Within 30 days
of June 30 and December 31
of each calendar year of the Agreement, Tigrent will determine if the Reserve
Account exceeds the Reserve Goal.  If
Tigrent determines the Reserve Account does exceed the Reserve Goal, then the
excess funds will be withdrawn from the Reserve Account and shall be first applied to the Fulfillment Royalty Payments that are
due to Rich Dad and second to
Tigrent for actual expenses related to fulfillment of student agreements.

 

(d)           Deferred Revenue. Tigrent will
report to Rich Dad the Tigrent Deferred Revenue and the actual amount contained
in the Reserve Account.  Such reports
will be delivered within 25 days of the
end of the applicable month.  Tigrent
will consult with Rich Dad with respect to the progress being made to achieve
the Reserve Goal.

 

(e)           Covenants

 

(i)  Covenants
Associated Cash Operating Profit.

 

 

(A)      “Cash
Operating Profit” or “COP” shall be
monitored as a management tool to measure profitability of operations on a cash
basis, without regard to non-cash items.

 

(B)       “Monthly COP
Target” means the COP goal for any particular month.  The
Monthly COP Targets for FY 2010 shall
be as separately agreed to by the parties.  The Monthly COP Target for
each of Tigrent’s subsequent fiscal years shall be as set forth in Tigrent’s
AOP for such fiscal year as approved pursuant to Section XXIV of this
LOI.   The parties shall confer on a
monthly basis to review and discuss Tigrent’s progress in achieving the Monthly
COP Targets.

 

(C)       Profit Hurdle. Commencing April 2010, and each month thereafter, Tigrent shall
prepare a report by the 25th of such
month to determine whether its operations have generated not less than 85% of the aggregate COP Targets for the prior 3 calendar months (the “Profit Hurdle”). 
Failure to achieve the Profit Hurdle shall be a material breach of this
Agreement.

 

(ii)           Limits on Capital
Expenditures for non-Rich Dad business.  Tigrent’s capital expenditures associated
with any and all businesses other than the Rich Dad Education Business will not
exceed $500,000 during any calendar year
without the approval of Rich Dad, which will not be unreasonably withheld.

 

(iii)          Financial Information.  Tigrent has supplied RG on
the date hereof financial projections (individually and collectively, the “Information”), with the intent that RG
would rely on the Information, to the extent reasonable to do so. The
Information represents good faith estimates of the performance of Tigrent for
the periods stated therein based upon assumptions which were believed in good
faith to be reasonable when made in all material respects.

 

(iv)          Quarterly Business Review.  Each calendar quarter, RD
and Tigrent will meet to review and discuss Tigrent’s financial performance
during the prior quarter.  Such
discussions will include:

 

·      Adjusted EBITDA (as publically reported by Tigrent) as a tool to measure the
profitability of Tigrent on cash—basis, as opposed to an accrual—basis.

 

·      COP Ratio will be used
to determine the COP’s ability to provide coverage for certain expenses that are
not related to direct course expenses.

 

·      Total
Adjusted Cash Sales

 

VI.           Renegotiation of Revenue Share for Tigrent Referrals
made to PEI: The
parties acknowledge that Tigrent is attempting to renegotiate the Amendment and
Restatement of the Letter Agreement by and between RDE and PEI dated March 23, 2007 (the “Amended
Letter”).  Specifically,
Tigrent is attempting to revise the Amended Letter Agreement so that Tigrent’s
revenue share associated: (a) with
coaching programs sold by Tigrent is increased and (b) coaching
sales sold from Tigrent or RDE Leads is increased.  It is the expectation of the parties that
these increased revenue shares to Tigrent will facilitate the projected
achievement of the Reserve Goal and shall 

 

 

be deposited by Tigrent,
as trustor, into a second separate trust account with Wells Fargo Bank, N.A.
(or a different banking institution acceptable to Rich Dad) (the “Bank”) for the benefit of students of the Rich Dad Education
Business who have contracted for classes that have not yet been fulfilled.  Rich Dad will its commercially reasonable
efforts to facilitate and support discussion between PEI and RDE and gain
agreement on these changes.

 

VII.         License Grant:

 

(a)           Exclusive License.  Rich Dad will provide Tigrent an exclusive
right and license to use, sell, offer to sell, make, reproduce, distribute,
publicly perform, publicly display, modify and otherwise commercially exploit
(collectively “Utilize”) the Licensed Rich Dad
Business Information solely within the Territory and solely within the
Exclusive Field of Use.  Any and all
goodwill related to the use of the Rich Dad trademarks and copyrights inures to
the benefit of Rich Dad.  Tigrent is not
permitted to distribute any products or services including Licensed Rich Dad
Business Information outside the seminars and alternative fulfillment vehicles
expressly permitted by this Agreement. 
This License is not transferable and it may not be sublicensed to any
party without Rich Dad’s prior written consent, which may be withheld in its
sole and absolute discretion, provided however that Tigrent may sublicense any
of the rights and licenses granted hereunder to its subsidiaries limited to,
Tigrent Learning, Inc., Tigrent e-Learning, Inc., Tigrent Group, Inc.,
Tigrent Learning U.K. Ltd., Tigrent Learning Canada, Ltd, Tigrent Enterprises, Inc.,
and Tigrent Communications, Inc.

 

(b)           Licensed Business
Information.  The term “Licensed Rich Dad Business Information” as used in the Term
Sheet shall mean the following:

 

(i)            The Rich Dad trademarks and
the Domain Name;

 

(ii)           Likenesses, and voices, of
Robert and Kim Kiyosaki (subject to prior approval of Rich Dad);

 

(iii)         Documents and other data
(whether in human or machine-readable form) containing information regarding
customers, prospective customers; and

 

(iv)          Principles, books,
information and other materials of Rich Dad, Robert Kiyosaki or Kim Kiyosaki to
the extent that any such materials are incorporated in any Seminar Materials,
Marketing Materials or other materials created by Tigrent and approved by Rich
Dad as contemplated by this LOI and the definitive licensing agreement.

 

(c)           Non-exclusive license.  A non-exclusive right and license to utilize
the Licensed Rich Dad Business Information solely within the Territory and
solely within the Non-exclusive Field of Use.

 

(d)           Limited to the Term and the
Approved Languages.  The
licenses and rights granted will be limited to the Approved Languages and the
Term, except that Tigrent may exercise any of the rights and licenses for a
period of 24 months after the termination of this

 

 

 

 

Agreement as necessary to successfully fulfill any customer contracts
that were executed prior to the end of the termination of this Agreement.

