Document:

Exhibit

Exhibit 10.1

STOCK PURCHASE AGREEMENT
This Stock Purchase Agreement (“Agreement”) is dated as of September 20, 2016 and is by and among (i) First Merchants Corporation, an Indiana corporation (the “Purchaser”), (ii) Leland E. Boren, Leland E. Boren IRA, LaRita R. Boren CRT III, Lael Eric Boren Trust, Andrew Jordan Bowser Trust, Samantha Lyn Bowser Trust, Lukas Eric Boren Trust, Karan Laurae Meyers Trust, and Katelyn Marie Boren Trust (each, a “Seller” and collectively, the “Sellers”), and (iii) Leland E. Boren, in his capacity as representative of the Sellers (the “Sellers’ Representative”).  The parties hereto are sometimes referred to herein individually as a “Party” and collectively as the “Parties”.  Capitalized terms not otherwise defined herein have the meanings assigned to such terms in Article 10.
RECITALS
A.    The Sellers own, in the aggregate, Four Hundred Ninety-Five Thousand One Hundred Twelve (495,112) issued and outstanding shares of common stock (the “Shares”) of Independent Alliance Banks, Inc., an Indiana corporation (the “Company”). 
B.    The Sellers desire to sell the Shares to the Purchaser, and the Purchaser desires to purchase the Shares from the Sellers, on the terms and subject to the conditions set forth in this Agreement.
NOW, THEREFORE, in consideration of the foregoing and the mutual promises, covenants, and agreements herein contained and other good and valuable consideration, the receipt of which is hereby acknowledged, the Parties hereby agree as follows:
ARTICLE 1
SALE AND PURCHASE OF SHARES

Subject to the terms and conditions of this Agreement, at the Closing, the Sellers agree to sell, convey, transfer, and irrevocably assign and deliver to the Purchaser, and the Purchaser agrees to purchase and accept from the Sellers, all right, title and interest in and to the Shares, free and clear of all Security Interests.
ARTICLE 2
PURCHASE PRICE

In consideration of the purchase and sale of the Shares, the Purchaser shall pay to the Sellers the purchase price in the aggregate amount of Nineteen Million Eight Hundred Four Thousand, Four Hundred Eighty and 00/100ths Dollars ($19,804,480.00) (the “Purchase Price”).  The Purchase Price shall be payable in cash, by wire transfer, certified check or other immediately available funds on the Closing Date in the amounts and to the Sellers listed on Schedule 4.5. 

ARTICLE 3
REPRESENTATIONS AND WARRANTIES OF PURCHASER

The Purchaser represents and warrants to the Sellers the following: 
3.1    Organization; Authority; Enforceability.  The Purchaser is duly incorporated and validly existing under the applicable Law of its jurisdiction of incorporation.  The Purchaser has the necessary corporate power and authority, and has taken all corporate action necessary, to execute deliver and perform this Agreement, and all other documents and agreements executed or to be executed by it under or in connection with this Agreement, and to perform its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby.  This Agreement does, and all other documents and agreements to be executed by the Purchaser as contemplated hereunder shall, constitute the legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with their respective terms and conditions, subject to the effect of receivership, conservatorship or supervisory powers of any regulatory agencies and subject to the effect of bankruptcy, insolvency, reorganization, moratorium or similar Laws now or hereafter in effect relating to or affecting the enforcement of creditors’ rights generally and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at Law or in equity).
3.2    No Conflicts.  The execution and delivery of this Agreement and the other documents and agreements to be executed by the Purchaser as contemplated hereunder, the consummation of the transactions contemplated hereby or thereby, and the compliance with the terms and conditions hereof or thereof will not (i) contravene any provision of Law or any Order or other restriction binding upon the Purchaser, or contravene any Order or permit applicable to the Purchaser; or (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of any obligation under, create in any party the right to accelerate, terminate, modify or cancel, or require any notice under, any agreement or other arrangement to which the Purchaser is a party or by which it is bound.
3.3    Required Filings and Consents.  Other than in connection or in compliance with the provisions of the Bank Holding Company Act of 1956, federal and state securities laws, and applicable federal and Indiana banking statutes, all as amended, and the rules and regulations promulgated thereunder, no notice to, filing with, authorization of, exemption by, or consent or approval of, any Person, including any public body or authority, that has not been already provided or obtained is necessary for the consummation by the Purchaser of the transactions contemplated by this Agreement.  
3.4    Brokers, Finders and Agents.  The Purchaser has no liability or obligation to pay any fees or commissions to any broker, finder, advisor or agent with respect to the transactions contemplated hereunder for which any of the Sellers may become liable.
3.5    Financing.  The Purchaser has sufficient cash and/or available lines of credit under its existing credit facilities to make payment of all amounts to be paid by it hereunder on the Closing Date.  The obligations of the Purchaser under this Agreement are not subject to any conditions regarding the Purchaser’s or any other Person’s ability to obtain any financing for the consummation of the transactions contemplated hereby. 

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ARTICLE 4
REPRESENTATIONS AND WARRANTIES OF SELLERS

The Sellers, jointly and severally, represent and warrant to the Purchaser the following: 
4.1    Organization; Authority; Enforceability.  Each of the Sellers which are entities are duly formed and validly existing under the applicable Law of its jurisdiction of incorporation or formation.  Each Seller has the necessary power and authority (corporate or otherwise), and has taken all action necessary, to execute, deliver and perform this Agreement and all other documents and agreements executed or to be executed by such Seller under or in connection with this Agreement, and to perform such Seller’s obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby.  This Agreement does, and all other documents and agreements to be executed by each Seller as contemplated hereunder shall, constitute the legal, valid and binding obligation of such Seller enforceable in accordance with their respective terms and conditions, subject to the effect of receivership, conservatorship or supervisory powers of any regulatory agencies and subject to the effect of bankruptcy, insolvency, reorganization, moratorium or similar Laws now or hereafter in effect relating to or affecting the enforcement of creditors’ rights generally and subject to general principles of equity (regardless of whether enforcement is sought in a proceeding at Law or in equity).
4.2    No Conflicts.  The execution and delivery of this Agreement and the other documents to be executed by each Seller as contemplated hereunder, the consummation of the transactions contemplated hereby and thereby, and compliance with the terms and conditions hereof or thereof will not (i) contravene any provision of Law or any Order or other restriction binding upon such Seller, or contravene any Order or permit applicable to such Seller, (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of any obligation under, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under, any agreement to which such Seller is a party, or by which such Seller is bound, or to which the Shares are subject, or (iii) result in the attachment, creation or imposition of any Security Interest upon any of the Shares or result in the shares becoming nonvoting or subject to any right of repurchase, option, warrant, or other agreement or commitment.
4.3    Required Filings and Consents.  Other than in connection or in compliance with the provisions of the Bank Holding Company Act of 1956, federal and state securities laws, and applicable federal and Indiana banking statutes, all as amended, and the rules and regulations promulgated thereunder, no notice to, filing with, authorization of, exemption by, or consent or approval of, any Person, including any public body or authority, that has not been already provided or obtained is necessary for the consummation by the Sellers of the transactions contemplated by this Agreement. 
4.4    Litigation and Claims.  There is no pending or, to the Sellers’ Knowledge, threatened claim, charge, complaint, demand, hearing, action, suit, arbitration, inquiry, proceeding, investigation, suspension, cease-and-desist order or consent agreement, memorandum of understanding or other regulatory enforcement action by or before any Governmental Entity to which any Seller is a party, which seeks to restrain, condition or prohibit the transactions contemplated herein or otherwise restrict the ability of any Seller to fulfill its obligations hereunder.

