TRANSFER AGREEMENT
THIS TRANSFER AGREEMENT(this "Agreement") is made, as of this 1st day ofJanuary,2012 (the"Effective Date"),byandbetween MODERNHOTELS (HOLDINGS)LIMITED,an entityformed underthelaws of theChannelIslands("Modem"), and THE ONE GROUP, LLC, a Delaware limited liability company("TOG"),eachhaving an addressasset forth on the signature page to this Agreement.
WHEREAS,Modem presently has a54.14%ownershipinterest in JECII,LLC, a New
York limited liability company("JEC II");
WHEREAS,Modem desires to transfer to TOG,and TOG desires toaccept fromModem allofits right, title and interest of any nature whatsoever inor to JECII(the "Interest")in consideration of the PurchaseConsideration(as hereinafter defined)in accordance withthe terms herein provided; and
WHEREAS,the parties hereto desire to provide for certainundertakings,conditions, representations,warranties andcovenantsin connection withthetransactioncontemplatedhereby.
NOW, THEREFORE,in consideration of the mutual promises, agreementsandcovenants herein contained and for other good and valuable consideration, thereceipt andadequacyof whichare hereby acknowledged, the parties heretoagree asfollows:
1. Transfer and Deliveries. On the Effective Date:
(a) Modem hereby assigns, transfers, conveys anddeliversto TOG allofits right, title and interest in and to the Interest and TOG hereby assumes all of the rights and liabilities related to the Interest;
(b) In full and final consideration of theInterest, TOG hereby grants toModem the following (the"PurchaseConsideration")19,415membership interest units inTOG (the "TOGInterest")and Modem hereby assumesallof the rights and liabilities related tothe TOG Interest; and
(c) Modem hereby agrees to become a"Member"ofTOG and furtheragreesto be bound byallthe terms and conditionssetforth herein and inthe operating agreement ofTOG (the"TOGOperating Agreement"),and acknowledgesthat each suchprovision isamaterialconditionofTOG's agreement withModern.
2. Representations, Warranties and Covenants of Modem.
Modemrepresents, warrants and covenants to TOGasfollows:
(a) Modem is therecordand beneficial ownerofthe Interestfree and clear ofall claims, liens, charges andencumbrancesand is transferringtoTOGgood titletothe Interestfree and clearofany claims, liens,charges and/or encumbrances.Modemhas thefull right,powerandauthorityto execute, deliverand perform thisAgreementand to assign, transfer,conveyanddeliver to TOG theInterestinaccordance withthe termsofthisAgreement.ThisAgreementhas been duly andvalidly executedand deliveredby Modem and constitutes a valid andbindingagreement ofModemenforceable against itinaccordance with its terms. The execution anddeliveryofthisAgreementby Modemdoesnot,and theperformanceby it of itsobligations hereunder will not (i)constitute a violationof, conflictwith or resultinadefault under,anycontract, agreement or instrument of any kind to whichModemisapartyorbywhichanyofthe Interest is bound,or(ii) violateany judgment,decree,order, law,ruleor regulation applicableto Modem. The transactionscontemplatedhereby have not beenplanned and will notbe effectedwithintent to hinder, delayordefraud anycreditorofModem, and will not otherwise constitute a fraudulenttransferor conveyance under anyapplicablelaw, including section 548ofTitle 11 of the United States Code.
(b) This Agreement transfersall of Modem's right, title,claim and interest of anynaturewhatsoever,in JEC II to TOG,regardless of whether the ownership percentage set forth above representsmore orlessthanModem's actualpercentageof ownershipinJEC II and Modem agreesto execute,atModem's sole cost and expense,any andall additional agreements or otherinstruments necessaryor appropriate,aftertheEffectiveDateto evidencesuch transfer.
