Document:

SALES CONTRACT

Exhibit 10.1

SALES CONTRACT

This Sales Contract is made, signed and came into force on this June 8th day of 2011 by and between:

Private Enterprise “Punchline Brazil.”, the company organized and existing under the laws of Brazil, having its principle place of business at Brazil, Sao Paulo, 1088 Lineu Paula Machado Ave, Suite 202, hereinafter referred to as “Seller”, and Vitas Group, Inc. the company organized and existing under the laws of Nevada, having its principle place of business at Italia #32-81 Y Mariana De Jesus, Quito EC 170102 Ecuador, hereinafter referred to as “Buyer”,

The Seller is a distributor of arcade machines and wishes to promote sale of its Boxing Machines to the Buyer. The Buyer wishes to secure right to purchase Boxing Machines from the Seller and place them in Quito, Ecuador, and The Parties mutually declare that they have the authority and desire to enter into this Contract;

NOW THEREFORE and in consideration of the premises and mutual covenants set out hereinafter, the Parties agreed as follows:

1. THE SUBJECT OF THE CONTRACT

1.1 "Seller" sells and "Buyer" buys Boxing Machines, in quantity according to the Invoice which is made out on each order separately. The minimum quantity is 3 (three) Machines per each order. The Machines under the given Contract will be delivered to Quito, Ecuador at Seller’s expenses.

2. DELIVERY TERMS

2.1 Delivery of the Machines is carried out by separate batches, according to the Invoice. The Sellers undertakes to deliver the Machines to Quito, Ecuador under the present contract not later than 30 days since the moment of reception of an advance payment. 

2.2 Within 24 hours after shipment of the Machines to Quito, Ecuador the Seller undertakes to inform the Buyer about shipment. 

2.3 The Buyer is obligated to take the Machines and pay in full within 3 (three) business days after informing of shipment.

3. PAYMENT TERMS

3.1 All orders transmitted by Buyer to Seller shall be deemed to be accepted by Seller at the time such orders are received by Seller to the extent that they are in compliance with the terms of this Contract, and Seller shall confirm its receipt and acceptance of each order in written within 3 working days of receipt of the order.

3.2 Currency of payment is US dollars. The advance payment for each order is 50 % and is transacted according to the Invoice. The rest of the payment (50 %) is payable after the delivering of Machines to Quito, Ecuador. 

4. PACKING, QUALITY OF THE GOODS AND THE GUARANTEE OF THE SELLER

4.1 The Machines should be shipped in the standard packing. The Seller bears the responsibility for the losses connected to damage of a cargo as a result of his wrong packing.

4.2 Acceptance of the goods on quality is made within 7 days from the moment of reception of the goods in Quito, Ecuador.

4.3 In case of delivery of the poor-quality or damaged Machines the Seller within 45 days from shipping date undertakes to replace these machines. The transport and other charges connected with replacement of the poor-quality goods are carried by the Seller.

4.4 The Seller guarantees, that the quality of the goods will be as the samples, which was presented by the Seller to the Buyer.

4.5 All Boxing Machines have one year manufacturer warranty.

5. THE PRICE AND THE TOTAL SUM OF THE CONTRACT

5.1 The total sum of the Contract is 200,000 US dollars (TWO HUNDRED THOUSAND DOLLARS).

5.2 The price is $4,000 (Four thousand) for each Boxing Machine. The Price for the Boxing Machine sold under the present contract, is fixed and includes delivery to Quito, Ecuador. Packing, marks, loading, import customs charges are included into the price. Currency of the Contract is US dollars.

6. TERM AND TERMINATION

6.1 This Contract becomes valid since the moment of signing till its complete fulfillment.

6.2 No addition or modification to this Contract shall be valid unless made in writing.

7.  INSURANCE

7.1The Seller is responsible to cover expenses for insurance of the goods.

8. FORCE MAJEURE

8.1 The Parties consider the force majeure circumstances as insuperable acts, for example: war, fire, flood, acts of authorities, which prevent execution of the conditions of the Contract, other circumstances, which do not depend on will of each Party. The Parties are freed from responsibility at such circumstances, which should be certified by the competent state authorities.

8.2 The Party, which fails to fulfill its obligations because of the force majeure circumstances, has to inform the other Party not later than after 3 days from the beginning of such circumstances.

9. ARBITRATION

9.1. All disputes and the disagreements, able to arise from the present contract or in connection with it will be whenever possible to be solved by negotiations (peace talks) between the Parties.

9.2 In case the Parties will not come to the agreement is subject to the International Commercial Arbitration Court at the Brazilian Chamber of Commerce.

		
	The Seller:

	The Buyer:

	

/S/ Guilherme Oliveira                 

Guilherme Oliveira

President

	

/S/ Irina Tchernikova   

Irina Tchernikova

Presidentexhibit10.htm

EXHIBIT 10.1

 

 

 

EXCHANGE AGREEMENT

This Exchange Agreement is made this 18th day of July, 2011 by and between Champion Industries, Inc. (“Champion”), a West Virginia corporation, and Marshall T. Reynolds (“Reynolds”).

 

WITNESSETH:

 

WHEREAS, Champion is the Maker of a Promissory Note dated December 29, 2009 in principal amount of Three Million Dollars ($3,000,000) payable to the order of Reynolds as Holder (“the Note”) pursuant to and in accordance with that certain Forbearance Agreement dated December 29, 2009 among Fifth Third Bank, as Administrative Agent, Champion and Reynolds; and

WHEREAS, Reynolds and Champion desire to exchange the Note in whole, together with the $147,875 interest thereon accrued but unpaid, for common stock of Champion by exchange of the principal amount thereof and accrued interest thereon into Champion common stock at a conversion ratio based upon the book value of Champion common stock at April 30, 2011, the date of the most recent filing of financial information by Champion with the United States Securities and Exchange Commission.

