Document:

Exhibit

Exhibit 10.1

WAIVER AND FIFTH AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT

THIS WAIVER AND FIFTH AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT (this "Amendment") dated as of June 7, 2017, is made by and among the BORROWERS party hereto (the "Borrowers"), the GUARANTORS party hereto (the "Guarantors"), the financial institutions party hereto as LENDERS (collectively, "Lenders" and each individually a "Lender") and PNC BANK, NATIONAL ASSOCIATION ("PNC"), as agent for the Lenders (PNC, in such capacity, "Agent"), and J.P. MORGAN EUROPE LIMITED ("JPM Europe"), as European agent for the Lenders (JPM Europe, in such capacity, the "European Agent").
WITNESSETH:
WHEREAS, the Borrowers, the Guarantors, the Lenders, the Agent and the European Agent are parties to that certain Amended and Restated Revolving Credit and Security Agreement, dated as of September 30, 2015, as amended by (i) First Amendment to Amended and Restated Revolving Credit and Security Agreement, dated as of February 16, 2016, (ii) Waiver and Second Amendment to Amended and Restated Revolving Credit and Security Agreement, dated as of May 3, 2016, (iii) Release and Third Amendment to Amended and Restated Revolving Credit and Security Agreement, dated as of September 30, 2016, and (iv) Fourth Amendment to Amended and Restated Revolving Credit and Security Agreement, dated as of November 30, 2016 (as so amended, the "Credit Agreement"); and
WHEREAS, the Borrowers and the Guarantors have requested the Lenders to make certain amendments and other accommodations to the Credit Agreement as more fully set forth herein.  The Lenders have agreed to such amendments and accommodations, subject to the terms and conditions set forth in this Amendment.
NOW THEREFORE, the parties hereto, in consideration of their mutual covenants and agreements hereinafter set forth and intending to be legally bound hereby, covenant and agree as follows:
1.Recitals.  The foregoing recitals are incorporated herein by reference.
2.    Defined Terms.  Capitalized terms not otherwise defined in this Amendment have the meanings given to them in the Credit Agreement.
3.    Waiver.  Pursuant to Section 7.4 of the Credit Agreement, the Loan Parties agreed, among other things, that they would not, pursuant to clause (F) of the definition of Permitted Investments contained in Section 1.2 [General Terms] of the Credit Agreement, enter into investments under the 2021 Convertible Notes Hedge Transaction, in an amount in excess of $20,000,000.  The Loan Parties have advised the Agent that the aggregate investments under the 2021 Convertible Notes Hedge Transaction exceeded the limitation set forth in clause (F) of the 

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definition of Permitted Investments contained in Section 1.2 [General Terms] of the Credit Agreement, which violated Section 7.4 of the Credit Agreement (the "Hedge Investment Overage").  As a result of the Hedge Investment Overage, an Event of Default has occurred under Section 10.5 [Noncompliance] of the Credit Agreement (the "Hedge Investment Default").  The Loan Parties have requested that the Agent and the Lenders waive the Hedge Investment Default.  Subject to the terms and conditions hereof, the Agent and the Lenders hereby waive the Hedge Investment Default.  The foregoing waiver is limited to the Hedge Investment Default and does not constitute a waiver of any other Event of Default or indicate an agreement on the part of the Agent or the Lenders to grant any such waiver in the future.
4.    Amendment of Section 1.2 – Deleted Definitions.  The definition of "2027 Convertible Notes" is hereby deleted from Section 1.2 of the Credit Agreement in its entirety.
5.    Amendment of Section 1.2 – Added Definitions.  The following definitions are hereby added in Section 1.2 of the Credit Agreement in their appropriate alphanumeric positions:
Canadian Reorganization shall mean the reorganization described on Schedule 1.2(c).
2022 Convertible Notes shall mean the Company's unsecured senior convertible notes, issued in 2017 and due in 2022, in the aggregate original principal amount not to exceed $120,000,000 which may be guarantied by certain of the Loan Parties.
2022 Convertible Notes Call Spread Transaction shall mean all 2022 Convertible Notes Hedge Transactions and all 2022 Convertible Notes Warrant Transactions.
2022 Convertible Notes Hedge Transaction shall mean any call option (or substantially equivalent derivative transaction) on the Company's common shares (including, for the avoidance of doubt, any call option that may be settled in whole or in part in cash) purchased by the Company substantially concurrently with, and in connection with, any issuance or issuances of the 2022 Convertible Notes; provided that the purchase price for such 2022 Convertible Notes Hedge Transaction, less the proceeds received by the Company from the sale of any related 2022 Convertible Notes Warrant Transaction, does not exceed the net proceeds received by the Company from the sale of the related 2022 Convertible Notes.
2022 Convertible Notes Warrant Transaction shall mean any call option on, or any warrant or right to purchase (or substantially equivalent derivative transaction), the Company's common shares (including, for the avoidance of doubt, any net 

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share settled call option or warrant) sold by the Company substantially concurrently with, and in connection with, the purchase by the Company of any 2022 Convertible Notes Hedge Transaction.
6.    Amendment of Section 1.2 – Subsection (d) of the Definition of Change of Control.  Subsection (d) of the definition of Change of Control contained in Section 1.2 of the Credit Agreement is hereby amended and restated in its entirety as follows:
(d)    a "change of control" or any comparable term under, and as defined in the documents governing the the 2021 Convertible Notes, the 2022 Convertible Notes or any other material Indebtedness of the Company shall occur prior to the date such Indebtedness is repaid or redeemed in accordance with, or to the extent not prohibited by, the provisions of this Agreement; or
7.    Amendment of Section 1.2 –Definition of Indebtedness.  The last sentence of the definition of Indebtedness contained in Section 1.2 of the Credit Agreement is hereby amended and restated as follows:
For the avoidance of doubt, the 2021 Convertible Notes Warrant Transaction and the 2022 Convertible Notes Warrant Transaction shall not constitute Indebtedness.
8.    Amendment of Section 1.2 – Subsection (F) of the Definition of Permitted Indebtedness.  Subsection (F) of the definition of Permitted Indebtedness contained in Section 1.2 of the Credit Agreement is hereby amended and restated in its entirety as follows:
(F)    Indebtedness under the 2021 Convertible Notes and the 2022 Convertible Notes (in each case, including any guaranties thereof and subject to compliance with Section 7.19);
9.    Amendment of Section 1.2 – Subsection (F) of the Definition of Permitted Investments.  Subsection (F) of the definition of Permitted Investments contained in Section 1.2 of the Credit Agreement is hereby amended and restated in its entirety as follows:
(F)    investments under the 2021 Convertible Notes Hedge Transaction, in an amount not to exceed $20,000,000 (net of the proceeds payable to the Company in respect of any related 2021 Convertible Notes Warrant Transaction) and investments under the 2022 Convertible Notes Hedge Transaction, in an amount not to exceed $20,000,000 (net of the proceeds payable to the Company in respect of any related 2022 Convertible Notes Warrant Transaction); 

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10.    Amendment of Section 2.19(b) – Mandatory Prepayments.  Section 2.19(b) of the Credit Agreement is hereby amended and restated in its entirety as follows:
(b)    In the event of the issuance of any Equity Interests by or capital contributions to any Loan Party (other than any Equity Interests issued in connection with the issuance of the 2021 Convertible Notes or the 2022 Convertible Notes, any conversion of any of the 2021 Convertible Notes or the 2022 Convertible Notes, and/or entry into, exercise, settlement, early termination or other performance of obligations under (including by netting or set-off) the 2021 Convertible Notes Call Spread Transaction or the 2022 Convertible Notes Call Spread Transaction or issuances under either of the foregoing), such Loan Party shall, no later than ten (10) Business Days after the receipt by such Loan Party of the net cash proceeds of any issuance of Equity Interests, repay the Advances under the relevant Facility, in an amount equal to fifty percent (50%) of such net cash proceeds in the case of an issuance of Equity Interests by or capital contribution to any Loan Party.  Such repayments will be applied in the same manner as set forth in Section 11.5.
11.    Amendment of Section 6.15 – Designation as Senior Debt.  Section 6.15 of the Credit Agreement is hereby amended and restated as follows:
6.15    Reserved.
12.    Amendment of Section 7.1 – Merger, Consolidation, Acquisition and Sale of Assets.  Section 7.1 of the Credit Agreement is hereby amended by adding a new clause (c) as follows:
(c)    For the avoidance of doubt, the Canadian Reorganization is expressly permitted.
13.    Amendment of Section 7.7 – Dividends.  Clauses (d) through (j) of Section 7.7 of the Credit Agreement are hereby amended and restated in their entirety as follows:
(d)    repurchases, redemptions or reductions in number of shares issued (including, by utilization of the "net share" concept) by the Company of any Equity Interests in the Company made in connection with (I) the surrender of shares by employees to (x) facilitate the payment by such employees of the taxes associated with compensation received by such employees under the Company's stock-based compensation plans and, (y) to satisfy the purchase price of non-qualified stock options, in an amount not to exceed $2,000,000 in the aggregate (for both (x) and (y)) in any fiscal year and (II) the deduction by the Company, of a portion of 

