Document:

Purchase Agreement dated May 31, 2006

 Exhibit 10.14 
 EXECUTION VERSION 
 PURCHASE AGREEMENT 
 This PURCHASE AGREEMENT (this “Agreement”), dated as of May 31, 2006, is entered into by and among InnerWorkings,
Inc., a Delaware corporation (“Purchaser”), Jerry Freundlich, an individual (“Jerry”), David Freundlich, an individual (“David”), and Graphography, Ltd., a New York corporation
(“Limited”; together with Jerry and David, the “Sellers”). 
 RECITALS 
 A. Sellers own all of the outstanding membership interests in Graphography Limited LLC, a New York limited liability company (the
“Company”). 
 B. The Company is engaged in the business of selling printed items and other forms of marketing materials
procurement (the “Business”). 
 C. Purchaser wishes to purchase from Sellers, and Sellers wish to sell to Purchaser, all of
the membership interests in the Company, upon the terms and subject to the conditions contained in this Agreement. 
 NOW, THEREFORE, in
consideration of the foregoing and the mutual representations, warranties, covenants and agreements herein contained, Sellers and Purchaser agree as follows: 
 1. Sale and Purchase. Subject to the terms and conditions of this Agreement, at the Closing: 
 (a) Sellers shall sell, assign, transfer and deliver to Purchaser, and Purchaser shall purchase and acquire from Sellers and take assignment and delivery from Sellers of, all the membership interests of the Company,
free and clear of all liens; and 
 (b) Sellers shall cause the Company to admit Purchaser as a member of the Company.

 2. Purchase Price. The purchase price being paid by the Purchaser to the Sellers for the transfer and delivery of the
membership interests of the Company and the rights and benefits conferred under this Agreement, shall be paid in such amounts and at such times as set forth below (the “Purchase Price”): 
 (a) $4,525,000.00 (four million five hundred twenty five thousand dollars), to be paid in cash to Sellers upon the date of the
execution of this Agreement (the “Initial Cash Portion”), by wire transfer of immediately available funds pursuant to the wire transfer instructions set forth on Schedule 2(a); 

 (b) Up to an additional $3,000,000.00 (three million dollars), to be paid to
Sellers in accordance with Section 3 below (the “Earn-Out Amount”); and 
 (c) An amount to be
determined and paid to Sellers in accordance with Section 11(a) below. 
 3. Earn-Out. 
 (a) For the purposes of this Section 3, the following terms shall have the meanings set forth below: 
 “Costs of Goods Sold” shall mean all third party production costs incurred by the Company or the Purchaser in connection
with the provision of services to Earn-Out Customers determined in accordance with generally accepted accounting principles, consistently applied; it being agreed that commissions, salaries, employee benefits, general and administrative expenses,
depreciation and amortization shall not be included in Costs of Goods Sold. 
 “Cumulative Gross Profit”
shall mean Gross Profit generated from the date hereof through and including the applicable Margin Measurement Date. 
 “Earn-Out Accounts” shall mean all accounts listed on Schedule 3(a) with customers of the Company as of the date hereof and all new accounts constituting Approved Accounts from time to time in accordance with
Section 10(b). 
 “Earn-Out Customers” shall mean the customers associated with Earn-Out
Accounts. 
 “Earn-Out Payment” shall mean any payment of the Earn-Out Amount as determined in
accordance with Section 3(e). 
 “Earn-Out Period” shall mean the period beginning on the date of
the execution of this Agreement and ending at the earliest to occur of (i) the last day of the calendar quarter in which the Margin Threshold is satisfied in full; (ii) upon payment by Purchaser to Sellers pursuant to
Section 3(g); or (iii) the fourth (4th) anniversary of the date of the execution of this Agreement. 
 “Employment Agreements” shall mean (x) the Employment Agreement of even date herewith between Jerry and the Company and (y) the Employment Agreement of even date herewith between David and the Company. 

“Gross Profit” shall mean all revenues generated by Purchaser and the Company from Earn-Out Accounts, which revenue is
determined in accordance with generally accepted accounting principles, consistently applied, less all Costs of Goods Sold related to such revenues; provided, however, any commissions paid with respect to the revenues generated
on any Earn-Out Account to sales people hired by Purchaser or the Company after the date of this Agreement that exceeds 10% of the Gross Profit generated from 

  

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such Earn-Out Account shall be deducted from the Gross Profit generated from such Earn-Out Account. Notwithstanding anything to the contrary contained in
this definition, the revenue recognition policy to be used in determining Gross Profit shall be the same as the current recognition policy of the Purchaser which is that revenue is recognized when the product is shipped from a third party to the
customer, which is when title transfers. 
 “Margin Measurement Period” shall mean each calendar quarter
during the Earn-Out Period. 
 “Margin Measurement Date” shall mean the last day of each Margin Measurement
Period. 
 “Margin Threshold” shall mean the Gross Profit during the Earn-Out Period in an amount equal to
$12,000,000.00 (twelve million dollars). 
 (b) Within ten (10) days following the close of the books of the
Company or the Purchaser for each Margin Measurement Period, and in no event later than thirty (30) days following each Margin Measurement Date, Purchaser shall provide to the Sellers a statement of the Gross Profit for such Margin Measurement
Period (the “Gross Profit Statement”), detailing, by each Earn-Out Account, Purchaser’s calculation of the Gross Profit for such Margin Measurement Period. The Gross Profit Statement shall also set forth the Cumulative Gross
Profit. The Purchaser shall provide to Sellers and their representatives copies of such records and work papers created in connection with preparation of the Gross Profit Statement which are reasonably required to support such Gross Profit
Statement. Upon receipt of each such Gross Profit Statement, Sellers shall be entitled to object to the calculation of Gross Profit by delivery to Purchaser of a notice of objection (a “Notice of Objection”). If Sellers fail to
deliver a Notice of Objection to Purchaser within twenty (20) days following Sellers’ receipt of the Gross Profit Statement, the determination of Gross Profit by the Purchaser as set forth in the Gross Profit Statement shall be final and
binding on the parties hereto. 
 (c) If Sellers timely deliver a Notice of Objection to the Purchaser, then any dispute shall
be resolved as follows: 
  

	 	(i)	Sellers and Purchaser shall promptly endeavor to negotiate in good faith in an attempt to agree upon the amount of the Gross Profit. In the event that a written agreement
determining the amount of the Gross Profit has not been reached within ten (10) business days after the date of receipt by the Purchaser of Sellers’ Notice of Objection, the Sellers and the Purchaser shall each select one
(1) reputable accounting firm. The two (2) accounting firms selected by the Sellers and Purchaser shall jointly choose one (1) reputable accounting firm with whom neither the Purchaser and its principals or any affiliate of any of
them, nor the Sellers or its principals or any affiliate of any of them have any relationship to adjudicate the determination of the Gross Profit, which accounting firm shall serve as the arbiter for the dispute over the calculation of Gross Profit
(the “Arbiter”). Upon the selection of the Arbiter, each of the Purchaser’s and Seller’s determination of the Gross Profit shall be submitted to the Arbiter. 

  

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	 	(ii)	The Arbiter shall be directed to render a written report on the unresolved disputed issues with respect to the Gross Profit as promptly as practicable, and to resolve only those
issues of dispute set forth in the Notice of Objection. Sellers and Purchaser shall each furnish to the Arbiter such work papers, schedules and other documents and information relating to the unresolved disputed issues as the Arbiter may reasonably
request. The Arbiter shall establish the procedures it shall follow (including procedures regarding to the presentation of materials supporting each party’s position) giving due regard to the mutual intention of the Purchaser and Sellers to
resolve each of the disputed items and amounts as accurately, quickly, efficiently and inexpensively as possible. The resolution of the dispute and the calculation of the Gross Profit shall be final and binding upon each party hereto. The fees and
expenses of the Arbiter shall be borne exclusively by the party whose proposal for the Gross Profit is furthest from the final determination of the Gross Profit by the Arbiter.  

 Each date on which the Gross Profit is finally determined shall be referred to herein as a “Margin Settlement Date”. 
 (d) On the date that a Gross Profit Statement is delivered to the Sellers reflecting that an Earn-Out Payment (as determined in accordance
with Section 3(e) below) is due, Purchaser shall pay to the Sellers the applicable Earn-Out Payment (as determined in accordance with Section 3(e) below), together with simple interest accrued on such Earn-Out Payment at a
rate equal to six percent (6%) per annum from the date of this Agreement until the date of payment. Notwithstanding the foregoing, if an Earn-Out Payment becomes due and payable to the Sellers after the resolution of a dispute pursuant to
Section 3(c) above, within three (3) business days of the Margin Settlement Date, Purchaser shall pay to the Sellers the applicable Earn-Out Payment, together with simple interest accrued on such Earn-Out Payment at a rate equal to
six percent (6%) per annum from the date of this Agreement until the date of payment. All payments to the Sellers pursuant to this Section 3(d) shall be made by wire transfer in accordance with wire transfer instructions provided to
Purchaser by the Sellers. Sellers confirm and agree that Purchaser may conclusively rely on wire transfer instructions provided by any Seller. 
 (e) The applicable Earn-Out Payments shall be determined as follows: 
  

	 	(i)	Upon Cumulative Gross Profit equaling $5,000,000.00 (five million dollars) on or prior to the second (2nd) anniversary of the date of this Agreement, the Purchaser shall
pay the Sellers in accordance with the procedures and on the date set forth in Section 3(d), an Earn-Out Payment in an amount equal to $1,000,000.00 (one million dollars); 

  

	 	(ii)	 Upon Cumulative Gross Profit equaling $7,500,000.00 (seven million five hundred thousand dollars) on or prior to the third (3rd) anniversary of the date
of this Agreement, the Purchaser shall pay the Sellers in accordance with the procedures and on the date set forth in Section 3(d), an Earn-Out Payment in an amount equal to $2,000,000.00 (two million dollars) minus 

  

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the Earn-Out Payment, if any, to which Sellers have been paid pursuant to Section 3(e)(i); and 

  

	 	(iii)	Upon Cumulative Gross Profit equaling $12,000,000.00 (twelve million dollars) on or prior to the fourth (4th) anniversary of the date of this Agreement, the Purchaser
shall pay the Sellers in accordance with the procedures and on the date set forth in Section 3(d), an Earn-Out Payment in an amount equal to $3,000,000.00 (three million dollars) minus the Earn-Out Payment(s), if any, to
which Sellers have been paid pursuant to Sections 3(e)(i) and (ii).  

 (f) In the event that the
Company, Jerry or David refers or jointly pitches an account to or with the Purchaser or another company which is owned directly or indirectly by the Purchaser (the Purchaser or such other company is hereinafter referred to as an
“InnerWorkings Company”) which becomes an account of an InnerWorking Company, it is agreed that a certain percentage of the revenue generated from such account, as determined in accordance with the Purchaser’s existing policies
and procedures (as such policies and procedures may be amended or supplemented from time to time), shall be included in the Company’s Gross Profit for purposes of calculating the Earn-Out Payments. Purchaser shall notify Jerry or David in
writing as to the percentage of the revenue generated from any such account that will be included in Gross Profit prior to agreeing to perform services for such account, and in each instance, none of the Purchaser, the Company, Jerry or David shall
agree to perform services for such account prior to the determination of such percentage. 
 (g) Upon the occurrence and
continuance of any one or more of the following events of default, the sum of $3,000,000.00 (three million dollars) less the amount of any of the Earn-Out Amount already paid to the Sellers, together with simple interest accrued on
such payment at a rate equal to six percent (6%) per annum from the date of this Agreement until the date of payment, shall become immediately due and payable, all without any notice of any kind except as specified below: 
  

	 	(i)	either Jerry’s or David’s employment with the Company is terminated by the Company without Cause pursuant to his Employment Agreement; 

  

	 	(ii)	either Jerry or David terminates his employment with the Company for Good Reason pursuant to his Employment Agreement; 

  

	 	(iii)	Purchaser fails to make an Earn-Out Payment when due pursuant to the terms of this Agreement or is in material breach of Section 12, which failure or breach is not cured
within twenty (20) days of written notice of default; provided, however, if, at the time of any such failure or breach, any of the events set forth in clause (iv) below shall have occurred, no such notice shall be required;

  

	 	(iv)	 Purchaser makes a general assignment for the benefit of its creditors, the adjudication in bankruptcy of Purchaser, or Purchaser shall commence any voluntary case
or other proceeding seeking liquidation, reorganization or 

  

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other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect, the filing of any answer
or other pleading admitting the material allegations of any petition filed against Purchaser in any bankruptcy, insolvency or other such proceeding; or the filing of a petition against Purchaser under any of the provisions of any bankruptcy laws of
the United States or similar laws of any jurisdiction and the failure of such petition to be dismissed within thirty (30) days, the petition for, or the appointment of, or possession by, a custodian, receiver, liquidator, assignee, trustee or
sequestrator (or other similar official) of Purchaser or any substantial part of its properties or assets, or Purchaser shall fail generally to pay its debts as they become due, or shall take any corporate action to authorize any of the foregoing;
or 

  

	 	(v)	Purchaser shall have instituted proceedings for its dissolution or liquidation; or Purchaser shall have been dissolved by operation of law; or any resolution of Purchaser has been
adopted to approve the dissolution or liquidation of Purchaser or any meeting has been called to adopt such resolution. 

