Document:

ex10_24.htm

  
    Exhibit
10.24

     

    AMENDMENT
NO. 2 TO THE

    1st
CONSTITUTION BANCORP

    SUPPLEMENTAL
EXECUTIVE RETIREMENT PLAN

    

    WHEREAS,
1ST
Constitution Bancorp (the “Bancorp”) adopted the 1st
Constitution Bancorp Supplemental Executive Retirement Plan (the “SERP”),
effective October 1, 2002, for the benefit of certain key executives of the
Bancorp and 1st
Constitution Bank (the “Bank,” and together with the Bancorp, the “Company”);
and

     

    WHEREAS,
Section 9.2 of the SERP authorizes the Board of Directors of the Bancorp (the
“Board”) to, in its sole discretion, amend the SERP at any time in whole or in
part; and

     

    WHEREAS,
in light of certain changes to the Internal Revenue Code of 1986, as amended,
the Board has determined that it is in the best interest of the Company and the
Plan participants to amend the Plan effective as of December 31, 2004, so that
the terms of the Plan will apply only to those benefits that have accrued and
become vested thereunder as of such date, with future accruals (if any) and
vesting of benefits accrued but unvested as of December 31, 2004 to be
controlled by the terms of a new plan, known as the 1st
Constitution Bancorp 2005 Supplemental Executive Retirement Plan (the “New
Plan”);

     

    NOW,
THEREFORE, be it

     

    RESOLVED,
that the Board hereby adopts the following amendment to the SERP, effective as
of December 31, 2004:

     

    1.           The
following is added to the end of Article I of the SERP:

     

    “Notwithstanding
anything else herein to the contrary, effective as of December 31, 2004, no new
Members will be added to the Plan, no further SERP Benefits will accrue
hereunder, and all unvested SERP Benefit liabilities will be transferred to (and
assumed by) the 1st
Constitution Bancorp 2005 Supplemental Executive Retirement Plan.  All
SERP Benefits remaining under this Plan will be treated as grandfathered
benefits for purposes of Section 409A of the Internal Revenue Code, and the Plan
will be so administered.  The Plan will not be amended in any manner
that would be treated as a material modification for purposes of Section
409A.  Accordingly, the Plan will be administered in accordance with
its terms, and Section 409A will not apply thereto.”EXHIBIT 10.5

 

EXHIBIT 10.5

ACQUISITION
AGREEMENT 

ASSET PURCHASE AGREEMENT

 

THIS ASSET PURCHASE AGREEMENT (the "Agreement") is dated for reference
the ___ day of _____2008, between TYPHOON TOUCH TECHNOLOGIES, INC. ("Typhoon"),
and JAMES SHEPARD (the "Mr. Shepard").

RECITALS

WHEREAS:

A. Typhoon is engaged in the business of creating, developing, acquiring and
licensing touch-screen technology. The company's Concept Lab develops and tests
products that incorporate innovative applications of touch technology and
Typhoon Tunes is a service under development that will offer a unique method of
promoting music.

B. Mr. Shepard desires to purchase from Typhoon, and Typhoon desires to sell
to Mr. Shepard, upon the terms and conditions specified herein, all of the
Purchased Assets, as defined in Article I, of such business.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing recitals, and in
consideration of the promises, covenants, terms and conditions specified herein,
the parties hereto agree as follows:

 

ARTICLE I. DEFINITIONS.

For all purposes of this Agreement, the following defined terms shall have
the meanings set forth in this Article I:

1.1 "Accounts Receivable" means all of the monies owed to Typhoon by
its customers of the Business, including by way of example, but not limitation,
current receivables, delinquent receivables and finance charges.

1.2 "Business" means the Typhoon Tunes music business conducted
by Typhoon prior to the Closing Date and by Mr. Shepard after the Closing Date
and includes promotion and , marketing, of music and sales of advertising using
kiosks and through its software application that works through the Internet.

1.3 "Closing" means the actions taken as provided in Article VI in
connection with the consummation of the transactions contemplated by this
Agreement.

1.4 "Closing Date" means the time and date when the Closing of the
transactions contemplated by this Agreement shall be deemed effective, which
shall be 12:01 a.m. on the day of the Closing.

1.5 "Code" means the Internal Revenue Code of 1986, as amended. 

1.6 "Contracts" means all written or oral contracts, agreements,
commitments and orders, purchase orders (including but not limited to Customer
Contracts), and license agreements of the Business, but does not include any
leases, contracts, agreements or arrangement for or in regard to real estate,
equipment or leased employees. Contracts also include all of Typhoon's rights
under any non-competition/restrictive covenant agreements with employees or
former employees.

1.7 "Customer Contracts" means all or oral written contracts,
agreements, commitments and orders from customers of the Business.

1.8 "Encumbrance" means with respect to the Business or any Purchased
Asset, any mortgage, pledge, security interest, lien, claim, charge,
encumbrance, option, lease, restriction or restraint on transfer.

1.9 "ERISA" means the Employee Retirement Income Security Act of
1974, as amended.

1.10 "Excluded Assets" means the assets of Typhoon which are not
Purchased Assets. The "Excluded Assets" include, without limitation: (i)
Typhoon's books and records, other than the Records, (ii) the patents and
business assets associated with creating, developing, acquiring and licensing
touch-screen technology, and (iii) Typhoon's contracts, other than the contracts
included in the Purchased Assets.

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1.11 "Knowledge" means actual knowledge or knowledge that could be
expected to be obtained after a reasonable investigation.

1.12 "Lease" means (i) any lease, sublease or rental agreement by
which Typhoon leases any tangible property which is used in the Business, or
(ii) any lease or rental agreement by which Typhoon leases or rents any of the
Purchased Assets.

