Document:

ex10-7.htm

Exhibit 10.7

 

 

September 11, 2015

 

Medley Capital Corporation

375 Park Avenue, Suite 3304

New York, NY 10152

Attn: Brian Dohmen and Gregory Richards

Fax: (212) 759-0091

 

	
RE:
	
Consents regarding issuance of Series J Convertible Preferred Stock and Series K Preferred Stock and amendment to the Amended and Restated Series J Certificate of Designation; Confirmation with respect to Customer 1 and related provisions in Loan Agreement

 

Ladies and Gentlemen:

 

Reference is made to that certain Term Loan Agreement dated as of February 19, 2014, as amended by that certain First Amendment to Term Loan Agreement dated as of April 25, 2014, that certain Limited Consent and Second Amendment to Term Loan Agreement dated as of January 30, 2015, and that certain Third Amendment to Term Loan Agreement dated as of September 11, 2015 (the “Third Amendment” and, as amended, the “Loan Agreement”), among Lighting Science Group Corporation, a Delaware corporation (“LSG” or “Borrower”), the various financial institutions from time to time party thereto as lenders (collectively, the “Lenders”) and Medley Capital Corporation, in its capacity as agent for Lenders (in such capacity, “Agent”). Capitalized terms used herein shall, unless otherwise provided herein, have the respective meanings set forth in the Loan Agreement.

 

LSG hereby advises Agent and Lenders that LSG desires to issue and sell additional Equity Interests pursuant to the terms of the Preferred Stock Subscription and Support Agreement, in the form attached hereto as Schedule I (the “Subscription and Support Agreement”), which Equity Interests shall consist of (a) one share of LSG’s Series J Convertible Preferred Stock (the “Series J Preferred Shares”), which are convertible into shares of common stock, $0.001 par value per share, of LSG (“Common Stock”), and which shall be governed by the Amended and Restated Certificate of Designation of Series J Convertible Preferred Stock, in the form attached hereto as Schedule II-A (as amended through the date hereof, the “Amended Series J Certificate of Designation”), and (b) a warrant to purchase 2,650 shares of Common Stock at an exercise price of $0.001 per share of Common Stock in the form attached hereto as Schedule III (the “Series J Warrants” and together with the Series J Preferred Shares, collectively the “Series J Securities”). The issuance and sale of Series J Securities shall take place at one or more closings to certain investors approved by LSG from the period commencing on or about September 11, 2015 through March 31, 2016 (the “Series J Securities Issuance Period”), and the aggregate amount of Series J Securities issued and sold from time to time during the Securities J Issuance Period shall not exceed 15,000 Series J Securities. In addition, pursuant to Section 14 of the Amended and Restated Certificate of Designation of Series H Convertible Preferred Stock (the “Series H Certificate of Designation”), the Amended and Restated Certificate of Designation of Series I Convertible Preferred Stock (the “Series I Certificate of Designation”) and the Amended Series J Certificate of Designation (collectively, the “Certificates of Designation”), LSG is required to issue and sell Series J Securities to Exercising Holders (as defined in the Certificates of Designation) on the terms and conditions set forth in the Certificates of Designation; the issuance of all such Series J Securities, including pursuant to the preemptive right provisions in Section 14 of the Certificates of Designation, is collectively the “Series J Issuance”.

 

1830 Penn Street | Melbourne, FL 32901 USA | www.lsgc.com

P 321.779.5520 | F 321.779.5521 

 

 

September 11, 2015

Medley Capital Corporation

Page 2 

 

