Document:

gezc_ex102.htm

EXHIBIT 10.2
   
  ASSETS PURCHASE AGREEMENT
   
  This Assets Purchase Agreement (the “Agreement”) is made and entered into on the 20thday of January, 2015 by and among:
   
  Cellular of Miami Beach, Inc., a Florida corporation (the “Seller”);
   
  Roger Ng (the “Shareholder”), the owner of all of the issued and outstanding shares of capital stock of the Seller; and
   
  Federal Technology Agency Inc, a Delaware corporation (the “Purchaser”).
   
  R E C I T A L S
   
  A. Seller is engaged in the retail of mobile telecommunications products. And the Shareholder is the sole owner, of record and beneficially, of all of Seller’s issued and outstanding capital stock.
   
  B. Purchaser desires to enter the mobile telecommunications business performing retailing and minutes-top-up services, and desires to purchase the business operations of Seller. All of such business operations of Seller desired to be purchased by Purchaser is referred to as the “Business.”
   
  C. Subject only to the limitations and exclusions contained in this Agreement and on the terms and conditions of this Agreement, Seller desires to sell to the Purchaser and the Shareholder desires that the Seller sells to the Purchaser, and the Purchaser desires to buy from the Seller, the Business and certain assets, properties and rights of the Seller described in this Agreement.
   
  NOW, THEREFORE, in consideration of the recitals and of the representations, warranties, covenants and agreements contained, and intending to be legally bound, the parties agree as follows:
   
  ARTICLE I—PURCHASE AND SALE
   
  	  1.1
	  Agreement to Sell. At the Closing (as defined in Section 2.1) and except as otherwise specifically provided in this Section 1.1, the Seller will, and the Shareholder will cause the Seller to, validly and effectively grant, sell, convey, assign, transfer and deliver to the Purchaser, upon and subject to the terms and conditions of this Agreement, (a) all of the Seller’s right, title and interest in and to (i) the Business as a going concern, and (ii) certain of the Seller’s assets set forth in Section 1.1.1, properties and rights constituting the Business or used in the Business, which are described in this Agreement, free and clear of all liens, pledges, security interests, charges, claims, restrictions and encumbrances of any nature whatsoever, and (iii) all of the Seller’s rights, title and interest in the name “Cellular of Miami Beach, Inc.,” or any derivative thereof. The Business, name, and assets, properties and rights being sold are called the “Assets.”

   
  	 
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  	 	  1.1.1
	  Included Assets. The Assets referred to in Section 1.1(a)(ii) shall include, without limitation, the following assets, properties and rights of Seller used directly or indirectly in the conduct of, or generated by or constituting, the Business, except as otherwise expressly set forth in this Agreement:

   
  	 	 	  (a)
	  all machinery, equipment, tools, vehicles, furniture, furnishings, leasehold improvements, goods and any rights under lease to use such machinery, vehicles, furnishings and equipment and those items of personal property and other tangible personal property;

	 	 	   
	 
	 	 	  (b)
	  the corporate seals, certificates of incorporation, minute books, stock books, tax returns, books of account and/or other records having to do with corporate organization of Seller

	 	 	   
	 
	 	 	  (c)
	  any cash or cash equivalents held by or on behalf of Seller;

	 	 	   
	 
	 	 	  (d)
	  all securities;

	 	 	   
	 
	 	 	  (e)
	  all office and other supplies;

	 	 	   
	 
	 	 	  (f)
	  all inventory;

	 	 	   
	 
	 	 	  (g)
	  all rights under any written or oral contract, agreement, plan, instrument, registration, license, certificate of occupancy, other permit, certification, authorization or approval of any nature, or other document, commitment, arrangement, undertaking, practice or authorization;

	 	 	   
	 
	 	 	  (h)
	  all rights under any patent, trademark, service mark, trade name or copyright, whether registered or unregistered, and any applications therefore;

	 	 	   
	 
	 	 	  (i)
	  all technologies, methods, formulations, data bases, trade secrets, knowhow, inventions and other intellectual property used in the Business or under development;

	 	 	   
	 
	 	 	  (j)
	  all rights or choices in action arising out of occurrences before or after the Closing, including without limitation all rights under express or implied warranties relating to the Assets, exceptrelating to Excluded Assets in 1.1.2;

	 	 	   
	 
	 	 	  (k)
	  all records, manuals and other documents (collectively, the “Records”) relating to or used in connection with the Seller’s quality assurance/quality control programs, if any, developed for the Business, records relating to personnel qualifications in connection with the quality assurance/quality control program and administration of any quality assurance program; provided, however, that after the Closing the Purchaser will promptly provide Seller with access to and copies of any original documents comprising the Records which Seller or the Shareholder requests;

	 	 	   
	 
	 	 	  (l)
	  all work in process, meaning all claims for services performed or goods sold prior to the Closing and billed by the Seller;

   
  	 
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  	 	 	  (m)
	  all notes receivable owing to the Seller;

	 	 	   
	 
	 	 	  (n)
	  all Maintenance Contracts, except those set forth on Schedule 1.1.1(j);

	 	 	   
	 
	 	 	  (o)
	  all the rights that accrue or will accrue to Seller under this Agreement;

	 	 	   
	 
	 	 	  (p)
	  all the rights to any of Seller’s claims for any federal, state, local, or foreign tax refunds;

	 	 	   
	 
	 	 	  (q)
	  the computer, computer lease and software and

	 	 	   
	 
	 	 	  (r)
	  the real property;

	 	 	   
	 
	 	 	  (s)
	  all information, files, records, data, plans, and contracts and recorded knowledge, including customer and supplier lists related to the foregoing that the Purchaser may request; provided, however, that after the Closing the Purchaser will promptly provide Seller and Shareholder with access to and copies of any original of the foregoing documents comprising the Records which Purchaser requests;

	 	 	   
	 
	 	 	  (t)
	  the maintenance and service contracts;

	 	 	   
	 
	 	 	  (u)
	  all telephone numbers to its Business;

	 	 	   
	 
	 	 	  (v)
	  all accounts receivable invoiced by Seller relating to the Business

	 	 	   
	 
	 	 	  (w)
	  The Independent Contractor Agreement executed between the Seller and the contractor Mrs. Luciana Glas dated 12/23/2014.

