Document:

PLAN AND AGREEMENT OF TRIANGULAR MERGER

EXHIBIT 10.1 

 

 

GAMING EQUIPMENT PURCHASE AGREEMENT

THIS AGREEMENT is made this 4th day of May, 2016, by and between BRAVO MULTINATIONAL INCORPORATED, a Delaware corporation (the “Bravo”), and CENTRO DE ENTRETENIMIENTO Y DIVERSION MOMBACHO S.A., a Nicaraguan corporation (the “Seller”).

WHEREAS, the Seller is the owner of certain gaming equipment described as slot machines, video and video poker machines, more fully described in Attachment A attached hereto (the “Gaming Equipment”); and

WHEREAS, Bravo is currently subject to the reporting requirements of section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); and

WHEREAS, the shares of the common stock of Bravo are currently quoted for sale on the OTCPK operated by OTC Markets Group, Inc.; and

WHEREAS, the Seller desries to sell the Gaming Equipment to the Bravo upon the terms hereinafter set set forth; and

WHEREAS, all monetary amounts specified herein are in United States dollars;

NOW, THEREFORE, in consideration of the foregoing and the following mutual covenants and agreements, the parties agree as follows:

1.

Sale and Purchase of the Gaming Equipment.  The Bravo agrees to purchase and the Seller agrees to sell the Gaming Equipment.  At the time of sale, each item of the Gaming Equipment shall be in good working order and contain a serial number which upon placement into a gaming facility will be registered with the gaming authorities of the government of Nicaragua.

2.

Terms of the Sale and Purchase.

(a)

500 nationalized (duties paid) gaming machines will be purchased at a purchase price of $4,500.00 per machine.  The machines shall be purchased in batches of no less than 100 machines per transaction.  The 500 machine purchase will be completed on or before December 31, 2017.

(b)

The machines in each batch transaction will be paid for with 50% of the total batch purchase price of the transaction paid in shares of the common stock of Bravo, restricted in the transfer pursuant to the Securities Act of 1933, as amended (the “Securities Act”) and the balance of the purchase price shall be financed by the Seller at a rate of 3.5% interest per annum, and re-paid in monthly instalments starting on the 30th day after the original closing day and continue on that same date of each month from that point on.  Each instalment payment shall be equal to $2,250.00 times the total number of machines that the Bravo has re-sold during the preceding 30 day period to a third party buyer, plus accrued interest for the same 30 day period.

(c)

The initial purchase shall be for 150 machines and will be paid with 12,500,000 shares of common stock of Bravo and the seller will hold financing for the balance of $337,500.00 at 3.5% per annum interest.

(d)

For all subsequent batch transaction purchases, the amount of shares of the common stock of Bravo shall be based on a share price calculation divided into 50% of the total transaction batch purchase price.  This share “price calculation” shall be derived by, calculating the average closing share price of the previous 30 trading days up to two days prior to a transaction closing date minus a 20% discount. If the “price calculation” is greater than the final trading day closing price minus 20%, than the lessor of the prices of shall be used for the “price calculation”.

3.

Services by the Seller.  The Seller agrees to provide management services, machine location placement services and government gaming licensing for all of the Gaming Equipment purchased through this Agreement.  The existing license of the Seller with respect to the Gaming Equipment has an expiry date of March 20, 2033.

1

 

4.

Condition Precedent.  Notwithstanding anything herein contained to the contrary, before any liability attaches to any party, this Agreement shall be subject to the final approval of the board of directors of Bravo and the Seller.

5.

Sales Leads.  As part of this Agreement, the Seller agrees to provide the Bravo with sales leads for the purpose of re-selling the Gaming Equipment to third party purchasers.

6.

Closing.  The closing of this Agreement (the “Closing”) shall be on May, 6, 2016, subject to acceleration or postponement from time to time as the parties hereto may mutually agree. The Closing shall be at time and place selected by the parties. At the time set for closing the seller shall provide the serial numbers for the batch of gaming equipment being purchased and the purchaser shall provide a copy of the share issuance resolution which has been provided to its transfer agent along with irrevocable direction giving the transfer agent instructions to issue the shares as instructed in the issuance resolution.

7.

Restricted Shares.  With respect to the shares of Bravo common stock to be received hereunder, the Seller acknowledges as follows:

(a)

The Seller, or its shareholders or assignees, as described hereinafter, as required by the laws of Nicaragua (collectively, the “seller” herein) has received information provided to it in writing by Bravo, or information from books and records of Bravo, as specified below.  The Seller understands that all documents, records and books pertaining to this investment have been made available for inspection by the Seller, its attorney and/or its accountant and/or its “Purchaser Representative” as defined in Regulation D promulgated under the Securities Act, and that the books and records of Bravo will be available, upon reasonable notice, for inspection by the Seller during reasonable business hours at Bravo’s principal place of business.  The Seller and/or its advisers have had a reasonable opportunity to ask questions of and receive answers from Bravo, or a person or persons acting on its behalf, concerning the shares of Bravo common stock, and all such questions have been answered to the full satisfaction of the Seller.  No oral representations have been made and, to the extent oral information has been furnished to the Seller or its advisers in connection with the shares of Bravo common stock, such information was consistent with all written information furnished.

(b)

The Seller (i) has adequate means of providing for its current needs and possible personal contingencies, (ii) has no need for liquidity in this investment, (iii) is able to bear the substantial economic risks of an investment in the shares of Bravo common stock for an indefinite period, and (iv) at the present time, could afford a complete loss of such investment.

