MANAGEMENT SERVICES AGREEMENT
This
Management Services Agreement (this “Agreement”)
is
entered into as of July __, 2008, by and among Omaha Holdings Corp, a Delaware
corporation (“OMAHA”
or
the
“Company”),
NTS-WIT Holdings, LLC, a Delaware limited liability company (“Holdings”),
and
CDV Capital Partners, LLC (“CDV”),
a New
York corporation.
In
consideration of the premises described herein, the parties hereto agree as
follows:
WITNESSETH:
1.
BACKGROUND
AND PURPOSE.
1.1
OMAHA
owns 100% of the issued and outstanding capital stock of North Texas Steel
Company, Inc., a corporation incorporated under the laws of the State of Texas
(“NTSCO”), and Whitco Poles, Inc., a corporation incorporated under the laws of
the State of Texas (“Whitco”
and
together with NTSCO, the “OMAHA
Subsidiaries”).
1.2
Holdings owns, holds and/or has agreed to acquire 100% of the issued and
outstanding shares of capital stock of/equity in/ownership interest in the
Company. The outstanding shares of capital stock of/equity in/ownership interest
in the Company is referred to herein as the “Company
Capital Stock”.
1.3
The
individuals listed on Annex A hereto, each of whom is an employee of CDV (each,
an “CDV
Key Employee”).
1.4
OMAHA
desires to obtain management services described on Schedule A hereto (the
“Services”)
from
CDV utilizing the services of the CDV Key Employees, and CDV desires to provide
the Services to OMAHA utilizing the services of the CDV Key Employees, all
on
the terms and conditions set forth in this Agreement.
2. AGREEMENT
TO PROVIDE MANAGEMENT SERVICES.
2.1
The
Company hereby requests from CDV, and CDV hereby agrees to provide to the
Company, the Services. CDV, through the CDV Key Employees, will devote so much
of its business time and effort to the provision of Services to ensure the
prompt and efficient accomplishment of the Services, and will not, except with
OMAHA’s expressed written consent, accept any undertakings for any other person
or entity. CDV shall cause each CDV Key Employee to execute and deliver to
OMAHA
an agreement in the form of agreement attached hereto as Schedule 2.1 pursuant
to the terms of which such person shall agree to (i) comply with all legal
directives of the Board of Directors of OMAHA (the “Board”)
(a) in
conformity with the terms and provisions hereof and (b) as necessary to
discharge his duties to CDV and (b) to use his best efforts to promote the
interests of OMAHA and the OMAHA Subsidiaries. CDV, each CDV Key Employee and
any other employee, representative and agent of CDV discharging the duty(ies)
or
task(s) previously discharged by a CDV Key Employee shall execute a Confidential
Information, Non-Competition and Invention Assignment Agreement
with
the
Company on or before July ___, 2008 in the form attached as Exhibit A (the
“Confidentiality
Agreement”)].
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2.2
Substantially all of the Services shall be provided to OMAHA by CDV through
the
CDV Key Employees. However, CDV shall otherwise be solely responsible for
determining the method, details and means of performing the Services to OMAHA,
and CDV may, at CDV’s own expense, employ or engage the service of such other
employees or subcontractors as XXX xxxxx necessary to perform the Services
(the
“Additional
CDV Service Providers”).
Such
Additional CDV Service Providers are not, and shall not be, the employees of
OMAHA or any of its affiliates, and CDV shall be wholly responsible for the
professional performance of the Services by the Additional CDV Service Providers
such that the results are satisfactory to OMAHA in OMAHA’s sole discretion. CDV
shall expressly advise each Additional CDV Service Provider of the terms of
this
Agreement, and shall require each Additional CDV Service Provider to execute
a
Confidentiality Agreement.
3. MANAGEMENT
FEES.
In
consideration for the Services to be rendered by CDV to OMAHA hereunder,
beginning 30 days from the date of this agreement and for each month during
the
Term (as defined herein), OMAHA shall on the first business day of each such
calendar month during the Term pay to CDV a management fee equal to ten percent
(10%) of the Consolidated
EBITDA and Gross Revenues
of OMAHA
for the relevant calendar period (the “Management
Fee”).
Notwithstanding the immediately foregoing, under no circumstances shall the
Management Fee payable in any calendar year exceed Three Hundred Thousand
Dollars ($300,000.00) Management
FeeThe
Management Fee shall be payable monthly in arrears. For purposes of hereof,
Consolidated EBITDA shall be calculated in a manner and supported by appropriate
backup, in each case, acceptable to a majority of members of the Board of
Directors of OMAHA as determined in their sole discretion. In general, the
calculation of Consolidated EBITDA for a period should be the sum of
consolidated net income for such period plus
taxes,
interest, amortization and depreciation, less
any gain
from extraordinary items plus
losses
from extraordinary items. OMAHA’s determination of Consolidated EBITDA shall be
final, binding and conclusive on the Employee. Gross Revenues shall be
calculated in a manner and supported by appropriate backup, in each case,
acceptable to a majority of members of the Board of Directors of OMAHA as
determined in their sole discretion.
