Document:

Exhibit
10.47

TRANSFER AGREEMENT

This Transfer Agreement
(“Agreement”) is dated as of November 7, 2003 and effective as of August
21, 2003, by and among LECG Corporation, a Delaware corporation (“LECG Corp.”),
Thoma Cressey Fund VII, L.P., a Delaware limited partnership, Thoma Cressey
Friends Fund VII, L.P., a Delaware limited partnership (Thoma Cressey Fund VII,
L.P. and Thoma Cressey Friends Fund VII, L.P. collectively, “TCEP”), and
TCEP/LECG Funding Corporation, a Delaware corporation (“Funding”).

RECITALS

A.            TCEP owns all of the outstanding common shares of Funding
(the “Funding Shares”).

B.            Funding owns 8,059,999 common units (the “Common Units”)
of LECG Holding Company, LLC, a California limited liability company (“Holding”),
and 18,097.767 Class A preferred units (the “Preferred Units”) of
Holding.  (The number of Preferred Units
held by Funding is subject to adjustment based on the provisions of the LLC
Agreement (as defined below).)  The
Common Units and the Preferred Units are collectively referred to herein as the
“Units.”

C.            Holding owns all of the issued and outstanding equity
interests of LECG, LLC, a California limited liability company (“LECG”).

D.            Funding is a party to Holding’s Limited Liability Company
Agreement dated as of September 29, 2000, as amended (the “LLC Agreement”).  Section 15.7 of the LLC Agreement
provides that the Board of Directors of Holding (the “Board”) may cause
the incorporation of Holding in order to facilitate a public offering of
securities of Holding, including the transfer by the holders of the Units to
one or more corporations in exchange for shares of such corporation(s),
provided that all of the holders within each class of Units are treated equally
(the “Unit Conversion”).  Section
15.7 of the LLC Agreement further provides that in connection with any such
incorporation, each holder of Units may enter into an arrangement to accomplish
the Unit Conversion in a manner that is the most tax efficient for such holder
(an “Alternative Arrangement”).

E.             In accordance with Section 15.7 of the LLC
Agreement, the Board has authorized the incorporation of LECG Corp. in
preparation for an initial public offering (“IPO”), and has also
authorized a Unit Conversion and an Alternative Arrangement for Funding’s
participation in the Unit Conversion.

F.             Also in accordance with Section 15.7 of the LLC
Agreement, Funding has determined that it wishes to enter into an Alternative
Arrangement, pursuant to which TCEP will transfer to LECG Corp., and LECG Corp.
will acquire from TCEP, all of the Funding Shares upon the terms and conditions
and for the consideration set forth below.

 

 

G.            This Transfer Agreement is being delivered in connection
with the execution of that certain Omnibus Plan of Reorganization (the “Plan”), dated as of the date
hereof, between Funding, TCEP, the Corporation, Holding and certain other
signatories thereto.

AGREEMENT

1.             Transfer of the Shares

(a)           Subject to the terms and conditions
set forth in this Agreement, at the Closing Date (as that term is defined in Section
2) TCEP will transfer to LECG Corp. all of the Funding Shares; and LECG
Corp. will (i) issue and deliver to TCEP share certificates for a number of
shares of the LECG Stock equal to a percentage determined by
the Board of Directors of Holding prior to the Closing Date, of the number of Common Units held by
Funding on the Record Date (as defined in the Plan), registered in the names of
Thoma Cressey Fund VII, L.P. and Thoma Cressey Friends Fund VII, L.P. in such
amounts to be determined by TCEP prior to the Closing Date (collectively, the “Exchange
Stock”), (ii) enter into a binding commitment to pay to TCEP the TCEP
Redemption Amount (as defined below), (iii) enter into a binding commitment to
pay to Funding its allocable portion of the Final Tax Distribution (as defined
in the Plan) on or before March 14, 2004, (iv) enter into a binding commitment
to pay to TCEP an amount equal to Funding’s allocable portion of the Retained
Earnings Payout (as defined in the Plan) (with that portion of the Retained
Earnings Payout for prior periods ending on or before December 31,
2002 being paid as soon as possible following, but in any event within five (5)
days of the consummation of the IPO, and the Retained Earnings Payout for 2003
being paid on or before March 14, 2004, and (v) enter into a binding contingent commitment to
pay to TCEP an amount equal to the Remaining Funding Tax Reserve, if any, on
September 30, 2004 or such other date as the parties may agree in writing.  The certificates representing the shares of
Exchange Stock shall be delivered within one (1) day following the Closing to
the person or persons designated by TCEP in advance of such Closing.

(b)           As soon as reasonably possible, but
in no event more than five (5) days after the receipt by LECG Corp. of the
proceeds of the IPO (the “Payment Date”), LECG Corp. will pay to TCEP by
wire transfer of immediately available funds to the accounts and in such
proportions as are set forth on Exhibit B hereto, an amount equal to the
sum of (i) the “Liquidation Value,” as that term is defined in the LLC
Agreement, of the Preferred Units as of the date of the consummation of the
IPO, based on the number of Preferred Units outstanding on the Closing Date
(the “TCEP Redemption Amount”) and (ii) Funding’s allocable portion of
the Retained Earnings Payout.