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restricted stock previously (i.e. prior to the date of the deduction) granted to employees under the Company's stock-based compensation plans to facilitate the payment by such employees of the taxes associated with the vesting of such restricted stock; provided, in each case, that prior to and after giving effect to such repurchases, redemptions or reductions no Default or Event of Default exists or is continuing;
(e)    any purchase by the Company of a 2021 Convertible Notes Hedge Transaction or a 2022 Convertible Notes Hedge Transaction; provided that prior to and after giving effect to such purchase (i) no Default or Event of Default exists or is continuing and (ii) US-Canada Undrawn Availability shall not be less than the US-Canada Undrawn Availability Test Amount for the thirty (30) consecutive days ending as of the date of the most recently delivered US-Canada Borrowing Base Certificate;
(f)    purchases, redemptions or retirements by the Company of any Equity Interests upon exercise and settlement or termination of the 2021 Convertible Notes Hedge Transactions or the 2022 Convertible Notes Hedge Transactions;
(g)    distributions on the 2021 Convertible Notes or the 2022 Convertible Notes (including, without limitation, upon conversion thereof); provided that prior to and after giving effect to such distributions (other than the payment of interest on the 2021 Convertible Notes, the 2022 Convertible Notes and/or delivery of common shares of the Company (together with cash in lieu of any fractional shares) upon any conversion of the 2021 Convertible Notes or the 2022 Convertible Notes) (i) no Default or Event of Default exists or is continuing and (ii) US-Canada Undrawn Availability shall not be less than the US-Canada Undrawn Availability Test Amount for the thirty (30) consecutive days ending as of the date of the most recently delivered US-Canada Borrowing Base Certificate;
(h)    purchases, redemptions or other retirements of any shares of common stock of the Company arising from the conversion of the 2021 Convertible Notes or the 2022 Convertible Notes; provided that prior to and after giving effect to such purchases, redemptions or retirements (i) no Default or Event of Default exists or is continuing and (ii) US-Canada Undrawn Availability shall not be less than the US-Canada Undrawn Availability Test Amount for the thirty (30) consecutive days 

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ending as of the date of the most recently delivered US-Canada Borrowing Base Certificate; 
(i)    the issuance of, entry into, (including any payments of premiums in connection therewith), performance of obligations under (including any payments of interest), and conversion, exercise, repurchase, redemption, settlement or early termination or cancellation of (whether in whole or in part and including by netting or set-off) (in each case, whether in cash, common shares of the Company or any combination thereof) or the satisfaction of any condition that would permit or require any of the foregoing, any 2021 Convertible Notes, any 2021 Convertible Notes Call Spread Transaction, any 2022 Convertible Notes and any 2022 Convertible Notes Call Spread Transaction; and
(j)    [Reserved].
14.    Amendment of Section 7.17 – Prepayment of Indebtedness.  Section 7.17 of the Credit Agreement is hereby amended and restated in its entirety as follows:
7.17    Prepayment of Indebtedness.  At any time, directly or indirectly, prepay any Indebtedness in excess of $1,000,000 in the aggregate during the Term, (other than Indebtedness (a) to Lenders, (b) of a Loan Party to another Loan Party, (c) of an Excluded Subsidiary to a Loan Party, (d) of an Excluded Subsidiary to another Excluded Subsidiary, or (e) under the 2021 Convertible Notes or the 2022 Convertible Notes (including, for the avoidance of doubt, conversion, exercise, repurchase, redemption, settlement or early termination or cancellation); provided, that, in each case, prior to and after giving effect to such prepayment (i) no Default or Event of Default exists or is continuing and (ii) US-Canada Undrawn Availability shall not be less than the US-Canada Undrawn Availability Test Amount for the thirty (30) consecutive days ending as of the date of the most recently delivered US-Canada Borrowing Base Certificate), or repurchase, redeem, retire or otherwise acquire any Indebtedness of any Loan Party in excess of $1,000,000 in the aggregate during the Term (other than Indebtedness (a) of a Loan Party to another Loan Party, (b) of an Excluded Subsidiary to a Loan Party, (c) of an Excluded Subsidiary to another Excluded Subsidiary, or (d) under the 2021 Convertible Notes or the 2022 Convertible Notes; provided, that, in each case, prior to and after giving effect to such repurchases, redemptions, retirements or acquisitions (i) no Default or Event of Default exists or is continuing and (ii) US-Canada Undrawn Availability shall not be less than the US-Canada 

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Undrawn Availability Test Amount for the thirty (30) consecutive days ending as of the date of the most recently delivered US-Canada Borrowing Base Certificate).  Notwithstanding the above, no European Loan Party may, at any time that any amount of the European Facility Revolving Facility Usage is outstanding, directly or indirectly, repay any Indebtedness other than to another European Loan Party or acquire any Indebtedness other than of any other European Loan Party unless the European Undrawn Availability at that time, and immediately after making such repayment, exceeds (and has at all times in the preceding 30 day period exceeded) $3,000,000.
15.    Amendment of Section 7.19 – Covenants as to Certain Indebtedness.  Section 7.19 of the Credit Agreement is hereby amended and restated in its entirety as follows:
7.19    Covenants as to Certain Indebtedness.  Amend or modify any provisions of the documents governing the 2021 Convertible Notes or the 2022 Convertible Notes, in each case, in any material and adverse way (with any changes to the interest rate, redemption requirements, amortization schedule, negative covenants and events of default deemed to be material for purposes hereof, but without limiting any other changes which may be material) without providing at least fifteen (15) calendar days' prior written notice to Agent and Lenders, and obtaining the prior written consent of the Applicable Required Lenders, it being understood for the avoidance of doubt, that adjustments, amendments, and modifications expressly required to be made pursuant to the terms of the 2021 Convertible Notes or the 2022 Convertible Notes shall be permitted.
16.    Amendment of Section 7.21 – Designation of Senior Debt.  Section 7.21 of the Credit Agreement is hereby amended and restated as follows:
7.21    Reserved.
17.    Amendment of Sub-clause (b) of Section 9.5 – Material Occurrences.  Sub-clause (b) of Section 9.5 of the Credit Agreement is hereby amended and restated in its entirety as follows:
(b) any event which with the giving of notice or lapse of time, or both, would constitute an event of default under the 2021 Convertible Notes and/or the 2022 Convertible Notes;

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18.    Amendment of Section 9.16 – Notices Under Certain Indebtedness Documents.  Section 9.16 of the Credit Agreement is hereby amended and restated in its entirety as follows:
9.16    Notices Under Certain Indebtedness Documents.  At the same time sent or provided to the holders of the the 2021 Convertible Notes and/or the 2022 Convertible Notes (in each case, without duplication), deliver to Agent copies of all notices and reports provided in connection with the 2021 Convertible Notes and/or the 2022 Convertible Notes, it being understood that any such notices or reports that are filed by the Company with the SEC shall be deemed to be delivered to Agent on the date on which such notices or reports are posted on the SEC's website at www.sec.gov.
19.    Amendment of Section 10.10 – Cross Default.  Section 10.10 of the Credit Agreement is hereby amended and restated in its entirety as follows:
10.10    Cross Default.  Either (x) any specified "event of default" under any Indebtedness in excess of $1,000,000 (other than the Obligations) of any Loan Party, or any other event or circumstance which would permit the holder of any such Indebtedness of any Loan Party to accelerate such Indebtedness (and/or the obligations of such Loan Party thereunder) prior to the scheduled maturity or termination thereof, shall occur (regardless of whether the holder of such Indebtedness shall actually accelerate, terminate or otherwise exercise any rights or remedies with respect to such Indebtedness), other than any event or circumstance (including, without limitation, the passage of time) that results in the 2021 Convertible Notes or the 2022 Convertible Notes becoming convertible pursuant to their terms; provided that, solely to the extent such 2021 Convertible Notes or the 2022 Convertible Notes are converted in connection with such event or circumstance, prior to and after giving effect to such conversions (i) no Default or Event of Default exists or is continuing and (ii) US-Canada Undrawn Availability shall not be less than the US-Canada Undrawn Availability Test Amount for the thirty (30) consecutive days ending as of the date of the most recently delivered US-Canada Borrowing Base Certificate or (y) a default of the obligations of any Loan Party under any other agreement to which it is a party shall occur which has or is reasonably likely to have a Material Adverse Effect;

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20.    Conditions Precedent.  The effectiveness of this Amendment is subject to the receipt by the Agent of the following items, each in form and content satisfactory to the Agent:
(a)    the Agent shall have received this Amendment, duly executed by a duly authorized officer of each of the Loan Parties, each of the Applicable Required Lenders, the Agent and the European Agent;
(b)    no Potential Default or Event of Default (other than the Hedge Investment Default) shall have occurred; and
(c)    the Borrowers shall have paid all of (i) Agent's costs and expenses (including Agent's attorneys' fees) incurred in connection with the preparation of this Amendment and (ii) the amendment fee set forth in that certain fee letter dated June 7, 2017 among the Agent, PNC Capital Markets LLC and the Company.
21.    Representations and Warranties.  Each Borrower and each Guarantor covenants and agrees with and represents and warrants to the Agent, the European Agent and the Lenders as follows:
(a)    each Borrower's and each Guarantor's obligations under the Credit Agreement, as modified hereby, are and shall remain secured by the Collateral pursuant to the terms of the Credit Agreement and the Other Documents;
(b)    each Borrower and each Guarantor possesses all of the powers requisite for it to enter into and carry out the transactions referred to herein and to execute, enter into and perform the terms and conditions of this Amendment, the Credit Agreement and the Other Documents and any other documents contemplated herein that are to be performed by such Borrower or such Guarantor; and that any and all actions required or necessary pursuant to such Borrower's or such Guarantor's organizational documents or otherwise have been taken to authorize the due execution, delivery and performance by such Borrower and such Guarantor of the terms and conditions of this Amendment, the Credit Agreement and the Other Documents, and that such execution, delivery and performance will not conflict with, constitute a default under or result in a breach of any applicable law or any agreement, instrument, order, writ, judgment, injunction or decree to which such Borrower or such Guarantor is a party or by which such Borrower or such Guarantor or any of its properties are bound, and that all consents, authorizations and/or approvals required or necessary from any third parties in connection with the entry into, delivery and performance by such Borrower and/or such Guarantor of the terms and conditions of this Amendment, the Credit Agreement, the Other Documents and the transactions contemplated hereby and thereby have been obtained by such Borrower and such Guarantor and are in force and effect;
(c)    this Amendment, the Credit Agreement, and the Other Documents constitute the valid and legally binding obligations of each Borrower and each Guarantor, enforceable against such Borrower and such Guarantor in accordance with their respective terms, except as such enforceability may be limited by applicable bankruptcy, 