NOW THEREFORE, in consideration of the foregoing, which are not mere recitals but are an integral part hereof, the parties agree as follows:

	
1.  

	
Reynolds agrees to irrevocably transfer, assign, sell and convey to Champion the Note, together with all interest thereon accrued in exchange for, and Champion agrees to issue to Reynolds One Million Three Hundred Eleven Thousand Six Hundred Fifteen (1,311,615) shares of Champion common stock, par value $1.00, the ratio of exchange being Two and 40/100 Dollars ($2.40) of Note principal and accrued interest for one (1) share of Champion common stock, the book value of Champion common stock at April 30, 2011 being $2.40 per share.

	
2.  

	
Reynolds acknowledges that the Champion common stock to be received by him pursuant to this Exchange Agreement will be issued under an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Act”), as a transaction not involving a public offering.  Reynolds agrees that he will not offer to sell, transfer, pledge, encumber or dispose of any such Champion common stock unless (i) a registration statement with respect to the shares so to be disposed of has been filed and been declared effective under the Act or (ii) such disposition is exempt from registration under the Act, and counsel satisfactory to Champion has delivered to Champion an opinion that registration is not required in connection with such disposition.  Reynolds agrees that Champion may place a legend to the above effect on certificates for this stock to be issued to Reynolds pursuant to this Exchange Agreement and may advise its transfer agents and registrars of the foregoing restrictions and instruct them not to transfer any of such stock except in compliance with the above and upon written authorization from Champion.

	
3.  

	
The Closing of the Exchange shall take place at the offices of Huddleston Bolen LLP, 611 Third Avenue, Huntington, West Virginia on or before July 27, 2011.

	
4.  

	
This Exchange Agreement shall be governed by and construed under the substantive laws of the State of West Virginia with respect to contracts made and to be performed in that state.

	
5.  

	
This Exchange Agreement is made solely for the benefit of Champion and Reynolds, and no other person or entity shall acquire or have any right, under or by virtue hereof. This Exchange Agreement shall be binding upon the parties hereto and their respective successors and assigns.

	 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first above written.
	 
	 
	 	 	 	 CHAMPION INDUSTRIES, INC.
	 	 	 	 	 
	 	 	 	
 By: /s/ Todd R. Fry

 Its:  Senior Vice President and Chief Financial Officer
	 	 	 	 
	 	 	 	 
	 	 	 	
 /s/ Marshall T. Reynolds

MARSHALL T. REYNOLDS

 

 

1ex10_1-20110713.htm

EXHIBIT 10.1

CHANGES TO

2008 RETURN ON EQUITY INCENTIVE AWARD

GRANT AGREEMENT

1.           Section 2 of the Grant Agreement is amended by adding the following after the end of the paragraph:

 

“Further, Grantee shall retain Beneficial Ownership of Shares equal to not less than 100% of the net after-tax Shares received under this Agreement until the third anniversary date of the vesting of the Shares under this Award (the “Beneficial Ownership Period”). Compliance with the foregoing requirement shall be determined by reference to the reports filed by the Grantee on Forms 3, 4, and 5, as applicable, pursuant to Section 16(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and the aggregate number of Shares reported as Beneficially Owned during the Beneficial Ownership Period shall be not less than the sum of the number of Shares then required to be so owned pursuant to this Grant Agreement and any other Grant Agreement containing this or a similar requirement.  For purposes of this Agreement, “Beneficial Ownership” has the meaning ascribed in Rule 16a-1(2) under the Exchange Act.”

 

2.           Section 5 of the Grant Agreement is deleted in its entirety and the following is substituted in its stead:

 

“1.           Payment of Awards.  Up to and including 200% of the Target Incentive Amount, as adjusted pursuant to Sections 4 and 6 of this Agreement, will be settled 50% in cash and 50% in Shares.  The number of Shares shall be determined by dividing the amount to be settled in Shares by the last reported sale price of a share of Common Stock on the New York Stock Exchange Composite Transactions on the date the Administrator certifies attainment of the Performance Goal.  Payment will be made to the Grantee as promptly as practicable after the Administrator's certification of the attainment of the Performance Goal or the Change in Control Event, as the case may be, which, in the case of payment upon attainment of the Performance Goal, shall be made no later than the 15th day of the third month following the end of the first taxable year in which the award is no longer subject to a substantial risk of forfeiture.”

 

3.           Section 8 of the Grant Agreement is amended by deleting the second sentence in its entirety and substituting the following in its stead:

 

“If the Company must withhold any tax in connection with granting or vesting of this Return on Equity Incentive Award, the Grantee by acknowledging this Agreement agrees that, so long as the Grantee is an employee of the Company for tax purposes, all or any part of any such withholding obligation shall be deducted 50% from any cash amount payable under this Agreement and 50% from the amount to be paid in Shares by deducting an appropriate number of shares corresponding to the tax withholding from the number of Shares to be issued or transferred to the Grantee pursuant to this Agreement, unless the Grantee otherwise instructs the Company in writing not less than thirty (30) days prior to the end of the Performance Period, to satisfy such tax withholding by deducting a specified percentage, greater than 50%, from any cash amount payable under this Agreement and the remaining amount from the Shares portion to be issued or transferred to the Grantee pursuant to this Agreement.”

 

4.           Except as provided herein, all other terms and conditions of the Grant Agreement remain in full force and effect.

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