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4.5    Title to the Shares.  The Sellers are the record and beneficial owners of the Shares listed on Schedule 4.5, and, as of the Closing, the Sellers will have, good and valid title, free and clear of all Security Interests, to the Shares with full right and lawful authority to transfer the Shares to the Purchaser pursuant to the terms of this Agreement.  The Sellers are not a party to any option, warrant, purchase right, or other agreement or commitment (other than this Agreement) that would require (a) any of the Sellers to sell, transfer, or otherwise dispose of any portion of the Shares, (b) any of the Sellers to repurchase, redeem or otherwise acquire any of the Shares, or (c) the registration for sale of any of the Shares.  The Sellers are not a party to any voting trust, proxy, or other agreement or understanding with respect to the voting of any of the Shares.
4.6    Material Nonpublic Information.  Sellers have no Knowledge of any “material nonpublic information” regarding the Company as those terms have been interpreted under Section 10(b) of the Securities Exchange Act of 1934.

4.7    Brokers, Finders and Agents.  The Sellers have no liability or obligation to pay any fees or commissions to any broker, finder, advisor or agent with respect to the transactions contemplated hereunder for which the Purchaser may become liable.
ARTICLE 5
CLOSING; CONDITIONS TO CLOSING

5.1    Closing.  The closing (the “Closing”) of the transaction contemplated hereby shall take place at the offices of Bingham Greenebaum Doll LLP, 2700 Market Tower, 10 W. Market Street, Indianapolis, Indiana 46204, on the date (the “Closing Date”) that is the later of (a) three (3) Business Days after all of the conditions set forth in this Article 5 have been satisfied or waived (other than those conditions which by their terms are intended to be satisfied at the Closing) or (b) such other date as mutually agreed upon by the Purchaser and the Sellers’ Representative. 
5.2    Conditions Precedent to Closing.  The obligations of each of the parties hereto to consummate the transactions contemplated by this Agreement is subject to the satisfaction and fulfillment of each of the following conditions on or prior to the Closing Date: 
(a)    Regulatory Notices and Approvals.  (i) All required notices shall be delivered by the Purchaser to the Federal Reserve Board and the Indiana Department of Financial Institutions and the Federal Reserve Board and the Indiana Department of Financial Institutions shall have authorized and approved the transactions contemplated by this Agreement, if required; (ii) all appropriate orders, consents, approvals and clearances from all other regulatory agencies and governmental authorities whose orders, consents, approvals or clearances are required by law for consummation of the transactions contemplated by this Agreement shall have been obtained; and (iii) all regulatory approvals remain in full force and effect and all statutory waiting periods shall have expired or been terminated.
(b)    No Judicial Prohibition.  Neither the Purchaser, the Sellers, nor the Company shall be subject to any order, decree or injunction of a court or agency of competent jurisdiction which enjoins or prohibits the consummation of the transactions contemplated in this Agreement.

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(c)    Performance of Obligations.  The Parties shall have performed or complied in all material respects with all obligations, covenants, and conditions required by this Agreement to be performed or complied with by the Parties at or prior to the Closing, including the conditions set forth in Section 5.2, Section 5.3 and Section 5.4 of this Agreement.
(d)    Representations and Warranties.  The representations and warranties of the Parties set forth in Articles 3 and 4 are still true and correct as of the Closing Date.
5.3    Sellers Deliverables.  At or prior to the Closing and as a condition to Closing, the Sellers’ Representative shall deliver to the Purchaser the following:
(a)    Certificates dated as of a recent date from the applicable Governmental Entity in the jurisdiction of incorporation of the Company to the effect that it validly exists and is in good standing in such jurisdiction.
(b)    Evidence reasonably satisfactory to the Purchaser of the authority and incumbency of the persons acting on behalf of the Sellers in connection with the execution of this Agreement and any document delivered pursuant to this Agreement and certifying as to the adoption and continuing effect of appropriate resolutions by the governing body of each of the Sellers (if applicable) authorizing the Sellers’ execution, delivery, and performance of this Agreement and the other documents and agreements contemplated hereby.
(c)    Copies of all consents, approvals and waivers necessary to transfer the Shares.
(d)    Evidence that all Security Interests relating to the Shares have been released.
(e)    Share certificates representing the Shares duly endorsed in blank for transfer, or accompanied by irrevocable security transfer powers of attorney duly executed in blank, in either case by the holders of record, together with evidence satisfactory to the Purchaser that the Purchaser or its nominee(s) have been entered upon the books of the Company as the holder of the Shares.
(f)    A certificate signed by the Sellers’ Representative, dated the Closing Date, certifying that (i) all of the representations and warranties of the Sellers are true, accurate and correct in all material respects on and as of the Closing Date, except that representations and warranties that are qualified by materiality or a Material Adverse Effect shall be true and correct in all respects, and provided that for those representations and warranties which address matters only as of an earlier date, then they shall be tested as of such earlier date; (ii) all the covenants of the Sellers have been complied with in all material respects from the date of this Agreement through and as of the Closing Date; and (iii) the Sellers have satisfied and fully complied in all material respects with all conditions necessary to make this Agreement effective as to them.
(g)    All such other good and sufficient instruments of conveyance and transfer, all in forms reasonably satisfactory to the Purchaser as shall be effective to vest in the Purchaser all right, title and interest in and to the Shares, free and clear of all Security Interests.

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5.4    Purchaser Deliverables:  At or prior to the Closing and as a condition to Closing, the Purchaser shall deliver to the Sellers the following:
(h)    The Purchase Price to each Seller’s account or accounts designated in writing by the Sellers’ Representative.
(i)    A certificate signed by the Chief Financial Officer of the Purchaser, dated the Closing Date, certifying that (i) all of the representations and warranties of the Purchaser are true, accurate and correct in all material respects on and as of the Closing Date, except that representations and warranties that are qualified by materiality or a Material Adverse Effect shall be true and correct in all respects, and provided that for those representations and warranties which address matters only as of an earlier date, then they shall be tested as of such earlier date; (ii) all the covenants of the Purchaser have been complied with in all material respects from the date of this Agreement through and as of the Closing Date; and (iii) the Purchaser has satisfied and fully complied in all material respects with all conditions necessary to make this Agreement effective as to it.
ARTICLE 6
COVENANTS

6.1    Cooperation.  The Purchaser and the Sellers shall cooperate with each other and each Party’s respective officers, employees, attorneys, accountants, and other agents (as applicable) to do such other acts and things in good faith as may be reasonable, necessary or appropriate to timely effectuate the intents and purposes of this Agreement and the consummation of the transactions contemplated hereby.  After the Closing, each of the Parties agrees to execute such documents as may be reasonably requested by any of the other Parties in order to consummate the transactions contemplated hereby and hereunder.  

6.2    Confidentiality.  Each of the Parties shall hold, and shall cause its representatives to hold, in confidence all documents and information furnished to it by or on behalf of the other Parties in connection with the transactions contemplated hereby pursuant to the terms of the Mutual Confidentiality and Non-Disclosure Agreement dated August 31, 2016 between the Purchaser and Leland E. Boren (the “Confidentiality Agreement”), which shall continue in full force and effect until the Closing, at which time such Confidentiality Agreement and the obligations of the parties under this Section 6.2 shall terminate, except as otherwise set forth in the Confidentiality Agreement.  If this Agreement is terminated pursuant to Section 8.1, the Confidentiality Agreement shall continue in accordance with its terms.

