Document:

Wdesk | Exhibit 10.2 - PU Award Agreement

Exhibit 10.2

Weatherford International Ltd.
Performance Unit Award Agreement
(Shareholder Return)

This Performance Unit Award Agreement (this “Agreement”) is made and entered into by and between Weatherford International Ltd., a Swiss corporation (the “Company”), and _____________ (the “Holder”) effective as of the ___ day of _______ 20___, pursuant to the Weatherford International Ltd. 2010 Omnibus Incentive Plan (the “Plan”), which is incorporated by reference herein in its entirety.

Whereas, the Company desires to grant to the Holder Performance Unit Awards (the “Units”) under the Plan, subject to the terms and conditions of this Agreement; and

Whereas, the Holder desires to have the opportunity to hold the Units subject to the terms and conditions of this Agreement;

Now, therefore, in consideration of the premises, mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

		
	1.
	Definitions.  For purposes of this Agreement, “Forfeiture Restrictions” shall mean any prohibitions and restrictions set forth herein or in the Plan with respect to the sale or other disposition of the Units and the obligation to forfeit such Units to the Company. Capitalized terms not otherwise defined in this Agreement shall have the meanings given to such terms in the Plan.

		
	2.
	Grant of Units.  Effective as of the date of this Agreement, the Company grants to the Holder _________ Units.  Each Unit shall, upon vesting pursuant to Section 4 and subject to the Performance Goal set out in Annex A to this Agreement, be convertible into between 0.0 and 2.0 Shares (such amount being the “Performance Multiplier”), depending on the level of achievement of the Performance Goal on the Performance Measurement Date.  The Company and the Holder agree that this Agreement, together with the Plan and any employment agreement between the Company and the Holder in effect on the date hereof, as the same subsequently may be amended (the “Employment Agreement”), sets forth the complete terms of the Award and that the Award shall be subject to the terms of the Employment Agreement.  As used herein, “Performance Measurement Date” means the last trading day in each of the years ending December 31, 20__, December 31, 20__ and December 31, 20__, provided, however, that if any Vesting Date occurs pursuant to Section 4(b) below, then the Performance Measurement Date shall be the twenty NYSE trading days ending on the date immediately preceding the Vesting Date and the Performance Goal and Performance Multiplier shall be calculated using the volume weighted average price per share of the Company’s common stock during such period. 

		
	3.
	Transfer Restrictions.  Except as specified herein or in the Plan, the Units may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of.  Any such attempted sale, assignment, pledge, exchange, hypothecation, transfer, encumbrance or disposition in violation of this Agreement or the Plan shall be void, and the Company shall not be bound thereby.  

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	4.
	Vesting or Forfeiture.  

		
	(a)
	Except as specified otherwise in this Section 4, the Units shall be subject to Forfeiture Restrictions, which shall lapse in accordance with the following schedule provided that the Units have not been forfeited to the Company prior to:

	
			
	Lapse Date
	 
	Number of Units as to Which Forfeiture Restrictions Lapse

	_______, 20__
	 
	 

	_______, 20__
	 
	 

	_______, 20__
	 
	 

such lapse date or such earlier date as provided in clause (b) below (the “Vesting Date”).

		
	(b)
	Notwithstanding the foregoing, if (i) the Holder’s employment or affiliation relationship with the Company and its Affiliates is terminated prior to ________, 20__ (A) due to the death or Disability of the Holder, (B) by the Holder for Good Reason (as defined below) or (C) by the Company for any reason other than Cause (as defined below) then, in any such event, the Vesting Date shall be the date of termination of the Holder’s employment or affiliation relationship, or (ii) there is a Change in Control prior to ________, 20__, then the Vesting Date shall be the date immediately preceding such Change in Control.  For purposes of this Agreement, “Change in Control” means a change in the ownership of the Company, a change in the effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company as described in Section 409A.   For purposes of this Agreement, the terms “Good Reason” and “Cause” shall have the meanings provided under the Holder’s Employment Agreement, if any, and in the absence of an Employment Agreement, such terms shall be inapplicable for purposes of this Agreement and any termination of the Holder’s employment other than due to clause (i)(A) of this Section 4(b) shall be governed by Section 4(c) of this Agreement.

		
	(c)
	If the Holder’s employment or affiliation relationship with the Company and its Affiliates terminates prior to the Vesting Date by the Holder for any reason other than Good Reason or by the Company for Cause, then any Forfeiture Restrictions that have not previously lapsed pursuant to the provisions of this Section 4 shall not lapse, and any Units with respect to which the Forfeiture Restrictions have not lapsed shall be forfeited to the Company on the date of the termination of the Holder’s employment or affiliation relationship with the Company and its Affiliates.   In the event any Units are forfeited to the Company pursuant to this Agreement, the Company will not be obligated to pay the Holder any consideration whatsoever for the forfeited Units.  

		
	5.
	No Dividend Equivalents.   If during the period the Holder holds any Units awarded hereby the Company pays a dividend in cash, Shares or otherwise with respect to the outstanding shares of Company’s registered shares, par value CHF 1.16 per share (the “Shares”), the Holder shall receive no dividend equivalent payment with respect to the Holder’s Units. 

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	6.
	Delivery of Shares.  Upon the date of lapse of the Forfeiture Restrictions under Section 4, the Company shall deliver or cause to be delivered a number of Shares equal to the number of Units with respect to which the Forfeiture Restrictions have lapsed multiplied by the applicable Performance Multiplier (subject to the satisfaction by the Holder of any liability arising under Section 8 of this Agreement); provided that if the Performance Multiplier is 0.0, then the Units shall be deemed forfeited on the date of lapse of the Forfeiture Restrictions.

		
	1.
	Capital Adjustments and Reorganizations.  The existence of the Units shall not affect in any way the right or power of the Company or its shareholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business, or any acquisition, merger, amalgamation or consolidation of the Company, or any issue of bonds, debentures, preferred or prior preference shares ahead of or affecting the Shares or the rights thereof, or the winding up, dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise, including a Corporate Change (as defined in the Plan).