1.13 "Litigation" means claims, suits, actions, investigations,
proceedings or written claims or demands related to the Business.

1.14 "Material Adverse Effect" means a materially adverse effect on
the Business, Purchased Assets, operations, prospects or condition, financial or
otherwise, of Typhoon taken as a whole, or an effect which could reasonably
foreseeably impair (i) the ability of Typhoon to perform any obligation under
this Agreement or (ii) the value of such to Mr. Shepard.

1.15 "Name" means Typhoon Tunes. 

1.16 "Permits" means licenses, qualifications, permits, approvals,
franchises and authorizations (federal, state and local) issued to Typhoon by
any governmental agency or individual with respect to the Business.

1.17 "Purchase Price" means the sum of 36,000,000 shares of common
stock of Typhoon to be returned for cancellation by Mr. Shepard and related
parties as full consideration for the Business and Purchased Assets plus the
amount to be paid pursuant to Sections 2.3.

1.18 "Purchased Assets" means only the following assets of Typhoon
used in the Business as of the Closing Date:

	The wholesale inventory which consists of all of our inventory of goods,
 merchandise and supplies expect as may be related to the Business;
	Furniture, and fixtures related to the Business;
	Kiosk plans, proto-types and equipment;
	Software developed for the Business;
	The website: typhoonmusic.net;
	All Accounts Receivable;
	The Name and all tradenames and trademarks "Typhoon Tunes";
	All right, title and interest in and to all all rights, title and interest
 in and to all contracts related to the assets being acquired;
	All permits;
	All books and records related to the assets acquired including customer
 lists and purchasing and sales records; 
	All other assets associated with the Business; 
	Assumption of the leased premises located at 1700 Seventh Ave., Suite 2100,
 Seattle, WA 98101; and
	All goodwill relating to the Business.

1.19 "Records" means the customer lists and purchasing and sales
records, product records and other similar information with respect to the
Business.

1.20 "SEC" means the United States Securities and Exchange Commission.

1.21 "Shareholder Vote" means the affirmative vote of the shareholders
of Typhoon approving this Agreement at the meeting (or any adjustments thereof)
referred to in Section 8.1.

1.22 "Taxes" means corporate taxes, franchise taxes, sales taxes, use
taxes, real property taxes, personal property taxes, state business taxes,
federal, state and local income taxes, FICA taxes and FUTA taxes, other payroll
taxes and all related assessments, charges, duties, deficiencies, penalties,
interest and fines for which Typhoon is liable.

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1.23 "Wholesale Inventory" means all of Typhoon's inventory of goods,
wares, merchandise and supplies used or intended for use in connection with the
Business.

ARTICLE II. PURCHASE AND SALE.

2.1 Purchase and Sale. As of the Closing Date, upon the terms, subject
to the conditions, and for the consideration hereinafter set forth, Typhoon
shall sell, convey, assign, transfer and deliver all of the Purchased Assets to
Mr. Shepard.

2.2 Allocation of Purchase Price. The purchase price shall be
allocated as set forth in Schedule 2.2. The parties hereto covenant and agree
with each other that this allocation was arrived at by arm's length negotiation
and that none of them will take a position on any income tax return, before any
governmental agency charged with the collection of any income tax or in any
judicial proceeding that is in any manner inconsistent with the terms of this
Section 2.2 without the written consent of the other parties to this Agreement.

2.3 Payment of Purchase Price. Mr. Shepard shall pay Typhoon the
Purchase Price as follows:

(a) The assumption of all debts, liabilities, loans, lines of credit,
  leases and other obligations outstanding by Typhoon as of the Closing.

  (b) The delivery of 36,000,000 shares of common stock of Typhoon with fully
  executed power of attorney's attached to Typhoon for return to treasury.

 

2.4 Accounts Receivable & Accounts Payable. Mr. Shepard shall
obligated and entitled to all accounts receivable and be liable for all accounts
payable directly related to the Business.

2.5 Assumption of Liabilities. Mr. Shepard has agreed, and does agree,
to assume any liabilities, debts or obligations of Typhoon whether with respect
to the Business, Purchased Assets or otherwise as it relates to the Business.
Except as otherwise expressly set forth in this Agreement, Mr. Shepard shall be
responsible for all expenses, costs, liabilities, claims, debts, obligations,
contracts, suits and actions arising out of or pertaining to the Business and
Purchased Assets prior to the Closing Date.

2.6 No Sale of Excluded Assets. Typhoon does not hereby sell, convey,
assign or transfer to Mr. Shepard any of the Excluded Assets.

ARTICLE III. REPRESENTATIONS AND WARRANTIES OF TYPHOON.

Typhoon represents and warrants to Mr. Shepard as of the date of this
Agreement and as of the Closing Date the following:

3.1 Power and Authority.

(a) Typhoon is a corporation duly organized, validly existing and in good
  standing under the laws of the State of Nevada and has full power and
  authority to carry on the Business as it is presently conducted, and to own
  the Purchased Assets.

  (b) The Board of Directors of Typhoon has duly authorized (by affirmative
  vote of (i) a majority of its entire number of directors, and (ii) a majority
  of its disinterested directors), and Typhoon has taken all necessary action
  (subject to obtaining the Shareholder Vote, which shall have been obtained
  prior to the Closing) to authorize, the execution, delivery and performance of
  this Agreement by Typhoon and the consummation of the transactions
  contemplated by this Agreement by Typhoon. A certificate by the Secretary of
  Typhoon certifying the actions by the Board of Directors and the Shareholder
  Vote approving this Agreement and the consummation of the transactions
  contemplated by this Agreement shall be delivered at the Closing.