(c)           On the Payment Date, LECG Corp. will
pay to Funding by wire transfer of immediately available funds to the Funding
Account (as defined below) an amount equal to Funding’s allocable portion of
the Final Tax Distribution.

2.             The Closing

                The
closing (the “Closing”) will take place at the offices of Folger Levin
& Kahn LLP, 1900 Avenue of the Stars, 28th Floor, Los Angeles, California
90067, immediately following the time that the Registration Statement for the
IPO is declared effective by the Securities and 

 

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Exchange Commission (“SEC”), or on such other
date and at such other place as may be mutually agreed by the parties.  The date and hour of Closing is sometimes referred
to in this Agreement as the “Closing Date.”  On or before the Closing Date, the parties will mutually
determine an allocation among the parties of the costs and expenses incurred in
connection with the performance of, and compliance with, all obligations
contained in this Agreement to be performed or complied with by TCEP.

3.             Closing Deliverables: 
TCEP and Funding

(a)           At the Closing, TCEP will deliver or
cause to be delivered to LECG Corp. a certificate or certificates evidencing
the Funding Shares, which certificate(s) must be properly endorsed for transfer
or accompanied by duly executed stock powers, in either case executed in favor
of LECG Corp.

(b)           At the Closing, TCEP and Funding will
each deliver to LECG Corp. a Compliance Certificate signed by a duly authorized
representative of the respective party, dated as of the Closing Date,
certifying as to the continuing accuracy of the representations and warranties
contained in this Agreement on the part of TCEP and Funding and the fulfillment
as of the Closing Date of their respective obligations hereunder.

(c)           At the Closing, counsel for TCEP
shall provide a legal opinion to LECG Corp. in form and substance as shall be
reasonably agreed upon by TCEP and LECG Corp.

4.             Closing Deliverables: 
LECG Corp.

(a)           At the Closing, and upon receipt of
the Funding Shares, LECG Corp. will deliver certificates to TCEP evidencing the
Exchange Stock.

(b)           At the Closing, LECG Corp. will
deliver to TCEP a Compliance Certificate signed by an officer of LECG Corp.,
dated as of the Closing Date, certifying as to the continuing accuracy of the
representations and warranties contained in this Agreement on the part of LECG
Corp. and fulfillment as of the Closing Date of its obligations contained in
this Agreement.

(c)           At the Closing, counsel for LECG
Corp. will provide to TCEP an opinion of counsel dated as of the Closing Date,
to the effect that (i) LECG Corp. has been duly incorporated and is validly
existing as a corporation in good standing under the laws of the State of Delaware;
(ii) the execution, delivery, and performance of this Agreement by LECG Corp.
have been duly authorized by all requisite corporate action on its part; (iii)
LECG Corp. has 200,000,000 authorized shares of Common Stock, $0.001 par value,
none of which are outstanding; (iv) the Exchange Stock has been duly and
validly authorized and issued and is fully paid and nonassessable; and (v) the
execution, delivery and performance of this Agreement by LECG Corp. do not
violate or conflict with any contractual restriction affecting LECG Corp. or
its assets.

(d)           At the Closing, LECG Corp. shall
issue a receipt to TCEP for the amount of funds in the Funding Account as of
the time of the TCEP Transfer.

 

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5.             Condition of the Parties’ Obligations

                The
obligations of each of the parties under this Agreement to proceed with the
Closing are subject only to the conditions that on or before the Closing Date
(i) the Registration Statement on Form S-1 for the IPO has been declared
effective by the SEC, and (ii) that the governing boards of LECG Corp. and
Holding have approved proceeding with the IPO in accordance with their
respective governing documents. 
Notwithstanding the foregoing, if the Registration Statement has not
been declared effective by the SEC on or before December 31, 2003, this
Agreement will automatically terminate and be of no further force or effect.

6.             Representations and Warranties of TCEP and Funding

TCEP and Funding jointly
and severally represent and warrant to, and agree with LECG Corp. that, except
as set forth in Schedule 1 attached hereto and incorporated herein by
this reference:

(a)           Funding is and will be at the Closing
Date an entity duly organized and validly existing under the laws of the State
of Delaware; is and will be at the Closing Date in good standing under the laws
of the State of Delaware and of any other state or jurisdiction where the
failure to be so qualified would have a material adverse effect on TCEP or
Funding; has and will have at the Closing Date the requisite organizational
power and authority to own its properties and carry on its business as
conducted immediately prior to the Closing Date; and has and will have at the
Closing Date obtained all licenses, permits or other authorizations, and taken
all actions, required by applicable law or governmental regulations in
connection with its business as conducted immediately prior to the Closing
Date.

(b)           Funding’s authorized capital stock
consists solely of 1000 shares of common stock, of which 100  shares
and no more are currently issued and outstanding.