 

(e)           Trademark and Name, Likeness
and Voice Licenses.  A
non-exclusive license to use, reproduce, publicly display, publicly perform and
distribute: (a) the Rich Dad trademarks
and (b) the name, likeness and voices
of Robert and Kim Kiyosaki to the extent provided or approved by Rich Dad; but
solely in the Exclusive Field of Use, the Non-exclusive Field of Use and in the
Territory.  All such uses will be subject
to Rich Dad’s prior written approval which may be withheld in Rich Dad’s sole
and absolute discretion.

 

VIII.            Exclusive Field of Use means live,
in-person seminars and training courses on real estate investing, business,
entrepreneurship, the stock market, and other financial market investing (the “Permitted Subjects”). 
Excluded from the Exclusive Field of Use are: (a) live, in-person seminars of any kind conducted by
Rich Dad or any affiliate of Rich Dad at which any of the following are
featured speakers: Robert Kiyosaki, Kim Kiyosaki, or any Rich Dad Personality;
and (b) live, in-person classes taught
in schools (K-12), colleges or universities to matriculated students as part of
an academic curriculum.

 

IX.           Non-Exclusive Field of Use means: (a) via DVD or MP3 and (b) interactive
learning programs designed specifically for the Internet, but only to the
extent such interactive learning programs are related to the stock market,
subject to the prior written approval of Rich Dad which may be withheld in Rich
Dad’s sole and absolute discretion.

 

X.            Intellectual Property.  If Rich Dad rightfully terminates the License
Agreement due to a material breach by Tigrent (including any Event of Default
set forth in Section XIX), then Tigrent
will provide to Rich Dad a non-exclusive, perpetual, transferable,
sublicensable right and license to Utilize: (a) any
intellectual property developed by RDE or Tigrent that was branded with the
Rich Dad logos and that was used as part of: (i) the
free preview seminars or (ii) the
basic seminars, and (b) the
Rich U advanced course materials.  For
the avoidance of doubt, the parties state that this license is not intended to
provide any intellectual property developed by RDE or Tigrent related to any
Advanced training, seminars or courses (except the Rich U Advanced course
materials), as these materials are based on intellectual property developed by
or on behalf of RDE or Tigrent without reference to Rich Dad intellectual
property.

 

XI.           Audit Rights.  Rich Dad to have audit rights; if audit
reveals a material deviation (greater than 10%), then
Tigrent shall pay for reasonable auditor expenses.  All audits will be conducted at Tigrent’s
offices by a nationally or regionally recognized audit firm, proposed by RG and
consented to by Tigrent, during normal business hours and in a manner that will
not be disruptive to Tigrent’s business. 
Rich Dad will provide no less than 10 days written
notice of any such audit and the third party auditors may not be paid on a
contingency fee basis.

 

XII.         Territory:  United States, United Kingdom, and Canada.

 

XIII.        Approved Languages:  English and Spanish.

 

XIV.        Term:  December 31, 2014,
unless terminated earlier in accordance with the definitive agreement.  Notwithstanding the above, certain
provisions, including the licenses, will survive 

 

 

termination to the extent necessary, which will not exceed 36 months, to allow Tigrent the opportunity to fulfill
contracts executed prior to the date of termination.

 

XV.         Termination:  Option to terminate to be held by the
non-defaulting party based on an Event of Default listed in Paragraph XIX below or any other material breach.  The defaulting party shall have the right to
cure an Event of Default, upon receiving written notice by the non-defaulting
party specifying an Event of Default, within 30
days of such notice, unless the default
cannot be cured within such 30-day period,
but the defaulting party can show to the non-defaulting party that it has taken
reasonable steps to cure such default. 
Notwithstanding the foregoing, the following Events of Default are not
subject to any cure period, and create an immediate option to terminate for the
non-defaulting party: XIX (iv), XIX (vi), XIX
(vii), XIX (x) through XIX (xv).

 

XVI.        Choice of Law, Venue, and
Dispute Resolution:  Maricopa
County, Arizona, under Arizona law without regard to choice of law
principles.  Any controversy or claim
will be determined by binding arbitration in accordance with the rules of
Judicial and Administrative Mediation Services (hereinafter “JAMS”).  If the
parties cannot agree on a JAMS arbitrator 20 calendar days
after notification of the claim, JAMS will appoint an arbitrator to hear the
matter and not by court action.  The
parties shall share equally all initial costs of arbitration.  All decisions of the arbitrator shall be
final, binding, and conclusive on all parties. 
Notwithstanding the above, claims related to termination of this
Agreement, intellectual property, confidentiality and/or injunctive relief will
not be subject to arbitration.  The
prevailing party shall be entitled to reimbursement of attorneys’ fees, costs,
and expenses incurred in connection with the arbitration or litigation.

 

XVII.      Performance Level Reporting

 

(a)           Tigrent to meet the
following performance standards:

 

(i)            Customer Service Measurements.  The Agreement to contain
simple yet effective ways to measure and improve customer satisfaction levels
and to prevent recurring problems.

 

(ii)           Leading
Indicators.  Those indicators
that if managed correctly should lead to a reduction in customer complaints and
a resultant rise in customer satisfaction.

 

(iii)         Timeliness.  Service Level/Average Speed of Answer.  This is how quickly the average telephone
call is answered.  Tigrent’s goal is to
answer 80% of the calls within 3 minutes.

 

(iv)          Abandonment or percentage of
calls not answered.  Tigrent’s
goal is less than 20% of the calls should
abandon within 90 days of the execution of the definitive license
agreement, 18% at the 180 day mark and 15% at the 270 day mark. 
Tigrent will test announcing current hold time to anyone who is placed
on hold.

 

(v)            Responsiveness to satisfy
customers who call/write or e-mail with a concern, complaint or request.  Tigrent’s goal shall be to have an
acknowledgement within 24  hours - 100% of the
time.  The goal is to conclude the
request, 

 

 

excluding refund requests, which would include the customer being
notified and agreeing to the handling as quickly as possible.  Tigrent’s goal is to resolve 80% of its requests within 72 hours.  Refund requests received in writing will be
resolved, meaning an official determination on the refund will be issued within
10 business days  80%
of the time. Should the customer issue a rebuttal to the determination, the
process will start over again the date of the written rebuttal.

 

(vi)          Lagging
Indicators.  Those
indicators that if managed correctly, should lead to a reduction in certain
areas of customer complaints and a resultant rise in overall customer satisfaction.

 

(vii)         Source of Complaints.  Customer Complaints from the following
sources should be reviewed and categorized in order to understand how the
organizations of people or processes need to be improved to avoid receiving a
similar complaint in the future:

 

a.                    Robert T.
Kiyosaki and/or Kim Kiyosaki

b.                    Rich Dad
Operating Company, LLC

c.             Any Attorney
General Complaint

d.             Any Complaint
from a Private Attorney

e.             Any Better
Business Bureau (“BBB”) Complaint

 

(viii)        Customer
Surveys.  Feedback mechanisms that
customers let Tigrent know:

 

(a)           What customers
like about doing business with Tigrent.

