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HomeMy WebLinkAboutConsent to Assignment Ratified 05/21/2014AMY NEAVILIN, CPA CLERK OF CIRCUIT COURT 8 COMPTROLLER DATE: June 17, 2014 TO: Peter Horton, Director of Airports ATTN.- Judy Layne, Senior Coordinator Airport Grants and Finance FROM.• Lindsey Ballard, D. C�f At the May 21, 2014, Board of County Commissioner's meeting the Board granted approval and authorized execution of Items: I m C4 Approval of an amendment to the Jet Lag Accessories, LLC lease. Item C6 Ratification of the Consent to Assignment of Lease from Conch Flyer, Inc. to Conch Flyer Concessions, LLC with the exhibits to the document now attached. Enclosed is a duplicate original of the above mentioned for your handling. Should you have any questions, please feel free to contact our office. cc: County Attorney Finance File ✓ 500 Whitehead Street Suite 101, PO Box 1980, Key West, FL 33040 Phone: 305 - 295 -3130 Fax. 305 - 295 -3663 3117 Overseas Highway, Marathon, FL 33050 Phone: 305- 289 -6027 Fax. 305- 289 -6025 88820 Overseas Highway, Plantation Key, FL 33070 Phone: 852 -7145 Fax: 305- 852 -7146 CONSENT TO ASSIGNMENT OF LEASE This Consent to Assignment is entered into this 16th day of April, 2014, by and between Monroe County, a political subdivision of the State of Florida, hereafter County, Conch Flyer Inc, a Florida Corporation, joined by John Richmond (Shareholder), hereafter Assignor, and Conch Flyer Concessions, LLC, hereafter Assignee, the parties agreeing as follows: The County leases retail spaces 216, 219, 221 and 221A located within the passenger ticketing terminal and retail spaces 143, 144 and 144A located within the secure passenger departure area at Key West International Airport through a Contract of Lease dated April 18, 1983, and amended on January 23, 1985, October 7, 1992, April 8, 1998, May 19, 2004 and April 19, 2006. 2. Article XIX of the Original Lease Agreement provides that the Lessee may assign the Lease with written approval of the Board of County Commissioners for Monroe County. 3. Assignor and Assignee have entered into an Agreement for Purchase and Sale of Assets, attached as Exhibit A which contract includes an assignment to Assignee of all the Assignor's right, title and interest in the Lease. 4. In consideration of its consent to the assignment from the Board of County Commissioners for Monroe County, the Assignee agrees to be bound by all the terms and conditions of the original Agreement and Lease Renewals. AMY HEAVILIN CLERK Clerk WITNESSES:) Cin Sawyer BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA ASSIGNEE — CONCH FLYER CONCESSIONS, LLC. WITNESSES: MQ E COU Z NEY R ED M PEDRO ASSISTANT OUNEY Ma i h. .. ASSET PURCHASE AGREEMENT by and among CONCH FLYER, INC. ( "SELLER") JOHN RICHMOND ( "SHAREHOLDER ") and CONCH FLYER CONCESSIONS, LLC ( "PURCHASER") Dated as of March . EXHIBIT A. TO CONSENT TO ASSIGNMENT OF LEASE ASSET PURCHASE AGREEMENT This Asset Purchase Agreement ("Agreement') is made as of this dayofMarch, 2014, by and among Conch Flyer, Inc., a Florida corporation, (hereinafter "Seller "), joined by John Richmond (hereinafter "Shareholder') and Conch Flyer Concessions, LLC, a Florida limited liability company (hereinafter referred to as the "Purchaser ") WHEREAS, the Seller desires to sell to the Purchaser substantially all of the assets, properties and rights owned by the Seller and used by the Seller exclusively in connection with the Seller's food and beverage business (the "Business ") operating at the Key West International Airport (the "Premises'); WHEREAS, the Purchaser is an airport food, beverage and retail operator acquiring substantially all of the assets, properties and rights owned by the Seller and used by the Seller exclusively in connection with the Business, but none of the liabilities of Seller (including liabilities of the Business), except as specifically provided for herein, and the Purchaser desires to purchase such assets, properties and rights, all upon the terms and conditions hereinafter set forth; NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: ARTICLE I DEFINED TERMS Intentionally Omitted ARTICLE 2 SALE OF ASSETS 2.1 Sale of Purchased Assets Subject to the terms and conditions hereinafter stated, the Seller hereby agrees to sell, assign, transfer and deliver to the Purchaser and the Purchaser hereby agrees to purchase and accept from the Seller, effective as of the Closing Date, all right, title and interest of the Seller in and to the Purchased Assets. For all purposes of this Agreement, "Purchased Assets" refers to all of the following items, in each case as in existence on the Closing Date: (a) All transferrable governmental permits related to the Business and/or the Purchased Assets, including, but not limited to, those governmental permits listed on Exhibit A attached hereto; 2 (b) The lease and amendments thereto for the Business (the "Lease') by and between Seller and the Key West International Airport Authority (the "Authority'); (c) Intentionally omitted; (d) All material sales support and promotional materials, advertising materials and production, sales and marketing files solely related to the Business; (e) All supplier lists, production records, sales records, and available credit records maintained solely in connection with the Business, to the extent that such records may be transferred in accordance with applicable law; (f) All intangible assets solely related to the Business, including, but not limited to, oral and written contracts, including, but not limited to, the contracts listed on Exhibit C the ongoing commercial relationships with the customers identified in Exhibit B attached hereto, franchisee rights pursuant to state and/or federal law, including, but not limited to, franchise rights pursuant to Florida laws, licenses and sublicenses, intellectual property, proprietary knowledge, technical information, know -how, trade secrets, specifications for materials, quality control data, processes (whether secret or not), methods and other similar know -how or rights related solely to the Business and effective as of the Closing Date, all common law and registered trademarks of the Seller, including, without limitation, those registered trademarks listed on Exhibit D and any trade names and domain names of the Seller shall be sold, assigned, transferred and delivered by the Seller to Purchaser; (g) All other tangible assets, which assets are used regularly in the conduct of the Business; and (h) The Business as a going concern. 2.2 Excluded Assets Notwithstanding anything to the contrary herein, Seller shall not contribute, convey, assign, or transfer to Purchaser, and Purchaser shall not acquire, any assets (the "Excluded Assets'l of Seller other than those specifically set forth in Section 2.1. Without limiting the generality of the foregoing, unless specifically set forth in Section 2. 1, the following shall constitute Excluded Assets: (i) All cash, cash equivalents and securities of Seller; (ii) All bank and other depository accounts and safe deposit boxes of Seller, (iii) All corporate records and minute books of Seller; and (iv) Refunds of income, franchise, employee and tangible property taxes; and (v) Tax loss carry forwards relating to any period or portion thereof ending on or prior to the Closing Date. 2.3 Retention of Liabilities Seller shall be liable for all of the liabilities of the Business arising and/or accruing prior to the Closing Date including, but not limited, to the following: (i) Claims made by customers for discounts, volume incentives or rebates, tailored customer sponsorships or consumer promotions occurring prior to the Closing Date, whether or not an accrual was maintained by Seller in the ordinary and usual course of the operation of the Business against sales which have occurred prior to the Closing Date. In addition, except as otherwise specifically provided in this Agreement, it is understood that the Seller shall be liable to the providers thereof for all services actually performed and for all deliveries of materials and Inventory actually received, in each case prior to the Closing Date and that the Purchaser shall be liable to the providers thereof for all services actually performed and for all deliveries of materials and inventory actually received, in each case on or after the Closing Date; (ii) Liabilities related to any equitable, contractual, tort or statutory claims against Seller accruing prior to the Closing; (iii) Liabilities related to any claim against Seller for acts and/or omissions which occurred prior to the Closing even if the cause of action arose after Closing; and (iv) Liabilities for taxes accruing prior to the Closing, except as otherwise provided in Section 2.5 hereof. The parties agree that all trade accounts payable which accrue on or prior to the Closing Date shall be the sole responsibility of Seller. Purchaser shall be solely responsible for any and all trade accounts payable, which relate to transactions that arise after the Closing Date. 2.4 Purchase Price The total consideration to be paid by Purchaser for the Purchased Assets shall be the payment by Purchaser of an aggregate amount equal to four million nine hundred thousand dollars ($4,900,000) (the "Purchase Price "), payable as follows: Deposit due within two (2) business days of the approval by the Monroe County Board of Commissioners of the lease assignment from Seller to Purchaser which Deposit will held in escrow by Stones & Cardenas, Attorneys at Law ...... ............................... $150,000.00 Balance to close, by cashier's check or wire transfer, subject to adjustments or proration ........ ............................... $4.750.000.00 TOTAL: $4,900,000.00 4 2.5 Personal Provertv Taxes. (a) All state, county and local ad valorem taxes on personal property shall be apportioned between Purchaser and Seller as of 11:59 p.m. on the Closing Date, computed on the basis of the fiscal year for which the same are levied. In the event the Purchaser shall receive bills after the Closing Date for expenses incurred prior to the Closing Date that were not prorated in accordance with this Section 2.5(a), then Purchaser shall promptly notify the other party as to the amount of the expense subject to proration and the responsible party shall pay its portion of such expense (or, in the event such expense has been paid on behalf of the responsible party, reimburse the other party for its portion of such expenses). (b) Seller shall have the right (at its own expense) to prosecute and continue to prosecute subsequent to the Closing any pending tax certiorari proceedings [for the intangible personal property subject] for the tax year in which the Closing occurs and all prior tax years. Any refunds obtained for such claims for any tax years prior to the tax year in which the Closing occurs, net of the expenses incurred in obtaining such refunds, shall be paid to Seller. 2.6 Internal Revenue Code Allocation The Seller and Purchaser hereby agree that, prior to Closing, they shall agree upon the allocation to be given to the Purchase Price in their respective tax returns reporting the transactions contemplated by this Agreement, in accordance with the provisions of Section 1060 of the Internal Revenue Code and will not take any actions inconsistent with such allocation: Class II $2,000,000 (furniture, fixture and equipment) Class IV & V $2,900,000 (goodwill) 2.7 Prepaid Expenses. The following expenses related to the Business have been prepaid by Seller and shall accrue to the benefit of the Purchaser at closing without proration or refund to Seller: (a) Public`liability insurance for the period September 15, 2013 to September 15, 2014, in the total amount of $13,106.20 (paid 9 -9 -2013 by check no. 3830); and (b) Annual fees for the period April 1, 2014 through March 31, 2015 in the total amount of $1,350.00 (paid 3 -10 -14 by credit card) for renewal of State of Florida 6COP Alcoholic Beverage License No. BEV 54 -00515 (including tobacco sales); and (c) Annual fees for the period September 30, 2013 to October 1, 2014, in the total amount of $646.00 for renewal of State of Florida Food Service License No. SEA 54 -28063 (Conch Flyer); and License No. SEA 54 -01459 (Last Call Beach Bar). (d) Annual business license fees for the period October 1, 2013 to September 30, 2014, in the total amount of $369.75 paid to Monroe County, Florida, and to the City of Key West, Florida, for the Conch Flyer and Last Call Beach Bar. (e) Pinnacle Hospitality Systems POS terminal service contracts: (i) for the period February 1, 2014 to February 1, 2015, in the amount of $1,800.00 (Conch Flyer); and (ii) for the period July 1, 2013 to July 1, 2014, in the amount of $1,400.00 (Last Call Beach Bar). (f) Food, beverage and supplies inventory of no less than Twenty Thousand Dollars and No Cents ($20,000.00). ARTICLE 3 WORKING CAPITAL Intentionally omitted ARTICLE 4 CLOSING 4.1 Time and Place The Closing of the transactions contemplated by this Agreement shall take place on or before April 30 , 2014 at the offices of Vila, Padron & Diaz, P.A., 201 Alhambra Circle, Suite 702, Coral Gables, Florida 33134 unless another date and place is mutually accepted (the actual date of the Closing, the "Closing Date "). If the Closing Date falls on a holiday, Saturday or Sunday, the Closing Date shall be moved to the next business day. 4.2 Deliveries by the Seller At the Closing, the Seller shall deliver (or cause to be delivered) to the Purchaser the following: (a) With respect to the Purchased Assets to be sold by the Seller, a Bill of Sale in the form set forth in Exhibit E attached hereto, that has been executed by the Seller (b) With respect to the transfer of the Seller's rights in the trademarks listed on Exhibit D to Purchaser, a Trademark Assignment in favor Purchaser in substantially the same form as Exhibit F. (c) copies of resolutions duly adopted by the Board of Directors of the Seller and Seller's shareholder(s), authorizing and approving the execution and delivery of this Agreement by Seller and the consummation of the transactions contemplated hereby, certified by an executive officer of Seller; (d) An Assignment of Contracts in substantially the same form as Exhibit G attached hereto; (e) Evidence, in form and substance reasonably satisfactory to Purchaser and its secured lenders, that any Liens encumbering all of any portion of the Purchased Assets have been, or concurrently with the Closing, will be released; and 6 (f) An assignment and assumption of the Lease duly acknowledged and accepted by the Authority and the Monroe County Board of Commissioners wherein the Board acknowledges that Seller has met all of its obligations under the Lease, including capital improvements of $1,000,000. 4.3 Deliveries by Purchaser At the Closing, the Purchaser shall deliver (or cause to be delivered) to the Purchaser the following (a) The entire balance of the Purchase Price made payable to the Seller by wire transfer; and (b) Copies of resolutions duly adopted by the Board of Directors of the Purchaser and Purchaser's shareholder(s) / member(s), authorizing and approving the execution and delivery of this Agreement by Purchaser and the consummation of the transactions contemplated hereby, certified by an executive officer of Purchaser. 