 

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3.2 Execution and Delivery. The execution, delivery and performance of
this Agreement by Typhoon, and the consummation of the transactions contemplated
by this Agreement, will not:

(a) violate, result in a breach of any of the terms or conditions of, or
  constitute a default under, the Articles of Incorporation or By-Laws or
  similar documents of Typhoon, or under any contract, agreement, commitment,
  undertaking, understanding, note, bond, license or other instrument or
  obligation to which Typhoon is a party, or by which any of the Purchased
  Assets may be bound or affected, or which would adversely affect the value of
  the Business and the Purchased Assets or the ability of Typhoon to transfer
  good title to and possession of the Purchased Assets to Mr. Shepard; or 

  (b) violate or conflict with any applicable law, judgment, order, writ,
  injunction or decree of any court, administrative agency or governmental body
  applicable to Typhoon.

 

3.3 Capacity and Authority. Typhoon has full capacity, power and
authority (subject to the Shareholder Vote) to enter into this Agreement, and to
carry out the transactions contemplated by this Agreement. The obligations of
Typhoon set forth in this Agreement are legal, valid and binding obligations of
Typhoon enforceable in accordance with their terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditor's rights generally and except that such enforceability is subject to
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

3.4 Title to and Condition of Properties.

  (a) Except as set forth in Schedule 3.4, Typhoon has good, valid and
  marketable title to all of the Purchased Assets, free and clear of all
  Encumbrances. At the Closing Typhoon shall transfer to Mr. Shepard good, valid
  and marketable title to the Purchased Assets, free and clear of Encumbrances
  (other than the security interest of any line of credit or lease, for which
  Mr. Shepard shall obtain the release of Typhoon from such bank line of credit
  or lease on Closing), and take all actions necessary, in the reasonable
  opinion of Mr. Shepard, to ensure full compliance with this representation and
  warranty.

  (b) The Wholesale Inventory is accurately valued on Typhoon's financial
  statements at the lower of cost or market, the cost thereof being determined
  on a first-in first-out basis. The Wholesale Inventory is delivered on an as
  is where is basis and no representation as to quality or suitability is
  represented.

 

3.5 Taxes. With respect to the Business:

(a) Typhoon has filed all tax returns that it was required to file, and all
  such tax returns were true, correct and complete in all material respects.

  (b) All deficiencies asserted as a result of any examination of any tax
  return have been paid in full, accrued on the books of Typhoon or finally
  settled, and no issue has been raised in any such examination which, by

  application of the same or similar principles, reasonably could be expected
  to result in a proposed deficiency; no tax claims have been or are being
  asserted or proposed, and to Typhoon's or Shareholders' Knowledge no proposals
  or deficiencies for any Taxes are being threatened, and no audit or
  investigation of any tax return is currently underway, pending or threatened;
  Typhoon has not entered into any waivers or agreements for the extension of
  time for the assessment of any Taxes or deficiencies thereof, nor are there
  any requests for rulings, nor are there any outstanding subpoenas or requests
  for information, notices of proposed reassessment of any property owned or
  leased by Typhoon or any other matter pending between Typhoon and any taxing
  authority.

  (c) Typhoon shall pay, and shall be solely responsible for, all Taxes
  (foreign, federal, state and local) which have accrued or will accrue by
  virtue of the consummation of this transaction including by way of example but
  not limited to any transfer, sales or use tax; no lien for Taxes has attached
  or will attach to any of the Purchased Assets by reason of the consummation of
  this transaction or by reason of any activity of Typhoon either prior to or
  after the Closing Date.

 

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3.6 Material Events.

(a) Since December 31, 2002, with respect to the Business there has not
  been any occurrence, event, change in business, financial or accounting
  practices, damage, destruction or loss, or any other condition or event which
  has or would have a Material Adverse Effect.

  (b) Typhoon has not since December 31, 2002, with respect to the Business:

  (i) mortgaged, pledged or subjected to lien or other encumbrance any of
   the Purchased Assets that will not be satisfied at the Closing;

   (ii) other than in the ordinary course of business, sold or transferred
   any of the Purchased Assets or cancelled any debt or claims; or

   (iii) waived any rights of material value.

  
 

3.7 Compliance with Laws. Typhoon is in compliance with all applicable
laws, rules, regulations, ordinances and standards including, but not limited to
employment, environmental, age, sex or age discrimination, occupational safety
and health and hazardous substances with respect to the Business.

3.8 Permits. Set forth in Schedule 3.7 is a complete and accurate list
of all Permits held by or granted to Typhoon which are in effect as of the date
of this Agreement and which are necessary to the conduct of the Business.
Typhoon possesses all Permits applicable to Typhoon which are necessary for the
conduct of the Business or the operation of the Purchased Assets. All such
Permits are now, and as of the Closing Date will be, in full force and effect
without modification. All such Permits may be, and on the Closing Date will be,
effectively transferred or assigned to Mr. Shepard without the consent of any
government agency so as to allow Mr. Shepard to operate the Business and use the
Purchased Assets in substantially the same manner as such are currently being
operated and used by Typhoon except where such Permits are not assignable or
require Mr. Shepard's actions to remain in force. No violation of any such
Permit has been recorded and no proceeding which might result in revocation or
limitation thereof is pending or, to Typhoon's threatened.

3.9 Litigation. Except as disclosed in Schedule 3.8:

(a) there is no Litigation pending or, to Typhoon's Knowledge, threatened
  against, or affecting, the Purchased Assets or the Business, by any person or
  entity, including, but not limited to, any administrative agency, arbitrator
  or governmental body;

  (b) there is no outstanding order, writ, injunction or decree of any court,
  administrative agency, governmental body or arbitration tribunal against or
  affecting the Purchased Assets or the Business; and

  (c) to Typhoon's Knowledge, there is no existing fact, circumstance or
  condition which would reasonably be expected to give rise to any Litigation.