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insolvency, reorganization, moratorium or similar laws and by general equitable principles, whether enforcement is sought by proceedings at law or in equity;
(d)    all representations and warranties made by each Borrower and each Guarantor in the Credit Agreement and the Other Documents are true and correct in all material respects as of the date hereof, with the same force and effect as if all such representations and warranties were fully set forth herein and made as of the date hereof and each Borrower and each Guarantor has complied with all covenants and undertakings in the Credit Agreement and the Other Documents;
(e)    this Amendment is not a substitution, novation, discharge or release of any Borrower's or any Guarantor's obligations under the Credit Agreement or any of the Other Documents, all of which shall and are intended to remain in full force and effect;
(f)    no Event of Default or Potential Default has occurred and is continuing under the Credit Agreement or the Other Documents (other than the Hedge Investment Default); there exist no defenses, offsets, counterclaims or other claims with respect to any Borrower's or any Guarantor's obligations and liabilities under the Credit Agreement or any of the Other Documents;
(g)    each Borrower and each Guarantor hereby ratifies and confirms in full its duties and obligations under the Credit Agreement, the Guaranty Agreement, and the Other Documents applicable to it, each as modified hereby; and
(h)    each Borrower and each Guarantor hereby agrees, as an independent obligation to the European Agent (to the extent such Guarantor or Borrower is party to the English Law Guaranty), to be bound by the terms of the English Law Guaranty as if it had been set out in full again here with such changes as are appropriate to fit this context, for the avoidance of doubt with references to the Credit Agreement and Other Documents each as modified hereby.
22.    Reimbursement of Expenses.  The Borrowers, jointly and severally, shall pay or cause to be paid to the Agent all costs and expenses accrued through the date hereof and the costs and expenses of the Agent including, without limitation, fees of the Agent's counsel in connection with this Amendment.
23.    Document References.  As used in the Credit Agreement and each of the Other Documents, the terms "this Credit Agreement", "herein", "hereinafter", "hereto", "hereof", and words of similar import shall, unless the context otherwise requires, mean the Credit Agreement as amended and modified by this Amendment.  The term "Other Documents" as defined in the Credit Agreement shall include this Amendment.
24.    Integration.  This Amendment, together with the Credit Agreement and the Other Documents, constitutes the entire agreement and understanding among the parties relating to the subject matter hereof, and supersedes all prior proposals, negotiations, agreements and understandings relating to such subject matter.  In entering into this Amendment, each Borrower 

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and each Guarantor acknowledges that it is relying on no statement, representation, warranty, covenant or agreement of any kind made by Agent or any Lender or any employee or agent of Agent or any Lender, except for the agreements of Agent and the Lenders set forth herein.  This Amendment shall be construed without regard to any presumption or rule requiring that it be construed against the party causing this Amendment or any part hereof to be drafted.
25.    Successors and Assigns.  This Amendment shall apply to and be binding upon the Borrowers and the Guarantors in all respects and shall inure to the benefit of each of the other parties hereto and their respective successors and assigns, provided that none of the Borrowers nor the Guarantors may assign, transfer or delegate its duties and obligations hereunder.  Nothing expressed or referred to in this Amendment is intended or shall be construed to give any person or entity other than the parties hereto a legal or equitable right, remedy or claim under or with respect to this Amendment, the Credit Agreement or any Other Documents, it being the intention of the parties hereto that this Amendment and all of its provisions and conditions are for the sole and exclusive benefit of the parties hereto.
26.    Severability.  If any one or more of the provisions contained in this Amendment, the Credit Agreement, or the Other Documents shall be held invalid, illegal or unenforceable in any respect, the validity, legality or enforceability of the remaining provisions contained in this Amendment, the Credit Agreement or the Other Documents shall not in any way be affected or impaired thereby, and this Amendment, the Credit Agreement and the Other Documents shall otherwise remain in full force and effect.
27.    Further Assurances.  Each Borrower and each Guarantor agrees to execute such other and further documents and instruments as Agent may request to implement the provisions of this Amendment.
28.    Governing Law.  This Amendment will be governed by the internal laws of the State of New York without reference to its conflicts of law principles.
29.    Waiver and Release.  Each Borrower and each Guarantor, by signing below, hereby waives and releases Agent, the European Agent, Issuer and each of the Lenders and their respective directors, officers, employees, attorneys, affiliates and subsidiaries from any and all claims, offsets, defenses and counterclaims of which any Borrower or any Guarantor is aware, such waiver and release being with full knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with respect thereto.
30.    Counterparts; Electronically Delivered Signatures.  This Amendment may be executed in any number of counterparts each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument.  Delivery of executed signature pages hereof by facsimile or other means of electronic transmission from one party to another shall constitute effective and binding execution and delivery thereof by such party.  Any party that delivers its original counterpart signature to this amendment by facsimile transmission hereby covenants to deliver its original counterpart signature promptly thereafter to the Agent.

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31.    WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT, THE CREDIT AGREEMENT OR ANY OTHER DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
[SIGNATURE PAGES FOLLOW]

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[SIGNATURE PAGE TO FIFTH AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT]
Each of the parties has signed this Fifth Amendment to Amended and Restated Revolving Credit and Security Agreement as of the day and year first above written.

	
		
	 
	US BORROWERS:

	 
	Invacare Corporation, an Ohio corporation
By:  /s/ Robert K. Gudbranson   
Name:   Robert K. Gudbranson
Title:   Senior Vice President and Chief Financial Officer

	 
	Freedom Designs, Inc., a California corporation
Alber USA, LLC, an Ohio limited liability company
The Aftermarket Group, Inc., a Delaware corporation
Medbloc, Inc., a Delaware corporation
By:  /s/ Robert K. Gudbranson   
Name:   Robert K. Gudbranson
Title:   Vice President and Treasurer

	 
	Invacare Continuing Care, Inc., a Missouri corporation
By:  /s/ Robert K. Gudbranson   
Name:   Robert K. Gudbranson
Title:   Vice President

[SIGNATURE PAGE TO FIFTH AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT]

	
		
	 
	US GUARANTORS:

	 
	Adaptive Switch Laboratories, Inc., a Texas corporation
The Helixx Group, Inc., an Ohio corporation
Invacare Credit Corporation, an Ohio corporation
Invacare International Corporation, an Ohio corporation
Invacare Holdings, LLC, an Ohio limited liability company
Invacare Florida Holdings, LLC, a Delaware limited liability company
Invacare Florida Corporation, a Delaware corporation
Invamex Holdings LLC, a Delaware limited liability company 
By:  /s/ Robert K. Gudbranson   
Name:   Robert K. Gudbranson
Title:   Vice President and Treasurer

	 
	Invacare Canadian Holdings, Inc., a Delaware corporation
Invacare Canadian Holdings, LLC, a Delaware limited liability company
By:  /s/ Robert K. Gudbranson   
Name:   Robert K. Gudbranson
Title:   President

[SIGNATURE PAGE TO FIFTH AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT]

	
		
	 
	CANADIAN BORROWERS:

	 
	Invacare Canada L.P., an Ontario limited partnership, by its general partner, Invacare Canada General Partner Inc.
Carroll Healthcare L.P., an Ontario limited partnership, by its general partner, Carroll Healthcare General Partner, Inc.
Motion Concepts L.P., an Ontario limited partnership, by its general partner, Carroll Healthcare Inc.
Perpetual Motion Enterprises Limited, an Ontario corporation
By:  /s/ Robert K. Gudbranson   
Name:   Robert K. Gudbranson
Title:   Vice President and Treasurer

	 
	CANADIAN GUARANTORS:

	 
	Carroll Healthcare General Partner, Inc., an Ontario corporation
Carroll Healthcare Inc., an Ontario corporation
Invacare Canada General Partner Inc., a Canada corporation
By:  /s/ Robert K. Gudbranson   
Name:   Robert K. Gudbranson
Title:   Vice President and Treasurer
 

[SIGNATURE PAGE TO FIFTH AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT]

	
		
	 
	ENGLISH BORROWERS:

	 
	Invacare Limited, a company incorporated in England and Wales with company number 05178693
By:  /s/ Theodore Vassiloudis   
Name:   Theodore Vassiloudis
Title:   Director

	 
	ENGLISH GUARANTORS:

	 
	Invacare Limited, a company incorporated in England and Wales with company number 05178693
By:  /s/ Theodore Vassiloudis   
Name:   Theodore Vassiloudis
Title:   Director