 The
amount paid, if any, by the Purchaser following an event of default described in this Section 3(g) shall constitute liquidated damages with respect to such event of default, and upon such payment by the Purchaser, the Purchaser’s
obligations under this Section 3 shall terminate. 
 4. Representations and Warranties about the Sellers. Each
Seller severally represents and warrants to the Purchaser as to himself or itself as follows: 
 (a) Authority. Such
Seller has full power, right and authority to enter into and perform its obligations under this Agreement, the Employment Agreement, as applicable, and each of the other agreements, instruments or documents entered into in connection with this
Agreement (collectively, the “Transaction Documents”) to which it is a party. 
 (b) Enforceability.
This Agreement and each of the Transaction Documents to which such Seller is a party have been duly executed and delivered by such Seller and are the valid and binding obligation of such Seller and are enforceable against such Seller in accordance
with their respective terms, except as enforcement may be limited by general principles of equity, whether applied in a court of law or a court of equity and by bankruptcy, insolvency and similar laws affecting creditors’ rights and remedies
generally. No permits, approvals or consents of or notifications to (a) any governmental entities or (b) any other persons are necessary in connection with the execution, delivery and performance by such Seller of this Agreement and the
Transaction Documents to which such Seller is a party and the consummation by such Seller of the transactions contemplated hereby and thereby. 
 (c) Transaction Not a Breach. Neither the execution and delivery of this Agreement and the Transaction Documents by such Seller, nor the performance by such Seller of the transactions contemplated hereby or
thereby will violate or conflict with, or result in the breach of any of the terms, conditions, or provisions of any contract, agreement, mortgage, or 

  

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other instrument or obligation of any nature to which such Seller is a party or by which such Seller is bound. 
 (d) Brokers or Finders. Except as set forth on Schedule 4(d), which fees and expenses will be paid by Sellers, neither such
Seller nor any of its representatives has incurred any obligation or liability, contingent or otherwise, for brokerage or finders’ fees or agents’ commissions or other similar payments in connection with the transactions contemplated by
this Agreement. 
 (e) Membership Interests. Such Seller holds of record and owns beneficially the Percentage Interests
in the Company (as such term is defined in the Company’s Limited Liability Company Agreement dated as of January 1, 2002, the “Limited Liability Company Agreement”) set forth next to his or its name in Schedule
4(e), free and clear of any restrictions on transfer (other than any restrictions under the Securities Act and state securities laws), taxes, liens, options, warrants, purchase rights, contracts, commitments, equities, claims and demands. Such
Seller is not a party to any option, warrant, purchase right or other contract or commitment that could require such Seller to sell, transfer or otherwise dispose of any membership interests of Company, (other than this Agreement). Such Seller is
not a party to any voting trust, proxy or other agreement or understanding with respect to the voting of any membership interests of the Company. 
 5. Representations and Warranties about the Company. Each of the Sellers hereby represent and warrant, jointly and severally, to the Purchaser as follows: 
 (a) Organization and Authority. The Company is a limited liability company duly formed and validly existing under the laws of the
State of New York and is in good standing under such laws. Sellers own free and clear of all liens 100% of the membership interests of the Company. There are no outstanding options or warrants with respect to the membership interests of the Company,
nor are there any outstanding securities which are convertible or exchangeable into membership interests of the Company. There are no voting trusts, shareholder agreements or other agreements, instruments or rights of any kind or nature whatsoever
outstanding with respect to the membership interests of the Company. The Company is duly authorized to conduct business and is in good standing under the laws of each jurisdiction where such qualification is required. The Company has full limited
liability company power and authority to carry on the businesses in which it is engaged and to own and use the properties owned and used by it. Schedule 5(a) lists the managers and officers of the Company. 
 (b) Capitalization. The entire authorized membership interests of the Company consists of Percentage Interests constituting 100%.
The Percentage Interests are owned and held of record by the respective Sellers as set forth in Schedule 4(e). There are no outstanding or authorized options, warrants, purchase rights, subscription rights, conversion rights, exchange rights
or other contracts or commitments that could require Company to issue, sell or otherwise cause to become outstanding any of its membership interests. There are no outstanding or authorized stock appreciation, phantom stock or similar rights with
respect to Company. There are no voting trusts, proxies or other agreements or understandings with respect to the voting of the membership interests of Company. As of the Closing, the Company has no outstanding indebtedness to any lender for
borrowed money. 
  

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 (c) Transaction Not a Breach. Neither the execution and delivery of this Agreement
and the Transaction Documents, nor the consummation of the transactions contemplated hereby or thereby will violate or conflict with, or result in the breach of (i) any of the terms, conditions, or provisions of the Company’s limited
liability company agreement or certificate of formation, (ii) any contract, agreement, mortgage, or other instrument or obligation of any nature to which the Company is a party or by which the Company is bound, or (iii) any statute,
ordinance, rule, regulation, restriction, judgment, order, writ, injunction, decree, determination or award that the Company may be subject. Except as set forth on Schedule 5(c), no filing, declaration or registration with, or consent,
approval, order or authorization of, any governmental authority or other person is required to be made or obtained by the Company in connection with the consummation of the transactions contemplated by this Agreement. 
 (d) Financial Statements. Sellers have delivered to Purchaser an unaudited combined balance sheet of the Company and Limited as at
December 31, 2005 (the “Balance Sheet”) and the related unaudited combined statements of income, stockholder’s equity and members’ capital and cash flows for the fiscal year thereon, compiled by Berdon LLP, certified
public accountants in accordance with the income tax basis of accounting (the “2005 Financials”). The 2005 Financials fairly present, in all material respects, the financial condition and results of operations of the Business as at
December 31, 2005 and for the calendar year then ended. The 2005 Financials have been prepared in accordance with the income tax basis of accounting and have not been prepared in accordance with generally accepted accounting principles. Except
as set forth on Schedule 5(i), since the date of the Balance Sheet, the Company has not made any distribution of profits to its members. Berdon LLP is not independent of the Company and Limited in that Stan Freundlich, the brother of Jerry,
is the senior partner of such firm. 
 (e) Customers and Vendors. 
  

	 	(i)	The 2005 customer list set forth on Schedule 5(e)(i) represents a true, complete and correct list of all customers of the Company that generated revenues in 2005, together
with revenues generated during 2005 from such customer. To the knowledge of Sellers, except as set forth on Schedule 5(e)(i), (i) there are no material outstanding disputes with any customer included on the 2005 customer list and
(ii) no such customer has terminated or materially altered its relationship with the Company or has stated its intention not to continue to do business with the Company or to terminate or materially alter its relationship with the Company.

  

	 	(ii)	The vendor list set forth on Schedule 5(e)(ii) represents a true, complete and correct list of all vendors to which the Company made payments during 2005 and for the four
month period ended April 30, 2006. To the knowledge of Sellers, (i) there are no material outstanding disputes with any such vendor included on Schedule 5(e)(ii) and (ii) no such vendor has terminated or materially altered its
relationship with the Company or has stated its intention not to continue to do business with the Company or to terminate or materially alter its relationship with the Company. 

  

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 (f) Compliance With Laws. The Company and the operation of the Business are in
compliance in all respects with all applicable federal, state, local and all other applicable laws and regulations. Neither the Company nor any Seller has received any written notice or other communication from any governmental body or any other
person regarding any actual or alleged violation of or failure to comply with any term or requirement of applicable law. The Company holds and is in compliance in all material respects with all licenses, permits and authorizations necessary for the
ownership and use of its assets and the operation of the business, as presently conducted. No such license, permit or authorization is subject to termination or modification as a result of the transactions contemplated hereby and no filings,
consents or approvals are necessary to assign or transfer any of such licenses, permits and authorizations to Purchaser and all of such licenses, permits and authorizations will be in full force and effect following consummation of the transactions
contemplated hereby. 
 (g) No Undisclosed Liabilities. Except as set forth in Schedule 5(g) or to the extent
reflected and accrued or reserved for on the Balance Sheet, the Company has no debts, liabilities or obligations of any nature, whether accrued, absolute, contingent, direct, indirect, perfected, inchoate, unliquidated or otherwise (collectively,
“Liabilities”), except and to the extent of: (i) Liabilities under Contracts set forth on Schedule 5(g) or under contracts that are not required to be so set forth and which Liabilities are to be performed in the
ordinary course of business and are apparent from the plain reading of such contracts; (ii) Liabilities which were incurred in the ordinary course of business of the Company since the date of the Balance Sheet, and (iii) Liabilities which
would not, individually or in the aggregate, have a material adverse affect on the Business. 
 (h) Taxes. The Company
has filed or caused to be filed on a timely basis all returns, reports, statements, schedules or other information (collectively, “Tax Returns”) with respect to the determination, assessment, collection or payment of any federal,
state, county, local, foreign or other income, gross receipts, ad valorem, franchise, profits, sales or use, transfer, excise, communications, real or personal property, capital stock, license, payroll, wage or withholding, employment, social
security, alternative or add-on minimum, estimated and other taxes of any kind (including any deficiencies, penalties and interest attributable thereto), whether disputed or not (collectively, “Taxes”), that are or were required to
be filed pursuant to applicable laws or regulations. All Tax Returns filed by the Company are true, correct and complete. The Company has paid all Taxes that are due and payable (whether or not show on a Tax Return) and has made adequate provision
on its books and records for the payment of all Taxes that are not yet due and payable to the extent that such an accrual would be required under the Company’s historical method of accounting as of the time of the preparation of such books and
records. All Taxes that the Company is or was required by applicable laws or regulations to withhold, deduct or collect have been duly withheld, deducted and collected and, to the extent required, have been paid to the proper governmental authority
or other person in accordance with applicable law. Neither the Sellers nor the Company is a party to any action or proceedings by any governmental authority for the collection or assessment of Taxes. The Company has not entered into any agreement
making it liable for the Taxes of any other party. Except as set forth on Schedule 5(h), the Company is currently, and has for its entire existence, been taxed as a partnership for all applicable income tax purposes and no election has been
filed to treat the Company as a corporation for federal, state, or local income tax purposes. 
  

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 (i) No Material Adverse Change. Except as set forth on Schedule 5(i), since
the date of the Balance Sheet, (i) the Company has conducted the Business only in the ordinary course of business, (ii) the Company has incurred no liabilities other than in the ordinary course of business, (iii) there has not been
any material adverse change in the business, operations, assets, results of operations or condition (financial or otherwise) of the Company, and (iv) no event has occurred or circumstance exists that could reasonably likely result in such a
material adverse change. Without limitation on the foregoing, since the date of the Balance Sheet, except as set forth on Schedule 5(i), the Company has not: (i) purchased, redeemed or otherwise acquired any equity securities of the
Company or declared or paid any dividend or other distribution in respect of its equity securities; (ii) paid any bonuses or compensation other than regular salary payments or commission, increased salaries or commissions or paid any debt of
the Company to any member, manager, officer or employee; (iii) sold, leased or otherwise disposed of any assets or other property of the Company; or (iv) loaned or advanced funds to any person other than sales to customers on credit in the
ordinary course of business or discharged or satisfied any material liability other than in the ordinary course of business. 
 (j) Contracts; No Defaults. Schedule 5(j) contains an accurate and complete list, and Sellers have delivered to Purchaser accurate and complete copies, of all material agreements, licenses, leases, offer letters, employment
arrangements, and other contracts and agreements to which the Company is a party, including, without limitation, all agreements or other contracts which have been assigned to the Company pursuant to the Conveyance Document (collectively, the
“Contracts”). Notwithstanding the foregoing, commitments for production expenses, estimates and purchase orders given in the ordinary course of business relating to the execution of projects are not required to be set forth on
Schedule 5(j). Each Contract is in full force and effect and is valid and enforceable in accordance with its terms. Except as set forth on Schedule 5(j), no consent, authorization or approval is required under any Contract in
connection with the consummation of the transactions contemplated by this Agreement. The Company is not in material breach of, or in default in any material respect under, the terms of any Contract to which it is a party or by which it has any
rights or by which it is bound; provided, however, the Company has, consistent with past practice, paid its vendors on dates past due dates set forth in invoices. Except as disclosed in the proviso in the prior sentence, no condition exists or event
has occurred that with or without notice or the passage of time or both, would constitute a material breach of, or a material default under any Contract by the Company. To the knowledge of the Sellers, no other party to any such Contract has
breached in any material respect any provision or is in material default under any Contract. Except as set forth on Schedule 5(j), the Company has not given or received, at any time since December 31, 2005, any written notice or other
written communication regarding any actual or alleged violation or breach of, or default under, any of the Contracts. Except as set forth on Schedule 5(j), there are no pending renegotiations of any of the Contracts and the Company has not
received written notice from, and Sellers have no knowledge that a party to any Contract intends to, terminate, cancel or materially change the terms of, any such Contract. 
 (k) Intellectual Property. Schedule 5(k) contains an accurate and complete list of all patents, patent applications, trade
names, registered trademarks, applications for registered trademarks, registered service marks, domain names, applications for registered service marks, logos, registered copyrights and applications for registered copyrights, software (other than
commercially available, off-the-shelf software) and Internet domain names which are used in 