(c)           Other than in relation to Holding,
Funding does not own, directly or indirectly, a majority or controlling
interest in any corporation, business trust, joint stock company, or other
business organization or association. 
There are no outstanding rights, warrants, options, subscriptions,
agreements, or commitments giving anyone any right to require Funding to issue,
sell or transfer any capital stock or other equity securities.  Funding is not a general partner of any
partnership or a party to any joint venture.

(d)           With the exception of the ownership
of the Units and cash, Funding has not conducted any other business activities
and, other than those related to the ownership of the Units and cash, does not
own any intangible, personal or real property assets of any kind or
nature.  Funding holds the Units free
and clear of all liens, encumbrances, charges, or assessments of any kind or
character.

(e)           Except as set forth in Schedule 1
and except as to Taxes, Funding has no liabilities of any kind, whether
accrued, absolute, contingent or otherwise.

(f)

 

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(i)            For purposes of this Agreement, “Tax”
or “Taxes” means (1) any federal, state, local or foreign taxes,
charges, fees, levies or other assessments, including all net income, gross
income, gross receipts, sales, use, ad valorem, transfer, franchise, profits,
license, withholding, payroll, employment, social security, unemployment,
excise, estimated, severance, stamp, occupation, property or other taxes,
customs duties, fees, assessments or charges of any kind whatsoever, including
all interest and penalties thereon, and additions to tax or additional amounts
imposed by any governmental authority, whether disputed or not, (2) any
liability for the payment of any amounts of any of the foregoing types as a
result of being a member of an affiliated, consolidated, combined or unitary
group, or being a party to any agreement or arrangement whereby liability of
Funding for payment of such amounts was determined or taken into account with
reference to the liability of any other entity, and (3) any liability of
Funding for the payment of any amounts as a result of being a party to any Tax
sharing agreements or other contractual arrangements (whether or not written)
binding on Funding or with respect to the payment of any amounts of the
foregoing types as a result of any obligation to indemnify any other person or
entity.

(ii)           Except as otherwise set forth on Schedule
1, Funding has timely filed or will file all Tax returns, declarations,
reports, estimates, statements and other documents (collectively, the “Tax
Returns”) that are due on or before the Closing Date in respect of any
Taxes, all of which are true, correct and complete in all material respects,
provided, however, that TCEP and Funding make no representations and give no
warranty regarding the accuracy or completeness of information on Funding’s Tax
Returns that was provided by or on behalf of Holding or to the extent that it
was based on information provided by or on behalf of Funding.

(iii)          Except as otherwise set forth on Schedule
1, Funding has timely paid all material Taxes, whether or not shown to be
due and payable on such Tax Returns that are due on or before the Closing Date;
provided, however, that TCEP and Funding make no representations and give no
warranty regarding Taxes to the  extent
that any miscalculation of such Taxes results or resulted from inaccurate or
incomplete information on Funding’s Tax Returns that was provided by or on
behalf of Holding.

(iv)          Funding has delivered to LECG Corp.
copies of all Tax Returns filed since the creation of Funding.

(v)           Except as otherwise set forth in Schedule
1, no deficiency for any Taxes for any period has been proposed or asserted
by any Taxing authority that has not been resolved and paid in full at the date
of this Agreement.  Except as otherwise
set forth in Schedule 1, there are no pending audits or other
administrative proceedings or court proceedings with regard to any Taxes or Tax
Returns of Funding.

(vi)          Funding is not a party to any Tax
allocation or sharing agreement.

(vii)         Funding has not been a member of an
affiliated group filing a consolidated Tax Return.

(g)           The officers and directors of Funding
are the individuals listed in Schedule 2 to this Agreement, each of whom
will resign on or before the Closing Date. 
None of such 

 

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officers and directors
are entitled to any compensation for their services on behalf of Funding.  Funding does not have, and has never had,
any employees.

(h)           Schedule 1 shows: (i) the name
of each bank, trust company or savings institution in which Funding has an
account or safe deposit box and the names and identification of all persons
authorized to draw on or to have access to any such account or safety deposit
box; and (ii) the names of all persons, if any, holding powers of attorney from
Funding and a summary statement of the terms of each.

(i)            No representation or warranty by
TCEP or Funding in this Section 6 or in any other section of this
Agreement, or in any certificate or other document furnished or to be furnished
by TCEP or Funding (on or before the Closing Date) pursuant to this Agreement,
contains or will contain any untrue statement of a material fact or omits or
will omit to state a material fact necessary to make the statements that are
made not misleading or necessary in order to provide LECG Corp. with complete
and accurate information as to Funding.

(j)            The Funding Shares are owned by TCEP
free and clear of all liens, encumbrances, charges and assessments, and such
shares are subject to no restrictions with respect to transferability to LECG
Corp. in accordance with the terms of this Agreement.

(k)           Upon transfer of the Funding Shares
to LECG Corp. by TCEP, LECG Corp. will, as a result, receive good and
marketable title, free and clear of all liens, encumbrances, claims, charges,
assessments, and restrictions, to all of the Funding Shares.