		
	8.
	Responsibility for Taxes & Withholding.  Regardless of any action the Company or any of its Affiliates takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related items related to the Holder’s participation in the Plan and legally applicable to the Holder (“Tax-Related Items”), the Holder acknowledges that the ultimate liability for all Tax-Related Items, unless otherwise agreed in a separate undertaking, is and remains the Holder’s responsibility and may exceed the amount actually withheld by the Company or any of its Affiliates.  The Holder further acknowledges that the Company and/or its Affiliates (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect to the Units, including, but not limited to, the grant of the Units, the lapse of the Forfeiture Restrictions, the delivery of Shares, the subsequent sale of Shares acquired pursuant to such delivery and the receipt of any dividends and/or dividend equivalents; and (2) do not commit to and are under no obligation as a result of this Agreement to structure the terms of any award to reduce or eliminate Holder’s liability for Tax-Related Items or achieve any particular tax result.  Further, if the Holder becomes subject to tax in more than one jurisdiction between the date of grant and the date of any relevant taxable event, the Holder acknowledges that Company and/or its Affiliates may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

Prior to any relevant taxable or tax withholding event, as applicable, the Holder will pay or make adequate arrangements satisfactory to the Company and/or its Affiliates to satisfy all Tax-Related Items.  In this regard, the Holder authorizes the Company and/or its Affiliates, or their respective agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following:

		
	(a)
	withholding from the Holder’s wages or other cash compensation paid to the Holder by the Company and/or its Affiliates; or

		
	(b) 
	withholding from proceeds of the Shares acquired following the lapse of the Forfeiture Restrictions either through a voluntary sale or through a mandatory sale arranged by the Company (on Holder’s behalf pursuant to this authorization); or

		
	(c) 
	withholding in Shares to be delivered upon the lapse of the Forfeiture Restrictions.

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To avoid negative accounting treatment, the Company and/or its Affiliates may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates.  If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, the Holder is deemed to have been issued the full number of Shares attributable to the awarded Units, notwithstanding that a number of Shares are held back solely for the purpose of paying the Tax-Related Items due as a result of any aspect of the Holder’s participation in the Plan.  The Holder shall pay to the Company and/or its Affiliates any amount of Tax-Related Items that the Company and/or its Affiliates may be required to withhold or account for as a result of the Holder’s participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver the Shares or the proceeds of the sale of Shares, if the Holder fails to comply with the Holder’s obligations in connection with the Tax-Related Items.  For the avoidance of doubt, this Section 8 shall not be construed to augment, reduce or eliminate any separate benefits (including ex-patriot tax benefits) otherwise provided to Holder.

		
	9.
	Employment or Affiliation Relationship.  For purposes of this Agreement, the Holder shall be considered to be in the employment of, or affiliated with, the Company or its Affiliates as long as the Holder has an employment or affiliation relationship with the Company or its Affiliates.  The Committee shall determine any questions as to whether and when there has been a termination of such employment or affiliation relationship, and the cause of such termination, under the Plan and the Committee’s determination shall be final and binding on all persons.

		
	10.
	Voting and Other Rights.  The Holder shall have no rights as a shareholder of the Company in respect of the Units, including the right to vote and to receive dividends and other distributions, until delivery of certificates representing Shares in satisfaction of such Units.  

		
	11.
	Not an Employment or Affiliation Agreement.  This Agreement is not an employment or affiliation agreement, and no provision of this Agreement shall be construed or interpreted to create an employment relationship between the Holder and the Company or any of its Affiliates or guarantee the right to remain employed by or affiliated with the Company or any of its Affiliates for any specified term.

		
	12.
	Data Privacy.  By signing below, the Holder voluntarily acknowledges and consents to the collection, use, processing and transfer of personal data as described in this Section.  The Holder is not obliged to consent to such collection, use, processing and transfer of personal data.  However, failure to provide the consent may affect the Holder’s ability to participate in the Plan.  The Company and its Affiliates hold certain personal information about the Holder, including the Holder’s name, home address and telephone number, date of birth, social security number or other employee identification number, salary, nationality, job title, any shares of stock or directorships held in the Company and details of all Units or any other entitlement to shares of stock awarded, cancelled, purchased, vested, unvested or outstanding in the Holder’s favor, for the purpose of managing and administering the Plan (“Data”).  The Company and its Affiliates will transfer Data amongst themselves as necessary for the purpose of implementation, administration and management of the Holder’s participation in the Plan, and the Company and its Affiliates may each further transfer Data to any third parties assisting the Company in the implementation, administration and management of the Plan.  These recipients may be located in the European Economic Area or elsewhere throughout the world in countries that may not provide an equivalent level of data protection to the laws in the Holder’s home country, such as the United States.  The Holder authorizes them to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and 

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managing the Holder’s participation in the Plan, including any requisite transfer of such Data as may be required for the administration of the Plan and the subsequent holding of Shares on the Holder’s behalf by a broker or other third party with whom the Holder may elect to deposit any Shares acquired pursuant to the Plan.  The Holder may, at any time, review Data, require any necessary amendments to it or withdraw the consents herein in writing by contacting the Company; however, withdrawing consent may affect the Holder’s ability to participate in the Plan.

		
	13.
	Notices.  Any notice, instruction, authorization, request or demand required hereunder shall be in writing, and shall be delivered either by personal delivery, by facsimile, by certified or registered mail, return receipt requested, or by courier or delivery service, addressed to the Company at the address indicated below on the execution page of this Agreement, and to the Holder at the Holder’s address indicated in the Company’s register of Plan participants, or at such other address and number as a party shall have previously designated by written notice given to the other party in the manner hereinabove set forth.  Notices shall be deemed given when received, if sent by facsimile (confirmation of such receipt by confirmed facsimile transmission being deemed receipt of communications sent by facsimile means); and when delivered and receipted for (or upon the date of attempted delivery where delivery is refused), if hand-delivered, sent by express courier or delivery service, or sent by certified or registered mail, return receipt requested.

