COVENANTS 27. 6.01. Conduct of the Business in the Ordinary Course 27 6.02. Required Acts 28 6.03. Prohibited Acts 28 6.04. Regulatory Approvals 29 6.05. Access to Information and Properties 30 6.06. Agreements and Consents 31 6.07. Fees and Expenses 31 6.08. Employees 31 6.09. Notification 31 6.10. BINs 31 6.11. Exclusive Dealing 31 6.12. Nevada Branch Opening 32 6.13. Execution and Delivery of Program Contracts 32 6.14. Further Assurances 33 ARTICLE VII POST-CLOSING 33 7.01. Affiliate Merger 33 7.02. Filings; Power of Attorney 33 7.03. Overdrafts True-Ups 33 ARTICLE VIII CONDITIONS 34 8.01. Conditions to Obligations of HRB Bank and Block Financial 34 8.02. Conditions to Obligations of BofI 35 ARTICLE IX TERMINATION, AMENDMENT, AND WAIVER 37 9.01. Termination 37 9.02. Effect of Termination 38 ARTICLE X INDEMNIFICATION 38 10.01. HRB Bank’s Indemnity 38 10.02. BofI Indemnity 39 10.03. Indemnity Procedure 40 10.04. Limitations on Indemnity 42 10.05. Exclusive Remedy 43 ARTICLE XI TRANSITIONAL AND POST-CLOSING MATTERS 43 11.01. Notification to Customers 43 11.02. Payment of Instruments 43 11.03. Statements 43 11.04. Access to Records 44 11.05. Information Reporting 44 11.06. Transition 44 ARTICLE XII GENERAL PROVISIONS 44 12.01. Amendment 44 12.02. Waiver 44 12.03. Survival of Representations and Warranties 45 12.04. Binding Effect; Assignment 45 12.05. Severability 45 12.06. Headings 45 12.07. Entire Agreement 45 12.08. Counterparts 45 12.09. Notices 45 12.10. Governing Law; Jurisdiction; Waiver of Jury Trial 47 12.11. Third Party Beneficiaries 48 12.12. Specific Performance 48 12.13. Mutual Drafting 48 12.14. Interpretive Provisions 48 Signature Page S-1 List of Schedules Schedule 3.02 - Sample Transfer Amount Calculation Schedule 3.03 - Prior Engagements Schedule 3.06 - Items of Income and Expenses to be Prorated Schedule 6.01 - Transactions Outside the Ordinary Course of Business Schedule 8.01(h) - Required Third Party Consents List of Exhibits
COVENANTS 27. 5.1 Conduct of Business by the Company Pending the Closing 27 5.2 Proxy Statement; Meeting of Shareholders. 29 5.3 Cooperation 31 5.4 Access to Information; Confidentiality 31 5.5 No Solicitation 31 5.6 Appropriate Action; Consents; Filings 33 5.7 Certain Notices 35 5.8 Public Announcements 35 5.9 Company 401(k) Plan 35 5.10 Indemnification of Directors and Officers 36 5.11 State Takeover Laws 36 5.12 Parent Agreement Concerning Purchaser 37 5.13 Section 16 Matters 37 5.14 Transfer Taxes 37 5.15 Stock Exchange De-listing 37 5.16 Shareholder Litigation 37
COVENANTS 27. Section 4.1. Conduct of Business of XXXXXXXXX 27 Section 4.2. Conduct of Business of LORETO 29 Section 4.3. Preparation of 8-K 32 Section 4.4. Other Potential Acquirers 32 Section 4.5. Meetings of Stockholders 32 Section 4.6. FINRA OTC:BB Listing 32 Section 4.7. Access to Information 32 Section 4.8. Additional Agreements; Reasonable Efforts. 33 Section 4.9. Employee Benefits; Stock Option and Employee Purchase Plans 33 Section 4.10. Public Announcements 33 Section 4.11. Indemnification 34 Section 4.12. Notification of Certain Matters 35
COVENANTS 27. Section 5.1 Reservation of Conversion Shares and Shares Issuable Upon Exercise of Warrants 27 Section 5.2 Indemnification 27 Section 5.3 Key Man Insurance 27 Article VI. MISCELLANEOUS 28 Section 6.1 Expenses 28 Section 6.2 Survival of Agreements 28 Section 6.3 Entire Agreement 28 Section 6.4 Assignment; Binding Effect 28 Section 6.5 Notices 29 Section 6.6 Specific Performance; Remedies; Arbitration 29
COVENANTS 27. 4.1 Conduct of the Business Prior to Closing; Closing Efforts 27
COVENANTS 27. Section 8. The Collateral Agent 28 Section 8.1. Appointment, Powers and Immunities 28 Section 8.2. Instructions of the Company 29 Section 8.3. Reliance by Collateral Agent 30 Section 8.4. Rights in Other Capacities 30 Section 8.5. Non-Reliance on Collateral Agent 31 Section 8.6. Compensation and Indemnity 31 Section 8.7. Failure to Act 31 Section 8.8. Resignation of Collateral Agent 32 Section 8.9. Right to Appoint Agent or Advisor 34 Section 8.10. Survival 34 Section 8.11. Exculpation 34 Section 9. Amendment 34
COVENANTS 27. Section 6.1. Conduct of Business of the Company and JAC. 27 Section 6.2. Private Placement. 29 Section 6.3. Access to Information. 29 Section 6.4. Efforts to Consummate; Regulatory Matters. 30 Section 6.5. The Proxy. 30 Section 6.6. Third Party Consents. 31 Section 6.7. Notice. 32 Section 6.8. Public Announcements. 32 Section 6.9. Exclusive Dealing. 32 Section 6.10. Documents and Information. 33 Section 6.11. Contact with Customers, Suppliers and Other Business Relations. 33
COVENANTS 27. Section 5.1 Conduct of Business by the Company Pending the Closing 27 Section 5.2 Cooperation 29 Section 5.3 Proxy Statement 30 Section 5.4 Company Shareholders’ Meeting; Consent of Parent as Sole Shareholder of Merger Sub 31 Section 5.5 Access to Information; Confidentiality 31 Section 5.6 Acquisition Proposals 32 Section 5.7 Appropriate Action; Consents; Filings 33 Section 5.8 Certain Notices 36 ii Section 5.9 Public Announcements 36 Section 5.10 Employee Benefit Matters 36 Section 5.11 Indemnification of Directors and Officers 38 Section 5.12 Certain Tax Matters 39
COVENANTS 27. Section 5.1 Conduct of Business by Target Pending the Closing 27 Section 5.2 Cooperation 31 Section 5.3 Access to Target Information; Confidentiality 31 Section 5.4 No Solicitation of Transactions 32 Section 5.5 Appropriate Action; Consents; Filings 33 Section 5.6 Takeover Statutes 35 Section 5.7 Public Announcements 35 Section 5.8 Indemnification of Directors and Officers 35 Section 5.9 Tax Matters 36 Section 5.10 Delivery of Interim Financial Statements 37 Section 5.11 Transitional Matters 37 Section 5.12 Amendment of Target Governing Documents 38 Section 5.13 Further Assurances 38
COVENANTS 27. Section 5.1 Tax Matters 27 Section 5.2 Public Announcements 27 Section 5.3 Documents and Information 28 Section 5.4 Non-Solicitation of Employees; Non-Competition 28 Section 5.5 Confidentiality 29 Section 5.6 Post-Closing Turnover of Proceeds and Assets Received by Company and Other Obligations 30 Section 5.7 Post-Closing Payment of Assumed Liabilities by Buyer 30 Section 5.8 Transition Assistance for Microsoft Dynamic Software Data Transfer 30