(c) Modem isan"accredited investor" andhassignificantprior investmentexperience, includinginvestment in non-listedandnon-registeredsecurities.Modem isknowledgeableaboutinvestmentconsiderationsin unregisteredandrestrictedsecurities.Modem has asufficientnet worthto sustain alossofitsentireinvestmentin TOGin theevent such alossesshouldoccur. Modem's overallcommitment to investmentswhich are not readilymarketable is not excessiveinview of its net worth andfinancialcircumstances.The investmentisa suitable one forModem.
(d) The TOGInterestisnotregistered under the SecuritiesAct of 1933,as amended (the"Act"),orany state securitieslaws.Modem understandsthat the transferof the TOG Interestisintendedto be exemptfrom registrationunder theAct.
(e) Neitherthe Securitiesand Exchange Commissionnoranystate securities commission has approvedthe transferoftheTOG Interestor passed uponor endorsed themeritsofthe transfer.
(f) Modemshallbear theeconomicriskofthe investment in theTOGInterest untilsuchtimeasModem disposesof the TOG Interest consistent with thetermsand provisions of the TOGOperatingAgreement. Modem understandsthat nopublic market now exists for the TOGInterest,thatTOGhas not madeany assurances that a public market will ever exist fortheTOGInterestandthatthe TOG OperatingAgreementprovides only for limited opportunities to liquidate aninvestment inTOG.Inaddition tothe foregoing,Modem herebycovenants and agreestobeboundby the terms and conditions oftheTOGOperatingAgreementapplicableto a"Member"ofTOG.
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(g) Modem has adequate meansof providing for Modem's currentneedsandforeseeablepersonal contingencies andhas noneedfor Modem'sinvestment in theTOGInteresttobeliquid.
(h) Theexecution,deliveryandperformanceby Modem ofthisAgreement are withinthe powers of Modemand willnot constituteorresult ina breach ordefaultunder, orconflictwith,anyorder,rulingorregulationofany courtor other tribunal or of anygovernmentalcommission oragency,orany agreementor other undertaking,towhichModemisapartyorbywhichModemisbound. Thesignature ofModemon this Agreement is genuine, and this Agreement constitutes thelegal,valid and binding obligations ofModem,enforceable in accordance with its terms.
(i) Modem understandsand acknowledges that TOGmakesno representation or warrantyandgivesno assurancetoModemwith respecttothevalueof TOG orJECII, or ofthe TOGInterest ortheInterest. Thetransferofthe Interestrepresentsprivately negotiatedconsideration forthe TOG Interest,and Modem hasdeterminedthatTOG's transfer of the TOGInterest toModemrepresentsfair considerationforModem's transfer ofthe Interestto TOG. Modemhereby irrevocablywaives and releasesTOGand its respective directors,officers,employees, agents and representatives fromanyand all actionsandclaims whatsoever, whether inlawor equity, relatingto the determinationoftheconsideration set forth herein.
U) The representations and warranties contained in thisAgreement shall survivetheEffectiveDate.
3. Representations,Warrantiesand Covenants ofTOG.
TOGrepresents,warrantsandcovenantstoModem as follows:
(a) ThisAgreement grants to Modem theTOGInterestandTOGagrees to execute, at TOG's solecostand expense,anyand all additional agreements or other instrumentsnecessaryor appropriate, after the EffectiveDate toevidence such transfer.
(b) TheInterestis not registered underthe Act, or any state securitieslaws.TOGunderstands that the transferof theInterest isintendedto beexempt from registrationundertheAct,based, inpart,upon therepresentations, warranties,covenantsand agreements of TOGcontained inthis Agreement.
(c) Neitherthe Securitiesand Exchange Commission nor any state securities commissionhasapproved the transfer ofthe Interestor passed upon or endorsed the merits of thetransfer.