4. EQUITY.
4.1
Issuance
of Company Capital Stock
Upon the
execution of this Agreement by both parties, the Company shall issue to CDV
Company Capital Stock (the “Company Capital Stock”) equal totwenty percent (20%)
of the issued and outstanding shares of Company Capital Stock (____shares)
[Xxx?] OMAHA
and Holdings represent, Company Capital Stock and covenant that no Company
Capital Stock will be issued to, or purchased by, a Laurus Person (as each
such
term is defined herein), without the prior written consent of CDV in its sole
discretion.
The
Company Capital Stock may only be sold, assigned, or otherwise transferred
in
connection with the consummation of a Transfer of Control Transaction (as
defined below) pursuant to Section 4(c) hereof, and such sale, assignment or
transfer shall become effective only upon consummation of such Transfer of
Control.
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4.1(a) Issuance
of Additional Company Capital Stock. Subject to the repayment in full of the
Series A Preferred Stock with a stated value of $_____ and a dividend rate
of
ten percent (10%), payable monthly and any accrued dividends, prior to the
one-year anniversary, CDV shall be an additional Company Capital Stock equal
to
thirty five percent (35%) of the Company and if after the one-year anniversary
but less than the second anniversary, shall be issued an additional Company
Capital Stock equal to twenty five (25%) of the Company.
4.2
Transfers
of Equity.
(a) General.
Any
sale, pledge, assignment or other transfer (each, a “Transfer”)
of the
Company Capital Stock (or any portion thereof) or any CDV Shares issued upon
exercise thereof shall be void unless the transferring holder thereof (each,
a
“Transferring
Stockholder”)
and
the transferee of such CDV Shares or the Company Capital Stock (or any portion
thereof), as applicable (the “Transferee”),
shall
each comply with this Section 4.2 and 4.2(a).
(b) Transfers
Subject to Consents/Execution of this Agreement.
No
Transfer of (i) the Company Capital Stock (or any portion thereof), except
to
any officer or CDV Key Employee in compliance with all applicable securities
laws or (ii) any shares of Company Capital Stock acquired by CDV or any
transferee of CDV (CDV and any such Transferee of CDV, the “CDV
Transferees”)
upon
exercise of the Company Capital Stock shall be made without (i) the prior
written approval of a majority of the members of the Board and compliance with
applicable securities laws, (ii) pursuant to the terms and provisions of
subsection (c) of this Section 4.2 and (iii) compliance with all applicable
secrurities laws. In addition, no Transfer of all or any portion of the Company
Capital Stock or any CDV Shares. shall become effective unless and until the
CDV
Transferee executes and delivers to OMAHA a counterpart signature page to this
Agreement, agreeing to be treated in the same manner as the Transferring
Stockholder. Upon such Transfer and such execution and delivery, the CDV
Transferee shall be bound by and entitled to the benefits of this Agreement
in
the same manner as the Transferring Stockholder. Any Transfer of the Company
Capital Stock or any shares of Company Capital Stock acquired by any of the
CDV
Transferees not in accordance with this Section 4 shall be void.
(c) Drag-Along/Tag
Along.