(c)

The Seller recognizes that Bravo has a limited financial and operating history and no history of profitable operations, and that the shares of Bravo common stock as an investment involve special risks, including those disclosed to the Seller by Bravo.

(d)

The Seller understands that the shares of Bravo common stock have not been registered under the Securities Act or the securities laws of any state, in reliance upon an exemption therefrom for non-public offerings.  The Seller understands that the shares of Bravo common stock will be held until they are subsequently registered, or an exemption from such registration is available.  The Seller further understands the shares will not become free trading prior to six months (Rule 144) from the closing of this transaction and each subsequent batch purchase closing date.

(e)

The shares of the Bravo common stock are being purchased solely for its own account for investment, however the shares of the Bravo common stock, as required by the laws of Nicaragua may be held in the names of shareholders of the Seller or its assignees subject to the same restrictions as are imposed upon the Seller. The Seller or its advisers have such knowledge and experience in financial, tax, and business matters to enable him to utilize the information, made available to him in connection with the shares of Bravo common stock of the shares of Bravo common stock to evaluate the merits and risks of the prospective investment and to make an informed investment decision with respect thereto.

(f)

The Seller realizes that it may not be able to sell or dispose of its shares, as there may be no public market.  In addition, the Seller understands that its right to transfer the shares of Bravo common stock will be subject to restrictions against transfer unless the transfer is not in violation of the Securities Act of (144-Restricted shares), and the securities laws of any state. The Seller also acknowledges that it shall be responsible for compliance with all conditions on transfer imposed by the Securities Act, or the securities law of any state and for any expenses incurred in connection with such a proposed transfer.

 

 

 

2

 

 

 

(g)

The Seller is authorized and otherwise duly qualified to purchase and hold the shares of Bravo common stock, such entity has its principal place of business as set forth herein, and such entity has not been formed for the specific purpose of acquiring the shares of Bravo common stock.

(h)

All information which the Seller has provided to Bravo concerning its financial position, and its knowledge of financial and business matters, and the knowledge of financial and business matters of the person making the investment decision on behalf of such entity, is correct and complete as of the date set forth herein.

(i)

Pursuant to Regulation D under the Securities Act, the Seller understands and agrees that the following restrictions and limitations are applicable to its purchase, resales, hypothecations or other transfers of the shares of Bravo common stock:

(i)

The Seller or its shareholders or assignees agree that the shares of Bravo common stock shall not be sold, pledged, hypothecated or otherwise transferred unless the shares of Bravo common stock are registered under the Securities Act, and the securities laws of any state, or are exempt therefrom;

(ii)

A legend in substantially the following form has been or will be placed on any certificate(s) or other document(s) evidencing the shares of Bravo common stock:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH SHARES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT.

(iii)

Stop transfer instructions to the transfer agent of the shares of Bravo common stock have been or will be placed with respect to the shares of Bravo common stock so as to restrict the resale, pledge, hypothecation or other transfer thereof, subject to the further items hereof, including the provisions of the legend set forth in subparagraph (ii) above; and such stop transfer instructions shall be removed  six months from the date of closing of this and all subsequent transactions, as long as all requirements of Securities Act are met.

(iv)

The legend and stop transfer instructions described in subparagraphs (ii) and (iii) above will be placed with respect to any new certificate(s) or other document(s) issued upon presentment by the Seller of certificate(s) or other document(s) for transfer; and

(v)

The Seller acknowledges that it will be responsible for compliance with all conditions on transfer imposed by any federal or state securities statute and securities law administrator.

(j)

The Seller understands that neither the Securities and Exchange Commission nor the securities commission of any state has made any finding or determination relating to the fairness for public investment in the shares of Bravo common stock and that the Securities and Exchange Commission as well as the securities commission of any state will not recommend or endorse any offering of securities.

(k)

The Seller understands that:

(i)

No assurances are or have been made regarding any economic advantages (including tax) which may inure to the benefit of the Seller; and

(ii)

No assurances are or have been made concerning the distribution of profits to Bravo’s investors.

3

 

(l)

The Seller acknowledges and is aware that it never has been represented, guaranteed, or warranted to it by Bravo, its directors, officers, agents or employees, or any other person, expressly or by implication, as to any of the following:

(i)

The approximate or exact length of time that it will be required to remain as an owner of its shares of Bravo common stock;

(ii)

The percentage of profit and/or amount of or type of consideration, profit or loss to be realized, if any, as a result of this investment; or

(iii)

That the limited past performance or experience on the part of Bravo, or any re projections will in any way indicate the predictable results of the ownership of the shares of Bravo common stock or of the overall financial performance of Bravo.

(m)

The Seller acknowledges that Bravo has made available to it or other personal advisers the opportunity to obtain additional information to verify the accuracy of the information furnished to it and to evaluate the merits and risks of this investment.

8.

Modification to this Agreement.  The parties recognize that it may be necessary to modify the terms of this Agreement, in which event all of the parties agree to make any changes which may be necessary to carry out the intent of this Agreement.

9.

Cooperation.  The parties hereto will each cooperate with the other, at the other’s request and expense, in furnishing information, testimony, and other assistance in connection with any actions, proceedings, arrangements, disputes with other persons or governmental inquiries or investigations involving the parties hereto or the transactions contemplated hereby.

10.