	 
	Invacare UK Operations Limited, a company incorporated in England and Wales with company number 03281202
By:  /s/ Theodore Vassiloudis   
Name:   Theodore Vassiloudis
Title:   Director

[SIGNATURE PAGE TO FIFTH AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT]

	
		
	 
	FRENCH BORROWERS:

	 
	Invacare Poirier SAS
By:  /s/ Theodore Vassiloudis   
Name:   Theodore Vassiloudis
Title:   President Duly Authorised

	 
	FRENCH GUARANTORS:

	 
	Invacare Poirier SAS
By:  /s/ Theodore Vassiloudis   
Name:   Theodore Vassiloudis
Title:   President Duly Authorised

	 
	Invacare France Operations S.A.S.
By:  /s/ Theodore Vassiloudis   
Name:   Theodore Vassiloudis
Title:   President Duly Authorised

[SIGNATURE PAGE TO FIFTH AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT]

PNC BANK, NATIONAL ASSOCIATION, as Lender and as Agent
By:  /s/ Todd Milenius    
Name:    Todd Milenius
Title:    Senior Vice President

[SIGNATURE PAGE TO FIFTH AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT]

KEYBANK NATIONAL ASSOCIATION, as Lender
By:  /s/ Jonathan Roe    
Name:    Jonathan Roe
Title:    Vice President

[SIGNATURE PAGE TO FIFTH AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT]

JPMORGAN CHASE BANK, N.A., as Lender
By:  /s/ Lisa A. Morrison    
Name:  Lisa A. Morrison
Title:    Authorized Officer
J.P. MORGAN EUROPE LIMITED, as Lender
By:  /s/ Matthew Sparkes    
Name:    Matthew Sparkes
Title:    Authorised Officer

[SIGNATURE PAGE TO FIFTH AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT]

J.P. MORGAN EUROPE LIMITED, as European Agent
By:  /s/ Matthew Sparkes    
Name:  Matthew Sparkes
Title:     Authorised Officer

[SIGNATURE PAGE TO FIFTH AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT]

CITIZENS BUSINESS CAPITAL, A DIVISION OF CITIZENS ASSET FINANCE, INC., as Lender
By:  /s/ David Slattery    
Name:    David Slattery
Title:    Vice President

Schedule 1.2(c)
Canadian Reorganization
A reorganization consisting substantially of the following steps:
		
	1.
	Carroll Healthcare Inc., an Ontario corporation and a Canadian Guarantor ("Carroll Inc.") will contribute its partnership units of Carroll Healthcare L.P., an Ontario limited partnership and a Canadian Borrower ("Carroll LP") to Invacare Canada L.P., an Ontario limited partnership and a Canadian Borrower ("Invacare Canada") for consideration consisting of additional partnership units of Invacare Canada;

		
	2.
	Carroll LP will be terminated in accordance with its limited partnership agreement and applicable law and an undivided interest in its assets will be distributed to its partners on a pro rata basis;

		
	3.
	Carroll Healthcare General Partner, Inc., an Ontario corporation and a Canadian Guarantor ("Carroll GP"), will sell its one percent (1%) undivided interest in the assets received from Carroll LP to Invacare Canada for cash consideration; and

		
	4.
	Carroll GP will then be dissolved and its assets will be distributed to its sole shareholder Invacare Canadian Holdings, Inc., a Delaware corporation and a US Guarantor.devago_ex1001.htm

EXHIBIT 10.01

 

SHARE EXCHANGE AGREEMENT

 

This Share Exchange Agreement, dated as of June 7th, 2017, (this “Agreement”) by and among Devago, Inc., Nevada corporation (“DVGG”) and 12 Hong Kong Limited, a Hong Kong Special Administrative Region corporation (“12RT”), and the Shareholders of 12RT (the “12RT Shareholders”). For purposes of this Agreement DVGG, 12RT, and the 12RT Shareholders are sometimes collectively referred to as the “Parties” and individually as a “Party.”

 

RECITALS

 

WHEREAS, the 12RT Shareholders and 12RT believe it is in their respective best interests for the 12RT Shareholders to exchange, Four Million (4,000,000) shares of 12RT common stock, representing One Hundred (100%) percent of the issued and outstanding shares of 12RT (the “12RT Shares”),for an aggregate of Fifty Five Million (55,000,000) shares of DVGG stock, consisting of: (i) Fifty Million (50,000,000) shares of post forward split (as set forth in Section 5.5 below) DVGG Common Stock; and, (ii) Five Million (5,000,000) shares of DVGG Series A Preferred Stock (such shares being hereinafter referred to as the “DVGG Shares”); and, DVGG believes it is in its best interest and the best interest of its stockholders to acquire the 12RT Shares in exchange for the DVGG Shares, all upon the terms and subject to the conditions set forth in this Agreement (the “Share Exchange”); and,

 

WHEREAS, it is the intention of the parties that: (i) the Share Exchange shall qualify as a tax-free reorganization under Section 368(a)(1)(B) of the Internal Revenue Code of 1986, as amended (the “Code”); and (ii) the Share Exchange shall qualify as a transaction in securities exempt from registration or qualification under the Securities Act of 1933, as amended and in effect on the date of this Agreement (the “Securities Act”); and,

 

WHEREAS, it is the intention of the parties that upon the Closing (as hereinafter defined)12RT shall become a wholly owned subsidiary of DVGG; and, 

 

WHEREAS, the Parties agree that the foregoing Recitals are true and correct and are hereby incorporated into this Agreement by this reference; and, 

 

NOW, THEREFORE, in consideration of the mutual terms, conditions and other agreements set forth herein, the parties hereto agree as follows:

 

ARTICLE I

 

EXCHANGE OF 12RT SHARES FOR DVGG SHARES

 

Section 1.1 Agreements to Exchange 12RT Shares for DVGG Shares. On the Closing Date (as hereinafter defined) and upon the terms and subject to the conditions set forth in this Agreement, the 12RT Shareholders shall assign, transfer, convey and deliver the 12RT Shares to DVGG in consideration and exchange for the 12RT Shares, DVGG shall issue, transfer, convey and deliver the DVGG Shares to the 12RT Shareholders.

 

Section 1.2 Closing and Actions at Closing. The closing of the Share Exchange (the “Closing”) shall take place remotely via the exchange of documents and signatures at such time and date as the parties hereto shall agree orally or in writing (the “Closing Date”).

 

Section 1.3 Share Exchange. After Closing and contingent upon the satisfaction of the terms and conditions set forth in this Agreement, Four Million (4,000,000) shares of 12RT common stock, representing One Hundred (100%) percent of the 12RT Shares shall be exchanged and delivered to DVGG and in exchange DVGG shall exchange and deliver an aggregate of Fifty Five Million (55,000,000) shares of DVGG stock consisting of: (i) Fifty Million (50,000,000) shares of post forward split common stock; and, (ii) Five Million (5,000,000) shares of DVGG Series A Preferred Stock to the 12RT Shareholders. 

 

	 
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Section 1.4 Restrictions on DVGG Shares Issued Pursuant to this Agreement. The DVGG shares to be issued by DVGG pursuant to this Agreement have not been registered and are being issued pursuant to a specific exemption under the Securities Act, as well as under certain state securities laws for transactions by an issuer not involving any public offering or in reliance on limited federal preemption from such state securities registration laws, based on the suitability and investment representations made by the 12RT Shareholders to DVGG. The DVGG Shares of to be issued by DVGG pursuant to this Agreement must be held and may not be sold, transferred, or otherwise disposed of for value unless such securities are subsequently registered under the Securities Act or an exemption from such registration is available, and that the certificates representing the Shares of DVGG Common Stock issued in the Share Exchange will bear a legend in substantially the following form so restricting the sale of such securities:

 

The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and are “restricted securities” within the meaning of Rule 144 promulgated under the Securities Act. The securities have been acquired for investment and may not be sold or transferred without complying with Rule 144 in the absence of an effective registration or other compliance under the Securities Act.

 

Section 1.5 Share Exchange Procedure. The 12RT Shareholders may exchange their certificates representing the 12RT Shares by delivering such certificate(s) to DVGG duly executed and endorsed in blank (or accompanied by duly executed stock powers duly endorsed in blank), in each case in proper form for transfer, with signatures guaranteed, and, if applicable, with all stock transfer and any other required documentary stamps affixed thereto and with appropriate instructions to allow the transfer agent to issue certificates for the DVGG Shares to the holder thereof.

 

ARTICLE II

 

REPRESENTATIONS AND WARRANTIES OF DVGG

 

DVGG represent, warrant and agree that all of the statements in the following subsections of this Article II are true and complete as of the date hereof.

 

Section 2.1 Corporate Organization

 

A. Devago, Inc. is a corporation duly organized, validly existing and in good standing under the laws of Nevada, and has all requisite corporate power and authority to own its properties and assets and governmental licenses, authorizations, consents and approvals to conduct its business as now conducted and is duly qualified to do business and is in good standing in each jurisdiction in which the nature of its activities makes such qualification and being in good standing necessary, except where the failure to be so qualified and in good standing will not have a Material Adverse Effect on the activities, business, operations, properties, assets, condition or results of operation of DVGG. “Material Adverse Effect” means, when used with respect to DVGG, any event, occurrence, fact, condition, change or effect, which, individually or in the aggregate, would reasonably be expected to be materially adverse to the business, operations, properties, assets, condition (financial or otherwise), or operating results of DVGG, or materially impair the ability of DVGG to perform its obligations under this Agreement, excluding any change, effect or circumstance resulting from (i) the announcement, pendency or consummation of the transactions contemplated by this Agreement; or (ii) changes in the U.S. securities markets generally.