ARTICLE 7
INDEMNIFICATION

7.1    Indemnification by Purchaser.  The Purchaser shall indemnify, defend and hold the Sellers and the Sellers’ Representative harmless from and against all demands, claims, causes of action, assessments, losses, damages, liabilities, costs and expenses (each, a “Claim” and collectively, the “Claims”), including any liability for interest, penalties, reasonable attorneys’ fees, and any direct damages (but excluding any liability for exemplary, special, consequential, or punitive damages) that any of the Sellers or the Sellers’ Representative is or becomes responsible for as the result of: 

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(a) any inaccuracy or misrepresentation in or breach of any of the covenants, warranties or representations made by the Purchaser in this Agreement, or in any document or other instrument required hereunder to be furnished in connection with the transactions contemplated by this Agreement, or (b) any other breach by the Purchaser of this Agreement.

7.2    Indemnification by Sellers.  The Sellers shall indemnify, defend and hold the Purchaser harmless from and against all Claims, including any liability for interest, penalties, reasonable attorneys’ fees, and any direct damages (but excluding any liability for exemplary, special, consequential, or punitive damages) that the Purchaser is or becomes responsible for as the result of: (a) any inaccuracy or misrepresentation in or breach of any of the covenants, warranties or representations made by the Sellers or the Sellers’ Representative in this Agreement, or in any document or other instrument required hereunder to be furnished in connection with the transactions contemplated by this Agreement, or (b) any other breach by the Sellers or the Sellers’ Representative of this Agreement. 

7.3    Exclusive Remedy; Cap. The rights and remedies of the Parties contained in this Article 7 shall be the sole and exclusive rights and remedies of the Parties with respect to any Claim arising under this Article 7 or otherwise in connection with this Agreement or the transactions contemplated hereby.  In no event shall the liability of any Seller for indemnification under Section 7.2 exceed the amount of the Purchase Price allocated to such Seller as set forth on Schedule 4.5.  In no event shall the liability of Purchaser for indemnification under Section 7.1 exceed the Purchase Price.

ARTICLE 8
TERMINATION

8.1    Termination Rights.  This Agreement may, by written notice given prior to the Closing, be terminated:
(a)    By mutual written consent of the Purchaser and the Sellers’ Representative;
(b)    By either the Purchaser or the Sellers’ Representative if the Closing has not occurred (other than as a result of the failure of any Party seeking to terminate this Agreement to comply with such Party’s obligations under this Agreement) on or before November 30, 2016, or such later date as the parties may agree upon in writing.
(c)    By either the Purchaser or the Sellers’ Representative, if either (i) any approval, consent or waiver of any Governmental Entity required to permit consummation of the transactions contemplated by this Agreement shall have been denied and such denial has become final and non-appealable, or (ii) any court or other Governmental Entity of competent jurisdiction shall have issued a final, unappealable order enjoining or otherwise prohibiting consummation of the transactions contemplated by this Agreement.
(d)    By the Purchaser, in the event of either (i) a material breach by the Sellers of any representation or warranty contained herein which breach cannot be or has not been cured within thirty (30) days after the giving of written notice to the Sellers of such breach; (ii) a material breach by the Sellers of any of the covenants or agreements contained herein, which breach cannot be or 

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has not been cured within thirty (30) days after the giving of written notice to the Sellers of such breach; (iii) any event, fact or circumstance shall have occurred with respect to the Sellers that has had or could be reasonably expected to have a material adverse effect on the ability of the Sellers to sell the Shares to the Purchaser; or (iv) any event, fact or circumstance with respect to the Company that constitutes a Material Adverse Effect shall have occurred, is threatened to occur, or is otherwise imminent.
(d)    By the Sellers’ Representative, in the event of either (i) a material breach by the Purchaser of any representation or warranty contained herein which breach cannot be or has not been cured within thirty (30) days after the giving of written notice to the Purchaser of such breach; (ii) a material breach by the Purchaser of any of the covenants or agreements contained herein, which breach cannot be or has not been cured within thirty (30) days after the giving of written notice to the Purchaser of such breach; or (iii) any event, fact or circumstance with respect to the Purchaser that has had or could be reasonably expected to have a material adverse effect on the ability of the Purchaser to purchase the Shares from the Sellers shall have occurred, is threatened to occur, or is otherwise imminent. 
8.2    Consequences of Termination.  In the event of any termination of this Agreement by a Party under Section 8.1 above, this Agreement shall become void and of no further force or effect, except as provided in Section 6.2, and there will be no liability or obligation on the part of any Party hereto except under this Section 8.2, and Article 9, which shall survive the termination of this Agreement, and provided further, that each Party hereto shall remain liable to the other Parties for any liability arising out of any material breach of this Agreement by such Party prior to such termination which was not cured as of the time of termination.
ARTICLE 9
GENERAL PROVISIONS

9.1    Amendment.  No amendment, modification or alteration of the terms or provisions of this Agreement shall be binding unless the same shall be in writing and duly executed by the Purchaser and the Sellers’ Representative; provided, however, that any of the terms or provisions of this Agreement may be waived in writing at any time by the Party that is entitled to the benefits of such waived terms or provisions.  No waiver of any of the provisions of this Agreement shall be deemed to be, or shall constitute, a waiver of any other provision hereof (whether or not similar).  No delay on the part of any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof.
9.2    Entire Agreement.  Except as set forth in Section 6.2 of this Agreement, this written document and all Schedules and Exhibits hereto expresses the entire purchase agreement between the Parties with respect to the subject matter hereof and supersedes any prior agreements or understandings concerning such subject matter.
9.3    Third Party Beneficiaries.  This Agreement is for the sole benefit of the Parties and their  respective heirs, successors, and permitted assigns and nothing herein expressed or implied shall give or be construed to give any Person, other than the Parties and such heirs, successors, and assigns, any legal or equitable rights hereunder.

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9.4    Expenses.  All expenses incurred by each of the Parties in connection with or related to the authorization, preparation and execution of this Agreement and the closing of the transactions contemplated hereby, including all fees and expenses of agents, representatives, consultants, counsel and accountants employed by any such Party, shall be borne solely by the Party which has incurred such expense.