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(i) If
(A)
Holdings or any transferee of any shares of Company Capital Stock directly
or
indirectly from Holdings (i) proposes to transfer any of its shares of Company
Capital Stock in a Transfer of Control of OMAHA and/or any of the OMAHA
Subsidiaries, in a bona fide, arm’s length Transfer of Control to a person who
is not a Laurus Person, (ii) votes its shares to authorize or approve the sale
or transfer of all or substantially all of the assets (including equity
interests in OMAHA Subsidiaries) of OMAHA, and/or any OMAHA Subsidiary in a
bona
fide Transfer of Control Transaction (as defined below) to a person who is
not a
Laurus Person or (iii) votes its shares to authorize or approve the merger,
combination or consolidation of OMAHA or any of the OMAHA Subsidiaries or a
share exchange with respect to OMAHA and/or any of the OMAHA Subsidiaries in
a
Transfer of Control Transaction with/to a person who is not a Laurus Person
(the
transfer and or votes as set forth in sub provision (A)(i), (ii) and/or (iii)
of
provision (c)(i) of Section 4 is referred to herein as a “OMAHA
Transaction Proposal”),
AND/OR if (B) any entity owning, holding and/or controlling any shares of stock
in/ownership interest in and/or equity interest in Holdings or any entity owning
or controlling a majority of the issued and outstanding Company Capital Stock
(the “Holdings Equity Interest”) or any transferee of any Holdings Equity
Interest (each a “Holdings’ Shareholder”) (i) proposes to transfer any of its
Holdings Equity Interest to a person who is not a Laurus Person in a bone fide
arm’s length Transfer of Control Transaction to a person who is not a Laurus
Person, (ii) votes its Holdings Equity Interest to authorize or approve the
sale
or transfer of all or substantially all of the assets of Holdings in a Transfer
of Control Transaction to a person who is not a Laurus Person or (iii) votes
its
Holdings Equity Interest to authorize or approve the merger, combination or
consolidation of Holdings or a share exchange with respect to Holdings in a
Transfer of Control Transaction with a person who is not a Laurus Person (the
transfer and or votes as set forth in sub provision (i), (ii) and/or (iii)
of
(B) of provision (c)(i) of Section 4 is referred to herein as a “Holdings
Transaction Proposal”
and
together with a OMAHA Transaction, collectively the “Transaction
Proposal”).,
then
OMAHA and/or Holdings or such Holdings’ Shareholder, as applicable, shall
provide a written notice of the Transaction Proposal to CDV setting forth the
terms of that transfer or sale (the “Inclusion
Notice”),
and
may but shall not be obligated to, require CDV to exercise the Company Capital
Stock and to sell or cause to be sold, the same proportionate part of (a) the
shares of Company Capital Stock owned by CDV or to be acquired by CDV pursuant
to an exercise of the Company Capital Stock, as bears to the percentage of
Company Capital Stock proposed to be and/or sold by Holdings or (b) the shares
of Company Capital Stock owned by CDV proportionate to the part of the Holdings
Equity Interest proposed to be sold bears to the interest of Holdings in and
to
OMAHA, all on the same terms and conditions obtained by Holdings and/or any
Holdings Shareholder in the Transfer of Control Transaction. In either event,
CDV shall be entitled to receive as consideration for exercise of the Company
Capital Stock and/or its shares of Company Capital Stock hereunder, one hundred
percent (100%) of the per share price obtained by Holdings (being (a) the total
remitted from the applicable Buyer in connection with any asset sale, merger,
consolidation, combination or share exchange of Holdings and/or OMAHA plus
(b)
any other sums paid and/or payable to any Laurus Person or any transferee of
any
direct and/or indirect obligation of OMAHA to any Laurus Person but excluding
(c) any amount remitted to a Laurus Person pursuant to the Laurus Preferred
Stock, (as herein defined) in connection with, arising from or related to any
Transfer of Control Transaction, in connection with a sale of the assets of
OMAHA or Holdings, as applicable, and one hundred percent (100%) of the per
share price obtained by Holdings in connection with the Transfer of Control
Transaction of OMAHA or the Holdings’ Shareholders in connection with the
Transfer of Control Transaction of Holdings and the consideration received
by
all affiliates and associates of Holdings or the Holdings’ Shareholders, as
applicable plus any Additional Laurus Sums (allocated on a per share basis
over
all of the issued and outstanding shares of Company Capital Stock) in connection
with a sale of the assets of OMAHA or Holdings, as applicable, divided by the
total number of the issued and outstanding shares of Company Capital Stock.
For
purposes of this Agreement, (i) any preferred stock of OMAHA held by any Laurus
Person and outstanding on the date of execution hereof by CDV is referred to
herein as the “Laurus Preferred Stock”, (ii) each Laurus Person and each
transferee of any direct and/or indirect obligation of OMAHA or any of the
OMAHA
Subsidiaries to any Laurus Person is sometimes referred to herein as a “Laurus
Entity”, and (iii) all amounts, sums, funds and/or remuneration remitted to any
Laurus Entity, excluding any amount remitted to a Laurus Person pursuant to
the
Laurus Preferred Stock, are referred to herein collectively as the “Additional
Laurus Sums”.
The
term “Transfer
of Control Transaction”
shall
mean (A)
any
sale or transfer of Company Capital Stock or capital stock of Holdings or any
merger, consolidation, share exchange, or combination of the Company or Holdings
with or into another entity, which in each case results in the holders of the
voting securities of the Company or Holdings outstanding immediately prior
thereto owning immediately thereafter less than a majority of the voting
securities of the Company, Holding or the surviving entity, as the case may
be,
outstanding immediately after such sale, transfer, merger, consolidation share
exchange, or combination; (B) a sale of all or substantially all of the assets
of this Company (including equity interests in OMAHA subsidiaries) or Holdings.