 

B. Copies of the Articles of Incorporation and Bylaws of DVGG with all amendments thereto, as of the date hereof (the “DVGG Charter Documents”), have been furnished to 12RT, if so requested, and such copies are accurate and complete as of the date hereof. The minute books of DVGG are current as required by law, contain the minutes of all meetings of the DVGG Board and its stockholders from its date of incorporation to the date of this Agreement, and adequately reflect all material actions taken by the DVGG Board and its stockholders. DVGG is not in violation of any of the provisions of the DVGG Charter Documents.

 

	 
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Section 2.2 Capitalization of DVGG. 

 

A. The authorized capital stock of DVGG consists of: (i) 100,000,000 shares of common stock, par value $0.00001, of which 24,582,004 shares of common stock are issued and outstanding immediately prior to the Share Exchange; (ii) 100,000,000 shares of preferred stock, par value $0.00001, of which NIL shares of preferred stock are issued and outstanding immediately prior to the Share Exchange. 

 

B. All of the issued and outstanding shares of common stock of DVGG immediately prior to this Share Exchange are, and all shares of common stock of DVGG when issued in accordance with the terms hereof will be, duly authorized, validly issued, fully paid and non-assessable, will have been issued in compliance with all applicable U.S. federal and state securities laws and state corporate laws, and will have been issued free of preemptive rights of any security holder. The issuance of all of the shares of DVGG described in this Section 2.2 have been, or will be, as applicable, in compliance with U.S. federal and state securities laws and state corporate laws and no stockholder of DVGG has any right to rescind or bring any other claim against DVGG for failure to comply with the Securities Act, or state securities laws.

 

Section 2.3 Shell Status. As of the date of this Agreement, DVGG represents that is a “shell company” as that term is defined in Rule 405 of the Securities Act and Rule 12b-2 of the Exchange Act. 

 

Section 2.4 Authorization, Validity and Enforceability of Agreements. DVGG has all corporate power and authority to execute and deliver this Agreement and all agreements, instruments and other documents to be executed and delivered in connection with the transactions contemplated by this Agreement (collectively the “Agreements”) to perform its obligations hereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery of the Agreements by DVGG and the consummation by DVGG of the transactions contemplated hereby and thereby, have been duly authorized by all necessary corporate action of DVGG, and no other corporate proceedings on the part of DVGG are necessary to authorize the Agreements or to consummate the transactions contemplated hereby and thereby. The Agreements constitute the valid and legally binding obligation of DVGG and is enforceable in accordance with its terms, except as such enforcement may be limited by general equitable principles, or by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors rights generally. DVGG does not need to give any notice to, make any filings with, or obtain any authorization, consent or approval of any government or governmental agency or other party in order for it to consummate the transactions contemplated by any of the Agreements, resulting from the issuance of the DVGG Shares in connection with the Share Exchange.

 

Section 2.5 No Conflict or Violation. Neither the execution and delivery of the Agreements by DVGG, nor the consummation by DVGG of the transactions contemplated thereby will: (i) contravene, conflict with, or violate any provision of the DVGG Charter Documents; (ii) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge or other restriction of any government, governmental agency, court, administrative panel or other tribunal to which DVGG is subject; (iii) conflict with, result in a breach of, constitute a default (or an event or condition which, with notice or lapse of time or both, would constitute a default) under, result in the acceleration of, create in any party the right to accelerate, terminate, modify or cancel, or require any notice under any agreement, contract, lease, license, instrument or other arrangement to which DVGG is a party or by which it is bound, or to which any of its assets or properties are subject; or (iv) result in or require the creation or imposition of any encumbrance of any nature upon or with respect to any of DVGG’ assets, including without limitation, the DVGG Shares.

 

Section 2.6 Litigation. There is no action, suit, proceeding or investigation (“Action”) pending or, to the knowledge of DVGG, currently threatened against DVGG or any of its affiliates, that may affect the validity of this Agreement or the right of DVGG to enter into this Agreement or to consummate the transactions contemplated hereby or thereby. There is no Action pending or, to the knowledge of DVGG, currently threatened against DVGG or any of its affiliates, before any court or by or before any governmental body or any arbitration board or tribunal, nor is there any judgment, decree, injunction or order of any court, governmental department, commission, agency, instrumentality or arbitrator against or relating to DVGG or any of its affiliates. Neither DVGG nor any of its affiliates is a party or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality. There is no Action by DVGG or any of its affiliates currently pending or which DVGG or any of its affiliates intends to initiate.

 

	 
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Section 2.7 Compliance with Laws. DVGG has been and is in compliance with, and has not received any notice of any violation of any, applicable law, order, ordinance, regulation or rule of any kind whatsoever, including without limitation the Securities Act, the Exchange Act, the applicable rules and regulations of the SEC or the applicable securities laws and rules and regulations of any state.

 

Section 2.8 Financial Statements. DVGG’s financial statements (the “Financial Statements”) have been prepared in accordance with generally accepted accounting principles applicable in the United States of America (“U.S. GAAP”) applied on a consistent basis, except that those Financial Statements that are not audited do not contain all footnotes required by U.S. GAAP. The Financial Statements fairly present the financial condition and operating results of DVGG as of the dates, and for the periods, indicated therein, subject to normal year-end audit adjustments. DVGG has no material liabilities (contingent or otherwise). DVGG is not a guarantor or indemnitor of any indebtedness of any other person, entity or organization. DVGG maintains a standard system of accounting established and administered in accordance with U.S. GAAP.

 

Section 2.9 Books, Financial Records and Internal Controls. All the accounts, books, registers, ledgers, DVGG Board minutes and financial and other records of whatsoever kind of DVGG have been fully, properly and accurately kept and completed; there are no material inaccuracies or discrepancies of any kind contained or reflected therein; and they give and reflect a true and fair view of the financial, contractual and legal position of DVGG. DVGG maintains a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate actions are taken with respect to any differences.

 

Section 2.10 No Disagreements with Accountants and Lawyers. There are no disagreements of any kind presently existing, or anticipated by DVGG to arise, between DVGG and any accountants and/or lawyers formerly or presently engaged by DVGG. DVGG is current with respect to fees owed to its accountants and lawyers.

 

Section 2.11 Absence of Undisclosed Liabilities. Except as specifically disclosed herein: (A) there has been no event, occurrence or development that has resulted in or could result in a Material Adverse Effect; (B) DVGG has not incurred any liabilities, obligations, claims or losses, contingent or otherwise, including debt obligations, other than professional fees to be paid prior to Closing; (C) DVGG has not declared or made any dividend or distribution of cash or property to its shareholders, purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, or issued any equity securities other than with respect to transactions contemplated hereby; (D) DVGG has not made any loan, advance or capital contribution to or investment in any person or entity; (E) DVGG has not discharged or satisfied any lien or encumbrance or paid any obligation or liability (absolute or contingent), other than current liabilities paid in the ordinary course of business; (F) DVGG has not suffered any losses or waived any rights of material value, whether or not in the ordinary course of business, or suffered the loss of any material amount of prospective business; and (G) except for the Share Exchange, DVGG has not entered into any transaction other than in the ordinary course of business, or entered into any other material transaction, whether or not in the ordinary course of business.

 

Section 2.12 No Undisclosed Events or Circumstances. No event or circumstance has occurred or exists with respect to DVGG or its respective businesses, properties, prospects, operations or financial condition, which, under applicable law, rule or regulation, requires public disclosure or announcement by DVGG but which has not been so publicly announced or disclosed. DVGG has not provided to 12RT, or the 12RT Shareholder, any material non-public information or other information which, according to applicable law, rule or regulation, was required to have been disclosed publicly by DVGG but which has not been so disclosed, other than with respect to the transactions contemplated by this Agreement and/or the Share Exchange.

 

Section 2.13 Disclosure. This Agreement and any certificate attached hereto or delivered in accordance with the terms hereof by or on behalf of DVGG in connection with the transactions contemplated by this Agreement, when taken together, do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements contained herein and/or therein not misleading.

 

	 
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ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF 12RT

 

12RT represents, warrants and agrees that all of the statements in the following subsections of this Article III, pertaining to 12RT, are true and complete as of the date hereof.

 

Section 3.1 Corporate Organization

 

A. 12 Hong Kong Limited is a Hong Kong Special Administrative Region corporation, and has all requisite corporate power and authority to own its properties and assets and governmental licenses, authorizations, consents and approvals to conduct its business as now conducted and is duly qualified to do business and is in good standing in each jurisdiction in which the nature of its activities makes such qualification and being in good standing necessary, except where the failure to be so qualified and in good standing will not have a Material Adverse Effect on the activities, business, operations, properties, assets, condition or results of operation of 12RT. “Material Adverse Effect” means, when used with respect to 12RT, any event, occurrence, fact, condition, change or effect, which, individually or in the aggregate, would reasonably be expected to be materially adverse to the business, operations, properties, assets, condition (financial or otherwise), or operating results of 12RT, or materially impair the ability of 12RT to perform its obligations under this Agreement, excluding any change, effect or circumstance resulting from (i) the announcement, pendency or consummation of the transactions contemplated by this Agreement; or (ii) changes in the U.S. securities markets generally.