  

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connection with the operation of the business of the Company. The Company is the owner or licensee of all right, title and interest in and to each of the
Intellectual Property Assets, free and clear of all liens, claims or other encumbrances, and has the right to use without payment to any third party all of the Intellectual Property Assets. To the knowledge of Sellers, the use of the Intellectual
Property Assets by the Company in connection with the Business does not infringe on the rights of any person and no person has asserted any such claim. The term “Intellectual Property Assets” means all intellectual property owned or
licensed by the Company in which the Company has a proprietary interest, including (i) all trade names, trade marks, service marks and applications, (ii) all patents, patent applications and inventions and discoveries that may be
patentable, (iii) all registered and unregistered copyrights, (iv) all know-how, trade secrets, confidential or proprietary information, customer lists, software, technical information, data, process technology, plans and drawings, and
(v) all right in Internet web sites and internet domain names presently used by the Company. 
 (l) Title to
Assets. The Company has valid title to, and is the lawful owner of, all tangible properties and assets reflected in the Balance Sheet free and clear of all liens, claims or other encumbrances, other than statutory liens. There are no agreements
with, options, commitments or rights in favor of any person to directly, or indirectly, acquire the Business or any interest therein or, any tangible properties or assets of the Company. The Company owns, leases, licenses or otherwise has the right
to use all of the assets, properties and rights used in the Company’s business as it is currently conducted and as it has been conducted since December 31, 2004. No assets, properties or rights used by the Company are held in the name or
in the possession of any Seller. 
 (m) Real Property. The Company does not own and has not owned any real property.
The Company has a valid leasehold interest in certain real property which it holds under the lease described in Schedule 5(m) (the “Leased Real Property”) free and clear of all liens and encumbrances except for any statutory
liens. The Leased Real Property constitutes all of the facilities used or occupied by the Company in connection with the business. 
 (n) Employees/Employee Benefit Plans. 
  

	 	(i)	Schedule 5(n) contains a true and complete list of the names, rates of pay per applicable period, applicable commission rates, and titles of all current officers, directors
and employees of the Company. Except as listed on Schedule 5(j), the Company has not entered into any agreements or arrangements with any officers, directors, and employees of the Company. To the Company ‘s knowledge, each manager or
officer of the Company is currently deploying substantially all of his or her business time to the conduct of the business of the Company. The Company is not aware that any manager, officer or key employee of the Company is planning in the near
future to change his or her work hour schedule in any material respect. 

  

	 	(ii)	 Except as set forth on Schedule 5(n), the Company has no “employee benefit plan” (as such term is defined in Section 3(3) of the Employee
Retirement Income Act of 1974, as amended) or other employee benefit 

  

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plan, program or arrangement providing benefits to current or former employees (including any bonus plan, plan for deferred compensation, retirement,
severance, sick leave, employee health or other welfare benefit plan or other arrangement), that is maintained, sponsored, or contributed to by the Company. 

  

	 	(iii)	Except as set forth on Schedule 5(n), the Company does not have any obligation under any plan or otherwise to provide medical, health, life insurance or other welfare-type
benefits to currently retired or terminated or future retired or terminated employees (except for continued medical benefit coverage required to be provided under Section 4980B of the Code or as required under applicable state law).

 (o) Litigation. There are no actions, suits, proceedings, orders, claims or investigations pending (or
to the knowledge of the Sellers, currently threatened) against Sellers or the Company relating in any way to the Company or the Business. Neither the Sellers nor the Company is a party or subject to the provisions of any order, writ, injunction,
judgment or decree of any court or government authority relating in any way to the Company or the Business. Except as set forth on Schedule 5(o), there is no action, suit, proceeding or investigation by any Seller or the Company currently
pending or that any Seller or the Company intends to initiate relating in any way to the Company or the Business. 
 (p)
Bank Accounts. Schedule 5(p) contains a complete and accurate list of each bank at which the Company has an account or safe deposit box, the number of each such account or box, and the names of all persons authorized to draw on such
accounts or to have access to such boxes. 
 (q) Work In Process. Attached as Schedule 5(q) is a true, correct
and complete list of all work in process inventory of the Company as of April 30, 2006. All work in process consists of third party costs incurred in connection with the production of jobs for customers and will be invoiced and shipped to
customers by the Company in the ordinary course of business. 
 (r) Accounts Receivable. Attached as Schedule
5(r) is a true, correct and complete list of all accounts receivable of the Company as of April 30, 2006. 
 (s)
Accounts Payable. Attached as Schedule 5(s) is a true, correct and complete list of all accounts payable of the Company as of April 30, 2006. All accounts payable of the Company as of the date hereof arose in the ordinary course
of business. Sellers have disclosed to Purchaser in writing any objections, defenses or setoff rights to the accounts payable of the Company of which they are aware. 
 (t) Change of Control Payments. Neither the execution and delivery of this Agreement nor the consummation of the transactions
contemplated hereby will result in any payment (including, without limitation, severance, unemployment compensation, golden parachute, bonus or otherwise) to any manager, member or employee of the Company from the Company becoming due, materially
increasing or accelerating. 
  

 12 

 (u) Interested Party Transactions. Except as set forth in Schedule 5(u), no
current manager, officer or director of the Company or any subsidiary or any “affiliate” or “associate” (as those terms are defined in Rule 405 promulgated under the Securities Act) of any such person has had, either directly or
indirectly, a material interest in: (i) any person or entity which purchases from or sells, licenses or furnishes to the Company any goods, property, technology, intellectual or other property rights or services; or (ii) any Contract to
which the Company is a party or by which it may be bound or affected. 
 (v) Obligations to Related Parties. Except as
set forth in Schedule 5(v), (i) there are no obligations of the Company to officers, directors, managers, members, stockholders, or employees of the Company other than (a) for payment of salary for services rendered,
(b) reimbursement for reasonable expenses incurred on behalf of the Company, and (c) for other standard employee benefits made generally available to all employees (including stock option or similar agreements outstanding under any equity
incentive plan of the Company), (ii) none of the managers, members or officers of the Company, or any members of their immediate families, are indebted to the Company or have any direct or indirect ownership interest in any firm or corporation
with which the Company is affiliated or with which the Company has a business relationship, or any firm or corporation which competes with the Company, except that managers, members, officers, directors and/or stockholders of the Company may own
stock in publicly traded companies which may compete with the Company, and (iii) no manager, member or officer, or any member of their immediate families, is, directly or indirectly, interested in any material Contract with the Company (other
than employment agreements and such contracts as relate to any such person’s ownership of membership interests in the Company). The Company is not a guarantor or indemnitor of any indebtedness of any other person, firm or corporation.

 (w) Brokers or Finders. Except as set forth on Schedule 4(d), neither the Company nor any of its
representatives have incurred any obligation or liability, contingent or otherwise, for brokerage or finders’ fees or agents’ commissions or other similar payments in connection with the sale of the Company or the transactions contemplated
by this Agreement. 
 6. Representations and Warranties of the Purchaser. The Purchaser hereby represents and warrants to the
Sellers as follows: 
 (a) Authorization. Purchaser has full power, right and authority to enter into and perform its
obligations under this Agreement and each of the Transaction Documents to which it is a party. The execution, delivery and performance by Purchaser of this Agreement and each of the Transaction Documents to which it is a party have been duly and
properly authorized by all requisite corporate action in accordance with applicable law and with the amended and restated certificate of incorporation of Purchaser. 
 (b) Enforceability. This Agreement and each of the Transaction Documents to which Purchaser is a party have been duly executed and
delivered by Purchaser and are the valid and binding obligation of Purchaser and are enforceable against Purchaser in accordance with their respective terms, except as enforcement may be limited by general principles of equity, whether applied in a
court of law or a court of equity and by bankruptcy, insolvency and similar laws affecting creditors’ rights and remedies generally. No permits, approvals or consents of or notifications to (i) any governmental entities or (ii) any
other persons are necessary in connection 

  

 13 

 
with the execution, delivery and performance by Purchaser of this Agreement and the Transaction Documents and the consummation by Purchaser of the
transactions contemplated hereby or thereby. 
 (c) Transaction Not a Breach. The execution, delivery and performance
of this Agreement and the Transaction Documents by Purchaser will not violate and conflict with, or result in the breach of any of the terms, conditions, or provisions of Purchaser’s certificate of incorporation or bylaws or of any contract,
agreement, mortgage, or other instrument or obligation of any nature to which Purchaser is a party or by which Purchaser is bound. 
 (d) Brokers or Finders. Neither Purchaser nor any of its representatives have incurred any obligation or liability, contingent or otherwise, for brokerage or finders’ fees or agents’ commissions or other similar payments in
connection with the sale of the Company or the transactions contemplated by this Agreement. 
 (e) Litigation. There
are no actions, suits, proceedings, orders, claims or investigations pending (or to the knowledge of the Purchaser, currently threatened) against Purchaser with respect to this Agreement or the transactions contemplated hereby. The Purchaser is not
a party or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government authority relating in any way to the Purchaser with respect to this Agreement or the transactions contemplated hereby. 
 (f) Financial Status. Purchaser has available to it the funds required to pay the Purchase Price (including the Earn-Out Payments)
pursuant to Section 2 and Section 3 hereof and to consummate the transactions contemplated hereby. 
 7.
Closing; Deliveries. 
 (a) Closing. The closing of the transactions contemplated by this Agreement shall
take place concurrently with the execution of this Agreement (the “Closing”). 
 (b) Sellers’
Deliveries. In connection with the execution of this Agreement and the consummation of the transactions contemplated hereby, the Sellers are delivering to the Purchaser the following, all of which shall be deemed to be delivered simultaneously:

  

	 	(i)	Employment Agreements, duly executed by Jerry and David, in substantially the form attached hereto as Exhibit A. 

  

	 	(ii)	An Assignment of Membership Interests and Admission, in the form attached hereto as Exhibit B (the “Assignment of Membership Interest”), duly executed
on behalf of each Seller and the Company. 

  

	 	(iii)	A copy of the Company’s Certificate of Formation and all amendments thereto, certified by the Secretary of State of Delaware. 

  

	 	(iv)	A copy of the Company’s Limited Liability Company Agreement, and all amendments thereto certified by the secretary or an assistant secretary of the Company.

  

 14 

	 	(v)	A certified copy of a long-form good standing certificate with respect to the Company certified by the Secretary of the State of New York, as of a date not more than ten
(10) days prior to the date hereof. 

  

	 	(vi)	All of the minute books, ledgers and similar records, if any, of the Company. 

  

	 	(vii)	A properly executed affidavit of non-foreign status from each Seller. 

  

	 	(viii)	The Conveyance Document (as defined in Section 10(f) below), duly executed by the parties thereto. 

 (c) Purchaser’s Deliveries. In connection with the execution of this Agreement and the consummation of the transactions
contemplated hereby, the Purchaser is delivering to the Sellers the following, all of which shall be deemed to be delivered simultaneously: 
  

	 	(i)	The payment of the Initial Cash Portion of the Purchase Price to be paid on the date hereof pursuant to Section 2(a). 

  

	 	(ii)	A certificate of good standing as of a recent date for Purchaser from the Secretary of State of the State of Delaware. 

  

	 	(iii)	Resolutions of the Board of Directors of Purchaser authorizing the execution, delivery and performance of this Agreement and the transactions contemplated hereby, certified to by
the Secretary of Purchaser. 

 8. Non-Competition. 
 (a) Each Seller severally (and not jointly) agrees and consents that there exists valid and sufficient consideration and agrees that
during the Non-competition Period (as defined below), he or it will not, directly or indirectly, in any manner (whether as an owner, officer, director, partner, manager, employee, independent contractor, consultant or otherwise): 
  

	 	(i)	engage or participate in any other company or entity engaged in or planning to engage in the Business in the United States; or 

  

	 	(ii)	solicit, place, market, service, accept, aid, consult or do business with any customer or account of the Company that has done business with the Company within the past twelve
months, within the United States, except for the benefit of the Company. 

 (b) Each Seller severally (and not
jointly) agrees that during the Non-competition Period, he or it will not, directly or indirectly, in any manner (whether as an owner, officer, director, partner, manager, employee, independent contractor, consultant or otherwise), solicit for
employment or other services or employ or engage as a consultant or otherwise (i) any then current supplier and/or vendor in connection with a business that is competitive with the Business, or (ii) any then current employee of the
Company. 
  

