Document:

ARCHT EX. 10 - 15

REAL ESTATE LIEN NOTE 
WITH BALLOON PAYMENT
$2,250,000.00                Texarkana, Texas                   June 21, 2011
FOR VALUE RECEIVED, ARHC SCTXRTX001, LLC, a Delaware limited liability company (“Borrower”), promises to pay to the order of GUARANTY BOND BANK, a state bank organized under the laws of the State of Texas (the “Lender”), at 2202 St. Michael Drive, Texarkana, Texas 75503, the principal sum of Two Million Two Hundred Fifty Thousand and No/100 Dollars ($2,250,000.00), with interest on the principal balance from time to time remaining unpaid until this Note shall have been paid in full at the rate hereinafter provided.
Payment Terms.  The principal and accrued interest shall be payable as follows:
Principal and interest on this Note shall be due and payable in 59 monthly installments of $13,816.97 or more each, with the 60th and final monthly installment for the remaining balance.  The monthly installments of principal and interest set forth herein are calculated at the interest rate stated below based upon an amortization of 300 months.  The first of said monthly installments will be due and payable on or before the 21st day of July, 2011, and one installment to become due and payable on or before the 21st day of each succeeding month thereafter until June 21, 2016, when said remaining principal sum, together with accrued interest, shall be paid in full; interest being calculated on the unpaid principal to the date of each installment paid and the payment credited first to the discharge of the interest accrued and the balance to the reduction of the principal.
UPON THE MATURITY DATE SET FORTH ABOVE, THE BORROWER WILL BE REQUIRED TO MAKE A BALLOON PAYMENT, WHICH IS A FINAL PAYMENT OF ALL SUMS DUE UNDER THIS NOTE.
The principal of this Note may be prepaid from time to time and at any time, in whole or in part, without premium or penalty.  No such partial prepayment shall affect the due date of the next installment of interest due herein after the appropriate allocation and reduction resulting from such partial prepayment.
Advancement of Funds.  This Note, to the extent of the amount of $2,250,000.00, is given in part payment of the purchase price of the real property described herein, and said Note is additionally secured by a Vendor's Lien on said property, which is expressly retained in a Deed of even date herewith, executed by Westminister Texarkana, L.P., an Illinois limited partnership, to ARHC SCTXRTX001, LLC, a Delaware limited liability company.
LENDER'S OPTION TO RENEW.  BORROWER EXPRESSLY ACKNOWLEDGES BY EXECUTING THIS NOTE THAT THERE IS NO EXPRESSED OR IMPLIED AGREEMENT THAT THIS NOTE WILL BE RENEWED BY LENDER UPON MATURITY.  LENDER OR ANY SUBSEQUENT HOLDER OF THIS NOTE IS UNDER NO OBLIGATION TO RENEW THIS NOTE AT MATURITY.  ANY AGREEMENT TO RENEW BY LENDER OR ANY SUBSEQUENT HOLDER OF THIS NOTE MUST BE IN WRITING AND SIGNED BY THE LENDER OR SUBSEQUENT 