In addition, as consideration for the posting of the Geveran Appeal Bond by Pegasus Fund IV, L.P. (“Pegasus IV”), LSG hereby advises Agent and Lenders that LSG desires to issue to Pegasus IV Equity Interests pursuant to the terms of the Subscription and Support Agreement, which Equity Interests shall consist of (a) one share of LSG’s Series K Preferred Stock (the “Series K Preferred Shares”), which shall be governed by the Certificate of Designation of Series K Preferred Stock, in the form attached hereto as Schedule IV (the “Series K Certificate of Designation”), and (b) a warrant to purchase 735 shares of Common Stock at an exercise price per share of Common Stock equal to the closing sales price of Common Stock as quoted on the OTC Bulletin Board, OTC pink markets or similar quotation service on the date immediately prior to the date of issuance, in the form attached hereto as Schedule V (the “Series K Warrants” and together with the Series K Preferred Shares, collectively the “Series K Securities”). Up to 25,000 Series K Securities shall be issued to Pegasus IV substantially concurrently with the execution of the Specified Appeal Bond Documents. In addition, pursuant to the Subscription and Support Agreement, LSG has agreed to conduct a rights offering that provides the holders of record of Common Stock and securities convertible into or exchangeable for shares of Common Stock the right to purchase a pro rata share of the number of Series K Securities issued to Pegasus IV (the “Rights Offering”). The issuance of all such Series K Securities, including pursuant to the Rights Offering, is collectively the “Series K Issuance”).

 

In addition, LSG hereby advises Agent and Lenders that LSG desires to amend the Amended Series J Certificate of Designation to increase the authorized number of Series J Preferred Shares from 70,000 Series J Preferred Shares to 85,100 Series J Preferred Shares, pursuant to the form of Certificate of Increase attached hereto as Schedule II-B (the “Series J Certificate of Increase”).

 

LSG hereby requests that, and subject to the satisfaction of the conditions set forth below, Agent and Lenders hereby: (a) waive the requirements of Sections 6.12(b) of the Loan Agreement with respect to the Series J Issuance and the Series K Issuance, (b) consent to the Series K Issuance and the adoption of the Series K Certificate of Designation in accordance with Section 5.18 of the Loan Agreement, (c) confirm that the adoption of the Series J Certificate of Increase and the Series K Certificate of Designation are not materially adverse in the interests of the Lenders, and are permitted pursuant to the terms of Section 6.6(b) of the Loan Agreement, and (d) with respect to any Series J Securities or Series K Securities issued as part of the Series J Issuance or the Series K Issuance, respectively, on or after the date hereof, agree to receive less than five (5) Business Days’ prior written notice of any such issuance, notwithstanding Section 6.12(a) of the Loan Agreement; provided however that, LSG shall provide at least one (1) Business Day prior written notice of such issuance, which notice shall specify the parties to whom such securities are to be issued, and the total amount (if applicable) which shall be realized from the issuance of such securities. 

 

LSG also hereby advises Agent and Lenders that the preliminary results of a periodic product line review conducted by Customer 1 (the “Line Review”) indicate that Customer 1 may significantly reduce its business with LSG, which may include ceasing to purchase certain items from LSG, in the future. Notwithstanding the final results of the Line Review (“Line Review Result”) which is expected to be disclosed in an award letter (the “Award Letter”) delivered to LSG by Customer 1, each of Agent and the Lenders hereby acknowledges and agrees that the Line Review Result described in the Award Letter and any direct or indirect impact of such Line Review Result on the ongoing operations of the Obligors’ business shall not constitute a Material Adverse Effect nor cause the representation to be made by LSG under Section 4.8 of the Loan Agreement to be untrue in any material respect. Each of Agent and Lenders hereby further acknowledges and agrees that LSG has fulfilled its obligations under Section 5.10 of the Loan Agreement with respect to disclosing any potential amendment to the Customer 1 Material Contract resulting from the Line Review. Notwithstanding the foregoing, LSG hereby agrees to provide Agent with a copy of the Award Letter within two (2) Business Days’ of receipt by LSG thereof.

 

 

 

 

September 11, 2015

Medley Capital Corporation

Page 3

  

The waivers set forth herein shall not establish any course of dealing regarding, support any expectation on the part of any obligor regarding, nor affect the interpretation of, any provision of the Loan Agreement with respect to any matter other than, to the limited extent described above, the Line Review Result described in the Award Letter.