 

(b)           In what areas
customers want improvements.

 

(c)           Identify
lagging indicators.  This should allow
Tigrent to track satisfaction and dissatisfaction levels over time.  It is important that as Tigrent reviews the
trends of lagging indicators, that Tigrent creates “Action Plans.”  These Action Plans should commit resources
and talent to developing people and possibly a better process or policy that
eliminates the sources of complaints. 
Most attention is normally directed toward those complaints that are
received most frequently.  Only by
measuring these lagging indicators will Tigrent know where to focus its
attention on.

 

(b)           Tigrent to
report on each of the above performance covenants on a weekly basis, in a form
suitable to Rich Dad, in Rich Dad’s discretion, subject to change by Rich Dad
from time-to-time after discussion with Tigrent.

 

XVIII.     Limitations
on Liability.  In no event will either party be liable for
punitive damages.

 

XIX.        Events of Default:

 

(a)           Agreement to include clear
and definite definitions of default, such as:

 

(i)            Tigrent fails to make any
payment to Rich Dad pursuant to this Agreement when due;

 

 

(ii)           If royalty audit reveals a material deviation
(greater than10%);

 

(iii)         Tigrent fails to timely perform its
material obligations;

 

(iv)          Tigrent suffers any material levy, lien,
or attachment (“Liens”) arising after the
Effective Date, and fails to either bond or pay-off the Lien within 20 days;

 

(v)            Tigrent materially breaches any of its
representations or warranties in this License Agreement;

 

(vi)          Tigrent files for Chapter 7 or Chapter 11
bankruptcy;

 

(vii)         Tigrent transfers all or substantially
all of its assets;

 

(viii)        Issuance of a “going
concern” qualification for Tigrent with respect to any fiscal year
after 2010;

 

(ix)          Tigrent’s periodic reports filed with the
Securities and Exchange Commission pursuant to the Securities Act of 1934, as amended (the “Exchange Act”),
fail to comply in all material respects with the requirements of the Exchange
Act;

 

(x)           Tigrent suffers any material restriction
on its ability to do business as a result of current or future lawsuits or
governmental proceedings;

 

(xi)          Tigrent attempts to assign,
transfer, or sublicense any of the rights and licenses granted without Rich Dad’s
prior written approval, provided however that Tigrent may sublicense any of the
rights and licenses granted hereunder to its subsidiaries limited to, Tigrent
Learning, Inc., Tigrent e-Learning, Inc., Tigrent Group, Inc.,
Tigrent U.K. Ltd., and Tigrent Canada, Ltd.

 

(xii)         Tigrent’s withdrawal of funds from the
Reserve Fund, prior to the attainment of the Reserve Goal, without Rich Dad’s
prior written consent;

 

(xiii)       Tigrent’s withdrawal of funds from the
Reserve Fund, after the attainment of the Reserve Goal, in any amount which
would make it so the Reserve Goal was no longer met, without Rich Dad’s prior
written consent;

 

(xiv)        Tigrent’s failure to fulfill at least 50% of the prior year’s ending Deferred
Revenue

 

(xv)          Tigrent’s failure to program
sufficient courses so that at least 75%
of the prior years’ students have the opportunity to fulfill the course work
purchased during the current calendar year.

 

XX.         Observation Rights

 

(a)           Tigrent will allow Rich Dad 1 representative, designated by Rich Dad in its sole
discretion (the “Board Observer”), to attend all
meetings of Tigrent’s Board of Directors 

 

 

in a nonvoting capacity, and, in connection therewith, Tigrent will
provide to such representative copies of all notices, minutes, consents and
other materials, financial or otherwise, which Tigrent provides to its Board of
Directors provided, however, that Tigrent reserves the right to exclude such
representative from access to any material or meeting or portion thereof if
Tigrent reasonably believes, upon advice of counsel, that such exclusion is
reasonably necessary in order for the directors to fulfill their fiduciary
duties or to preserve the attorney-client privilege (such rights, “Board Observation Rights”).

 

(b)           Tigrent to pay, defend,
protect, indemnify and hold Rich Dad and its members, managers, officers,
employees, agents and assigns (the “Observer Indemnified
Parties”), harmless for, from, and against any and all losses,
causes of action (whether in contract, tort, or otherwise), claims, costs,
damages, demands, judgments, liabilities, suits, and expenses (including,
without limitation, reasonable costs of investigation, and attorneys’ fees and
expenses) of every kind, character, and nature whatsoever arising out of the
exercise of Rich Dad’s Board Observation Rights (individually and collectively,
the “Observer Liabilities”), including any
and all Observer Liabilities arising from the active or passive negligence of
the Observer Indemnified Parties, provided, however, that such indemnification
rights shall include active or passive negligence, but shall not extend to the
gross negligence or willful misconduct of the Observer Indemnified Parties.

 

(c)           Observer Indemnified Parties
shall notify Rich Dad of the existence of any claim, demand, or other matter to
which Tigrent’s indemnification obligation applies, and shall give Tigrent a
reasonable opportunity to defend the same at its own expense and with counsel
satisfactory to the Observer Indemnified Parties; provided that the Observer
Indemnified Parties shall at all times also have the right to fully participate
in the defense at its own cost.

 

(d)           If the Observer Indemnified
Parties are advised in an opinion of counsel that there may be legal defenses
available to it which are different from or in addition to those available to
Tigrent or if Tigrent shall, after receiving notice of Tigrent’s
indemnification obligation and within a period of time necessary to preserve
any and all defenses to any claim asserted, fails to assume the defense or to
employ counsel for that purpose satisfactory to the Observer Indemnified
Parties, the Observer Indemnified Parties shall have the right, but not the
obligation, to undertake the defense of and to compromise or settle the claim
or other matter on behalf of, for the account of, and the risk of Tigrent.  Such claim or other matter; provided that the
Observer Indemnified Parties may not enter into any settlement or compromise of
any claim or other matter without Tigrent’s prior written approval.  In the event of the exercise of the right set
forth in this subsection (d), Tigrent shall be
responsible for the reasonable counsel fees, costs, and expenses of the
Observer Indemnified Parties in conducting its defense.

 

(e)           To the extent permitted
under Tigrent’s policy, Tigrent to add the Board Observer to its Directors and
Officers insurance policy, and Tigrent shall provide the Certificate of
Insurance showing coverage for the Board Observer within 15 days of
Rich Dad’s request.