 

B. Copies of the formation documents of 12RT, or their equivalent, with all amendments thereto, as of the date hereof (the “12RT Charter Documents”), have been furnished to DVGG, if so requested, and such copies are accurate and complete as of the date hereof. The minute books of 12RT are current as required by law, contain the minutes of all meetings of the 12RT Board and its stockholders from its date of formation to the date of this Agreement, and adequately reflect all material actions taken by the 12RT Board and its stockholders. 12RT is not in violation of any of the provisions of the 12RT Charter Documents.

 

Section 3.2 Capitalization of 12RT. 

 

A. 12RT represents and warrants that it currently has, and shall continue to have as of the date of Closing, Four Million (4,000,000) shares of common stock issued and outstanding and NIL shares of Preferred Stock issued and outstanding.

 

B. All of the issued and outstanding shares of common stock of 12RT immediately prior to this Share Exchange are, and all shares of common stock of 12RT when issued in accordance with the terms hereof will be, duly authorized, validly issued, fully paid and non-assessable, will have been issued in compliance with all applicable securities laws and corporate laws of Hong Kong and will have been issued free of preemptive rights of any security holder. 

 

Section 3.3 Shareholders of 12RT’s Common Stock. 12RT has provided DVGG a true and complete list of the holders of all issued and outstanding shares of 12RT including number of DVGG shares held as of the date of this Agreement.

 

Section 3.4 Directors and Officers of 12RT. The duly elected or appointed directors and the duly appointed officers of 12RT are as set out in Schedule 3.4.

 

Section 3.5 Financial Statements. 12RT has kept all books and records since inception and such financial statements have been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) consistently applied throughout the periods involved. The balance sheets are true and accurate and present fairly as of their respective dates the financial condition of 12RT. As of the date of such balance sheets, except as and to the extent reflected or reserved against therein, including but not limited to any previous tax liability 12RT had no liabilities or obligations (absolute or contingent) which should be reflected in the balance sheets or the notes thereto prepared in accordance with GAAP, and all assets reflected therein are properly reported and present fairly the value of the assets of 12RT, in accordance with GAAP. The statements of operations, stockholders’ equity and cash flows reflect fairly the information required to be set forth therein by GAAP.

 

	 
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The books and records, financial and otherwise, of 12RT are, in all material aspects, complete and correct and have been maintained in accordance with good business and accounting practices.

 

All of 12RT’s assets are reflected on its financial statements, and 12RT has no material liabilities, direct or indirect, matured or unmatured, contingent or otherwise which is not reflected on its financial statements.

 

Section 3.6 Information. The information concerning 12RT set forth in this Agreement 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 3.7 Personal Property. 12RT possesses, and has good and marketable title of all property necessary for the continued operation of the business of 12RT as presently conducted and as represented to DVGG. All such property is used in the business of 12RT. All such property is in reasonably good operating condition (normal wear and tear excepted), and is reasonably fit for the purposes for which such property is presently used. All material equipment, furniture, fixtures and other tangible personal property and assets owned or leased by 12RT and its subsidiaries is owned by 12RT or its subsidiaries free and clear of all liens, security interests, charges, encumbrances, and other adverse claims.

 

Section 3.8 Intellectual Property. 12RT represents and warrants that all trademarks and trademark applications, and all patents and patent applications, as set forth in Schedule 3.8, and any trade secrets, and “know-how” held relating to business of 12RT, and all other intangible assets, in 12RT’s possession or that may be reasonably acquired by 12RT any other proprietary information and trade secrets relating to the business of 12RT (collectively the “Intellectual Property”) shall remain the intellectual property of 12RT as of the date of Closing of this Agreement and that 12RT shall take any steps reasonable to assign or otherwise transfer any Intellectual Property right to DVGG, as necessary to protect DVGG’s rights to the same. Further, 12RT owns, free and clear of any encumbrance, or has the valid right to sell all Intellectual Property used by in its business, as currently conducted. 12RT represents that it has not received any written complaint, claim or notice alleging any such infringement, violation or misappropriation. Additionally, 12RT has taken reasonable precautions (i) to protect its rights in its Intellectual Property and (ii) to maintain the confidentiality of its trade secrets, know-how and other confidential Intellectual Property, related to the business and to 12RT’s knowledge, there have been no acts or omissions by the managers, members, employees and agents of 12RT, the result of which would be to materially compromise the rights of 12RT to apply for or enforce appropriate legal protection of 12RT’s Intellectual Property.

 

Section 3.9 Material Contracts and Transactions. Schedule 3.9 attached hereto lists each material contract, agreement, license, permit, arrangement, commitment, instrument or contract to which 12RT or any of its subsidiaries is a party (each, a “Contract”). Each Contract is in full force and effect, and there exists no material breach or violation of or default by 12RT or any of its subsidiaries under any Contract, or any event that with notice or the lapse of time, or both, will create a material breach or violation thereof or default under any Contract by 12RT or any of its subsidiaries. The continuation, validity, and effectiveness each Contract will in no way be affected by the consummation of the Transaction or any of the transactions contemplated in this Agreement. There exists no actual or threatened termination, cancellation, or limitation of, or any amendment, modification, or change to any Contract.

 

Section 3.10 Subsidiaries. Except as set forth on Schedule 3.10, 12RT does not have any subsidiaries or agreements of any nature to acquire any subsidiary or to acquire or lease any other business operations. Each subsidiary of 12RT is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation and has the requisite corporate power and authority to own, lease and to carry on its business as now being conducted. Each subsidiary of 12RT is duly qualified to do business and is in good standing as a corporation in each of the jurisdictions in which 12RT owns property, leases property, does business, or is otherwise required to do so, where the failure to be so qualified would have a material adverse effect on the business of 12RT and its subsidiaries taken as a whole. 12RT owns all of the shares of each subsidiary of 12RT and there are no outstanding options, warrants, subscriptions, conversion rights, or other rights, agreements, or commitments obligating any subsidiary of 12RT to issue any additional common shares of such subsidiary, or any other securities convertible into, exchangeable for, or evidencing the right to subscribe for or acquire from any subsidiary of 12RT any shares of such subsidiary.

 

	 
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Section 3.11 Absence of Certain Changes or Events. As of the date of this Agreement, (a) there has not been any material adverse change in the business, operations, properties, assets, or condition (financial or otherwise) of 12RT; and (b) 12RT has not: (i) declared or made, or agreed to declare or make, any payment of dividends or distributions of any assets of any kind whatsoever to stockholders or purchased or redeemed, or agreed to purchase or redeem, any of its shares; (ii) made any material change in its method of management, operation or accounting; (iii) entered into any other material transaction other than in the ordinary course of its business; or (iv) made any increase in or adoption of any profit sharing, bonus, deferred compensation, insurance, pension, retirement, or other employee benefit plan, payment, or arrangement made to, for, or with its officers, directors, or employees.

 

Section 3.12 Litigation and Proceedings. There are no actions, suits, proceedings, or investigations pending or, to the knowledge of 12RT after reasonable investigation, threatened by or against 12RT or affecting 12RT 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. 12RT does not have any knowledge of any material default on its part with respect to any judgment, order, injunction, decree, award, rule, or regulation of any court, arbitrator, or governmental agency or instrumentality.

 

Section 3.13 Compliance With Laws and Regulations. To the best of its knowledge, 12RT has complied with all applicable statutes and regulations, except to the extent that noncompliance would not materially and adversely affect the business, operations, properties, assets, or condition of 12RT or except to the extent that noncompliance would not result in the occurrence of any material liability for 12RT. This compliance includes, but is not limited to, the filing of all reports to date with relevant authorities.

 

Section 3.14 Approval of Agreement. The Board of Directors of 12RT has authorized the execution and delivery of this Agreement by 12RT and has approved this Agreement and the transactions contemplated hereby.

 

Section 3.15 Valid Obligation. This Agreement and all agreements and other documents executed by 12RT in connection herewith constitute the valid and binding obligation of 12RT, enforceable in accordance with its or their terms, except as may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and subject to the qualification that the availability of equitable remedies is subject to the discretion of the court before which any proceeding therefore may be brought.

 

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES OF 12RT SHAREHOLDERS

 

The 12RT Shareholders hereby severally and not jointly represents and warrants to DVGG:

 

Section 4.1 Authority. The 12RT Shareholders have the right, power, authority and capacity to execute and deliver this Agreement to which such 12RT Shareholders are a party, to consummate the transactions contemplated by this Agreement, and to perform such 12RT Shareholder’s obligations under this Agreement. This Agreement has been duly and validly authorized and approved, executed and delivered by the 12RT Shareholders. Assuming this Agreement has been duly and validly authorized, executed and delivered by the parties thereto other than such 12RT Shareholders, this Agreement is duly authorized, executed and delivered by the 12RT Shareholders and constitutes the legal, valid and binding obligations of the 12RT Shareholders, enforceable against the 12RT Shareholders in accordance with their respective terms, except as such enforcement is limited by general equitable principles, or by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors rights generally.

 

	 
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Section 4.2 No Conflict. Neither the execution or delivery by the 12RT Shareholders of this Agreement to which the 12RT Shareholders are a party nor the consummation or performance by the 12RT Shareholders of the transactions contemplated hereby or thereby will, directly or indirectly, (a) contravene, conflict with, or result in a violation of any provision of the organizational documents of the 12RT Shareholders; (b) contravene, conflict with, constitute a default (or an event or condition which, with notice or lapse of time or both, would constitute a default) under, or result in the termination or acceleration of, any agreement or instrument to which any of the 12RT Shareholders are a party or by which the properties or assets of the 12RT Shareholders is bound; or (c) contravene, conflict with, or result in a violation of, any law or order to which any of the 12RT Shareholders, or any of the properties or assets of the 12RT Shareholders, may be subject.