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(B) Without
limiting the rights pursuant to subsection (A) of this section, within thirty
days following receipt of an Inclusion Notice, CDV may elect (i) to exercise
the
Company Capital Stock, in whole or in part, and sell, or cause to be sold,
the
same proportionate part of the shares of Company Capital Stock owned by CDV
as
are proposed to be sold by Holdings, a Holdings’ Shareholder and/or a transferee
of Holdings and/or a Holdings Shareholder, as applicable, on the same terms
and
conditions obtained by the Holdings and/or a Holdings Shareholder, as
applicable, in the Transfer of Control Transaction or (ii) to exercise the
Company Capital Stock, in whole or in part, and sell all of its shares of
Company Capital Stock to OMAHA or to OMAHA’s designee in the case of an asset
sale, merger, consolidation, combination or share exchange of the Corporation
that is a Transfer of Control Transaction. In either event, CDV shall receive,
as consideration for its shares of Company Capital Stock, (a) one hundred
percent (100%) of the per share price obtained by Holdings, a Holdings
Shareholder and/or a transferee thereof, as applicable, in connection with
the
Transfer of Control or (b) the consideration received by OMAHA, Holdings, a
Holdings Shareholder and/or a transferee thereof, as applicable, plus any
Additional Laurus Sums (allocated on a per share basis over all of the issued
and outstanding shares of Company Capital Stock) in connection with a sale
of
the assets of OMAHA and/or Holdings, as applicable.
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(C)Each
Inclusion Notice required shall include reasonable details of the proposed
Transaction in question including, but not limited to, the following: (i) the
proposed time and place of the closing of the transaction; (ii) the substantive
terms and conditions of the proposed Transaction (A) the purchase price and
terms of payment and (B) the identity, beneficial ownership, address and
telephone number of the third-party purchaser (the “Buyer”)
having
made the bona fide offer; (iii) the number and class of shares of Company
Capital Stock held by the Buyer and its affiliates (if any) and the substantive
terms and conditions of any previous transactions under which the Buyer or
any
of its affiliates purchased shares of Company Capital Stock of the Company
from
the transferor thereof, including the price per share at which such share of
Company Capital Stock was purchased; and (iv) any written consent of
stockholders, stockholder resolutions (if the transaction in question is being
approved at a stockholders meeting), agreement, instrument or other document
CDV
is required to execute together with all exhibits, attachments and schedules
thereto.
(D)Holdings
and OMAHA shall cause each and every transferee of any shares of Company Capital
Stock and each and every transferee of any Holdings Equity Interest, to execute
this agreement and otherwise agree to be bound by the terms and provisions
hereof, including, but not limited to the rights and obligations set forth
in
this Section 4, all in a manner reasonably acceptable to CDV.
For
purposes of this Agreement, Any reference to "affiliate" shall mean as to any
Person: (1) any other person or entity directly or indirectly controlling,
controlled by, or under common control such Person, where "control" for the
purposes of this definition means the direct or indirect ability to control
the
management or policies of such Person, whether by voting rights, by contract
rights, or otherwise; (2) any person or entity owning or controlling ten percent
or more of the outstanding voting securities of such Person; or (3) any officer,
director, partner or employee of such Person. Any reference to “associate” shall
having that meaning ascribed to such term in the Securities Act of 1933 or
the
Securities Exchange Act of 1934, the rules or regulations promulgated thereunder
or as interpreted by a court of competent jurisdiction in construing such
statutes, rules and/or regulations.
5. EXPENSES.
Within
ten (10) business days of receipt of documentation of travel and other out-of
pocket expenses reasonably incurred by CDV in connection with the performance
of
Services pursuant to this Agreement, the Company shall reimburse CDV for such
expenses; provided,
however,
CDV
will not incur any expense in excess of $2,500 without the prior written consent
of the Board or an authorized designee of the Board (a “Board
Designee”).
For
purposes of this Agreement, salaries and employee benefit and similar costs
of
CDV employees will not be deemed a reimbursable expense.
6.
STATUS.
6.1
The
relationship of CDV to OMAHA arising out of this Agreement shall be that of
an
independent contractor. CDV, in accordance with its status as independent
contractor, covenants and agrees that it will conduct itself in a manner
consistent with such status, that it will neither hold itself out as, nor claim
to be, an officer or employee of OMAHA or any of OMAHA’s affiliates by reason
hereof, and that it will not by reason hereof, make any claim, demand or
application for any right, privilege or benefit applicable to an officer or
employee of OMAHA or any of OMAHA’s affiliates including, but not limited to,
workers’ compensation coverage, unemployment insurance benefits, social security
coverage, or retirement membership or credit, and CDV (on behalf of itself
and
its employees) hereby expressly waives all such rights, privileges and benefits.