Further Conveyances and Assurances.  After the Closing, the parties each, will, without further cost or expense to, or consideration of any nature from the other, execute and deliver, or cause to be executed and delivered, to the other, such additional documentation and instruments of transfer and conveyance, and will take such other and further actions, as the other may reasonably request as more completely to consummate the transactions contemplated hereby.

11.

Documents.  All documents reflecting any actions taken, received or delivered by the parties hereto shall be reasonably satisfactory in form and substance to each of the parties hereto and their counsel.

12.

No Assignment.  This Agreement shall not be assignable by any party without the prior written consent of the other parties, which consent shall not be unreasonably withheld by either party.

13.

Brokerage.  The parties hereto agree to indemnify and hold harmless each other against, and in respect of, any claim for brokerage or other commissions relative to this Agreement, or the transactions contemplated hereby, based in any way on agreements, arrangements, understandings or contracts made by either party with a third party or parties whatsoever.

14.

Mediation and Arbitration.  All disputes arising or related to this Agreement must exclusively be resolved first by mediation with a mediator selected by the parties, with such mediation to be held in Wilmington, Delaware.  If such mediation fails, then any such dispute shall be resolved by binding arbitration under the Commercial Arbitration Rules of the American Arbitration Association in effect at the time the arbitration proceeding commences, except that (a) Delaware law and the Federal Arbitration Act must govern construction and effect, (b) the locale of any arbitration must be in Wilmington, Delaware, and (c) the arbitrator must with the award provide written findings of fact and conclusions of law.  Any party may seek from a court of competent jurisdiction any provisional remedy that may be necessary to protect its rights or assets pending the selection of the arbitrator or the arbitrator’s determination of the merits of the controversy.  The exercise of such arbitration rights by any party will not preclude the exercise of any self-help remedies (including without limitation, setoff rights) or the exercise of any non-judicial foreclosure rights.  An arbitration award may be entered in any court having jurisdiction.

15.

Attorneys’ Fees.  In the event that it should become necessary for any party entitled hereunder to bring suit against any other party to this Agreement for a breach of this Agreement, the parties hereby covenant and agree that the party 

4

 

 who is found to be in breach of this Agreement by final judgment of a court of competent jurisdiction shall also be liable for all reasonable attorneys’ fees and costs of court incurred by the other parties.  Provided, however, in the event that there has been no breach of this Agreement, whether or not the transactions contemplated hereby are consummated, each party shall bear its own costs and expenses (including any fees or disbursements of its counsel, accountants, brokers, investment bankers, and finder’s fees).

16.

Benefit.  All the terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto, and their respective heirs, executors, administrators, personal representatives, successors and permitted assigns.

17.

Notices.  All notices, requests, demands, and other communications hereunder shall be in writing and delivered personally or sent by registered or certified United States mail, return receipt requested with postage prepaid, or by telecopy or e-mail, if to the Purchaser and Bravo, addressed to Mr. Paul Parliament at 590 York, Unit 3, Niagara On The Lake, Ontario, CANADA L0S 1J0, telephone (716) 803-0621, and e-mail paul@bravomultinational.com; and if to the Seller, addressed to Mr. Julios Kosta at 30 West Beaver Creek Rd., Unit #105 Richmond Hill, Ontario , Canada L4B 3K1 or kostajul@rogers.com.  Any party hereto may change its address upon 10 days’ written notice to any other party hereto.

18.

Construction.  Words of any gender used in this Agreement shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise.

19.

Waiver.  No course of dealing on the part of any party hereto or its agents, or any failure or delay by any such party with respect to exercising any right, power or privilege of such party under this Agreement or any instrument referred to herein shall operate as a waiver thereof, and any single or partial exercise of any such right, power or privilege shall not preclude any later exercise thereof or any exercise of any other right, power or privilege hereunder or thereunder.

20.

Cumulative Rights.  The rights and remedies of any party under this Agreement and the instruments executed or to be executed in connection herewith, or any of them, shall be cumulative and the exercise or partial exercise of any such right or remedy shall not preclude the exercise of any other right or remedy.

21.

Invalidity.  In the event any one or more of the provisions contained in this Agreement or in any instrument referred to herein or executed in connection herewith shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect the other provisions of this Agreement or any such other instrument.

22.

Headings.  The headings used in this Agreement are for convenience and reference only and in no way define, limit, amplify or describe the scope or intent of this Agreement, and do not affect or constitute a part of this Agreement.

23.

Excusable Delay.  The parties shall not be obligated to perform and shall not be deemed to be in default hereunder, if the performance of a non-monetary obligation required hereunder is prevented by the occurrence of any of the following, other than as the result of the financial inability of the party obligated to perform: acts of God, strikes, lock-outs, other industrial disturbances, acts of a public enemy, war or war-like action (whether actual, impending or expected and whether de jure or de facto), acts of terrorists, arrest or other restraint of government (civil or military), blockades, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, storms, floods, washouts, sink holes, civil disturbances, explosions, breakage or accident to equipment or machinery, confiscation or seizure or permit licensing cancellation by any government or public authority, nuclear reaction or radiation, radioactive contamination or other causes, whether of the kind herein enumerated or otherwise, that are not reasonably within the control of the party claiming the right to delay performance on account of such occurrence.

24.

No Third-Party Beneficiary.  Any agreement to pay an amount and any assumption of liability contained in this Agreement, express or implied, shall be only for the benefit of the undersigned parties and their respective successors and assigns (as herein expressly permitted), and such agreements and assumptions shall not inure to the benefit of the obligees or any other party, whomsoever, it being the intention of the parties hereto that no one shall be or be deemed to be a third-party beneficiary of this Agreement.