4.4 Third Party Consents The Seller agrees to cooperate in good faith with Purchaser's efforts to obtain any third party consents required for the valid assignment and transfer of Seller's rights and interest in any permits from and contracts with any third parties, including, but not limited to, the governmental permits listed on Exhibit A and the contracts listed on Exhibit C. The Purchaser acknowledges and understands that no representations have been made by the Seller as to whether such permits and/or third party contracts are assignable. ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF THE SELLER AND SHAREHOLDER The Seller and the Shareholder hereby represents and warrants to the Purchaser as of the date hereof as follows: 5.1 Corporate Organization and Authority, Owne rship and Other Ventures. (a) Seller is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, with all requisite corporate power and authority to own, lease and operate its properties and assets and to conduct its business as now being conducted. Seller is duly qualified or licensed to do business as a foreign organization in, and is in good standing in, each jurisdiction in which the nature of the Business or the ownership of the Purchased Assets requires it to be so qualified or licensed. (b) All of the issued and outstanding capital stock of each Seller is owned by Shareholder and in the respective amounts set forth on Schedule 1. Seller does not owns of record or beneficially any equity interest in any other Person (other than a Seller), nor is it a partner or member of any partnership, limited liability company, joint venture or similar arrangement or agreement. 7 5.2 Authori . Seller has full power and authority to enter into this Agreement and each of the other agreements, certificates, instruments and other documents to be executed and delivered in connection with this Agreement (collectively the "Transaction Documents ") to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and the other Transaction Documents by Seller and the performance by Seller of its obligations hereunder and thereunder have been duly authorized, and no other proceedings on the part of Seller are necessary to authorize such execution, delivery and performance. This Agreement and the other Transaction Documents to which Seller is a party have been or will be duly and validly executed and delivered by Seller and, assuming the due execution and delivery of this Agreement and the Transaction Documents by Purchaser, constitutes or will constitute valid and binding legal obligations of Seller that is a party thereto, enforceable against Seller in accordance with their respective terms, except to the extent enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights in general and subject to general principles of equity and the discretion of courts in granting equitable remedies. There are no claims pending or, to Seller's knowledge, threatened against Seller which seek to enjoin or rescind the transactions contemplated by this Agreement or otherwise prevent Seller from complying with the terms and provisions of this Agreement. 5.3 No Violation The execution, delivery and performance by Seller of this Agreement and the other Transaction Documents to which it is a party do not and will not, (a) conflict with or result in any violation of, or constitute a breach of any provision of the organizational documents of Seller, (b) except for the authority consent and approvals, conflict with, or result in a violation of or constitute a breach or default under, or permit the termination of, or entitle any other Person to accelerate any obligation, or result in the loss of any benefit, or give rise to the creation of any lien upon any of the Purchased Assets under the terms, conditions or provisions of any license, IP License, the Lease or any Material Contract, (c) violate any applicable law, or (d) constitute an event which, after notice or lapse of time or both, could result in any of the foregoing. 5.4 Financial Statements and Condition Attached hereto as Schedule 2 are true and complete copies of (i) the unaudited, consolidated balance sheets of Seller for the fiscal years ended September 30, 2010, 2011, and 2012 and the related unaudited statements of income for each of the twelve (12) month periods then ended and (ii) the unaudited, consolidated balance sheets of Seller as of September 30, 2012 (collectively, the " "Financial Statements'). The Financial Statements have been prepared in conformity with US GAAP consistently applied, during the periods presented, and are derived from Sellers' books and records (which books and records are accurate and complete), and the Financial Statements present fairly, in all material respects, the financial position and results of operations of Sellers as of the date and for the time periods specified therein. 8 5.4 Absence of Certain Changes or Events (a) Intentionally omitted. (b) Except with respect to matters relating to the proposed sale of the Purchased Assets and the Business and except as contemplated by this Agreement and the Transaction Documents, Seller has conducted the Business in the ordinary course of business and, without limiting the foregoing, no Seller has: (i) Incurred any liabilities, other than liabilities incurred in the ordinary course of business, or discharged or satisfied any lien, or paid any liabilities, other than in the ordinary course of business, or failed to pay or discharge when due any liabilities of which the failure to pay or discharge has caused or is reasonably likely to cause any material damage or risk of material loss to it or any of its assets or properties; (ii) (A) other than in the ordinary course of business, including normal merit and cost of living increases, increased or committed to increase the rate or terms of compensation (including bonus, termination and severance pay) payable or to become payable to any of the hired personnel, or (B) entered into any employment agreement with any hired personnel; (iii) Executed, amended, cancelled or terminated any Material Contract; (iv) Executed any lease (for real or personal property) involving annual payments in excess of $5,000; (v) (A) changed any tax reporting or accounting policies or practices of the Business, including practices with respect to (i) depreciation or amortization polices or rates, or (ii) the payment of accounts payable or the collection of accounts receivable; or (B) settled or compromised any tax liability or made or rescinded any tax election; (vi) (A) created or incurred any indebtedness, (B) assumed, guaranteed, or endorsed the indebtedness of any other person, or (C) canceled any debt owed to it or released any claim possessed by it, other than in the ordinary course of business; (vii) Created or suffered to exist any liens on the Purchased; (viii) Changed in any material respect any of the business policies, including, without limitation, credit, advertising, licensing, investment, marketing, pricing, purchasing, production, personnel, sales, returns, budget and product acquisition policies, related to the Business; (ix) Made or authorized any capital expenditures or commitment for capital expenditures in an amount more than Five Thousand Dollars ($5,000) individually or Ten Thousand Dollars ($10,000) in the aggregate for additions to properties, plant, equipment, or intangible capital assets; (x) Engaged in any transactions with, or entered into any contract with, any affiliates of any Seller or any shareholder or equity holder of any Seller (other than another Seller), except to the extent required by law or any then existing agreements; (xi) Made any loans, advances or capital contributions to, or investments in, any person or paid any fees or expenses to any shareholder, director, officer, partner, or affiliate of any Seller, except with respect to payments to, and reimbursement of, fees and expenses of employees, directors and officers of any Seller in the ordinary course of business; (xii) Granted any license or sublicense of any rights under or with respect to any Company Intellectual Property; (xiii) Instituted or settled any claim that involved more than Fifty Thousand Dollars ($50,000); (xiv) Without limiting the foregoing, entered into any material transaction affecting the Business or any of its assets, operations or financial condition other than transactions in the ordinary course of business; or (xv) Agreed, in writing or orally, to do any of the foregoing. 5.6 Compliance with Laws. The Business is being, and in the past three (3) years has been, conducted in compliance in all material respects with all applicable laws and (b) in the past three (3) years, no Seller has received any notice from any governmental authority or person alleging any noncompliance with any applicable laws. Seller has not received any written, or to Seller's knowledge, oral, claims, notices, orders or directives issued by any governmental authority with respect to the Business or any of the Purchased Assets. Seller has nor any of its officers, executives, representatives, agents or employees (i) has used or is using any corporate funds for any illegal contributions, gifts, entertainment or other unlawful expenses relating to political activity, (ii) has used or is using any corporate funds for any direct or indirect unlawful payments to any foreign or domestic government officials or employees, (iii) has violated or is violating any provision of the United States Foreign Corrupt Practices Act of 1977, as amended or any similar law under any jurisdiction, (iv) has established or maintained, or is maintaining, any unlawful fund of corporate monies or other properties, (v) has made any bribe, unlawful rebate, payoff, influence payment, kickback or other unlawful payment of any nature or (vi) has violated any anti- boycott provisions of any applicable law or other applicable laws relating to exports and embargos. 5.7 Payment of Taxes (a) All taxes due and payable in connection with the operation of the Business or the Purchased Assets, or asserted by any governmental authority to be due and payable in connection with the operation of the Business or the Purchased Assets (whether or not shown on any tax return) have been timely paid other than taxes which are not yet due or owing or that are being contested in good faith by appropriate proceedings. All tax returns required to 10 be filed in connection with the operation of the Business in all jurisdictions in which such tax returns are required to be filed (after giving effect to any duly obtained extensions of time in which to make such filings) have been duly and timely filed and are true and complete. Each Seller has properly and timely withheld and paid all taxes required to have been withheld and paid in connection with amounts paid or owing to any person and has complied with the rules and regulations relating to the withholding and remittance of taxes. (b) There are no tax claims pending or, to Seller's knowledge, threatened in connection with the Business or the Purchased Assets. No Seller has received from any governmental authority (including jurisdictions where such Seller has not filed Tax returns) in the past three (3) years any (i) notice indicating an intent to open an audit or other review, (ii) request for information related to tax matters, or (iii) notice of deficiency or proposed adjustment for any amount of tax proposed, asserted, or assessed by any governmental authority against such Seller. No claim has been made by any governmental authority in the past three (3) years in a jurisdiction where any Seller does not file tax returns that such Seller is or may be subject to taxation by, or required to file any tax return in, that jurisdiction. (c) There are no liens for taxes on any of the Purchased Assets. 5.8 Assets: Condition. (a) Seller has good and marketable title to, or a valid leasehold interest in, the Purchased Assets, free and clear of all liens. (b) The tangible personal property included in the Purchased Assets in good working condition and repair (reasonable wear and tear excepted) and free from material defects. No person other than Seller owns or utilizes any ofthe Purchased Assets or operates the Business. 5.9 Inventory (a) All items of inventory of the Business reflected on the Seller's balance sheet(s) are carried at amounts which reflect valuations pursuant to Sellers' normal inventory valuation policy of stating inventory at cost on a first -in first -out basis. None of the inventory is subject to any write -down or write -off. Subject to the reserves reflected on the balance sheet(s), the inventory is in good and marketable condition, is not obsolete or defective, and is of a quality and quantity useable or saleable in the ordinary course of business, and the quantities of inventory are sufficient, consistent with the past practices of the Business, to operate the Business. All inventory is located at or on the Premises. (b) To Seller's knowledge, all of the inventory is, to the extent applicable: (i) in compliance in all material respects with (A) the Federal Food, Drug, and Cosmetic Act (the "FDA "), all acts amending or supplementing the FDA and any other Applicable Laws, and (B) the pure food and drug laws of Florida, (ii) will not be adulterated or misbranded within the meaning of the FDA or such state laws, (iii) will not be prohibited from being introduced into interstate commerce in the United States under the provisions of the FDA, and (iv) will not I contain a hazardous substance or a banned substance within the meaning of the FDA or such state laws. 5.10 Brokers' Fees and Commissions Neither Seller nor any other person by or on behalf of any Seller has engaged any investment banker, broker or finder in connection with the transactions contemplated hereby. 