		
	14.
	Amendment and Waiver.  This Agreement may be amended from time to time by the Committee in its discretion in any manner that it deems appropriate and that is consistent with the terms of the Plan.  However, no such amendment shall adversely affect in a material manner any right of the Holder without his/her written consent.  Only a written instrument executed and delivered by the party waiving compliance hereof shall make any waiver of the terms or conditions effective.  Any waiver granted by the Company shall be effective only if executed and delivered by a duly authorized executive officer of the Company other than the Holder.  The failure of any party at any time or times to require performance of any provisions hereof shall in no manner affect the right to enforce the same.  No waiver by any party of any term or condition, or the breach of any term or condition contained in this Agreement, in one or more instances, shall be construed as a continuing waiver of any such condition or breach, a waiver of any other condition, or the breach of any other term or condition.

		
	15.
	Governing Law and Severability.  This Agreement shall be governed by the laws of Switzerland without regard to its conflicts of law provisions.  The invalidity of any provision of this Agreement shall not affect any other provision of this Agreement, which shall remain in full force and effect.

		
	16.
	Successors and Assigns.  Subject to the limitations which this Agreement and the Plan impose upon the transferability of the Units, this Agreement shall bind, be enforceable by and inure to the benefit of the Company and its successors and assigns, and to the Holder, his permitted assigns and, upon the Holder’s death, the Holder’s estate and beneficiaries thereof (whether by will or the laws of descent and distribution), executors, administrators, agents, and legal and personal representatives.

		
	17.
	Electronic Delivery and Execution.  The Holder hereby consents and agrees to electronic delivery of any documents that the Company may elect to deliver (including, but not limited to, plan documents, prospectus and prospectus supplements, grant or award notifications and agreements, account statements, annual and quarterly reports, and all other forms of communications) in connection with this and any other Award made or offered under the Plan. The Holder understands that, unless revoked by the Holder by giving written notice to the Company pursuant to the Plan, this consent will be 

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effective for the duration of the Agreement. The Holder also understands that he or she will have the right at any time to request that the Company deliver written copies of any and all materials referred to above. The Holder hereby consents to any and all procedures the Company has established or may establish for an electronic signature system for delivery and acceptance of any such documents that the Company may elect to deliver, and agree that his or her electronic signature is the same as, and will have the same force and effect as, his or her manual signature. The Holder consents and agrees that any such procedures and delivery may be affected by a third party engaged by the Company to provide administrative services related to the Plan.

		
	18.
	Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be an original for all purposes but all of which taken together shall constitute but one and the same instrument.

		
	19.
	Acknowledgements.  The Holder acknowledges and agrees to the following:

		
	(a)
	The Plan is discretionary in nature and the Committee may amend, suspend, or terminate it at any time.

		
	(b)
	 The grant of the Units is voluntary and occasional and does not create any contractual or other right to receive future grants of Units, or benefits in lieu of the Units even if the Units have been granted repeatedly in the past. 

		
	(c)
	The Holder’s participation in the Plan is voluntary.

		
	(d)
	The value of the Units is an extraordinary item of compensation, which is outside the scope of the Holder’s employment contract (if any), except as may otherwise be explicitly provided in the Holder’s employment contract (if any).

		
	(e)
	The Units are not part of normal or expected compensation or salary for any purpose, including, but not limited to, calculating termination, severance, resignation, redundancy, end of service, or similar payments, or bonuses, long-service awards, pension or retirement benefits.

		
	(f)
	The future value of the Shares is unknown and cannot be predicted with certainty.

		
	(g)
	No claim or entitlement to compensation or damages arises from the forfeiture of the award, termination of the Plan, or diminution in value of the Units or Shares and the Holder irrevocably releases the Company and its Affiliates from any such claim that may arise.

		
	(h)
	Nothing in this Agreement or the Plan shall confer upon the Holder any right to continue to be employed by the Company or any Affiliate or shall interfere with or restrict in any way the rights of the Company or the Affiliate, which are hereby expressly reserved, to terminate the employment of the Holder under applicable law.  

		
	(i)
	The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Holder’s participation in the Plan, or the Holder’s acquisition or sale of the underlying Shares.  The Holder is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

		
	(j)
	The Company reserves the right to impose other requirements on participation in the Plan, on the Units and on any Shares acquired under the Plan, to the extent the Company determines 

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it is necessary or advisable in order to comply with local law or to facilitate the administration of the Plan, and to require the Holders to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
		
	(k)
	Even after vesting, of the Units and issuance of related Shares, the Holder may be required to return the benefits of the Award to the Company pursuant to a “clawback” policy instituted by the Company from time to  time that is generally applicable to officers and directors and instituted in accordance with applicable legislation and stock exchange rules, if it is subsequently determined in accordance with that policy that the wrong Applicable Multiplier was used in vesting the Units.

20.    Section 409A.  

		
	(a)
	The delivery of the Holder’s Shares as described in Section 6 shall be made in accordance with such Section, provided that with respect to delivery due to termination of employment for reasons other than death, the delivery at such time can be characterized as a “short-term deferral” for purposes of Section 409A or as otherwise exempt from the provisions of Section 409A, or if any portion of the delivery cannot be so characterized, and the Holder is a “specified employee” under Section 409A, such portion of the delivery shall be delayed until the earlier to occur of the Holder’s death or the date that is six months and one day following the Holder’s termination of employment.  For purposes of this Agreement, the terms “terminates,” “terminated,” “termination,” “termination of employment,” and variations thereof, as used in this Agreement to refer to the Holder’s termination of employment, are intended to mean a termination of employment that constitutes a “separation from service” under Section 409A.

		
	(b)
	This Agreement and the Units provided hereunder are intended to comply with Section 409A to the extent applicable thereto.  Notwithstanding any provision of this Agreement to the contrary, this Agreement shall be interpreted and construed consistent with this intent.  Although the Company and the Committee intend to administer this Agreement so that it will comply with the requirements of Section 409A, to the extent applicable, neither the Company nor the Committee represents or warrants that this Agreement will comply with Section 409A or any other provision of federal, state, local, or non-United States law.  Neither the Company or its Affiliates, nor their respective directors, officers, employees or advisers shall be liable to any Holder (or any other individual claiming a benefit through the Holder) for any tax, interest, or penalties the Holder might owe as a result of participation in the Plan, and the Company and its Affiliates shall have no obligation to indemnify or otherwise protect any Holder from the obligation to pay any taxes pursuant to Section 409A.

[Next page is the signature page.]