 

None of the foregoing waivers is intended to be, and none shall be deemed to be, a waiver or modification of any provision of the Loan Agreement except as expressly set forth herein (for the avoidance of doubt, including without limitation, a waiver of any Default that may arise under Section 7 of the Loan Agreement, following receipt of the final results of the Line Review). Without limiting the generality of the foregoing, this letter agreement shall in no way modify the provisions of Sections 6.6(b), 6.10 or 6.12 of the Loan Agreement (other than to the extent that Agent has provided its consent to certain items set forth herein. For the avoidance of doubt, LSG hereby acknowledges that any future issuance of Series J Preferred Shares or Series K Preferred Shares, solely to the extent such issuance is in excess of the aggregate amount of Series J Securities and Series K Securities issuable pursuant to the Series J Issuance and the Series K Issuance, respectively, shall not be permitted by Section 6.12 of the Loan Agreement without the consent of Agent and Lenders, as the terms of the Series J Preferred Shares and the Series K Preferred Shares are more restrictive or burdensome to LSG than the terms of any Equity Interests in effect on the Closing Date. The effectiveness of the consent and waivers contained herein is subject to Agent's receipt of (i) a duly executed consent and waiver with respect to the Revolving Loan Agreement in form and substance satisfactory to Agent with respect to the consent items described herein, (ii) a duly executed Third Amendment among Borrower, Agent, and Lenders with respect to the Loan Agreement, in form and substance satisfactory to Agent, and (iii) an opinion letter (in form and substance satisfactory to Agent) from counsel to Borrowers addressing such matters as Agent shall request in connection with the Series J Issuance and the Series K Issuance. In consideration of Agent's and Lenders' willingness to enter into this agreement, LSG hereby agrees to promptly (but in any event within one (1) Business Day of receipt of the filed stamped copy thereof) provide Agent with a recorded copy of the Amended Series J Certificate of Designation, the Series K Certificate of Designation, and the Series J Certificate of Increase, as certified by the Secretary of State of the State of Delaware.

 

By its signature hereto, Borrower and Guarantor hereby (a) ratifies and reaffirms the Obligations, each of the Loan Documents and all of Borrower’s and Guarantor’s respective covenants, duties, indebtedness and liabilities under the Loan Documents; (b) acknowledges and stipulates that: the Loan Agreement and the other Loan Documents executed by Borrower and Guarantor are legal, valid and binding obligations of Borrower and Guarantor that are enforceable against Borrower and Guarantor in accordance with the terms thereof; all of the Obligations are owing and payable without defense, offset or counterclaim (and to the extent there exists any such defense, offset or counterclaim on the date hereof, the same is hereby waived by Borrower and Guarantor); and the security interests and liens granted by Borrower and Guarantor in favor of Agent are duly perfected, first priority security interests and liens; and (c) represents and warrants to Agent and Lenders, to induce Agent and Lenders to enter into this agreement, that (i) no Default exists on the date hereof or would result from the effectiveness of this agreement or the consummation of the actions described herein, (ii) the execution, delivery and performance of this agreement have been duly authorized by all requisite company action on the part of Borrower and Guarantor and this agreement has been duly executed and delivered by Borrower and Guarantor, (iii) all of the representations and warranties made by Borrower and Guarantor in the Loan Documents are true and correct on and as of the date hereof, and (iv) LSG has provided a copy of the Loan Agreement to each of LSGC Holdings III LLC and Pegasus IV which are, as of the date hereof, the anticipated initial investors of the Series J Securities and the Series K Securities, respectively, and have discussed the provisions (including, without limitation, restrictions upon redemptions, distributions and issuance of Equity Interests) of the Loan Agreement with such Persons. 