 15 

 (c) For purposes hereof, the “Non-competition Period” shall mean the
period beginning on the date hereof and ending on the fifth (5th) anniversary of the date hereof. 
 (d) Notwithstanding
the foregoing, nothing in this Section 8 shall prevent the Sellers from (i) accepting employment with any company or entity which is not engaged in business competitive with the Business of the Company; or (ii) owning less than
1% of the equity of any corporation traded on any national, international, or regional stock exchange or in the over-the-counter market. 
 (e) If any Seller breaches, or threatens to commit a breach of, any of the covenants set forth in this Section 8 (the “Restrictive Covenants”), the Purchaser shall have the right and
remedy to have the Restrictive Covenants specifically enforced against such Seller by any court of competent jurisdiction, including immediate temporary injunctive relief without bond and without the necessity of showing actual monetary damages, it
being agreed that any breach or threatened breach of the Restrictive Covenants would cause irreparable injury to the Purchaser and that money damages would not provide an adequate remedy to the Company, which right and remedy is in addition to, and
not in lieu of, any other rights and remedies available to the Purchaser under law or in equity. 
 (f) If any court of
competent jurisdiction at any time deems the Restrictive Covenants, or any part hereof, unenforceable because of the duration or geographical scope of such provisions, the other provisions of this Section 8, will nevertheless stand and
to the full extent consistent with law continue in full force and effect, and it is the intention and desire of the parties that the court treat any provisions of this Agreement which are not fully enforceable as having been modified to the extent
deemed necessary by the court to render them reasonable and enforceable, and that the court enforce them to such extent. 
 (g) Each of the covenants and agreements contained in this Section 8 shall cease to have any force and effect in the event Purchaser fails to make an Earn-Out Payment when due pursuant to the terms of this Agreement, which
failure is not cured within twenty (20) days of written notice of such failure. 
 9. Indemnification. 
 (a) All representations, warranties, covenants and obligations in this Agreement shall survive the Closing and the consummation of the
transactions contemplated by this Agreement. All representations and warranties shall continue in full force and effect for eighteen (18) months after the date of this Agreement and all covenants and other obligations in this Agreement shall
continue in full force and effect indefinitely in accordance with the respective terms of such covenants and obligations. The right to indemnification based upon such representations, warranties, covenants and obligations shall not be affected by
any investigation conducted by Purchaser with respect to, or any knowledge acquired at any time with respect to the accuracy or inaccuracy of or compliance with any such representation, warranty, covenant or obligation. 
 (b) Each Seller, jointly and severally, will indemnify and hold harmless Purchaser and its directors, officers, shareholders, employees,
agents, subsidiaries and affiliates 

  

 16 

 
(collectively, the “Purchaser Indemnified Persons”), and will reimburse the Purchaser Indemnified Persons for, any loss, liability, claim,
damage or expense (including costs of investigation and defense and reasonable attorneys’ fees and expenses) arising from or in connection with: (i) any breach of any representation or warranty made by the Sellers in this Agreement or the
Schedules hereto, (ii) Taxes of the Company with respect to any period ending on or prior to December 31, 2005, or the portion of any Straddle Period (as defined in Section 11(c) hereof) ending on December 31, 2005;
(iii) Taxes of any person that the Company is liable for in a period ending on December 31, 2005 (or a portion of a Straddle Period ending on December 31, 2005) as a result of joint and several liability as a transferee or successor,
by contract, or otherwise; (iv) any breach of any covenant or obligation of the Sellers in this Agreement (other than the covenants set forth in Section 8) or the Schedules hereto; (v) any claim by any person for
brokerage or finder’s fees or commissions or similar payments based upon any agreement or understanding alleged to have been made by any such person with any Seller or the Company (or any person acting on their behalf) in connection with the
transactions contemplated by this Agreement; and (vi) any claim by any person for payment of any other expenses incurred by the Company in connection with this Agreement and the transactions contemplated hereby other than the Berdon LLP fees
described in Section 13 hereof. 
 (c) Purchaser will indemnify and hold harmless Sellers, and will reimburse
Sellers for, any loss, liability, claim, damage or expense (including costs of investigation and defense and reasonable attorneys’ fees and expenses) arising from or in connection with: (i) any breach of any representation or warranty made
by Purchaser in this Agreement or the Schedules hereto; or (ii) any breach of any covenant or obligation of Purchaser in this Agreement or the Schedules hereto. 
 (d) Sellers shall not be subject to any liability under this Section 9 (except with respect to Taxes) and no indemnification
claims shall be brought against the Sellers, absent fraud, with respect to breaches of any representations or warranties until all damages of the Purchaser Indemnified Person exceed an aggregate sum equal to one hundred fifty thousand dollars
($150,000) (the “Indemnification Basket”), at which point the Sellers will be obligated to indemnify the Purchaser Indemnified Person from and against all damages in excess of the Indemnification Basket. Notwithstanding anything to
the contrary herein, the maximum aggregate liability of Sellers for indemnity payments under this Section 9 (except with respect to Taxes) shall be an amount equal to fifty percent (50%) of the total Purchase Price paid by the
Purchaser. 
 (e) Upon notice to Sellers specifying in reasonable detail the basis therefor, Purchaser may deposit into an
interest-bearing escrow account with an independent third party acting as escrow agent, the amount to which it may be entitled under this Section 9 in lieu of payment of any amounts otherwise payable under Section 3. Sellers
shall not be responsible for any fees of the escrow agent. Upon final resolution or settlement of any claims for indemnification by a Purchaser Indemnified Person pursuant to this Section 9, Sellers and Purchaser shall deliver a joint
instruction, or the Arbiter shall deliver instruction to the escrow agent managing such escrow account to release the funds in the account in accordance with the parties’ or Arbiter’s instruction, as applicable. The exercise of such a
right of set-off by Purchaser in good faith, whether or not ultimately determined to be justified, will not constitute a breach of Section 3. Neither the exercise of, nor the failure to exercise, such right of set-off will 

  

 17 

 
constitute an election of remedies or limit Purchaser in any manner in the enforcement of any other remedies that may be available to it. 
 (f) Indemnification Procedures. 
  

	 	(i)	An indemnified party hereunder (the “Claiming Party”) shall give the indemnifying party (“Indemnifying Party”) prompt written notice of any claim
of a third party (a “Third Party Claim”) as to which the Claiming Party proposes to demand indemnification hereunder, within 20 days after learning of such Third Party Claim (or within such shorter time as may be necessary to give
the Indemnifying Party a reasonable opportunity to respond to such claim), together with a statement specifying the basis of such Third Party Claim. The Third Party Claim Notice shall (i) describe the claim in reasonable detail, and
(ii) indicate the amount (estimated, if necessary, and to the extent feasible) of the damages that have been or may be suffered by the Claiming Party. The failure to give a Third Party Claim Notice to the Indemnifying Party shall not relieve
the Indemnifying Party of any liability hereunder unless the Indemnifying Party was prejudiced thereby under this Section 9, and then only to the extent of such prejudice. The Indemnifying Party must provide written notice to the
Claiming Party that it is either (i) assuming responsibility for the Third Party Claim or (ii) disputing the claim for indemnification against it (the “Indemnification Notice”). The Indemnification Notice must be provided
by the Indemnifying Party to the Claiming Party within 30 days after receipt of the Third Party Claims Notice or within such shorter time as may be necessary to give the Claiming Party a reasonable opportunity to respond to such Third Party Claim
(such period is referred to herein as the “Indemnification Notice Period”). 

  

	 	(ii)	 If the Indemnifying Party provides an Indemnification Notice to the Claiming Party within the Indemnification Notice Period that it assumes responsibility for the
Third Party Claim, the Indemnifying Party shall have the right to assume and conduct the defense of such Third Party Claim at its or his own expense, provided, however, that in the event that the interests of the Claiming Party and the Indemnifying
Party are, or may reasonably become, in conflict with or adverse to one another with respect to such Third Party Claim, the Claiming Party may retain its own counsel at the Indemnifying Party’s expense with respect to such Third Party Claim,
provided further, however, that such expense must be reasonable in the context of the dispute. In the event the Indemnifying Party assumes and conducts the defense on behalf of the Claiming Party, the Indemnifying Party (a) shall, subject to
Section 9(d), as applicable, be deemed to acknowledge that it is responsible to the Claiming Party for any damages as a result of such Third Party Claim, and may settle such Third Party Claim, but shall not, without the consent of the
Claiming Party, agree to any settlement that does not include a provision whereby the plaintiff or claimant in the matter releases the Claiming Party from all 

  

 18 

	 	 
liability with respect thereto or agree to any relief other than money damages (and a full release related thereto). If the Indemnifying Party does not
assume the defense of such Third Party Claim in the manner provided above, or if after commencing or undertaking any such defense, fails to prosecute diligently or withdraws from such defense, the Claiming Party shall have the right to undertake the
defense or settlement thereof, and the Claiming Party may defend against, or enter into any settlement with respect to, the matter in any manner the Claiming Party reasonably may deem appropriate. In the event that (x) a final judgment or order
in favor of such third party in respect of such Third Party Claim is rendered against the Claiming Party, that is not subject to appeal or with respect to which the time to appeal has expired without an appeal having been made, or (y) such
Third Party Claim is settled in accordance with this Section 9, resulting in liability on the part of the Claiming Party, then subject to the limitations set forth in Section 9(d), the Indemnifying Party shall pay the amount
of such liability. 

  

	 	(iii)	In the event that the Indemnifying Party disputes the claim for indemnification against it, the Claiming Party shall have the right to conduct the defense and to compromise and
settle such Third Party Claim, in any manner the Claiming Party may deem appropriate. Once such dispute has been finally resolved in favor of indemnification by the Indemnifying Party by a court or other tribunal of competent jurisdiction or by
mutual agreement of the Claiming Party and Indemnifying Party, subject to the provisions of Section 9(d), the Indemnifying Party shall within 10 days of the date of such resolution or agreement, pay to the Claiming Party all damages paid
or incurred by the Claiming Party in connection therewith. 

  

	 	(iv)	Any indemnity payment due and payable by an Indemnifying Party under this Agreement shall be net of any insurance proceeds received by the Claiming Party or any of their respective
affiliates. 

  

	 	(v)	Except with respect to any loss that is the result of fraud, intentional misrepresentation or willful misconduct on the part of the other party or any of its Affiliates, each of the
parties hereto agrees that, from and after the Closing, his or its exclusive remedy with respect to any and all claims relating to breaches of representations and warranties of this Agreement shall be indemnification pursuant to
Section 9; provided, however, that nothing in this provision shall limit any equitable remedy, including injunctions and specific performance, that a party may have pursuant to this Agreement. 

 10. Other Agreements and Covenants. 
 (a) General. The parties hereto agree in case at any time after the Closing any further action is necessary to carry out the purposes of this Agreement, each of the parties hereto 

  

 19 

 
will take such further action (including the execution and delivery of such further instruments and documents) as any other party hereto reasonably may
request, all at the sole cost and expense of the requesting party (unless the requesting party is entitled to indemnification therefor under Section 9). 
 (b) New Accounts. During the Earn-Out Period, Jerry and David will not permit the Company to accept any new accounts except in
accordance with this Section 10(b). Each new customer account of the Company shall constitute an “Approved Account” in the event that such customer account was obtained by the Company or any of its current or future
employees or sales people pursuant to the policies and procedures used by the Purchaser with respect to the Purchaser’s sales personnel (as such policies and procedures may be supplemented or amended from time to time); provided
that, the Purchaser agrees to approve or reject any proposed Approved Account no later than three (3) business days after any such request; provided further, that in the event such customer account fails to produce
commissions within any 180 day period, such customer account shall no longer constitute an Approved Account unless Jerry or David, on the one hand, and the Purchaser, on the other hand, otherwise agree. In addition, either Jerry or David may provide
a written request for approval of a new customer account as an Approved Account, and the Purchaser shall approve such customer account if the Purchaser reasonably determines that such customer account satisfies the Purchaser’s then existing
policies and procedures for accepting new customer accounts. Without limitation on the foregoing, the Purchaser shall have the sole authority to determine to whom the Purchaser or the Company will extend credit, and the Sellers shall have no
recourse against Purchaser with respect to any credit decision made by Purchaser. 
 (c) Board of Managers. During the
Earn-Out Period, the Purchaser agrees that the Purchaser shall appoint Jerry and David to the board of managers of the Company so long as such individual is employed by the Company. Jerry and David acknowledge and agree that the board of managers of
the Company during the Earn-Out Period will at all times consist of at least five (5) managers and that subject to the first sentence of this Section 10(c), the Purchaser shall have the right, in its sole discretion, to appoint all
members of the Company’s board of managers. 
 (d) Commissions. Jerry and David agree that they shall not
materially alter the current commission rates paid by the Company, and in any event, without the prior consent of the Purchaser (which consent shall not be unreasonably withheld or delayed) they shall not cause the Company to pay commissions to
sales people hired by the Company after the date of this Agreement in excess of 10% of Gross Profit generated by the customers serviced by such sales person. 
 (e) Required Consents. The Sellers have disclosed to the Purchaser on Schedule 5(j) that certain Contracts require that the
Company give notice of the transactions contemplated by this Agreement (including, without limitation, as a result of the transactions contemplated by the Conveyance Document) to the other party thereto and to obtain the consent of such other party.
The Sellers have notified such third parties but as of the date hereof have not received any of the required consents set forth on Schedule 5(j). The Purchaser hereby waives any requirement of the Sellers to deliver such written consents on
or prior to the Closing Date. Sellers hereby agree to use their reasonable best efforts to obtain the consents set forth on Schedule 5(j) after the Closing Date; provided, however, neither Jerry nor David shall be 

  

 20 

 
required to personally make any payment or give any other consideration to obtain any such consent. The Purchaser agrees that the failure of the Sellers to
deliver or obtain such consents shall not be deemed a breach of any representation or warranty, agreement or covenant of the Sellers to the Purchaser under this Agreement or a basis for any claim by the Purchaser against the Sellers (whether for
indemnification or otherwise) if such consents are not ultimately obtained; provided, that the Sellers continue to use their reasonable best efforts to obtain the consents set forth on Schedule 5(j) after the Closing Date.