9.5    Notice.  All written notices, demands and requests of any kind which any Party may be required or may desire to serve upon any other Party in connection with this Agreement shall be in writing and shall be delivered only by (a) personal delivery; (b) registered or certified mail, in each case, return receipt requested and postage prepaid; (c) nationally recognized overnight courier, with all fees prepaid; or (d) facsimile, provided that the facsimile is promptly followed by delivery of hard copy of such notice which provides written verification of receipt (each, a “Notice”).  All Notices shall be addressed to the Parties to be served as follows:
	
		
	If to any Seller:
	Leland E. Boren
P.O. Box 183
Upland, IN 46989

(for overnight mail only)
Leland E. Boren
9628 E. 900 S.
Upland, IN 46989

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

Barnes & Thornburg LLP
11 South Meridian Street
Indianapolis, Indiana  46204
Attn: Thomas M. Maxwell, Esq.
Facsimile:  (317) 231-7433

	If to the Purchaser:

	First Merchants Corporation
200 E. Jackson Street
Muncie, Indiana 47305
Attn:  Brian T. Hunt, General Counsel
Facsimile:  (765) 741-7283

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

Bingham Greenebaum Doll LLP
2700 Market Tower
10 West Market Street
Indianapolis, Indiana  46204-4900
Attn: Jeremy E. Hill, Esq.
Facsimile:  (317) 236-9907

	 
	 

Service of any such notice or demand so made shall be deemed complete on the day of actual delivery thereof as shown by the addressee’s registry or certification receipt or other evidence of receipt, or refusal of delivery.  Any Party may from time to time by notice in writing served upon the other as aforesaid designate a different mailing address or a different or additional Person to which all such notices or demands hereafter are to be addressed.
9.6    Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.  This Agreement shall be governed by, and construed under, the Laws of the State of Indiana, and all rights and remedies shall be governed by said Laws, without regard to principles of conflicts of Laws.  To the fullest extent permitted by Law, the Parties hereto agree that any claim, suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall only be brought in the state courts in the State of Indiana or the Federal courts located in the State of Indiana, and not in any other State or Federal courts located in the United States of America or any court in any other country, and each of the Parties hereby consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by Law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding which is brought in any such court has been brought in an inconvenient forum.  To the fullest extent permitted by Law, process in any such suit, action or proceeding may be served on any Party anywhere in the world, whether within or without the jurisdiction of any such court.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
9.7    Severability.  Should any provision of this Agreement be held unenforceable or invalid under the Laws of the United States of America or the State of Indiana, or under any other applicable Laws of any other jurisdiction, then the Parties agree that such provision shall be deemed reformed and modified for purposes of performance of this Agreement in such jurisdiction to the extent necessary to render it lawful and enforceable, or if such a reformation or modification is not possible without materially altering the intention of the Parties, then such provision shall be severed herefrom for purposes of performance of this Agreement in such jurisdiction.  The validity of the remaining provisions of this Agreement shall not be affected by any such modification or severance.

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9.8    Public Announcements.  Neither the Sellers nor the Sellers’ Representative, on the one hand, nor the Purchaser, on the other hand, shall make any public statements, including any press releases or any other public (or non-confidential) disclosure (whether or not in response to an inquiry), with respect to this Agreement and the transactions contemplated hereby without the prior written consent of the other Party (which consent shall not be unreasonably conditioned, withheld or delayed) except as may be required by applicable Law.  If a public statement is required to be made by applicable Law, the Parties shall use commercially reasonable efforts to consult with each other in advance as to the contents and timing thereof.
9.9    Headings; Contents; Construction.  All paragraph headings herein are inserted for convenience of reference only and shall not modify or affect the construction or interpretation of any provision of this Agreement.  Unless the context clearly otherwise requires, as used herein, the term “Agreement” means this Agreement and the Schedule attached hereto.  The words “herein”, “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section, or other subdivision.  The term “including” shall be deemed to be followed by the phrase “without limitation”.  The term “or” shall not be exclusive.  Unless specifically stated otherwise, the symbol “$” and the word “dollar” shall refer to the United States dollar.  Nothing in the Schedule attached hereto shall be deemed adequate in and of itself to disclose an exception to a representation or warranty made herein, however, unless the Schedule identifies the exception with reasonable particularity and describes the relevant facts in reasonable detail.
9.10    Successors and Assigns.  The terms and conditions of this Agreement shall inure to the benefit of and be binding upon each of the Parties hereto and their respective heirs, successors and permitted assigns.  This Agreement may not be assigned by any of the Sellers without the prior written consent of the Purchaser, or be assigned by the Purchaser without the prior written consent of the Sellers’ Representative provided, however, that the Purchaser may, without the consent of the Sellers’ Representative, assign its rights, interests and obligations under this Agreement to any Affiliate of the Purchaser with the financial resources to consummate the transactions contemplated hereby.  
9.11    Counterparts.  This Agreement, and any amendment hereto, may be executed in two (2) or more counterparts, each of which shall for all purposes be deemed to be an original and all of which shall constitute the same instrument.  A facsimile or Adobe PDF copy of any such signed counterpart shall be treated and shall have the same force and effect as an originally signed counterpart.
9.12    Sellers’ Representative.  Each Seller hereby irrevocably constitutes and appoints the Sellers’ Representative as its true and lawful agent and attorney-in-fact, with full power of substitution to perform the duties of Sellers’ Representative under the terms of this Agreement and to act in such Seller’s name, place and stead with respect to all transactions contemplated by and all terms and provisions of this Agreement and the documents contemplated under this Agreement, and to act on such Seller’s behalf in any proceeding involving this Agreement or any documents contemplated under this Agreement, and to do or refrain from doing all such further acts and things. The Sellers’ Representative shall have all rights and powers set forth herein in addition to all the rights and powers it shall deem necessary or appropriate in connection with the transactions contemplated by this Agreement and the documents contemplated under this Agreement, including the power:

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(a)    to receive on behalf of, and to distribute all amounts payable to such Seller under the terms of this Agreement;
(b)    to do or refrain from doing any further act or deed on behalf of such Seller which Sellers’ Representative deems necessary or appropriate in its sole discretion relating to the subject matter of this Agreement and the documents contemplated under this Agreement, as fully and completely as such Seller could do if personally present;
(c)    to amend this Agreement on behalf of such Seller; and
(d)    to replace itself as Sellers’ Representative; however, in the event that Sellers’ Representative resigns, dies or is otherwise unable to serve as Sellers’ Representative, then Angela M. Darlington shall become the Sellers’ Representative.
Sellers’ Representative shall have no liability to any Seller as the representative of any Seller or as the attorney-in-fact of any Seller except for liability arising from actions taken in bad faith by Sellers’ Representative on behalf of, or in the name of, such Seller.
ARTICLE 10
DEFINITIONS

Capitalized terms not defined elsewhere herein shall have the following meanings ascribed to them:
“Affiliate” means (a) with respect to any Person, any Person controlling, controlled by, or under common control with such Person (or an Affiliate of such Person), where “control” means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities, by contract, or otherwise, and (b) if such Person is a partnership, any general partner thereof.
“Agreement” has the meaning set forth in the introductory paragraph hereto.
“Business Day” means any day other than a Saturday, Sunday or a day on which banks in Indianapolis, Indiana are authorized or obligated by Law or executive order to close.
“Claim” has the meaning set forth in Section 7.1 hereof.
“Closing” has the meaning set forth in Section 5.1 hereof.
“Closing Date” has the meaning set forth in Section 5.1 hereof.
“Company” has the meaning set forth in the recitals hereto.
“Confidentiality Agreement” has the meaning set forth in Section 6.2 hereof. 