5.11 Intellectual Property Schedule 3 sets forth a complete and correct list of registered intellectual property and pending applications for registration of intellectual property, material unregistered marks, registered copyrights and Internet domain names (the "Company Intellectual Property' ). All fees due as of the date hereof associated with maintaining any Company Intellectual Property have been paid in full in a timely manner to the proper governmental authority, and all actions required as of the date hereof associated with maintaining any Company Intellectual Property have been taken, and no such fees are due, and no such actions are required, within the three (3) month period after the Closing Date. (a) Seller owns and possesses all right, title and interest to, or has a valid and enforceable right or license to use, all of the Company Intellectual Property; (b) Except pursuant to the terms of an IP License, no Seller pays or receives any royalty from anyone under any of the Company Intellectual Property, nor have any of them licensed anyone to use any of the Company Intellectual Property; 5.12 Contracts Schedule 4 lists all of the following contracts to which any Seller is a party or is bound and that relate to the Business (collectively, "Material Contracts"): (a) Any contract pursuant to which Seller (a) grants to any third party any right, license or right to license, option or right of first refusal or negotiation with respect to any Company Intellectual Property or (b) except with respect to off - the -shelf software, receives from a third party any right, license or right to license, option or right of first refusal or negotiation with respect to Company Intellectual Property, including, without limitation, the IP Licenses; (b) Any contract that involves expenditures (or commitments to make expenditures) of the Business in excess of $5,000 annually, including, without limitation, contracts for the purchase of goods or services by Seller; (c) Any contract that involves a sharing of profits, losses, costs, or liabilities by the Business with any other person; (d) Any contract that contains covenants that in any way purport to restrict the business activity of the Business (or any part thereof) or limit the freedom of the Business (or any part thereof) to engage in any line of business or to compete with any person; 12 (e) Any contract for capital expenditures in excess of $5,000 annually; (f) Any contract which involves supply or requirements obligations; (g) Any contract for which indemnification obligations exist on the part of any Seller (other than customer contracts in the ordinary course of business and EP Licenses); (h) Any contract which provides for warranties or return of product (other than in the ordinary course of business), rebates, sharing of fees, grant of discounts, "most favored nations clauses ", grant of exclusivity or similar arrangements; (i) Any contract which provides for consignment or similar arrangement; 0) Any contracts relating to Indebtedness or to the granting by Seller of a Lien on any of the Purchased Assets, or any guaranty by any Seller of any obligation in respect of borrowed money or otherwise; (k) Any employment, confidentiality and non- competition contracts with any employee, officer, consultant, or management advisor which involve annual payments by any Seller in excess of $5,000; (1) Any contracts pursuant to which Seller is a lessor or a lessee of any personal property, or holds or operates any personal property owned by another Person which involves annual payments by Seller in excess of $1,000; (m) Any contracts providing for severance, retention, change in control or other similar payments; (n) Contracts with any current or former officer, director, shareholder or affiliate of Seller, or (o) Any contract that is an amendment, supplement or modification (whether oral or written) in respect of any of the foregoing. Complete copies of each Material Contract required to be identified on Schedule 4, including amendments, waivers, or other changes thereto, have been made available to Buyer. In the case of each oral Material Contract, Schedule 4 also includes a brief description of such Material Contract. All Material Contracts are in full force and effect and are legal, valid and binding upon Seller which is a party thereto, and, to Seller's knowledge, except as set forth in Schedule 4. enforceable against the other parties thereto in accordance with their respective terms. Except as set forth in Schedule 4. no Seller is in material breach or default under any Material Contract to which it is a party. Except as set forth in Schedule 4. to Seller's knowledge, no other party to any Material Contract is in default thereunder, nor does any condition exist or has any event occurred which, with notice or lapse of time or both, would constitute a material breach or default by Seller under any Material Contract to which it is a 13 party, or, to the knowledge of Seller, by any other party thereunder. Seller has not received any notice of any Person's intent to terminate or materially amend any Material Contract. 5.13 Litigation Except as set forth in Schedule 5 , there are no, and in the past three (3) years there have been no, claims, actions, demands, audits, investigations, arbitrations, judgments, suits or proceedings, of any kind whatsoever, at law or in equity (collectively, "Claims ") pending or, to Seller's knowledge, threatened, by or against any Seller involving, affecting or relating to the Business or the Purchased Assets, which involve or involved more than Five Thousand Dollars ($5,000). Seller nor any of the Purchased Assets is subject to any Judgment. 5.14 Licenses Seller possesses all of the material licenses, permits, quotas, authorizations, franchises, registrations, consents, waivers, variances, certifications and other approvals from any governmental authority ( "Licenses') necessary for the conduct of the Business, which Licenses are listed in Schedule 6 . The Business is and in the past three (3) years has been in compliance in all material respects with the Licenses. All Licenses are currently in full force and effect, and except as set forth on Schedule 6, none of the Licenses will lapse, terminate, expire or otherwise be impaired as a result of the consummation of the transactions contemplated hereby. Seller has not received during the past three years any written notice alleging any noncompliance with any License, except as set forth in Schedule 6. 5.15 Emolovee PI (a) Identification. Set forth in Schedule 7 is a true and complete list of all (i) employee benefit plans (as defined in Section 3(3) of ERISA) and (ii) bonus (including transaction bonus), incentive compensation, equity or equity- based, stock appreciation right, phantom stock, restricted stock, restricted stock unit, performance stock, performance stock unit, employee stock ownership, stock purchase, equity or equity- based, deferred compensation, change in control, employment, noncompetition, nondisclosure, vacation, holiday, sick leave, retention, severance, retirement, savings, pension, money purchase, target benefit, cash balance, excess benefit, supplemental executive retirement, profit sharing, life insurance, cafeteria (Section 125), adoption assistance, dependent care assistance, voluntary employees beneficiary, multiple employer welfare, medical, dental, vision, severance, change in control, multiple employer welfare, supplemental unemployment compensation, accident, disability, fringe benefit, welfare benefit, paid time off, employee loan, and salary continuation plans, programs, policies, agreements, arrangements, commitments, practices, contracts, associations and understandings (written or unwritten) including without limitation, any trust, escrow or other agreement related thereto and any similar plans, programs, policies, agreements, arrangements, commitments, practices, contracts and understandings (written or unwritten), in each of the foregoing cases which cover, are maintained for the benefit of, or relate to any or all of the hired personnel (the "Employee Planet. (b) Documentation. True and complete copies of the following documents with respect to each Employee Plan have been provided to Buyer, as applicable: (i) the plans and related trust 14 documents, insurance contracts or other funding arrangements and all amendments thereto, (ii) the Forms 5500s and all schedules thereto for the most recent two (2) years, (iii) the most recent valuation report, including any FAS 106 report; (iv) the most recent IRS determination or opinion letter, (v) the most recent summary plan description and subsequent summaries of material modifications, (vi) the most recent financial statements, and (vii) written summaries of all material terms of unwritten Employee Plans. 5.16 Labor and Employee Matters (a) Seller is not a party to, or otherwise bound by, a collective bargaining agreement (or any other agreement with any labor organization), which covers any of the Hired Personnel, except to the extent constituting the Excluded Assets. During the past three years, the Business has not experienced any material work stoppage, labor dispute, grievance, slowdown, lockout or strike, and to Sellers' knowledge, none has been threatened against Seller. Except as set forth in Schedule 8 there is no, and in the past three (3) years there has been no, controversies, grievances or claims, or to Sellers' knowledge, threatened controversies, grievances or claims, by any employee or former employee of any Seller with respect to his or her employment, termination of employment, compensation or benefits (other than routine claims for benefits under the Employee Plans in the ordinary course of business). (b) Except as set forth in Schedule 9. Seller is not currently a party to, nor bound by any Contract for the employment of any hired personnel which involves annual payments (salary and bonus) in excess of $5,000. (c) Schedule 10 sets forth a list of all employees of Seller who perform services exclusively for the Business as of March 15, 2014. (d) Seller has provided Purchaser with access to copies of all manuals, written policies or similar documents of any Seller which are material to Business and the Purchased Assets regarding compensation, benefits, perquisites, and personnel matters (except to the extent constituting part of Excluded Assets hereunder). (e) Seller currently has completed and maintains in its files Form 1 -9s with respect to each of its employees that it is required by applicable law to have I -9s for. In the past three (3) years, no Seller has received any notice, judgment or other communication from any governmental authority that any of its employees has a name or social security number that does not match the name or Social Security Number maintained by such governmental authority. All employees of Seller working in the United States are legally authorized to work in the United States. 5.17 Hazardous Substances (a) The Business is in compliance in all material respects with all environmental laws, including, without limitation, laws relating to emissions, discharges, releases or threatened releases of toxic or hazardous substances or hazardous wastes or other pollutants, contaminants, petroleum products or chemicals, including, without limitation, gasoline, diesel lE fuel or other petroleum hydrocarbons, polychlorinated biphenyls or asbestos (collectively, "Hazardous Substances'l into the environment (including, without limitation, ambient air, surface water, ground water, land surface or sub surface strata) or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Substances. (b) To Seller's knowledge, there are no polychlorinated biphenyls, urea formaldehyde or asbestos generated, treated, stored, disposed of, or otherwise deposited in, incorporated into or located on the premises where the Business is operated (including the buildings and improvements a part thereof). (c) All Hazardous Substances not in current, usable inventory has been removed from the Business premises and disposed of in compliance with Applicable Laws; (d) In the past five (5) years, Seller has not received, any notice, order or other communication from any governmental authority, citizens' group, employee or other person claiming that it is or may be liable for personal injury or property damage related to any release, treatment, storage or disposal of, or exposure to, any Hazardous Substance. 5.18 Sufficiency of Assets Except for the Excluded Assets and the products and services which Seller obtains from third parties as disclosed herein, the Purchased Assets constitute all of the assets used by Sellers to conduct the Business as is presently conducted. All of the equipment is located at the Premises. 5.19 Supplie Schedule 11 sets forth the five (5) largest suppliers in terms of purchases (collectively, "Material Suppliers'l of Business on a consolidated basis, in each case for the twelve (12) months ended March 15, 2014. To Seller's knowledge, there will be no material adverse change in a relationship with any Material Supplier as a result of the transactions contemplated by this Agreement. 5.20 Insurance Schedule 12 contains an accurate and complete list of all material insurance policies owned, held by or applicable to Seller or the Business (including its respective assets or business). All such policies are in full force and effect, all premiums that are due and payable with respect thereto have been paid, and no written notice of denial of coverage, cancellation or termination has been received with respect to such policies. Following the Closing, all such material insurance policies will remain in full force and effect with respect to periods prior to Closing. To Sellers' knowledge, no event has occurred, including, without limitation, the failure by any Seller to give any notice or information or any Seller giving any inaccurate or erroneous notice or information, which limits or impairs the rights of any Seller under any such material insurance policies. 521 Indebtedness Schedule 13 sets forth a listing of all indebtedness of Seller and the contracts and instruments under which such indebtedness exists. 16 5.22 Related Party Transactions No employee, officer, director, or shareholder or equity holder of any Seller, any member of his or her immediate family or any beneficiary of any shareholder or equity holder of any Seller (each a "Related Person "): (i) owes any amount to any Seller nor does any Seller owe any amount to, or has any Seller committed to make any loan or extend or guarantee credit to or for the benefit of any Related Person (other than any participant loans under any Employee Plan and any payments to, and reimbursement of fees and expenses of, employees, directors and officers of such Seller in the ordinary course of business); (ii) owns any property or right, tangible or intangible, that is used by any Seller in the operation of the Business; or (iii) has any claim or cause of action against any Seller relating to the Business, other than claims for accrued compensation or benefits arising in the ordinary course of employment or under any Employee Plans. ARTICLE 6 COVENANTS OF SELLER 6.1. Covenants of Seller During the period prior to the Closing, the Seller will comply with all covenants of Sections 6.1(a) and (b), and during the period at and after the Closing, the Seller will comply with the covenants of Section 6.2 (a) and (b), except to the extent the Purchaser may otherwise consent in writing. (a) Conduct of Business From the date of this Agreement until Closing and except for the transactions specifically contemplated by this Agreement, Seller shall, with respect to the Business: (i) (A) conduct the Business in the ordinary course of business, (B) use reasonable efforts to retain in its employ all of its key and other employees and (C) use reasonable efforts to preserve its goodwill and relationships with suppliers, customers, brokers and others having business relations; (ii) not: (A) except in the ordinary course of business, sell, assign, lease or otherwise transfer or dispose of any of the Purchased Assets, (B) except in the ordinary course of business, forgive or compromise any obligations of others or claims against others, or (C) mortgage, pledge or subject any of the Purchased Assets to a lien; (iii) (A) not amend, renew, terminate or enter into or become a party to any contract or agreement under which the value of services to be performed by or for it or the cost of goods and services to be sold to or by it under any one such contract or agreement may exceed $1,000; (B) not enter into or become a party to any loan, letter of credit or other debt agreement (other than extensions of credit in relation to purchases of inventory in the ordinary course of business consistent with prior practices), or incur, assume or guarantee any obligation for borrowed money, other than any such which are not to be assumed by Purchaser and which do not impose Liens on any of the Purchased Assets; 17 (iv) not make any alteration in the manner of keeping its books, accounts or records or in the accounting practices therein reflected, unless required by generally accepted accounting principles; and (v) not make any change in the Business, or enter into any transaction, which is not in the ordinary course of business. (b) Access and Information Prior to Closing Seller and its directors, officers, employees and agents shall cooperate fully with Purchaser and its directors, officers, employees and agents to ensure the prompt and complete availability of all records and information of Seller (including any periodic internal financial statements prepared in the ordinary course) that Purchaser may reasonably request. Seller, subject to existing confidentiality agreements, shall, upon the request of the Purchaser, provide written authorizations to all parties having information regarding Seller, authorizing them to release such information to Purchaser for review and/or copying, and requesting that they cooperate fully with Purchaser. 