 

3.10 Contracts.

(a) Except as set forth in Schedule 3.9, and other than Contracts which are
  terminable upon 30 days notice by Typhoon, Typhoon is not a party with respect
  to the Business to any material agreement, loan, credit, lease, sublease,
  franchise, license, contract, commitment or instrument or subject to any
  corporate restriction (i) that has, or the performance or violation of which
  could reasonably be foreseen to have, a Material Adverse Effect; (ii) which
  has a term in excess of one year; or (iii) involves the payments or financial
  obligation of $5,000 or more. No contract, agreement, lease, commitment or
  order is necessary for Mr. Shepard to conduct the Business substantially as it
  is presently conducted. True and complete copies of all Contracts have been
  furnished to Mr. Shepard by Typhoon prior to the Closing.

  (b) Except as set forth in Schedule 3.9, each of the Contracts may be
  assigned to Mr. Shepard pursuant to this Agreement without any breach,
  default, acceleration or termination thereof, and all of the rights of Typhoon
  under the same shall upon assignment to Mr. Shepard pursuant to this Agreement
  be enforceable by Mr. Shepard after the Closing Date, without the consent or
  agreement of any other person, except such consents as are hereafter obtained
  by Typhoon without any adverse effect upon Mr. Shepard, the Purchased Assets,
  and/or the Business.

 

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(c) Typhoon is not in default under any Contract nor has Typhoon received
  any notice of default with respect to any Contract. There are no facts or
  conditions which have occurred which would (either with notice or lapse of
  time, or both) constitute a default with respect to any Contract by Typhoon,
  or which would cause the acceleration of any obligation of Typhoon to the
  same. To Typhoon's Knowledge, there are no facts or conditions which have
  occurred which would (either with notice or lapse of time, or both) constitute
  a default by a party (other than Typhoon) to a Contract, or cause the
  acceleration of any obligation of such other party to a Contract. All
  Contracts are legally valid and binding and are in full force and effect.

  (d) There are no persons holding powers of attorney from Typhoon with
  respect to the Business.

  (e) No Contract calls for the purchasing by Typhoon of any goods, products
  or services at prices substantially in excess of prevailing market prices on
  the Closing Date or the leasing or sale by Typhoon of any goods, products or
  services at prices substantially below prevailing market prices on the Closing
  Date.

 

3.11 Customers. Typhoon shall deliver a true and complete list of all
of Typhoon's customers of the Business as of the Closing Date. Such list shall
include the name and address of each customer and the amount of purchases of
each customer for the six-month period ending ten days prior to the Closing
Date. 

3.12 Compliance. Typhoon is not now and will not prior to Closing
become liable to the Pension Benefit Guaranty Corporation or any multi-employer
employee pension benefit plan under the provisions under Title IV of ERISA.

3.13 Product Liability. Typhoon has no liability (and to Typhoon's
Knowledge, there is no threatened future action, suit, proceeding, claim or
demand against Typhoon giving rise to any liability) arising out of any injury
to individuals or property as a result of the ownership, possession or use of
any goods or products sold by Typhoon in the Business. Typhoon has not received
any written notices, citations or decisions by any governmental body that any
goods or products marketed or distributed at any time by Typhoon in the Business
is defective or fails to meet any applicable standards promulgated by any such
governmental body. Typhoon has complied with all laws, rules, regulations and
specifications with respect to the design, manufacturing, labeling, testing and
inspection of goods or products promulgated by the all US laws and regulations
with respect to such goods or products. 

3.14 Brokerage and Finder's Fees. Typhoon has not incurred any
liability or obligation to any finder or agent for any brokerage fees, finder's
fees or commissions with respect to the transactions contemplated by this
Agreement.

3.15 Customers Accounts. Typhoon does not presently owe any customer
or customer account of the Business any sum of money or other consideration
whatsoever to secure or retain the patronage of such customer or customer
account.

3.16 Transfer of Name; No Infringement. Typhoon has the right to use
the Name and to transfer the right to use the Name to Mr. Shepard in accordance
with this Agreement free and clear of any Encumbrances. To Typhoon's Knowledge,
no one is infringing on Typhoon's use of the Name. Typhoon has not received any
notice that Typhoon in the operation of the Business is infringing or violating
any patent, trademark, trade name, service mark, copyright or other intellectual
property right of any third party and, to Typhoon's Knowledge, there is no basis
for any such claim.

3.17 Consents and Approvals. Except for the Shareholder Vote, no
consent, approval, waiver, authorization, registration or qualification is
required to be obtained by Typhoon from, and no notice or filing is required to
be given by Typhoon to or made by Typhoon with, any governmental authority or
other third-party in connection with the execution, delivery and performance by
Typhoon of the terms of this Agreement.

3.18 Full Disclosure. No representation or warranty of Typhoon
contained in this Agreement (including any Exhibit or Schedule attached hereto)
contains or will knowingly contain any untrue statement of a material fact, or
omits or will omit to state a material fact necessary to make the statements
contained in this Agreement not misleading. In purchasing the Purchased Assets,
Mr. Shepard is relying upon the truth and accuracy of each of the foregoing
representations and warranties, and as stated in this Article III, each of the
same constitutes a basic and bargained for consideration for such purchase by
Mr. Shepard.

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ARTICLE IV. 

REPRESENTATIONS AND WARRANTIES OF TYPOON VENTURES INC. AND MR. SHEPARD.

Mr. Shepard represents and warrants to Typhoon as of the date hereof and as
of the Closing Date, as follows:

4.1 Power and Authority. 

(a) Typhoon Ventures, Inc. is a corporation duly organized, validly
  existing and in good standing under the laws of the State of Nevada and has
  full power and authority to carry on the Business as it is presently
  conducted.