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“Governmental Entity” means any United States federal, state or local, or foreign court, legislative, executive or regulatory authority, agency, bureau, board, commission, department, official, political subdivision, tribunal or other instrumentality of any federal, state, local or foreign government or any arbitrational or mediational tribunal.
“Knowledge” means, with respect to any Person, the actual knowledge of such Person (including, where applicable, the actual knowledge of the officers, directors and key employees of such Person).  
“Law” means any and all applicable (i) laws, constitutions, treaties, statutes, codes, ordinances, rules, regulations and bylaws, (ii) Orders and (iii) to the extent that they have the force of law, policies, guidelines, notices and protocols of any Governmental Entity.
“Material Adverse Effect”  For the purpose of this Agreement, a “Material Adverse Effect” means any effect that is material and adverse to the financial position, results of operations or business of the Company and its subsidiaries taken as a whole; provided, however, that a Material Adverse Effect shall not be deemed to include the impact of (a) changes in banking laws or interpretations thereof by courts or governmental authorities, (b) changes in generally accepted accounting principles or regulatory accounting requirements applicable to banks or their holding companies generally, (c) changes in the general level of interest rates (including the impact on the securities portfolios of the Company or conditions or circumstances relating to or that affect either the United States economy, financial or securities markets or the banking industry, generally, and (d) the occurrence of any military or terrorist attack within the United States or any of its possessions or offices; provided that in no event shall a change in the trading price of the Shares, by itself, be considered to constitute a Material Adverse Effect on the Company (it being understood that the foregoing proviso shall not prevent or otherwise affect a determination that any effect underlying such decline has resulted in a Material Adverse Effect).
“Notice” has the meaning set forth in Section 9.5 hereof.
“Order” means any order, judgment, ruling, injunction, assessment, award, decree, directive, charge, receivable or writ of any Governmental Entity.
“Party” or “Parties” has the meaning set forth in the introductory paragraph hereto.
“Person” means an individual, a partnership, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, a limited liability company, limited liability partnership, or a Governmental Entity.
“Purchase Price” has the meaning set forth in Article 2 hereof.
“Purchaser” has the meaning set forth in the introductory paragraph hereto.
“Security Interest” means any adverse claim, restriction on voting or transfer or pledge, lien, mortgage, hypothecation, collateral assignment, charge, encumbrance, easement, covenant, restriction, title defect, encroachment or security interest of any kind.
“Seller” or “Sellers” has the meaning set forth in the introductory paragraph hereto.

- 13 -

“Sellers’ Representative” has the meaning set forth in the introductory paragraph hereto.
“Shares” has the meaning set forth in the recitals hereto. 

[SIGNATURE PAGE FOLLOWS]

- 14 -

IN WITNESS WHEREOF, the Parties hereto have executed this Stock Purchase Agreement as of the date first above written.

PURCHASER:

FIRST MERCHANTS CORPORATION

By:   /s/  Mark Hardwick                
Mark Hardwick, Executive Vice President, Chief Operating Officer and Chief Financial Officer

[Signature Page of Purchaser]

IN WITNESS WHEREOF, the Parties hereto have executed this Stock Purchase Agreement as of the date first above written.

SELLERS’ REPRESENTATIVE:

  /s/  Leland E. Boren            
Leland E. Boren, as Sellers’ Representative

[Signature Page of Sellers’ Representative]

IN WITNESS WHEREOF, the Parties hereto have executed this Stock Purchase Agreement as of the date first above written.
SELLERS:
	
		
	Leland E. Boren IRA

By: /s/  Leland E. Boren      
Printed: Leland E. Boren      
Title: __________________________
	LaRita R. Boren CRT III

By:  /s/  Leland E. Boren      
Printed: Leland E. Boren
Title: Trustee

	Lael Eric Boren Trust

By:  /s/  Sally J. Brodkorb      
Printed: Sally J. Brodkorb
Title: Trustee
	Andrew Jordan Bowser Trust

By:  /s/  Leland E. Boren      
Printed: Leland E. Boren
Title: Trustee

	Samantha Lyn Bowser Trust

By:  /s/  Leland E. Boren      
Printed: Leland E. Boren
Title: Trustee
	Lukas Eric Boren Trust

By:  /s/  Leland E. Boren      
Printed: Leland E. Boren
Title: Trustee

	Karan Laurae Meyers Trust

By:  /s/  Leland E. Boren      
Printed: Leland E. Boren
Title: Trustee
	Katelyn Marie Boren Trust

By:  /s/  Leland E. Boren      
Printed: Leland E. Boren
Title: Trustee

	By:  /s/  Leland E. Boren      
Leland E. Boren
	 

[Signature Page of Sellers]

Schedule 4.5
Shares and Purchase Price

	
					
	Shareholder
	Number of Shares of Common Stock of the Company

	Purchase Price

	Leland E. Boren
	420,509
	

	$16,820,360
	

	Leland E. Boren IRA
	2,787
	

	$111,480
	

	LaRita R. Boren CRT III
	61,305
	

	$2,452,200
	

	Lael Eric Boren Trust
	3,483
	

	$139,320
	

	Andrew Jordan Bowser Trust
	2,088
	

	$83,520
	

	Samantha Lyn Bowser Trust
	1,940
	

	$77,600
	

	Lukas Eric Boren Trust
	1,000
	

	$40,000
	

	Karan Laurae Meyers Trust
	1,000
	

	$40,000
	

	Katelyn Marie Boren Trust
	1,000
	

	$40,000
	

	TOTALS
	495,112
	

	$19,804,480Exhibit 10.4

 

 

 

Software Development Agreement

 

 

	
TripBorn, Inc.

	

TAKNIKI COMMUNICATIONS (India) PRIVATE

LIMITED

 

 

 

 

SOFTWARE DEVELOPMENT AGREEMENT

This Software Development Agreement (the “Agreement” or “Software Development Agreement”) states the terms and conditions that govern the contractual agreement between TAKNIKI COMMUNICATIONS (INDIA) PRIVATE LIMITED having his principal place of business at 64 JAGAT PARK, GHATLODIA, AHMEDABAD 380061, GUJARAT, INDIA, (the “Developer”), and TRIPBORN, INC. having its principal place of business at 812 Venus Atlantis Corporate Park, Near Prahalad Nagar Garden, Satellite, Ahmedabad 380015, Gujarat, India (the “Client”) who agrees to be bound by this Agreement.

WHEREAS, the Client operates an  online transaction system  (the “Software”) in its business as an online travel agency, and the Developer is a contractor with whom the Client has come to an agreement to further develop and enhance the Software as further described in Exhibits A and B.

NOW, THEREFORE, In consideration of the mutual covenants and promises made by the parties to this Software Development Agreement, the Developer and the Client (individually, each a “Party” and collectively, the “Parties”) covenant and agree as follows:WITNESSETH:

1. DEVELOPER’S DUTIES

The Client hereby engages the Developer and the Developer hereby agrees to be engaged by the Client to develop the Software in accordance with the specifications attached hereto as Exhibit A (the “Specifications”).

		1.	The Developer shall complete the development of the Software according to the milestones described on the form attached hereto as Exhibit B. In accordance with such milestones, the final product shall be delivered to the Client by DECEMBER 31, 2016 (the “Delivery Date”).

		2.	For a period of SIX MONTHS after delivery of the final product, the Developer shall provide the Client attention to answer any questions or assist solving any problems with regard to the operation of the Software.

		3.	Except as expressly provided in this Software Development Agreement, the Client shall not be obligated under this Agreement to provide any other support or assistance to the Developer.

 

TripBorn, Inc.

812 Venus Atlantis Corporate Park, Near Prahalad Nagar Garden, Satellite

Ahmedabad 380015

 

2

 

 

SOFTWARE DEVELOPMENT AGREEMENT

 

		4.	The Client may terminate this Software Development Agreement at any time upon material breach of the terms herein and failure to cure such a breach within SIXTY DAYS of notification of such a breach.