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HOLDER OF THIS NOTE IN ORDER TO BE BINDING ON THE LENDER OR ANY SUBSEQUENT HOLDER OF THIS NOTE.  IN THE EVENT OF RENEWAL, BORROWER DOES AGREE TO PAY ALL COSTS OF CLOSING, INCLUDING WITHOUT LIMITATION, COST OF APPRAISALS.  TITLE POLICIES OR CERTIFICATES, AND ANY OTHER COSTS INCURRED BY LENDER DEEMED NECESSARY AND REASONABLE TO CONSUMMATE THE RENEWAL.
Interest Rate.  Interest shall accrue on the unpaid principal from date of funding until maturity at the rate of five and one-half percent (5.500%) per annum.
Late Charge.  Where permitted by applicable law, from the effective date of this Note, if Lender has not received the full monthly installment required by this Note as described above, by the end of 10 calendar days after the installment is due, the Borrower will pay a late charge to Lender, or any holder of this Note.  The amount of the late charge will be five percent (5.00%) of the overdue payment of principal and interest.  This late charge will be paid promptly but only once on each late installment.  In the event a late charge is assessed on any monthly installment, Lender will not be entitled to default interest on the monthly installment during the same period in which the late charge is assessed.  Any late charge shall be spread over the term of said Note and shall not otherwise exceed the maximum rate of interest permissible by law.
Default Interest.  All past due principal and, if permitted by applicable law, all past due interest, shall bear interest at the maximum legal rate permitted by applicable law.  During the existence of any default hereunder or under any instrument securing or evidencing the loan evidenced hereby, the entire unpaid balance of principal shall bear interest at the highest rate permitted by applicable law.  Interest on past due installments and default interest provided for in this paragraph shall be calculated at the daily rate equal to 1/365ths (1/366ths during leap years) of the applicable annual percentage rate.
Default.  It shall be an Event of Default under the provisions of this Note if the Borrower:
a.defaults in the prompt payment of principal and interest as and when due, and continuation of such default for ten days, or in the prompt payment when due of any other indebtedness, liabilities or obligations to Lender;
b.shall fail to comply with any of the Borrower's other covenants or obligations contained herein or shall default in the prompt performance of any covenant or obligation under any other instrument or document securing the indebtedness described herein or any portion thereof and the continuance of such failure or default for a period of 30 days after there has been given a written notice by Lender to Borrower specifying such failure and requiring it to be remedied;
c.any party liable for the payment of this Note, whether as maker, endorser, guarantor, surety or otherwise, endures termination, liquidation or dissolution, or death if an individual, as the case may be; notwithstanding the terms hereof, the death of a guarantor of this Note shall not be an event of default if the Borrower, within 90 days after the death of said guarantor, substitutes a new guarantor having a net worth substantially equal to the net worth of said deceased guarantor and if said substituted guarantor signs all instruments and furnishes all information required by Lender in order to satisfy Lender as to the financial condition and credit standing of said substituted guarantor and in order to bind said substituted guarantor to all obligations of said deceased guarantor to Lender;
d.sells, conveys, assigns, mortgages, subleases, pledges or encumbers the property or any part thereof without the proper expressed written approval of Lender;
e.fails to timely provide Lender, if Lender so requests, any financial records or information, including without limitation, a profit and loss statement regarding operation of the property;
f.defaults in the payment of any other indebtedness due the holder hereof or a default in the performance of any other obligation to the holder hereof by the Borrower or any other party liable for the payment thereof, whether as endorser, guarantor, surety or otherwise; 

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g.shall become insolvent, shall make an assignment for the benefit of their creditors, shall file a petition for voluntary bankruptcy, shall have a receiver appointed for any of their assets, shall file any answer or responsive pleading admitting insolvency or inability to pay any of their indebtedness, or fail to obtain a vacation or stay of any involuntary proceedings in insolvency or bankruptcy against it or them within 30 days from the date initiated; or if all or any part of their property shall be taken by execution levy or any other involuntary proceeding, or any court shall have taken jurisdiction of the property of the Borrower or the major part thereof for reorganization, dissolution, liquidation or winding up of their affairs, and such trustee or receiver shall not be discharged or such jurisdiction relinquished or vacated all within 30 days, or the Borrower shall admit in writing their inability to pay its or their debts generally as they become due;
h.fails to pay when due any subcontractors, suppliers or materialmen regarding construction of the improvements contemplated herein, unless such failure to pay said sums is based upon a legitimate dispute which is resolved within 30 days or is contested within 60 days by a commencement of an appropriate action in a court of competent jurisdiction.  In no event will the Borrower permit a lien to be filed against the property without resolution in the manner set forth herein; or
i.if any lien is imposed on the real property as the result of the construction of the improvements and such lien is not released within 30 days of the imposition of such lien.
At the option of the holder of this Note, upon the occurrence of any default, the entire principal balance and all accrued interest shall at once become due and payable, without presentment, demand, protest, or notice of grace.
The failure to exercise the foregoing option upon the happening of one or more of the foregoing defaults shall not constitute a waiver of the right to exercise the same at any subsequent time in respect of the same default or any other default.  The acceptance by a holder of this Note of any payment hereunder which is less than the payment in full of all amounts due and payable at the time of such payment shall not constitute a waiver of the right to exercise the foregoing option at that time or any subsequent time or nullify any prior exercise of such option.
Attorney's Fees.  If this Note is not paid when due, whether at maturity or by acceleration, or if it is collected through a bankruptcy, probate, or other court, whether before or after maturity, the Borrower agrees to pay all costs of collection incurred by the holder hereof, including but not limited to reasonable attorney's fees.
Waiver of Notice and Consent.  The Borrower and all other parties now or hereafter liable for the payment hereof, whether as endorser, guarantor, surety, or otherwise, severally waive demand, presentment, notice of dishonor, notice of intention to accelerate the maturity hereof, notice of acceleration of the maturity hereof, diligence in collecting, grace, notice and protest, and consent to all extensions, renewals or modifications which from time to time may be granted by the holder hereof and to all partial payments hereof, whether before or after maturity.
Legal Interest Limitations.  All agreements between the maker hereof and the holder hereof, whether now existing or hereafter arising and whether written or oral, are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration of the maturity hereof, or otherwise, shall the amount paid, or agreed to be paid to the holder hereof for the use, forbearance, or detention of the money to be loaned hereunder or otherwise or for the payment or performance of any covenant or obligation contained herein or in any other document evidencing, securing, or pertaining to the indebtedness evidenced hereby, exceed the maximum amount permissible under applicable law.  If from any circumstance whatsoever fulfillment of any provision hereof or of such other documents, at the time performance of such provision shall be due, shall involve transcending the limit of validity prescribed by law, then ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity, and if from any such circumstance the holder 