6.2 Post - Closing Requirement The Seller agrees that it shall take or shall cause to be taken, the following post - closing: (a) Continuing Assistance Subsequent to the execution of this Agreement and the Closing, Seller will provide to Purchaser whatever reasonable assistance the Purchaser reasonably requests in connection with the transfer of ownership and control of the Purchased Assets and the consummation of the transactions contemplated by this Agreement. After the Closing, the Seller will provide such cooperation as Purchaser may request in connection with any proceeding, investigation, examination, audit, action or other similar matter involving such Purchaser which may require information relating to the Business and its operations prior to the Closing. Seller will not, and will cause its affiliates not to, dispose of, alter or destroy any books and records and other materials for a period of three (3) years after the Closing. Seller will provide Purchaser with six (60) days prior written notice of any disposition, alteration or destruction of such records. Within 60 days following the receipt of such notice by Purchaser, Purchaser may elect, at its expense, to examine, duplicate or repossess such books and records and similar material. (b) Internet Domain Names Within twenty (20) days after the Closing, the Seller shall take (or cause to be taken) whatever action is necessary to properly and validly assign to the Purchaser any and all rights, title and interests the Seller may have in any domain names, or to otherwise assist the Purchaser in obtaining the exclusive ownership interest in such domain names. 18 ARTICLE 7 SURVIVAL; INDEMNIFICATION BY SELLER AND SHAREHOLDER 7.1 Survival of Representations and Warranties No party or other person entitled to indemnification under this Article 7 shall commence any suit or proceeding alleging an indemnity claim ( "Indemnity Claim'j under Section 7.2 or Section 7.3 below due to a breach of any representation or warranty in this Agreement after the twelve -month anniversary of the Closing Date, except (i) that there shall be no limits on the time for making an indemnity claim relating to a breach of the representations and/or warranties relating to a party's authority, the Assets, and/or broker's fees and commissions, (ii) an indemnity claim relating to a breach of the representations and warranties relating to the payment of taxes] and Hazardous Substances may be made until the date that is ninety days after the expiration ofthe applicable statute of limitations period, and (iii) insofar as any party or other person entitled to indemnification under this Article 7 shall have asserted in writing a specific Indemnity Claim prior to the expiration of such twelve -month period (or longer period as described in this Section 7. 1), in which event the representations or warranties alleged to have been breached in such Indemnity Claim shall continue in effect and remain a basis for indemnity solely with respect to each such asserted claim until such claim is finally resolved. 7.2 Seller and Shareholder's Indemnification_ Subject to the limitations contained in this Article 7. Seller and Shareholder shall jointly and severally indemnify, defend and hold harmless Purchaser and its affiliates and their respective officers, directors, agents, affiliates, successors and assigns (collectively, "Buyer Indemnified Parties'), from and against and in respect of any and all demands, claims, causes of action, administrative orders and notices, losses, costs, fines, liabilities, penalties, damages, judgments, deficiencies, awards and expenses (including, without limitation, reasonable attorney fees) (hereinafter collectively called "Losses') resulting from, in connection with or arising out of, or any Claim relating to: (a) Any inaccuracy or breach of any representation or warranty made by Seller and/or Shareholder in this Agreement (provided, that for purposes of calculating Losses hereunder, any materiality, Material Adverse Effect or similar qualification in such representations and warranties shall be disregarded); and (b) The failure of Seller or Shareholder to comply with any of the covenants in this Agreement. 7.3 Purchaser's Indemnification Subject to the limitations contained in this Article 7 Purchaser shall indemnify, defend and hold harmless Seller and its affiliates and their respective officers, directors, agents, affiliates, successors and assigns (collectively, "Seller Indemnified Parties "), from and against and in respect of any and all demands, claims, causes of action, administrative orders and notices, losses, costs, fines, liabilities, penalties, damages, judgments, deficiencies, awards and expenses (including, without limitation, reasonable attorney fees) (hereinafter collectively called "Losses ") resulting from, in connection with or arising out of, or any claim relating to: 19 (a) Any inaccuracy or breach of any representation or warranty made by Purchaser in this Agreement (provided, that for purposes of calculating Losses hereunder, any materiality, Material Adverse Effect or similar qualification in such representations and warranties shall be disregarded); and (b) The failure of Purchaser to comply with any of the covenants in this Agreement; 7.4 Indemnification Procedures In the event that a third party files a lawsuit, enforcement action or other proceeding against a party entitled to indemnification under this Article 7 (an "Indemnified Parry") or the Indemnified Party receives notice of, or becomes aware of a condition or event which otherwise entitles such party to the benefit of any indemnity hereunder in connection with a claim by a third party (a "Third Party Claim'), the Indemnified Party shall give written notice thereof (the "Claim Notice ") promptly to each party obligated to provide indemnification pursuant to this Article 7 (an "Indemnifying Party"). All claims for indemnification by the Indemnified Party shall be bona fide. The Claim Notice shall describe in reasonable detail the nature of the claim, including an estimate, if practicable, of the amount of damages that have been or may be suffered or incurred by the Indemnified Party attributable to such claim and the basis of the Indemnified Party's request for indemnification under this Agreement. Notwithstanding the foregoing, failure by an Indemnified Party to provide notice on a timely basis of a Third Party Claim shall not relieve the Indemnifying Party of its obligations hereunder, unless, and then solely to the extent that, the Indemnifying Party is prejudiced thereby. (a) Conduct of Defense The Indemnifying Party shall have the right, upon written notice to the Indemnified Party (the "Defense Notice") within fifteen Business Days of its receipt from the Indemnified Party of the Claim Notice, to conduct at its expense the defense against such Third Party Claim in its own name, or, if necessary, in the name of the Indemnified Party; provided, however, that if the Indemnifying Party is Sellers and (A) the potential aggregate amount of a Third Party Clain, together with all other pending claims hereunder, is or is reasonably expected to be less than the Basket, or (B) Seller and/or Shareholder has failed to acknowledge in writing their unconditional indemnification obligation with respect to such Third Party Claim, or (C) such claim seeks injunctive or other equitable relief involving Buyer, any of its Affiliates or the Business, Seller and/or Shareholder shall not be entitled to conduct the defense against such claim. When the Indemnifying Party conducts the defense, the Indemnified Party shall have the right to approve the defense counsel representing the Indemnifying Party in such defense, which approval shall not be unreasonably withheld or delayed, and in the event the Indemnifying Party and the Indemnified Party cannot agree upon such counsel within ten Business Days after the Defense Notice is provided, then the Indemnifying Party shall propose an alternate defense counsel, which shall be subject again to the Indemnified Party's approval, which approval shall not be unreasonably withheld or delayed. (b) Conduct by Indemnified Party In the event that the Indemnifying Party shall fail to give the Defense Notice within the time and as prescribed by Section 7.4, or if the Indemnifying Party does not have the right to defend such Third Party Clain pursuant to 20 Section 7.4, then in either such event, the Indemnified Party shall have the sole right and authority to conduct such defense. Failure at any time of the Indemnifying Party to diligently defend a Third Party Claim as required herein shall entitle the Indemnified Party to assume the defense and settlement of such Third Party Claim as if the Indemnifying Party had never elected to do so as provided in this Section. (c) Cooperation In the event that the Indemnifying Party does deliver a Defense Notice and thereby elects to conduct the defense of such Third Party Claim in accordance with Section 7.4, the Indemnified Party will cooperate with and make available to the Indemnifying Party such assistance, personnel, witnesses and materials as the Indemnifying Party may reasonably request, all at the expense of the Indemnifying Party. Regardless of which party defends such Third Party Claim, the other party shall have the right at its expense to participate in the defense assisted by counsel of its own choosing; provided, that should the Indemnified Party's counsel reasonably conclude that a conflict or potential conflict exists between the Indemnifying Party and the Indemnified Party, the costs of such counsel may be an indemnified Loss pursuant to this Article 7. Each Indemnified Party shall reasonably consult and cooperate with each Indemnifying Party with a view towards mitigating Losses, in connection with claims for which a party seeks indemnification under this Article 7. (d) Settlements Without the prior written consent of the Indemnified Party (which shall not be unreasonably withheld or delayed), the Indemnifying Party (or any insurance carrier defending such Third Party Claim on the Indemnifying Party's behalf) will not enter into any settlement of any Third Party Claim if, pursuant to or as a result of such settlement, such settlement (i) could lead to liability or create any financial or other obligation on the part of the Indemnified Party for which the Indemnified Party is not entitled to indemnification hereunder, (ii) does not release the Indemnified Party from any liability in connection with such Third -Party Claim without cost or expense and without any admission of violation, injunction or agreement to take or restrain from taking any action; and (iii) does not imposes any expense, obligation or restriction upon the Indemnified Party or requires the Indemnified Party to admit or acknowledge to any fact or event, including any violation of Law. If the Indemnifying Party receives a firm offer to settle a Third Party Claim, which offer the Indemnifying Party is permitted to settle under this Section 7.4. and the Indemnifying Party desires to accept such offer, the Indemnifying Party will give written notice to the Indemnified Party to that effect. If the Indemnified Party objects to such firm offer within ten days after its receipt of such notice, the Indemnified Party may continue to contest or defend such Third Party Claim and, in such event, the maximum liability of the Indemnifying Party as to such Third Party Claim will not exceed the amount of such settlement offer, plus costs and expenses paid or incurred by the Indemnified Party up to the point such notice had been delivered. (e) Binding Obligations Any judgment entered or settlement agreed upon in the manner provided herein shall be binding upon the Indemnifying Party, and shall be conclusively deemed to be an obligation with respect to which the Indemnified Party is entitled to prompt indemnification hereunder, subject to the Indemnifying Party's right to appeal an appealable judgment or order. 21 w 7.5 Nature of Other Liabilities In the event any Indemnified Party should have a claim against any Indemnifying Party hereunder which does not involve a Third Party Claim, the Indemnified Party shall transmit to the Indemnifying Party a written notice (the "Indemnity Notice'l describing in reasonable detail the nature of the claim and the basis of the Indemnified Party's request for indemnification under this Agreement. If the Indemnifying Party does not notify the Indemnified Party within 45 days from its receipt of the Indemnity Notice that the Indemnifying Parry disputes such claim (a "Dispute Notice'), the claim specified by the Indemnified Party in the Indemnity Notice shall, subject to the further provisions of this Article 7, be deemed a liability of the Indemnifying Party under this Article 7. 7.6 Exclusive Remedy Except with respect to claims or causes of action arising from criminal activity, intentional misrepresentation or fraud or claims of or causes of action arising for which the sole remedy sought is equitable relief, the rights and obligations of the parties under this Article VII are the exclusive rights and obligations of the parties with respect to any breach of any representation, warranty, covenant or agreement in this Agreement or any Transaction Document and shall be in lieu of any other rights or remedies to which the party entitled to indemnification hereunder would otherwise be entitled as a result of such breach. ARTICLE 8 TERMINATION 8.1 Termination Purchaser may terminate the Agreement at any time prior to Closing if, after notice of breach and opportunity to cure, Seller breaches any warranty or covenant identified in Article 5 and/or Article 6 contained herein. 8.2 Effect of Termination If this Agreement is validly terminated pursuant to Section 8.1 hereof, this Agreement will thereupon become null and void, and there will be no further liability or obligation on the part of the parties hereto (or any of their respective affiliates) in connection with this Agreement except with respect to a failure by a Party to close after all conditions to closing for his, her or its benefit have been satisfied or waived. 