It is the intention of the parties that this Agreement shall not be construed
to
create or give rise to any partnership, agency or joint venture between the
parties.
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6.2
Except
as set forth on Schedule B, neither CDV, nor any member, manager, partner,
agent
or employee of CDV, has authority to enter into contracts that bind the OMAHA
or
any of OMAHA’s affiliates or create obligations on the part of the OMAHA or any
of its affiliates without the prior written authorization of the Board or the
Board Designee.
6.3
CDV
shall have full responsibility for applicable withholding taxes for all
compensation and other amounts paid to CDV, its members, managers, partners,
agents or its employees under this Agreement, and for compliance with all
applicable labor and employment requirements with respect to CDV’s form of
business organization, and CDV’s members, managers, partners, agents and
employees, including state worker’s compensation insurance coverage requirements
and any US immigration visa requirements applicable to CDV’s members, managers,
partners, agents and employees. CDV agrees to indemnify, defend and hold the
Company harmless from any liability for, or assessment of, any claims or
penalties with respect to such withholding taxes, labor or employment
requirements of CDV’s officers, agents and employees, including any liability
for, or assessment of, withholding taxes imposed on the Company for or with
respect to any of CDV’s officers, agents and employees by the relevant taxing
authorities with respect to any compensation paid to CDV or CDV’s officers,
agents or employees; provided,
however,
that
nothing contained in this Agreement shall or shall be deemed to impose upon
CDV
and/or any affiliate or associate thereof any liability and/or indemnification
responsibility for or in connection with OMAHA or any of the OMAHA Subsidiaries
compliance with any applicable labor and employment requirements with respect
to
any lessee and/or client of OMAHA or any of the OMAHA Subsidiaries.
6.4
CDV
will be required to report to the Board
or
Board Designee concerning
the Services performed under this Agreement. The nature and frequency of these
reports will be left to the reasonable discretion of the Board
or
the Board Designee. Notwithstanding the foregoing, no Laurus Entity shall
require OMAHA or direct/instruct CDV to request OMAHA to remit any “OMAHA Trust
Funds” except pursuant to the reasonable approval of CDV. For purposes of this
Agreement, OMAHA Trust Funds shall mean and include any amounts remitted to
OMAHA and/or any of the OMAHA Subsidiaries by, or for the benefit of, a
client/customer of OMAHA or any of the OMAHA Subsidiaries, to be held by OMAHA
or any of the OMAHA Subsidiaries in a trust or quasi trust capacity and/or
for
remittance by OMAHA and/or any of the OMAHA Subsidiaries to another. Without
the
consent of Holdings (which consent shall not be unreasonably withheld), such
amount shall be limited to, (i) settlement sums remitted by a client/customer
of
OMAHA or any of the OMAHA Subsidiaries for and with the instruction/agreement
that OMAHA or one of the OMAHA Subsidiaries shall remit such amount to an
independent contractor providing any benefit to the customer/client, (ii) any
sums remitted by a client/customer of OMAHA or any of the OMAHA Subsidiaries
for
and with the instruction/agreement that OMAHA or one of the OMAHA Subsidiaries
shall retain such funds and remit such amounts, and/or a portion thereof, to
a
third party that provides a benefit, such as insurance, to an independent
contractor providing any benefit to the customer/client and (iii) any sums
remitted by a client/customer of OMAHA or any of the OMAHA Subsidiaries for
and
with the instruction/agreement that OMAHA or one of the OMAHA Subsidiaries
shall
retain such funds and remit such amounts, and/or a portion thereof, to a tax
assessing/collecting entity at the instruction of an independent contractor
providing any benefit to the customer/client.
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7.
TERM
AND TERMINATION.
7.1 This
Agreement shall be effective, CDV shall provide the Services and OMAHA shall
remit the Management Fee to CDV as contemplated hereby, commencing as of July
___, 2008 and terminating on the earlier of (i) July 30, 2011, (ii) the Transfer
of Control of OMAHA and/or Holdings and (iii) the termination of this Agreement
as contemplated by section 9.2, hereof (the “Term”).
7.2 This
Agreement may be terminated as follows:
(a)
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Termination
by Mutual Consent.
This Agreement may be terminated by at any time by mutual written
consent
of the parties, effective as provided
therein.
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(b)
|
Termination
upon Default.
This Agreement may be terminated by the non-defaulting party upon
a
default (“Default”).
