SCHEDULE A PARAGON CAPITAL LP NEW YORK, NY 10022
SCHEDULE
A
PARAGON
CAPITAL LP
000
XXXX 00XX XXXXXX, 29TH FL
NEW
YORK, NY 10022
(212)
593-1600
December
28, 2007
Xx. Xxxxx
Xxxxxxxxx
2770 So.
Maryland Pkwy.
Las
Vegas, NV 89109
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Re:
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Prevention
Xxxxxxxxx.xxx, Inc.
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Dear Xx.
Xxxxxxxxx:
The
following sets forth the agreement (this “Agreement”) between Paragon Capital,
LP (“Paragon”), Xxxxx Xxxxxxxxx (“Xxxxxxxxx”) and Prevention Xxxxxxxxx.xxx, Inc.
(the “Company”) for the payment of a total of $600,000 to Xxxxxxxxx as set forth
below for the settlement of all outstanding debts and liabilities owed by the
Company and the spin-off of all of the shares of the Company’s subsidiary, Quick
Pay, Inc. to Xxxxxxxxx:
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1.
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In
accordance with the Stock Purchase Agreement dated December 31, 2007,
Paragon has paid a total of $250,000 for a total of 71,428,571 shares of
the Company. The parties agree that of such amount $225,000
shall be paid to Xxxxxxxxx at such time as all of the liabilities, debts,
payables, tax liabilities and any other amounts relating to business of
the Company prior to December 31, 2007, including but not limited to, any
outstanding notes payable owed to Xxxxxxxxx have been satisfied. At such
as Paragon confirms that all liabilities owed prior to December 31, 2007
have been satisfied and the Company in current in its 1934 Exchange Act
reporting requirements the $200,000 will be released. Such payment of
$200,000 and the spin-off of the shares of the Company’s subsidiary, Quick
Pay, Inc. to Xxxxxxxxx shall be in consideration for satisfaction of all
of the issued and outstanding shares of preferred stock, warrants and
notes held by Xxxxxxxxx. The additional $25,000 amount held by the Company
(in excess of the $225,000 to be paid to Xxxxxxxxx) shall be utilized by
the Company for legal fees, audit, filings and other administrative
purposes incurred after December 2007. Such $25,000 shall not be utilized
to pay any liabilities of the Company incurred prior to December 31,
2007.
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2.
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In
addition, Xxxxxxx agrees that the Company will pay an additional
$400,000 to Xxxxxxxxx upon the earlier of (i) eighteen (18)
months from the date hereof; (ii) at such time as the Company has
completed a PIPE financing of at least $2,000,000; or (iii) at such time
as the Company completes a reverse merger
transaction.
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In the
event the Company has to pay any outstanding liabilities or obligations for
debts or lawsuits incurred prior to December 31, 2007, the $400,000 amount will
be reduced by such costs. At such time as Xxxxxxxxx is paid the $400,000 (less
any liabilities, if any) at such date he shall also receive 4,000,000 warrants
exercisable at $.0035. In the event that Xxxxxxxxx is not paid the
$400,000 within eighteen (18) months from the date hereof, Xxxxxxxxx shall have
the option to purchase shares aggregating in value $400,000 at a price of $0.25
per share and shall receive the 4,000,000 warrants as set forth above. Such
shares shall have piggyback registration rights.
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3.
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Notwithstanding
anything set forth in the Stock Purchase Agreement, Xxxxxxxxx shall remain
a consultant to the Company at no consideration for 15 days from the
Closing to resolve any outstanding debts and liabilities of the
Company. During such time, he shall have no authority to act on
behalf of the Company without the consent of the Paragon in any
manner.
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4.
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All
notices, requests and instructions hereunder shall be in writing and
delivered to each party at the addresses set forth above or to such other
address as may from time to time be designated by a party
hereto.
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5.
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In
the event that any term, covenant, condition, or other provision contained
herein is held to be invalid, void or otherwise unenforceable by any court
of competent jurisdiction, the invalidity of any such term, covenant,
condition, provision or agreement shall in no way affect any other term,
covenant, condition or provision or agreement contained herein, which
shall remain in full force and
effect.
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5.
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This
Agreement contains all of the terms agreed upon by the parties with
respect to the subject matter hereof. This Agreement has been
entered into after full
investigation.
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6.
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This
Agreement shall be construed in accordance with and governed by the laws
of the State of New York applicable to agreements made and to be performed
within the State of New York without giving the effect to the conflict of
law principals thereof.
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7.
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No
amendments or additions to this Agreement shall be binding unless in
writing, signed by both parties, except as herein otherwise
provided.
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Please
sign below to acknowledge the acceptance of the terms of this
Agreement.
Very
truly yours,
PARAGON
CAPITAL LP
BY:
_____________________________
XXXX XXXXXXXXX
Managing Member of Paragon Capital
Advisors
LLC,
General Partner of Paragon
Capital LP
ACCEPTED
AND AGREED TO BY:
BY:
_____________________________
XXXXX XXXXXXXXX
ACCEPTED
AND AGREED TO BY:
PREVENTION
XXXXXXXXX.XXX, INC.
BY:
_____________________________
XXXXX XXXXXXXXX
President