8.3 Termination by Seller. In the event of Purchaser's breach of its obligation to Seller hereunder, including but not limited to Purchaser's failure to close in accordance with Article 4 hereof, then Seller shall be entitled to terminate this Agreement. ARTICLE 9 NOTICES 9.1 Notices All notices and other communications under this Agreement must be in writing and will be deemed to have been duly given if delivered personally against written receipt, sent by confirmed facsimile, sent by certified mail, return receipt requested, or sent by a nationally recognized overnight courier service to the parties at the following addresses: 22 M +, If to Seller to: John Richmond 20 Calle Uno Key West, FL 33040 With Copy to: Susan M. Cardenas, Esq. Stones & Cardenas 221 Simonton Street Key West, FL 33040 If to the Purchaser to: Oscar J. Vila, III Vila, Padron & Diaz, P.A. 201 Alhambra Circle, Ste. 702 Coral Gables, FL 33134 Fax: (305) 461 -0261 All notices and other communications required or permitted under this Agreement that are addressed and delivered as provided in this Article 9 will, if delivered personally, be deemed given when delivered, against written receipt; will, if delivered by facsimile, be deemed delivered when confirmed; will, if delivered by mail, be deemed delivered four (4) days after deposit into the mail, and will, if sent by overnight courier, be deemed given when received. Any party from time to time may change its address for the purpose of notices to that party by giving a similar notice specifying a new address, but no such notice will be deemed to have been given until it is actually received by the party sought to be charged with the contents thereof. ARTICLE 10 NUSCELLANEOUS 10. l Entire Agreement This Agreement embodies the entire agreement and understanding between the Seller and the Purchaser and supersedes all prior agreements, understandings and documents relating to the subject matter hereof. This Agreement may not be modified or amended or any term or provision hereof waived or discharged except in writing signed by the party against whom such amendment, modification, waiver or discharge is sought to be enforced. 10.2 Expenses Except as otherwise provided in this Agreement, the Seller and the Purchaser shall each pay their own expenses relating to or arising out of this transaction, 23 It, including but not limited to legal and accounting expenses incident to the negotiation, investigation and execution of this Agreement and the consummation of the transactions contemplated hereby and whether or not such transactions shall be consummated. 10.3 Waiver Except as otherwise provided in this Agreement, any failure or delay on the part of any party in exercising any power or right hereunder shall not operate as a waiver thereof, nor shall any single or partial exercise of any such right or power preclude any other or further exercise thereof or the exercise of any other right or power hereunder or otherwise available at law or in equity. 10.4 CounterQarts This Agreement may be executed in several counterparts, including facsimiles, each of which shall be deemed an original, but all of which counterparts collectively shall constitute one instrument. 10.5 No Third Party Beneficiary The terms and provisions of this Agreement are intended solely for the benefit of the parties hereto, and their respective successors, or permitted assigns, and it is not the intention of the parties to confer third -party beneficiary rights upon any other person. 10.6 Governing Law/Forum Selection This Agreement shall be governed by the laws of the State of Florida as such laws apply to transactions made and fully performed within that state, without reference to conflicts of law principles. Purchaser and Seller agree that any claims or defenses relating in any manner to this Agreement shall be filed and litigated in a Federal or State of Florida Court within Miami -Dade County, Florida. 10.7 Binding Effect, All of the terms of this Agreement shall be binding upon each party's successors and permitted assigns and shall inure to the benefit of and be enforceable by such successors and permitted assignees; provided, however, that no party may assign this Agreement, other than to one of their respective wholly -owned subsidiaries (in which case, however, the assigning party shall remain bound under this Agreement as a primary obligor with respect to such subsidiary's obligations), without the prior written consent of (i) the Seller with respect to an assignment by a Purchaser, or (ii) the Purchaser with respect to an assignment by the Seller10.8. Headings. Gender, etc. The headings used in this Agreement have been inserted for convenience and do not constitute matter to be construed or interpreted in connection with this Agreement. Unless the context of this Agreement otherwise requires, (a) words of any gender are deemed to include each other gender, (b) the terms "hereof," "herein," "hereby," "hereto," and derivative or similar words refer to this entire Agreement; (c) the terms "Article" or "Section" refer to the specified Article or Section of this Agreement; (d) all references to "dollars" or "S" refer to currency of the United States of America; and (e) the tern "including" is deemed to mean "including, without limitation." 10.8 Headings. Gender, etc. The headings used in this Agreement have been inserted for convenience and do not constitute matter to be construed or interpreted in connection'with 24 41.e , this Agreement. Unless the context of this Agreement otherwise requires, (a) words of any gender are deemed to include each other gender; (b) the terms "hereof," "herein," "hereby," "hereto," and derivative or similar words refer to this entire Agreement; (c) the terms "Article" or "Section" refer to the specified Article or Section of this Agreement; (d) all references to "dollars" or I" refer to currency of the United States of America; and (e) the term "including" is deemed to mean "including, without limitation." 10.9. Invalid Provisions If any provision of this Agreement is held to be illegal, invalid, or unenforceable under any present or future Law, and if the rights or obligations of the Seller or the Purchaser under this Agreement will not be materially and adversely affected thereby, (a) such provision will be fully severable; (b) this Agreement will be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part hereof, (c) the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid, or unenforceable provision or by its severance herefrom; and (d) in lieu of such illegal, invalid, or unenforceable provision, there will be added automatically as a part of this Agreement a legal, valid, and enforceable provision as similar in terns to such illegal, invalid, or unenforceable provision as may be possible. 10.10 Schedules. The Schedules referred to herein are attached hereto and incorporated by this reference. Disclosures included in any Schedule shall be considered disclosures for all Schedules. 10.11 Timing Time is of the essence in meeting the obligations and responsibilities of this Agreement. 10.12. Mutual Product The parties acknowledge that this Agreement is a product of negotiation between sophisticated parties and individuals. Accordingly, the interpretation of any ambiguity in language in this Agreement shall not be construed against any party. SIGNATURE PAGE TO FOLLOW 25 4 4 Y _ • 1 IN WITNESS WHEREOF, the parties hereto have duly executed this Aweemeat as of the date first above written. SELLER: CONCH FLYER, INC., a Florida corporation By: Name: John Richmond Tithe: President SHAREHOLDER John Richmond Purchmaer: CON C NCESSIONS, LLC By: Na e• 4zS Title: MA- -3 6 &" Q-aC ro 26 a,, N WITNESS WHEREOF. the parties hereto have duly executed this Agreement as of the date first above written. SELLER: CONCH FLY�R, INC,{a Florida a corporation iV ire: S9tin Richmond `Title: President SHAREHOLI� 'LR: JyhiyRichmoi - Purchaser: MASTER CONCESSIONAIR, LLC BY Name: Title: 26 EXEMB1T A GOVERNMENTAL PERMITS None 27 CUSTOMER LIST None 28 X(� �� V-0 MATERIAL CONTRACTS (See attached documents) 29 MATERIAL, CONTRACTS Direct TV: Separate Contracts for Conch Flyer Restaurant and Last Call Beach Bar Includes Basic Commercial Subscription only with SEVA Entertainment Inc. *Excluded Account: John Richmond - Personal 20 Calle Uno, Key West to be transferred before closing AT &T Wireless: Current cellular service for the following: Lynn Cauger 305- 745 -5023 Business Cellular Service William Cauger 305 -509 -1271 Business Cellular Service *Excluded: John Richmond 305 -509 -1245 to be transferred prior to closing *Excluded: Nancy Richmond 305- 393 -1515 to be transferred prior to closing COMCAST: Business Internet, Telephone, and Basic Television Package *Excluded: Service for John Richmond at 20 Calle Uno to be transferred prior to closing ALL KEY GAS: Service providing LP Gas for both locations FLORIDA DISPOSAL: Service for haul -away of cooking oil for rebate MONEY TREE ATM: Contract for service of ATM machines in Key West International Airport *Excluded: ATM machine located in the Arrival Area on Monroe County, Florida Property YELLOW PAGES ADVERTISING: YP yellow Pages Advertising _ INSURANCE *All insurance policies provided with due diligence materials PINNACLE HOSPITALITY SYSTEMS: Prepaid service contract for point of sales terminal service EXEI[BIT D None registered 30 ExMBIT E BILL OF SALE BILL OF SALE For valuable consideration, receipt of which is aclmowledged, ( "Sailer'), hereby sells, assigns transfers and delivers to hereto and made a pert hereof ( "Buyer"), all of the personal property described in Exhibit A attached Sella warrants to Buyer that Seller has good title to all such personal property, free and clear of all liens, encumbrances, security interests and adverse claims of any kind or nature whatsoever, and Seller shall forever warrant and defend the title to all such personal property unto Buyer. Dated: Bar Its: By: Its: EXH Brr A TO BILL OF SALE 31 EXHIBIT F TRADEMARK ASSIGNMENT WHEREAS, CONCH FLYER, INC., a corporation organized under the laws of the State of Florida, USA having offices at (hereinafter "ASSIGNOR "� is owner of the following trademarks: U.S. Trademark Registration Number and WHEREAS, MASTER CONCESSIONAIR, LLC, a limited liability company organized under the laws of Florida, having offices at (hereinafter "ASSIGNEE "X is desirous of acquiring said trademarks. NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acimawledged, said ASSIGNOR does hereby assign to ASSIGNEE all right, title and interest in and to said trademarks, together with the goodwill of the business symbolized by said trademarks. IN TESTIMONY WHEREOF, ASSIGNOR has caused this agreement to be executed effective as of this day of . 2014. SELLER Name: Title: 32 EXHIBIT G ASSIGNMENT OF CONTRACTS THIS ASSIGNbffiNT, made as of , by and between ( "Seller"), and WITNESSETH: ( "Purchaser"), For valuable consideration, receipt of which is acknowledged, Seller and Buyer agree as follows: (a) Seller hereby assigns and transfers to Buyer all right, title and interest of Seller in, to and under the contracts (the "Contracts ") described in Exhibit A attached here and made a part hereof. (b) Buyer hereby accepts the foregoing assignment, and assumes and agrees to perform all of the covenants and agreements in the Contracts to be performed by Seller thereunder that arise or accrue from and after the date of this Assignment. 2. Further Assurances Seller and Buyer agree to execute such other docurnents and perform such other acts as may be reasonably necessary or proper and usual to effect this Assignment. 3. Govemia Law This Assignment shall be governed by and construed in accordance with the laws of the State of Florida. 4. Successors and Assigns This Assignment shall be binding upon and shall inure to the benefit of Seller and Buyer and their respective personal representatives, heirs, successes and assigns. S. S'. This Assignment may be executed in multiple counterparts which, when signed by all parties, shall constitute a binding agreement IN WITNESS WHEREOF, Seller and Buyer have executed this Assignment as of the date fast hereinabove written. SELLER: By: Its: PURCHASER: By: Its: 33 SCHEDULE STOCK OWNERSHIP BY SHAREHOLDER John Richmond —100% 34 SCHEDULE 2 FINANCIAL STATEMENTS Provided with due diligence materials 35 SCSEDULE3 COMPANY INTELLECTUAL PROPERTY Web address/domain name: www.conchilyer.com 36 SCHEDULE 4 MATERIAL CONTRACTS See Exhibit C herein 37 SCHEDULE5 LITIGATION None 38 SCHEDULE 6 LICENSES I. State of Florida 6COP Alcoholic Beverage License No. BEV 54-00515 (including tobacco sales). 2. State of Florida Food Service License No. SEA 54 -28063 (Conch Flyer 3. State of Florida Food Service License No. SEA 54-01459 (Last Call Beach Bar). 4. City of Key West, Florida Business Tai Receipt (occupational license). S. County of Monroe, Florida Business Tax Receipt (occupational license). 39 SCHEDULE EMPLOYEE BENEFIT PLANS 401(k) Self- Directed Qualified Plan Account at Edward Jones (See attached documents) 40 EdwardJones TO: RETIRMU NT OPERATIONS ?.EGUESTED BYt FROHt ANDY S:'RAUBE BRANCH.- -6588 9INANCIAL ADV_SOR NO.- 611028 OJCUNBNT DESCRIPTION ACCOUNT 11STORER NAME 2iv U PAGES PLAN DESIIN ELnCT_ON FOR14 >60.99183 CAUGER, LYM SPECIAL INSTRUCTIOM 3RANCH I_7STRUCTIONS: EQU:RED FORM= You have opened an Omer K. Sale Harbor 401 -.ki, Profit Sharing, or Money Purchase Plant Go to TonesLink to print the Plan Design Election :o:-n for your plan types .7onesLink > Investments i Services > Services > Retirement Planning a Resources and Terma > Forms > adoption Agreement IIIININ�l��lINI N1�Nf� i i�Nlll I��I N 201402102137291340102US QPCENSUS DOC -N0 .-140210- 21372 SECTOR COM 002 Edward Jon Edward Jones Disclosure of Services, Fees and Other Compenaatlonli Self- Directed Qualified Plan Account :ia7iad P «duC:a:}'< A- t:1_HMCN0 rraapOC: areas rare aCH Y':!8R _VC sc. sure 'rL:car `a 1502 ila:resa Add ens, ?435 .zJL"H R4.smu B:;tD FA t . -war: B;;v,8 BR `t;Mbar! 636e , By ASST P. 11�'40 74tal -3' :4 Introduction This disclosure provides an oven icw of the se " lees provided by Edward Jones i "Edward Jones" or "the firm ") to your employe benefit plan ("the Plea ") that msUntalns a Se1f.Directed Qualified Plan Account at Edward Jones ( "Account "), and discloses the fees and any direct or ladlrect compensation Edward Jones reasonably expects to receive in contraction with the Kim This disclosure is designed to anon the named fiduciary or other responsible Plan fiduciaries In determining the reasonableness of the fees and compensation Edward Jones may receive as a service provider to the Plan. Additional Information regarding the specific services that Edward Jones may provide to the Plan under the Account arrangem nt and the fees related to those services are contained In the Edward Jona Retirement Account Agreement. Custodian Sera Ica Agreement, Edward Jones SchedWc of Fees' and other related documeata, 1. Sam Ices Provided by Edward Jones The Edward Jones Retirement Acvount Agreement. Custodian Servi;es agreement and other related documents define the scope of the relationship between Edward Junes and the Plan, Pursuant to those documents Edward Jones 14111 serve as the Custodian of your Plan's assets. provide cenain tax reporting functions, support account maintenance and processing activities for the Plan and individual participants, generate monthly stutements, and execute trades and plan installation wtvsces may be provided if agreed to by the Plan and Edward Jana. Edward Jones may also provide educational serices to the Plan fiduciaries including how to determine the Plan's investment objective, how to diversify Plan Investmenm how to evaluute "set allocation models and how to select suitable investment products for the Plan. Edward Jones financial advisors may, upon your request. conduct enrollment. investment and other educational meetings/seminars with Plan participants to assist them with questions related to the Plan or other financial matters. Edward Jones does not provide aetuarial, recordkeepmg or plan administrative services to the Plan Edward Jones is not respotutble for determining the type of plan, or for the selection of investments available to the Plan or the selection or monitoring of any trustee. third party administrator ('TPA' ) or other service provider. 