 

 

 

 

September 11, 2015

Medley Capital Corporation

Page 4 

 

.     In consideration of Agent’s and Lenders’ willingness to enter into this agreement, Borrower agrees to pay to Agent and Lenders, on demand, all costs and expenses (including, without limitation, taxes and legal fees and expenses) incurred by Agent and Lenders in connection with the preparation, negotiation and execution of this agreement and any other Loan Documents executed pursuant hereto and any and all amendments, modifications, and supplements thereto. Except as otherwise expressly provided in this agreement, nothing herein shall be deemed to amend or modify any provision of the Loan Agreement or any of the other Loan Documents, each of which shall remain in full force and effect. This agreement is not intended to be, nor shall it be construed to create, a novation or accord and satisfaction, and the Loan Agreement shall continue in full force and effect. This agreement shall be governed by and construed in accordance with the internal laws of the State of New York and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. This agreement may be executed in any number of counterparts and by different parties to this agreement on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute one and the same agreement. Any manually executed signature page hereto that is delivered by facsimile or other electronic transmission shall be deemed to be an original signature hereto. To the fullest extent permitted by applicable law, the parties hereto each hereby waives the right to trial by jury in any action, suit, counterclaim or proceeding arising out of or related to this agreement.

 

To induce Agent and Lenders to enter into this letter agreement, Borrower and Guarantor hereby RELEASE, ACQUIT AND FOREVER DISCHARGE Agent and each Lender, and all officers, directors, agents, employees, successors and assigns of Agent or any Lender, from any and all liabilities, claims, demands, actions or causes of action of any kind or nature (if there be any), whether absolute or contingent, disputed or undisputed, at law or in equity, or known or unknown, that Borrower or Guarantor now has or ever had against Agent or any Lender arising under or in connection with any of the Loan Documents or otherwise. Borrower and Guarantor represent and warrant to Agent and Lenders that Borrower and Guarantor have not transferred or assigned to any Person any claim that Borrower or Guarantor ever had or claimed to have against Agent or any Lender.

 

[Remainder of Page Intentionally Left Blank;

Signature Page Follows.]

 

 

 

 

 

	
 
	
Very Truly Yours,
	
 

	 	 	 
	 	LIGHTING SCIENCE GROUP CORPORATION	 
	
 
	
 
	
 
	
 

	 	 	 	 
	
 
	
 
	
 
	
 

	
 
	
By: 
	
/s/ Ed Bednarcik 
	
 

	
 
	
 
	
Name:  Ed Bednarcik  
	
 

	
 
	
 
	
Title:    Chief Executive Officer     
	
 

	 	 	 	 
	 	 	 	 
	 	BIOLOGICAL ILLUMINATION, LLC	 
	 	 	 
	 	 	 
	 	 	 
	 	By:	/s/ Phil Ragona  	 
	 	 	Name:   Phil Ragona  	 
	 	 	Title:     Executive Vice President and Secretary	 
	 	 	 	 
	 	 	 	 
	 	LSGC, LLC	 
	 	 	 
	 	 	 
	 	 	 
	 	By:	/s/ Phil Ragona  	 
	 	 	Name:   Phil Ragona  	 
	 	 	Title:     Executive Vice President and Secretary	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	Accepted and Agreed as of September 11, 2015	 
	 	 	 
	 	 	 
	 	MEDLEY CAPITAL CORPORATION, as Agent for	 
	 	the Lenders	 
	 	 	 
	 	 	 
	 	 	 
	 	By: 	/s/ Richard T. Allorto  	 
	 	 	Name:  Richard T. Allorto	 
	 	 	Title:    Chief Financial OfficerExhibit 10.1

 

SERVICE AND STRATEGIC PARTNERSHIP
AGREEMENT

 

This Service
and Strategic Partnership Agreement (“Agreement”) is made as of August 24, 2015 (the “Effective Date”),
by and between NATIONAL PEO, LLC, an Arizona limited liability company, with an address of 4800 North Scottsdale Road, Suite 2000,
Scottsdale, AZ 85251 (“National”), NEXUS PARTNERS INSURANCE, LLC, an Arizona limited liability company, with an address
of 4800 North Scottsdale Road, Suite 2000, Scottsdale, AZ 85251 (“Nexus”), SIBANNAC INC., a Nevada corporation, with
an address of 9235 Bell Flower Way, Highlands Ranch, CO 80126 (“Sibannac”) and RIMROCK INSURANCE CONSULTING, INC.,
an Arizona corporation, with an address of 3033 N. Valencia Lane, Phoenix, AZ 85018 (“Rimrock”). National, Nexus, Sibannac
and Rimrock are collectively referred to herein as the Parties.