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hereof shall ever receive as interest or otherwise an amount which would exceed the highest lawful rate, such amount which would be excessive interest shall be applied to the reduction of the principal indebtedness of the Borrower to the holder hereof, and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal hereof, such excess shall be refunded to the Borrower.  All sums paid or agreed to be paid by the Borrower for the use, forbearance or detention of the indebtedness of the Borrower to the holder hereof shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full term of such indebtedness until payment in full in such manner that there will be no violation of applicable laws pertaining to the maximum rate or amount of interest which may be contracted for, charged or received with respect to such indebtedness.  The terms and provisions of this paragraph shall control and supersede every other provision of all agreements between the Borrower and the holder hereof.
APPLICABLE LAW.  THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.
Security.  This Note is secured by a Deed of Trust and Assignment of Rents and Leases of even date herewith (“Loan Documents”) in favor of Tyson T. Abston, Trustee, covering Borrower's fee simple estate and all improvements situated on the following described property located in Bowie County, Texas:
A portion of parcel No. 1, Block No. 2 of GALLERIA OAKS NO. 1, a subdivision of a part of the M.E.P. & P. Railway Company Survey, A-428, and the A. J. King Headright Survey, A-331, Bowie County, Texas, according to the plat thereof recorded in Volume 1198, Page 35, Real Property Records, Bowie County, Texas, subject tract being a part of a certain 5.00 acre tract of land conveyed by Southwest Interests, Inc., to Texarkana Surgery Center, Inc., by deed dated October 12, 1993, of record in Volume 2937, Page 186, Real Property Records, Bowie County, Texas, being more particularly described by metes and bounds as follows:
COMMENCING at the most Northerly Northwest corner of said Galleria Oaks No. 1;
THENCE:  S 02◦ 06' 30” E, with the upper line of said Galleria Oaks No. 1, 435.14 feet to a point on the South right-of-way line of Moores Lane and the POINT OF BEGINNING for the herein described tract of land, said point being on the North line of the above referenced 5.00 acre tract;
THENCE:  N 87◦ 53' 30” E, with the South right-of-way line of said Moores Lane, same being the North line of said 5.00 acre tract, 101.80 feet to a 1/2” rebar found for corner at the Northeast corner of said 5.00 acre tract, said point being the Northwest corner of Lot No. 5, Parcel No. 2, Block No. 2 of said Galleria Oaks Subdivision;
THENCE:  S 02◦ 06' 30” E, with the East line of said 5.00 acre tract, same being the West line of said Lot No. 5, 225.20 feet to a 1/2 inch iron pin found for corner at the Southwest corner of said Lot No. 5, said point being the Northwest corner of Lot No. 4;
THENCE:  S 14◦ 18' 00” E, with the East line of said 5.00 acre tract, same being the West line of said Lot No. 4, and a portion of Lot No. 3, 242.49 feet to a 1/2 inch iron pin found for corner at the Southeast corner of said 5.00 acre tract;
THENCE:  S 75◦ 42' 00” W, with the South line of said 5.00 acre tract, 334.50 feet to a 1/2 inch iron pin found for corner at the Southeast corner of a certain 1.660 acre tract of land conveyed by Texarkana Surgery Center, Inc., to Southwest Interest, Inc., by deed dated August 29, 1994, of record in Volume 2219, Page 188, Real Property Records, Bowie County, Texas;
THENCE:  N 14◦ 11' 40” W, with the East line of said 1.660 acre tract, 282.90 feet to a punch 