11. ExplanWoo of StattnlCapocity All services provided to the Plan by Eduard Jones are provided in its capacity "a service provider and s U.S. registered broker-dealer. Edward Jones is not a tiduciary in connection with the Plan and does not accept any delegation of fiduciary authority in connection with the Plan or the Account. Unless otherwise expressly agreed to to writing, Edward Jones will not provide any advisory or administrative services to the Plan. IQ- Fen and Compensation Edward Jona May Receive Dlractly from the Plan I "Direct Compi ma Lion ) Generally Edward Jones may receive fees or other forms of compensation directly from the Plan or Plan participant .recounts for brokerage services rendered to the Plan. This type of Direct Compensation may include the following: Commissions Edward Jones may receive Direct Compensation in the form of cummsasivua for executing purchases or sales of securities on behalf of the Plan or its participants (generally known as brokerage services). The firm may receive commissions in connection with the purchase or sale of equity securities, fixed income securities, mutual fund shores, exchange - traded Tits disclosure is betas provided pursuant to the Department of L sbo trsululon under sectWa 4()aib 1214 the Emph)yee Retirement Income Security Act of 1914 tERISA) The Infunnatiun contained in this dortimeat relates w)iely to tie services provided by Edward Jones, it does not relate to sarvite(ss provided by other service providers to the Plan, such as trustees, mvestnicru mmaaen. payroll providers or nhtrd parry admialumoo, For tee and rompentation information relating to those senior providers, plea" contact those service pmvkkn directly, If you haves any questions contenting this disclosure or the ksfomiation provided to )oar concerning our senior► or If you would like a paper copy of the infnmistinn pmvided in the wrbdlie link*, please contact )ow Edward Jonas financial wtvi.or. For finite information on the Schedule of Fees, are u u u sd» rdionei,eorrufeesrhry}�tr Page I of 3 Rev 7 June 3012 EdwardJonee funds UETFs') and annuities. The commissions arc typically paid from assets in the Plan or Plan purrtaipant accounts, generally as a deduction from the purchase price or talc precceds, and vary baud upon the investment, sevuriq, and transaction at issue. For more information on commissions at Edward !ones, sceu::..,rcu ;, zetsA�st3z1d1. fL1c , Plan Service Fees Edgard Jones may receive Direct Compensation for Plait - related smuts, suvh as a one -time Plan set- up fee. recurring annual fees. and fees for an adoption agreement amendment. regulatory restutement or amendment. and processing Plan participant loans or benefit payments For specific information on Plan Service Fees. see www cdw .;aiv>alanfe « . Direct Compensation for Other San fen For an explanation of other posmbte sources of Direct Compensation to f?dwand Jones. see u_ .<a y u d tt • c .; " end IV. Compensation Edward Jones May Receive Related to the Plan Investments t , 'IrArect Compensation ,, ) Generally Edward Jones may receive compensation from wurces other than the Plan, Plan participant accounts, or the named fiductary in connection with the accounts and/or services provided. These payments may relate to the value of the assets in the Plan or Plan participant accounts. but are not paid with the Plan assets. These payments at usually described in the pnnpectus or applicable offering document. This type of Indirect Compensation may include the (oliowing: Comps radon from Mutual Funds • Sales Charges and 12b•1 Fen Mutual funds cud mutual nand companies. or their ,ifiiiates, may pay Edward Jones compensation in connection with investments in the mutual funds by Edward Jones' chems. including the Plant and Plan panleipam accounts. The mutual fund company may pay salts charges to Edward Jones for the sale of mutual fund shares to the Plan or Plan panicipams. The mutual fund may pay Edward Jones i 2b -1 fees for distribution services. Far :note Information, see so a.e_•a ,,e, yp) a�grq. Compermtlon from Mutual Funds • Networking Service Fees In same instances Edward Jones provides networking services. which arc the services in connection with the automated. centralized recordkeeping system through which mutual fund trades are executed and reconciled between a mutual fund company and a broker - dealer. Linder these networking agreements, Edward Jones has agreed to perform ccnaln duties including, but not limited to, account maintenance and reconciiiatlon on behalf of a mutual fund company. For providing these services, Edward Jones generally receives between 56 to $11 per mutual fund position per year from certain mutual fund companies (some mutual hand companies may pay lesil. For more information. see u w.cdwv ardionvs.com/oUnfm Compensation from Mutual Funds. Shareholder Accounting Fees Eduard Jones may perform the sery ices of a transfer agent. such as tracking the holdings of s mutual fund for an individual client and distributing dividends and shareholder information for the mutual fund company. For providing shareholder accounting services Edward Jones generally receives either it) between S 16 to $19 per mutual fund position per year from certain mutual fund companies (some mutual fund companies tray pay less). or (it) between S and 25 basis points (0.05% to 0.25% of invested assets) per year from other mutual fund companies isome mutual funtd companies may pay less). For more information. see sew w pdwardiones.com/otanfces Compensation from Anauldes • Sala Charges. 12b•1 Fees and Tralls Insurance companies or the entities that markets an annuity contract or their affiliates ('insurance company% may pay Edward Jones compensation in connection with ttnastments in the annuity by Edward Joins' cUems. including the Plan or Plan participant awcounts, The Insurance company may pay Edward Jones a commission for the purchase. sale. or subsequent renewal of an annuity by the Plan or Plan participant. The insurance company may pay 12b•I fees and/or trails for distribution services and continued support of such product. For more information, see w w.edvard io nes corrdpignfees Finder's Fees Some mutual funds. insurance companies, and product provides may pay it fie to Edward Jones when business is placed with that particular product provider or investment. These fees are not paid out of rive assets or the imestmenta themselves. The amount the firm receives. if applicable to the Plam is discussed in the applicable prospectus and/or In a separate disclosure document provided to the Plan. Edward Jones Money 1larket Funds The Edward lotus Money Market Fund and Edward Jones Tax•Frea Money Market Fund are the only money- market funds In which available credit balatua in Edward Jams brokerage accounts may be automatically swept and invested. Edward Jones is the limited partner In Passport Research. Ltd., the investment adviser to the Edward Jones Money Market Fund and the Edward Jones Tea -Fare Money Market Fwd lithe Adviser') owning a 49 5% limited partnership imtetest.). As the 49 5% Uttuted painter of the Adviser. Edward Jones is entitled to a significant portion of The partnership distributions made by the Adviser. which are derived from the advisory fee revenue received by the Adviser from the fonds. In addition. Edgard Jones provides distribution and shareholder accounting services with respect to the money market funds mid receives Page 2 of 3 Rev 7 June 2012 EdwardJon t:ompcnsatron fix those services< For more information about compensation Edward Jones either of the money market funds, see may receive related to assets invested in ;� �3• ,�•> n . u please ask your financial advisor fora r:a PK� 'a. For additional information about our money market funds, P - V. Compeawtloa Edward Jones May Receive In Its Capacity as a Broker•Desder ( "Ineltrect Comptrtsadoo "I Generally Edward Joncs may receive compensation from third parties that takes into accuum the investments in the Plan or Plan participant accounts In addition to other factors. For •a dewnption of possible sources of Indirect Compensation to Edward Junes in its broke- dealtr capacity, including selling concessions from securities offering syndicates and those listed Wow. see «L - 4u rdiencs s < =rrf_ out rc tot n yJ lid(, This type of Indirect Compensation may include the following. Revenue Shadisi Edward Jones may receive revenue .hiring payments tram a mutual fund company's adviser or distributor. an insurance company or ibe entity that markets an insurance contract, or u retirement plan provider in connection with the ale of products from certain product pro%iders. Such payments are not additional charges to the Plan or Plan participants, bur �erierally come out of the revenue generated by the mutual fund or insurance company. For more information �n revenue sharing payments that Edward tones may receive. see a use 'El£� 2, yt rst4g Overdght Invrstraenis Edward Jones may place client cash, including the Plan's assets, in an account for she =.rt periods of time in order to facilitate certain transaction& such as while waiting for investment instructions, or in order to nuke a distribution or other disbursement. The use of such amounts may generate revenue for Edward Jones in the form of interest, For more information, see u uu.C{,�u _ urdl.L'nc %larkedag and Training Support Edward Jones may receive marketing and training support payments. conference subsidies, and other apes of financial and von- financial compeatation and incentives from certain mutual fund companies and , rtsurnace and annuity providen to support the sale of their products to Edward Jones clients Based on the firm's historical experience, the aggregate value of these payments to Edward Jones in any particular year has represented less than half of one basis point of Edward Jones' total client assets in the investment Products of the providers providing such support. T'he level of support is not dependent on or related to the level of assets invested by )our Plan Gifts. GrstWtle% Enttrtaiam oU and - on- Monetary Compensation Product providers, including mutual lurid companies and insurance and annuity providers, may provide Edward Jones with non - monetary gifts and gratnddes, ouch as promotional items (i.e., coffee mugs, calendars or gift baskets), entertainment, such as tickets to sporting events and recreatlonal outings. meals and access to certain industry related conferences (collectively, `gifts I, Edward Jones bellevvs that any gifts o r tmeitainrnetit It receives from product pmvtders are received in the context of a gtatral business relationship with the product provider and should not be viewed as attributable or allocable to any transactions engaged In with such product provider on behalf of their clients, including the Plan. in any event. if the value of any such gifts or amcnainmem received by Edward Jones n allocated among Edward Joncs' brokerage clients. including the Plan, pro rate based on the value of each client's brokerage accounts, the value allocated to the Plan would be beneath the Department of Labor's dr rniatmfr reporting threshold for nommenetary compensation. VL Investmeat Options Information about the fees and expenses associated with a speclAc individual Investment option can be found in the option's prospectus or offering document. copies of which can be provided to you upon request by an Edward Jones financial advisor. For more information on the investment produces that may be available at Edward Janes for potential use by the Plan and its participants, we sox w cdwatiliStACy co)rlolvnfee * VII. Aecaunt Set Cp and Termination Fees Edward Jones charges set up and maintenance fees and a benefit diviribution fee may apply. For information on Plan Sen-ue Fees. see use tv cd- ardionts eamrolanfe v , VIM Reeordkeepini Samna Edward Jones does not provide tecoMkecping services to the Plan —that would be the role of a separate provider, such as a TPA, Edward Jones does provide certain services, such as account maintenance and the generation of .tatements. Page 3 of 3 Rev 7 June 1012 feces Accouu Number 669.99,81 aruicha 25'8t Date l iG .Dpi Edward Jones Custodian Services Agreement `for use with Edward Jones Custodian Quallfled Plain) C Plan Installation: Custodian Services • Consult on plan selection - Provide IRS-approved Prototype Plan Document Prepare Summary Plan Description - Prepare Notice to Interested Panics ,upon request, Assist in preparation of IRS - approved Standardized • Prepare Contribution Notice ,Safe Harbor 401ik) Plan Prototype Adoption Agreement only) On- aollis • Process benefit payments - Prepare and issue IRS Form IOWR - Maintain and update plan documents as required by regulatory agencies • Assist Kith RMD calculations iupon request) Process federal and state incume tax withholding • Maintain beneficiary daignatlons • Process participant kum tprovide loan policy, application, note. amortisation schedule and check) Prepare the annual C ininbution \otice,Safe Harbor 401(k) Plan only) Schedule of Fees (per plan? One•T'!me Plse 4t!�n Fee: $130 AnnualRecurri t $30 acb calendar year for acb participant. This fee is not prorated. Fee is due for cuh participant upon Ant utiviy: annually thereallet on each anniversary date: and for terminating participants, the earlier of participant termination or plan anniversary date. $SO acb talenda it year for each private asset. This fee is not prorated. Fa is due for each private aim annually on each anniversary date. Adoption Agreement ameadmie t- SI50 per amendment. at Employer's request) (A revised Summary Plan Description is included.) Raiatilatory Rmmt meat or Atumduwit: SIiO per restatement and or amendment. ('Kris includes all required amendments to Adoption Agreement or Plan Document. A revised Summary Plan Description is Preluded.) Participant loans: S I OO application fee per loan: fee to be paid by participant and must accompany application. 