 

 

(f)            At the option of Rich Dad,
to be exercised in its sole discretion, Tigrent will take reasonable efforts to
cause 1 individual designated by Rich Dad to
be appointed as a member of the Board of Directors of Tigrent

 

XXI.        Quality Control

 

(a)           The use of Licensed Rich Dad Business
Information
in any Seminar Materials or Seminar shall be subject to prior written approval of Rich
Dad, including any such approval prior to the Effective Date of this Agreement.

 

(b)           Approval Process:  Licensee shall provide Rich
Dad (to the attention of Marian Van Dyke) a syllabus (in such form
as Rich Dad may reasonably request) for each Seminar and samples of all
associated Seminar Materials (including any collateral items not bearing the
Licensed Marks) prior to offering or conducting the Seminar or distributing or
offering for sale or otherwise making available to the public the Seminar
Materials.

 

(c)           Unless Rich Dad notifies Tigrent that the Seminar or Seminar Materials
are rejected within 10
days from receipt by Rich Dad of the samples,
Licensee may go forward with offering the Seminar Materials;

 

(d)           After samples have been approved in writing, Tigrent may not make any
material change to the use of the Rich Dad Business Information in the merchandise
or materials without Rich Dad’s prior written approval.

 

(e)           Tigrent shall provide Rich
Dad, without charge, additional samples of each item of Seminar Materials from
time to time as Rich Dad may request.

 

(f)            At the expense of Tigrent,
Rich Dad shall have the right to audit seminar quality through attendance as
follows:  Up to 12  3-day fulfillment seminars per
year and up to 12 advanced training seminars per
year.

 

(g)           Tigrent shall develop (at its own cost)
all draft sales and marketing materials for the Program as the parties shall
mutually agree from time-to-time (“Draft Marketing Materials”),
and shall submit such draft materials to Rich Dad for Rich Dad’s approval,
which Rich Dad may withhold in its sole and absolute discretion.

 

(h)           Rich Dad shall provide Tigrent with
access to at least 1 Rich Dad
employee with current knowledge of Rich Dad, Rich Dad IP, and Rich Dad’s brand
marketing strategies, who can provide Tigrent that information for Tigrent to
incorporate into PEI’s materials marketing the seminars.  The initial Rich Dad employee shall be Marian
Van Dyke.

 

(i)            Upon receipt of the Draft Marketing
Materials, Rich Dad shall have 5  business  days to approve
of the Draft Marketing Materials.  If
Rich Dad rejects the Draft Marketing Materials, it shall so inform Tigrent in
writing, and shall include in that writing the reasons for the rejections and
any suggestions Rich Dad may have for changes to the Draft Marketing
Materials.  If Rich Dad does not respond
within 5 business days, the Draft Marketing
Materials shall be deemed approved.

 

 

XXII           Definition of “Customer”:  Rich Dad defines a “Customer”
as some someone who has completed the 10 steps in the
CASHFLOW Club Kit.  While others may
purchase Tigrent Programs, Rich Dad’s focus is on creating Customers as defined
in this Paragraph.  Tigrent will be
periodically asked to support Rich Dad in creating Customers as these people
are far more likely to purchase Tigrent Programs than other RGs or users of Rich
Dad’s products and services.

 

XXIII.        Access to Employees and
Independent Contractors. 
Tigrent will provide Rich Dad, and Robert and Kim Kiyosaki access to
Tigrent employees, subject matter experts and independent contractors for the
purpose of providing feedback between the parties related to seminar content
and presentations, marketing and advertising review support, and product
development and integration related to the Rich Dad brand and Rich Dad
customers; provided that Rich Dad shall not directly or indirectly solicit, hire or interfere with the
relationship of Tigrent and such employees and agrees to keep confidential any
information relating to Tigrent and furnished to Rich Dad, using the same
degree of care as Tigrent uses to protect its own confidential information.  Notwithstanding the foregoing, Rich Dad may
also work with subject matter experts and independent contractors on
activities, events and projects unrelated to Tigrent.

 

XXIV.       Business Plan.  Tigrent shall submit a Business Plan and
Preliminary Budget for the upcoming year no later than November 1st
of the current year.  Rich Dad shall have
10 business days from the date of
submission of the Business Plan to approve or reject the proposed business
plan. Rich Dad may, in sole and absolute discretion, reject the business plan.  In particular, Rich Dad will reject the
business plan if:

 

(i)          the business
plan fails to provide adequate opportunities for at least 75% of the prior years’ students to have
the opportunity to fulfill the course work purchased during the current
calendar year.

 

(ii)         the business
plan requires multiple visits to the same cities and towns during the course of
a year, at a level which Rich Dad determines, in its sole and absolute
discretion to be detrimental to its brand.

 

If
Rich Dad rejects a Business Plan hereunder, then the parties shall cooperate to
attempt to resolve all issues that form the basis for such rejection.  Pending the resolution of such issues,
Tigrent shall continue operate its business in a manner that reflects the
principles of student fulfillment that form the underlying basis of this
Agreement.

 

XXV.      Confidentiality.

 

a)             In
performing the services under this Agreement, both Parties may be provided or
may otherwise come into the possession of Proprietary Information (as defined
below) and any other information regarding the business, affairs and services
of the providing party that, under the circumstances of the disclosure should
reasonably be considered confidential (hereinafter, the “Confidential
Information”), all of which are valuable to the providing party or
are required by law or good business practices to be held confidential.  Each party agrees to receive, hold and treat
all Confidential Information received from any other party as confidential and
secret and agrees to use its best efforts to protect the confidentiality and
secrecy of such Confidential Information. 
Each party 

 

 

agrees
to only divulge Confidential Information to its employees or third parties who
are required to have such knowledge in connection with the performance of their
obligations under this Agreement and such party shall not disclose, directly or
indirectly, any Confidential Information whatsoever, including without
limitation, for its own benefit or any third party’s benefit.  Confidential Information does not include
information which (i) was or
becomes generally available to the public, (ii) was
or becomes available on a non-confidential basis, provided that the source of
such information was not bound by a confidentiality agreement in respect
thereof, (iii) was within the receiving
party’s possession prior to being furnished by or on behalf of other party,
provided that the source of such information was not bound by a confidentiality
agreement in respect thereof, or (iv) the
information is a duplication of materials that receiving party already
possesses without an obligation of confidentiality.

 

b)             For purposes of this Agreement, “Proprietary Information”  includes the
following:

 

i.              “Intellectual Property” or “IP”,  which  means patents
(whether issued or pending), copyrights (whether registered or not), trademarks
and trade names (whether registered or unregistered); as well as concepts,
developments, trade secrets, methods, systems, programs, improvements,
inventions, data and information (whether in perceivable or machine-readable
form), source codes, works of authorship and products whether or not
patentable, copyrightable, or susceptible to any other form of protection, and
whether or not reduced to practice or designated by either party as IP.