5

25.

Time of the Essence.  Time is of the essence of this Agreement.

26.

Incorporation by Reference.  The Attachments to this Agreement referred to or included herein constitute integral parts to this Agreement and are incorporated into this Agreement by this reference.

27.

Press Releases and Public Announcements.  No party shall issue any press release or make any public announcement relating to the subject matter of this Agreement prior to the Closing without the prior written approval of the other parties; provided, however, that any party may make any public disclosure it believes in good faith is required by applicable law or any listing or trading agreement concerning its publicly-traded securities (in which case the disclosing party will use its efforts to advise the other parties prior to making the disclosure).

28.

Multiple Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  A facsimile transmission or PDF copy of this signed Agreement shall be legal and binding on all parties hereto.

29.

Controlling Agreement.  In the event of any conflict between the terms of this Agreement or any other agreements or exhibits referred to herein, the terms of this Agreement shall control.

30.

Law Governing; Jurisdiction.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to any conflicts of laws provisions thereof.  Each party hereby irrevocably submits to the personal jurisdiction of the United States District Court for the District of Delaware, as well as of the Courts of the State of Delaware in Kent County, Delaware over any suit, action or proceeding arising out of or relating to this Agreement.  Each party hereby irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such mediation, arbitration, suit, action or proceeding brought in any such county and any claim that any such mediation, arbitration, suit, action or proceeding brought in such county has been brought in an inconvenient forum.

31.

Entire Agreement.  This instrument and the attachments hereto contain the entire understanding of the parties and may not be changed orally, but only by an instrument in writing signed by the party against whom enforcement of any waiver, change, modification, extension, or discharge is sought.

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

BRAVO MULTINATIONAL INCORPORATED

 

By:/s/ Paul Parliament 

    Paul Parliament, President and Chief Executive Officer

CENTRO DE ENTRETENIMIENTO Y DIVERSION MOMBACHO S.A.

 

By:/s/ Julioa Kosta

    Julios Kosta, Presidente

Attachment:

Attachment A - Gaming Equipment

6

 

Attachment A

Gaming Equipment

						
	 	                          Centro de Entretenimiento y Divercion Mombacho S.A.

	 	ATTACHMENT

	A

	GAMING EQUIPMENT

	 	 
	 	 	 	 	 	 
	 	Serial #

	 	Name

	 	CLIENT #

	 	 	 	 	 	 
	1

	IGT 407844

	 	 	 	 
	2

	IGT818352

	 	 	 	 
	3

	IGT847840

	 	 	 	 
	4

	IGT 914941

	 	 	 	 
	5

	IGT922243

	 	 	 	 
	6

	IGT944787

	 	 	 	 
	7

	IGT904154

	 	 	 	 
	8

	IGT892393

	 	 	 	 
	9

	IGT910620

	 	 	 	 
	10

	IGT752813

	 	 	 	 
	11

	IGT752873

	 	 	 	 
	12

	IGT752875

	 	 	 	 
	13

	IGT753161

	 	 	 	 
	14

	IGT753183

	 	 	 	 
	15

	IGT753186

	 	 	 	 
	16

	IGT753198

	 	 	 	 
	17

	IGT753201

	 	 	 	 
	18

	IGT753219

	 	 	 	 
	19

	IGT753222

	 	 	 	 
	20

	IGT753223

	 	 	 	 
	21

	IGT752230

	 	 	 	 
	22

	IGT753257

	 	 	 	 
	23

	IGT753276

	 	 	 	 
	24

	IGT753329

	 	 	 	 
	25

	IGT754012

	 	 	 	 
	26

	IGT754019

	 	 	 	 
	27

	IGT754021

	 	 	 	 
	28

	IGT754049

	 	 	 	 
	29

	IGT754050

	 	 	 	 
	30

	IGT754091

	 	 	 	 
	31

	IGT754115

	 	 	 	 
	32

	IGT754146

	 	 	 	 
	33

	IGT754151

	 	 	 	 
	34

	IGT754372

	 	 	 	 
	35

	IGT754464

	 	 	 	 

7

 

						
	36

	IGT754470

	 	 	 	 
	37

	IGT754519

	 	 	 	 
	38

	IGT754538

	 	 	 	 
	39

	IGT754593

	 	 	 	 
	40

	IGT754617

	 	 	 	 
	41

	IGT754655

	 	 	 	 
	 	                          Centro de Entretenimiento y Divercion Mombacho S.A.

	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Serial #

	 	Name

	 	CLIENT #

	 	 	 	 	 	 
	42

	IGT754656

	 	 	 	 
	43

	IGT754657

	 	 	 	 
	44

	IGT754668

	 	 	 	 
	45

	IGT754680

	 	 	 	 
	46

	IGT754722

	 	 	 	 
	47

	IGT754727

	 	 	 	 
	48

	IGT754732

	 	 	 	 
	49

	IGT754733

	 	 	 	 
	50

	IGT754740

	 	 	 	 
	51

	IGT754741

	 	 	 	 
	52

	IGT759975

	 	 	 	 
	53

	IGT481710

	 	 	 	 
	54

	IGT481711

	 	 	 	 
	55

	IGT481712

	 	 	 	 
	56

	IGT481713

	 	 	 	 
	57

	IGT481714

	 	 	 	 
	58

	IGT481715

	 	 	 	 
	59

	IGT481716

	 	 	 	 
	60

	IGT481717

	 	 	 	 
	61

	IGT481718

	 	 	 	 
	62

	IGT481719

	 	 	 	 
	63

	IGT481720

	 	 	 	 
	64

	IGT481721

	 	 	 	 
	65

	IGT481722

	 	 	 	 
	66

	IGT481723

	 	 	 	 
	67

	IGT481724

	 	 	 	 
	68

	IGT481725

	 	 	 	 
	69

	IGT481726

	 	 	 	 
	70

	IGT481727

	 	 	 	 
	71

	IGT481728

	 	 	 	 
	72

	IGT481729

	 	 	 	 