 

WHEREAS, National
is in the business of providing PEO and ASO personnel and human resources back office services (collectively “Back Office
Services”);

 

WHEREAS, National
is related to Nexus which brokers commercial insurance;

 

WHEREAS, National
and Nexus desire to provide such services to marijuana related businesses, including hemp and marijuana agribusiness (“MRB”)
clients of Sibannac and Rimrock (collectively “S/R”) and S/R desires to enter into a contract with National and Nexus
to obtain such services for their MRB clients.

 

NOW THEREFORE,
in consideration of the mutual promises, covenants, warranties, and other good and valuable consideration set forth herein, the
parties hereby agree as follows:

		1.	Exclusive Provider. During the term of this Agreement, National will be the sole and exclusive
provider of PEO/ASO and insurance services to S/R’s MRB clients. Likewise, S/R will be the exclusive broker of services to
MRB clients for National and Nexus. Notwithstanding this provision, National, through Hooman Nikzad only, may originate MRB client
relationships that are developed independently of S/R. With respect to those particular client relationships, S/R will not be entitled
to any payment from National and the other provisions of this Agreement will not apply. However, National agrees that it will commercially
reasonable efforts to price the administrative fee for S/R businesses at 3% to avoid pricing discrepancy in the marketplace.

		2.	Marketing Expense. S/R will pay 20% of National’s sales and marketing expenses relating
to MRBs where S/R is the broker (“Marketing Share”).

 

    	1

    	 

    

		3.	Fee Sharing. S/R will sell National’s Back Office Services
at a 3% administrative fee with half the fee retained by National and half paid to S/R. S/R may reduce the amount of the administrative
fee to effect a sale but National’s percentage of the premium will not be less than S/R’s percentage and in no event
will it be less than 1.25%. If S/R sells a payroll only account, National and S/R will negotiate the fee split on a case by case
basis.

		4.	Background
                                         Screening. S/R will negotiate terms with Universal Background Screening for National
                                         to provide background checks of MRB personnel at a negotiated rate which fees to the
                                         end client will be agreed by S/R and National. Any amount of the mark-up split will be
                                         50% to S/R and 50% to National.

		5.	Commissions on Sales. Commissions earned by National sales persons
or third-party brokers are to be paid by National. National will bear 75% of such commissions with S/R bearing 25% of the commissions
(“Sales Commissions”). Any Sales Commission that National will pay will be based on the admin fees retained by National
only. By way of example, assuming that a sales representative is entitled to a commission equal to .30% of gross payroll. National
will pay an amount equal to .225% (.30% * 75% = .225%) and S/R will pay .075% (.30% * 25% = .075%).

		6.	Payments. All                                          funds
                                                                                                                                       for any services, background checks and administrative fees will be paid to
                                                                                                                                       National. National is responsible for compensation                                          to be paid to S/R for such PEO
                                                                                                                                       and ASO Back Office Services within 10 days after the                                          end of the month. These
                                                                                                                                       payments will be reduced by any Marketing Share and Sales Commissions                                          due to
                                                                                                                                       National. National will provide a ledger along with each payment.

		7.	Discount in Admin Fee for Insurance Clients. In the event an S/R
MRB client generates insurance commissions of more than $10,000 in a policy year, that particular client may receive a .25% reduction
in the administrative fee for the remainder of that policy year if authorized by a S/R representative. If the policy is cancelled,
any discount provided hereunder will cease.