 

Section 4.3 Litigation. There is no pending Action against the 12RT Shareholders that involves the 12RT Shares or that challenges, or may have the effect of preventing, delaying or making illegal, or otherwise interfering with, any of the transactions contemplated by this Agreement or the business of 12RT and, to the knowledge of the 12RT Shareholders, no such Action has been threatened, and no event or circumstance exists that is reasonably likely to give rise to or serve as a basis for the commencement of any such Action.

 

Section 4.4 Ownership of Shares. The 12RT Shareholders are the record and beneficial owners of the 12RT Shares. The 12RT Shareholder are not the record or beneficial owners of any other shares of 12RT. The 12RT Shareholders have and shall transfer at the Closing, good and marketable title to the 12RT Shares, free and clear of all liens, claims, charges, encumbrances, pledges, mortgages, security interests, options, rights to acquire, proxies, voting trusts or similar agreements, restrictions on transfer or adverse claims of any nature whatsoever, excepting only restrictions on future transfers imposed by applicable law.

 

Section 4.5 Pre-emptive Rights. The 12RT Shareholders have no pre-emptive rights or any other rights to acquire any shares of 12RT that have not been waived or exercised.

 

ARTICLE V

 

CONDITIONS TO THE OBLIGATIONS OF 12RT AND THE 12RT SHAREHOLDERS

 

The obligations of 12RT to consummate the transactions contemplated by this Agreement are subject to the fulfillment, at or before the Closing Date, of the following conditions, any one or more of which may be waived by 12RT or the 12RT Shareholders, as the case may be, in their sole discretion:

 

Section 5.1 Representations and Warranties of DVGG. All representations and warranties made by DVGG in this Agreement shall be true and correct in all material respects on and as of the Closing Date.

 

Section 5.2 Agreements and Covenants. DVGG shall have performed and complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with on or prior to the Closing Date.

 

Section 5.3 Consents and Approvals. All consents, waivers, authorizations and approvals of any governmental or regulatory authority, domestic or foreign, and of any other person, firm or corporation, required in connection with the execution, delivery and performance of this Agreement shall be in full force and effect on the Closing Date.

 

Section 5.4 No Violation of Orders. No preliminary or permanent injunction or other order issued by any court or governmental or regulatory authority, domestic or foreign, nor any statute, rule, regulation, decree or executive order promulgated or enacted by any government or governmental or regulatory authority, which declares this Agreement invalid in any respect or prevents the consummation of the transactions contemplated hereby, or which materially and adversely affects the assets, properties, operations, prospects, net income or financial condition of DVGG shall be in effect; and no action or proceeding before any court or governmental or regulatory authority, domestic or foreign, shall have been instituted or threatened by any government or governmental or regulatory authority, domestic or foreign, or by any other person or entity, which seeks to prevent or delay the consummation of the transactions contemplated by this Agreement or which challenges the validity or enforceability of this Agreement.

 

	 
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Section 5.5 Obligations Prior to Closing. DVGG must have caused the following to occur prior to Closing: 

 

A. DVGG shall have filed with the Financial Industry Regulatory Authority (“FINRA”) such paperwork as necessary to complete a Six-for-One (6:1) forward split (the “Forward Split”) of the DVGG common stock; 

 

B. DVGG shall: (i) increase its authorized shares Common Stock from the present amount of 100,000,000 to 500,000,000; and, (ii) decrease its authorized shares of undesignated Preferred Stock from the present amount of 100,000,000 to 50,000,000, DVGG shall effectuate this by filing Amended Articles of Incorporation with the Secretary of State of Nevada; 

 

C. DVGG shall have effectuated a name change to better reflect the post-transaction business of the Company, DVGG shall effectuate this by filing Amended Articles of Incorporation with the Secretary of State of Nevada; 

 

D. DVGG shall, at Closing, have caused the cancellation of 19,800,000 shares of pre-split common stock, which shall be canceled and returned authorized but unissued status; and, 

 

E. DVGG shall deliver the following documents to 12RT: (i) share certificates evidencing the DVGG Shares registered in the name of the 12RT Shareholder;(ii) this Agreement duly executed; (iii) such other documents as 12RT or the 12RT Shareholder may reasonably request for the purpose of evidencing the accuracy of any of the representations and warranties of DVGG, evidencing the performance of, or compliance by DVGG with any covenant or obligation required to be performed or complied with by DVGG, evidencing the satisfaction of any condition referred to in this Article V, or otherwise facilitating the consummation or performance of any of the transactions contemplated by this Agreement. 

 

Section 5.6 No Material Adverse Effect. There shall not have been any event, occurrence or development that has resulted in or could result in a Material Adverse Effect on or with respect to DVGG.

 

Section 5.7 Employment Agreements. DVGG will have received from 12RT copies of all agreements or arrangements that evidence the employment of all of the hourly and salaried employees of 12RT as set forth on Schedule 5.7 attached hereto, which constitute all of the employees reasonably necessary to operate the business of 12RT substantially as presently operated.

 

ARTICLE VI

 

CONDITIONS TO THE OBLIGATIONS OF DVGG

 

The obligations of DVGG to consummate the transactions contemplated by this Agreement are subject to the fulfillment, at or before the Closing Date, of the following conditions, any one or more of which may be waived by DVGG in its sole discretion:

 

Section 6.1 Representations and Warranties of 12RT and the 12RT Shareholder. All representations and warranties made by 12RT and the 12RT Shareholder on behalf of themselves individually in this Agreement shall be true and correct on and as of the Closing Date.

 

Section 6.2 Approval by Majority Consent. The holders of at least a majority (51%) of the outstanding shares of common stock of 12RT must approve this Agreement by written consent prior to the Closing Date. 

 

Section 6.3 Agreements and Covenants. 12RT and the 12RT Shareholder shall have performed and complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with by each of them on or prior to the Closing Date.

 

Section 6.4 Consents and Approvals. All consents, waivers, authorizations and approvals of any governmental or regulatory authority, domestic or foreign, and of any other person, firm or corporation, required in connection with the execution, delivery and performance of this Agreement, shall have been duly obtained and shall be in full force and effect on the Closing Date.

 

	 
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Section 6.5 No Violation of Orders. No preliminary or permanent injunction or other order issued by any court or other governmental or regulatory authority, domestic or foreign, nor any statute, rule, regulation, decree or executive order promulgated or enacted by any government or governmental or regulatory authority, domestic or foreign, that declares this Agreement invalid or unenforceable in any respect or which prevents the consummation of the transactions contemplated hereby, or which materially and adversely affects the assets, properties, operations, prospects, net income or financial condition of 12RT shall be in effect; and no action or proceeding before any court or government or regulatory authority, domestic or foreign, shall have been instituted or threatened by any government or governmental or regulatory authority, domestic or foreign, or by any other person or entity, which seeks to prevent or delay the consummation of the transactions contemplated by this Agreement or which challenges the validity or enforceability of this Agreement.

 

Section 6.6 Documents. 12RT and the 12RT Shareholder must deliver to DVGG at the Closing:

 

A. 12RT shall have prepared and presented to DVGG two years of audited financial statements, such statements shall have been audited by a Public Company Accounting Oversight Board registered and approved audit firm; 

 

B. share certificates evidencing the number of 12RT Shares, along with executed share transfer forms transferring such 12RT Shares to DVGG;

 

C. this Agreement to which the 12RT and the 12RT Shareholder are each a party, duly executed; and

 

D. such other documents as DVGG may reasonably request for the purpose of (i) evidencing the accuracy of any of the representations and warranties of 12RT and the 12RT Shareholder, (ii) evidencing the performance of, or compliance by 12RT and the 12RT Shareholder with, any covenant or obligation required to be performed or complied with by 12RT and the 12RT Shareholder, as the case may be, (iii) evidencing the satisfaction of any condition referred to in this Article VI, or (iv) otherwise facilitating the consummation or performance of any of the transactions contemplated by this Agreement.

 

Section 6.7 No Claim Regarding Stock Ownership or Consideration. There must not have been made or threatened by any person, any claim asserting that such person (a) is the holder of, or has the right to acquire or to obtain beneficial ownership of the 12RT Shares, or any other stock, voting, equity, or ownership interest in, 12RT, or (b) is entitled to all or any portion of the DVGG Shares.

 

ARTICLE VII

 

SURVIVAL AND INDEMNIFICATION

 

Section 7.1 Survival of Provisions. The respective representations, warranties, covenants and agreements of each of the parties to this Agreement (except covenants and agreements which are expressly required to be performed and are performed in full on or before the Closing Date) shall expire on the first day of the three-year anniversary of the Closing Date (the “Survival Period”). The right to indemnification, payment of damages or other remedy based on such representations, warranties, covenants, and obligations will not be affected by any investigation conducted with respect to, or any knowledge acquired (or capable of being acquired) at any time, whether before or after the execution and delivery of this Agreement, with respect to the accuracy or inaccuracy of or compliance with, any such representation, warranty, covenant, or obligation. The waiver of any condition based on the accuracy of any representation or warranty, or on the performance of or compliance with any covenant or obligation, will not affect the right to indemnification, payment of damages, or other remedy based on such representations, warranties, covenants, and obligations.