5100 annual loan fee per loan; fee is not prorated and is charged to the participant's account each January. Benefit payments- SSO per distribution per employee: waived if assets remain with Edward Joan. Investment In the Edward Jones Money Market Fund Rmirenxnt Share class ........NO MINIMUM BALANCE and NO CHARGE Edward Jones Money Market Fuld Imiestatent Sham clan ..............53 each month the balance is below 51.100 Plan Administrative Services: Edward Jones does not provide administrative or actuarial strikes. This includes determining employee eligtbtiity. calculating contributions. calculating vested balances, performing compliance -eats and preparing or Aling IRS Form 55OO1300EZ. Invoicing: Plan setup and participant fees charged to the account upon first activity or may be invoiced, Invoice for annual recurring fees is option d and, if requeued, will be maiied annually thereafter, prior to each account anniversary due. Edward Jones Money Market Fund fee and participant loan fa are not invoiced and are charged to the participant's account. Adoption Agreement Amendment and Regulatory Restatement or Amendment foes must be paid u time of request. Securities commissions and mutual fund sales charges and operating expenses are In addition to the above few. Uninvwlsd Cash Bdmsewt Unless directed otherwise, all amatnts held in a plan account, but not invested. WIII autornatically be invested in an huerest- bearing account, a money market mutual hind or other similar nveuments. The exact details of this program may be obtained upon request from your financial advisor. (Signatures REQUIRED on next page ) Revision 28 October 2010 Page I of 2 Custodian Services Agreement Payment or Fees and Other Plan Costs: The fees in this agreement and other costs associated with the administration of the plan are the re3ponstbility of the Employer. Securities commissions and mutual fund sales charges and operating expenses relate to the securities held in an account and arc charged to the account that holds the securities. Such securities commissions and mutual rand sales charges and operating expenses may not be paid separately by the Employer, Fees and other costs may be charged by Edward Jones to the plan account of a pooled plan, from the account designated as the primary account or master account of a non pooled plan or from the account designated as the participant's accaum of a non pooled plan if a separate payment for services authorized under this agreement is not received when due. Fees aro nonrefundable. 1f the account to which fees and/or other costa have been charged does not contain adequate cash md cash equivalent& to cover the deduction. Edward Jones may liquidate such assets of the account that Edward )ones, in its sole discretion. deems appropriate to make up the differeace. Edward Jones is not obligated to notify the Employer or plan participsat of ns intention to liquidate secunties under this provision. The Employer will be notified of changes in fees or services 30 days pnor to effective date. It a not necessity to xxecute a new Custodian Services Agreement when a fee or service change a mein, Employer Dutleri The Employer acknowledges being the ERISA Plan Administrator and agrees to review all plan related documents and amendments with legal counted prior to execution. The Employer acknowledges that they have appointed a plan Truster (or Trustees), Edward Jones is prohibited. due to various regulations, from acting as a plan Trustee f or Co-Trustee). Edward Jones acts only as Custodian 65 described in the Edward Jones Defined Contribution Prototype Plat and Trust. Edward Jones must be the sole Custodian of the plan. The Employer aeknowiedgn that they cannot rely on the IRS prototype Opinion Lester issued to Edward Jones to cover the IRS qualification of the plan if they close the account or they establish any plan account at any other tlnaactal instlrutton. The Employer elects to use the Custodian Services listed in this agreement, as from time to lima tray be changed, and takes full responsibility for fulfilling all other plan requirements now and to the future. The Employer shall promptly furnish to Edwvd Jones complete and accurate information, in writing and proporly authorized, which Edward Joan deems necessary to perform the Custodial Services listed In this agreement, If. as a result of delayed, incorrect or incomplete information furalshed by the Employer, it becomes necessary to complete or revise any forms or documents the Employer a grees that Edward Jones shall have the right to charge an additional (tat at an hourly rate to compensate Edward Joan for the additional work. Cancellation or 5erviw: Edward Jones reserves the right to cancel any Custodian Servlcee without the approval of the Employer as a result of delayed, incorrect or Ineoo►plete information furnished by the Employer The closing of the account on the records of Edward Jones will cause the immediate cancellation of all Custodian Services. Third P'nY Administrator (TPA) Informations The Employer acknowledges that their finaocmi advisor has recommanded a TPA be hired, has explained the role and imponanoc of a TPA, and has explained the risks to the Employer and to the proper aMellon of the Plot if a TPA is not hired, Cheek A or 8 (I! 81s checked • complete tarot�tiop)t A. ❑ The Employer has dedded not to hits a TPA at this time. S. ❑ The Employer has hired this TPA. Address: City state Zap: Telephone: (_I Contact Person: Email addtrts: My stgaature below acknowledges acceptance of the tertns, conditions, set%Xes and fees at out on pages I and 2 of this Cuatodlsn Se rvice Agreement. CONCH FLYER INC Print Name of Employer Pnnt tiaras of Business Please retain this copy for your records) 660-99183 Stgnatttrc or Employer Data Plan Account Number (Seaddoc: ADSUNSRVCS) Revision 28 October :Otfl Page 2 of 2 Edward Jones Self - Directed Qualified Plan Package: ❑ Edward Jones Retirement Account Agreement (customer retains) ❑ Checklist of Account Opening Documents (emple)er accounts only) ❑ Account Opening Documents (customer signature required) ❑ IRS Notice of Non -bank Custodian Status (Rev. 11 Nov 2013) EDWARD JONES ARTIREMENT ACCOUNT AGREEMENT �'"$ -'Xlcumefft tr4 t." EdwaM -'one* Account Autmr jr4 Acknokvl-d�aert Form (for individuals, butirwis4s, fj�.txjp trust accounts, or loOlvNual rttirlisent aftaiints) biMinq contras wiaM into -:nor of ny Edwam Account mio tt,# siIntory if the ' ( 'I ,* *- t. * %V). !M E&Wd jays ('ENara "iGrAs Cr Services Provided by E =sus un er tre Terns of i% Ayres t it - re 1 .. .. ... .. -r" not m 'o�f !' :O,ntAs 1,1 yj "a 0 Tani "I as a %HE Alwy 2rcQ�4;e str�es' i 'tr sF ""twt zwsws "Evord OY aws-n 3 53 y 3 5 VA ar 4'rP tS as r s '•:w Y�3vs Nvve • as 40"ol 4 Rnio- -�rt :rccm 'ecur'.ty '%CZ '�f T' A- -'-� ,` 4eviot,e Coce ar otrtr �witcw R"santation and Agreements pm.Mt "n A to ';e :r'z«stry k=:ry ' i7 enmige. a ma". a aor"t ! You to ttiat e . I - -ecorr'- so �( - — e? 1 VW Immut 3t Cr stns :UQ ,fm rPiq zMs Ym•w so wncrnm Rt * 'n �TeA6if 31 iris icoount n.r ,en_ w ers o ynout *'�Is -goetnt, '7o - ,)" n,e" in 'M me d"'Mt �lr!rs ro in 'Cup, —11;3tea v" Ims JI4 ";.arj "Yes. r e1 —iersor's "!C�Zlt of y ic In lt ni I, !r ;=N VV to im omeraN my aay"S' 'tas notar ., _e ;,afkuio onzot on amm 1 nul in "MM4 : "my 4"Ot % %WSW SKV ly M-1 % HM a! kere, CY Snisilaw.1 of py vma;m ' i UK" wn artl e'en tn:'jj1 ?31k3 Of t'�t rwnvm mm"; UUIVI M ry �'in certif%3tts "ay i"Ife I rrjo .re Aare(s' 4' „'rea nq - r' Int Ce51;'1at1W I n any sun — ee tc 'r 1-,C y rrn'oss "'C; '�-! l- emme p"'MN. to rX mtea a':4'roy 5 't-1) to �"qA- ao tiS.-rtoa ty AY pay vnv YX Q r_a find Cf y aantan t of !ny s, n .eajotCalp Confirmation of Transaction and CAistoor Statements "f ^rcerl 4»d S'3'e"r4nn 'f ny _<teo (C in Pago 'Cat 5 1W N T _4 at the We"al Anne w 0 :000 0 -he n'�n ,s ue . , 4 " ' n r-41yec' or ^Iy a win, in vast 'n 1 -001 -s n %a :r n —'nr 1” l_31 m vo "pool wo vv y pm� a nwaym ..n mmit I'sFin ts imemnn .- :WMIN M I wey A.YNIA: nt a. n 'Ti, t, t - Irt!�n 'txas o f tr�o 'y es '3r �' tsle'a t :Ova .'"5 '1 rn - "W - Vy; nVa"M �r Y" 10 : ."YoQ 3`� !I Wrn 1 My "M nze mw-"� On 4 'n a Aij to am 'V ?Moto ity — 01 -!newn !owl" a" a 4 "yon CW%. V , wool 1VT ?"V340 4M 0 " !X I �y maxe a" ME clployer peovl4t'o Plans mum AWAS 10 A 10"W: A a enzer-N YU " �^-nt 'Y 0 Em "s 004M Tr Am l y-r .:60 - ��r emept cogs or 5 !:)' S'so y 4!4 1AC!"Ies, 0v 11 ID. t — �oill li, rt t-A a - -5 1 t Of 4sls trot a, 5S An ;er.e Vint ewoyer OMMMA "a cm!I16 f:, r llry"'?j "e to 4 Ad Aglan is q)i is otnk'r �ayr*qts - nt e'sltt it) ln'or�jtlw. : Xhimp 7w eye i°G lqraf 'rat 1* '1 *11000 smkn 2 ve F" SWIM, for ayt"iwa "t No Xe OA 0 f e"My. :Mmt can; azinlu.,'itor. 0 of P;)n n. t'd so vy o.er -'Ivi assets. a ,4 , o f I r - AY rate +A"titl:'ents •�• !'�f No " zi" 'ri r"-'t e.try It any a! sork�t lor'Ary ift� �f 'Yer plan 36sVS "V 'S 'I'ell"M *• sWst � N Fs I=, EDWARD JONES RETIREMENT ACCOUNT AGREEMENT : ?,-.a?, v Jr. a , c ,.4 ,, , & a n ue um Y cmeaw :0 Man me Wye— "n Vol el Ono k 0 UWA e�n " re "am= me i WV wrow 1"Ore on sH., - o o p 4MV a Z , N M Swrwt ax M F"i !MR am 59a i i PACMrKtarizatlow 7 Z minis nesema", : YU wniwu un no" Ew Was TJPQ 5% to :Mlmn . =! %Vner aPos Am y r . a ar y :4 � . ON" "M 4 me Now"nVi2mv 0-000 WV Ve tr!t an AAM-11 E to ml ra^v � a ro- v two ay tele"ona well t, ar atume: rwe. art ww,nj an Opt ren we Aaaqayin j=wCM A Ky . Wt k -'4t tnit ! wt .' resent to wssvate :Overnyg nor vamanym W' Kau v "t mcmw, Staten. nZ an !Rc, .'Cr-s TWR an 426 ! OKI rKels Nov, HMO Ares. Accomts AM Traiisactliam Sub4ect to RMIation All transactirs wncer tnis Aq7eetnt e ^alt me juz e° ?�� *�q w4 t I I or 1`�i It :,St=3, am UIIn t"anwt*crs IrW ;,4 S�t�t t a rt;414t�Ors o 4! rt,tra' state, am se t,a t 1�7t?, t t- n4les am Watiss 0 trt eeIar- t., om Exnange Camnsion. CONUCt Plot to Cbiltitut* WAIVor tor Sive to insig at ar a %n somc* f ,orrjuv n !Pis A;rw�*n- or inr an �, its 'trme Or an� -arse ") S��n cog)G4t c yo. Un on s comm se nor to c a wye" Dy yo- Of any or'), I;n*,$ No ;WSIOr of tnis A;re"'jt sna'! o* in ar� tes:Ct .3 altered, cw!f1v or " %' , a 4rleis 56.4 Wve, k'41f"Catic, or aotvv 1% vin's q a vim" Of M� cirplumv English as Official l�?f Agreaent am C~ncatiorl 1 ajre-� ;Q WIN mw eatwonec and aomtr-cec OY - ,:) , s A;(-ttttn*, hom"o tet"Of-cal am cantn'liN Aq. am 'n8t *.,'I% A;r-tle't any Ctnf.^ not wim YW fora timt t t a. ,iall 6; e 41n aZ 1IS mll,*es, �Isolojrm. am 001 " :" ,:are, Oy 4m oeli"re: to me in Eqlia'. ! i mpm"n on ^awe tne *ratslann ol ry cel !Vert ny "tr a Aqnne O van E "S tnat I r rasOO'li""t o t. sm Ass"', � Ov�� I f�rtne�- air" am acmle s tna! ii2 E n; I! , n44a;e Vef$ 6 1s , CX . r - no , � tye X si S1, Vc :t fo" all ol aOclwe 'or coliltv:11"In Termination of Accoot AiaGrall Pogo 3 &N If " , p l �.',--:Iq S . ", ti ', ty no 'e "-o r,- YAcE AL., J'» X%. zS� ,-j',v 4n 'a: wit! markt! no Al Am mvtr nw e tnt a < ant rah "mrs Y : lay 5UM Y! Wam n my Fm sau, ty pq 1W c M famy "alvin an �.-, A cni-,k frc�rj�, --le d 7r-itt 0! an S,ct, Acml �y a a;5 nstr t o do o! ;V= Arm "In M a, , it- :Wa A LY 1.1 re an U cat of Az ess r lt.:a?,,::>'t nl*,ne,: Ol ?nt t!t t. arrtn�,e 14 non "awtion W ts"m t", F�n: stttS to - m): A, rf as 4 fr�t t olwi- w 0, 00—MYS Innirn or otur we� ;V matzo. 1 umasum: at > a, m CfAr Te aw, r�rolc.t-Ir ar Anodn* j e,� o " . tIrt t to Oil- �n ��Oal, . "'i"IrtiOn 9" Veto e kn T tabsty 1""n me tc. Ovt' tn An vet Wme:VS wemn to V Ly Jt tnall nstltut a lIan y kv a! rl .,: ACC am 4 I ss "ne mter: rIit! tr, Olnf- zo-ainea. ir, *,n! 6,rf-s "IlI* t" At tnt przceads lrW' tly su"I txlen'!io^ re�zt tO oAlrase. ,Srfy. *ralt in sa:jr s wa sIa v U11 o? slij 1Cln or'--te.5 mrsj sSt, w o'j , C of e �, -emete Aqttr,f 5wa Awar— 4 tr , "!,f an,�,-. If Iny loir - as o° xe-o�or t� a er an aOctli & -;sHnr i n "' as aqmnl tna trtVrq In are T;4 -I ,Ctss r,�t I f tNe Ant"S 510"AMS owtv, hothf- V1 U6 . "n -C it'd 'nc a as narta re S. rtjt "�3 "r -C, vO, .1i 103 me 101- MI. ttatovnt$ leliVi dtacrlt• Lose trg';W* IO,')� a 01 to Unms Trarsiwm is q aAoA*, t � s%u am w we to tecx ,µ-4th; 0t4m 1 �nOerstV4 1 at Y-Ni May Cl!o%e ta , clt;af ti-, a.'-'0z1t a f-k 14tt'i -ati,n dry 4--r -w cro"mss "artax on wISM.W A HIM, USIS Y , mats It asactly "a a e fora as tr n��v of t� IONA a4ka's relstrniIr, if t�:e :UI i n ^t < J opt lhl S I! n; cart tne v.-IA A :" No pro ny a Ve "," t-at ' L 7 1, , I ne :�e is :-� �or afa�tt I f k i a,, Xes W eman n"Y": can 0 Sw owt U mok Eowmo joNgs RurrgmtNl ACCOUNT AGREEMENT terzs mmi F,nn; piw%nus cc :1 tool" nm nhsv)p� Jorei. $6 3 45�et .10 .00 n cc no A yown7i �v-,e or ze n �ff MWIM 0S n Sn"We Tin: ,=woo no "Wa 4 , o 1 x "Kei"e ta ry MMMMM Vy ir hQuat S" now we w., my 1mone "e "3M=vvA V via "M "V w !u maw. une , ^",e M 5MMM Ala, 0 1" z" my u am M" no es 1 it as M ac: as or, W"Mmvt vMrv- nwei M ;WWOMM A irc tillY oc "t"-4-itles srt prss"6� is 1-1irm :Mpaimmmen VvIgm syn ve ve Vvi wiz-� 1 roe wwvm u Am' 1M ,nis ,erv vn"N"M FKI"44 ^,?', ! tocurl*y wu I lln!� III cv4r-elnl f ,,o " Uy d !rQ ?Ave rt live a ..-f b"S 5 o S - 1 7 04 YV DMIO f "I "OtY !S MM"Q' oqy We K y fvZ, ?I try "ryt wropiCUS M - 31 C-MM4 v�o saw agninuf , I :v xw ant Y qnWma v py nm 0 fWUMN "M & my A MWM LNwf %I i 4r C"t Av4"vN ffolnuctioell xics u w 3M so unr Y": no xwq�,q sl,,;x,s art eli;;, tv 1' afrvl-�t - �l n r-?s dt:?�n 's Clt)o 1 atr =1 %r 3 ii my " — lmv1a=Y Y AIM oil —r—JC , >f gi"I oc-a' C—e ew. arnvt �- I o"t " 4 Fit 5tZ+ n ; 't ne't t-,VNa47, Lp :4 " "'Y luv� t "Ant" no up" we M&MM zM n ,jrt]i4se, ;t nt Cj , ,�ols to t-An!irttvi Wst t In ry ieitl� i;att-, 1 Mmom Ste vYW&M 1 :W! rilve in EDWARD JONES RETIRFMINT ACCOUNT AGREEMENT . <,l v.y n : 01 r 4 V --.ur ! Mww A Vq�7 runw imam a 0—n e Y 4 �=e 0 s SIMI'm n1v nnn on 03 mm otlyntct; 7 To MM&I of TVs AgAm"t im Jon"! "I sno JWz awuny OK" s+' ..3 of not mtv ;� ' 7 7, tK"azy xxie 4 A ve Vic avy ty ;� %ns W 01 thol I'M _ as xs c» =f QN,=r1l ty - 0 " r �o -15t5 WOMIM to at so- rr;e 01 0 YOM 1 ve :we moon ,n we "WWI ho MO. t ^t s= s r r - �,s: --a a M can a" ��ys 01111 3 in -Y tsix"t In f we al SS cps Yta h Oite 'l ne 1i *�ra �I :f -Ifloll�lrt f�lr4s Vo st oil act ZZ14 :W1 cent :, es re lf *�rs Dy Ox A Te 11y1,n �iy �Aslr,*%M Me 7 a C"IMLn art fa 's an a sal"u, S,nca r '1,1i-day N -1y 'r4 MrMun Cut exi'l 5A - eli nue , to OWNY newsent I tate � rut If ti�e oc t" 'OVN IMSMI OxTy" Ass C! at & wines at n ,:y nut 1- =aWro MM c'! 1�$rl *rdi4ac *, - 4y 'An'.el i „y ws—t kv 1MMM A 1� 11tor New W MV 3n am cu , m rMwayu. of T^an$WVOMS Accepted -,hrvLo DSrect Deposit oM Direct pa"YOOMM 11"1 .ill 1�.IPt • " eit irC f r-in. - rY !cCo"m M " W a a " to W A .11; MW re,”" &M "rf Pa" I a- Any "M .=M ro lwws ran".7 - 0 - re"Iq " nrymt VMS to to wwq "On! VA MO - 01 1 vs IONQ �?"x Y1 INFA > lml a m &MM"; dgtt ,n�t �T �—,T 71 rrr to Wjniw a un "Ms "% ac W"N is —nw ow; > nw;y 3 1 . - 0 : !Pnm; all mod mine Wyear •3 M of ay Mum ins MO a! Joan of Jty x fi. 'n�sl !' is! Mt yid ze Ylomw 0 1" 14,000 IM; "nsw nmi 0 bony cv um env 0 no rt VOVMN =Wq " '01 A !am 11 ;-il�w 7A ?n Nor n �e Nos % r Or to 44 kt Chong" to Diwt 0*0011tS 04 Direct �tayftnts :Ono or wimi"rin nyn SM;zwel 5� to a M1 a, W3qM n "Malte me "rims 0n SM ut 14 c"!" �n Right to stop paymat and Procsou"I for Doing So �J j 4ee N", I- Q4 nvsws S! Y q nn an ct 70in pv- took i MU 3A ) a at MI L4 sr q r"Vvas et�lot tnree � T 5Y5 Zile 04 :WWI " "MiAl 0 a Mis C' MV61011 Of Checks to Elfctronjt FuM Transfers —,,, : d at : V; *-,-I -Y T4Js I ^ , t ti-7t 011cmnn- ?,fit e!o a,_rtot In't t9yrftt " ) vowtW Pr ;MAr4S Zi ly :C1 351 Aq.y tl !1�o tlon. fa�i4 uec Y 1 *- Sx6 an �K t:^ Or : 0 4 0=50 �43 Pe,, 'f �11-4n. I-r. ty aic "Ay 3-4 Periodic EloctroniC FuM Transfers To or Free ADeMitory MuMal tnItitution Account DrjjjM4t#4 b jqnq& ^4 11)4 !;s'r "tM y z),� S,,v *:Ct0t �r n a va,A ­e fIt'-'I :f to Mow, :Mt W : wt Int-w - One ;MS4 l lnw , ll in A f.1 to q Nyn ucar-t .01 "t-,u1st �M to 'W"r fu!