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“Default”
shall
mean:
(i)
With
respect to either party, breach of this Agreement continuing uncured for a
period of thirty (30) days after receipt of written notice thereof from the
other party, unless the notice specifies a longer period; or
(ii)
With
respect to either party, an assignment for the benefit of creditors; the
institution of involuntary or voluntary proceedings under the United States
Bankruptcy Code or state insolvency laws that is not dismissed within ninety
(90) days; or the appointment of a receiver or trustee, unless vacated within
forty-five (45) days; or
(iii)
With respect to OMAHA, the failure to remit any installment/portion of the
Management Fee, including, but not limited to, any monthly installment thereof;
or
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(v)
If
(i) Holdings ceases to own more than 50.1% of the capital stock of OMAHA and/or
ceases to have more than 50.1% of the voting control of OMAHA, and/or (ii)
any
funds managed by Laurus or their affiliates cease to own more than 50.1 % of
Holdings and/or have more than 50.1% of the voting control of Holdings;
or
7.3 (a) |
Subject
to the terms and conditions hereof, termination of this Agreement
will not
affect the obligation of OMAHA to pay to CDV all amounts earned by,
and
payable to, CDV in accordance with the terms hereof prior to the
effective
date of termination.
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(b)
|
Section
4 hereof shall survive termination of this Agreement for any
reason.
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8.
REPRESENTATIONS
AND WARRANTIES.
8.1
OMAHA
represents and warrants and agrees as follows:
(a)
|
It
is not a party to or bound by any agreement or contract or subject
to any
restrictions, including, without limitation, in connection with any
previous or other consulting relationship, which prevents OMAHA from
entering into and performing its obligations under this
Agreement.
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(b)
|
It
is a corporation duly organized, validly existing and in good standing
under the laws of the State of New York and has the legal power and
authority to enter into and perform this
Agreement.
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(c)
|
This
Agreement has been approved by all necessary corporate action, and
no
further action by OMAHA is required in connection herewith. The execution
and delivery of this Agreement do not violate any provision of OMAHA’s
Certificate of Incorporation or by-laws, or any judgment, decree,
mortgage, deed of trust, lease, agreement, indenture or other instrument
applicable to OMAHA. This Agreement has been duly executed and delivered
by a duly authorized officer of OMAHA; and upon delivery shall then
constitute legal, valid and binding obligations of OMAHA, enforceable
in
accordance with its terms.
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(d)
|
Any
and all agreements and or understanding by and between OMAHA and/or
any of
the OMAHA Subsidiaries, on the one hand, and CDV or any of its members,
managers, partners, agents and/or employees, on the other hand, is
hereby
terminated and superseded by this
Agreement.
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(e)
|
The
statements set forth in section 1.1 and 1.2 of this Agreement and
the
statements pertaining to OMAHA set forth in section 1.4 of this Agreement,
are true and accurate.
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8.2
CDV
represents, warrants and agrees as follows:
(a)
|
Neither
it nor any of its directors, officers, members, managers, partners,
agents
or employees is a party to or bound by any agreement or contract
or
subject to any restrictions, including, without limitation, in connection
with any previous or other consulting relationship, which prevents
CDV or
any of its employees from entering into and performing its obligations
under this Agreement.
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(b)
|
It
is a corporation duly organized, validly existing and in good standing
under the laws of the State of New York and has the legal power and
authority to enter into and perform this
Agreement.
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(c)
|
This
Agreement has been approved by all necessary corporate action, and
no
further action by CDV is required in connection herewith. The execution
and delivery of this Agreement do not violate any provision of CDV’s
Certificate of Incorporation or bylaws, or any judgment, decree,
mortgage,
deed of trust, lease, agreement, indenture or other instrument applicable
to CDV. This Agreement has been duly executed and delivered by a
duly
authorized member of CDV; and upon delivery shall then constitute
legal,
valid and binding obligations of CDV, enforceable in accordance with
its
terms.
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(d)
|
CDV’s
performance of all the terms of this Agreement will not breach any
agreement to keep in confidence proprietary information acquired
by CDV in
confidence or in trust prior to commencement of this
Agreement.
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(e)
|
CDV
has the right to disclose and/or or use all ideas, processes, techniques
and other information, if any, which CDV has gained from third parties,
and which CDV discloses to the Company or uses in the course of
performance of this Agreement, without liability to such
parties.
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(f)
|
CDV
has not granted and will not grant any rights or licenses to any
intellectual property or technology that would conflict with CDV’s
obligations under this Agreement.
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(g)
|
CDV
will not knowingly infringe upon any copyright, patent, trade secret
or
other property right of any former client, employer or third party
in the
performance of the Services.