8

 

						
	73

	IGT481730

	 	 	 	 
	74

	IGT481731

	 	 	 	 
	75

	IGT481732

	 	 	 	 
	76

	IGT481733

	 	 	 	 
	77

	IGT481734

	 	 	 	 
	78

	IGT481735

	 	 	 	 
	79

	IGT481736

	 	 	 	 
	80

	IGT481737

	 	 	 	 
	81

	IGT481738

	 	 	 	 
	82

	IGT481739

	 	 	 	 
	 	                          Centro de Entretenimiento y Divercion Mombacho S.A.

	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Serial #

	 	Name

	 	CLIENT #

	 	 	 	 	 	 
	83

	IGT481740

	 	 	 	 
	84

	IGT481741

	 	 	 	 
	85

	IGT481742

	 	 	 	 
	86

	IGT481743

	 	 	 	 
	87

	IGT481744

	 	 	 	 
	88

	IGT481745

	 	 	 	 
	89

	IGT481746

	 	 	 	 
	90

	IGT481747

	 	 	 	 
	91

	IGT481748

	 	 	 	 
	92

	IGT481749

	 	 	 	 
	93

	IGT481750

	 	 	 	 
	94

	IGT481751

	 	 	 	 
	95

	IGT481752

	 	 	 	 
	96

	IGT481753

	 	 	 	 
	97

	IGT481754

	 	 	 	 
	98

	IGT481755

	 	 	 	 
	99

	IGT481756

	 	 	 	 
	100

	IGT481757

	 	 	 	 
	101

	IGT481758

	 	 	 	 
	102

	IGT481759

	 	 	 	 
	103

	IGT585249

	 	 	 	 
	104

	IGT398003

	 	 	 	 
	105

	IGT397471

	 	 	 	 
	106

	IGT397996

	 	 	 	 
	107

	IGT398069

	 	 	 	 
	108

	IGT398618

	 	 	 	 
	109

	SIGMA S9502116

	 	 	 	 

9

 

						
	110

	IGT3999340

	 	 	 	 
	111

	IGT398418

	 	 	 	 
	112

	IGT398292

	 	 	 	 
	113

	IGT383970

	 	 	 	 
	114

	IGT585992

	 	 	 	 
	115

	IGT396379

	 	 	 	 
	116

	SIGMA S941218792

	 	 	 	 
	117

	IGT584151

	 	 	 	 
	118

	SIGMA S941218781

	 	 	 	 
	119

	IGT585242

	 	 	 	 
	120

	IGT58831

	 	 	 	 
	121

	IGT398294

	 	 	 	 
	122

	IGT588311

	 	 	 	 
	123

	IGT398317

	 	 	 	 
	 	                          Centro de Entretenimiento y Divercion Mombacho S.A.

	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Serial #

	 	Name

	 	CLIENT #

	 	 	 	 	 	 
	124

	IGT398346

	 	 	 	 
	125

	IGT588286

	 	 	 	 
	126

	IGT5853037

	 	 	 	 
	127

	IGT585267

	 	 	 	 
	128

	IGT398072

	 	 	 	 
	129

	IGT586038

	 	 	 	 
	130

	IGT585272

	 	 	 	 
	131

	IGT588304

	 	 	 	 
	132

	IGT252383

	 	 	 	 
	133

	IGT226996

	 	 	 	 
	134

	IGT187174

	 	 	 	 
	135

	IGT204675

	 	 	 	 
	136

	IGT194807

	 	 	 	 
	137

	IGT198440

	 	 	 	 
	138

	IGT266903

	 	 	 	 
	139

	IGT212916

	 	 	 	 
	140

	IGT266896

	 	 	 	 
	141

	IGT250983

	 	 	 	 
	142

	IGT322870

	 	 	 	 
	143

	IGT252384

	 	 	 	 
	144

	IGT252381

	 	 	 	 
	145

	IGT252382

	 	 	 	 
	146

	IGT252380

	 	 	 	 

						
	147

	IGT234759

	 	 	 	 
	148

	IGT266894

	 	 	 	 
	149

	IGT222616

	 	 	 	 
	150

	IGT322883

	 	 	 	 
	 	 	 	 	 	 

10EXHIBIT 10.1

 

INSIGNIA SYSTEMS, INC.
 2013 OMNIBUS STOCK AND INCENTIVE PLAN
 RESTRICTED STOCK AWARD AGREEMENT

 

You have been granted an award of Restricted Stock subject to the terms and conditions of the Company’s 2013 Omnibus Stock and Incentive Plan, as amended from time to time (the “Plan”), and the Restricted Stock Agreement set forth below (the “Agreement”), as follows:

 

	
Name of Grantee:
    	
 
    	
Kristine Glancy
    
	
 
    	
 
    	
 
    
	
Date of Issuance:
    	
 
    	
May 13, 2016
    
	
 
    	
 
    	
 
    
	
Shares of Restricted Stock:
    	
 
    	
100,000
    

 

	
Vesting Schedule:
    	
 
    	
Vesting Date
    	
 
    	
Number of Shares
    
	
 
    	
 
    	
May 13, 2017
    	
 
    	
20,000
    
	
 
    	
 
    	
May 13, 2018
    	
 
    	
20,000
    
	
 
    	
 
    	
May 13, 2019
    	
 
    	
20,000
    
	
 
    	
 
    	
May 13, 2020
    	
 
    	
20,000
    
	
 
    	
 
    	
May 13, 2021
    	
 
    	
20,000
    

 

The period over which a share of Restricted Stock vests is referred to as its “Restricted Period.”