(l)            Neither Funding nor TCEP has
violated any law or any governmental regulation or requirement which violation
would reasonably be expected to have a material adverse effect upon the
financial condition, assets, or operations of Funding, and neither TCEP nor
Funding has received notice of any such violation.

7.             Additional Representations and Warranties of TCEP

(a)           TCEP understands that LECG Corp., in
issuing the LECG Stock to TCEP pursuant to this Agreement, is relying upon the
exemption contained in Section 4(2) of the Securities Act of 1933, as amended
(the “Act”).  TCEP acknowledges,
represents, warrants, and agrees that the Exchange Stock has not been
registered under the Act and will be acquired by TCEP with the intent and
purpose of retaining the same for investment and not for the purpose of or with
the view to distributing the Exchange Stock or any portion thereof to others by
sale or otherwise.

(b)           TCEP further agrees that the stock
certificate(s) issued by LECG Corp. pursuant to this Agreement will (and any
certificate issued upon transfer thereof may) be stamped or otherwise imprinted
with reasonably customary legends TCEP further confirms its understanding that
future sales or transfers of shares of the Exchange Stock are restricted pursuant
to the terms of the Underwriting Agreement and the certain Lock-Up Agreements
executed by Thoma Cressey Fund VII, L.P. and Thoma Cressey Friends Fund VII,
L.P., respectively, on or about August 22, 2003  and may be restricted as a
result of their unregistered status, and that these shares must be held
indefinitely unless subsequently registered under the Act, or an exemption from
registration under the Act is available.

 

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8.             Representations, Warranties and Agreements of LECG
Corp.

(a)           LECG Corp. is and will be at the
Closing Date an entity duly organized and validly existing under the laws of
the State of Delaware; is and will be at the Closing Date in good standing
under the laws of the State of Delaware and of any other state or jurisdiction
where the failure to be so qualified would have a material adverse effect on
LECG Corp.; has and will have at the Closing Date the requisite organizational
power and authority to own its properties and carry on its business as
conducted immediately prior to the Closing Date; and has and will have at the
Closing Date obtained all licenses, permits or other authorizations, and taken
all actions, required by applicable law or governmental regulations in
connection with its business as conducted immediately prior to the Closing
Date.

(b)           LECG Corp. has an authorized capital
stock consisting solely of 200,000,000 shares of common stock, $0.001 par
value, and no shares are currently outstanding.

(c)           The execution, delivery and
performance of this Agreement by LECG Corp. have been duly authorized by all
requisite corporate action.

(d)           The Exchange Stock is validly
authorized and will be, when issued in accordance with this Agreement, validly
issued, fully paid, and nonassessable shares of Common Stock of LECG Corp.

9.             Conduct of Business Pending Closing

From and after the date
of this Agreement, and prior to the Closing Date, the business of Funding must
be conducted in the ordinary course of business, and none of the assets or properties
of Funding, except for cash, may be sold or disposed of.

10.           Indemnification by TCEP

TCEP agrees to defend,
indemnify and hold LECG Corp. and Funding harmless from and against, and will
reimburse LECG Corp. (or Funding if LECG Corp. so requests) on demand for, any
loss, damages, claim or expense (including attorneys’ fees and costs of
investigation) incurred by LECG Corp. at any time after the Closing Date, with
respect to:

(a)           Any and all liabilities of Funding of
any nature other than liability for Taxes, subject to indemnity under Section
10(d) hereof, whether accrued, absolute, contingent, or otherwise arising
on or before the Closing Date.

(b)           Any and all liabilities of or claims
against Funding (other than liabilities and claims relating to Taxes, subject
to indemnity under Section 10(d) hereof) arising out of the conduct of
the business of Funding prior to the Closing Date.

(c)           Any and all damage or deficiency
resulting from any misrepresentation, breach of warranty, or nonfulfillment of
any obligation on the part of TCEP under this Agreement, or from any
misrepresentation in, or omission from, any certificate or other instrument
furnished or to be furnished to LECG Corp. pursuant to this Agreement.

 

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(d)           Subject to the provisions of Sections
11(b) and 11(c), any Tax liability of Funding allocable to any tax
period or portion of a tax period ending on or before the Closing Date (a “Pre-Closing
Tax Liability”).  In the case of any
Tax measured by income, revenues or receipts (an “Income Tax”) for a
taxable period that begins before and ends after the Closing Date (a “Straddle
Period”), the portion of the Income Tax allocable to the portion of the
Straddle Period ending on the Closing Date will be determined based on a
closing of the books as of the end of the Closing Date with respect to Funding,
Holding and any entity owned or controlled directly or indirectly by Holding
that is treated as a partnership or a disregarded entity for federal income tax
purposes.  Any Tax liability of Funding
that is not the responsibility of TCEP pursuant to the preceding provisions of
this Section 10(d) will be the responsibility of LECG Corp.