 

ii.            Any and all material provided to either
party by or on behalf of the other party, including but not limited to customer
databases, customer
lists, customer information, product and
service information,
development platforms, unpublished artwork, tools, data and contents related to
artwork, whether 2- or 3-dimensional,
and all original and secondary audio or visual data.

 

c)             In
association with the termination of this Agreement, each party shall destroy
all copies of the Confidential Information, return all original documents and
publicity materials, discontinue all use of computer links, erase all of the
providing party’s Proprietary Information, including intellectual property
contained in the receiving party’s computer memory or data storage, and destroy
all Confidential Information stored on computer, disk, CD-Rom or computer
backup within 90 days after this Agreement
terminates.  The receiving party shall
provide a certified document within 90 days stating
that all Confidential Information in the receiving party’s possession has
either been destroyed, erased, or returned, unless such Confidential
Information is required to be disclosed pursuant to paragraph
(e) below or for the fulfillment
of any program.

 

d)             Each
Party agrees that it will not disclose any Confidential Information to any
third party and will not use Confidential Information of the receiving party
for any purpose other than for the performance of the rights and obligations
hereunder during the terms of this Agreement and for a period of 5 years thereafter, without prior written consent of the
disclosing party.  Receiving party
further agrees that Confidential Information shall remain the sole property of
the party providing such information and that it will take all reasonable
precautions to prevent any unauthorized disclosure of Confidential 

 

 

Information
by its employees.  The terms of this Section shall survive the termination of this
Agreement.

 

(e)           The obligations
regarding Confidential Information in this Section does
not apply if: (a) the Parties have agreed
in writing to a particular disclosure, use or copying; or (b) either
Party (the “Disclosing Party”) is requested or
becomes legally compelled (by oral questions, interrogatories, requests for
information or documents, subpoena, civil or criminal investigative demand, or
similar process) or is required to comply with any applicable law or by a
regulatory body to make any disclosure that is prohibited or otherwise
constrained by this Agreement.  In such
case, the Disclosing Party will provide the other party with prompt notice of
such request and consult with the other party to the extent practicable, so
that it may seek an appropriate protective order or other appropriate
remedy.  Subject to the foregoing, the
Disclosing Party may furnish that portion (and only that portion) of the
Confidential Information that, in the written opinion of its counsel reasonably
acceptable to the other party, the Disclosing Party is legally compelled or is
otherwise required to disclose or else stand liable for contempt or suffer
other material censure or material penalty; provided, however, that the
Disclosing Party must use reasonable efforts to obtain reliable assurance that
confidential treatment will be accorded any Confidential Information so disclosed.

 

XXVI.       Enforcement of IP Rights.

 

a)             Enforcement of alleged infringement shall
be at Rich Dad’s sole and absolute discretion, and at Rich Dad’s sole
option.  Tigrent will not have any
independent right to enforce Rich Dad IP rights. If the parties have notice
that a person or concern is infringing on the use of the Licensed Rich Dad
Business Information within the Exclusive Field of Use, and Rich Dad refuses to
enforce its IP rights or allow Tigrent to enforce the IP rights granted under
this Agreement, then such action will constitute a material breach of this
Agreement.

 

b)             Rich Dad may, at its option, choose to
grant Tigrent rights to pursue IP infringement on a case-by-case basis.

 

c)             “Intellectual Property” or “IP”,  which  means patents
(whether issued or pending), copyrights (whether registered or not), trademarks
and trade names (whether registered or unregistered); as well as concepts,
developments, trade secrets, methods, systems, programs, improvements,
inventions, data and information (whether in perceivable or machine-readable
form), source codes, works of authorship and products whether or not
patentable, copyrightable, or susceptible to any other form of protection, and
whether or not reduced to practice or designated by either party as IP.

 

d)             Rich Dad may, at its option, choose to
grant Tigrent rights to pursue IP infringement on a case-by-case basis.

 

XXVII.     Cross-Default.  Any default by Tigrent under the License
Agreement will also constitute a default by Tigrent under the Cooperation Agreement
(as defined below), meaning that a termination of the License Agreement will
terminate the Cooperation Agreement.

 

 

C.            COOPERATIVE
MARKETING AND ADVERTISING AGREEMENT.

 

Tigrent
and Rich Dad shall enter into, and will use best efforts to join PEI in, a
cooperative marketing and advertising agreement (the “Cooperation
Agreement”) for the purposes of (a) extending
the life of the Rich Dad brand to the greatest extent possible, (b) allowing each of the parties to operate profitably
and cooperatively based on mutually aligned interests, (c) creating
a more effective advertising spend for all parties and (d) resulting
in a seamless Rich Dad brand from the prospective of the customers.  The material terms will include:

 

(i)            Initial Term: expiring December 31, 2014 (co-terminus with the Tigrent License
Agreement).

 

(ii)           Territory:  U.S.A., United Kingdom and Canada.

 

(iii)         Languages:  English and Spanish.

 

(iv)          Media:  the manner in which the parties will
coordinate the purchase of media on a monthly basis, including but not limited
to print, television, radio, and on-line; the parties will coordinate efforts
to reasonably ensure that they do not compete against each other in Search
Engine Marketing (“SEM”)
purchases.

 

(v)            Greater Leveraging of
Customer Databases.  Each of the
3 parties has its own customer
database.  Rich Dad is desirous of
exerting additional control over its brand, while concurrently working
cooperatively with Tigrent and PEI to utilize the Licensed Rich Dad Business
Information.  The parties will enter into
an agreed upon contact management strategy which will be managed and approved
by Rich Dad, and revisited on a quarterly basis at or near the conclusion of
each calendar quarter.  The activities of
the parties will include:

 

(a)           coordinating
new privacy policies that allow for better leveraging across the 3 companies for the benefit of the Rich Dad brand;

 

(b)           a coordinated
contact management strategy that reasonably ensures that users do not opt-out
of receiving messages and that each touch is driving to maximize the lifetime
value of the user;

 

(c)           rationalizing
the databases so that the database owner is properly incentivized to
participate  (e.g., the party who owns
each contact is driving to optimize the lifetime value of the person and the
consideration it receives is commensurate in value with what it would have
received had it reserved the contact for itself);

 

 

(d)           Rich Dad may
provide free content and/or leverage Robert Kiyosaki, Kim Kiyosaki and other
Rich Dad Personalities to help build the respective databases with fresh leads;
and

 

(e)           ensuring that
all 3 companies attempt to collect full
contact information to enable geo-targeting.