   
  	  1.2
	  Agreement to Purchase. At the Closing, Purchaser shall purchase the Assets from Seller, upon and subject to the terms and conditions of this Agreement and in reliance on the representations, warranties and covenants of Seller and Shareholder, in exchange for the Purchase Price (hereinafter defined in Section 1.2.1). Except as specifically provided in Section 1.3, Purchaser shall not assume or be responsible for any liabilities or obligations of the Business or Seller.

   
  	 	  1.2.1
	  The Purchase Price; Payment.

	 	   
	   

	 	   
	  The purchase price shall be sixty thousand ($60,000.00) dollars worth of Go Ez Corporation preferred shares Series B and a $25,000 Promissory Note issued to the Seller. Said Promissory Note will not carry any interest and matures one year from the date of the closing of this transaction.

   
  	  1.3
	  Allocation of Purchase Price. The Purchase Price shall be allocated among the Assets acquired. This allocation was arrived at in arm’s length negotiations between the parties. The parties covenant and agree with each other that none of them will take a position on any income tax or in any judicial proceeding.

   
  	 
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  ARTICLE II—CLOSING, ITEMS TO BE DELIVERED, THIRD-PARTY
  CONSENTS, CHANGE IN NAME AND FURTHER ASSURANCES
   
  	  2.1
	  Closing. The closing (the “Closing”) of the sale and purchase of the Assets shall take place at the offices of the Purchaser, commencing on January 16th, 2015, or at such other place, date and time as shall be mutually satisfactory to the parties hereto. The date of the Closing is sometimes referred to as the “Closing Date.”

   
  	  2.2
	  Items to be Delivered at Closing. At the Closing and subject to the terms and conditions contained in this Agreement:

   
  	 	  (a)
	  The Seller will, and the Shareholder will cause the Seller to, deliver to the Purchaser the following:

   
  	 	 	  (i)
	  such bills of sale with covenants of warranty, assignments, endorsements, and other good and sufficient instruments and documents of conveyance and transfer, in form and substance satisfactory to the Purchaser and its counsel, as shall be necessary and effective to convey, transfer and assign to, and vest in, the Purchaser all of the Seller’s right, title and interest in and to the Assets to be sold under this Agreement, including, without limitation, (A) good, valid and marketable title in and to all of the Assets owned by the Seller, (B) good and valid leasehold interests in and to all of the Assets leased by the Seller, and (C) all of the Seller’s rights under all agreements, contracts, commitments, leases, plans, bids, quotations, proposals, licenses, permits, authorizations, instruments and other documents to which the Seller is a party or by which it has rights on the Closing Date and which are to be sold under this Agreement; and

	 	 	   
	 
	 	 	  (ii)
	  all agreements, contracts, commitments, leases, plans, bids, quotations, proposals, licenses, permits, authorizations, instruments, manuals and guidebooks, price books and price lists, customer and subscriber lists, supplier lists, sales records, files, correspondence, and other documents, books, records, papers, files and data belonging to the Seller which are part of the Assets or relate to the Business of the Seller; and simultaneously with such delivery, all such steps will be taken as may be required to put the Purchaser in actual possession and operating control of the Assets.

	 	 	   
	 
	 	 	  (iii)
	  Florida State Sales Tax Return for its sales tax liability for the taxable portion of the Assets and shall file it with its check for the sales tax disclosed upon the return with the Florida State Sales Tax Department.

   
  	 
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  	  2.3
	  Third-Party Consents. To the extent that the Seller’s rights under any agreement, contract, commitment, lease, license, permit, authorization or other Asset to be assigned to the Purchaser may not be assigned without the consent of another person which has not been obtained, this Agreement shall not constitute an agreement to assign the same if an attempted assignment would constitute a breach or be unlawful, and the Seller shall use its best efforts to obtain any such required consent(s) promptly. If any such consent shall not be obtained or if any attempted assignment would be ineffective or would impair the Purchaser’s rights under the instrument in question so that the Purchaser would not in effect acquire the benefit of all such rights, the Seller, to the maximum extent permitted by law and the instrument, shall act as the Purchaser’s agent in order to obtain for it the benefits and shall cooperate, to the maximum extent permitted by law and the instrument, with the Purchaser in any other reasonable arrangement designed to provide such benefits to the Purchaser.

	   
	   

	   
	  If any contract shall be assigned, the Purchaser shall agree to be bound by and assume all of its terms and conditions.

   
  	  2.4
	  Change in and Use of Name. The Seller and the Shareholder shall take all such actions not later than the Closing Date as may be required to change the Seller’s name on that date to one distinctly different in sound and appearance from its present name, including but not limited to filing a name change amendment with the Secretary of State of the State of Florida and filing an appropriate name change notice in the appropriate office in each state where the Seller is qualified to do business. After the Closing, the Purchaser shall have the right to use the name Cellular of Miami Beach, Inc., or any similar variant thereof after the Closing Date, and the Seller and the Shareholder will take all necessary steps to permit the Purchaser to use this name.

	   
	 
	  2.5
	  Further Assurances. The Seller from time to time after the Closing, at the Purchaser’s request, will execute, acknowledge and deliver to the Purchaser such other instruments of conveyance and transfer and will take such other actions and execute and deliver such other documents, certifications and further assurances as the Purchaser may reasonably request in order to vest more effectively in the Purchaser, or to put the Purchaser more fully in possession of, any of the Assets, or the Business.