  (b) The Board of Directors of Typhoon Ventures, Inc. has duly authorized
  (by affirmative vote of (i) its sole director, and (ii) its sole shareholder),
  and Typhoon has taken all necessary to authorize, the execution, delivery and
  performance of this Agreement by Typhoon Ventures, Inc. and the consummation
  of the transactions contemplated by this Agreement by Typhoon Ventures, Inc. A
  certificate by the Secretary of Typhoon Ventures, Inc. certifying the actions
  by the Board of Directors and the Shareholder Vote approving this Agreement
  and the consummation of the transactions contemplated by this Agreement shall
  be delivered at the Closing.

 

4.2 Capacity and Authority. Typhoon Ventures, Inc. and Mr. Shepard
have full capacity, power and authority to enter into this Agreement, and to
carry out the transactions contemplated by this Agreement. Typhoon Ventures,
Inc. and Mr. Shepard have taken all necessary action to authorize the execution
and delivery of this Agreement and the consummation of the transactions
contemplated by this Agreement. The obligations of Typhoon Ventures, Inc. and
Mr. Shepard set forth in this Agreement are legal, valid and binding obligations
of Typhoon Ventures, Inc. and Mr. Shepard, enforceable in accordance with their
terms.

4.3 Execution and Delivery. The execution, delivery and performance of
this Agreement by Typhoon Ventures, Inc. and Mr. Shepard, and the consummation
of the transactions contemplated by this Agreement contemplated hereby, will
not:

(a) violate, result in a breach of any of the terms or conditions of, or
  constitute a default by Typhoon Ventures, Inc. or Mr. Shepard under any
  contract, agreement, commitment, undertaking, understanding, note, bond,
  license or other instrument or obligation to which Typhoon Ventures, Inc. or
  Mr. Shepard is a party, or by which any of the properties or assets of Typhoon
  Ventures, Inc. or Mr. Shepard may be bound or affected; or

  (b) violate or conflict with any applicable law, judgment, order, writ,
  injunction or decree of any court, administrative agency or governmental body
  applicable to Typhoon Ventures, Inc. or Mr. Shepard.

 

4.4 Brokerage and Finder's Fees. Typhoon Ventures, Inc. and Mr.
Shepard have not incurred any liability or obligation to any finder or agent for
any brokerage fees, finder's fees or commissions with respect to the
transactions contemplated by this Agreement.

ARTICLE V. ASSUMPTION OF LIABILITIES BY MR. SHEPARD; WAIVER OF
BULK SALES.

5.1 Assumption of Liabilities. Typhoon Ventures, Inc. agrees to assume
responsibility for, all liabilities, commitments or obligations of Typhoon
pertaining to the Business, including, without in any way limiting the
generality of the foregoing, (1) any employment responsibilities or obligations
of Typhoon, including but not limited to vacation or sick pay, (2) any
obligations and liabilities of Typhoon under any collective bargaining or labor
agreements, (3) any accounts payable, loans or other liabilities or obligations,
(4) any claims, suits, actions or Litigation filed prior to the Closing Date
concerning the Business, (5) liabilities or obligations to be paid or performed
prior to the Closing Date under the Contracts, and/or (6) any product liability,
breach of warranty or similar liability. Typhoon Ventures, Inc. shall be solely
responsible for all liabilities and obligations and arising out of the operation
of the Business or the ownership, lease or use of the Purchased Assets just
prior to and after the Closing Date.

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5.2 Waiver of Bulk Transfers Law. The parties waive compliance with
the provisions of the Bulk Sales Law of any state, and Typhoon Ventures, Inc.
warrants and agrees to pay and discharge when due all claims of creditors which
could be asserted against Typhoon Ventures, Inc. by reason of such
noncompliance. Typhoon Ventures, Inc. agrees to pay at or within 30 days
following the Closing all trade payables pertaining to the Business and the
Purchased Assets, or according to terms if such terms extend beyond Closing, and
all sales, withholding, property and other taxes due to the State of Nevada or
any other taxing jurisdiction.

 

ARTICLE VI. CONDITIONS PRECEDENT TO CLOSING BY MR. SHEPARD

Subject to waiver by Typhoon Ventures, Inc. and Mr. Shepard, each of the
agreements of Typhoon Ventures, Inc. and Mr. Shepard to be performed by it at
the Closing shall be subject to the fulfillment of each of the following
conditions precedent:

6.1 Representations and Warranties. Each of the representations and
warranties of Typhoon set forth in this Agreement shall be true, correct and
complete in all material respects as of the Closing Date.

6.2 Agreements. Typhoon shall have performed and complied with all
agreements, undertakings, obligations and covenants which are required to be
performed or complied with by it at or prior to the Closing Date.

6.3 Shareholder Vote. The Shareholder Vote shall have occurred.

6.4 Litigation. No notice shall have been received as to Litigation
being commenced or threatened against Typhoon or Mr. Shepard by any governmental
authority or any other person or entity with regard to this Agreement or the
transactions contemplated by this Agreement.

6.5 Release of Encumbrances. All Encumbrances on any of the Purchased
Assets shall have been fully released.

6.6 Satisfaction with Legal Matters. All legal matters in connection
with this Agreement and the transactions contemplated by this Agreement, and the
form and substance of all legal proceedings and papers, instruments and
documents used or delivered herewith or incident to this Agreement shall be
reasonably satisfactory to counsel for Mr. Shepard.

6.7 Third-Party Consents and Approvals; Estoppel Certificates. Typhoon
shall have obtained all third-party (including, but not limited to,
governmental) consents and approvals, if any, required for the transfer or
continuance, as the case may be, of the Permits and Contracts disclosed in
Schedules 3.7 and 3.8.