 (f) Pre-Closing Transfer from Limited to Company. Prior to the date of this Agreement, Limited contributed, assigned
and transferred certain of its assets, properties and rights to the Company, and the Company assumed certain liabilities of Limited, pursuant to that certain General Assignment, Bill of Sale and Assumption Agreement by and between the Company and
Limited (the “Conveyance Document”). The Sellers hereby acknowledge that that such transfer occurred prior to the date hereof and accordingly the representations and warranties of the Company include in their scope, as applicable,
the assets and liabilities of Limited that were transferred to the Company pursuant to the Conveyance Document. 
 11. Tax
Matters. 
 (a) Tax Returns. Purchaser shall cause the Company to prepare all Tax Returns of the Company for
taxable periods ending after the Closing Date. Notwithstanding the foregoing, Sellers shall cause to be prepared the Internal Revenue Service Form 1065 and comparable state and local forms for taxable periods of the Company beginning and ending on
or before the Closing Date required to be filed by the Company after, on, or before the Closing Date (collectively, “Partnership Returns”) and to deliver to Purchaser copies of all such Partnership Returns for the filing thereof.
Each Partnership Return shall be prepared in accordance with existing procedures and practices of the Company with respect to the treatment of specific items on the Tax Returns, and shall (in the case of returns filed after the Closing Date) be made
available for informational purposes only to Purchaser at least twenty (20) days prior to the due date of the return. No later than ten (10) days before the due date of the Partnership Returns consisting of the Form 1065 for the period
from January 1, 2006 through the Closing Date, Purchaser shall pay Sellers an amount equal to 28.1% of the Net Income of the Company shown on such Partnership Return. The “Net Income” of the Company for this purpose shall be
the excess (if any) of (a) the aggregate sum of all items of income and gain taxed at ordinary rates or short-term capital gain rates over (b) the aggregate sum of all items of deduction and loss shown on such Partnership Return.

 (b) Procedures Relating to Tax Audits. Except as hereinafter provided, Purchaser shall control all proceedings taken
in connection with any tax audit (including selection of counsel and accountants); provided, however, that Purchaser shall afford any Seller the opportunity to participate, as may reasonably be requested by Sellers, with Purchaser in contesting any
tax audit solely to the extent such Tax audit would give rise to a tax claim; provided, further, that Purchaser shall not, to the extent doing so would give rise to a tax claim, settle or otherwise compromise any tax audit without the prior written
consent of any Seller (which consent shall not be unreasonably withheld or delayed); and provided, further, that if any tax audit relates to a Partnership Return, the Sellers shall control all proceedings (including selection of counsel and
accountants) at Sellers’ sole cost and expense. 
  

 21 

 (c) Proration of Taxes. For purposes of allocating liability for Taxes under this
Agreement, in the case of any taxable period that includes (but does not end on) December 31, 2005 (a “Straddle Period”), (i) real, personal and intangible property Taxes (“Property Taxes”) of the Company
allocable to the pre-December 31, 2005 (the “Effective Date”) period shall be equal to the amount of such property taxes for the entire Straddle Period multiplied by a fraction, the numerator of which is the number of days
during the Straddle Period that are in the pre-Effective Date period and the denominator of which is the number of days in the Straddle Period; and (ii) Taxes (other than Property Taxes) of the Company allocable to the pre-Effective Date Period
shall be computed as if such taxable period ended as of the close of business on the Effective Date; provided, that exemptions, allowances or deductions that are calculated on an annual basis (including depreciation and amortization deductions and
the effect of graduated rates) shall be allocated between the period ending on the Effective Date and the period after the Effective Date in proportion to the number of days in each such period. It is understood that all Taxes so allocable to the
post-Effective Date period and any other Taxes reserved for on the Balance Sheet shall be the responsibility of the Company for which the Sellers shall have no responsibility. Notwithstanding anything to the contrary contained herein, sales taxes
shall not be prorated but shall remain a liability of the Company for which the Sellers have no responsibility. 
 (d)
Cooperation. Purchaser and Sellers shall provide each other, and the Purchaser shall cause the Company to provide the Sellers, with such assistance as may reasonably be requested by the others in connection with the preparation of any return
or report of Taxes, any audit or other examination by any taxing authority, or any judicial or administrative proceedings relating to liabilities for Taxes. Such assistance shall include making employees available on a mutually convenient basis to
provide additional information or explanation of material provided hereunder and shall include providing copies of relevant tax returns and supporting material. 
 (e) Allocation. Within sixty (60) days of the Closing Date, Purchaser shall provide to the Sellers a schedule allocating the
Purchase Price (and other relevant items) among the assets of the Company and the covenant provided for in Section 8 (the “Purchase Price Allocation Schedule”). The Purchase Price Allocation Schedule will be prepared in
accordance with the applicable provisions of the Code. Purchaser and each Seller shall, for all tax reporting purposes, report the transactions in accordance with the Purchase Price Allocation Schedule. The Purchaser and the Sellers shall make
appropriate adjustments to the Purchase Price Allocation Schedule to reflect changes in the Purchase Price or other relevant items. For purposes of preparing the Purchase Price Allocation Schedule, the amounts allocated to cash, cash equivalents,
investment securities, accounts, receivables, prepaids, and software shall be the tax basis of such assets as of the Closing Date and the amounts allocated to the covenants in Section 8 of this Agreement and Section 4 of the
Employment Agreements shall be zero dollars ($0) and the balance shall be allocated entirely to goodwill. 
  

 22 

 12. Conduct of Business During Earn-Out Period. 
 (a) Conduct of Business. During the Earn-Out Period, Purchaser shall (i) cause the Company to continue to operate the
Business, (ii) maintain the integrity of the Earn-Out Accounts and Approved Accounts so as to make calculation of Gross Profit feasible and verifiable, and (iii) operate the Business through the Company as a wholly-owned subsidiary of
Purchaser. Purchaser agrees with the Sellers, that during the Earn-Out Period it will not cause the Company to take any of the following actions without the prior consent of Jerry and David: 
  

	 	(i)	form any subsidiaries of the Company; 

  

	 	(ii)	merge or consolidate the Company with and into another person or of another person with and into the Company; 

  

	 	(iii)	unless in the ordinary course of business, acquire the stock, assets or business of another person or make any investment of funds or other assets in another person;

  

	 	(iv)	enter into any business other than the normal business activities of the Company, or enter into any material transaction outside the ordinary course of business and not consistent
with the Company’s past practices; 

  

	 	(v)	liquidate or dissolve the Company or dispose of a material amount of assets or properties, individually or in the aggregate, of the Company other than in the ordinary course of
business; 

  

	 	(vi)	terminate or change in any material respect (including a substitution of carrier) the Company’s health insurance coverage or the premium contributions paid for by the
Company’s employees, except that the Purchaser may substitute the health insurance plan or carrier if (i) the coverage and premiums are substantially similar, and (ii) there is no lapse in coverage, including coverage with respect to
preexisting conditions; and 

  

	 	(vii)	prohibit Jerry or David from using, or causing the Company to use, “Graphography” in intra-office signage and in telephone answering; provided, that the Purchaser may
require that such intra-office signage and telephone answering reflect that the Company is an “InnerWorkings Company”. 

 (b) Restricted Activity. During the Earn-Out Period, the Purchaser agrees with the Sellers that solely with respect to the customer accounts set forth on Schedule 12(b) (the “Restricted
Accounts”) and so long as the applicable Restricted Accounts remain profitable, as reasonably determined by the Purchaser, the Purchaser shall, and shall cause the Company to, continue to manage, service or otherwise conduct the business
related to the Restricted Accounts in a manner consistent with the Company’s past practices, and in furtherance thereof, Purchaser will not take or cause anyone else to take (including, without limitation, the Board of Managers 

  

 23 

 
of the Company), any of the following actions with respect to the management and servicing of the Restricted Accounts, without the prior consent of Jerry and
David: 
  

	 	(i)	prohibit Jerry or David from causing the Company to hire an employee or consultant to replace any employee or consultant who previously managed or serviced one or more Restricted
Accounts; provided, that such replacement employee or consultant receives comparable compensation as the prior employee or consultant; 

  

	 	(ii)	fire any employee or consultant who currently manages or services one or more Restricted Accounts; 

  

	 	(iii)	cause the Company to use particular vendors on any project of any Restricted Account; 

  

	 	(iv)	require the Company to terminate its relationship with any Restricted Account or to modify the basis upon which the Company has traditionally charged any Restricted Account for its
services; provided, that such Restricted Account continues to remain in good standing in accordance with the Purchaser’s policies and procedures for customer accounts; 

  

	 	(v)	cause the Company to modify, alter or delay its normal invoicing to the Restricted Accounts in any material respect; or 

  

	 	(vi)	prohibit Jerry or David using, or causing the Company to use, “Graphography” in invoices, business cards or other written communications with any Restricted Account.

 (c) No Other Limitations. Notwithstanding anything in this Agreement to the contrary, except as
expressly set forth in this Section 12, or as required by the Purchaser’s implied contractual covenant of good faith and fair dealing, this Agreement shall impose no restrictions on the operation of the Business or the Company by
the Purchaser after the Closing or on the operations, business or activities of the Purchaser after the Closing. Without limiting the foregoing, Jerry and David acknowledge and agree that all financial statements, billing matters, payment of
accounts payables, collections of accounts receivables, bank accounts, credit facilities and other financial operations or activities of the Business will be consolidated with the Purchaser. 
 13. Fees and Expenses. Except as otherwise set forth in this Agreement, the Sellers, on the one hand, and Purchaser, on the other hand,
will each bear their own costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby, and the Sellers shall pay any legal, accounting or other costs or expenses incurred by the Company in connection with
this Agreement and the transactions contemplated hereby; provided, however, the fees and disbursements of Berdon LLP, certified public accountants, in the amount of $30,000 for the services rendered by it in connection with the audit of the
Company’s financial statements performed by Purchaser’s accounting firm is a liability and obligation of the Company and shall not that of the Sellers. 
  

 24 

 14. Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of Illinois, without regard to the conflicts of law rules thereof. 
 15. Assignment. This Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns, but will not be assignable or delegable by the Sellers, on the one hand, or the Purchaser, on the other hand, without the prior written
consent of the other parties hereto, provided, however, that the Purchaser shall be entitled to assign its rights and benefits hereto, without the consent of the Sellers (a) to an affiliate of the Purchaser so long as the
affiliate assumes the Purchaser’s rights hereunder and (b) in connection with a sale of all or substantially all of such Purchaser’s assets so long as the assignee assumes the Purchaser’s obligations hereunder; provided,
further, however, no such assignment shall limit the Purchaser’s obligations hereunder which shall remain primary together with any such assignee. 
 16. Amendment and Waiver. This Agreement, or any provision hereof, may be amended or waived; provided that any such amendment or waiver will be binding on the parties hereto only if such amendment
or waiver is set forth in a writing executed by the party or parties to be bound by such amendment or waiver. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any other
breach of this Agreement or any of the documents, agreements and instruments executed in connection herewith or contemplated hereby. 
 17.
Counterparts. This Agreement may be executed in multiple counterparts, each of which shall have the force and effect of an original, and such counterparts together shall constitute one and the same instrument. A facsimile signature
shall be acceptable as an original for all purposes. 
 18. Notices. All notices, consents and other communications to be sent
or given hereunder by any of the parties shall in every case be in writing and shall be deemed properly served if (a) delivered personally, (b) delivered by a recognized overnight courier service, or (c) sent by facsimile transmission
with a confirmation copy sent by overnight courier, in each case, to the parties at the addresses and facsimile numbers as set forth below or at such other addresses and facsimile numbers as may be furnished in writing: 
  

	 	(a)	If to the Sellers: 

 Jerry and David Freundlich 

172 West 79th
Street 
 Apt. 10C 
 New York, New
York 10024 
 with a copy to: 
 Davis & Gilbert LLP 
 1740 Broadway 
 New York, New York 10019 
 Attention: Michael D. Ditzian, Esq. 
 Fax: (212)-468-4888 
  

 25 

	 	(b)	If to the Purchaser: 