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IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer thereunto duly authorized, and the Holder has executed this Agreement, all as of the date first above written.

	
			
	 
	 
	COMPANY:

	 
	 
	 

	 
	 
	WEATHERFORD INTERNATIONAL LTD.

	 
	 
	 

	 
	By:
	 

	 
	 
	Alejandro Cestero

	 
	 
	Vice President, Co-General Counsel
and Corporate Secretary

	
			
	 
	 
	ADDRESS:

	 
	 
	4-6 Rue Jean-François Bartholoni

	 
	 
	Geneva 1204

	 
	 
	Switzerland

	 
	 
	Attn: Corporate Secretary

	
			
	 
	 
	HOLDER:

	 
	 
	 

	 
	 
	 

	 
	 
	Name:

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2014 PU Award Agreement; Absolute TSRvip_ex101.htm

EXHIBIT 10.1

 

SHARE EXCHANGE AGREEMENT

 

By and Among

 

VIP LOYALTY CORP.

 

VIP MEMBERS CORPORATION

 

and the

 

EQUITY-HOLDERS

 

 OF

 

VIP MEMBERS CORPORATION

 

Dated as of June 30, 2012

 

 

  

1

  

 

SHARE EXCHANGE AGREEMENT

 

THIS SHARE EXCHANGE AGREEMENT (this “Agreement”) is entered into as of this 30th day of June, 2012, by and among VIP LOYALTY CORP., a Nevada corporation (“VIP Loyalty”), VIP MEMBERS CORPORATION, a Nevada corporation (“VIP Members”), and the individuals and/entities listed on Exhibit A attached hereto (the “Equity-Holders”), collectively with the VIP Loyalty and VIP Members, the “Parties” and each, a “Party”), upon the following premises:

 

RECITALS:

 

WHEREAS, VIP Members and the Equity-Holders desire to enter into an equity exchange transaction, whereby VIP Members shall become a wholly-owned subsidiary of the VIP Loyalty; and

 

WHEREAS, the Equity-Holders are the holders of One hundred percent (100%) of the issued and outstanding shares of Common Stock and Series A Preferred Stock of VIP Members (the “VIP Members Stock”); and

 

WHEREAS, VIP Loyalty desires to acquire One Hundred percent (100%) of the VIP Members Stock, as follows: (i) Two Hundred Twenty-five Thousand (225,000) newly-issued shares of VIP Loyalty Series A preferred stock, par value $0.00001 per share (the “VIP Loyalty Preferred Stock”), in exchange for Seven Thousand Five Hundred (7,500) shares of VIP Members Series A preferred stock, par value of $0.001 per share (the “VIP Member Preferred Stock”) and (ii) Two Million Seven Hundred Thousand (2,700,000) shares of VIP Loyalty common stock, par value $0.00001 per share (the “VIP Loyalty Common Stock”), in exchange for Two Thousand Two Hundred Fifty (2,250) shares of VIP Member common stock, par value $0.001 per share (the “VIP Member Common Stock”); such transaction being referred to herein as the “Exchange”; and

 

WHEREAS, the Parties intend for this transaction to constitute a tax-free reorganization pursuant to the provisions of the Internal Revenue Code of 1986, as amended.

 

AGREEMENT:

 

NOW THEREFORE, on the stated premises and for and in consideration of the mutual covenants and agreements hereinafter set forth and the mutual benefits to the Parties to be derived herefrom, and intending to be legally bound hereby, it is hereby agreed as follows:

 

  

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ARTICLE I

REPRESENTATIONS, COVENANTS, AND WARRANTIES OF VIP MEMBERS

 

As an inducement to, and to obtain the reliance of the VIP Loyalty, except as set forth in those schedules prepared by VIP Members which are attached and made a part hereto (the “VIP Members Schedules”), VIP Members hereby represents and warrants as of June 30, 2012 (the “Closing Date”) as follows:

 

Section I.1 Organization. VIP Members is a corporation duly organized, validly existing, and in good standing under the laws of the State of Nevada and has the power and is duly authorized under all applicable laws, regulations, ordinances and orders of public authorities to carry on its business in all material respects as it is now being conducted. Set forth in Item I.1 of the VIP Members Schedules are complete and correct copies of the Articles of Incorporation and Bylaws of VIP Members in effect on the date hereof (together, the “VIP Members Charter”). The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, violate any provision of the VIP Members Charter. VIP Members has taken all actions required by law, from its VIP Members Charter, or otherwise to authorize the execution and delivery of this Agreement. VIP Members has full power, authority, and legal right and has taken all action required by law, the VIP Members Charter, and otherwise to consummate the transactions herein contemplated.

 

Section I.2 Capitalization. The capitalization of VIP Members consists of Twenty Thousand (20,000) authorized shares, of which Ten Thousand (10,000) shares are common stock with 2,250 shares issued and outstanding, and of which Ten Thousand (10,000) Shares are Series A preferred stock, with 7,500 shares issued and outstanding. The Equity-Holders own one hundred percent (100%) of the VIP Members Shares.

 

Section I.3 Subsidiaries. VIP Members does not own any subsidiaries.

 

Section I.4 Options or Warrants. There are no existing options, warrants, calls, or commitments of any character relating to the VIP Members Shares.

 

Section I.5 Absence of Certain Changes or Events

 

Since June 1, 2012:

 

(a) there has not been any material adverse change in the business, operations, properties, assets, or condition (financial or otherwise) of VIP Members, including, but limited to, retaining any new employees or hiring any contract personnel with the written consent of the VIP Loyalty or expending any cash on capital purchases, bonuses or other expenses out of the ordinary course of business without prior written consent of the VIP Loyalty;

 

(b) VIP Members has not (i) amended its Articles of Incorporation or By-laws; (ii) declared or made, or agreed to declare or make, any payment of dividends or distributions of any assets of any kind whatsoever to equity-holders or purchased or redeemed, or agreed to purchase or redeem, any of the VIP Members Shares; (iii) made any material change in its method of management, operation or accounting, (iv) entered into any other material transaction other than sales in the ordinary course of its business; or (v) made any increase in or adoption of any profit sharing, bonus, deferred compensation, insurance, pension, retirement, or other employee benefit plan, payment, or arrangement made to, for, or with its managers, officers, directors, or employees;