   
  ARTICLE 3—REPRESENTATIONS AND WARRANTIES
   
  3.1 Representations and Warranties of the Seller and the Shareholder. The Seller and the Shareholder jointly and severally represent and warrant to the Purchaser as of the date of this Agreement and the Closing Date as follows:
   
  3.1.1 Corporate Existence; Certificate of Incorporation and ByLaws.
   
  (a) The Seller is a corporation duly organized, validly existing and in good standing under the laws of the State of Florida. The Seller has all requisite power and authority and all necessary licenses, permits and authorizations to carry on its business as it has been and is being conducted and to own, lease and operate the assets and properties used in connection therewith. A list of the Seller’s licenses, permits and authorizations is attached as part of Schedule 3.1.1(a). The Seller is duly qualified to do business and is in good standing as a foreign corporation in each jurisdiction where the character of the properties owned or leased by it or the nature of the business transacted by it requires it to be so qualified, all of which jurisdictions are listed on Schedule 3.1.1(a).
   
  	 
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  (b) A copy of the Seller’s Certificate of Incorporation and all amendments effected prior to the date of this Agreement and of the Seller’s By-Laws as amended to the date of this Agreement have been delivered to the Purchaser and are correct and complete.
   
  3.1.2 Corporate Power; Authorization: Enforceable Obligations. The Seller has the corporate power, authority and legal right to execute, deliver and perform this Agreement. The execution, delivery and performance of this Agreement by the Seller have been duly authorized by all necessary corporate and shareholder action. This Agreement has been, and the instruments of transfer, assignment and conveyance referred to in Section 2.2(a)(i) will be, duly executed and delivered by a duly authorized officer of the Seller, and this Agreement constitutes, and such instruments when executed and delivered will constitute, legal, valid and binding obligations of the Seller enforceable against the Seller in accordance with their respective terms.
   
  3.1.3 The Shareholder. The Shareholder is the lawful owner of record and beneficially of all of the issued and outstanding shares of capital stock of the Seller. The Shareholder has the power, authority and legal right to execute, deliver and perform this Agreement. This Agreement has been duly executed and delivered by the Shareholder and constitutes the legal, valid and binding obligation of the Shareholder enforceable against the Shareholder in accordance with its terms.
   
  3.1.4 Financial Statements. The Seller shall deliver its balance sheet as of December 31, 2014 and the related statements of income and retained earnings and notes thereto (the “Financial Statements”). These statements will be prepared by a certified public accountant and will be complete and correct and will present the complete and correct financial position and assets and liabilities of the Seller as of December 31, 2014 and the results of its operations for the year then ended, in conformity with generally accepted accounting principles applied on a consistent basis.
   
  3.1.5 Absence of Undisclosed Liabilities. The Seller has no liabilities or obligations, either accrued, absolute, contingent or, to the best of knowledge of the Seller and the Shareholder, after a due, proper and complete investigation, otherwise, except those liabilities and obligations set forth on the Financial Statements and not heretofore paid or discharged.
   
  For purposes of this Agreement, the term “liabilities” shall include, without limitation, any direct or indirect indebtedness, guaranty, endorsement, claim, loss, damage, deficiency, cost, expense, obligation or responsibility, whether known or unknown, fixed or unfixed, choate or inchoate, liquidated or unliquidated, secured or unsecured.
   
  3.1.6 Existing Condition. Except as disclosed on Schedule 3.1.8, since December 31, 2014 the date of the last Financial Statement, the Seller has not:
   
  (a) declared, set aside or paid any dividend or made or agreed to make any other distribution or payment in respect of or agreed to make any other distribution or payment in respect of its capital shares or redeemed, purchased or otherwise acquired or agreed to redeem, purchase or acquire any of its capital shares;
   
  	 
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  (b) incurred any liabilities, or discharged or satisfied any lien or encumbrance, or paid any liabilities, other than in the ordinary course of its business consistent with past practice, or failed to pay or discharge when due any liabilities of which the failure to pay or discharge has caused or will cause any material damage or risk of material loss to it or any of its assets or properties;
   
  (c) sold, assigned or transferred any of its assets or properties, other than in the ordinary course of its business;
   
  (d) created, incurred, assumed or guaranteed any indebtedness for money borrowed, or mortgaged, pledged or subjected to any lien, pledge, security interest, conditional sales contract or other encumbrance of any nature whatsoever against any of its assets or properties;
   
  (e) made or suffered any amendment or termination of any agreement, contract, commitment, lease or plan to which it is a party or by which it is bound, or canceled, modified or waived any debts or claims held by it, or waived any rights of substantial value;
   
  (f) suffered any damage, destruction or loss, whether or not covered by insurance, materially and adversely affecting its business, operations, assets, properties, prospects or condition (financial or otherwise);
   
  (g) suffered any change in its financial condition or in the nature of its business or operations which has had or might have a material adverse effect on its business, operations, assets, properties, prospects or condition (financial or otherwise);
   
  (h) made any capital expenditure or capital addition or betterment except such as may be involved in the ordinary repair, maintenance and replacement of its assets;
   
  (i) increased the salaries or other compensation of, or made any advance (excluding advances for ordinary and necessary business expenses) or loan to, any of its directors, officers or employees or the Shareholder, or made any increase in, or any addition to, other benefits to which any of its directors, officers or employees or the Shareholder may be entitled;
   
  (j) made any payment to the Shareholder with respect to any indebtedness owed by the Seller to the Shareholder; or
   
  (k) entered into any transaction other than in the ordinary course of its business consistent with past practice.
   
  3.1.7 Title to Properties; Leasehold Interests. The Seller has good, valid and marketable title to the Assets to be sold, including all of the properties and assets reflected on the December 31, 2014 Financial Statements and those acquired since that date, free and clear of all liens, pledges, security interests, charges, claims, restrictions and other encumbrances and defects of title of any nature whatsoever.
   