 InnerWorkings, Inc. 
 600 West Chicago, Suite 850 
 Chicago,
Illinois, 60610 
 Attention: Chief Financial Officer 
 Fax: (312) 642-3704 
 with a copy to: 
 Winston & Strawn LLP 
 35 West Wacker
Drive 
 Chicago, Illinois, 60601 
 Attention: Richard E. Ginsberg, Esq. 
 Fax: (312) 558-5700 
 Date of service of such notice shall be (x) the date such notice is personally delivered, (y) three (3) day after the date of delivery to the overnight courier if sent by overnight courier, or
(z) the next succeeding business day after transmission by facsimile. 
 19. No Third Party Beneficiaries; Entire
Agreement. No person or entity who is not a party to this Agreement, including, but not limited to, any employee or former employee of the Company, shall be deemed to be a beneficiary of any provision of this Agreement, and no such person
shall have any claim, cause of action, right or remedy pursuant to this Agreement. This Agreement, including the Exhibits and Schedules attached hereto (and any other instruments executed and delivered in connection herewith), and the Employment
Agreements, embody the entire agreement and understanding of the parties with respect to the transactions contemplated by this Agreement. This Agreement supersedes all prior discussions, negotiations, agreements and understandings (both written and
oral) between the parties with respect to the transactions contemplated hereby that are not reflected or set forth in this Agreement, the Employment Agreement, the Exhibits or the Schedules attached hereto. 
 20. Further Assurances. Each party hereto agrees to promptly execute and deliver all further instruments and documents and take all further
action necessary or appropriate or that the other party may reasonably request in order to effect the purposes of this Agreement and the Transaction Documents. 
 21. No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction will be
applied against any party hereto. 
 22. Public Announcements. No party to this Agreement shall, and the Sellers shall ensure
that no representative of the Company shall, issue any press release or other public document or make any public statement relating to this Agreement or the matters contained herein without obtaining the prior approval of the Purchaser and Jerry and
David. Jerry and David, on the one hand, and Purchaser, on the other hand, will consult with each other and agree upon the timing of and the means by which the Company’s employees, customers, suppliers and others having dealings with the
Company will be informed of the transactions. Nothing in this Section 22 shall prevent either party from making any public announcements or disclosures required by, or deemed advisable by such party’s legal counsel pursuant to, the
rules of any stock exchange or national securities association or any applicable legal requirements. 
 [Signature Page Follows]

  

 26 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
Each of the Sellers and the Purchaser acknowledges that it has read and understood this Agreement and has either obtained its own independent counsel with respect to the transactions contemplated hereby, or waived its right to have counsel review
this Agreement. 
  

			
	SELLERS:
	
	GRAPHOGRAPHY, LTD.
		
	 By:
	 	 /s/ Jerry Freundlich

	 Name:
	 	 Jerry Freundlich

	 Its:
	 	 President

	
	 /s/ David Freundlich

	 David Freundlich

	
	 /s/ Jerry Freundlich

	 Jerry Freundlich

	
	PURCHASER:
	
	INNERWORKINGS, INC.
		
	 By:
	 	 /s/ Nick Galassi

	 Name:
	 	 Nick Galassi

	 Its:
	 	 CFOSTOCK PURCHASE AGREEMENT AND SHARE EXCHANGE

 

 

by and among

 

ASAH CORP.

 

a Delaware Corporation

 

and

 

AMERICAN SURGICAL ASSISTANTS, INC.

 

a Texas Corporation

 

 

 

 

 

 

 

 

 

 

effective as of October 10, 2005

 

 

 

 

 

 

 

 

 

 

 

	
             
 	
            STOCK PURCHASE AGREEMENT AND SHARE EXCHANGE
 

 

THIS STOCK PURCHASE AGREEMENT AND SHARE EXCHANGE, made and entered into this 10th day of October, 2005, by and among ASAH Corp., a Delaware corporation with its principal place of business located at 10039 Bissonnet, Suite 250, Houston, Texas 77036 (“ASAH”); American Surgical Assistants, Inc., a Texas Corporation with its principal place of business at 10039 Bissonnet, Suite 250, Houston, Texas 77036 (“ASA”) and the shareholders of shareholders of American Surgical Assistants, Inc. (“Shareholders”) (collectively ASA and the ASA shareholders shall be known as the “ASA Group”).

 

Premises

 

A.        This Agreement provides for the acquisition of ASA whereby ASA shall become a wholly owned subsidiary of ASAH and in connection therewith, the issuance of a total of 12,000,000 shares of ASAH to the Shareholders.

 

B.        The boards of directors of ASA and ASAH have determined, subject to the terms and conditions set forth in this Agreement, that the transaction contemplated hereby is desirable and in the best interests of their stockholders, respectively. This Agreement is being entered into for the purpose of setting forth the terms and conditions of the proposed acquisition.

 

Agreement

 

NOW, THEREFORE, on the stated premises and for and in consideration of the mutual covenants and agreements hereinafter set forth and the mutual benefits to the parties to be derived here from, it is hereby agreed as follows:

 

ARTICLE I

REPRESENTATIONS, COVENANTS AND WARRANTIES OF 

ASAH CORP.

 

As an inducement to and to obtain the reliance of ASA, ASAH represents and warrants as follows:

 

Section 1.1     Organization. ASAH is a corporation duly organized, validly existing, and in good standing under the laws of Delaware and has the corporate power and is duly authorized, qualified, franchised and licensed under all applicable laws, regulations, ordinances and orders of public authorities to own all of its properties and assets and to carry on its business in all material respects as it is now being conducted, including qualification to do business as a foreign corporation in the jurisdiction in which the character and location of the assets owned by it or the nature of the business transacted by it requires qualification. Included in the Schedules attached hereto (hereinafter defined) are complete and correct copies of the articles of incorporation, bylaws and amendments
thereto as in effect on the date hereof. The execution and delivery of this Agreement does not and the consummation of the transactions contemplated by this Agreement in accordance with the terms hereof will not violate any provision of Holding’s articles of incorporation or bylaws. ASAH has full power, authority and legal right and has taken all action required by law, its articles of incorporation, its bylaws or otherwise to authorize the execution and delivery of this Agreement.

 

 

 

 

 

 

 

Section 1.2     Capitalization. The authorized capitalization of ASAH consists of 100,000,000 Common Shares, $0.001 par value per share, and 10,000,000 shares of Preferred Stock, $0.001 par value. As of the date hereof, ASAH has 21,230,700 common shares issued and outstanding. 

 

All issued and outstanding shares are legally issued, fully paid and nonassessable and are not issued in violation of the preemptive or other rights of any person. ASAH has no securities, warrants or options authorized or issued.

 

	
             
 	
            Section 1.3
 	
            Subsidiaries.
 	
            ASAH has no subsidiaries.
 

 

	
             
 	
            Section 1.4
 	
            Tax Matters: Books and Records.
 

 

(a) The books and records, financial and others, of ASAH are in all material respects complete and correct and have been maintained in accordance with good business accounting practices; and

 

(b) ASAH has no liabilities with respect to the payment of any country, federal, state, county, or local taxes (including any deficiencies, interest or penalties).

 

(c) ASAH shall remain responsible for all debts incurred by ASAH prior to the date of closing.

 

Section 1.5     Litigation and Proceedings. There are no actions, suits, proceedings or investigations pending or threatened by or against or affecting ASAH or its properties, at law or in equity, before any court or other governmental agency or instrumentality, domestic or foreign or before any arbitrator of any kind that would have a material adverse affect on the business, operations, financial condition or income of ASAH. ASAH is not in default with respect to any judgment, order, writ, injunction, decree, award, rule or regulation of any court, arbitrator or governmental agency or instrumentality or of any circumstances which, after reasonable investigation, would result in the discovery of such a default.

 

Section 1.6     Material Contract Defaults.  ASAH is not in default in any material respect under the terms of any outstanding contract, agreement, lease or other commitment which is material to the business, operations, properties, assets or condition of ASAH, and there is no event of default in any material respect under any such contract, agreement, lease or other commitment in respect of which ASAH has not taken adequate steps to prevent such a default from occurring.

 

Section 1.7 Information. The information concerning ASAH as set forth in this Agreement and in the attached Schedules is complete and accurate in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact required to make the statements made in light of the circumstances under which they were made, not misleading. 

 

Section 1.8 Title and Related Matters. ASAH has good and marketable title to and is the sole and exclusive owner of all of its properties, inventory, interest in properties and assets, real and personal (collectively, the “Assets”) free and clear of all liens, pledges, charges or encumbrances. ASAH owns free and clear of any liens, claims, encumbrances, royalty interests or other restrictions or limitations of any nature whatsoever and all procedures, techniques, marketing plans, business plans, methods of management or other information utilized in connection with ASAH’ business. No third party 

 

 

 

 

 

 

has any right to, and ASAH has not received any notice of infringement of or conflict with asserted rights of other with respect to any product, technology, data, trade secrets, know-how, proprietary techniques, trademarks, service marks, trade names or copyrights which, singly on in the aggregate, if the subject of an unfavorable decision ruling or finding, would have a materially adverse affect on the business, operations, financial conditions or income of ASAH or any material portion of its properties, assets or rights.

 

	
             
 	
            Section 1.9 
 	
            Contracts 
 	
            On the closing date:
 

 

(a) There are no material contracts, agreements franchises, license agreements, or other commitments to which ASAH is a party or by which it or any of its properties are bound:

 

(b) ASAH is not a party to any contract, agreement, commitment or instrument or subject to any charter or other corporate restriction or any judgment, order, writ, injunction, decree or award materially and adversely affects, or in the future may (as far as ASAH can now foresee) materially and adversely affect , the business, operations, properties, assets or conditions of ASAH; and

 

(c) ASAH is not a party to any material oral or written: (I) contract for the employment of any officer or employee; (ii) profit sharing, bonus, deferred compensation, stock option, severance pay, pension benefit or retirement plan, agreement or arrangement covered by Title IV of the Employee Retirement Income Security Act, as amended; (iii) agreement, contract or indenture relating to the borrowing of money; (iv) guaranty of any obligation for the borrowing of money or otherwise, excluding endorsements made for collection and other guaranties, of obligations, which, in the aggregate exceeds $1,000; (v) consulting or other contract with an unexpired term of more than one year or providing for payments in excess of $10,000 in the aggregate; (vi) collective bargaining agreement; (vii) contract, agreement or other commitment involving payments by it for more than $10,000 in the aggregate.

 

Section 1.10 Compliance With Laws and Regulations. To the best of ASAH’s knowledge and belief, ASAH has complied with all applicable statutes and regulations of any federal, state or other governmental entity or agency thereof, except to the extent that noncompliance would not materially and adversely affect the business, operations, properties, assets or condition of ASAH or would not result in ASAH incurring material liability.

 

Section 1.11 Insurance. All of the insurable properties of ASAH are insured for ASAH ‘s benefit under valid and enforceable policy or policies containing substantially equivalent coverage and will be outstanding and in full force at the Closing Date.

 

Section 1.12 Approval of Agreement. The directors of ASAH have authorized the execution and delivery of the Agreement by and have approved the transactions contemplated hereby.

 

Section 1.13 Material Transactions or Affiliations. There are no material contracts or agreements of arrangement between ASAH and any person, who was at the time of such contract, agreement or arrangement an officer, director or person owning of record, or known to beneficially own ten percent (10%) or more of the issued and outstanding Common Shares of ASAH and which is to be performed in whole or in part after the date hereof. ASAH has no commitment, whether written or oral, to lend any funds to, borrow any money from or enter into material transactions with any such affiliated 

 

 

 

 

 

 

person. 

 

Section 1.14   No Conflict With Other Instruments. The execution of this Agreement and the consummation of the transactions contemplated by this Agreement will not result in the breach of any term or provision of, or constitute an event of default under, any material indenture, mortgage, deed of trust or other material contract, agreement or instrument to which ASAH is a party or to which any of its properties or operations are subject.

 

Section 1.15   Governmental Authorizations.       ASAH has all licenses, franchises, permits or other governmental authorizations legally required to enable it to conduct its business in all material respects as conducted on the date hereof. Except for compliance with federal and state securities and corporation laws, as hereinafter provided, no authorization, approval, consent or order of, or registration, declaration or filing with, any court or other governmental body is required in connection with the execution and delivery by ASAH of this Agreement and the consummation of the transactions contemplated hereby.

 

ARTICLE II

REPRESENTATIONS, COVENANTS AND WARRANTIES

OF AMERICAN SURGICAL ASSISTANTS, INC.

 

As an inducement to, and to obtain the reliance of ASAH, ASA represents and warrants as follows:

 

Section 2.1     Organization.               ASA is a corporation duly organized, validly existing and in good standing under the laws of Texas and has the corporate power and is duly authorized, qualified, franchised and licensed under all applicable laws, regulations, ordinances and orders of public authorities to own all of its properties and assets and to carry on its business in all material respects as it is now being conducted, including qualification to do business as a foreign entity in the country or states in which the character and location of the assets owned by it or the nature of the business transacted by it requires qualification. Included in the Attached Schedules (as hereinafter defined) are complete and
correct copies of the articles of incorporation, bylaws and amendments thereto as in effect on the date hereof. The execution and delivery of this Agreement does not and the consummation of the transactions contemplated by this Agreement in accordance with the terms hereof will not, violate any provision of ASA’s certificate of incorporation or bylaws. ASA has full power, authority and legal right and has taken all action required by law, its articles of incorporation, bylaws or otherwise to authorize the execution and delivery of this Agreement.

 

Section 2.2    Capitalization. The authorized capitalization of ASA consists of 1,000 shares of common stock, no par value and no preferred shares. As of the date hereof, there are 900 shares of common stock issued and outstanding.