�rs Ir"r. t"t EDWARD JONES RETIREMENT ACCOUNT AGREEMENT " person shall bring a putative r Cvrtifled clays Action to arbitration, nor stele to enforce any Dre•diaPute arbitration 'graeemt against any person who has initlated in court a Putative class action, or Wig, 1S a +'.amber of a putstl,a class .W has rot opted out of tF,e class with respect to any Claims enCOmDa$sed by the putative Class action ;;ntil: (1) tna class 'ertifiutton Is denied, or (11) the class IS afterti {teri: ar (111) the custOw is excluded {rcm the class by the cvt�rt. 5-h forbesr4r4g to anforct An Agreement to arbitrate wall rot constitute a waiver of any rights under this Adtt;vatnt except to the extent stated herein. Use of Professional Designations by Or Financial Advisors ar6 S ':.fft S r a 'r1 ndt S 3. .rar ,1 �2 "ea ?L 3. Ay?wFnt i :et 131 15 NSr Iry a 3. _a A ->d !t'ai Efts � ... 5. 't<S ":�3i <•?5 -yr3• ... ENAM JWS PRIVACY NOTICE A £fiiqua Understanding of i4Ur Financial kakis .:.Wa ,iCr >>, wt f*n4 r :.'4rt6dtiv4?S »� aaiCt 4cCCrR,.s .� .,r �aR1 � _y LO " % <'ry« f_5-C aI 'Cr o' S I ,.^C - "*.° f` Bad Se ;ociiiiologgy tj ca,age, -k. ;air; 9'6 reWl: t: -Ely 3'v.: 3LG�rdtt 1n {,;.^3Sti Wn 1:'C't r ,; "r ,C .°tC.diby '1 - e'e3 3 Y in ..�. 4e art very Se' Uset atsr s „S,'k,r' %io`• i ,� v C „: PC' u ?r- � For Your Protection yo ^ta tta' p 3 c:> . ^e . •� . ^ ^r, Edward ,;ones does sell any inforaatiot amn our customers to anyons. +�a 'dta steOS 23 «L• Oi *X anO -8s t3 �e r.vt CM StCrrlty 111ures .o ?*o ;r'!ect y.cr :firSa al ::,,3•,.tt 'L1A ura.Cfl ^,r2Zed aCLBSa. s . C':`i 1 ;55, �r vtur "Mnt 1: 6141r'g ,ne : w Of 1 "4 a_..�,t and rr nssoord(S) you 'St' t7 &v:tss >i1r l.cn,rtt - f2rr_3ti0n abC{.t 1t ... art T ? „r �assas a 4st >'.eli `-nt £t:'p5 .diet, t limit ., " 1S inlre6 ur„' �rt"ra�n F ;ltA6 �r I'lorration collection a � — ri l l ' 3 s - ��� S f:S`S: y L3 -- ...,3 aSm• "ir .> wd .,_.. 3 <. ., t Xel} _s S 'z'?r '. r Vnq ietlnes for lnfor^atltm Oisciosusj r S € ar .t: k"S 'C ,s. ^ >Yirs not Cv: Si , •.r vt ;^d Cr ?tr' Are �"� % ":al':Y • "tC+t }rte .,, e '� ::.'� t ust "� a -cats, t3 ;hula• 'ry aver x% r I_ ;.3rr as - ? §p,se :o ra'Nert s" ",n t. "•a': Ssa �' :3 %I'.a.. C:.Stl.�dr }r.!v,��, ILr tfi dr. tS. -.•* €,r41 pur A M I1 :rr M'S* 9S a #., ardrl 'art StrYS.:e; <PS£ nq " -r .�.e ,a, 1., ..t:ti 5.a:� *•.'�.3 ? °earcn An lnalys S 3 ^ =J rll,gcy ,+ ` =yeS 9N!u:3 !nu Str' {'CES art t *,t "ay :13t ;trtw A A M ". r ^i. A •ce :.::°>ia�y ,tr t "a'ss ° tr y en *, tr CC.G'$S2?C 9R XJ` ab� {r,1 rant ){ '.f YAy- 3$E>t§ 3'3iJ on) rani tl t -a N at r;:r't b?rry ices ^." ver anal {, ,;r L3 w ,h "'live '�e dare t3 nt arx 8t• sS t o x4rttt part- .. ycs »sso 'C1t » S 3 if ASS t. . tr..a;n 1R {4r;Wt1�:. mart ". S :a:"ar °5 !�$ rF1 C.•• 7 sin! that fW,catic �o "c!t try ^,t P c«.:S Arid ie ^vl ti to pw. - dtlpr, yrC.1StiS :0 ;rte 1S prc:wm . h r1,t '--r ' .n. M Ongoing Comitneut i'A�tS 1l'. t$telvt C*jr twr ;raLy r ? "VtC Cr an wtai 0aisll t°l a'a:ee stK Ica' r J W� °e >�d1a EDWARD .hMU 11147aB111NT ACCOUNT At1� Page 11 Additionally, and our than, Oile EOwrd James financial advisors qW sell, are free to select. funds from am mutual Detailed Information and discloaores coneornlno fund fudlt „ we " elusivelypr�e mutual fund prefer- row= sherino received from pode:t Pa. CIO ere- Included in the following rename daring summary red prod, autuel funds on our webslte. The vast malaMt�r of 529 plam and lava= products sold by tables. Edwrd Jones mrOlve preferred prodB:t partners. and. as raced For additional Information an a particular product above. each Edwmd Janes.t theme Prodict Partners Pap revere sharing to .the Mos of Orefarred product partaere are partners perm and caapeve"ttan precttcs. please reenter the apple able prosptetos. statearant shorn in Do10 Ord 1g1/a on the following r"Me altering SMFM7 tables, of additional 1Mawtion or offering satemrtt. 528 Fund Campaples: fleamme Sberino Su many Pat 1W Hodlut NMI Aase Fes" (Based on $10.000 of fund assets owned) NBdsvii Sales Fees (For $10.000 of find assets pm"$Sod) Total during 2012 eve Ann* efstrtbetsre. Lro. $1.91 f ! 530.2 Billion F Searltles Corp' 110.00 s0 $0.5 Billion (Based an $10.000 fn 1rvfsnn ofew eetaa. MM $5.06 $8.00 521.0 million 0o1 S"ehs Asset L.P. $13.00 s0 $3.3 million %~CA Polarts grits Of JLersbera //aids$ 1LC 613.00 s0 $13.9 1111111011 Arnrsse sts"amftm zms $13.00 so $13.4 million Iwo eestrferenr tie $10.00 s0 $13.5 million Aso Nine M10,16M n. lei. $9.08 s0 $5.0 Billion t fas A.ft O/sar/eres►, Z. $13.00 so 84.8 Bill P1 Fade Distributor. Ines $_ s 4 $0.4 Bi11 /on 528 Pia PnaBro Nsnae$mau Bargee SMMnB Srwvy Pali 4y Nwdm Ansel Asset Fes (eased an $10.000 of find "Sete Vra0) ftdm sales Fees (Far $10.800 of fiord assets prdnsed) Teal tamp deMng 2 twin Nwlr Msfrfereerw Jar. :1.913 k2 $ 3 � � se ImveamBUts. I nc. $12.50 so $126.225 Iamuroe a it Am dtr Frvdmet FMM&m Maine S o Mme Sommy Paid by pr** ';t WW* hlarRms Mrins MW Be a Sala T�1� ft rMd � � Me � (Based an $10.000 (Per 110.000 of Of "Sets mead) assets purrhased) ANHOW 4th Lesreeie %~CA Polarts grits Of $15.00 $28.00 $6.4 Billion �We variable anultia and Asne"n Flow sulte of wtiable.&MItles Fedeatad Lila cap. Ann (INS) Growth Plus. Fortis $26.00 t $0.2 million ;; Cron and NKlenrlda I Ally suite of variable lm ent }i fl, IMAM A,=100 WMARD JONIM RET014MINT ACCOUNT A01FMMW pop to outstandi 6 Santa r°Pau w "A1 at ai"o Them b an an uo er Santa woad. 'Edrsrd halves revww wino atbr Vm utne d asabaud for artde lnreenoe gyro s u+aq�-Li nele0e LM totladrW. (e1 Ltneole, Mntllh, Poet a ft Protective Pay Paned Jones m hmet =McUrp fees tip to s00 Psr year an Mto1 and/or 1sme01ete vmty Coatraea• W) 2604 Janes Arm u of moment prsdnes an 0eeartb 1 tae eov poltdos. wwd IM o�n ttmrwm pods ms July ' 12033'"' to In 2012. yyerss total rows dw "I serum !y f6ord Jars � 1� tbe'fot100*: (s) N=W Aug fane free Notlbrd * to 1J6.80 bud am 120.080 of verlable VAN. ala fsne up to 126.00 per :10.080 of I A IR2. assets P101I aaa I nd aont+�1 seMetno ha pr yer a ftmd swap /os0 sto eererlty ps/mets it= Nrtlbrd ap to 6.6t m w1WU o iVeru1�11 wad aMvr p se) lift iromnrrcm 1moms baud an P!;�!0u_ tirst_yev !NO1r�ed awraee praMra of solictne of e10.00 bomee an me d auet•bowd 1 rardwF wr3w IRS Notice of Non -Bank Custodian Status for Plans MA KI N , OM` r I NS +waw 9bf . aka yww.r <.aa., r ..r� b.. ma..r • N tm. Jltaat riNN { .xxM aM� t4 cu 11 to fftMt. aFh4a,.x W N iw NWai� s.u.8++4A.iw � �- _ N ! Mtr aM Mw••�atay • u q� y� W' s+a ai e5a�nte. vest at sW d '•••at. eMaN at1. 4' R tf.d A .rM� as E..a�i b tnw p�if uNm t �Mrr. Ji.ra Y+. ry.r� s8. ow�rma.rm < tstrrt - w m M s y.ry r N ` vMt rftR a . w.w�wl. yA Wb+N Yt ,xamef tv. 7 w swhaax.N < ,.. w •zaa.e . r.wat� ,FI1tY NaM. 4m ..'bw»Y .�. �w �uw W GYY.I.�I �Ay�. M�ae1, Ii.Y bw b »a 4t u .N tat -bFiu r N.t +. � �, airN..., '•+.mow ....•mm. +».war N i rw .mw.. !a w ia. saga. iiiw';#u <�... +rni� w� o• .r.mr w w .w.... 4 a. Y 1At- A v.Ob w wat•w ..,uw.wa rw #m w N>ws l.w.wwr w w w.mN n.... w�auro�, i•»ia. +xdar.tw s�ww w awm . c.. d• .N Tw:w � ara nr aar or... a+is� w+ w tw .a.i•tawma...uftn . ..wNi.... eiww a w A <+.. we r wawsw wa«u -a t:wEa" fa:•r�a'<a`w.t ` rd..»• ww�+i."' a w.`:waiii reNU9a Yli 4 awtf../ Y.www w MfI1.mY. W f.awi x. rery3ialr.. M 4 .mY -Ntw I.NS -taW y w 8wlllw .4 Ni1..w0 !1. rN.a� Y s�.r .wmWNw.. N N 4nn•.r. r +SY. 1 .. ;� wY A•NA•j. -i wM..'M..arw w �.++ � �,nY.A u�`w�w N M�IYV ' � ' r {� t b (A uw ia. tsw c � i m i q . � .w�awNw +i wi w t• r�awMY Y dtyu a.wai ani <4SM N sN aw va N. r.H! I. ara 1. ♦. !8. �. �.G%. NSS.t JlA ritf l Ptp. t:.aY1 Mwardl Edwad L4 to Dbdomm dS6lrvlee5, Fern and Olhw C4mponodn— Rm OMM COO= Dbdu= (OQ Amomq Need 9ldualaryo Mm aIamtOem Account NumbWl 6 -1 - 3 9ueieee4 mama FBa Fat) I I no FLZN! aasi71oaA1rr Diaeloaass N�mbert 000403540 ■=iaeaa Addrems 1495 so= aooesvw.T BLVD FA Number: 611095 as lambert Me e! Naar FL 31040 -5260 Dater 02 /10/701 please sobg Fom MmsW Cmmm he Diulmn (see WEWM) Rah m s $atviaa will crate the Edward JoDm Disc ome of Setvims, Fels and Odw Campemdoz — Home OQks Omw m Dbd=me "Ammem . Whey tbb is completd YONM i1Dd this di5d46me whhb Climt Doom== located an the F2 Mmu o f 7oamLiak , You mma the pim B&NWy with a mw type of fmkon pmudm dhelomm ao that ttt y m'y��s&+ay to the pin is evld=dm overall mm ad polodd coomm d hum aad the df4m is IiSht d 5aviam bdus plovidedL For mom iafo�m, p� as W13 W431. Pa®e l of l Drl'aNAI.{NL dA.Y • al0 pa? VDO'rrC53 tlflt'attltls101tBt�lAtLt?C This erriel des Ndrmem dra�Yemsm arer IsOdmeaaf mer.a.d SCHEDULES CONTROVERSIES, GRIEVANCES OR CLAIMS BY ANY EMPLOYEE OR FORMER EMPLOYEE 1. United States Department of Labor Audit of Conch Flyer, Inc. Settled in June, 2013. (See attached documents). 41 - Sumnrarl of Unpaid Wages U.& Department of Labor TOTAL AL ��p�nteo0ro11fa0ooadttoo► wa�andHaiot7MNa otohtel oMor oaown above by cti flywba •oom,..00„ o5owms 3eM Soo* I o mte 09n2/2017 j M"Ft ="3= F+�PbrRl+dratlDMp��► 694060702 DIM I 1. t4tiM 0. PeMOd cvmw 2 Addnq� V ftk 0 4. ACKO) �nwdi ow ewkg Fo=V*I e 312:44:36 PM I • . GoYL 36 F4W Sbaat owam"S Kati Wbst, PL 33M to 0W2M0f2 1 $6K8? . S 16W 173f/f)rsesaas S0mmwAmdKgt PL 33002 to 020MM 1 5266.7! 1-1 e ye • $QBne� �IbNea A 1806 Arslamr Kq► Wb@4 PL 37040 to 0013p/7pi1 1 520.60 ' S004 J 530 +31,-1 Ke 33000 to � 6r1 1 $0.08 801 Duv4d &We 12/2drJ01 • Ste, Kati WWR R 37000 b 07/2!/7012 1 Sa6eo2 ..a�m..�o.�oanrayswow baeb * abauo ros an81v and rov"wlma.MlASywe TOTAL 5 4wj2 ��p�nteo0ro11fa0ooadttoo► cana/iRt�arino: otohtel oMor oaown above by cti flywba •oom,..00„ o5owms 3eM Soo* I o mte ; Kqr NkoB PL 32000 DIM Fo=V*I e 312:44:36 PM I caao 6x 1079526 P 2 i { I U.+epeMleet at I ShOr Wen and Htwr OWN Sated Center, Sully 266 10300 Sunset Drive i Mbmf, FL 331733036 305.59544 305- 270 -5571 BACK WAGE DISBURSFMEK17 AND PAY EVIDENCE INSMUCriONS s i As pgvtdid to m tea m btoed by the WnWHor Dlvleion, toe Admininmtor of da Wp-Hour Divbi- is wt6miad m spa " the prMoss ofbmdk wapa tble dawmat eosWa tpexiRo inameedems m provfdheg avidmee edpymeat to t* We�Div{sioa. bgmum dais to rsmamb•r: 1. Date payment must be suds to emphrom farmer —play— S/3II2013 2. Datm pay aWdmm mast be rndvad W dw6foW PL DIvAn Offim 617/2013 3. Date onloated aspbyea 6ttfeS and Real check dos Miami FL District Ofltes 6114=13 1. F4 an enamor, yaw firm will and m fA back wan P4vum 00 or bafmM 5/31!2013 `{` • At 1* anus lime you should seed dmMiuni FL Dimict OEaa lining of amPkWm bdng pW 1 and d mld melds mpbycdsmm4 •mefai saaoiq aembr. gees sal oat •moons being paid sad ebock number. this should be received is our sins witbla asrm days oh* psymmt of Badmreps. i 2. Seed dw _ W0p-F1sm Divides pry evidence to tbdNusd Fl. Damn O!&ato later don: 617120/3 lt�dmm • SignedWH- SI Recalls! Faem • Copies ddm frost ad bade of emcdW elaeks ors bmk matd formpbryea who won pfd dttoagheleeetaania gods UWbr ( EFT) tar soy Petsos you hero paW but fhr wlam i you do not law a signed meetp. e Listing d owing say amployee who bwsm been paid (dw m miming eddam Qodarwise). 71b Has sbdd mdode the amplayels lea 10*osm address, social seau* numbw and wbst swam You base mods to loom rise Pam 3. i Seal du WagwHGWD{vidm s desk (fbr aB udoaad amploym that You ave h so dgeed WH -Si 6/14=13 f0em om cancelled sack cap) on or before: T*cheekdoddbe - MjF ganuMvW.n– !shad' istbs toed NET motow. Alhy whh theclassic tbodd be Wdng oft* GrosadNet mauub ewb mployw whose Bak vmgm nm mduded is IW dmk along whb *hair Social Security Nmbaa. If aayemPlayse Is 4cosel whhis &a s m wy dme pmiod, dm U.S. Dgmuom of LAW will ptoeeu plym SO Bulb mployw. I i e NOTE: Section 16(c) of the Fair Labor Stadesda Act also provWM in put "Asy soh etnun ampaidmmmI'mi bamaofbWdkywd onswkbknpododottbmmyamdoBbe 1 cams too the Tmasmyofda Usdd gWae lbue[ua. it is the Po*Y oft* Wrap -Haar Division to deposit back wows dam v oloamd o*pigee lam t* U.S. Treacry. • Any deabultd bdmaa slag bon sAim b dm nuemmemt dio*e0eat an pmelry isaeres as rates i , -?X dommined by the U.S. Tfeatary es fequbvd by *A Debt Collecdom Improvemea Act of 1996 (Public Law 104- 134) publialud by dw Secretary of mammy in dw 6edcral Register and other dofingt m charges and administrative amt shag be ahto atwsed. In the event of default. the Depemueat intends to p mm addidoaal action dos may (nehrde, but no lhsdted to, ad laimmodve ado. mkrrd of t6eaccount to credit mpocft ageWM private collection agencies, U.S. Treowls Debt Mang owm Savice, andlor the Department of Justice. Apptrnvad by dw fo bWn Fwdast EMPLOM UNITED STATES DEPARTMENT OF LABOR S y Is 011ker WAGE DOUR DIVLSWN N � i Title: Tide' Dais Dste: 1 Summary d UnpaW Wages U.S. Department of Labor wepeadNewm mm tome.Ae�eq s ��ca�e.°°'RS � °"` ,maome.a od.. 08x22/2013 N 30 s e eM 3MM M= Emp,e,rerFeOTex m Nud.r SO-Z48um 3. Period Cowed 1.Nwa LAdd� byWWkWW* 4•AGO) Mwjftow i En�d6iBg . RetMeK i Om Key Wbaf; R 33000 to 0243M3 1 SM17 813 sism" Road O&MM Ke Y R 33 Key 000 Kay Wast FIL 3300 to OTC!S 1 So" FOMWH4e MAIhmLn 07/301201 / . adw. Key M4 AL 3700 to OZ2=13 51,35L30 38 ! Sb 0?/TilI0f1 ' Canapes_ eae L�a u�aM Key W FL 33040 to OYIIIylOrT 1 i1,D0?.4d 10MONSbeef A02 O3M/1011 Coflhp�, �atlatle O 3x1.1 Key M4 R. 33000 m 00/18x2011 1 SOL70 . o� Ow* Key Key Wb*4 FIL =M to O1/lQ MS 1 5427.43 PORG92M 0 Do KodeD A r W N4 FL 33005 to OGwm11 1 5340.14 1 Duva/ SbMM Apt ! ' FaOey, AMteNe M Key 104e4 FL 33040 m Of/2va"s 1 51,130.52 1013 3vo* Sbwt 07 !1 • F Mkbed R Key INWK FL 33000 0 OZ0312013 1 5333.!3 7MEA11210808DW 03 11 eardw. Ala-wj Key WfM4 FL 3300 M OQx15rl011 1 53AB2 • OCINW61 loom B Kay 1*4 ft 3300 02/2M13 1 51.087.01 -- SEierA w KeyN%KH. 33000 to MUM 1 5084,1 Runw ' Mfebotoy2br0srL E1S- 5V SWU Key WMRFLFL 33040� 0 Ow4mi 1 518170 ' muok M 3230DttatAwnw Key H%K FL 3300 to 1200012 1 53,08842 3355 D MN waw 01l0AM3 • � �' ~T D CQ -1 b` t k4 S Key %b" FL 33040 to 01+01512013 1 !0 P wg LuwM fow FL 33002 1 0 022wZ013 1 53,088!3 lose. peyeewteeetepmwmme 0 P- NeersMAdewe SW t W S14.MAV treat .Uattt du. old to MOO t+I pepeert/sdwlMeOeadtieer o Ca�A 911° abs b 300 Smtlwt RMeewaof W Ke Y R 33 Key 000 a. 4 Cod" s / -- Jo�iv �•c/yryaosva �' M ► ^ T FOMWH4e Dales O¢I2 ?3124433 PM Can 10: 10711520 1 i Pawl SCHEDULE9 EWLOYN WM CONTRACTS None 42 SCHEDULE 10 LIST OF EMPLOYEES AS OF MARCH 15, 2014 Adams, Andrew V. Balbuena, Romaldo F. Berube, Josh Blagg, Jana Briner, Kimberly, K. Cauger, Lynn Cauger, William Garcia, Ruben Gardner, Nancy J. Grandcourt, Charisse, S. Grimm, Jerilyn, O Hein, Mitchell J. Johnson, Kathy Olson, Victor Pearson, Luanne Pellerito, Kenie, D. Phillips, Karla Procher, Ashley Procher, Warren J Richmond, John B. Scharton, Tancy Walgreen, Jeanette Wahnsley, Pamela 43 SCHEDULE 11 MATERIAL SUPPLIERS 1. Henry Lee Food Corporation, Miami, Florida 2. Sysco Food Corporation, Miami, Florida 3. US Foods, Inc., Miami, Florida 4. Pepsi -Cola Bottling Company of Key West, Key West, Florida 5. Gold Coast Distributors, Miami, Florida 6. Silver Eagle Distributors, Key West, Florida 7. Southern Wine and Spirits, Miami, Florida 44 : I D1 111i __ INSURANCE Provided with due diligence materials 511 SCHEDULE 13 INDEBTEDNESS None 46