		8.	Insurance Commissions. Commissions generated on Nexus policies from
business brokered or referred by S/R will be split 80% to Nexus and 20% to S/R within 15 days after the end of the month in which
such commissions are earned and paid, including any incentive commissions paid.

		9.	Term of Agreement.

 

	a)		The term of this Agreement will be two years with automatic renewal for an additional
two year period unless one of the parties, at least 60 days prior to the end of the term, notifies the others in writing of its
intent to terminate this Agreement.

    	2

    	 

    

 

	b)		In the event of any breach of this Agreement by either party, the party in breach
shall have 30 days to remedy such breach. In the event that the breaching party fails to cure the breach within such time period,
the non-breaching party may immediately terminate this Agreement at its option, National agrees to immediately delivery any records
and documents related to the joint venture to S/R following such termination upon S/R’s request. In addition, National will
continue to pay commissions and fees to S/R as long as the client continues to utilize and pay for National’s services.
Provisions of this subparagraph 9(b) will survive the termination of this Agreement.

		10.	MRB as an Ongoing Business Opportunity. In the event National determines
that concerns related to the legal status of marijuana sales make the business no longer viable or any other reason at National’s
discretion, National may at any time immediately terminate the servicing of those clients without any financial obligation to S/R.

		11.	Limited Continuation After Termination. In the event of termination
for other than National’s concerns regarding the legality of MRB, S/R may by a written election to National prior to date
of termination continue this contract for an additional 90 days on the same terms and conditions. S/R may, by a written election
to National prior to the end of the 90 day extension period, elect to continue this contract for an additional six months on the
same terms and conditions except that National will be entitled to a 30% increase in its rates. (E.g., 1.5% x 130% = 1.95%).
At the end of such six month period, this Agreement will terminate in full with no further extensions.

		12.	Establishment of New Sales Offices. National will open a sales office
in any state where the gross payrolls handled by it under this contract exceeds $15 million during a calendar year; a full office
including processing will be opened when the gross payroll in a state exceeds $25 million annually.

		13.	Interest in Sibannac. When gross payrolls under this Agreement exceed
$20 million for the previous 12 months, National will receive shares of stock equal to 0.5% of all then-issued shares in Sibannac.
When gross payrolls under this Agreement exceed $40 million for the previous 12 months, National will receive an additional award
of shares of stock equal to an additional 0.5% of all then-issued stock in Sibannac. National will receive newly issued Sibannac
stock, without any trading or other restrictions, within 30 days of hitting the gross revenue targets.

 

    	3

    	 

    

		14.	No Agency. S/R will not bind National or Nexus to any contract, and any client agreement will require
the signature of a designated party at National or Nexus.

		15.	Arbitration. In the event of a dispute, the parties agree to resolve
the dispute through arbitration. If the parties are unable to agree on the arbitrator, the parties will have the American Arbitration
Association select the arbitrator. The venue for any action relating to this Agreement will be Maricopa County, Arizona. The prevailing
party in any dispute will be entitled to its reasonable attorney fees and costs.

		16.	E & O Coverage. National will explore the feasibility and cost
of adding S/R to National’s E & O policy within 60 days of signing this Agreement. National will report to S/R regarding
the results of that exploration, but will not be obligated to pay for any additional cost due.

		17.	Ownership of Book of Business. Each S/R on one hand and National/Nexus
on the other hand, will each own 50% of the business created pursuant to this Agreement. If the gross payrolls exceed $20 million
at the end of the the second anniversary date of this Agreement, S/R will own 70% of the business and National/Nexus will own 30%
of the business created hereunder. With respect to the insurance business, the valuation of the joint venture is equal to the total
commissions received during the trailing 12 months. With respect to the PEO business, the valuation of the joint venture will be
established by an independent third-party valuation. Either party may choose to purchase the interests of the other in either portion
(or both portions) of the joint venture by making payment for the selling party’s interest. Each the purchasing party and
the selling party will each select an appraiser. The two appraisers will independently appoint a third appraiser. The purchasing
party will be responsible for payment to the appraisers. The average of the three appraisals will be the valuation which determines
the purchase price. Payment must be made in cash or over a 24 month period. A selling party may require a letter of credit or other
commercially reasonable guaranty of payment. Nothing relating to the ownership will impact the calculation pursuant to Paragraph
3 prior to the execution of definitive agreements relating to the sale. Notwithstanding the foregoing, S/R will always have the
first right to purchase the business of the joint venture (the insurance and/or PEO businesses) from National/Nexus upon the terms
and conditions of any third party offers received by National/Nexus for only the joint venture business.