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mark set for corner in a concrete parking lot at the Northeast corner of said 1.660 acre tract, said point being on the North line of said 5.00 acre tract and being on the South line of an easement and right-of-way, conveyed to the City of Texarkana, of record in Volume 630, Page 725, Deed Records, Bowie County, Texas, said point also being in a curve to the left;
THENCE:  Northeasterly, with the North line of said 5.00 acre tract, same being the South line of said easement and right-of-way, having a radius of 167.50 feet (Radius point bears N 34◦ 34' 45” W) through a central angle of 30◦ 25' 11” for a distance of 88.93 feet to a 1/2 inch iron pin found for corner at the end of said curve;
THENCE:  N 25◦ 00' 00” E, continuing with the North line of said 5.000 acre tract, same being the South and East line of said easement and right-of-way, 214.84 feet to a 1/2 inch iron pin found for corner at the Northwest corner of said 5.00 acre tract, said point being on the South right-of-way line of said Moores Lane;
THENCE:  N 87◦ 53' 30” E, with the North line of said 5.00 acre tract, same being South right-of-way line of said Moores Lane, 76.11 feet to the PLACE OF BEGINNING and containing 3.340 acres of land, more or less.
TOGETHER with a 50.00 foot wide access easement for the purpose of ingress and egress across the North portion of the above referenced 1.660 acre tract, being more particularly described by metes and bounds as follows:
BEGINNING at a 1/2 inch iron pin found for corner at the lower Northwest corner of subject 3.340 acre tract, same being the Northeast corner of said 1.660 acre tract, said point being on the South line of the above referenced easement and right-of-way, said point being in a curve to the right;
THENCE:  Southwesterly, with the North line of said 1.660 acre tract, same being the South line of said easement and right-of-way and being along the arc of a curve having a radius of 167.50 feet (radius point bears N 34◦ 34' 45” W), through a central angle of 20◦ 16' 49” for a distance of 59.28 feet to a point at the end of said curve;
THENCE:  S 75◦ 42' 00” W, with the North line of said 1.660 acre tract, same being the South line of said easement and right-of-way, 206.52 feet to an iron pin found for corner at the Northwest corner of said 1.660 acre tract, said point being on the East line of F. M. Road No. 1397, Summerhill Road;
THENCE:  S 14◦ 11' 40” E, with said right-of-way line, 50.00 feet to a 1/2 inch iron pin found for corner;
THENCE:  N 75◦ 42' 00” E, 264.47 feet to a punch mark found for corner in a concrete parking lot on the East line of said 1.660 acre tract;
THENCE:  N 14◦ 11' 40” W, with the East line of said 1.660 acre tract, 60.38 feet to the PLACE OF BEGINNING and containing 0.308 acre of land, more or less, being the same easement described in the deed from Texarkana Surgery Center, Inc., to Southwest Interest, Inc., recorded in Volume 2219, Page 188, Real Property Records, Bowie County, Texas.
Payment of Insurance.  Notwithstanding anything to the contrary contained herein, “Lender” does require Borrower to provide proof of payment when due of all tax statements and insurance premiums due and owing on the herein described property.  Alternatively, “Lender” may, at its option, require the Borrower to make monthly payments to a fund for taxes and/or insurance premiums on the herein described real property.  Said monthly payments will be made on the payment date specified for principal and interest in 

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this Note and each payment will be 1/12th of the amount that “Lender” estimates will be required annually for payment of taxes and insurance premiums.  The fund will accrue no interest, and “Lender” will hold it without bond in escrow and use it to pay the taxes and insurance premiums.  If the Borrower has complied with the requirements of this paragraph, “Lender” must pay taxes before delinquency.  The Borrower agrees to make additional deposits on demand if the fund is ever insufficient for its purpose.  If an excess accumulates in the fund, “Lender” may either credit it to the next monthly deposits until the excess is exhausted or refund it to Borrower.  “Excess” is defined for this provision as an amount exceeding the monthly payment multiplied by the number of months remaining in the calendar year, plus the monthly payment amount multiplied by two.  Before the Borrower makes the final payment on this Note, “Lender” will credit to that payment the whole amount then in the fund or, at “Lender's” option, refund it after this Note is paid.  If the Deed of Trust securing this Note is foreclosed, any balance in the fund over that needed to pay taxes, including taxes not yet payable, and to pay insurance premiums will be paid pursuant to the Trustee's duties set forth in this Deed of Trust.  If the real property described herein is ever transferred, any balance then in the fund will be still subject to the provisions of this paragraph and will inure to the benefit of the transferee.  Deposits to the fund described in this paragraph are in addition to the monthly payments of principal and interest provided in this Note.
Additional Terms.  Notwithstanding anything to the contrary herein, this is a demand note and Lender may demand payment in full at any time.  Borrower grants Lender a security interest in all property pledged to Lender in this and other agreements of Borrower to secure payment of all amounts now or hereafter owes by Borrower to Lender based on this and other agreements.  Titus County, Texas, shall be the exclusive venue for any litigation between borrower and Lender; Borrower agrees to pay Lender's costs and attorneys fees related to the enforcement or defense of Lender's rights related to any of Borrower's agreements with Lender.
THIS DOCUMENT, TOGETHER WITH OTHER DOCUMENTS EXECUTED SIMULTANEOUSLY HEREWITH, REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
BORROWER:
ARHC SCTXRTX001, LLC, a Delaware limited liability company
By:  American Realty Capital Healthcare Trust Operating Partnership, L.P., a Delaware limited partnership - Sole Member
		
	By:
	American Realty Capital Healthcare Trust, Inc., a Maryland corporation -General Partner

By:        
William M. Kahane, President

6chatching_ex41.htm

EXHIBIT 4.1

 

ChatChing Inc.