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(h)
|
The
statements set forth in section 1.4 of this Agreement and the statements
pertaining to CDV and/or the CDV Key Employees set forth in section
1.4 of
this Agreement, are true and
accurate.
|
(i) |
The
Company Capital Stock (collectively, the “Securities”)
are, and will be, acquired by CDV for CDV’s own account for purposes of
investment, not as a nominee or agent, and not with a view to or
in
connection with the distribution or resale of all or any part thereof
in
violation of the securities laws of any jurisdiction, and that CDV
does
not have any (i) present intention of selling, transferring, granting
any
participation in, or otherwise distributing the same in violation
of the
securities laws of any jurisdiction, or (ii) contract, undertaking,
agreement or arrangement with any person or entity to sell, transfer,
grant any participation in or otherwise distribute all or any part
of the
Securities in violation of the securities laws of any
jurisdiction.
|
(j) |
CDV
understands that the Securities will not be registered under the
Securities Act of 1933, as amended (the “Act”),
or applicable state securities laws by reason of specific exemptions
therefrom, which exemptions depend upon, among other things, CDV
representations set forth herein and CDV understands that no public
market
now exists for the securities and that the Company has made no assurances
that a public market will ever exist for the
securities.
|
(k) |
CDV
(i) has sufficient knowledge and experience in financial or business
matters that it is capable of evaluating the merits and risks of
its
investment in the Securities; (ii) is able to protect its interests
and
fend for itself in the transactions contemplated by this Agreement;
and
(iii) has the ability to bear the economic risks of its
investment.
|
(l) |
CDV
was not formed specifically for the purpose of acquiring the Securities
and otherwise is an “accredited investor” as such term is defined in Rule
501(a) of Regulation D promulgated under the Securities
Act.
|
(m) |
CDV
understands that the Securities are characterized as “restricted
securities” under the federal securities laws inasmuch as they are being
acquired from the Company in a transaction not involving a public
offering
and that under such laws and applicable regulations such Securities
may be
resold without registration under the Act only in certain limited
circumstances. In this connection, CDV represents that it is
familiar with Rule 144, as presently in effect, and understands the
resale
limitations imposed thereby and by the Securities
Act.
|
(n) |
CDV
has satisfied itself as to the full observance by it of the laws
of its
jurisdiction in connection with any invitation to subscribe for the
Securities, including the tax consequences, if any, which may be
relevant
to the acquisition, holding, conversion, sale or transfer of the
Securities.
|
11
9.
INDEMNIFICATION.
9.1 Indemnification
by OMAHA.
OMAHA
will indemnify, defend, and hold harmless
CDV and its officers, directors and affiliates from and against any and all
losses, expenses, damages, claims, suits, demands, and causes of action,
including, without limitation, reasonable fees and expenses of attorneys, court
costs, and other litigation and dispute resolution costs, arising from or
relating to or any breach of this Agreement by OMAHA.
9.2 Indemnification
by CDV.
CDV
will indemnify, defend, and hold harmless OMAHA and its affiliates, and their
respective officers, directors members and managers from and against any and
all
losses, expenses, damages, claims, suits, demands, and causes of action,
including, without limitation, reasonable fees and expenses of attorneys, court
costs, and other litigation and dispute resolution costs, arising from or
relating to the performance of the Services not in accordance with the terms
and
provision hereof or any breach of this Agreement by CDV.
10.
MISCELLANEOUS.
10.1
This
Agreement contains the entire understanding of the parties with respect to
the
subject matter contained herein and may not be altered, amended or superseded
except by an Agreement in writing, signed by the party against whom enforcement
of any waiver, change, modification, extension or discharge is sought. This
Agreement may be assigned by CDV only with the prior written consent of
OMAHA.
10.2
This
Agreement, including the Schedules, Annexes and Exhibits hereto, constitutes
the
only agreement of the parties and supersedes all oral negotiations and prior
writings with respect to the subject matter hereof. This Agreement may be
executed in counterparts, each of which shall be deemed an original, but all
of
which together will constitute one and the same instrument. If any provision
of
this Agreement shall be prohibited or invalid under applicable law, such
provision shall be ineffective only to the extent of such prohibition or
invalidity without invalidating the remainder of such provision or the remaining
provisions of this Agreement. This Agreement shall otherwise be binding upon
and
shall inure to the benefit of the parties and their respective successors and
permitted assigns.