11.           Tax Covenants.

(a)           LECG Corp. will be responsible for
preparing and filing, at its own expense, all Tax Returns of Funding due after
the Closing Date and will be responsible for paying all Taxes due after the
Closing Date, subject only to the obligations of TCEP under Section 10(d)
of this Agreement.  The Tax Return for
any period that ends prior to the Closing Date or any Straddle Period will be
prepared in a manner consistent with past practice, and LECG Corp. will provide
TCEP with a copy of any such Tax Return as soon as practicable following its
preparation, but in any event no less than 30 calendar days prior to the date
on which such Tax Return is to be filed. 
TCEP will notify LECG Corp. of any proposed revisions to such Tax Return
within 15 calendar days after receipt of such Tax Return from LECG Corp.  TCEP and LECG Corp. agree to attempt to
resolve in good faith any dispute concerning the reporting of any item on such
Tax Return (a “Disputed Item”) in a timely fashion before the filing
date.  In the event that TCEP and LECG
Corp. have not successfully resolved any Disputed Item before the filing date,
TCEP and LECG Corp. agree that Funding will file the Tax Return no later than
the filing date and that TCEP and LECG Corp. will continue to work in good
faith following the filing date to resolve the Disputed Item and, if necessary,
to cooperate in LECG Corp.’s preparation and filing of an amended Tax Return
upon the resolution of the Disputed Item. 
LECG Corp. will not cause or permit Funding to file an amended Tax
Return for any period or portion of a period for which TCEP bears
responsibility for Taxes under Section 10(d) of this Agreement without
the written consent of TCEP, which consent will not be denied unreasonably.

(b)           TCEP will control the conduct of any
tax audits, controversies, proceedings or negotiations relating to Tax Returns
or Taxes of Funding for all periods ending on or before the Closing Date and
all Straddle Periods, and such control will include, without limitation, the
discretion to select professionals to assist and represent Funding in those audits,
controversies, proceedings and negotiations and the discretion whether or on
what terms to settle such audits, controversies, proceedings or
negotiations.  LECG Corp. will cooperate
fully with TCEP in preparing for and conducting any such audits, controversies,
proceedings or negotiations and in effecting any settlement or other resolution
of such audits, controversies, proceedings and negotiations.

(i)            To the extent that TCEP would be
responsible for the payment of any Pre-Closing Tax Liability pursuant to Section
10(d) prior to taking into account the 

 

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provisions of this Section
11(b)(i), such Pre-Closing Tax Liability will first be satisfied by Funding
out of the available funds in that certain account set forth on Exhibit A
hereto (the “Funding Account”), and TCEP shall not be responsible to pay
said Pre-Closing Tax Liability to the extent that it has been so
satisfied.  Funding, LECG Corp., and
TCEP agree that the portion of the Final Tax Distribution allocable to Funding
will be paid by LECG Corp. directly into the Funding Account (the “Funding
Final Tax Distribution”).  The
Funding Final Tax Distribution, together with any funds in the Funding Account
on the Closing Date, will be collectively referred to herein as the “Funding
Tax Reserve.”

(ii)           LECG Corp., Funding and TCEP each
agree to inform the other parties hereto within five (5) business days after
receiving any notice from a Taxing authority that may give rise to a
Pre-Closing Tax Liability.  Funding and
LECG Corp. agree that the monies in the Funding Account and any earnings
thereon and any amounts received by TCEP to satisfy any portion of a Prior
Period Tax Obligation will be disbursed by Funding and LECG Corp. only upon,
and in accordance with, the written instruction of TCEP and solely for the
purpose of satisfying a Prior Period Tax Obligation and not at any other time
or for any other purpose whatsoever. 
Such instruction will not be unreasonably withheld or delayed.  Funding and LECG Corp. agree that except as
set forth in this Section 11(b) they shall not subject the Funding Prior
Period Tax Reserve, the Funding Account or any portion thereof , to any
encumbrance or claim of any type or nature whatsoever.  Funding and LECG Corp. shall not transfer
the Funding Account to any other person without the prior written consent of
TCEP.

(iii)          Within 15 days following the end of
each month, from the Closing Date until the Funding Account is closed, in
accordance with the provisions of this Section 11(b), LECG Corp. and
Funding will provide TCEP with a copy of any statement of account or other
notice, statement or correspondence of any kind relating to the Funding
Account.  Notwithstanding the foregoing,
LECG Corp. shall make reasonable efforts to cause the bank where the Funding
Account is held to provide copies of all account statements and notices to TCEP
at the same time as such statements and notices are provided to LECG Corp.  Upon the written request of TCEP, LECG Corp.
and Funding will make available all books and records relating to the Funding
Account for examination and copying by TCEP and its representatives, at TCEP’s
sole expense, and will provide TCEP with reasonable access to all Funding and
LECG Corp. personnel who have access to, or information regarding, the Funding
Account.  On the Closing Date, LECG
Corp. will issue a receipt to TCEP for the funds in the Funding Account.  Within two (2) business days after the
payment of the Final Tax Distribution, LECG Corp. will provide evidence
reasonably satisfactory to TCEP that the portion of the Final Tax Distribution
allocable to Funding has been deposited in the Funding Account.