 

All issued and outstanding common shares have been legally issued, fully paid, are nonassessable and not issued in violation of the preemptive rights of any other person. ASA has no other securities, warrants or options authorized or issued.

 

	
             
 	
            Section 2.3
 	
            Subsidiaries.
 	
            ASA has no subsidiaries.
 

 

 

 

 

 

 

 

 

	
             
 	
            Section 2.4
 	
            Tax Matters; Books & Records
 

 

(a)          The books and records, financial and others, of ASA are in all material respects complete and correct and have been maintained in accordance with good business accounting practices; and

 

(b)          ASA has no liabilities with respect to the payment of any country, federal, state, county, local or other taxes (including any deficiencies, interest or penalties). 

 

	
             
 	
            (c) 
 	
            ASA shall remain responsible for all debts incurred prior to the closing.
 

 

Section 2.5     Information. The information concerning ASA as set forth in this Agreement and in the attached Schedules is complete and accurate in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact required to make the statements made, in light of the circumstances under which they were made, not misleading.

 

Section 2.6     Title and Related Matters.     ASA has good and marketable title to and is the sole and exclusive owner of all of its properties, inventory, interests in properties and assets, real and personal (collectively, the “Assets”) free and clear of all liens, pledges, charges or encumbrances. Except as set forth in the Schedules attached hereto, ASA owns free and clear of any liens, claims, encumbrances, royalty interests or other restrictions or limitations of any nature whatsoever and all procedures, techniques, marketing plans, business plans, methods of management or other information utilized in connection with ASA’s business. Except as set forth in the attached Schedules, no third party has any right to, and ASA has not received any notice
of infringement of or conflict with asserted rights of others with respect to any product, technology, data, trade secrets, know-how, proprietary techniques, trademarks, service marks, trade names or copyrights which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a materially adverse affect on the business, operations, financial conditions or income of ASA or any material portion of its properties, assets or rights.

 

Section 2.7     Litigation and Proceedings.        There are no actions, suits or proceedings pending or threatened by or against or affecting ASA, at law or in equity, before any court or other governmental agency or instrumentality, domestic or foreign or before any arbitrator of any kind that would have a material adverse effect on the business, operations, financial condition, income or business prospects of ASA. ASA does not have any knowledge of any default on its part with respect to any judgement, order, writ, injunction, decree, award, rule or regulation of any court, arbitrator or governmental agency or instrumentality.

 

	
             
 	
            Section 2.8
 	
            Contracts.
 	
            On the Closing Date:
 

 

(a) There are no material contracts, agreements, franchises, license agreements, or other commitments to which ASA is a party or by which it or any of its properties are bound;

 

(b) ASA is not a party to any contract, agreement, commitment or instrument or subject to any charter or other corporate restriction or any judgment, order, writ, injunction, decree or award which materially and adversely affects, or in the future may (as far as ASA can now foresee) materially and adversely affect, the business, 

 

 

 

 

 

 

operations, properties, assets or conditions of ASA; and 

 

(c)  ASA is not a party to any material oral or written: (i) contract for the employment of any officer or employee; (ii) profit sharing, bonus, deferred compensation, stock option, severance pay, pension, benefit or retirement plan, agreement or arrangement covered by Title IV of the Employee Retirement Income Security Act, as amended; (iii) agreement, contract or indenture relating to the borrowing of money; (iv) guaranty of any obligation for the borrowing of money or otherwise, excluding endorsements made for collection and other guaranties of obligations, which, in the aggregate exceeds $1,000; (v) consulting or other contract with an unexpired term of more than one year or providing for payments in excess of $10,000 in the aggregate; (vi) collective bargaining agreement; (vii) contract, agreement, or other commitment involving payments by it for more than $10,000 in the aggregate.

 

Section 2.9     No Conflict With Other Instruments.      The execution of this Agreement and the consummation of the transactions contemplated by this Agreement will not result in the breach of any term or provision of, or constitute an event of default under, any material indenture, mortgage, deed of trust or other material contract, agreement or instrument to which ASA is a party or to which any of its properties or operations are subject.

 

Section 2.10   Material Contract Defaults. To the best of ASA’s knowledge and belief, it is not in default in any material respect under the terms of any outstanding contract, agreement, lease or other commitment which is material to the business, operations, properties, assets or condition of ASA, and there is no event of default in any material respect under any such contract, agreement, lease or other commitment in respect of which ASA has not taken adequate steps to prevent such a default from occurring.

 

Section 2.11  Governmental Authorizations. To the best of ASA’s knowledge, ASA has all licenses, franchises, permits and other governmental authorizations that are legally required to enable it to conduct its business operations in all material respects as conducted on the date hereof. Except for compliance with federal and state securities or corporation laws, no authorization, approval, consent or order of, or registration, declaration or filing with, any court or other governmental body is required in connection with the execution and delivery by ASA of the transactions contemplated hereby.

 

Section 2.12   Compliance With Laws and Regulations. To the best of ASA’s knowledge and belief, ASA has complied with all applicable statutes and regulations of any federal, state or other governmental entity or agency thereof, except to the extent that noncompliance would not materially and adversely affect the business, operations, properties, assets or condition of ASA or would not result in ASA ‘s incurring any material liability.

 

Section 2.13  Insurance. All of the insurable properties of ASA are insured for ASA’s benefit under valid and enforceable policy or policies containing substantially equivalent coverage and will be outstanding and in full force at the Closing Date.

 

Section 2.14   Approval of Agreement.    The directors of ASA have authorized the execution and delivery of the Agreement and have approved the transactions contemplated hereby.

 

 

 

 

 

 

 

Section 2.15   Material Transactions or Affiliations.       As of the Closing Date, there will exist no material contract, agreement or arrangement between ASA and any person who was at the time of such contract, agreement or arrangement an officer, director or person owning of record, or known by ASA to own beneficially, ten percent (10%) or more of the issued and outstanding Common Shares of ASA and which is to be performed in whole or in part after the date hereof except with regard to an agreement with the ASA shareholders providing for the distribution of cash to provide for payment of federal and state taxes on Subchapter S income. ASA has no commitment, whether written or oral, to lend any funds to, borrow any money from or enter into any other material
transactions with, any such affiliated person.

 

ARTICLE III

	
             
 	
            EXCHANGE PROCEDURE AND OTHER CONSIDERATION
 

 

Section 3.1     Share Exchange/Delivery of ASA Securities.       On the Closing Date, the holders of all of the ASA Common Shares shall deliver to ASAH (i) certificates or other documents evidencing all of the issued and outstanding ASA Common Shares, duly endorsed in blank or with executed power attached thereto in transferrable form. On the Closing Date, all previously issued and outstanding Common Shares of ASA shall be transferred to ASAH, so that ASA shall become a wholly owned subsidiary of ASAH. 

 

Section 3.2 Issuance of ASAH Common Shares. In exchange for all of the ASA Common Shares tendered pursuant to Section 3.1, ASAH shall issue to the ASA shareholders a total of 12,000,000 shares of ASAH common stock in the following manner. Such shares are restricted in accordance with Rule 144 of the 1933 Securities Act. 

 

	
             
 	
            Zak Elgamal-6,000,000 shares
 	
             
 
	
             
 	
            Jaime Olmo-Rivas-6,000,000 shares
 

 

Section 3.3     Events Prior to Closing. Upon execution hereof or as soon thereafter as practical, management of ASAH and ASA shall execute, acknowledge and deliver (or shall cause to be executed, acknowledged and delivered) any and all certificates, opinions, financial statements, schedules, agreements, resolutions rulings or other instruments required by this Agreement to be so delivered, together with such other items as may be reasonably requested by the parties hereto and their respective legal counsel in order to effectuate or evidence the transactions contemplated hereby, subject only to the conditions to Closing referenced herein below. In addition, prior to Closing, ASA shall provide ASAH with updated audited financial statements to be filed with ASAH’s Form 8-K filing with the
SEC within three (3) days of Closing.

 

Section 3.4     Closing.         The closing (“Closing”) of the transactions contemplated by this Agreement shall be September 20, 2005.

 

	
             
 	
            Section 3.5
 	
            Termination.
 

 

(a) This Agreement may be terminated by the board of directors or majority interest of Shareholders of either ASAH or ASA, respectively, at any time prior to the Closing Date if:

 

 

 

 

 

 

 

 

 

(i) there shall be any action or proceeding before any court or any governmental body which shall seek to restrain, prohibit or invalidate the transactions contemplated by this Agreement and which, in the judgment of such board of directors, made in good faith and based on the advice of its legal counsel, makes it inadvisable to proceed with the exchange contemplated by this Agreement; or 

 

(ii) any of the transactions contemplated hereby are disapproved by any regulatory authority whose approval is required to consummate such transactions.

 

In the event of termination pursuant to this paragraph (a) of this Section 3.5, no obligation, right, or liability shall arise hereunder and each party shall bear all of the expenses incurred by it in connection with the negotiation, drafting and execution of this Agreement and the transactions herein contemplated.

 

(b) This Agreement may be terminated at any time prior to the Closing Date by action of the board of directors of ASAH if ASA shall fail to comply in any material respect with any of its covenants or agreements contained in this Agreement or if any of the representations or warranties of ASA contained herein shall be inaccurate in any material respect, which noncompliance or inaccuracy is not cured after 20 days written notice thereof is given to ASA. If this Agreement is terminated pursuant to this paragraph (b) of this Section 3.5, this Agreement shall be of no further force or effect and no obligation, right or liability shall arise hereunder.

 

(c) This Agreement may be terminated at any time prior to the Closing Date by action of the board of directors of ASA if ASAH shall fail to comply in any material respect with any of its covenants or agreements contained in this Agreement or if any of the representations or warranties of ASAH contained herein shall be inaccurate in any material respect, which noncompliance or inaccuracy is not cured after 20 days written notice thereof is given to ASAH. If this Agreement is terminated pursuant to this paragraph (d) of this Section 3.5, this Agreement shall be of no further force or effect and no obligation, right or liability shall arise hereunder.

 

In the event of termination pursuant to paragraph (b) and (c) of this Section 3.5, the breaching party shall bear all of the expenses incurred by the other party in connection with the negotiation, drafting and execution of this Agreement and the transactions herein contemplated.

 

Section 3.6     Directors of ASAH After Acquisition. After the Closing Date, Zak Elgamal shall remain the sole member of the Board of Directors of ASAH. Each director shall hold office until his successor shall have been duly elected and shall have qualified or until his earlier death, resignation or removal. 

 

Section 3.7     Officers of ASAH. Upon the closing, the following person shall remain the sole officer of ASAH:

 

	
             
 	
            NAME
 	
            OFFICE
 

 

	
             
 	
            Zak Elgamal
 	
            Chief Executive Officer, Chief Financial Officer, President and Secretary
 

 

 

 

 

 

 

 

 

ARTICLE IV

SPECIAL COVENANTS

 

Section 4.1    Access to Properties and Records. Prior to closing, ASAH and ASA will each afford to the officers and authorized representatives of the other full access to the properties, books and records of each other, in order that each may have full opportunity to make such reasonable investigation as it shall desire to make of the affairs of the other and each will furnish the other with such additional financial and operating data and other information as to the business and properties of each other, as the other shall from time to time reasonably request.

 

Section 4.2   Availability of Rule 144. ASAH and ASA shareholders holding “restricted securities, “ as that term is defined in Rule 144 promulgated pursuant to the Securities Act will remain as “restricted securities”. ASAH is under no obligation to register such shares under the Securities Act, or otherwise. The stockholders of ASAH and ASA holding restricted securities of ASAH and ASA as of the date of this Agreement and their respective heirs, administrators, personal representatives, successors and assigns, are intended third party beneficiaries of the provisions set forth herein. The covenants set forth in this Section 4.2 shall survive the Closing and the consummation of the transactions herein contemplated.

 

Section 4.3   Special Covenants and Representations Regarding the ASAH Common Shares to be Issued in the Exchange. The consummation of this Agreement, including the issuance of the ASAH Common Shares to the Shareholders of ASA as contemplated hereby, constitutes the offer and sale of securities under the Securities Act, and applicable state statutes. Such transaction shall be consummated in reliance on exemptions from the registration and prospectus delivery requirements of such statutes which depend, inter alia, upon the circumstances under which the ASA Shareholders acquire such securities. 

 

Section 4.4    Third Party Consents. ASAH and ASA agree to cooperate with each other in order to obtain any required third party consents to this Agreement and the transactions herein contemplated.

 

	
             
 	
            Section 4.5
 	
            Actions Prior and Subsequent to Closing.
 