 

  

3

  

 

(c) VIP Members has not (i) granted or agreed to grant any options, warrants or other rights for its membership interests, bonds or other corporate securities calling for the issuance thereof, (ii) borrowed or agreed to borrow any funds or incurred, or become subject to, any material obligation or liability (absolute or contingent) except as disclosed herein and except liabilities incurred in the ordinary course of business; (iii) sold or transferred, or agreed to sell or transfer, any of its assets, properties, or rights or canceled, or agreed to cancel, any debts or claims; or (iv) issued, delivered, or agreed to issue or deliver any membership interests, bonds or other corporate securities including debentures (whether authorized and unissued or held as treasury stock) except in connection with this Agreement; and

 

(d) There are no material actions, suits, proceedings, or investigations pending or, to the knowledge of VIP Members after reasonable investigation, threatened by or against VIP Members or affecting VIP Members or its properties, at law or in equity, before any court or other governmental agency or instrumentality, domestic or foreign, or before any arbitrator of any kind. VIP Members does not have any knowledge of any material default on its part with respect to any judgment, order, injunction, decree, award, rule, or regulation of any court, arbitrator, or governmental agency or instrumentality or of any circumstances which, after reasonable investigation, would result in the discovery of such a default.

 

Section I.6 Contracts.All contracts, agreements, franchises, license agreements, and other commitments to which VIP Members is a party or by which its properties are bound and which are material to the operations of VIP Members taken as a whole are valid and enforceable by VIP Members in all respects, except as limited by bankruptcy and insolvency laws and by other laws affecting the rights of creditors generally.

 

Section I.7 No Conflict With Other Instruments.The execution of this Agreement and the consummation of the transactions contemplated by this Agreement will not result in the breach of any term or provision of, constitute a default under, or terminate, accelerate or modify the terms of any material indenture, mortgage, deed of trust, or other material agreement, or instrument to which VIP Members is a party or to which any of its assets, properties or operations are subject.

 

Section I.8 Compliance With Laws and Regulations.To the best of its knowledge, VIP Members has complied with all applicable foreign and domestic statutes and regulations of any federal, state, provincial or other governmental entity or agency thereof, except to the extent that noncompliance would not materially and adversely affect the business, operations, properties, assets, or condition of VIP Members or except to the extent that noncompliance would not result in the occurrence of any material liability for VIP Members.

 

  

4

  

 

Section I.9 Approval of Agreement.The board of directors of VIP Members and the Equity-Holders have unanimously authorized the execution and delivery of this Agreement by VIP Members and have approved this Agreement and the transactions contemplated hereby.

 

Section I.10 Valid Obligation.This Agreement and all agreements and other documents executed by VIP Members in connection herewith constitute the valid and binding obligation of VIP Members, enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and subject to the qualification that the availability of equitable remedies is subject to the discretion of the court before which any proceeding therefore may be brought.

 

Section I.11 Information. The information concerning VIP Members set forth in this Agreement and in the VIP Members Schedules is complete and accurate in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact required to make the statements made, in light of the circumstances under which they were made, not misleading.

 

Section I.12 Financial Statements. If required, VIP Members’ financial statements shall be prepared in a timely and proper manner in accordance with Regulation S-X promulgated by the United States Securities and Exchange Commission (the “Commission”).

 

  

5

  

 

ARTICLE II

REPRESENTATIONS, COVENANTS, AND WARRANTIES

OF VIP LOYALTY

 

As an inducement to, and to obtain the reliance of VIP Members and the Equity-Holder, except as set forth in those schedules prepared by VIP Loyalty which are attached and made a part hereto (the “VIP Loyalty Schedules”), VIP Loyalty represents and warrants, as of the Closing Date, as follows:

 

Section II.1 Organization. VIP Loyalty is a corporation duly organized, validly existing, and in good standing under the laws of the State of Nevada and has the corporate power and is duly authorized under all applicable laws, regulations, ordinances, and orders of public authorities to carry on its business in all material respects as it is now being conducted. Set forth in Item II.1 of VIP Loyalty Schedules are complete and correct copies of the Articles of Incorporation and Bylaws of VIP Loyalty as in effect on the Closing Date (together, the “VIP Loyalty Charter”). The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, violate any provision of the VIP Loyalty Charter. VIP Loyalty has taken all action required by law, the VIP Loyalty Charter or otherwise to authorize the execution and delivery of this Agreement, and VIP Loyalty has full power, authority, and legal right and has taken all action required by law, the VIP Loyalty Charter or otherwise to consummate the transactions herein contemplated.

 

Section II.2 Capitalization. VIP Loyalty’s authorized capitalization consists of (a) Five Hundred Million (500,000,000) shares of VIP Loyalty Common Stock, of which Five Million Two Hundred Twenty-five Thousand (5,225,000) shares were issued and outstanding immediately prior to the transaction contemplated by the Exchange and (b) Five Million (5,000,000) shares of Series A preferred stock (“VIP Loyalty Preferred Stock”), of which none were issued or outstanding immediately preceding the consummation of the Exchange.

 

Section II.3 Subsidiaries. VIP Loyalty has no subsidiaries.

 

Section II.4 Options or Warrants. There are no existing options, warrants, calls, or other commitments of any character relating to the authorized and unissued shares of the VIP Loyalty Common Stock, except as in connection with the transactions contemplated in connection with the Exchange.

 

Section II.5 Absence of Certain Changes or Events. 

 

Since June 1, 2012:

 

(a) VIP Loyalty has not (i) amended the VIP Loyalty Charter except as pursuant to the transactions in connection with this Agreement; (ii) declared or made, or agreed to declare or make any payment of dividends or distributions of any assets of any kind whatsoever to the Equity-Holder or purchased or redeemed, or agreed to purchase or redeem, any of its capital stock; (iii) made any material change in its method of management, operation or accounting; (iv) entered into any transactions or agreements other than in connection with this Agreement and the transactions contemplated herein; or (v) made any increase in or adoption of any profit sharing, bonus, deferred compensation, insurance, pension, retirement, or other employee benefit plan, payment, or arrangement, made to, for or with its officers, directors, or employees; and

 

(b) VIP Loyalty has not (i) granted or agreed to grant any options, warrants, or other rights for its stock, bonds, or other corporate securities calling for the issuance thereof; (ii) borrowed or agreed to borrow any funds or incurred, or become subject to, any material obligation or liability (absolute or contingent) except liabilities incurred in the ordinary course of business; (iii) sold or transferred, or agreed to sell or transfer, any of its assets, properties, or rights, or canceled, or agreed to cancel, any debts or claims; or (iv) issued, delivered or agreed to issue or deliver, any stock, bonds or other corporate securities including debentures (whether authorized and unissued or held as treasury stock..