  	 
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  To the best of knowledge of the Seller and the Shareholder, after a due, proper and complete investigation, all leases, licenses, permits and authorizations in any manner related to the assets, properties or business of the Seller and all other instruments, documents and agreements pursuant to which the Seller has obtained the right to use any real or personal property are in good standing, valid and effective in accordance with their respective terms, and there is not under any of such leases, licenses, permits, authorizations, instruments, documents or agreements any existing default or event which with notice or lapse of time, or both, would constitute a default and in respect of which the Seller has not taken adequate steps to prevent a default from occurring. The Seller has the unrestricted right to sell the Assets as herein provided. The Seller does not own any real property,
   
  ARTICLE IV—COVENANTS PRIOR TO CLOSING
   
  	  4.1
	  Conduct of Business. Until the Closing, the Seller shall:

   
  	 	  (a)
	  conduct the Business in the normal, useful and regular manner;

	 	   
	 
	 	  (b)
	  not enter into any contract, including but not limited to, contracts for the performance of services without the Purchaser’s approval;

	 	   
	 
	 	  (c)
	  not advertise or conduct inventory reduction sales or reduce the prices of any items ofinventory without Purchaser’s approval;

	 	   
	 
	 	  (d)
	  not increase the compensation of any employee or change the personnel without Purchaser’s approval;

	 	   
	 
	 	  (e)
	  use its best efforts to preserve the Business; to keep available to Purchaser the services of the present employees; to preserve the goodwill of Seller’s suppliers, customers and others having business relations with Seller;

	 	   
	 
	 	  (f)
	  Permit Purchaser’s representatives to remain on the business premises during normal business hours and to observe the operation of the business wherever conducted; provided Purchaser’s representatives do not interfere with Seller’s business operations.

	 	   
	 
	 	  (g)
	  4.2 No Shop. Neither the Shareholder, the Seller, nor any agent, employee, officer, director, trusteeor any representative of any of the foregoing will, during the period commencing on the date of this Agreement and ending with the earlier to occur of the Closing Date or the termination of this Agreement in accordance with its terms, directly or indirectly, solicit or initiate the submission of proposals or offers from any person or entity for, participate in any discussions pertaining to, or furnish any information to any person or entity other than the Purchaser or the Purchaser’s authorized agent, relating to any acquisition or purchase of all or a material amount of the assets of,or any equity interest in, the Seller or any merger, consolidation or business combination of or involving the Seller.

   
  	 
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  ARTICLE V—CONDITIONS PRECEDENT TO THE CLOSING
   
  	  5.1
	  Conditions Precedent to the Purchaser’s Obligations. All obligations of the Purchaser under this Agreement are subject to the fulfillment or satisfaction, prior to or at the Closing, of each of the following conditions precedent, any of which may be waived by the Purchaser in its sole and absolute discretion:

   
  	 	  5.1.1
	  Representations. All representations and warranties of the Seller and the Shareholder being true complete and correct at the Closing.

	 	   
	 
	 	  5.1.2
	  Performance by the Seller and the Shareholder. The Seller and the Shareholder shall have performed and complied with all agreements and conditions required by this Agreement to be performed or complied with by each of them prior to or at the Closing; and the Purchaser shall have been furnished with a certificate or certificates of the Seller and the Shareholder, dated the Closing Date, signed by the President of the Seller and the Shareholder, certifying, in such detail as the Purchaser may reasonably request, to the fulfillment of the foregoing condition.

	 	   
	 
	 	  5.1.3
	  Litigation Affecting Closing. On the Closing Date, no proceeding shall be pending or threatened before any court or governmental agency in which it is sought to restrain or prohibit or to obtain damages or other relief in connection with this Agreement or the consummation of the transactions contemplated hereby, and no investigation that might eventuate in any such suit, action or proceeding shall be pending or threatened.

	 	   
	 
	 	  5.1.4
	  Corporate Matters. The Seller shall have furnished the Purchaser with certified copies of all such corporate documents of good-standing certificates for the Seller, and of all proceedings of the Seller authorizing the transactions hereby contemplated as the Purchaser reasonably shall require.

	 	   
	 
	 	  5.1.5
	  Approvals. The holders of any indebtedness of the Seller or Shareholder, the lessors of any real or personal property or assets leased by the Seller, the parties (other than the Seller) to any agreement, contract or commitment to which the Seller is a party, any governmental agency or body or any other person, firm or corporation which owns or has authority to grant any franchise, license, permit, right or other authorization necessary for the business or operations of the Seller, to the extent that their consent or approval is required, necessary or, in the opinion of the Purchaser, desirable under the pertinent debt, lease, agreement, contract or commitment or other document or instrument or under applicable laws, rules or regulations for the consummation of the transactions contemplated hereby in the manner herein provided, shall have granted such consent or approval without resulting in the modification, cancellation or termination of any such lease, agreement, contract or commitment or of any such franchise, license, permit, right or other authorization or the subjection of the Purchaser to any law, rule, regulation or condition which, in the judgment of the Purchaser, shall be unduly burdensome. The holders of any indebtedness of the Seller or Shareholder shall release any real property, personal property and assets leased by the Seller and other assets which are part of the Assets from any lien or other security interests pertaining to such assets.

   
  	 
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  	 	  5.1.6
	  Liens and Encumbrances. On or before the Closing, the Purchaser shall have obtained a release and discharge of any and all liens, security interests, restrictions, defects and encumbrances which affect the Business or Assets to be transferred.

	 	   
	 
	 	  5.1.7
	  Material Damage. The business, operations, Assets, properties, prospects or condition (financial or otherwise) of the Seller shall not be, or be threatened to be, adversely affected by fire, explosion, earthquake, disaster, accident, cessation or interruption of utility or other services, flood, drought, contamination of water supply, embargo, riot, civil disturbance, uprising, activity of armed forces or act of God or public enemy, or any other event or occurrence.