		5.	The Developer shall provide to the Client after the Delivery Date, a cumulative THIRTY DAYS of training with respect to the operation of the Software if requested by the Client.

2. DELIVERY

The Software shall function in accordance with the Specifications on or before the Delivery Date.

		1.	If the Software as delivered does not conform to the Specifications, the Client shall within SIXTY DAYS of the Delivery Date notify the Developer in writing of the ways in which it does not conform with the Specifications. The Developer agrees that upon receiving such notice, it shall make reasonable efforts to correct any non-conformity.

		2.	The Client shall provide to the Developer written notice of its finding that the Software conforms to the Specifications within SIXTY DAYS  of the Delivery Date (the “Acceptance Date”) unless it finds that the Software does not conform to the Specifications as described in Section 1(A) herein.

3. COMPENSATION

In consideration for the Service, the Client shall pay the Company a total fee for all work under this Software Development Agreement of $695,000.00 USD payable to the Developer on the Delivery Date in the form of a convertible promissory note in the form attached hereto as Exhibit C, provided that all Milestones set forth in Exhibit B have been completed to the satisfaction of the Client.

4. INTELLECTUAL PROPERTY RIGHTS IN THE SOFTWARE 

The Parties acknowledge and agree that the Client will hold and own all right, title, and interest in and to any intellectual property embodied in the Software including, but not limited to, inventions, developments, discoveries, improvements, copyrights and trademarks. The Developer hereby assigns and agrees to assign all right, title, and interest in and to any such intellectual property.  The Developer agrees not to claim any such ownership in the Software’s intellectual property at any time prior to or after the completion and delivery of the Software to the Client.

 

TripBorn, Inc.

812 Venus Atlantis Corporate Park, Near Prahalad Nagar Garden, Satellite

Ahmedabad 380015

 

3

 

 

SOFTWARE DEVELOPMENT AGREEMENT

 

5. CHANGE IN SPECIFICATIONS

The Client may request that reasonable changes be made to the Specifications and tasks associated with the implementation of the Specifications. If the Client requests such a change, the Developer will use its best efforts to implement the requested change at no additional expense to the Client and without delaying delivery of the Software. In the event that the proposed change will, in the sole discretion of the Developer, require a delay in the delivery of the Software or would result in additional expense to the Client, then the Client and the Developer shall confer and the Client may either withdraw the proposed change or require the Developer to deliver the Software with the proposed change and subject to the delay and/or additional expense. The Client agrees and acknowledges that the judgment as to if there will be any delay or additional expense shall be made solely by the Developer.

6. CONFIDENTIALITY

The Developer shall not disclose to any third party the business of the Client, details regarding the Software, including, without limitation any information regarding the Software’s code, the Specifications, or the Client’s business (the “Confidential Information”), (ii) make copies of any Confidential Information or any content based on the concepts contained within the Confidential Information for personal use or for distribution unless requested to do so by the Client, or (iii) use Confidential Information other than solely for the benefit of the Client.

7. DEVELOPER WARRANTIES

The Developer represents and warrants to the Client the following:

		1.	Development and delivery of the Software under this Agreement are not in violation of any other agreement that the Developer has with another party.

		2.	The Software will not violate the intellectual property rights of any other party.

		3.	For a period of TWO YEARS after the Delivery Date, the Software shall operate according to the Specifications. If the Software malfunctions or in any way does not operate according to the Specifications within that time, then the Developer shall take any reasonably necessary steps to fix the issue and ensure the Software operates according to the Specifications.

 

TripBorn, Inc.

812 Venus Atlantis Corporate Park, Near Prahalad Nagar Garden, Satellite

Ahmedabad 380015

 

4

 

 

SOFTWARE DEVELOPMENT AGREEMENT

 

8. INDEMNIFICATION

The Developer agrees to indemnify, defend, and protect the Client from and against all lawsuits and costs of every kind pertaining to the software including reasonable legal fees due to the Developer’s infringement of the intellectual rights of any third party.

9. NO MODIFICATION UNLESS IN WRITING

No modification of this Agreement shall be valid unless in writing and agreed upon by both Parties.

10. APPLICABLE LAW

This Software Development Agreement and the interpretation of its terms shall be governed by and construed in accordance with the laws of the State of DELAWARE, USA and subject to the exclusive jurisdiction of the federal and state courts located in DELAWARE, USA.

IN WITNESS WHEREOF, each of the Parties has executed this Software Development Agreement, both Parties by its duly authorized officer, as of the day and year set forth below.

	
TAKNIKI COMMUNICATION (INDIA) PRIVATE LIMITED

	 
	
/s/ Sachin Mandloi

	 	
September 23, 2016

	 
	 	 	 	 
	
SACHIN MANDLOI

CEO

	 	 	 
	 	 	 	 
	
TRIPBORN, INC.

	 
	
/s/ Deepak Sharma

	 	
September 23, 2016

	 
	 	 	 	 
	
DEEPAK SHARMA

PRESIDENT AND CHIEF EXECUTIVE OFFICER

	 

 

TripBorn, Inc.

812 Venus Atlantis Corporate Park, Near Prahalad Nagar Garden, Satellite

Ahmedabad 380015

 

5

 

 

SOFTWARE DEVELOPMENT AGREEMENT

 

EXHIBIT A – Travelcord Functionality

The business functionality or requirements that are included in this exhibit relate to additional or improved version of the functionality that was delivered to TRIPBORN, INC. under the agreement dated 26th January 2015 for the Travelcord - Web-based Online Transaction System (www.tripborn.com). The new functionality for the Travelcord - Web-based Online Transaction System must meet following business requirements and use cases:

		·	Enable transactional data points access or data repository for data analytics

		·	Enhanced data analytics capabilities for customer engagement, transactions and customer trends, including sensor data to enable customer engagement outside of tripborn.com

		·	Deploy data sensors to collect data points for rail transactions for data analytics and feed

		·	Automated accounting and reconciliations system to conform revenue recognition under generally accepted accounting principles in the United States laws pertaining to Accounting Standards Codification 605-45-45

		·	Enhanced reporting capability within accounting management to support GST (Goods and Service Tax) changes according to a new law that has been passed by the Indian Parliamentwith respect to the collection of statutory data (Service Tax, TDS etc.) and automatic transfer of data load into accounting system with reconciliation of supplier data.

		·	Enhance search functionality to White Label partners and Corporates to source lowest airfares from airlines across the globe in addition to low cost airlines on single platform or window that includes the ability to choose the supplier and set up the master data for their agents or network partners for sourcing

		·	Enable Tripborn.com for SOTO/SITO/SOTI/SITI supplier’s inventories to transact and aggregate on single platform which enables most economical sourcing to reduce the time required for searching competitive airfares

		·	Ticketing capability with respect to the Railway and airlines across the globe through multiple devices and browsers. Railway digital certificate plug and play functionality to support available internet browsers.

		·	Integration with Galileo Universal API for international ticketing and low cost carriers that are available through GDS, ensuring that all special service requests (SSR) are implemented for the same (i.e. infant tickets, wheel chairs, changes, etc.)

		·	Option to block PNR on time, and online booking of those tickets, backend functionality to queue the tickets to various suppliers

		·	Implement the Online Payment Gateway functionality for agents and distributors

		·	Enable ease of payment through multiple online payment modes for booking such as NEFT, RTGS, credit cards, and debit cards, including add on for future digital wallets and cards

		·	Auto processing of cancellation or refund for rail transactions

 

TripBorn, Inc.