(d) The execution, deliveryandperformanceby TOG of thisAgreementare withinthe powersof TOG,have been duly authorizedandwill notconstitute orresultin a breach ordefault under,or conflict with, any order, ruling orregulationof any court or other tribunal or of any governmental commission or agency, or any agreementorother undertaking, to which TOGisa party orbywhich TOG isbound;and willnotviolate anyprovisionofthecharterdocuments,by-laws,indenture oftrust,operating agreement or partnership agreement,asapplicable, of TOG. The signature of TOG onthisAgreement is genuine;thesignatory has beenduly authorizedto executethesame;andthis Agreementconstitutesthe legal, valid andbindingobligations of TOG,enforceable in accordance with its terms.
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(e) Therepresentationsand warranties contained m this AgreementshallsurvivetheEffectiveDate.
4. Miscellaneous.
(a) Ifany one or more oftheprovisions of this Agreementshallformyreason beheldinvalid or unenforceable in whole or in part, such invalidityorunenforceabilityshall notaffectanyother provision hereof,andthis Agreement shallbeconstrued as if suchinvalidorunenforceableprovision was not containedherein,or was contained herein only to the extent the same was enforceable.
(b) This Agreement maynot be amendedexceptby an instrument inwritingsigned onbehalfof eachof thepartieshereto.
(c) This Agreement constitutestheentire Agreement between the parties pertaining to the subjectmatter hereofand supersedes allprioragreementsandunderstandings both written and oralbetween the partieswith respect to the subject matter hereof.
(d) Each of ModernandTOG each acknowledge and agree that JEC II may rely on each of their respectiverepresentations,warranties, covenants and agreementssetforth in this Agreement. Modern acknowledgesandagrees that TOG may rely on itsrepresentations,warranties, covenantsandagreementssetforth in thisAgreement.
(e) ThisAgreementshallbegovernedby andconstrued in accordance withthe laws of theState of New York withoutreference toitsprinciplesof conflicts oflaw.
(f) This Agreement shallbe bindingand inure to the benefit of the heirs, personal andlegal representatives,successors and assigns of the parties.
(g) This Agreementmay beexecuted in separate counterparts, each of which shallbe deemed anoriginal,butall of whichtogethershall constitute oneandthesameinstrument.
(h) The paragraph headings and captions hereinareforconvenienceof reference only andshall notaffect in any way the meaning orinterpretationof this Agreement.
(i) Allnotices,requests or other communications hereundershallbe in writing and shallbe deliveredinpersonor sentbyovernight courierserviceorbyregistered or certifiedmail,postage prepaid, and shallbe deemedgivenupon thedate of receiptifdelivered inperson or sent by overnight courier service, or after threedaysif mailed, in each case addressed to the parties at the respective addressesset forthon the signature page to this Agreement with acopy to JECIIandtheTOG, both having an address at 411 West 14111 Street, 3rd Floor,NewYork, New York,10014.
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(j) EachofModem andTOG acknowledgesandagrees that TheGiannuzzi Group,LLP has prepared this Agreement at the request of TOGandthatTheGiannuzzi Group,LLPhassolelyrepresented the interests of TOG in connection withthenegotiationanddrafting(andany andallmatters relating thereto)ofthis Agreement.Modemfurtheracknowledges and agreesthat Modem has, prior toexecutingthis Agreement, retainedseparate,independent legal and taxcounselto review and analyze this Agreement and all of the termsset forth hereinand has not relied on the advice or counsel of The Giannuzzi Group,LLP, orany oftheir attorneys,in entering into this Agreement.
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IN WITNESS WHEREOF,the parties have duly executed and delivered this Transfer Agreement as of the date and year first above written.
MODERN: | |
MODERN HOTELS (HOLDINGS) LIMITED | |
By: | /s/ Jonathan Segal | |
Name: Jonathan Segal | ||
Title: M.D. |
Address: | The Metropole | |
Roseville Street | ||
St. Helier, Jersey, C.l |
TOG: | |
THE ONE GROUP,LLC |
By: | /s/ Samuel Goldfinger | |
Name: Samuel Goldfinger | ||
Title: CFO |
Address: | 411 West 14th Street, 3rd Floor | |
New York, New York 10014 |
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