Employee/Consultant Benefit Plan

1. Purpose. The purpose of this Employee/Consultant Benefit Plan (the “Plan”) is to provide for compensation for Consultants from ChatChing Inc., a Florida corporation (the “Company”);Consultant who provides certain services in furtherance of the business plan of ChatChing as specified in this Plan and in the Company’s Registration Statement filed on Form S-1 with the Securities and Exchange Commission.

 

2. Points Subject to the Plan. The Points to be offered under the Plan will be issued to Qualified Consultants as defined in Section 6, at times and in amounts as described in Section 7. The total number of Points that may be issued under the Plan is not limited. Validly issued Points will not expire or terminate, except when and to the extent used in an Allocation or as provided in Section 10.

 

3. Compensation Subject to the Plan.

 

Plan Shares.  Subject to adjustment as provided below and in Section 10, and only if and when all conditions of Section 11 of the Plan are satisfied, the shares to be offered under the Plan (the “Plan Shares”) shall consist of common stock of the Company (“Common Stock”), and the total number of Plan Shares that may be issued under the Plan shall be 400,000,000 shares. The Plan Shares shall be issued to Qualified Consultants in exchange for Points, one Plan Share for one Point, in a series of allocation processes (each, an “Allocation”).

 

4. Effective Date and Duration of Plan.

 

4.1 Effective Date. The Plan shall become effective as of _________, 2011. Points may be issued under the Plan at any time after the effective date and before termination of the Plan.

 

4.2 Duration. The Plan shall continue in effect until the earlier of (a) such time as the Plan is terminated by the Board of Directors, or (b) the commencement of the final Allocation as described in Section 9. The Board of Directors may suspend or terminate the Plan at any time except with respect to Points then outstanding under the Plan. Notice of any such suspension or termination will be provided on the Site. Termination shall not affect any outstanding Points issued under the Plan.

 

5. Administration.

 

5.1 Board of Directors. The Plan shall be administered by the Board of Directors of the Company. Subject to the provisions of the Plan, the Board of Directors may adopt and amend rules and regulations relating to administration of the Plan, advance the lapse of any waiting period, waive or modify any condition or restriction applicable to Points (except those restrictions imposed by law) and make all other determinations in the judgment of the Board of Directors necessary or desirable for the administration of the Plan. The interpretation and construction of the provisions of the Plan and related agreements by the Board of Directors shall be final and conclusive. The Board of Directors may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any related agreement in the manner and to the extent it deems expedient to carry the Plan into effect, and the Board of Directors shall be the sole and final judge of such expediency.

 

5.2 Committee. The Board of Directors may delegate to any committee of the Board of Directors (the “Committee”) any or all authority for administration of the Plan.  If authority is delegated to the Committee, all references to the Board of Directors in the Plan shall mean and relate to the Committee, except (i) as otherwise provided by the Board of Directors and (ii) that only the Board of Directors may amend or terminate the Plan as provided in Sections 4.2 and 12.

 

  

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6. Qualified Consultants. A “Qualified Consultant” is a legally competent individual that is a legal resident of a jurisdiction in which the Board of Directors has determined that residents may lawfully be Consultants to the Company and receive the compensation as specified in this Plan, and that has met the other requirements of this Section and such other requirements as are determined by the Board of Directors. A Qualified Consultant must register online with the Site; indicate that he or she desires to become a Consultant; provide all information requested by the Site, including name, age, date of birth, and address; and certify that he or she has received a current copy all information required to be delivered to Consultant, as available through and specified on the Site.  The Consultant must electronically execute the Consulting Agreement as specified on the Site.  All such information provided by Consultant must be true and correct. A Consultant who provides false information or who uses abusive procedures to earn Points, as determined by the Board of Directors, or who takes any action in violation of Section 8 or any other provision of the Plan, will at the option of the Board of Directors cease being a Qualified Consultant and may forfeit Points previously earned.  Abusive procedures include, without limitation, (a) the use of bots or other automated procedures to generate activities to earn Points, and (b) having more than one Consultant profile or using another Consultant’s profile to generate Points.