 

(vi)          Cross Sales Training.  The 3 parties agree
to establish a program of cross sales training; which will be reviewed and
conducted on a quarterly basis.

 

(vii)         Student Pathways.  Student pathways to success established for:

 

(a)           Real estate,

(b)           Paper assets, and

(c)           Entrepreneurship.

 

Common agreement on student’s progression through the educational
experience;

 

(viii)        Purchase of Advertising.  The manner in which advertising will be
purchased on a monthly basis and reviewed on a calendar quarterly basis.

 

(ix)          Contact of Prospective
Customer.  The manner
in which customers or prospective customers and the Data Base will be
contacted, along with the understanding that the customer contact strategy will
be reviewed on a calendar quarterly basis.

 

(x)           Support of CASHFLOW Leaders.  The manner in which the 3
parties will support and compensate the CASHFLOW Club Leaders (“CFCLs”) and be compensated for such
support.

 

(xi)          Compensation of CASHFLOW
Leaders.  The manner in which CFCL’s will
refer, and be compensated for, customers to the 3 parties.

 

(xii)         Rich Dad Seminars.  The manner in which Rich Dad proprietary
seminars will be supported, so as to maximize their value to all parties.

 

(xiii)       Consultation with Rich Dad.  Tigrent and PEI will consult with Rich Dad
related to any activities that will materially change the way the Rich Dad
brand is presented to the public, including, without limitation, the hiring of
any branding consultants.

 

(xiv)        The Cooperation Agreement
will contain legal provisions that are customary and ordinary for an agreement
of this nature.

 

 

(xv)          Primacy of Rich Dad Brand.  Tigrent and Rich Dad will develop and
implement a strategy to enhance the primacy of the Rich Dad brand at Tigrent
advanced trainings, through the use of such techniques as dual trademarks (with
Rich Dad marks taking priority), disclosure of Tigrent’s status as a Rich
Licensee in customer Tigrent’s customer contracts, and such other techniques as
agreed by Rich Dad and Tigrent.

 

If
the foregoing terms are acceptable, please indicate so by executing a copy of
this letter below and returning one fully executed copy to me.  Please call me if you have any questions or
comments.

 

Sincerely,

Tigrent
Inc.

 

	
  /s/
  James E. May

  	
   

  
	
   

  	
   

  
	
  James
  E. May

  	
   

  
	
  Chief Administrative Officer and General Counsel

  	
   

  

 

Accepted and Agreed:

 

	
  Tigrent Inc.:

  	
  Rich Global, LLC:

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Steven C. Barre

  	
   

  	
   

  	
  By:

  	
  /s/ Robert T. Kiyosaki

  
	
   

  	
  Steven C. Barre

  	
   

  	
   

  	
   

  	
  Robert T. Kiyosaki

  
	
   

  	
  Lead Director

  	
   

  	
   

  	
   

  	
  Managing Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date: March 16, 2010

  	
   

  	
  Date: March 16, 2010

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Rich Dad Operating Company, LLC:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Michael R. Sullivan

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Michael R. Sullivan

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Director of Operations

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Date: March 16, 2010

  

 

TABLE OF EXHIBITS:

 

	
  Exhibit A

  	
   

  	
  -

  	
   

  	
  Press
  Release

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
  -

  	
   

  	
  Domain
  Name Assignment Agreement

  

 

 

EXHIBIT A

 

PRESS RELEASE

 

Rich Dad Companies and Tigrent Inc. Agree to
Restructure Licensing Agreement

 

Steven C. Barre Appointed as Interim CEO of Tigrent

 

SCOTTSDALE,
Ari. and CAPE CORAL, Fla., March 17, 2010 —Rich Dad Operating Company,
LLC, Rich Global, LLC, and Tigrent Inc. (OTC Bulletin Board: TIGE) today jointly
announced that they have entered into a letter of intent to amend and
restructure the agreements pursuant to which Tigrent licenses the Rich Dad
Brand.  Rich Dad Operating Company, LLC
and Rich Global, LLC are entities controlled by Robert and Kim Kiyosaki.  Mr. Kiyosaki is the author of the
internationally best selling Rich Dad Poor
Dad and other books
that teach readers about financial literacy. 
Tigrent provides courses that are based on the teachings and
philosophies outlined by Mr. Kiyosaki in the Rich Dad Poor Dad book series.

 

The
new licensing agreement contains revised economic terms that improve Tigrent’s
ability to provide customer fulfillment services to Rich Dad customers.  Additionally, Tigrent will provide the Rich
Dad Companies with increased oversight in the areas of quality assurance and
compliance.  The agreement also commits
Tigrent to new standards of excellence in their commitment to provide customers
of Rich Dad Education products the best of class solutions in all aspects of
its offering — from sale to course completion.

 

The
restructuring agreement contemplates the issuance of 9.9% of Tigrent’s issued
and outstanding common stock to Rich Global and the redemption of Rich Global’s
49% interest in Tigrent’s affiliate that currently conducts the Tigrent-Rich
Global operations.  Among other things,
the transaction will enhance cooperation in advertising, marketing, and educational
programs to provide seamless support to the Rich
Dad brand and its customers. 
The letter of intent contemplates that the parties will finalize the
definitive agreements on or before March 31, 2010, but there can be no
assurance that the parties will be able to enter into such definitive
agreements.

 

Tigrent
also announced that it has appointed Steven C. Barre to serve as its Interim
Chief Executive Officer effective as of today’s date.  Mr. Barre has been on the Board of
Directors of the Company since February 2008, and has served as the
Company’s Lead Director since June 2008. 
Mr. Barre has also served on the Company’s Audit and Compensation
Committees.  Prior thereto, Mr. Barre
served as Senior Vice President, General Counsel and Secretary of Jacuzzi
Brands, Inc. (a New York Stock Exchange company with annual revenues in
excess of $1 billion) from September 2001 until February 2007, when
the company was sold. Mr. Barre served in various roles as in-house
counsel from 1995 to 2001 for Jacuzzi Brands, Inc. (known as U.S.
Industries, Inc. from 1995 to 2003) and from 1988 to 1995 for its former
parent company, the U.S. arm of Hanson PLC, a large British-American industrial
management company.  Prior to joining
Hanson, Mr. Barre was a corporate attorney with the law firm of Weil,
Gotshal & Manges.  Mr. Barre
graduated from Cornell University in 1981 and Columbia Law School in 1984.

 

Tigrent
also announced that Murray A. Indick, currently a member of Tigrent’s Board of
Directors, was appointed as the Chairman of the Board of Tigrent. The position
of Lead Director has been eliminated.

 

Tigrent
also announced that Charles M. Peck, Tigrent’s former CEO, has left the
Company.

 

##

 

About Tigrent Inc.