812 Venus Atlantis Corporate Park, Near Prahalad Nagar Garden, Satellite

Ahmedabad 380015

 

6

 

 

SOFTWARE DEVELOPMENT AGREEMENT

 

		·	Enhanced customized branding and/or printing on e-tickets

		·	Customized markups facility for buses and airline products

		·	Enhance or provide tool to capture hotel and holiday package offline bookings on single platform

		·	MIS reports for customer trending, dashboards and key figure matrix

		·	Enable Tripborn.com to provide API/XML feed to third party for the sale of tickets inventories

		·	Enhance response time of ticket search and deploy the multi-city search functionality

 

TripBorn, Inc.

812 Venus Atlantis Corporate Park, Near Prahalad Nagar Garden, Satellite

Ahmedabad 380015

 

7

 

 

SOFTWARE DEVELOPMENT AGREEMENT

 

EXHIBIT B

Milestone Schedule

	
Deliver Date

	
Milestone

 

	
April 01,2016 to

July 31, 2016

	
·          Statutory and Compliance Requirement:

o      Automated accounting and reconciliations system to conform revenue recognition under generally accepted accounting principles in the United States laws pertaining to Accounting Standards Codification 605-45-45

o      Enhanced reporting capability within accounting management to support GST (Goods and Service Tax) changes according to a new law that has been passed by the Indian Parliament, with respect to the collection of statutory data (Service Tax, TDS etc.) and automatic transfer of data load into accounting system with reconciliation of supplier data

 

	
April 01, 2016 to

June 30, 2016

	
·          New Functionality – International Ticketing with GDS (Galileo)

o      Integration with Galileo Universal API for international ticketing and low cost carriers that are available through GDS, ensuring that all special service requests (SSR) are implemented for the same (i.e. infant tickets, wheel chairs, changes, etc.)

o      Option to block PNR on time, and online booking of those tickets, backend functionality to queue the tickets to various suppliers

 

TripBorn, Inc.

812 Venus Atlantis Corporate Park, Near Prahalad Nagar Garden, Satellite

Ahmedabad 380015

 

8

 

 

SOFTWARE DEVELOPMENT AGREEMENT

 

	
April 01, 2016 to

September 30, 

2016

	
·      Improvement or efficiency requirement for booking engine that includes

o      Auto processing of cancellation or refund for Rail transactions

o      Enhanced customized branding and/or printing on e-tickets

o      Customized markups facility for buses and airline products

o      Enhance or provide tool to capture hotel and holiday package offline bookings on single platform

o      Enhance search functionality to White Label partners and Corporates to source lowest airfares from airlines across the globe in addition to low cost airlines on single platform or window that includes the ability to choose the supplier and set up the master data for their agents or network partners for sourcing

o     Customized markups facility for buses and airline products

o     MIS reports for customer trending, dashboards and key figure matrix

o     Enable Tripborn.com to provide API/XML feed to third party for the sale of tickets inventories

o     Enhance response time of ticket search and deploy the multi-city search functionality

o     Enhanced features for credit management (deposit/transfers) for the distributors and agents

 

	
June 01, 2016 to 

August 31, 2016

	
·      New Functionality of Payment Gateway:

o     Enable ease of payment through multiple online payment modes for booking such as NEFT, RTGS, credit cards, and debit cards

o     Add on Available for the Digital Wallet and cards

 

	
September 30, 

2016

 

	
·      System documentation as per software development life cycle documentation and deliverables

	
October 01, 2016 to 

December 31, 2016

	
·      Detailed system hand-over and training to SUNALPHA GREEN TECHNOLOGIES PRIVATE LIMITED technology team including configuration, modification, enhancement and documentation

 

	
December 31, 2016

	
·      Final changes to GST functionality based on the recommendation of committee and new draft policy by implementation committee, if any for Goods and Service Tax) changes according to new law that has been passed by the Indian Parliament which includes collection of statutory data.

 

TripBorn, Inc.

812 Venus Atlantis Corporate Park, Near Prahalad Nagar Garden, Satellite

Ahmedabad 380015

 

9

 

 

SOFTWARE DEVELOPMENT AGREEMENT

 

	
June 01, 2016 to 

November 30, 2016

	
·      Data Analytics Capability:

o     Data analytics dashboard with Railway public data to enable transactional data points access or data repository for data analytics

o     Enhanced data analytics capabilities of customer engagement, transactions and customer trends

o     Deploy data sensors to collect data points for Rail transactions for data analytics and feed

 

 

TripBorn, Inc.

812 Venus Atlantis Corporate Park, Near Prahalad Nagar Garden, Satellite

Ahmedabad 380015

 

10

 

 

SOFTWARE DEVELOPMENT AGREEMENT

 

EXHIBIT C

Form of Convertible Note

 

 

11

 

 

THIS CONVERTIBLE PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  NO SALE OR DISPOSITION MAY BE EFFECTED EXCEPT IN COMPLIANCE WITH RULE 144 UNDER SAID ACT OR AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL FOR THE INVESTOR SATISFACTORY TO THE COMPANY  THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION.

CONVERTIBLE PROMISSORY NOTE

	
$695,000

	
December 31, 2016

For value received TripBorn, Inc., a Delaware corporation (the “Company”), promises to pay to Tankniki Communications (India) Private Limited or its registered assigns (“Investor”) the principal sum of $695,000 together with accrued and unpaid interest thereon, each due and payable on the date and in the manner set forth below.

1.            Repayment.  All payments of interest and principal shall be in lawful money of the United States of America and shall be applied first to accrued interest, and thereafter to principal.  The outstanding principal amount of this Note shall be due and payable on December 31, 2019 (the “Maturity Date”).

2.            Interest Rate.  The Company promises to pay simple interest on the outstanding principal amount hereof from the date hereof until payment in full.  Interest shall accrue at a rate of 10% per annum (or, if less, the maximum rate permissible by law), compounded annually and shall accrue daily beginning on the date of issuance of this note (this “Note”).  Interest shall be due and payable on the Maturity Date and shall be calculated on the basis of a 365-day year for the actual number of days elapsed.

3.            Automatic Conversion; Conversion on Sale of the Company.

(a)          In the event that the Company issues and sells shares of its Common Stock to investors on or before the date of the repayment in full of this Note in connection with an underwritten public offering under the Securities Act in conjunction with a listing on a national securities exchange (including the conversion of the Note and other debt) (an “Uplist Transaction”), then the outstanding principal balance of this Note shall automatically convert in whole, without any further action by the Investor, into 10,303,070 shares of Common Stock (the “Note Shares”).  Any unpaid accrued interest on this Note shall be payable in cash upon the consummation of the Uplist Transaction.

(b)          In the event that an Uplist Transaction is not consummated prior to the Maturity Date, then, the Investor shall elect (by written notice within five (5) days prior to the Maturity Date), that the outstanding principal balance on this Note (i) shall become fully due and payable effective on the Maturity Date or (ii) shall convert into the Note Shares.  Any unpaid accrued interest on this Note at the Maturity Date shall be payable in cash on the Maturity Date.