(iv)          Any amounts remaining in the Funding
Account as of September 30, 2004, or as of some other date as the parties agree
in writing, will be known as the “Remaining Funding Tax Reserve.”

(c)            LECG Corp. and Funding will retain for a period of not less than
four (4) years and make available to TCEP and, at TCEP’s request, to any taxing
authority all information, records and documents in the possession of LECG
Corp. reasonably requested relating to Tax Returns or Taxes of Funding for
which TCEP is responsible.

 

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                                (d)           In the event that LECG Corp. or Funding receives a refund of any
Taxes or other amounts paid by or on behalf of Funding for any period or portion of a period ending on or before the Closing
Date, LECG Corp. or Funding, as appropriate, will promptly pay such refund to TCEP.

12.           Indemnification by LECG Corp.

LECG Corp. agrees to
defend, indemnify and hold TCEP harmless from and against, and will reimburse
TCEP on demand for, any loss, damages, claim or expense (including attorneys’
fees and costs of investigation) incurred by TCEP at any time after the Closing
Date, with respect to:

(a)           Any and all liabilities of Funding of
any nature, whether accrued, absolute, contingent, or otherwise arising after
the Closing Date.

(b)           Any and all damage or deficiency
resulting from any misrepresentation, breach of warranty, or nonfulfillment of
any obligation on the part of LECG Corp. or Funding under this Agreement,
including, without limitation, disbursements from the Funding Account not in
accordance with the terms of this Agreement, or from any misrepresentation in,
or omission from, any certificate, statement, or other instrument furnished or
to be furnished to TCEP pursuant to this Agreement.

13.           Additional LECG Corp. Covenants

(a)           Within 30 days after the Closing
Date, LECG Corp. will cause Funding to change its name to “LECG Funding
Corporation.”

(b)           LECG Corp. shall maintain Funding as
a wholly-owned subsidiary and shall cause Funding to maintain LECG as a
wholly-owned subsidiary, for an indefinite period, provided however that for a
period of at least one (1) year following the consummation of the TCEP
Exchange, the Corporation shall cause Funding to maintain assets of a fair
market value not less than the fair market value of the assets held by Funding
on the date of the TCEP Exchange.  

14.           Notices

Any notices under this
Agreement will be deemed sufficiently given by one party to another if in
writing and if and when delivered personally, sent by facsimile transmission or
sent by reputable express courier service (charges prepaid) addressed as
follows:

If to LECG Corp.
or to Funding Subsequent to the Closing Date:

 

 

                                LECG
Corporation

                                2000
Powell Street, Suite 600

                                Emeryville,
California 94608

                                Attention:  Chief Financial Officer

                                Fax:         (510) 653-9898

 

 

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With a copy to:    LECG, LLC

 

                                33
West Monroe Street, Suite 1850

                                Chicago,
IL 60603

                                Attention:  Marvin A. Tenenbaum, Esq.

                                Fax:         (312) 267-8220

 

If to TCEP or to
Funding Prior to the Closing Date:

 

                                Thoma
Cressey Fund VII, L.P.

                                Thoma
Cressey Friends Fund VII, L.P.

                                Suite
2930

                                1
Embarcadero Center

                                San
Francisco, CA 94111

                                Attention:  William Liebeck

                                Fax:  (415) 392-6480

 

With a copy to:    Hogan & Hartson, L.L.P.

 

                                555 13th
Street, N.W.

                                Washington, DC 
20004-1109

                                Attention:  James A. Hutchinson, Esq.

                                Fax:  (202) 637-5910

 

15.           Miscellaneous

(a)           This Agreement will be binding upon
and will inure to the benefit of each of the parties and their respective
successors and assigns.

(b)           This Agreement constitutes the entire
agreement among the parties pertaining to the subject matter of this Agreement
and supersedes all prior agreements and understandings of the parties in
connection with that subject matter.

(c)           This Agreement will be governed by
and construed in accordance with the laws of the State of California.

(d)           Notwithstanding any investigations by
or on behalf of LECG Corp. at any time, all of the terms, conditions,
warranties and representations contained in this Agreement will survive
delivery by LECG Corp. of the consideration to be given by it under this
Agreement and delivery by TCEP of the consideration to be given by it under the
Agreement, will survive the Closing Date and for one year after the Closing
Date, except for (i) the representations and warranties set forth in Sections
6(a) and 6(b), each of which will survive indefinitely and (ii) the
representations and warranties set forth in Section 6(f) regarding
Taxes, which will survive the Closing Date and for four (4) years after the
Closing Date.