		18.	Licenses. National and Nexus will maintain any necessary licenses
for the operation of its business.

		19.	Indemnification. Each party agrees to indemnify and hold the other
party harmless for any acts or omissions contemplated hereunder.

 

    	4

    	 

    

		20.	Forms of Client Agreements. National agrees to supply S/R with any
client contracts, proposals or other form agreements necessary for S/R to sell Back Office Services.

		21.	Sales of Additional Products or Services. National agrees to pay S/R
20% of the profit or markup of any third party services for which compensation is not explicitly provided under this Agreement.
This applies to payments from any client first introduced to National by S/R.

		22.	Contingency Payments for Insurance. Nexus will retain any contingency
payments from insurance companies.

		23.	Credit Risk. National and/or Nexus will be solely responsible for
collection of any money due from clients. S/R will not guarantee payment for any services or products provided to third-parties,
and S/R will not offer any credit terms on behalf of National and/or Nexus (including ACH or company checks) to clients.

		24.	Ledger Reports. S/R will be provided a monthly ledger report, including
the calculation of any amounts due hereunder. S/R will receive the rights to perform an audit, at its own expense, not more than
once annually.

		25.	S/R Legal Status. Several of the rights and obligations contained
in this Agreement are to S/R. Any reference to S/R will be a joint and several right and/or obligation of each Sibannac and Rimrock.
Any payments due to S/R will be made to Sibannac unless National and/or Nexus is instructed in writing to direct payments to any
other party.

		26.	Notices. Any notice required under this Agreement will be sent via
email and regular mail to the address listed above. In addition, a copy of any notice must be sent via email to
jfrutkin@frutkinlaw.com and via regular mail to Jonathan Frutkin, c/o The Frutkin Law Firm, 15205 N Kierland Blvd, Ste
200, Scottsdale, AZ 85254.

		27.	Counterparts. This Agreement may be executed in counterparts, each
of which will be deemed to be an original, but all of which, taken together, constitute one and the same agreement.

		28.	Entire Agreement; Modification. This Agreement contains the entire
understanding of the parties with respect to the subject matter hereof, will supersede any other oral or written agreements relating
to such subject matter, and will be binding upon the parties’ respective successors and permitted assigns. It may not be
modified in any way without the written consent of both parties.

		29.	Headings. The headings and subheadings of this Agreement are provided
for reference purposes only and are not part of this Agreement.

 

    	5

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized
as of the date first above written.

 

 

	NATIONAL PEO, LLC,	 	NEXUS PARTNERS INSURANCE, LLC,
	an Arizona limited liability company	 	an Arizona limited liability company
	 	 	 
	By: /s/ Hooman Nikzad	 	By: /s/ Hooman Nikzad
		 	 
	Its: CEO	 	Its: CEO
	 	 	 
	Date: 9/10/2015	 	Date: 9/10/2015
	 	 	 
	 	 	 
	 	 	 
	SIBANNAC, INC.,	 	RIMROCK INSURANCE CONSULTING, INC.,
	a Nevada corporation	 	an Arizona corporation
	 	 	 
	By: /s/ Dan Allen	 	By: /s/ Travis Hair
	 	 	 
	Its: CEO	 	Its: CEO
	 	 	 
	Date: 8/27/2015	 	Date: 8/24/2015

 

 

    	6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00249-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00249-of-00352.parquet"}]]