 

 

 

 

(c)          In the event that the Company anticipates a Sale of the Company prior to the Maturity Date, the Company will give the Investor at least twenty (20) days prior written notice of the closing date of such Sale of the Company.  In such event, the Investor shall elect (by written notice at least five (5) days prior to the closing date of the Sale of the Company) that, effective immediately prior to the closing of such Sale of the Company, the entire outstanding principal balance on this Note (i) shall become fully due and payable effective immediately prior to the Sale of the Company or (ii) shall convert into the Note Shares.  Any unpaid accrued interest on this Note shall be payable in cash effective immediately prior to the Sale of the Company.

4.            Definitions.  As used in this Note, the following capitalized terms have the following meanings:

(i)          “Common Stock” shall mean the Company’s common stock, par value $0.0001 per share.

(ii)         “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

(iii)        “Investor” shall mean the Person specified in the introductory paragraph of this Note or any Person who shall at the time be the registered holder of this Note.

(iv)        “Sale of the Company” shall mean (i) any consolidation or merger of the Company with or into any other corporation or other entity or person, or any other corporate reorganization, other than any such consolidation, merger or reorganization in which the stockholders of the Company immediately prior to such consolidation, merger or reorganization, continue to hold at least a majority of the voting power of the surviving entity in substantially the same proportions (or, if the surviving entity is a wholly owned subsidiary, its parent) immediately after such consolidation, merger or reorganization; (ii) any transaction or series of related transactions to which the Company is a party in which in excess of 50% of the Company’s voting power is transferred; provided, however, that a Sale of the Company shall not include any transaction or series of transactions principally for bona fide equity financing purposes in which cash is received by the Company or any successor or indebtedness of the Company is cancelled or converted or a combination thereof; or (iii) a sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company.

(v)         “Securities Act” shall mean the Securities Act of 1933, as amended.

5.            Expenses. In the event of any default hereunder, the Company shall pay all reasonable attorneys’ fees and court costs incurred by Investor in enforcing and collecting this Note.

6.            Prepayment.  The Company may not prepay this Note prior to the Maturity Date without the consent of the Investor.

 

 

2

 

 

7.            Default.  The occurrence of any one or more of the following shall constitute an “Event of Default”:

(a)          The Company fails to pay timely any of the principal amount due under this Note on the date the same becomes due and payable or any accrued interest or other amounts due under this Note on the date the same becomes due and payable;

(b)          The Company fails to deliver the Note Shares within fifteen (15) days after the applicable date that the outstanding principal balance on this Note converts into the Note Shares;

(c)          The Company shall default in its performance of any covenant under this Note;

(d)          The Company files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other law for the relief of, or relating to, debtors, now or hereafter in effect, or makes any assignment for the benefit of creditors or takes any corporate action in furtherance of any of the foregoing; or

(e)          An involuntary petition is filed against the Company (unless such petition is dismissed or discharged within 60 days under any bankruptcy statute now or hereafter in effect, or a custodian, receiver, trustee, assignee for the benefit of creditors (or other similar official) is appointed to take possession, custody or control of any property of the Company).

If there shall be any Event of Default pursuant to Section 7(a) (b) or (c), at the option and upon the declaration of the Investor and upon written notice to the Company, this Note shall accelerate and all principal and unpaid accrued interest on this Note shall become immediately due and payable.   If there shall be any Event of Default pursuant to Section 7(a) (b) or (c), this Note shall automatically accelerate and all principal and unpaid accrued interest on this Note shall become immediately due and payable without any further action by the Investor.

8.            Assignment.

(a)          Successors and Assigns; Transfer of this Note or Securities Issuable on Conversion Hereof.

(i)          Subject to the restrictions on transfer described in this Section 8, the rights and obligations of the Company and Investor shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.

 

 

3

 

 

(ii)          With respect to any offer, sale or other disposition of this Note or securities into which such Note may be converted, Investor will give written notice to the Company prior thereto, describing briefly the manner thereof, together with a written opinion of Investor’s counsel, or other evidence if reasonably satisfactory to the Company, to the effect that such offer, sale or other distribution may be effected without registration or qualification under any federal or state law then in effect. Upon receiving such written notice and reasonably satisfactory opinion, if so requested, or other evidence, the Company, as promptly as practicable, shall notify Investor that Investor may sell or otherwise dispose of this Note or such securities, all in accordance with the terms of the notice delivered to the Company.  If a determination has been made pursuant to this Section 8 that the opinion of counsel for Investor, or other evidence, is not reasonably satisfactory to the Company, the Company shall so notify Investor promptly after such determination has been made.  The Note thus transferred and each certificate representing the securities thus transferred shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with the Securities Act, unless in the opinion of counsel for the Company such legend is not required in order to ensure compliance with the Securities Act.  The Company may issue stop transfer instructions to its transfer agent in connection with such restrictions.  Subject to the foregoing, transfers of this Note shall be registered upon registration books maintained for such purpose by or on behalf of the Company.  Prior to presentation of this Note for registration of transfer, the Company shall treat the registered investor hereof as the owner and investor of this Note for the purpose of receiving all payments of principal and interest hereon and for all other purposes whatsoever, whether or not this Note shall be overdue and the Company shall not be affected by notice to the contrary.

(iii)           Neither this Note nor any of the rights, interests or obligations hereunder may be assigned, by operation of law or otherwise, in whole or in part, by the Company without the prior written consent of the Investor.

9.            Modification; Waiver.  Any provision of this Note may be amended, waived or modified only upon the written consent of the Company and the Investor.

10.          Notices.  All notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall be in writing and faxed, mailed, emailed or delivered to each party at the Company’s address, email address or facsimile number set forth on the signature page to this Agreement, or at such other address or facsimile number as the Company shall have furnished to Investor in writing.  All such notices and communications will be deemed effectively given the earlier of (i) when received, (ii) when delivered personally, (iii) one business day after being delivered by email or facsimile, or (v) five days after being deposited in the U.S. mail, first class with postage prepaid.

11.          Payment.  Unless converted into the Company’s equity securities pursuant to the terms hereof, payment shall be made in lawful tender of the United States.

12.          Usury. In the event any interest is paid on this Note which is deemed to be in excess of the then legal maximum rate, then that portion of the interest payment representing an amount in excess of the then legal maximum rate shall be deemed a payment of principal and applied against the principal of this Note.

 

 

4

 

 

13.          Waivers.  The Company hereby waives notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor and all other notices or demands relative to this instrument.

14.          Waiver of Jury Trial; Judicial Reference.  BY ACCEPTANCE OF THIS NOTE, INVESTOR HEREBY AGREES AND THE COMPANY HEREBY AGREES TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS NOTE OR ANY OF THE TRANSACTION DOCUMENTS.

15.          Counterparts. This Note may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same agreement. Facsimile or electronic copies (in .PDF or other similar electronic format) of signed signature pages will be deemed binding originals.

16.          Governing Law.  This Note shall be governed by and construed under the laws of the State of New York, without giving effect to conflicts of laws principles.

[signature page follows]

 

 

5

 

 

The Company has caused this Note to be issued as of the date first written above.

	 	
TripBorn, Inc.

a Delaware corporation

	 	 	 
	 	
By:

	 
	 	
Name:  

	 
	 	
Title

	 
	 	 	 
	 	 	 
	 	 	 
	 	 	
Address:

812, Venus Atlantis Corporate Park, Nr. 

Prahalad Nagar Garden, Satellite City, 

Ahmedabad

 

 

[SIGNATURE PAGE TO CONVERTIBLE PROMISSORY NOTE]

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