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

 

11

 

(f)            Each part of this Agreement is
intended to be severable.  If any one or
more of the covenants, agreements, provisions or terms of this Agreement shall
for any reason whatsoever be held invalid, unenforceable or inapplicable to any
party or circumstance, the invalidity, unenforceability or inapplicability to
any party or circumstance of any such covenant, agreement, provision or term of
this Agreement will in no way affect the validity or enforceability of the
other provisions of this Agreement or the applicability of such covenant,
agreement, provision or term to other parties or circumstances.

(g)           Each party’s obligation under this
Agreement is unique.  If any party
should breach its covenants under this Agreement, the parties each acknowledge
that it would be extremely impracticable to measure the resulting damages;
accordingly, the nonbreaching party or parties, in addition to any other
available rights or remedies, may sue in equity for specific performance, and
each party expressly waives the defense that a remedy in damages will be
adequate.

(h)           Each party to this Agreement, upon
the request of the other, agrees to perform any further acts and execute and
deliver any documents which may be reasonably necessary to carry out the
provisions of this Agreement.

[Signatures follow on a separate
page]

 

 

12

 

IN WITNESS WHEREOF, each
of the parties has caused this Agreement to be executed on its behalf by its
duly authorized officers or partners, all as of the date first written above.

LECG Corporation,

a Delaware
corporation

 

By:  ______________________________

        David
J. Teece

Its:   Chairman

 

Thoma Cressey Fund VII, L.P.,

a Delaware limited
partnership

 

By:  TC Partners VII, L.P.,

        Its General Partner

 

                By:  Thoma Cressey Equity Partners, Inc.

                        Its General Partner

 

                                By:  ______________________________

                                        William W. Liebeck

                                        Authorized Signatory

 

Thoma Cressey Friends Fund VII, L.P.,

a Delaware limited
partnership

 

By:  TC Partners VII, L.P.,

        Its General Partner

 

                By:  Thoma Cressey Equity Partners, Inc.

                        Its General Partner

 

                                By:  ______________________________

                                        William W. Liebeck

                                         Authorized Signatory

 

TCEP/LECG Funding Corporation,

a Delaware
corporation

 

By:  _______________________________

        William W. Liebeck

Its:    President

 

 

 

 

 

13Exhibit 10.48
 
AGREEMENT AND PLAN OF MERGER
 
                    This Agreement and Plan of Merger (the “Agreement”), dated as of November _____, 2003, is entered into by and among LECG Holding Company, LLC, a California limited liability company (“Holding”), TCEP/LECG Funding Corporation, a Delaware corporation (“Funding”), and LECG Corporation, a Delaware corporation (“LECG Corp.”).
 
RECITALS
 
                    A.                All of the outstanding Common and Preferred Units of Holding are owned sixty-one percent (61%) by LECG Corp. and thirty-nine percent (39%) by Funding.  LECG Corp. is the sole shareholder of Funding.  There are no other outstanding interests in Holding.
 
                    B.                 Holding, LECG Corp., Funding and certain other persons are parties to an Omnibus Plan of Reorganization attached hereto as Exhibit A and incorporated herein by this reference (the “Omnibus Plan”), that contemplates the transactions described in this Agreement and clarifies that this Agreement is part of an overall reorganization of Holding in anticipation of an initial public offering by LECG Corp.  Terms not otherwise defined herein will have the meanings set forth in the Omnibus Plan.
 
                    C.                 LECG Corp., in its capacity as the owner of sixty-one percent (61%) of the Common Units of Holding and as the sole shareholder of Funding, subject to the conditions of this Agreement, has determined that the Merger (as defined below) is in the best interests of  LECG Corp., Funding and Holding.
 
                    D.                Funding, in its capacity as the owner of thirty-nine percent (39%) of the Common Units of Holding and as the entity into which Holding will be merged, subject to the conditions of this Agreement, has determined that the Merger is in the best interests of Funding and Holding.
 
                    NOW, THEREFORE, in consideration of the covenants and agreements contained herein, the parties hereto agree as follows:
 
ARTICLE I
THE MERGER
 
                    1.1               The Merger.  In accordance with the provisions of this Agreement, the Delaware General Corporation Law (the “DGCL”) and the Beverly-Killea Limited Liability Company Act, codified in the California Corporations Code, Section 17000 et  seq. (the “Act”), at the Effective Time (as defined in Section 1.5 hereof), Holding will be merged with and into Funding (the “Merger”) and the separate limited liability company existence of Holding will cease.  Funding will be the surviving entity in the Merger (sometimes referred to hereinafter as the “Surviving Entity”) and will continue its existence under the laws of the State of Delaware.  The name of the Surviving Entity will be “LECG Funding Corporation.”  The Merger will have the effects set forth in the DGCL and the Act.
 
1

 
                    1.2.              Certificate of Incorporation.  The Certificate of Incorporation of Funding, as amended by the certificate of merger to be filed with the Secretary of State of the State of Delaware pursuant to Section 1.5 to change the name of Funding as set forth in Section 1.1, from and after the Effective Time, will be the Certificate of Incorporation of the Surviving Entity until thereafter amended as provided by law and by such Certificate of Incorporation.
 
