The Pulse Network, Inc. (OTCPK:TPNI) entered into a securities purchase agreement to acquire You Everywhere Now, LLC from Michael Koenigs, Chief Executive Officer of You Everywhere Now, LLC for $2.5 million on October 3, 2014. As per the terms of the agreement, Pulse Network paid $1.25 million in cash and $1.25 million in promissory note which accrues interest at 6.0% per annum and matures on October 3, 2017. Pulse Network paid $1.25 million in cash through a credit facility of $2.4 million from TCA Global Credit Master Fund, LP pursuant to the terms of a Senior Secured Revolving Credit Facility agreement dated September 30, 2014. In addition, Pulse Network shall pay Michael Koenigs earnout payments not exceeding an amount equal to $3.6 million minus the aggregate amounts of commissions paid to Michael Koenigs, equal to 30% of any Net Sales in excess of $4.5 million, for a period of 3 years (the “Earn-Out Period”) beginning on the first day of the first calendar month following the closing date (the “Earn-Out Start Date”).

Michael Koenigs would be appointed as Chief Strategy Officer in The Pulse Network and would receive an initial annual base salary of $2 million commencing October 3, 2014. Closing of the transaction is conditional upon closing and funding under the credit agreement. Howard Nirken of DuBois, Bryant & Campbell, LLP acted as legal advisor to Michael Koenigs.

The Pulse Network, Inc. (OTCPK:TPNI) completed the acqusition of You Everywhere Now, LLC from Michael Koenigs on October 6, 2014.