 

7. Awards of Points. Points will be issued by the Company only to Qualified Consultants, based on the Qualified Consultant’s daily activities on the Site and on certain activities on the Site by themselves or others as specified in the Plan  for no cash payment. The Site will display a Qualified Consultant’s total points on a “Points Counter”. The Points Counter will be updated daily. In the event of any discrepancy between the Points Counter and the Company’s records of a Qualified Consultant’s Points, the Company’s records will control.  Exhibit A shows the number of Points that the Company will issue for services rendered by the Qualified Consultant under the Consulting Agreement and this Plan. Exhibit A may be amended by the Board of Directors from time to time, and will apply to Points issued after any such amendment.

 

8. Nontransferability. Points are nonassignable and nontransferable, either voluntarily or by operation of law, except by will or by the laws of descent and distribution of the state or country of the Qualified Consultant’s domicile at the time of death (a “Permitted Transfer”). Any attempt by a Qualified Consultant to assign, transfer, pledge, hypothecate, mortgage, grant a security interest in, sell, lease, or otherwise dispose of, any Points, other than by a Permitted Transfer, shall be null and void and of no force or effect whatsoever, and may at the election of the Board of Directors result in the forfeiture of such Points. Points are personal and may not be used by anyone other than the Qualified Consultant to whom such Points were issued.

 

  

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9. Allocations of Common Stock. Subject to the conditions of the Plan, and if an when the Company can legally pay compensation under the Consulting Agreement and the Plan under all applicable laws, as determined by the Board of Directors, and if the Consultant elects to be compensated in Plan Shares rather than other forms of compensation available under the Consulting Agreement and the Plan, the Company will conduct 20 or more Allocations of Plan Shares to such Qualified Consultants. In each Allocation, participating Qualified Consultants who satisfy the Vesting Condition as defined below will be entitled to exchange Points for Plan Shares.  Each of the first 20 Allocations will offer 20,000,000 Plan Shares to Qualified Consultants (“Allocation Shares”).

 

9.1 Commencement of Allocations. The initial Allocation will be commenced within 90 days following the time when the number of the Company’s Qualified Consultants first exceeds one million. Allocations after the initial Allocation will be commenced within 90 days following the end of every calendar quarter thereafter, if within such quarter (an “Allocation Quarter”) the total number of Qualified Consultants has increased to at least one million more than the Prior Minimum, until a total of 20 Allocations have been completed. “Prior Minimum” means the minimum number of Qualified Consultants required for the immediately preceding Allocation.

 

9.2 Allocation Process. The first Allocation shall commence with notice from the Company (an “Allocation Notice”) to the first one million Qualified Consultants. Subsequent Allocations shall commence with an Allocation Notice to all Qualified Consultants as of the last day of the Allocation Quarter. Allocation Notices shall be given during the 90 days referred to in Section 9.1, by email or through the Qualified Consultant’s Site login. To be qualified to acquire Plan Shares in an Allocation, each Qualified Consultant will be required to provide and validate certain personal identifying information and to confirm the Qualified Consultant’s intent that his or her Points participate in the Allocation, within the time periods established by the Company and communicated to Qualified Consultants. Qualified Consultants who have provided and verified such information, and been approved by the Company, are referred to as “Validated Consultants.”

 

The number of Allocation Shares each Validated Consultant will be eligible to acquire will be the Validated Consultant’s pro rata portion of the Allocation Shares, based on the ratio of the number of the Qualifying Consultant’s Points to the aggregate number of Points of all Qualified Consultants participating in that Allocation. No cash payment will be required for Offered Shares issued to Validated Consultants, other than a reasonable fulfillment fee as determined by the Board of Directors. No Validated Consultant shall have any rights as a shareholder, by virtue of any Allocation, until the date, if any, that such Validated Consultant becomes the holder of record of those shares. Points held by Qualified Consultants eligible to participate in an Allocation who fail or elect not to become a Validated Consultant will be cancelled.

 

  

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9.3 No Fractional Shares. No fractional shares shall be issued in connection with any Allocation, and any fractional shares that would otherwise result from any Allocation may be disregarded or provided for in any manner determined by the Board of Directors. Any such determination by the Board of Directors shall be conclusive. Points otherwise exchangeable for such fractional shares will be retained by the Qualified Consultant.

 

9.4 Vesting Condition. In each Allocation, a Validated Consultant’s award of Allocation Shares will be contingent on a vesting requirement that in the 12 months beginning with the Company’s Allocation Notice (“Vesting Period”) the Validated Consultant earn additional Points equal to or greater in number than the number of the Validated Consultant’s Points participating in that Allocation (“Vesting Condition”).

 

(a) Shares will be issued within 90 days after the end of the Vesting Period to Validated Consultants who satisfied the Vesting Condition. If a Validated Consultant does not satisfy the Vesting Condition, no Plan Shares will be issued in that Allocation to that Validated Consultant, and the Validated Consultant’s Points that participated in that Allocation will be cancelled.  Plan Shares not issued to any Validated Consultant because the Vesting Condition was not satisfied (“Unvested Shares”) will not be issued in that Allocation.