 

Capitalized terms used but not defined in this Agreement have the meanings assigned to them in the Plan.

 

THIS AGREEMENT, made effective as of the Date of Issuance set forth above, by and between Insignia Systems, Inc., a Minnesota corporation (the “Company”), and the Grantee identified above (“Grantee”).

 

W I T N E S S E T H:

 

WHEREAS, Grantee and the Company are party to that certain Employment Agreement dated April 8, 2016, setting forth the terms and conditions of Grantee’s employment as Chief Executive Officer of the Company (the “Employment Agreement”);

 

WHEREAS, the Company desires to give Grantee an inducement to acquire a proprietary interest in the Company and an added incentive to advance the interests of the Company by awarding shares of Restricted Stock to Grantee (the “Shares”), on the terms and conditions and subject to the restrictions set forth in this Agreement; and

 

WHEREAS, the Company and Grantee each desire to enter into this Agreement to establish the terms and conditions of such Award.

 

1

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained, the parties hereto agree as follows:

 

1.                                      GRANT OF RESTRICTED STOCK.  The Company hereby grants to Grantee, subject to the terms and conditions in this Agreement and the Plan, the number of shares of Restricted Stock specified above.  Such shares are subject to the restrictions provided for in this Agreement and are referred to collectively as the “Restricted Shares” and each as a “Restricted Share.”  The grant of the Restricted Stock is made in consideration of Grantee’s execution of the Employment Agreement and the services to be rendered by the Grantee to the Company.

 

2.                                      RESTRICTIONS ON RESTRICTED SHARES.  Subject to any exceptions set forth in this Agreement or the Plan, during the Restricted Period, the Restricted Shares or the rights relating thereto may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Grantee.  Any attempt to assign, alienate, pledge, attach, sell or otherwise transfer or encumber the Restricted Shares or the rights relating thereto during the Restricted Period shall be wholly ineffective and, if any such attempt is made, the Restricted Shares will be forfeited by the Grantee and all of the Grantee’s rights to such shares shall immediately terminate without any payment or consideration by the Company.  The Restricted Shares shall be subject to forfeiture until satisfaction of the vesting conditions set forth in Section 4 of this Agreement.

 

3.                                      ACCEPTANCE.  Grantee’s execution of this Agreement will indicate his or her acceptance of and willingness to be bound by its terms and the terms of the Plan.

 

4.                                      NORMAL VESTING.  If Grantee remains an employee of the Company or at least one of its Affiliates continuously from the Date of Issuance as specified above, then the Restricted Shares will vest in the numbers and on the Vesting Dates specified above.

 

5.                                      ACCELERATED VESTING.  Notwithstanding Section 4 of this Agreement:

 

(a)                                 In the event of Grantee’s death or if Grantee’s employment is terminated by the Company for Disability or without Cause or by Grantee for Good Reason, then the amount of Restricted Shares eligible to vest on the next applicable Vesting Date shall vest as of the date of the applicable triggering event, and all remaining unvested Restricted Shares shall be immediately forfeited.

 

(b)                                 If a Change in Control occurs and the continuing or successor entity following such Change in Control fails to assume or replace any unvested Restricted Shares with new awards of equivalent value of such continuing or successor entity, then all such Restricted Shares shall automatically become 100% vested upon the date of the Change in Control.

 

6.                                      ISSUANCE OF UNRESTRICTED SHARES.  Upon the vesting of any Restricted Shares, such vested Restricted Shares will no longer be subject to forfeiture as provided in Section 7 of this Agreement, but will continue to be subject to the provisions of Section 10(d) of this Agreement.

 

7.                                      FORFEITURE.  If Grantee ceases to be an employee of the Company and its Affiliates prior to the last Vesting Date set forth above, then any Restricted Shares that have not previously vested (including pursuant to Section 5 of this Agreement) will be forfeited by Grantee to the

 

2

 

Company, and Grantee will thereafter have no right, title or interest whatever in such Restricted Shares.  If the Company does not have custody of any and all certificates representing Restricted Shares so forfeited, then Grantee must immediately return to the Company any and all certificates representing Restricted Shares so forfeited. Additionally, Grantee must deliver to the Company a stock power duly executed in blank relating to any and all certificates representing the Restricted Shares forfeited to the Company in accordance with the previous sentence or, if such stock power has previously been tendered to the Company, the Company will be authorized to deem such previously tendered stock power delivered, and the Company will be authorized to cancel any and all certificates representing Restricted Shares so forfeited and issue and deliver to Grantee a new certificate for any Shares that vested prior to forfeiture.  If the Restricted Shares are recorded in a book entry account in lieu of a certificate, Grantee agrees that the number of shares in the account will be reduced to reflect any forfeited shares and Grantee agrees to promptly complete any documentation reasonably required by the Company’s transfer agent to effect such reduction.