	 	   
	 
	 	  5.1.8
	  Tax Obligations. Prior to the Closing the Purchaser shall notify the State of New York of the proposed sale of assets under this Agreement. Purchaser shall hold the Purchase Price and other consideration under this Agreement in an interest-bearing account for Seller’s benefit and in accordance with any notice from the State of New York and applicable provisions of law.

   
  	  5.2
	  Conditions Precedent to the Seller’s and the Shareholder’s Obligations. All obligations of the Seller and Shareholder under this Agreement are subject to the fulfillment or satisfaction, prior to or at the Closing, of each of the following conditions precedent, any of which may be waived by the Seller and the Shareholder, in their sole and absolute discretion:

   
  	 	  5.2.1
	  Representations. All representations and warranties of the Purchaser being true, complete and correct at the Closing.

	 	   
	 
	 	  5.2.2
	  Performance by the Purchaser. The Purchaser shall have performed and complied with all agreements and conditions required by this Agreement to be performed or complied with by it prior to or at the Closing; and the Seller and the Shareholder shall have been furnished with a certificate or certificates, dated the Closing Date, signed by the President of the Purchaser, certifying, in such detail as the Seller and the Shareholder may reasonably request, to the fulfillment of the foregoing condition.

	 	   
	 
	 	  5.2.3
	  Litigation Affecting Closing. On the closing Date, no proceeding shall be pending or threatened before any court or governmental agency in which it is sought to restrain or prohibit or to obtain damages or other relief in connection with this Agreement or the consummation of the transactions contemplated hereby, and no investigation that might eventuate in any such suit, action or proceeding shall be pending or threatened.

	 	   
	 
	 	  5.2.4
	  Corporate Matters. The Purchaser shall have furnished the Seller and the Shareholder with certified copies of all such corporate documents of, and good-standing certificates for, the Purchaser and of all such proceedings of the Purchaser authorizing the transactions hereby contemplated, as the Seller and the Shareholder reasonably shall require.

   
  	  5.3
	  Termination. In the event any of the conditions contained in Sections 5.1 and 5.2 are not satisfied and the conditions shall not have been waived, this Agreement shall terminate upon notice by one party to the other and neither party shall have any liability or obligation of any kind or nature to the other.

   
  	 
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  ARTICLE VI—POST-CLOSING MATTERS
   
  	  6.1
	  No Solicitation or Hiring. The Seller and the Shareholder agree that neither they nor any affiliate of either of them will solicit, employ or in any other fashion hire persons who are employees of the Seller on the date hereof for a period of one year after the Closing, unless such persons have been discharged by the Purchaser.

	   
	 
	  6.2
	  Escrow. On and after the Closing, Purchaser shall hold in escrow the Purchase Price and other consideration under this Agreement in accordance with the terms of any notice from the New York State Tax Commission.

   
  ARTICLE VII—MISCELLANEOUS
   
  	  7.1
	  Brokers’ and Finders’ Fees. The Seller and the Shareholder jointly and severally represent and warrant to the Purchaser, and the Purchaser represents and warrants to the Seller or Shareholder that all negotiations relative to this Agreement have been carried on by the parties directly without the intervention of any person who may be entitled to any brokerage or finder’s fee or other commission in respect of this Agreement or the consummation of the transactions contemplated hereby, and the Seller and the Shareholder jointly and severally agree to indemnify and hold harmless the Purchaser, and the Purchaser agrees to indemnify and hold harmless the Seller and Shareholder, as the case may be, against any and all claims, losses, liabilities and expenses which may be asserted against or incurred by them as a result of either party’s dealings, arrangements or agreements with any such person.

	   
	 
	  7.2
	  Sales. Transfer and Documentary Taxes, etc. Neither the Seller nor the Purchaser shall be responsible for the other’s sales, transfer or documentary taxes, if any, due as a result of the transfer of the Assets to the Purchaser, or all other fees directly relating to the transfer of the Assets.

	   
	 
	  7.3
	  Expenses. The parties shall pay their own expenses incidental to the preparation of this Agreement, the carrying out of the provisions of this Agreement and the consummation of the transactions contemplated hereby.

	   
	 
	  7.4
	  Remedy. The Seller and the Shareholder acknowledge that the Assets are unique and not otherwise available and agree that, in addition to any other remedy available to the Purchaser, the Purchaser may invoke any equitable remedy to enforce performance hereunder, including, without limitation, the remedy of specific performance.

   
  	 
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  	  7.5
	  Contents of Agreement; Parties in Interest; etc. This Agreement sets forth the entire understanding of the parties with respect to the transactions contemplated hereby. It shall not be amended or modified except by written instrument duly executed by each of the parties hereto. Any and all previous agreements and understanding between or among the parties regarding the subject matter hereof, whether written or oral, are superseded by this Agreement.

	   
	 
	  7.6
	  Assignment and Binding Effect. Neither the Seller nor the Purchaser shall assign this Agreement nor any part of it, nor delegate any obligation imposed by this Agreement without the prior written consent of the other. All of the terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable by the successors and assigns of the Seller, Shareholders and Purchaser.

	   
	 
	  7.7
	  Waiver. Any term or provision of this Agreement may be waived at any time by the party or parties entitled to the benefit thereof by a written instrument duly executed by such party or parties.

	   
	 
	  7.8
	  Notices. Any notice, request, demand, waiver, consent, approval or other communication which is required or permitted hereunder shall be in writing and shall be deemed given only if delivered personally or sent by telegram or by fax or by registered or certified mail, postage prepaid, as follows:

   
  If to the Purchaser to:
   
  Federal Technology Agency Inc.
  1047 Amarillo Avenue
  Palo Alto California, 94303
   
  If to the Seller and/or the Shareholder, to:
   
  Cellular of Miami Beach
  6782 Collins Avenue
  Miami Florida
   
  or to such other address as the addressee may have specified in a notice duly given to the sender as provided herein. Such notice, request, demand, waiver, consent, approval or other communication will be deemed to have been given as of the date so delivered, telegraphed, faxed or mailed.
   