 

	 
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Section 7.2 Indemnification.

 

A. Indemnification Obligations in favor of DVGG. From and after the Closing Date until the expiration of the Survival Period, 12RT shall reimburse and hold harmless DVGG and its shareholders (such person and their heirs, executors, administrators, agents, successors and assigns is referred to herein as a “DVGG Indemnified Party”) against and in respect of any and all damages, losses, settlement payments, in respect of deficiencies, liabilities, costs, expenses and claims suffered, sustained, incurred or required to be paid by such DVGG Indemnified Party, and any and all actions, suits, claims, or legal, administrative, arbitration, governmental or other procedures or investigation against any DVGG Indemnified Party, which arises or results from a third-party claim brought against a DVGG Indemnified Party to the extent based on a breach of the representations and warranties with respect to the business, operations or assets of 12RT. All claims of DVGG pursuant to this Section 7.2 shall be brought by DVGG on behalf of DVGG and those Persons who were stockholders of DVGG immediately prior to the Closing Date. In no event shall any such indemnification payments exceed $50,000 in the aggregate from 12RT. No claim for indemnification may be brought under this Section 7.2(A) unless all claims for indemnification, in the aggregate, total more than $10,000.

 

B. Indemnification Obligations in favor of 12RT and the 12RT Shareholder. From and after the Closing Date until the expiration of the Survival Period, DVGG and the DVGG shareholders shall indemnify and hold harmless 12RT, the 12RT Shareholder, and his respective officers, directors, agents, attorneys and employees, and each person, if any, who controls or may “control” (within the meaning of the Securities Act) any of the forgoing persons or entities (each a “12RT Indemnified Person”) from and against any and all losses, costs, damages, liabilities and expenses arising from claims, demands, actions, causes of action, including, without limitation, legal fees (collectively, “Damages”) arising out of: (i) any breach of representation or warranty made by DVGG in this Agreement and in any certificate delivered by DVGG pursuant to this Agreement; (ii) any breach by DVGG of any covenant, obligation or other agreement made by DVGG in this Agreement; and (iii) a third-party claim based on any acts or omissions by DVGG. In no event shall any such indemnification payments exceed $50,000 in the aggregate from DVGG. No claim for indemnification may be brought under this Section 7.2(B) unless all claims for indemnification, in the aggregate, total more than $10,000.

 

ARTICLE VIII

 

MISCELLANEOUS PROVISIONS

 

Section 8.1 Successors and Assigns. This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors and assigns; provided that no party shall assign or delegate any of the obligations created under this Agreement without the prior written consent of the other parties.

 

Section 8.2 Fees and Expenses. Except as otherwise expressly provided in this Agreement, all legal and other fees, costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by each Party, as incurred respectively.

 

Section 8.3 Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been given or made if in writing and delivered personally or 7 days after being sent by registered or certified mail (postage prepaid, return receipt requested) to the parties at the addresses set forth in the Preamble of this Agreement, or to such other persons or at such other addresses as shall be furnished by any party by like notice to the others, and such notice or communication shall be deemed to have been given or made as of the date so delivered or mailed. No change in any of such addresses shall be effective insofar as notices under this Section 8.3 are concerned unless notice of such change shall have been given to such other party hereto as provided in this Section 8.3.

 

Section 8.4 Entire Agreement. This Agreement, together with the exhibits hereto, represents the entire agreement and understanding of the parties with reference to the transactions set forth herein and no representations or warranties have been made in connection with this Agreement other than those expressly set forth herein or in the exhibits, certificates and other documents delivered in accordance herewith. This Agreement supersedes all prior negotiations, discussions, correspondence, communications, understandings and agreements between the parties relating to the subject matter of this Agreement and all prior drafts of this Agreement, all of which are merged into this Agreement. No prior drafts of this Agreement and no words or phrases from any such prior drafts shall be admissible into evidence in any action or suit involving this Agreement.

 

	 
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Section 8.5 Severability. This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible so as to be valid and enforceable.

 

Section 8.6 Titles and Headings. The Article and Section headings contained in this Agreement are solely for convenience of reference and shall not affect the meaning or interpretation of this Agreement or of any term or provision hereof.

 

Section 8.7 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall be considered one and the same agreement. Fax and PDF copies shall be considered originals for all purposes.

 

Section 8.8 Convenience of Forum; Consent to Jurisdiction. The parties to this Agreement, acting for themselves and for their respective successors and assigns, without regard to domicile, citizenship or residence, hereby expressly and irrevocably elect as the sole judicial forum for the adjudication of any matters arising under or in connection with this Agreement, and consent and subject themselves to the jurisdiction of, the courts of the State of Nevada, and/or the U.S. District Court for Nevada, in respect of any matter arising under this Agreement. Service of process, notices and demands of such courts may be made upon any party to this Agreement by personal service at any place where it may be found or giving notice to such party as provided in Section 8.3.

 

Section 8.9 Enforcement of the Agreement. The parties hereto agree that irreparable damage would occur if any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereto, this being in addition to any other remedy to which they are entitled at law or in equity.

 

Section 8.10 Governing Law. This Agreement shall be governed by and interpreted and enforced in accordance with the laws of the State of Nevada without giving effect to the choice of law provisions thereof.

 

Section 8.11 Amendments and Waivers. Except as otherwise provided herein, no amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by all of the parties hereto. No waiver by any party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any such prior or subsequent occurrence.

 

[SIGNATURE PAGE FOLLOWS]

 

	 
	12
	

 
	 

 

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

 

	DEVAGO, INC. 	
	 	 	 
	Per:	/s/ Jose Armando Acosta Crespo	
	
Name: 
	Jose Armando Acosta Crespo	 
	Title:	President and Chief Executive Officer	 
	 	 	 
	
12 HONG KONG LIMITED
	
 

	
 
	
 
	
 

	
Per:
	
/s/ Angelo Ponzetta
	
 

	
Name:
	
Angelo Ponzetta
	
 

	
Title:
	
President and Chief Executive Officer
	
 

	
 
	
 
	
 

	
12 HONG KONG LIMITEDSHAREHOLDERS
	
 

	
 
	
 
	
 

	
Per:
	
/s/ Angelo Ponzetta
	
 

	
Name: 
	
Angelo Ponzetta, on behalf of the 
	
 

	
 
	
Shareholders representing 100% of the
	
 

	
 
	
issued and outstanding shares of 
	
 

	
 
	
12 Hong Kong Limited
	
 

 

	 
	13
	

 
	 

 

DISCLOSURE SCHEDULE

to the

SHARE EXCHANGE AGREEMENT 

By and Among

 

DEVAGO, INC., 

 

12 HONG KONG LIMITED, 

 

AND 

 

THE SHAREHOLDERS OF 12 HONG KONG LIMITED

 

These Disclosure Schedules have been prepared pursuant to the Share Exchange Agreement (the “Agreement”) by and among DEVAGO, INC., a Nevada corporation (“DVGG”), 12 Hong Kong Limited (“12RT”), and the individual shareholders of 12RT. Except as otherwise defined herein, capitalized terms used herein will have the same meaning given to them in the Share Exchange Agreement. Schedule and paragraph numbers herein correspond to the Section and Subsection numbering in applicable Article of the Share Exchange Agreement. Section and Subsection headings contained herein are included for purposes of identifying the relevant disclosures and for the convenience of the reader and are not intended to supplement or modify the meaning of the disclosures in any way.

 

	 
	14
	

 
	 

 

SCHEDULE 3.4

 

DIRECTORS AND OFFICERS OF 12 HONG KONG LIMITED

 

	
Angelo Ponzetta: 
	
Chief Executive Officer

	
Daniele Monteverde: 
	
Chief Financial Officer 

 

	 
	15
	

 
	 

 

SCHEDULE 3.8

 

INTELLECTUAL PROPERTY

 

		
Country:
	
Application #:
	
Description:
	
Filing Date:

	
1.
	
U.S.A.
	
20150161712
	
Unifying Shopping Experience System
	
December 23, 2013

	
2.
	
China
	
201410418985.X
	
Unifying Shopping Experience System
	
August 22, 2014

	
3.
	
E.U.
	
P2104-1526
	
Unifying Shopping Experience System
	
December 10, 2013

 

	 
	16
	

 
	 

 

SCHEDULE 3.9

 

MATERIAL CONTRACTS

 

		
With:
	
Dated:
	
Material Terms/Description:

	
1.
	
Licensee Agreement with 12 Japan 
	
Mar 2015
	
10 Years contract for the use of our Patent, and technology developments.

	
2.
	
NDA with Norbert Frei Consulting in Switzerland
	
Mar 2017
	
NDS for the preparation of a distribution Agreement. IMirror delivered and installed.

 

All other contracts are through 12 Japan, which will pay royalties and licensee fees to 12 Hong Kong.

 

	 
	17
	

 
	 

 

SCHEDULE 3.10

 

SUBSIDIARIES OF 12RT

 

None. 

 

	 
	18
	

 
	 

 

SCHEDULE 5.7

 

12RTEMPLOYMENT AGREEMENTS AND ARRANGEMENTS

 

As of the date of this Agreement, the following hourly and salaried employees of 12RT are reasonably necessary to operate the business of 12RTas substantially presently operated:

 

		
Name of Party
	
Date of Agreement 

	
1.
	
Mamoru Wakimoto
	
July 2016

	
2.
	
Shohei Murata
	
July 2016

 

 

	19

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