 

8.                                      DEFINITIONS.  For purposes of this Agreement:

 

(a)                                 “Cause” means what the term is expressly defined to mean in a then-effective written agreement (including, but not limited to the Employment Agreement) between Grantee and the Company or any Affiliate or, in the absence of any such then-effective agreement or definition, means (a) the deliberate and continued failure to substantially perform Grantee’s duties and responsibilities as Chief Executive Officer of the Company; (b) the criminal felony conviction of, or a plea of guilty or nolo contendere by, Grantee; (c) the  material violation of Company policy; (d) the act of fraud or dishonesty resulting or intended to result in personal enrichment at the expense of the Company; (e) the gross misconduct in performance of duties that results in material economic harm to the Company; or (f) the material breach by Grantee of the Employment Agreement or any successor thereto.  Notwithstanding the foregoing, in order to establish “Cause” for Grantee’s termination for purposes of clauses (a), (c) and (f) above, the Company must deliver a written demand to Grantee which specifically identifies the conduct that may provide grounds for Cause, and the Grantee must have failed to cure such conduct within thirty (30) days after such demand.  Reference in this paragraph to the Company shall also include direct and indirect subsidiaries of the Company.

 

(b)                                 “Disability” means what the term is expressly defined to mean in a then-effective written agreement (including, but not limited to the Employment Agreement) between Grantee and the Company or any Affiliate or, in the absence of any such then-effective agreement or definition, means “total and permanent disability” within the meaning of Code Section 22(e)(3).

 

(c)                                  “Good Reason” means what the term is expressly defined to mean in a then-effective written agreement (including, but not limited to the Employment Agreement) between Grantee and the Company or any Affiliate or, in the absence of any such then-effective agreement or definition, means any of the following: (a) a material and adverse change in Grantee’s duties, title or position, provided, however, that a change in the Company’s status as a publicly held corporation filing reports with the Securities and Exchange Commission shall not be deemed to constitute Good Reason hereunder; (b) a reduction in the Grantee’s base salary, provided, however, that Good Reason shall not exist in the event that Grantee’s base salary is reduced no more than 15% in connection with an across-the-board salary reduction by the Company similarly affecting all senior executives of the Company; or (c) a material breach by the Company of its obligations

 

3

 

under the Employment Agreement or any successor thereto.  Good Reason shall not exist unless Grantee shall provide notice of the existence of the Good Reason condition within ninety (90) days of the date Grantee learns of the condition.  The Company shall have a period of thirty (30) days during which it may remedy the condition, and in case of full remedy such condition shall not be deemed to constitute Good Reason hereunder.

 

9.                                      THIS AWARD SUBJECT TO PLAN.  The Award of Restricted Stock evidenced by this Agreement is granted pursuant to the Plan, a copy of which Plan has been made available to Grantee and is hereby incorporated into this Agreement.  This Agreement is subject to and in all respects limited and conditioned as provided in the Plan, including, without limitation, Section 6(f)(viii) regarding compliance with Section 409A of the Code.  The Plan governs this Award and, in the event of any questions as to the construction of this Agreement or in the event of a conflict between the Plan and this Agreement, the Plan shall govern, except as the Plan otherwise provides.

 

10.                               SECURITIES MATTER AND CERTAIN TRANSACTIONS.

 

(a)                                 Rights as Shareholder.  The Grantee shall be the record owner of the Restricted Shares until the Shares are sold or otherwise disposed of, and shall be entitled to all of the rights of a shareholder of the Company including, without limitation, the right to vote such Shares and receive all dividends or other distributions paid with respect to such Shares; provided that, any dividends with respect to the Restricted Shares shall be withheld by the Company for the Grantee’s account in a non-interest bearing account.  The dividends so withheld by the Committee and attributable to any particular Share of Restricted Shares shall be distributed to the Grantee in cash upon the release of restrictions on such Share and, if such Share is forfeited, the Grantee shall have no right to such dividends.

 

(b)                                 No Right of Employment.  This Agreement does not confer on Grantee any right to continued employment with the Company or any of its Affiliates or with respect to the continuance of any other relationship between Grantee and the Company, nor will it interfere in any way with the right of the Company to terminate any such relationship.

 

(c)                                  Evidence of Ownership; Stock Legend.  Each Restricted Share will be evidenced by a duly issued stock certificate or electronic equivalent (which may represent more than one Restricted Share) registered in the name of Grantee. Physical possession or custody of any stock certificates that are issued shall be retained by the Company until such time as the Restricted Share vests.  The certificates or other evidence of the Restricted Shares or any Shares issued to Grantee (or, in the case of death, Grantee’s successors) may bear a legend indicating restrictions on transferability of the Restricted Shares and Shares pursuant to this Agreement or any other restrictions as may be determined or authorized by the Company in its sole discretion, including any legends it may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any applicable federal or state securities laws or any stock exchange on which the Shares are then listed or quoted.

 

(d)                                 Securities Law Compliance.  The issuance and transfer of Shares shall be subject to compliance by the Company and the Grantee with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the

 

4

 

Company’s Shares may be listed.  No Shares shall be issued or transferred unless and until any then applicable requirements of state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel.  The Grantee understands that the Company is under no obligation to register the Shares with the Securities and Exchange Commission, any state securities commission or any stock exchange to effect such compliance.