                    1.3.              Bylaws.  The bylaws of Funding, as in effect immediately prior to the Effective Time will, from and after the Effective Time, be the bylaws of the Surviving Entity until thereafter amended as provided by law and by such bylaws.
 
                    1.4.              Board of Directors and Officers.
 
                                         a.                 The Board of Directors of Funding immediately prior to the Effective Time will be the Board of Directors of the Surviving Entity as of the Effective Time and each of the Directors will serve until their respective successors are duly appointed or elected in accordance with applicable law and the Certificate of Incorporation and bylaws of Funding.
 
                                         b.                 The officers of Funding immediately prior to the Effective
Time will be the officers of the Surviving Entity as of the Effective Time and will serve in such capacities until their successors are duly appointed or elected in accordance with applicable law and the Certificate of Incorporation and bylaws of Funding.
 
                    1.5.              Effective Time; Conditions.  On November _____, 2003 or at such other time as Holding and Funding may agree, and provided that this Agreement is not terminated under Section 3.1 hereof, a certificate of merger, dated as of November _____, 2003, complying with the DGCL will be filed with the Secretary of State of the State of Delaware in accordance with the DGCL, and a certificate of merger, dated as of November _____, 2003, on a form prescribed by the Secretary of State of the State of California, will be filed with the Secretary of State of the State of California in accordance with the Act.  The Merger will become effective at ____:____ _____.m. Eastern time on November _____, 2003 (the “Effective Time”).
 
ARTICLE II
CONVERSION OF SHARES
 
                    2.1.              Funding Common Units.  Upon the Merger of Holding into Funding, Funding’s Common and Preferred Units in Holding will not be converted into interests, shares or other securities of Funding.  In consideration for its Common Units in Holding, Funding will receive all of the assets and liabilities of Holding, subject to the assumption of certain liabilities by LECG Corp. as provided in the Omnibus Plan and as set forth in Section 2.4 hereof.  As of the Effective Time, Funding’s Common and Preferred Units in Holding will be cancelled and will cease to exist, and the certificate that immediately prior to the Effective Time represented Funding’s Common and Preferred Units in Holding will be marked “Cancelled.”
 
2

 
                    2.2               LECG Corp. Common Units.  Upon the Merger of Holding into Funding, LECG Corp.’s Common and Preferred Units in Holding will not be converted into interests, shares or other securities in Funding.  In consideration for its Common Units in Holding, LECG Corp. as the sole shareholder of Funding, will receive benefits as a result of the Merger as a consequence of Funding’s receipt of all of the assets of Holding.  As of the Effective Time, LECG Corp.’s Common and Preferred Units in Holding will be cancelled and will cease to exist, and the certificate that immediately prior to the Effective Time represented LECG Corp.’s Common and Preferred Units in Holding will be marked “Cancelled.”
 
                    2.3               Funding Shares.  No shares or other interests in Funding will be issued or exchanged upon the Merger of Holding into Funding.
 
                    2.4               LECG Corp.’s Assumption of Certain Liabilities of Holding.  Notwithstanding Funding’s assumption of the liabilities of Holding as set forth in Section 2.1 hereof, upon the Merger of Holding into Funding, LECG Corp. will assume certain liabilities of Holding as set forth in the Omnibus Plan, including without limitation, the obligations (i) to pay Holding’s tax liabilities with the Internal Revenue Service and the California Franchise Tax Board and (ii) to make the Final Tax Distribution and the Retained Earnings Payout, as those terms are defined in the Omnibus Plan.
 
ARTICLE III
TERMINATION AND AMENDMENT
 
                    3.1.              Termination.  This Agreement may be terminated and the Merger contemplated herein may be abandoned at any time prior to the Effective Time by the mutual written consent of Holding, Funding and LECG Corp.  If this Agreement is terminated and the Merger is abandoned in accordance with this Section 3.1, there will be no liability on the part of any of the parties hereto.
 
                    3.2.              Amendment.  This Agreement may not be amended other than pursuant to an agreement in writing signed by Holding, Funding and LECG Corp.
 
ARTICLE IV
MISCELLANEOUS
 
                    4.1.              Governing Law.  This Agreement will be governed by the laws of the State of Delaware.
 
                    4.2               Counterparts; Facsimile Execution.  This Agreement may be executed in multiple counterparts, each of which will be deemed to be an original, but all of which will constitute one and the same agreement.  Executed counterparts delivered by facsimile transmission will be binding as evidence of such party’s agreement hereto and acceptance hereof.
 
 
(INTENTIONALLY BLANK)
 
 
3

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

LECG
Holding Company, LLC,

a California limited liability company

 

By: 
_______________________________

        John
C. Burke

Its:   Chief
Financial Officer

 

TCEP/LECG
Funding Corporation,

a Delaware corporation

 

By: 
_______________________________

       
William W. Liebeck

Its:   
President

 

LECG
Corporation,

a Delaware corporation

 

By:  ______________________________

        David Kaplan

Its:  
President

 

 

4

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