 

ARTICLE VII. CLOSING.

7.1 Time and Place. The Closing of the transactions contemplated by
this Agreement will take place as soon as practical (and no later than 30 days
after) the Shareholder Vote has been obtained, at a date, time and place as
mutually agreed by the parties.

7.2 Deliveries by Typhoon. At the Closing, Typhoon shall deliver to
Typhoon Ventures, Inc. and Mr. Shepard:

(a) A Bill of Sale for the Purchased Assets;

  (b) A certificate by the Secretary of Typhoon as set forth in Section
  3.1(b) with respect to the authorizations of this Agreement by Typhoon and its
  shareholders.

  (c) All other certificates, documents of title, bills of sale and other
  instruments of conveyance and transfer, in form satisfactory to Typhoon
  Ventures, Inc., Mr. Shepard and Mr. Shepard's counsel, as Mr. Shepard's
  counsel shall reasonably deem necessary, to vest in Typhoon Ventures, Inc.
  good and marketable title to the Purchased Assets and to assign the rights to
  the name to Typhoon Ventures, Inc.

 

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7.3 Delivery by Typhoon Ventures, Inc. and Mr. Shepard. At the
Closing, Typhoon Ventures, Inc. and Mr. Shepard shall deliver to Typhoon the
amounts set forth in Section 2.

ARTICLE VIII. COVENANTS OF THE PARTIES.

8.1 Meeting of Shareholders; Proxy Statement.

(a) Typhoon shall take all action necessary in accordance with applicable
  law and its Articles of Incorporation and By-Laws, including the timely
  mailing of a proxy statement, to notify its shareholders entitled to vote
  about adoption of this Agreement and the approval of the transactions
  contemplated hereby. The vote required to adopt this Agreement and to approve
  the transactions contemplated hereby (the "Shareholder Vote") shall be and
  affirmative vote of the holders of a majority of the outstanding common shares
  of Typhoon. The Board of Directors of Typhoon having recommended such adoption
  and approval by the shareholders, shall not withdraw or modify such
  recommendation and shall take all lawful action to solicit such adoption and
  approval. Typhoon will use its reasonable best efforts to either obtain a
  written majority resolution approving the transaction or hold a shareholder
  meeting to obtain the Shareholder Vote as soon as reasonably practicable after
  the date hereof.

  (b) Typhoon shall file with the SEC as soon as reasonably practicable a
  proxy statement with respect to the special meeting of the shareholders in
  connection with the transaction contemplated by this Agreement (the "Proxy
  Statement"), respond to comments of the staff of the SEC, clear the Proxy
  Statement with the staff of the SEC and promptly thereafter mail the Proxy
  Statement to all stockholders of record of Typhoon. Typhoon shall comply in
  all material respects with the requirements of the Securities Exchange Act of
  1934, as amended and the rules and regulations of the SEC thereunder
  applicable to the Proxy Statement and the solicitation of proxies for such
  special meeting (including any requirement to amend or supplement the Proxy
  Statement). The Proxy Statement shall include the recommendation of Typhoon's
  Board of Directors in favor of the transaction contemplated by this Agreement.

 

8.2 Noncompetition Agreement.

(a) During the period of three years after the Closing Date, Typhoon shall
  not, directly or indirectly, or as an agent, contractor, consultant, partner,
  member, shareholder, owner, or otherwise:

  (i) Own any interest (other than the ownership of less than 10% of the
   outstanding stock of a publicly traded company) in, engage in or render any
   service to, or otherwise participate, whether for compensation or not, in any
   business or entity that, directly or indirectly, engages or is involved in
   the business of manufacturing, distributing, or selling music anywhere in
   North America;

   (ii) Advise any other person, firm, corporation or other entity or
   enterprise to engage in the of manufacturing, distributing, or selling music
   anywhere in North America;

   (iii) Request or advise any customer of Typhoon Ventures, Inc. or Mr.
   Shepard to terminate or alter its business relationship with Typhoon
   Ventures, Inc. or Mr. Shepard, or otherwise interfere with the business
   operations of the Business by Typhoon Ventures, Inc. or Mr. Shepard; or

   (iv) Induce or attempt to induce or influence any employee of Typhoon
   Ventures, Inc. to terminate employment with Typhoon Ventures, Inc.

  
  (b) It is the intent of the parties that the provisions of this Section 8.2
  shall be enforced to the fullest extent permissible under the laws and public
  policies applied in each jurisdiction in which enforcement is sought.
  Accordingly, to the extent that the noncompetition restrictions under this
  Agreement shall be adjudicated to be invalid or unenforceable in any such
  jurisdiction, the court making such determination shall have the power to
  limit, construe or reduce the duration, scope, activity and/or area of such
  provision, and/or delete specific words or phrases to the extent necessary to
  render such provision enforceable to the maximum reasonable extent permitted
  by applicable law, such limited form to apply only with respect to the
  operation of this Section in the particular jurisdiction in which such
  adjudication is made.