  	  7.9
	  Florida Law to Govern. This Agreement shall be governed by and interpreted and enforced in accordance with the laws of the State of Florida.

	   
	 
	  7.10
	  No Benefit to Others. The representations, warranties, covenants and agreements contained in this Agreement are for the sole benefit of the parties hereto and the other indemnified parties, and their heirs, administrators, legal representatives, successors and assigns, and they shall not be construed as conferring any rights on any other persons.

   
  	 
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  	  7.11
	  Headings, Gender and “Person.” All section headings contained in this Agreement are for convenience of reference only, do not form a part of this Agreement and shall not affect in any way the meaning or interpretation of this Agreement. Words used herein, regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires. Any reference to a “person” herein shall include an individual, firm, corporation, partnership, trust, governmental authority or body, association, unincorporated organization or any other entity.

	   
	 
	  7.12
	  Tax Consequences. No party to this Agreement, nor any of their officers, employees or agents has made any representation or agreement, express or implied, as to the tax consequences of the transactions contemplated by this Agreement or the tax consequences of any action pursuant to or arising out of this Agreement.

	   
	 
	  7.13
	  Severability. Any provision of this Agreement which is invalid or unenforceable in any jurisdiction shall be ineffective to the extent of such invalidity or unenforceability without invalidating or rendering unenforceable the remaining provisions hereof, and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

	   
	 
	  7.14
	  Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute the same Agreement. Any signature page of any such counterpart, or any electronic facsimile thereof, may be attached or appended to any other counterpart to complete a fully executed counterpart of this Agreement, and any telecopy or other facsimile transmission of any signature shall be deemed an original and shall bind each Party.

	   
	 
	  7.15
	  Guarantee. Shareholder unconditionally guarantees to Purchaser and its affiliates the full and timely performance of all of the obligations and agreements of Seller. The foregoing guarantee shall include the guarantee of the payment of all damages, costs and expenses which might become recoverable as a result of the nonperformance of any of the obligations or agreements so guaranteed or as a result of the nonperformance of this guarantee. Any guaranteed person may, at its option, proceed against Shareholder for the performance of any such obligation or agreement, or for damages for default in the performance thereof, without first proceeding against any other party or against any of its properties. Shareholder further agrees that his guarantee shall be an irrevocable guarantee and shall continue in effect notwithstanding any extension or modification of any guaranteed obligation, any assumption of any such guaranteed obligation by any other party, or any other act or thing which might otherwise operate as a legal or equitable discharge of a guarantor and the Shareholder waives all special surety ship defenses and notice requirements.

    
  	 
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  IN WITNESS WHEREOF, the parties have duly executed this Agreement on the date first written.
   
  	 	  Cellular of Miami Beach, Inc.
	 
	 	 	 	 
	Date: 01-20-2015	By:		 
	 	Name:	Roger Ng	 
	 	Title:	President	 
				
				
		  Federal Technology Agency
	
				
	Date: 01-20-2015	By:		
		Name:	Abraham Dominguez Cinta	
	 	Title	CEO	 

   
   
  14gezc_ex103.htm

EXHIBIT 10.3
  STOCK PURCHASE AGREEMENT
   
  THIS STOCK PURCHASE AGREEMENT (this “Agreement”) is entered into and effective as of April 22, 2014, by and among Evotech Capital S.A., a privately-held company organized under the laws of the British Virgin Islands (the “Buyer”); and E.R.C. Energy Recovery Corporation, a Delaware corporation (the “Company”), and David C. Merrell and Michael C. Brown, two individuals who together hold the majority share and voting interest in the Company but who are acting solely in their capacity as officers and directors of the Company (the “Company Principal Shareholders”), each of the foregoing a “Party” and collectively the “Parties,” upon the following premises:
   
  Premises
   
  WHEREAS, the Company Principal Shareholders own an aggregate of 200,100 shares of common stock out of a total of 368,200 shares issued and outstanding of the Company’s common stock, par value $0.001 per share (the “Common Stock”), which is equivalent to 54.35% of the issued and outstanding shares of the Company as well as 54.35% of the voting interest in the Company;
   
  WHEREAS, the Buyer is a privately-held company;
   
  WHEREAS, the Buyer desires to acquire from the Company 1,000,000 shares of the Company’s Common Stock through an original issuance by the Company (“Purchased Shares”) in exchange for the consideration (the “Consideration”) described in full in Appendix I to this Agreement (the “Acquisition Offer” or the “Acquisition”), so that the Buyer will become the majority owner of the Company and the Company will become a majority-owned subsidiary of the Buyer; and
   
  WHEREAS, the Acquisition is intended to be a tax-free exchange under Sections 351(a) and 368(c) of the United States Internal Revenue Code, though such treatment is not a condition of the Closing (as defined below).
   