 

(a)        From and after the date of this Agreement until the Closing Date, except as permitted or contemplated by this Agreement, ASAH and ASA will each use its best efforts to:

 

(i)   maintain and keep its properties in states of good repair and condition as at present, except for depreciation due to ordinary wear and tear and damage due to casualty;

(ii)  maintain in full force and effect insurance comparable in amount and in scope of coverage to that now maintained by it;

(iii) perform in all material respects all of its obligations under material contracts, leases and instruments relating to or affecting its assets, properties and business;

 

(b)        From and after the date of this Agreement until the Closing Date, ASAH will not, without the prior consent of ASA:

 

 

 

 

 

 

 

(i) except as otherwise specifically set forth herein, make any change in its articles of incorporation or bylaws;

(ii) declare or pay any dividend on its outstanding Common Shares, except as may otherwise be required by law, or effect any stock split or otherwise change its capitalization, except as provided herein;

(iii) enter into or amend any employment, severance or agreements or arrangements with any directors or officers;

(iv) grant, confer or award any options, warrants, conversion rights or other rights not existing on the date hereof to acquire any Common Shares; or 

	
             
 	
            (v) purchase or redeem any Common Shares.
 

 

	
            Section 4.6
 	
            Indemnification.
 

 

(a) ASAH hereby agrees to indemnify ASA, each of the officers, agents and directors and current shareholders of ASA as of the Closing Date against any loss, liability, claim, damage or expense (including, but not limited to, any and all expense whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened or any claim whatsoever), to which it or they may become subject to or rising out of or based on any inaccuracy appearing in or misrepresentation made in this Agreement. The indemnification provided for in this paragraph shall survive the Closing and consummation of the transactions contemplated hereby and termination of this Agreement; and 

 

(b) ASA hereby agrees to indemnify ASAH, each of the officers, agents, directors and current shareholders of ASAH as of the Closing Date against any loss, liability, claim, damage or expense (including, but not limited to, any and all expense whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened or any claim whatsoever), to which it or they may become subject arising out of or based on any inaccuracy appearing in or misrepresentation made in this Agreement. The indemnification provided for in this paragraph shall survive the Closing and consummation of the transactions contemplated hereby and termination of this Agreement.

 

ARTICLE V

	
             
 	
            CONDITIONS PRECEDENT TO OBLIGATIONS OF ASAH
 

 

The obligations of ASAH under this Agreement are subject to the satisfaction, at or before the Closing Date, of the following conditions:

 

Section 5.1     Accuracy of Representations. The representations and warranties made by ASAH in this Agreement were true when made and shall be true at the Closing Date with the same force and effect as if such representations and warranties were made at the Closing Date (except for changes therein permitted by this Agreement), and ASAH shall have performed or compiled with all covenants and conditions required by this Agreement to be performed or complied with by ASAH prior to or at the Closing. ASA shall be furnished with a certificate, signed by a duly authorized officer of ASAH and dated the Closing Date, to the foregoing effect.

 

 

 

 

 

 

 

Section 5.2     Director Approval.   The Board of Directors of ASAH shall have approved this Agreement and the transactions contemplated herein.

 

Section 5.3     Officer’s Certificate.  ASA shall have been furnished with a certificate dated the Closing Date and signed by a duly authorized officer of ASAH to the effect that: (a) the representations and warranties of ASAH set forth in the Agreement and in all Exhibits, Schedules and other documents furnished in connection herewith are in all material respects true and correct as if made on the Effective Date; (b) ASAH has performed all covenants, satisfied all conditions, and complied with all other terms and provisions of this Agreement to be performed, satisfied or complied with by it as of the Effective Date; (c) since such date and other than as previously disclosed to ASA, ASAH has not entered into any material transaction other than transactions which are usual and in the
ordinary course if its business; and (d) no litigation, proceeding, investigation or inquiry is pending or, to the best knowledge of ASAH, threatened, which might result in an action to enjoin or prevent the consummation of the transactions contemplated by this Agreement or, to the extent not disclosed in the ASAH Schedules, by or against ASAH which might result in any material adverse change in any of the assets, properties, business or operations of ASAH.

 

Section 5.4     No Material Adverse Change.         Prior to the Closing Date, there shall not have occurred any material adverse change in the financial condition, business or operations of nor shall any event have occurred which, with the lapse of time or the giving of notice, may cause or create any material adverse change in the financial condition, business or operations of ASAH.

 

Section 5.5     Other Items.      ASA shall have received such further documents, certificates or instruments relating to the transactions contemplated hereby as ASA may reasonably request.

 

ARTICLE VI

	
             
 	
            CONDITIONS PRECEDENT TO OBLIGATIONS OF ASA
 

 

The obligations of ASA under this Agreement are subject to the satisfaction, at or before the Closing date (unless otherwise indicated herein), of the following conditions:

 

Section 6.1     Accuracy of Representations.        The representations and warranties made by ASA in this Agreement were true when made and shall be true as of the Closing Date (except for changes therein permitted by this Agreement) with the same force and effect as if such representations and warranties were made at and as of the Closing Date, and ASA shall have performed and complied with all covenants and conditions required by this Agreement to be performed or complied with by ASA prior to or at the Closing. ASAH shall have been furnished with a certificate, signed by a duly authorized executive officer of ASA and dated the Closing Date, to the foregoing effect.

 

Section 6.2 Director Approval. The Board of Directors of ASA shall have approved this Agreement and the transactions contemplated herein.

 

Section 6.3     Officer’s Certificate.  ASAH shall be furnished with a certificate dated the Closing date and signed by a duly authorized officer of ASA to the effect that: (a) the representations and warranties of ASA set forth in the Agreement and in all Exhibits, Schedules and other documents furnished in connection herewith are in all material respects true and correct as if made on the Effective Date; and (b) ASA had performed all covenants, satisfied all conditions, and complied with all other terms 

 

 

 

 

 

 

and provisions of the Agreement to be performed, satisfied or complied with by it as of the Effective Date.

 

Section 6.4     No Material Adverse Change. Prior to the Closing Date, there shall not have occurred any material adverse change in the financial condition, business or operations of nor shall any event have occurred which, with the lapse of time or the giving of notice, may cause or create any material adverse change in the financial condition, business or operations of ASA.

 

ARTICLE VII

MISCELLANEOUS

 

Section 7.1     Brokers and Finders. Each party hereto hereby represents and warrants that it is under no obligation, express or implied, to pay certain finders in connection with the bringing of the parties together in the negotiation, execution, or consummation of this Agreement. The parties each agree to indemnify the other against any claim by any third person for any commission, brokerage or finder’s fee or other payment with respect to this Agreement or the transactions contemplated hereby based on any alleged agreement or understanding between the indemnifying party and such third person, whether express or implied from the actions of the indemnifying party.

 

Section 7.2     Law, Forum and Jurisdiction. This Agreement shall be construed and interpreted in accordance with the laws of the State of New Jersey, United States of America.

 

Section 7.3    Notices. Any notices or other communications required or permitted hereunder shall be sufficiently given if personally delivered to it or sent by registered mail or certified mail, postage prepaid, or by prepaid telegram addressed as follows:

 

 

	
             
 	
            If to ASAH :
 	
            10039 Bissonnet
 

Suite 250

Houston, Texas 77036

 

	
             
 	
            If to ASA:
 	
            10039 Bissonnet
 

Suite 250

Houston, Texas 77036

 

or such other addresses as shall be furnished in writing by any party in the manner for giving notices hereunder, and any such notice or communication shall be deemed to have been given as of the date so delivered, mailed or telegraphed.

 

Section 7.4     Attorneys’ Fees.     In the event that any party institutes any action or suit to enforce this Agreement or to secure relief from any default hereunder or breach hereof, the breaching party or parties shall reimburse the non-breaching party or parties for all costs, including reasonable attorneys’ fees, incurred in connection therewith and in enforcing or collecting any judgment rendered therein.

 

Section 7.5     Confidentiality.         Each party hereto agrees with the other party that, unless and until the transactions contemplated by this Agreement have been consummated, they and their representatives will hold in strict confidence all data and information obtained with respect to another 

 

 

 

 

 

 

party or any subsidiary thereof from any representative, officer, director or employee, or from any books or records or from personal inspection, of such other party, and shall not use such data or information or disclose the same to others, except: (i) to the extent such data is a matter of public knowledge or is required by law to be published; and (ii) to the extent that such data or information must be used or disclosed in order to consummate the transactions contemplated by this Agreement.

 

Section 7.6     Schedules; Knowledge.      Each party is presumed to have full knowledge of all information set forth in the other party’s schedules delivered pursuant to this Agreement.

 

Section 7.7     Third Party Beneficiaries.   This contract is solely between ASAH and ASA and except as specifically provided, no director, officer, stockholder, employee, agent, independent contractor or any other person or entity shall be deemed to be a third party beneficiary of this Agreement.

 

Section 7.8     Entire Agreement.    This Agreement represents the entire agreement between the parties relating to the subject matter hereof. This Agreement alone fully and completely expresses the agreement of the parties relating to the subject matter hereof. There are no other courses of dealing, understanding, agreements, representations or warranties, written or oral, except as set forth herein. This Agreement may not be amended or modified, except by a written agreement signed by all parties hereto.

 

Section 7.9     Survival; Termination. The representations, warranties and covenants of the respective parties shall survive the Closing Date and the consummation of the transactions herein contemplated for 18 months.

 

Section 7.10   Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which taken together shall be but a single instrument.

 

Section 7.11    Amendment or Waiver.      Every right and remedy provided herein shall be cumulative with every other right and remedy, whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver by any party of the performance of any obligation by the other shall be construed as a waiver of the same or any other default then, theretofore, or thereafter occurring or existing. At any time prior to the Closing Date, this Agreement may be amended by a writing ASAned by all parties hereto, with respect to any of the terms contained herein, and any term or condition of this Agreement may be waived or the time for performance hereof may be extended by a writing ASAned by the party or parties for whose benefit the provision is intended.

 

Section 7.12   Expenses.     Each party herein shall bear all of their respective cost s and expenses incurred in connection with the negotiation of this Agreement and in the consummation of the transactions provided for herein and the preparation thereof.

 

Section 7.13   Headings; Context. The headings of the sections and paragraphs contained in this Agreement are for convenience of reference only and do not form a part hereof and in no way modify, interpret or construe the meaning of this Agreement.

 

Section 7.14   Benefit.          This Agreement shall be binding upon and shall inure only to the benefit of the parties hereto, and their permitted assigns hereunder. This Agreement shall not be assigned by any party without the prior written consent of the other party. 

 

 

 

 

 

 

 

 

 

Section 7.15   Public Announcements.     Except as may be required by law, neither party shall make any public announcement or filing with respect to the transactions provided for herein without the prior consent of the other party hereto.

 

Section 7.16   Severability. In the event that any particular provision or provisions of this Agreement or the other agreements contained herein shall for any reason hereafter be determined to be unenforceable, or in violation of any law, governmental order or regulation, such unenforceability or violation shall not affect the remaining provisions of such agreements, which shall continue in full force and effect and be binding upon the respective parties hereto.

 

Section 7.17   Failure of Conditions; Termination.           In the event of any of the conditions specified in this Agreement shall not be fulfilled on or before the Closing Date, either of the parties have the right either to proceed or, upon prompt written notice to the other, to terminate and rescind this Agreement. In such event, the party that has failed to fulfill the conditions specified in this Agreement will liable for the other parties legal fees. The election to proceed shall not affect the right of such electing party reasonably to require the other party to continue to use its efforts to fulfill the unmet conditions.

 

Section 7.18   No Strict Construction.       The language of this Agreement shall be construed as a whole, according to its fair meaning and intendment, and not strictly for or against either party hereto, regardless of who drafted or was principally responsible for drafting the Agreement or terms or conditions hereof.

 

Section 7.19   Execution Knowing and Voluntary.         In executing this Agreement, the parties severally acknowledge and represent that each: (a) has fully and carefully read and considered this Agreement; (b) has been or has had the opportunity to be fully apprized by its attorneys of the legal effect and meaning of this document and all terms and conditions hereof; (c) is executing this Agreement voluntarily, free from any influence, coercion or duress of any kind.

 

Section 7.20 Amendment. At any time after the Closing Date, this Agreement may be amended by a writing assigned by both parties, with respect to any of the terms contained herein, and any term or condition of this Agreement may be waived or the time for performance hereof may be extended by a writing assigned by the party or parties for whose benefit the provision is intended.

 

Section 7.21 Conflict of Interest. Both ASA and ASAH understand that Anslow & Jaclin, LLP is representing both parties in this transaction which represents a conflict of interest. Both ASA and ASAH have the right to different counsel due to this conflict of interest. Notwithstanding the above, both ASA and ASAH agree to waive this conflict and have Anslow & Jaclin, LLP represent both parties in the above-referenced transaction. Both ASA and ASAH agree to hold this law firm harmless from any and all liabilities that may occur or arise due to this conflict.

 

 

 

 

 

 

 

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

 

	
            ATTEST:
 	
            ASAH CORP.
 

 

	
            ______________________________
 	
            By:
 	
            /s/ Zak Elgamal 
 
	
             
 	
            Zak Elgamal
 	
             
 
	
             
 	
            President
 	
             
 
	
             
 	
             
 	
             
 	
             
 	
             
 

 

	
            ATTEST:
 	
            AMERICAN SURGICAL ASSISTANTS, INC.
 

 

	
            ______________________________
 	
            By:
 	
            /s/ Zak Elgamal 
 
	
             
 	
            Zak Elgamal
 	
             
 
	
             
 	
            President

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