 

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(c) Typhoon acknowledges that its adherence to the terms of the covenants
  set forth in this Section 8.2 is necessary to protect the value of the
  Purchased Assets and Business to Typhoon Ventures, Inc. and Mr. Shepard, that
  a continuing breach of such covenants will result in irreparable and
  continuing damage to the value of the Purchased Assets and Business, and that
  money damages would not adequately compensate Typhoon Ventures, Inc. or Mr.
  Shepard for any such breach and, therefore, that Typhoon Ventures, Inc. and
  Mr. Shepard would not have an adequate remedy at law. In the event any action
  or proceeding shall be instituted by Typhoon Ventures, Inc. or Mr. Shepard to
  enforce any provision of this Section 8.2, Typhoon shall waive the claim or
  defenses in such action that (i) money damages are adequate to compensate
  Typhoon Ventures, Inc. and Mr. Shepard for such breach and (ii) there is an
  adequate remedy at law available to Typhoon Ventures, Inc. and Mr. Shepard,
  and shall not urge in any such action or proceeding the claim or defense that
  such remedy at law exists. Typhoon Ventures, Inc. and Mr. Shepard shall have,
  in addition to any and all remedies at law, the right to an injunction, both
  temporary and permanent, specific performance and/or other equitable relief to
  prevent the violation of any obligation under this Section 8.2. The parties
  agree that the remedies of Typhoon Ventures, Inc. and Mr. Shepard for breach
  of this Section 8.2 by Typhoon shall be cumulative, and seeking or obtaining
  injunctive or other equitable relief shall not preclude the making of a claim
  for damages or other relief. Typhoon also agrees that Typhoon Ventures, Inc.
  and Mr. Shepard shall be entitled to such damages as they can show they have
  sustained by reason of such breach and shall not be limited in its damages by
  any provision of, or to the consideration received by Typhoon pursuant to,
  this Agreement. In any action brought to enforce the covenants set forth in
  this Section 8.2, or to recover damages for breach thereof, the prevailing
  party shall be entitled to recover reasonable attorneys' fees and other
  expenses of litigation, together with such other and further relief as may be
  proper.

  (d) This Section 8.2 shall be exclusively construed according to, and the
  legal relations between the parties shall be exclusively governed in
  accordance with, the laws of the State of Nevada without regard to its
  conflict of laws principles; the parties intend to and do hereby confer
  jurisdiction to enforce the provisions of this Section 8.2 upon the courts of
  the State of Nevada.

 

8.3 Access to Records. Typhoon Ventures, Inc. and Mr. Shepard shall
retain the Records for at least six years. Typhoon or its agents shall have
access to the Records, upon reasonable notice and during normal business hours,
at Typhoon Ventures, Inc.'s Nevada office for legitimate business or tax
purposes during such six-year period.

ARTICLE IX. INDEMNIFICATION.

9.1 Survival. All representations, warranties, covenants, obligations
and undertakings made or contained in this Agreement shall survive the Closing
and shall survive any inspection, investigation or acceptance of possession or
delivery of the Purchased Assets made or done at any time by Typhoon Ventures,
Inc.

9.2 Indemnification by Typhoon. Typhoon shall indemnify, defend and
hold Typhoon Ventures, Inc. and Mr. Shepard harmless from and against any and
all loss, liability (including, but not limited to, consequential damages),
damage, deficiency, claim or expense, including, but not limited to, reasonable
attorneys' fees, arising out of or due to: (a) a breach of or default under any
representation, warranty, covenant, agreement, obligation or undertaking of
Typhoon contained in this Agreement; (b) noncompliance with any laws of the
State of Nevada or other laws for the protection of creditors; (c) the failure
of Typhoon to file any federal, state or local returns in connection with or pay
any Taxes due and payable, accrued, incurred or attributable to any event or
circumstance occurring or existing or applicable to any period ending on or
before the Closing Date; and (d) any claim, debt, liability, commitment or
obligation, of any nature, whether accrued, absolute, contingent or other and
whether due or to become due of Typhoon, or arising out of the operations of the
Business prior to the Closing Date or Typhoon's ownership or use of any of the
Purchased Assets prior to the Closing Date.

9.3 Indemnification by Mr. Shepard. Typhoon Ventures, Inc. and Mr.
Shepard shall indemnify, defend and hold Typhoon harmless from and against any
and all loss, liability (including, but not limited, consequential damages),
damage deficiency, clam, or expense, including, but not limited to, reasonable
attorneys' fees, arising out of or due to: (a) a breach of or default under any
representation, warranty, covenant, obligation or undertaking of Typhoon
Ventures, Inc. or Mr. Shepard contained in this Agreement; and (b) any claim,
debt, liability, commitment or obligation, of any nature, whether accrued,
absolute, contingent or other, and whether due or to become due, of Typhoon
Ventures, Inc. or Mr. Shepard, or arising out of the operations of the Business
after the Closing Date or Typhoon Ventures, Inc.'s ownership or use of any of
the Purchased Assets after the Closing Date.

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9.4 Limit on Indemnification. No claim for indemnification may be made
under this Agreement for other than fraud or a breach of the representations and
warranties relating to Taxes as set forth in Section 3.5 unless the party from
who indemnification is sought ("Indemnifying Party") is given written
notice of such claim within two years after the Closing Date.

9.5 Maximum Aggregate Liability of Typhoon. Except with respect to
fraud and unpaid Taxes, pursuant to the maximum aggregate indemnification
liability of Typhoon pursuant to Section 9.2 shall not exceed the Purchase
Price.

9.6 Threshold. No party shall be entitled to indemnification under
this Agreement unless the aggregate amount of the damages incurred by it as a
result of the incorrectness or breach of the representations and warranties made
by the Indemnifying Party exceeds $10,000.

9.7 Notice and Defense of Claims. A party claiming indemnification
under this Article VIII (the "Asserting Party") will give prompt written
notice (the "Claim Notice") of the nature and basis of the claim to the
Indemnifying Party. If the claim for indemnification arises out of a claim,
action or proceeding by a third party (a "Third Party Claim"), the
Indemnifying Party may elect to assume the defense of the Third Party Claim at
its own expense with counsel selected by the Indemnifying Party. If the
Indemnifying Party assumes the defense of the Third Party Claim, the
Indemnifying Party will not be liable for any fees or expenses of counsel for
the Asserting Party incurred in connection with the Third Party Claim. If the
Indemnifying Party does not assume the defense of the Third Party Claim, the
Asserting Party will have the right to defend and settle the Third Party Claim.
The Asserting Party and the Indemnifying Party will cooperate in the defense of
any claim, action or proceeding covered by this Section 9.7. The Asserting Party
will make available to the Indemnifying Party all records and other materials
reasonably required by the Indemnifying Party for use in contesting the Third
Party Claim. Where a third party in a Third Party Claim is a significant
continuing supplier or customer of the Asserting Party and the conduct of the
Third Party Claim may have a material adverse effect on the continued operation
of the business of the Asserting Party, the Indemnifying Party shall consult
with the Asserting Party in good faith with a view to reducing or eliminating
the adverse effect of the conduct of the Third Party Claim.