 

(b) Any change made to Exhibit A during the Vesting Period of an Allocation, pursuant to Section 7, which will reduce the number of Points earned for one or more activities, will not be applicable during such Vesting Period to Qualified Consultants participating in such Allocation.

 

9.5 Unvested Shares. In the event that there are Unvested Shares after the first 20 Allocations, one or more additional Allocations will be conducted under the above provisions of this Section 9, for not more than 20,000,000 Plan Shares per Allocation and until all Unvested Shares shall have been issued.  If after any of such Allocations there remain less than 1,000,000 Unvested Shares, then no further Allocations shall be conducted.

 

10. Changes in Capital Structure.

 

10.1 Stock Splits, Stock Dividends. If the outstanding Common Stock of the Company is hereafter increased or decreased or changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of any stock split, combination of shares, dividend payable in shares, recapitalization or reclassification, appropriate adjustment shall be made by the Board of Directors in the number of unissued Plan Shares and in the number of Allocation Shares. Notwithstanding the foregoing, the Board of Directors shall have no obligation to effect any adjustment that would or might result in the issuance of fractional shares, and any fractional shares resulting from any adjustment may be disregarded or provided for in any manner determined by the Board of Directors. Any such adjustments made by the Board of Directors shall be conclusive.

 

10.2 Mergers, Reorganizations, Etc. In the event of a merger, consolidation, plan of exchange, acquisition of property or stock, split-up, split-off, spin-off, reorganization or liquidation to which the Company is a party or any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Company (each, a “Transaction”), the Board of Directors shall, in its sole discretion and to the extent possible under the structure of the Transaction, select one or more of the following alternatives for treating the Plan and outstanding Points under the Plan:

 

  

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(a) Some or all outstanding Points shall remain in effect in accordance with their terms.

 

(b) Some or all outstanding Points shall be converted into Points to acquire stock in one or more of the corporations, including the Company, that are the surviving or acquiring corporations in the Transaction. The number and type of securities subject thereto shall be determined by the Board of Directors of the Company, taking into account the relative values of the companies involved in the Transaction and the exchange rate, if any, used in determining shares of the surviving corporation(s) to be held by holders of shares of the Company following the Transaction.

 

(c) The Plan shall continue, provided that Points issued after the closing of the Transaction will be exchangeable, pursuant to the Plan, for stock in one or more of the corporations, including the Company, that are the surviving or acquiring corporations in the Transaction. The number and type of securities subject thereto shall be determined by the Board of Directors of the Company, taking into account the relative values of the companies involved in the Transaction and the exchange rate, if any, used in determining shares of the surviving corporation(s) to be held by holders of shares of the Company following the Transaction.

 

(d) The Plan shall be terminated and all outstanding Points cancelled.

 

10.3 Dissolution of the Company. In the event of the dissolution of the Company, Points shall be treated in accordance with Section 10.2(d).

 

10.4 Additional Shares. The Company is not restricted by this Plan in any way from issuing additional shares of its Common Stock or any other equity or debt securities.

 

11. Conditions to Issuance of Shares. Plan Shares shall not be issued under the Plan unless such issuance shall comply with all relevant provisions of law, including, without limitation, any applicable state securities laws, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, applicable laws of foreign countries and other jurisdictions and the requirements of any quotation service or stock exchange on which the shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. The inability of the Company to obtain, from any regulatory body having jurisdiction, the authority deemed by the Company’s counsel to be necessary for the lawful issuance and sale of any Plan Shares hereunder or the unavailability of registration or an exemption from registration for the issuance and sale of any Plan Shares hereunder shall relieve the Company of any obligation hereunder and any liability for the failure to issue or sell any such Plan Shares.

 

12. Amendment of the Plan. The Board of Directors may at any time modify or amend the Plan in any respect, and will give reasonable notice of any such modification or amendment to Qualified Consultants through the Site. The Plan may only be modified in writing.

 

  

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13. Rights as a Shareholder. The recipient of any Points under the Plan shall have no rights as a shareholder, by virtue of such Points, with respect to any shares of Common Stock until the date, if any, that such recipient becomes the holder of record of those shares.

 

14. Governing Law. The Plan shall be governed by and construed in accordance with the internal laws of the State of Florida without giving effect to any choice or conflict of law provision or rule (whether of the State of Florida or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Florida.

 

15. Entire Plan. The Plan, including any exhibits hereto, constitutes the complete and entire plan and commitment of the Company with respect to the subject matter hereof and supersedes all prior agreements, understandings and commitments of the Company, both written and oral, with respect to its subject matter.