10.3
Notices delivered pursuant to this Agreement shall be in writing, and shall
be
deemed to have been duly given when (a) delivered by hand; (b) sent by facsimile
(with receipt confirmed), provided that a copy is promptly thereafter mailed
by
first-class prepaid certified mail, return receipt request; (c) within two
(2)
business days of being sent, if sent with delivery receipt requested by Express
Mail, Federal Express, other express delivery service or first-class prepaid
certified mail, in each case to the appropriate address and facsimile numbers
set forth below, or to such other address(es) or facsimile number(s) as a party
may designate as to itself by notice to the other party.
12
If
to OMAHA:
|
||||
If
to CDV:
|
CDV
CAPITAL PARTNERS, LLC
|
|||
If
to the Key Employees:
|
Xxxxxx Xxxxxx | |||
Both
with a copy to:
|
Lawyer
|
|||
Law
firm LLC
|
||||
10.4
This
Agreement shall be governed by an interpreted in accordance with the laws of
the
State of New York applicable to contracts made and to be performed in that
state
and without regard to principles of conflicts of laws.
10.5
EACH
PARTY ACKNOWLEDGES THAT, IN EXECUTING THIS AGREEMENT, SUCH PARTY HAS HAD THE
OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL, AND HAS READ AND
UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. THIS AGREEMENT
SHALL NOT BE CONSTRUED AGAINST ANY PARTY BY REASON OF THE DRAFTING OR
PREPARATION HEREOF.
12.7 Further
Assurances. Subject to the terms and conditions herein provided, each of the
parties hereto agrees to use all reasonable efforts to take, or cause to be
taken, all action and to do, or cause to be done, all things reasonably
necessary, proper or advisable on the part of such party, to consummate and
make
effective the transactions contemplated by this Agreement at the earliest
practicable date, including obtaining all required consents, approvals, waivers,
exemptions, amendments and authorizations, giving all notices, and making or
effecting all filings, registrations, applications, designations and
declarations, including, but not limited to, those described in the schedules
to
this Agreement, and each party shall cooperate fully with the other (including
by providing any necessary information) with respect to the
foregoing.
13
IN
WITNESS WHEREOF, this Agreement has been executed all as of the date first
above
written.
OMAHA
HOLDINGS CORP.
|
|||
By:
|
|||
Name:
|
|||
Title:
|
|||
CDV
CAPITAL PARTNERS, LLC.
|
|||
By:
|
|||
Name:
|
|||
Title:
|
|||
NTS-WIT
HOLDINGS, LLC
|
|||
By:
|
|||
Name:
|
|||
Title:
|
14
Annex
A
Key
CDV Employees
1.
Xxxxxx
Xxxxxx
2.
Xxxxxx
X. Xxxxxxx
15
SCHEDULE
A
MANAGEMENT
SERVICES
Company
Management
1.
|
Day-to-Day
management of the OMAHA business and the business of each of the
OMAHA
Subsidiaries.
|
2.
|
Monthly
Financial Reporting delivered to the OMAHA Board/ Annual Audit
delivered
to the OMAHA Board
|
3.
|
Chief
Financial Officer services
|
4.
|
__________
|
Strategic
Planning
1.
|
Development
of product lines for companies
|
2.
|
Marketing
|
3.
|
_________
|
Oversight
and Supervision
1.
|
Advise
on contracts to which OMAHA and/or any of the OMAHA Subsidiaries
are or
are designated to become parties and oversight of OMAHA and the OMAHA
Subsidiaries compliance with the contracts to which it is a
party
|
2.
|
Arrangement/management
of domestic bank facilities
|
3.
|
Assistance
in identifying/retaining key personnel and other service
providers
|
4.
|
Advise
on cash flow management
|
5.
|
__________
|
16
SCHEDULE
B
Only
Xxxxxx Xxxxxx may bind the Company and execute agreements or make other
commitments on behalf of the Company only if (i) such agreement or other
commitment is in the ordinary course of business of the Company, (ii) such
agreement does not require, directly, or contingently, payments to or by the
Company in excess of $5,000 on a monthly basis or $60,000 on an annual basis
and
(ii) such agreement is approved by the Board or the Board Designee.
17
Exhibit
B
Form
of Confidentiality Agreement
18
SCHEDULE
2.1
CDV
KEY
EMPLOYEE AGREEMENT
The
undersigned (each an “Employee”),
for
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, does hereby represent, Company Capital Stock and agree to and
with
Omaha Holdings Corp., a Delaware corporation (“OMAHA”),
that
the Employee shall (1) comply with all legal directives of the Board of
Directors of OMAHA in conformity with the terms and provisions hereof and (b)
as
necessary to discharge his duties to CDV and (2) use his/her best efforts to
promote the interests of OMAHA and the OMAHA Subsidiaries.
__________________________
Name:
19