 

Tigrent
Inc. (OTC Bulletin Board: TIGE) is a provider of educational training seminars,
conferences and services across multiple delivery channels that help students
become financially literate.  The company
provides students

 

 

with
comprehensive instruction and mentoring in real estate and financial instruments
investing, personal finance, and entrepreneurism in the United States, United
Kingdom, and Canada.  Additional
information can be found at www.tigrent.com.

 

About
Rich Dad

 

The
Rich Dad companies were formed based on the teachings of Robert Kiyosaki and
Kim Kiyosaki.  In 1996, the Kiyosakis
formed certain of the Rich Dad group of entities to raise global financial
literacy.  The Kiyosakis continue their
efforts on an international basis through the use of the Rich Dad series of
books, CASHFLOW games, audio/video products, Internet channels, live seminars,
and educational programs.

 

The
Rich Dad series of books, launched with the “Rich
Dad Poor Dad” book, was a New York Time bestseller for over 5 years
and has sold copies throughout the world, translated into multiple
languages.  “Rich Dad Poor Dad” has
been followed by additional books in the Rich Dad series and the Rich Dad’s
Advisor series.

 

Kim
Kiyosaki is the author of the “Rich Woman”
book; which is one of the top 50 best — selling personal finance books of all
time.

 

Special Note Regarding Forward Looking Statements

 

This
press release includes certain forward-looking statements which are based upon
the Tigrent’s current expectations and involve a number of risks and
uncertainties.  Those forward-looking
statements include all statements that are not historical statements of fact
and those regarding the intent, belief or expectations of the Company,
including, without limitation, Tigrent’s ability to successfully restructure
its licensing agreement with Rich Global on or before March 18, 2010. In
order for Tigrent to utilize the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995, investors are hereby cautioned that
certain factors may affect these forward-looking statements, including but not
limited to (i) Tigrent’s ability to enter into a definitive revised
licensing agreement which set forth the new licensing terms and related
restructuring agreements with Rich Global on or before March 18, 2010, and
(ii) additional risks which are identified in the Company’s SEC filings,
including but not limited to Tigrent’s Annual Report on Form 10-K for the
year ended December 31, 2008.

 

Contact:

 

	
  Tigrent
  Inc.:

  	
   

  	
  Constance
  Schwarberg

  
	
   

  	
   

  	
  Corporate
  Secretary

  
	
   

  	
   

  	
  Tel:
  239-542-0643

  
	
   

  	
   

  	
   

  
	
  Rich
  Dad Operating Company, LLC:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Jeff
  Rose / The Rose Group

  
	
   

  	
   

  	
  Tel.:
  (310) 280-3710

  
	
   

  	
   

  	
  jeff@therosegroup.com

  

 

 

EXHIBIT B

 

DOMAIN NAME
ASSIGNMENT AGREEMENT

 

This Domain Name Assignment Agreement (the “Agreement”) is
made as of March       , 2010, by and between Tigrent Inc., a Colorado corporation
(the “Assignor”),
the owner of record (either directly or through an intermediary proxy) for the Internet domain name listed on Schedule 1 attached hereto (the “Domain Names”), and
Rich Dad Operating Company, LLC, a
Nevada limited liability company (the “Assignee”).

 

For and in consideration of the consideration set
forth in that certain Settlement Agreement and Mutual Release between Assignor,
Assignee, and the other parties set forth therein, dated of even date herewith,
the receipt and sufficiency of which are hereby acknowledged, the Assignor and
Assignee hereto hereby agree as follows:

 

1.             Assignor
agrees to transfer and hereby transfers to Assignee all of Assignor’s rights,
title and interest, whether contractual, statutory or at common law, in and to
the Domain Names.

 

2.             Assignee
will contact the registrar of the Domain Names or another accredited domain
name registrar and/or intermediary proxy (collectively, the “Registrar”) to initiate the process the Registrar
requires to transfer the registration of the Domain Names to Assignee.  Assignor will cooperate in all respects with
Assignee and the Registrar in completing the transfer of the Domain Names from
Assignor to Assignee, including, but not limited to, executing any documents
reasonably required or promptly responding to any telephone or e-mail
communications from the Registrar confirming and approving of the Domain Name
transfers.  The Assignee shall instruct the
Registrar to contact the Assignor (as needed) at the notice address provided in
the Settlement Agreement and Mutual Release.

 

3.             Assignor
hereby irrevocably designates, makes, constitutes and appoints Assignee, its
successors or assigns, the true and lawful attorney and agent-in-fact of Assignor
with full power of substitution, for the benefit of Assignee to take any and
all actions, to execute and deliver any and all documents and instruments and
to institute and prosecute all proceedings, which Assignee may deem proper in
order to transfer the Domain Names from Assignor to Assignee.

 

4.             This
Assignment shall inure to the benefit of and is binding upon the respective
successors and assigns of Assignor and Assignee.

 

5.             This
Assignment may be executed simultaneously in 2 or
more counterparts, each of which will be deemed an original, but all of which
together will constitute 1 and the same
instrument.

 

[SIGNATURES
APPEAR ON THE FOLLOWING PAGE]

 

 

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

 

	
  ASSIGNOR:

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
  Tigrent Inc.,

  	
  Rich Dad Operating Company,
  LLC,

  
	
  a Colorado corporation

  	
  a Nevada limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Michael R. Sullivan

  
	
   

  	
   

  	
   

  	
   

  	
  Director of Operations

  

 

ACKNOWLEDGMENT

 

	
  STATE
  OF
                              

  	
   

  	
  )

  
	
   

  	
   

  	
  )
  ss:

  
	
  County
  of
                                

  	
   

  	
  )

  

 

On this, the
             day of
March         , 2010, before
me, the undersigned Notary Public, personally appeared
                          ,
who being duly sworn and is the                             
of Tigrent Inc.,  a Colorado Corporation, and
acknowledged to me that, being authorized to do so, the foregoing instrument
was voluntarily executed by the Assignor for the purposes therein contained.

 

IN WITNESS WHEREOF, I have hereunto set my hand and
official seal.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
  My
  Commission Expires:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

ACKNOWLEDGMENT

 

	
  STATE
  OF ARIZONA

  	
   

  	
  )

  
	
   

  	
   

  	
  )
  ss:

  
	
  County
  of Maricopa

  	
   

  	
  )

  

 

On this, the
             day of
March         , 2010, before
me, the undersigned Notary Public, personally appeared Michael R. Sullivan, who
being duly sworn and is the Director of Operations of Rich Dad Operating
Company, LLC, a Nevada limited liability company, and acknowledged to me that, being authorized to do so, the foregoing
instrument was voluntarily executed by the Assignee for the purposes therein
contained.