ARTICLE X. MISCELLANEOUS.

10.1 Assignment. This Agreement shall be binding upon and inure to the
benefit of the successors and assigns of each party to this Agreement, but no
rights, obligations or liabilities under this Agreement shall be assignable by
any party without the prior written consent of the other parties.

10.2 Third Parties. Nothing expressed or implied in this Agreement is
intended, or shall be construed, to confer upon or give any other person or
entity other than the parties to this Agreement any rights or remedies under or
by reason of this Agreement.

10.3 Complete Agreement. Except as expressly set forth in this
Agreement or in an instrument in writing signed by the party to be bound thereby
which makes specific reference to this Agreement, this Agreement sets forth the
entire understanding of the parties concerning the subject matter of this
Agreement and supersedes all prior contracts, arrangements, communications,
negotiations, discussions, representations and warranties, whether oral or
written, between the parties relating to the subject matter of this Agreement.

10.4 Expenses. Each of the parties to this Agreement shall pay all
costs and expenses incurred or to be incurred by such party in negotiating and
preparing this Agreement, and in closing and carrying out the transactions
contemplated in this Agreement.

10.5 Amendment. This Agreement may be amended at any time by a writing
which refers to this Agreement and is executed by Typhoon Ventures, Inc., Mr.
Shepard and Typhoon (and the Shareholder if such amendment is applicable to
him).

10.6 Further Assurances. Typhoon shall from time to time after the
Closing upon the reasonable request of Typhoon Ventures, Inc. or Mr. Shepard,
execute, acknowledge and deliver all such further acts, deeds, assignments,
transfers, conveyances and assurances as may be reasonably required to transfer
to and to vest in Typhoon Ventures, Inc. all good, valid, marketable and
indefeasible right, title and interest of Typhoon to the Purchased Assets, and
to protect the right, title and interest of Typhoon Ventures, Inc. and Mr.
Shepard in and to all of the Purchased Assets.

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10.7 Taxes. Typhoon shall pay all sales and use taxes and transfer
taxes, if any, applicable to the transactions contemplated by this Agreement.

10.8 Notices. All notices, requests, demands and other communications
required or permitted to be given under this Agreement shall be in writing and
shall be deemed to have been given (a) when delivered personally, (b) when
transmitted by facsimile, (c) on the third business day after being deposited in
the U.S. mail, certified, postage prepaid, return receipt requested, or (d) on
the first business day after being sent by a nationally recognized overnight
express courier service, to a party addressed as follows:

If to Typhoon, post closing:

Typhoon Touch Technologies, Inc.

  711 South Carson Street, Suite #4

  Carson City, Nevada 89701

  

 

If to Typhoon Ventures, Inc., and Mr. Shepard, post closing:

James G. Shepard

  306-1917 West 4th Avenue

  Vancouver, BC V6J 1M7

 

Any party may change the name, address and facsimile number to which such
communications are to be directed by giving notice to the other party of such
change in the manner provided above.

10.9 Severability. Each Article, section, subsection, paragraph and
lesser provision of this Agreement constitutes a separate and distinct
undertaking and covenant. In the event that any provision of this Agreement
shall finally be determined to be unlawful, such provision shall be limited by
construction in scope and effect to the minimum extent necessary to render the
same lawful and if such a limiting construction is not possible, such provision
shall be deemed severed from this Agreement, but in any event every other
provision of this Agreement shall remain in full force and effect.

10.10 Waivers. The failure of any party to insist in any one or more
instances upon performance of any of the provisions of this Agreement or to take
advantage of any of its or his rights under this Agreement shall not be
construed as a waiver of any such provisions or the relinquishment of any such
rights, and the same shall continue and remain in full force and effect. No
single or partial exercise by any party of any right or remedy shall preclude
other or future exercise thereof or the exercise of any other right or remedy.
Waiver by any party of any breach of any provision of this Agreement shall not
constitute or be construed as a continuing waiver or as a waiver of any other
breach or breach of any other provision of this Agreement.

10.11 Exhibits. The Exhibits and Schedules attached to this Agreement
and/or referred to in this agreement are part of this Agreement for all
purposes.

10.12 Captions. The captions in this Agreement are intended solely for
convenience of reference and shall not be given any effect in the construction,
meaning or interpretation of this Agreement.

10.13 Governing Law. Except as provided in Section 8.2, this Agreement
shall be exclusively construed according to, and the legal relations between the
parties shall be exclusively governed in accordance with, the laws of the State
of Nevada without regard to its conflict of laws principles.

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

TYPHOON TOUCH TECHNOLOGIES, INC.

 

By 

____________________________

Raymond Tellini, Director

"Typhoon"

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JAMES SHEPARD                                                                                         TYPOON VENTURES, INC.

 

____________________________                                                         ____________________________

James Shepard                                                                                                 James Shepard

"Mr. Shepard"

 

SCHEDULES

NUMBER MATTER

2.2 Allocation of Purchase Price

3.4 Title to and Condition of Properties

3.7 Permits

3.8 Litigation

3.9 Contracts/Leases

 

 
 

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