 

  

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Section II.6 Litigation and Proceedings. There are no actions, suits, proceedings or investigations pending or threatened by or against VIP Loyalty, or its subsidiaries, or affecting VIP Loyalty or its properties, at law or in equity, before any court or other governmental agency or instrumentality, domestic or foreign, or before any arbitrator of any kind. VIP Loyalty has no knowledge of any default on its part with respect to any judgment, order, writ, injunction, decree, award, rule or regulation of any court, arbitrator, or governmental agency or instrumentality or any circumstance which after reasonable investigation would result in the discovery of such default.

 

Section II.7 No Conflict With Other Instruments. The execution of this Agreement and the consummation of the transactions contemplated by this Agreement will not result in the breach of any term or provision of, constitute a default under, or terminate, accelerate or modify the terms of, any indenture, mortgage, deed of trust, or other material agreement or instrument to which VIP Loyalty is a party or to which any of its assets, properties or operations are subject.

 

Section II.8 Compliance With Laws and Regulations. VIP Loyalty has complied with all applicable statutes and regulations of any federal, state, or other applicable governmental entity or agency thereof. This compliance includes, but is not limited to, the filing of all reports to date with federal and state securities authorities.

 

Section II.9 Approval of Agreement. The board of directors of VIP Loyalty have authorized the execution and delivery of this Agreement by VIP Loyalty and has approved this Agreement and the transactions contemplated hereby.

 

Section II.10 Valid Obligation. This Agreement and all agreements and other documents executed by VIP Loyalty in connection herewith constitute the valid and binding obligation of VIP Loyalty, enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and subject to the qualification that the availability of equitable remedies is subject to the discretion of the court before which any proceeding therefore may be brought.

 

Section II.11 Information. The information concerning VIP Loyalty set forth in this Agreement and the VIP Loyalty Schedules is complete and accurate in all material respects and does not contain any untrue statements of a material fact or omit to state a material fact required to make the statements made, in light of the circumstances under which they were made, not misleading.

 

  

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  ARTICLE III

  PLAN OF EXCHANGE

 

Section III.1 The Exchange. On the terms and subject to the conditions set forth in this Agreement, on the Closing Date, the Equity-Holders, by executing this Agreement, shall assign, transfer and deliver to VIP Loyalty, free and clear of all liens, pledges, encumbrances, charges, restrictions or known claims of any kind, nature, or description, the VIP Members Shares, constituting all of the VIP Members Common Stock and VIP Members Series A Preferred Stock, including all of the voting power of VIP Members. In exchange for the transfer of the shares of VIP Members Common Stock by the Equity-Holders who hold the shares of VIP Members Common Stock, VIP Loyalty shall issue certificates evidencing an aggregate amount of Two Million Seven Hundred Thousand (2,700,000) shares of VIP Loyalty Common Stock to the Equity-Holders. In exchange for the transfer of the shares of VIP Members Series A Preferred Stock by the Equity-Holder who holds the shares of VIP Members Series A Preferred Stock, VIP Loyalty shall issue a certificate evidencing Two Hundred Twenty-five Thousand (225,000) shares of the VIP Loyalty Series A Preferred Stock to the Equity-Holder Upon consummation of the transaction contemplated herein, all of the VIP Members Shares shall be held by VIP Loyalty.

 

Section III.2 Closing Events. On the Closing Date, VIP Loyalty, VIP Members and the Equity-Holders shall execute, acknowledge, and deliver (or shall ensure to be executed, acknowledged, and delivered), any and all certificates, opinions, financial statements, schedules, agreements, resolutions, rulings or other instruments required by this Agreement to be so delivered on or prior to the Closing Date, together with such other items as may be reasonably requested by the Parties hereto and their respective legal counsel in order to effectuate or evidence the transactions contemplated hereby..

 

Section III.3 Plan of Exchange. The Parties to this Agreement agree that this Agreement shall constitute a plan of exchange pursuant to the laws of the State of Nevada..

 

Section III.4 Termination. This Agreement may be terminated by either of VIP Members or VIP Loyalty if the other Party has failed to meet the conditions precedent set forth in Articles V and VI herein. If this Agreement is terminated pursuant to this Section III.4, this Agreement shall be of no further force or effect, and no obligation, right or liability shall arise hereunder, except as set forth herein below.

 

  

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ARTICLE IV

ARTICLE V SPECIAL COVENANTS

 

Section IV.1 Access to Properties and Records. VIP Loyalty and VIP Members will each afford to the officers and authorized representatives of the other full access to the properties, books and records of VIP Loyalty or VIP Members, as the case may be, in order that each may have a full opportunity to make such reasonable investigation as it shall desire to make of the affairs of the other, and each will furnish the other with such additional financial and operating data and other information as to the business and properties of VIP Loyalty or VIP Members, as the case may be, as the other shall from time to time reasonably request.

 

Section IV.2 Delivery of Books and Records. On or prior to Closing Date, VIP Members shall deliver to VIP Loyalty copies of the corporate minute books, books of account, contracts, records, and all other books or documents of VIP Members now in the possession of VIP Members or its representatives as requested VIP Loyalty.

 

Section IV.3 Third Party Consents and Certificates. VIP Loyalty and VIP Members hereby agree to cooperate with each other in order to obtain any required third-party consents to this Agreement and the transactions herein contemplated.