 

IN WITNESS WHEREOF, I have hereunto set my hand and
official seal.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
  My
  Commission Expires:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

SCHEDULE 1

 

www.richdadeducation.comUnassociated Document

     

    
      

        
          	 
      	
                  Exhibit
      10.10         
       

                

        

      AMENDMENT
NO. 1 TO LOAN AGREEMENT

    

    
       

      This
Amendment No. 1 (the "Amendment") dated as of January 15, 2010, is between Bank
of America, NA (the "Bank") and KSW, Inc. (the "Borrower").

    

    
       

      RECITALS

    

    
       

      A.       The
Bank and the Borrower entered into a certain Loan Agreement dated as of April 1,
2007 (together with any
previous amendments, the "Agreement").

    

    
       

      B.        The
Bank and the Borrower desire to amend the Agreement.

    

    
       

      AGREEMENT

    

    
       

      1.        Definitions.
Capitalized terms used but not defined in this Amendment shall have the meaning
given to them in the Agreement.

    

    
       

      2.        Amendments. The
Agreement is hereby amended as follows:

    

    
       

      2.1      In
Paragraph 1.2, the lead sentence is hereby amended to read in full as
follows:

    

    
       

      The line
of credit is available between the date of this Agreement and March 31, 2011, or
such earlier date as the availability may terminate as provided in this
Agreement (the "Facility No. 1 Expiration Date").

    

    
       

      
        	
                2.2       
      

              	
                Paragraph
      1.4(a) is hereby amended to read in its entirety as
    follows:

              

      

    

    
       

      
        	
                 
      

              	
                 
      (a) The interest rate is a rate per year equal to the Bank's Prime
      Rate.

              

      

    

    
       

      
        	
                   
      2.3      
      

              	
                Paragraph
      1.5(a) is hereby amended to read in its entirety as
    follows:

              

      

    

    
       

      
        	
                 
      

              	
                 
      (a) The LIBOR Rate plus 2.0 percentage
points.

              

      

    

     

    
      3.         Representations and
Warranties. When the Borrower signs this Amendment, the Borrower
represents and warrants to the Bank that: (a) there is no event which is, or
with notice or lapse of time or both would be, a default under the Agreement
except those events, if any, that have been disclosed in writing to the Bank or
waived in writing by the Bank (b) the representations and warranties in the
Agreement are true as of the date of this Amendment as if made on the date of
this Amendment, (c) this Amendment does not conflict with any law, agreement, or
obligation by which the Borrower is bound, and (d) if the Borrower is a business
entity or a trust, this Amendment is within the Borrower's powers, has been duly
authorized, and does not conflict with any of the Borrower's organizational
papers.

    

    
       

      4.         Conditions. This
Amendment will be effective when the Bank receives the following items, in form
and content acceptable to the Bank:

    

    
      

       

      

    

    
      
 

    

    Ref #:
1000284731 : - KSW Inc

    Amendment
to Loan Agreement

    

    

    
      
        
        

      

      
        - 1
-

        
          

        

      

      
        
        

      

    

    
      

    

    

    4.1   If
the Borrower or any guarantor is anything other than a natural person, evidence
that the execution, delivery, and performance by the Borrower and/or such
guarantor of this Amendment and any instrument or agreement required under this
Amendment have been duly authorized.

    
       

      5.         Effect of Amendment.
Except as provided in this Amendment, all of the terms and conditions of the
Agreement shall remain in full force and effect.

    

    
       

      6.         Counterparts. This
Amendment may be executed in counterparts, each of which when so executed shall
be deemed an original, but all such counterparts together shall constitute but
one and the same instrument.

    

    
       

      7.         FINAL AGREEMENT. BY
SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT: (A) THIS DOCUMENT
REPRESENTS THE FINAL AGREEMENT BETWEEN PARTIES WITH RESPECT TO THE SUBJECT
MATTER HEREOF, (B) THIS DOCUMENT SUPERSEDES ANY COMMITMENT LETTER, TERM SHEET OR
OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS RELATING TO THE SUBJECT MATTER
HEREOF, UNLESS SUCH COMMITMENT LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE OF
TERMS AND CONDITIONS EXPRESSLY PROVIDES TO THE CONTRARY, (C) THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES, AND (D) THIS DOCUMENT MAY NOT BE
CONTRADICTED BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OR UNDERSTANDINGS OF THE PARTIES.

    

    
       

      The
parties executed this Amendment as of the date stated at the beginning of this
Amendment, intending to create an instrument executed under
seal.

    

     

    
      
        
          
            	 	BANK:	 
	 	 	 
	 	Bank of America, N.A. 	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	/s/ Victoria
      Scolaro	 
	 	 	Victoria
      Scolaro, Vice President	 
	 	 	 	 
	 	 	 	 

          

        

      

    

     

    

      
        
          
            	 	BORROWER(S):	 
	 	 	 
	 	KSW, Inc. 	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	/s/ Floyd
      Warkol	 (Seal)
	 	 	Floyd
      Warkol, Chief Executive Officer 	 
	 	 	 	 
	 	 	 	 

          

        

      

    

     

    
 

    Ref #:
1000284731 : - KSW Inc

    Amendment
to Loan Agreement

    
      

    

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

    

    CONSENT AND REAFFIRMATION OF
GUARANTORS

    
       

      Each of
the undersigned, as a guarantor of the Borrower's obligations to the Bank under
the Agreement, hereby (i) acknowledges and consents to the foregoing Amendment,
(ii) reaffirms its obligations under its respective guaranty in favor of the
Bank and under any agreement under which it has granted to the Bank a lien or
security interest in any of its real or personal property, and (iii) confirms
that such guaranty and other agreements (if any) remain in full force and
effect, without defense, offset, or counterclaim. (Capitalized terms used herein
shall have the meanings specified in the foregoing
Amendment.)

    

    
       

      Although
each of the undersigned has been informed of the terms of the Amendment, each
understands and agrees that the Bank has no duty to so notify it or any other
guarantor or to seek this or any future acknowledgment, consent or
reaffirmation, and nothing contained herein shall create or imply any such duty
as to any transactions, past or future.

    

    

    

    GUARANTOR(S):

    

    KSW
Mechanical Services, Inc.

     

    
      
        
          
            
              
                	 	 
	 	 	 	 
	By:
      	/s/ Floyd
      Warkol	 (Seal)
	 	 	Floyd
      Warkol, Chief Executive Officer	 
	 	 	 	 
	 	 	 	 

              

            

          

        

      

    

     

    
Ref #:
1000284731 : - KSW Inc

    Amendment
to Loan Agreement

    

    
      
         

      

      
        - 3
-

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