 

(e)                                  Mergers, Recapitalizations, Stock Splits, Etc.  Pursuant and subject to Section 4(c) of the Plan, certain changes in the number or character of the common stock of the Company (through sale, merger, consolidation, exchange, reorganization, divestiture (including a spin-off), liquidation, recapitalization, stock split, stock dividend or otherwise) shall result in an adjustment, reduction or enlargement, as appropriate, in the Restricted Shares.

 

(f)                                   Change in Control.  Upon the occurrence of a Change in Control, the Committee shall have the right, in its sole and absolute discretion, but not the obligation, to take actions to make one or more adjustments or modifications to this Award pursuant to Section 9(g) of the Plan.

 

(g)                                  Limitation on Change in Control Payments. Notwithstanding anything in this Agreement to the contrary, if, with respect to Grantee, the acceleration of the vesting of Restricted Shares as provided in Section 5(b) of this Agreement (which acceleration could be deemed a “payment” within the meaning of Section 280G(b)(2) of the Code), together with any other payments that Grantee has the right to receive from the Company or any corporation which is a member of an “affiliated group” (as defined in Section 1504(a) of the Code without regard to Section 1504(b) of the Code) of which the Company is a member, would constitute a “parachute payment” (as defined in Section 280G(b)(2) of the Code), then the “payments” to Grantee will be reduced to the largest amount as will result in no portion of such “payments” being subject to the excise tax imposed by Section 4999 of the Code. Without limiting the prior sentence, Grantee will have the discretion to determine which “payments” will be reduced so that no portion of such “payments” are subject to the excise tax imposed by Section 4999 of the Code. Notwithstanding anything to the contrary in this Section 10(g), if Grantee is subject to a separate agreement with the Company that expressly addresses the potential application of Section 280G or 4999 of the Code (including, without limitation, that “payments” under such agreement or otherwise will be reduced, that such “payments” will not be reduced or that such “payments” will be “grossed up” for tax purposes), then this Section 10(g) will not apply, and any “payments” to Grantee pursuant to Section 5(b) of this Agreement will be treated as “payments” arising under such separate agreement.

 

(h)                                 Accounting Compliance.  Grantee agrees that, if a reclassification, reorganization, liquidation or other transaction described in Section 4(c) of the Plan occurs and Grantee is an “affiliate” of the Company or any Subsidiary (as defined in applicable legal and accounting principles) at the time of such transaction, Grantee will comply with all requirements of Rule 145 of the Securities Act of 1933, as amended, and the requirements of such other legal or accounting principles, and will execute any documents necessary to ensure such compliance.

 

(i)                                     Withholding Taxes.  The parties to this Agreement recognize that the Company or its Affiliate may be obligated to withhold federal and state income taxes or other taxes upon the vesting of the Restricted Shares, or, in the event that the Employee elects under Section 83(b) of the Code to report the receipt of the Restricted Shares as income in the year of receipt, upon the

 

5

 

Grantee’s receipt of the Restricted Shares. Grantee agrees that, at such time, if the Company or a parent or subsidiary is required to withhold such taxes, the Company will withhold Shares issuable to Grantee as a result of vesting of the Restricted Shares in such amount as is necessary to satisfy the tax withhold obligation, unless (x) Grantee provides notice to the Company prior to the applicable Vesting Date that Grantee desires to pay cash or directs the Company (or any Affiliate) to withhold from payroll or other amounts payable to Grantee any sums required to satisfy such withholding tax obligations or (y) the withholding obligation is satisfied in such other manner as is permitted by the Committee in accordance with the terms of the Plan. Such Shares shall have a Fair Market Value equal to the minimum required tax withholding, based on the minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to the supplemental income resulting from the grant or vesting of the Restricted Shares, as applicable.  In no event may the Company accept or withhold securities having a Fair Market Value in excess of such statutory minimum required tax withholding.  Any Shares withheld to satisfy tax withholding requirements under this Section 10(i) will be deemed forfeited and the number of Shares held by Grantee will be adjusted in connection therewith as provided in Section 7.

 

11.                               MISCELLANEOUS.

 

(a)                                 Binding Effect.  This Agreement shall be binding upon the heirs, executors, administrators and successors of the parties hereto.

 

(b)                                 Governing Law.  This Agreement and all rights and obligations hereunder shall be construed in accordance with the Plan and governed by the laws of the State of Minnesota.

 

(c)                                  Entire Agreement.  This Agreement and the Plan set forth the entire agreement and understanding of the parties hereto with respect to the grant of this Award and the administration of the Plan and supersede all prior agreements, arrangements, plans and understandings relating to the grant of this Award and the administration of the Plan.

 

(d)                                 Amendment and Waiver.  This Agreement may be amended, waived, modified or canceled by the Committee at any time, provided that all such amendments, waivers, modifications or cancellations shall comply with and not be prohibited by the provisions of the Plan, and any amendment, waiver, modification or cancellation that has an adverse effect on Grantee’s rights under this Agreement shall be with Grantee’s consent in a written instrument executed by Grantee and the Company.

 

(e)                                  Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

6

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and year first above written.

 

	
 
    	
INSIGNIA SYSTEMS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ F. Peter Zaballos
    
	
 
    	
Name:
    	
F. Peter Zaballos
    
	
 
    	
Title:
    	
Co-Chairman of the   Board of Directors
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GRANTEE
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kristine Glancy
    
	
 
    	
Name:
    	
Kristine Glancy
    

 

Signature Page to Restricted Stock Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}]]