  Agreement
   
  NOW THEREFORE, on the stated premises and for and in consideration of the mutual covenants and agreements hereinafter set forth and the mutual benefits to the parties to be derived herefrom, it is hereby agreed as follows:
   
  	 
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  ARTICLE I
   
    REPRESENTATIONS, COVENANTS AND WARRANTIES OF
  THE BUYER
   
  As an inducement to and to obtain the reliance of the Company and the Company Principal Shareholders, except as set forth on the Buyer Schedules (as hereinafter defined, which shall contain any exceptions or qualifications to the representations and warranties are set forth below), the Buyer represents and warrants as follows:
   
  Section 1.01 Organization; Qualification; No Conflicts; Approval; and Binding Agreement. The Buyer is a privately-held company in good standing under the laws of the jurisdiction in which it is organized. The Buyer has the administrative and organizational power and is duly authorized, qualified, under all applicable laws, regulations, ordinances, and orders of public authorities to own all of its properties and assets and to carry on its business in all material respects as it is now being conducted, including qualifications to do business as a foreign corporation in the states or countries in which the character and location of the assets owned by it or the nature of the business transacted by it requires qualification. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, violate any provision of the Buyer’s Articles of Incorporation (or similar organizational documents or otherwise) or Bylaws (or similar organizational operating documents or otherwise). the Buyer has taken and shall take all actions required by all applicable law, its Articles of Incorporation (or similar organizational documents or otherwise), or otherwise to authorize the execution and delivery of this Agreement and to consummate the transactions herein contemplated; and this Agreement constitutes the legal, valid and binding obligation of the Buyer enforceable against the Buyer in accordance with its terms.
   
  Section 1.02 Investment and other Representations. The Buyer further represents and warrants to the Company and the Principal Company Shareholders as follows:
   
  (a) Purchase Entirely for Own Account. The Buyer is acquiring the Purchased Shares for investment for its own account and not with a view to the resale or distribution of any part thereof, and the Buyer has no present intention of selling or otherwise distributing the Purchased Shares, except in compliance with applicable securities Laws.
   
  (b) Restricted Securities. The Buyer understands that the Purchased Shares are characterized as “restricted securities” under the Securities Act of 1933, as amended (the “Securities Act”), inasmuch as this Agreement contemplates that, if acquired by the Buyer pursuant hereto, the Purchased Shares would be acquired in a transaction not involving a public offering. The issuance of the Purchased Shares hereunder is being effected in reliance upon an exemption from registration afforded under Section 4(a)(2) of the Securities Act, and Rule 506(b) of the Securities and Exchange Commission (the “SEC”) and Regulation S of the SEC, and the Buyer is an “accredited investor” as that term is defined in SEC Rule 501 and is not a “U.S. Person” as that term is defined in Regulation S. The Buyer further acknowledges that if the Purchased Shares are issued to such the Buyer in accordance with the provisions of this Agreement, such Purchased Shares may not be resold without registration under the Securities Act or the existence of an exemption therefrom. The Buyer represents that it is familiar with Rule 144 promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby, and specifically those in subparagraph (i) of Rule 144 related to the resale of securities of “shell companies,” and that the Company is presently a “shell company” as defined therein and in SEC Rule 12b-2 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
   
  	 
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  (c) Acknowledgment of Non-Registration. The Buyer understands and agrees that the Purchased Shares to be issued pursuant to this Agreement have not been registered under the Securities Act or the securities Laws of any state of the U.S.
   
  (d) Status. By its execution of this Agreement, the Buyer represents and warrants that it is an “accredited investor” and a non-“U.S. Person,” and understands that the Purchased Shares are being offered and sold to the Buyer in reliance upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of the Buyer set forth in this Agreement, in order that the Company (and the Company Principal Shareholders) may determine the applicability and availability of the exemptions from registration of the Purchased Shares under the Securities Act on which the Company (and the Company Principal Shareholders) is relying.
   
  (e) Miscellaneous Representations and Warranties. The Buyer: (1) consents to the placement of a legend on any certificate or other document evidencing the Purchased Shares substantially in the form set forth below; (ii) has sufficient knowledge and experience in finance, securities, investments and other business matters to be able to protect the Buyer’s interests in connection with the transactions contemplated by this Agreement; (iii) has consulted, to the extent that it has deemed necessary, with its tax, legal, accounting and financial advisors concerning its investment in the Purchased Shares and can afford to bear such risks for an indefinite period of time, including, without limitation, the risk of losing its entire investment in the Purchased Shares; (iv) has had access to the SEC reports and registration statements of the Company in the SEC Edgar archives (the “SEC Reports”); (v) has been furnished during the course of the transactions contemplated by this Agreement with all other public information regarding the Company that the Buyer has requested and all such public information is sufficient for the Buyer to evaluate the risks of investing in the Purchased Shares; (vi) has been afforded the opportunity to ask questions of and receive answers concerning the Company and its directors or officers and the terms and conditions of the issuance of the Purchased Shares; (vii) is not relying on any representations and warranties concerning the Company (or the Company Principal Shareholders) made by the Company or any director, officer, employee or agent of the Company, other than those contained in this Agreement or the SEC Reports; (viii) will not sell or otherwise transfer the Purchased Shares, unless either (A) the transfer of such securities is registered under the Securities Act or (B) an exemption from registration of such securities is available; (ix) understands and acknowledges that the Company (and the Company Principal Shareholders) is under no obligation to register the Purchased Shares for sale under the Securities Act or otherwise; (x) understands and acknowledges that the Purchased Shares have not been recommended by any federal or state securities commission or regulatory authority, that the foregoing authorities have not confirmed the accuracy or determined the adequacy of any information concerning the Company (or the Company Principal Shareholders) that has been supplied to the Buyer and that any representation to the contrary is a criminal offense; (xi) acknowledges that the representations, warranties and agreements made by the Buyer herein shall survive the execution and delivery of this Agreement and the purchase of the Purchased Shares; (xii) will not transfer any of such Purchased Shares absent an effective registration statement under the Securities Act and applicable state securities law covering the disposition the Purchased Shares without first providing the Company with an opinion of counsel (which counsel and opinion are reasonably satisfactory to the Company) to the effect that such transfer will be exempt from the registration and the prospectus delivery requirements of the Securities Act and the registration or qualification requirements of any applicable U.S. state securities laws or as otherwise may be applicable; and (xiii) the stock certificate to represent to Purchased Shares shall be imprinted with a legend in substantially the form of the legend required in Section 3.03 below.
   