 

The Plan was adopted by the Board of Directors on _____________, 2011.

  

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EXHIBIT A The compensation, will be Points which can be converted into Shares of Common Stock.

 

The compensation will be based upon Points awarded under the Plan and certain other conditions set forth in the Plan.  We will award Points to Consultants who elect to participate in the Points program for the following types of services:

 

	
Business Development or Promotional Service

	 	
Points Awarded

	 	
Frequency Limit

	  	  	 	 	 	  
	
Post invite Link to Major Social Network Site

	 	 	 	  
	  	
Post an Invite to recognized Social Networking site

	 	100	 	
Once per Site per Month

	  	  	 	 	 	  
	  	
Post a link on other web site acceptable to ChatChing.com.  We reserve the right to disqualify sites with limited user traffic and for other reasons.

	 	10	 	
Ten per Month

	  	  	 	 	 	  
	
Email Invites

	 	1	 	
Once Per Email Address

	  	  	 	 	 	  
	
Accepted Identified/Company Invited Users Provides Basic Profile Data

	 	100	 	
No Limit

	  	  	 	 	 	  
	
Points Awarded for Identified/Company Invited User Activity

	 	 	 	  
	  	
Complete Profile All Basic Data

	 	100	 	  
	  	
100% complete profile

	 	100	 	  
	  	
Upload Photo

	 	5	 	
5 Per Day

	  	
Update Status

	 	1	 	
3 Times a Day

	  	
Post a Comment to Wall, Status, Blog, Photo, Album, Forum

	 	2	 	
Once Per Profile Page

	  	
Tag a Photo

	 	3	 	
Once Per Photo

	  	
Add Friend

	 	5	 	
25 per month

	  	
Establish Special Friend Relationship

	 	25	 	
10 Lifetime

	  	
Send Message

	 	1	 	
5 Per Day / One Per Profile Contacted

	  	  	 	 	 	  
	
Points Earned from Identified/Company Invited Users' Activity on your content

	 	 	 	  
	  	
View to Users' profile

	 	2	 	
5 Per Day - Once per profile

	  	
Receive a comment to Wall or Post

	 	2	 	
5 Per Day - Once per profile

	  	
Posted comment  to one of your posts

	 	2	 	
5 Per Day - Once per profile

	  	
Receive Message

	 	1	 	
5 Per Day - Once per profile

	  	
Views and Users Photoalbum

	 	2	 	
5 Per Day - Once per profile

 

 Points from Activities by Referred Users. A Referred User is any new User that directly or indirectly becomes a user of the Site by being identified by a Consultant and then invited to become a user by the Company in accordance with the procedure set forth in the Company’s registration statement as filed with the SEC. There is no obligation of any Referred User to become a Consultant, and a Consultant will receive no additional Points, Shares, compensation or other benefit if any Referred User becomes a Consultant, whether initially or at any subsequent time.  However, the Points set forth below will be awarded if a qualified Referred User A, B, C, D or E as set forth in the table below refers another person who becomes only a Referred User by being identified for invitation by the Company by such qualified Referred User A, B, C, D or E, regardless of whether or not such qualified Referred User A, B, C, D or E is Consultant. 

 

  

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 The Consultants can receive additional Points for any additional Referred Users identified by any of their initial Referred Users, and so on, but subject to limitations as follows: 

 

	
 Type of Referred User 

	
 Percentage of Points of Type of Referred User earned by Consultant 

	
 Referred User A initially identified by Consultant and invited by Company 

	
 50% 

	
 Referred User B identified by Referred User A and invited by Company 

	
 25% 

	
 Referred User C identified by Referred User B and invited by Company 

	
 12.5% 

	
 Referred User D identified by Referred User C and invited by Company 

	
 6.75% 

	
 Referred User E identified by Referred User D and invited by Company 

	
 3.375% 

	
 Referred User F and lower identified by Referred User E and lower and invited by Company 

	
 None 

 If a Consultant or a Referred User A, B, C, D or E in the table above identifies a potential user for invitation by the Company to become a Referred User and the person identified is already a Referred User for another Consultant or Referred User, then the Consultant will not receive any Points for that person so identified.  Further, if a Consultant or a Referred User A, B, C, D or E in the table above identifies a potential user for invitation by the Company to become a Referred User and the person identified is has been identified and invited by the Company to become a Referred User, if the person identified and invited does not become a Referred User within 7 days of being identified and invited by the Company, then that person may become a Referred User for another Consultant or Referred User such other Consultant or Referred User subsequently identifies the invited person again and that invited person becomes a Referred User. 

  

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