 

Section IV.4 The Acquisition of VIP Loyalty Common  Stock and VIP Loyalty Series A Preferred Stock. VIP Loyalty and VIP Members acknowledge and agree that the consummation of this Agreement including the issuance of shares of VIP Loyalty Common Stock and VIP Loyalty Series A Preferred Stock in exchange for the VIP Members Shares as contemplated hereby constitutes the offer and sale of securities under the Securities Act of 1933 and applicable state statutes. VIP Loyalty and VIP Members agree that such transactions shall be consummated in reliance on exemptions from the registration and prospectus delivery requirements of such statutes, which depend, among other items, on the circumstances under which such securities are acquired.

 

(a) In order to provide documentation for reliance upon the exemptions from the registration and prospectus delivery requirements for such transactions, the Equity-Holders shall execute and deliver to VIP Loyalty the Investment Representation Letter in substantially the form of Exhibit C attached hereto.

 

(b) In connection with the transactions contemplated by this Agreement, VIP Loyalty and VIP Members shall each file, with the assistance of the other and their respective legal counsel, such notices, applications, reports, or other instruments as may be deemed by them to be necessary or appropriate in an effort to document reliance on such exemptions, and the appropriate regulatory authority in the States where the Equity-Holders is domiciled or are otherwise required to file such notices, applications, reports or other instruments unless an exemption requiring no filing is available in such jurisdictions, all to the extent and in the manner as may be deemed by such Parties to be appropriate.

 

  

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(c) In order to more fully document reliance on the exemptions as provided herein, VIP Members, the Equity-Holders and VIP Loyalty shall execute and deliver to the other, at or prior to the Closing Date, such further letters of representation, acknowledgment, suitability, or the like as VIP Members, the Equity-Holders or VIP Loyalty and their respective counsel may reasonably request in connection with reliance on exemptions from registration under such securities laws.

 

(d) The Equity-Holders acknowledge that the basis for relying on exemptions from registration or qualifications are factual, depending on the conduct of the various Parties.

 

  ARTICLE V

  CONDITIONS PRECEDENT TO OBLIGATIONS OF THE VIP LOYALTY

 

The obligations of VIP Loyalty under this Agreement are subject to the satisfaction, on or before the Closing Date, of the following conditions:

 

Section V.1 Accuracy of Representations and Performance of Covenants. The representations and warranties made by VIP Members and the Equity-Holder in this Agreement were true when made and shall be true at the Closing Date with the same force and effect as if such representations and warranties were made at and as of the Closing Date (except for changes therein permitted by this Agreement). VIP Members shall have performed or complied with all covenants and conditions required by this Agreement to be performed or complied with by VIP Members prior to or on the Closing Date. VIP Loyalty shall be furnished with a certificate, signed by a duly authorized executive officer of VIP Members and dated the Closing Date, to the foregoing effect.

 

Section V.2 Approval by Equity-Holders. The Exchange shall have been approved, and appropriate transfer documents effecting the transfer of the VIP Members Shares delivered in accordance with Section III.1, by the holders of not less than one hundred percent (100%) of the issued and outstanding shares of VIP Members Common Stock and VIP Members Series A Preferred Stock, including all voting power, of VIP Members.

 

Section V.3 No Governmental Prohibition. No order, statute, rule, regulation, executive order, injunction, stay, decree, judgment or restraining order shall have been enacted, entered, promulgated or enforced by any court or governmental or regulatory authority or instrumentality which prohibits the consummation of the transactions contemplated hereby.

 

Section V.4 Consents. All consents, approvals, waivers or amendments pursuant to all contracts, licenses, permits, trademarks and other intangibles in connection with the transactions contemplated herein, or for the continued operation of VIP Members after the Closing Date on the basis as presently operated shall have been obtained.

 

  

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ARTICLE VI

CONDITIONS PRECEDENT TO OBLIGATIONS OF VIP MEMBERS AND THE EQUITY-HOLDERS

 

The obligations of VIP Members and the Equity-Holders under this Agreement are subject to the satisfaction, at or before the Closing Date, of the following conditions:

 

Section VI.1 Accuracy of Representations and Performance of Covenants. The representations and warranties made by VIP Loyalty in this Agreement were true when made and shall be true as of the Closing Date (except for changes therein permitted by this Agreement) with the same force and effect as if such representations and warranties were made at and as of the Closing Date. VIP Loyalty shall have performed and complied with all covenants and conditions required by this Agreement to be performed or complied with by VIP Loyalty. Prior to or on the Closing Date, VIP Loyalty shall furnish to VIP Members a certificate signed by a duly authorized officer of VIP Loyalty and dated as of the Closing Date, to the foregoing effect.

 

Section VI.2 No Governmental Prohibition. No order, statute, rule, regulation, executive order, injunction, stay, decree, judgment or restraining order shall have been enacted, entered, promulgated or enforced by any court or governmental or regulatory authority or instrumentality which prohibits the consummation of the transactions contemplated hereby.

 

Section VI.3 Consents. All consents, approvals, waivers or amendments pursuant to all contracts, licenses, permits, trademarks and other intangibles in connection with the transactions contemplated herein, or for the continued operation of VIP Loyalty after the Closing Date on the basis as presently operated shall have been obtained.

 

ARTICLE VII

OTHER PROVISIONS

 

As of the Closing Date, the existing officers and directors of VIP Loyalty shall remain in their present positions.

  

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ARTICLE VIII

MISCELLANEOUS

 

Section VIII.1 Governing Law; Jurisdiction; Venue. This Agreement shall be governed by, enforced, and construed under and in accordance with the laws of the United States of America and, with respect to the matters of State law, with the laws of the State of Texas. Venue for all matters shall be in Harris County, Texas, without giving effect to principles of conflicts of law thereunder. By execution and delivery of this Agreement, each Party hereto irrevocably submits to and accepts, with respect to any such action or proceeding, generally and unconditionally, the jurisdiction of the aforesaid court, and irrevocably waives any and all rights such Party may now or hereafter have to object to such jurisdiction.

 

Section VIII.2 Notices. Any notice or other communications required or permitted hereunder shall be in writing and shall be sufficiently given if personally delivered to it or sent by telecopy, overnight courier or registered mail or certified mail, postage prepaid, addressed as follows:

 

	
If to VIP Loyalty, to:      

	
VIP Loyalty Corp. 

123 No. Post Oak Lane

Suite 440

Houston, TX 77024

Attn: E. Sean Connolly, President

 

	
    If to VIP Members, to:    

	
VIP Members Corporation. 

123 No. Post Oak Lane

Suite 440

Houston, TX 77024

Timothy J. Connolly

 

	
If to the Equity-Holders:

	
VIP Members Corporation.

123 No. Post Oak Lane

Suite 440

Houston, TX 77024

                                   

or such other addresses as shall be furnished in writing by any Party in the manner for giving notices hereunder, and any such notice or communication shall be deemed to have been given (i) upon receipt, if personally delivered, (ii) on the day after dispatch, if sent by overnight courier and (iii) upon dispatch, if transmitted by facsimile or telecopy and receipt is confirmed by telephone.

 

  

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Section VIII.3 Attorney’s Fees.In the event that any Party institutes any action or suit to enforce this Agreement or to secure relief from any default hereunder or breach hereof, the prevailing Party shall be reimbursed by the losing Party for all costs, including reasonable attorney’s fees, incurred in connection therewith and in enforcing or collecting any judgment rendered therein.

 

Section VIII.4 Confidentiality. Each Party hereto agrees with the others that, unless and until the transactions contemplated by this Agreement have been consummated, it and its representatives will hold in strict confidence all data and information obtained with respect to another Party or any subsidiary thereof from any representative, officer, director or employee, or from any books or records or from personal inspection, of such other Party, and shall not use such data or information or disclose the same to others, except (i) to the extent such data or information is published, is a matter of public knowledge, or is required by law to be published; or (ii) to the extent that such data or information must be used or disclosed in order to consummate the transactions contemplated by this Agreement. In the event of the termination of this Agreement, each Party shall return to the other Parties all documents and other materials obtained by it or on its behalf and shall destroy all copies, digests, work papers, abstracts or other materials relating thereto, and each Party will continue to comply with the confidentiality provisions set forth herein.

 

Section VIII.5 Public Announcements and Filings.Unless required by applicable law or regulatory authority, none of the Parties will issue any report, statement or press release to the general public, to the general trade or trade press, or to any third-party (other than its advisors and representatives in connection with the transactions contemplated hereby) or file any document, relating to this Agreement and the transactions contemplated hereby, except as may be mutually agreed by the Parties. Copies of any such filings, public announcements or disclosures, including any announcements or disclosures mandated by law or regulatory authorities, shall be delivered to each Party at least one (1) business day prior to the release thereof.

 

Section VIII.6 Recitals. The Recitals to this Agreement are true and correct and are incorporated herein, in their entirety, by this reference.

 

  

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Section VIII.7 Expenses. Subject to Section VIII.3 above, whether or not the Exchange is consummated, each of VIP Loyalty, the Equity-Holders and VIP Members will bear its own respective expenses, including legal, accounting and professional fees, incurred in connection with the Exchange or any of the other transactions contemplated hereby.

 

Section VIII.8 Survival; Termination. The representations, warranties, and covenants of the respective Parties shall survive the Closing Date and the consummation of the transactions herein contemplated for a period of two (2) years.

 

Section VIII.9 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which taken together shall be but a single instrument.

 

Section VIII.10 Amendment or Waiver.Every right and remedy provided herein shall be cumulative with every other right and remedy, whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver by any Party of the performance of any obligation by the other shall be construed as a waiver of the same or any other default then, theretofore, or thereafter occurring or existing. This Agreement may by amended by a writing signed by all Parties hereto, with respect to any of the terms contained herein, and any term or condition of this Agreement may be waived or the time for performance may be extended by a writing signed by the Party or Parties for whose benefit the provision is intended.

 

Section VIII.11 Best Efforts. Subject to the terms and conditions herein provided, each Party shall use its best efforts to perform or fulfill all conditions and obligations to be performed or fulfilled by it under this Agreement so that the transactions contemplated hereby shall be consummated as soon as practicable. Each Party also agrees that it shall use its best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and regulations to consummate and make effective this Agreement and the transactions contemplated herein.

 

Section VIII.12 Entire Agreement. This Agreement represents the entire agreement between the Parties relating to the subject matter thereof and supersedes all prior agreements, understandings and negotiations, written or oral, with respect to such subject matter.

 

[SIGNATURES ON FOLLOWING PAGE]

 

  

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IN WITNESS WHEREOF, the corporate Parties hereto have caused this Share Exchange Agreement to be executed by their respective officers, hereunto duly authorized, as of the date first-above written.

 

	 	VIP LOYALTY CORP.	 
	 	 	 	 
	
 

	
By: 

	/s/ E. Sean Connolly 	 
	 	Name:	E. Sean Connolly	 
	 	Title:	President	 
	 	 	 	 
	 	VIP MEMBERS CORPORATION	 
	 	 	 	 
	 	By: 	/s/ Timothy J. Connolly	 
	 	Name:	Timothy J. Connolly	 
	 	Title: 	President	 

  

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EXHIBIT A

 

VIP MEMBERS CORPORATION

 

EQUITY-HOLDERS

 

The undersigned Equity-Holders of VIP Members hereby agree to participate in the Exchange on the terms set forth above. The undersigned hereby represent and affirm that he has read each of the representations and warranties of VIP Members set out in Article I hereof and that, to the best of his knowledge, all of such representations and warranties are true and correct.

 

	 	EQUITY-HOLDERS	 
	Series A Preferred Stock:	 	 	 
	 	 	 	 
	
7,500 shares 

	
 

	/s/ Timothy C. Connolly	 
	 	 	 Timothy J. Connolly	 
	 	 	 	 
	Common Stock:	 	 	 
	 	 	 
	375 shares	Fortenberry Services, Inc.	 
	 	 	 	 
	 	By: 	/s/ Craig Crawford 	 
	 	Name:	Craig Crawford, President	 
	 	 	 	 
	750 shares	TRAC Investments, Inc.	 
	 	 	 	 
	 	 	/s/ James E. Shipley	 
	 	 	James E. Shipley	 
	 	 	President	 
	 	 	 	 
	750 shares 	 	/s/ Michael O. Sutton	 
	 	 	Michael O. Sutton	 
	 	 	 	 
	375 shares	 	/s/ E. Sean Connolly	 
	 	:	E Sean Connolly	 

 

 

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