  	 
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  Section 1.03 Lack of Omissions and Misstatements. No representation or warranty of the Buyer contained in this Agreement or any other document related thereto and no statement or disclosure made by or on behalf of the Buyer to the Company or the Company Principal Shareholders pursuant to this Agreement or any other agreement contemplated herein contains an untrue statement of a material fact or omits to state a material fact necessary to make the statements contained herein or therein not misleading.
   
  ARTICLE II
   
  REPRESENTATIONS, COVENANTS, AND WARRANTIES OF THE COMPANY AND DAVID C. MERRELL
   
  As an inducement to, and to obtain the reliance of the Buyer, except as set forth in the Company Schedules (as hereinafter defined), the Company and David C. Merrell, the Company’s President and one of the Company Principal Shareholders, represent and warrant as follows:
   
  Section 2.01 Organization. The Company is a corporation duly organized, validly existing, and in good standing under the laws of Delaware and has the corporate power and is duly authorized, qualified, franchised, and licensed under all applicable laws, regulations, ordinances, and orders of public authorities to own all of its properties and assets, to carry on its business in all material respects as it is now being conducted and as contemplated after the Acquisition, and except where failure to be so qualified would not have a material adverse effect on its business, there is no jurisdiction in which it is not qualified in which the character and location of the assets owned by it or the nature of the business transacted by it requires qualification. The Company has provided to the Buyer complete and correct copies of the Articles of Incorporation and Bylaws (or similar organizational documents) of the Company as in effect on the date hereof. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, violate any provision of the Company’s Articles of Incorporation or Bylaws (or similar organizational documents). The Company has taken or shall take all action required by law, its Articles of Incorporation, its Bylaws (or similar organizational documents), or otherwise to authorize the execution and delivery of this Agreement, and the Company has full power, authority, and legal right and has taken or shall take all action required by law, its Articles of Incorporation, Bylaws, (or similar organizational documents) or otherwise to consummate the transactions herein contemplated.
   
  	 
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  Section 2.02 Capitalization. The Company is authorized to issue 100,000,000 shares of Common Stock plus 10 million shares of Preferred Stock, and has approximately 368,200 shares of Common Stock outstanding as of the date of this Agreement, and 0 shares of Preferred Stock outstanding. All issued and outstanding shares are legally issued, fully-paid, and non-assessable and not issued in violation of the preemptive or other rights of any person.
   
  Section 2.03 Subsidiaries and Predecessor Corporations. The Company does not have any predecessor corporation(s) or subsidiary(ies), except as set forth in the Company’s EDGAR filings, and does not own, beneficially or of record, any shares of any other corporation, other than as set forth on Schedule 2.03 attached hereto or set forth in the Company’s EDGAR filings.
   
  Section 2.04 Financial Statements.
   
  (a) The Company has no liabilities with respect to the payment of any federal, provincial, state, county, local or other taxes (including any deficiencies, interest or penalties), except for taxes accrued but not yet due and payable.
   
  (b) To the knowledge of the Company, the books and records, financial and otherwise, of the Company are in all material respects complete and correct and have been maintained in accordance with good business and accounting practices.
   
  Section 2.05 Information. The information concerning the Company set forth in this Agreement and the Company Schedules is complete and accurate in all material respects and does not contain any untrue statements of a material fact or omit to state a material fact required to make the statements made, in light of the circumstances under which they were made, not misleading. Except as set forth in Section 2.05 of the Company Disclosures, the Company has fully disclosed in writing to the Buyer (through this Agreement, the Company’s EDGAR filings or the Company Schedules) all information, relating to matters involving the Company or its assets or its present or past operations or activities, which (i) indicated or may reasonably indicate, in the aggregate, the existence of a greater than Fifty Thousand Dollars ($50,000) liability, (ii) have led or may lead to a competitive disadvantage on the part of the Company, (iii) the existence of any accounts payable outstanding by the Company as of the date hereof, or (iv) either alone or in aggregation with other information covered by this Section, otherwise have led or may reasonably lead to a material adverse effect on the transactions contemplated herein or on the Company or its operations or activities as presently conducted or as contemplated to be conducted after the Closing Date (as defined below), including, but not limited to, information relating to governmental, employee, and securities matters and transactions with affiliates.
   
  	 
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  Section 2.06 Convertible Securities; Options or Warrants. Except as set forth in the Company’s financial statements or Schedule 2.06, there are no existing convertible securities, options, warrants, calls or commitments of any character relating to the authorized and unissued stock of the Company, and further, except as otherwise set forth in any of the Company Schedules and/or described in the Company’s EDGAR filings.
   
  Section 2.07 Absence of Certain Changes or Events. Except as disclosed in Schedule 2.07, set forth in the Company’s EDGAR filings or provided in writing to the Buyer, since the date of the Company’s December 31, 2013, balance sheet for the Company or as otherwise set forth in the Company Schedules:
   
  (a) There has not been (i) any material adverse change in the business, operations, properties, assets or condition of the Company or (ii) any damage, destruction or loss to the Company (whether or not covered by insurance) materially and adversely affecting the business, operations, properties, assets or condition of the Company;
   
  (b) The Company has not (i) amended its Articles of Incorporation or Bylaws (or similar organizational documents) except as required under this Agreement; (ii) waived any rights of value which in the aggregate are outside of the ordinary course of business or material considering the business of the Company; (iii) made any material change in its method of management, operation, or accounting; (iv) entered into any transaction or agreement other than in the ordinary course of business; or (v) increased the rate of compensation payable or to become payable by it to any of its officers or directors or any of its salaried employees whose monthly compensation exceeds Ten Thousand Dollars ($10,000); and
   
  (c) The Company has not become subject to any law or regulation which materially and adversely affects, or in the future, may adversely affect, the business, operations, properties, assets or condition of the Company.
   
  Section 2.08 Title and Related Matters. Except as set forth in Section 2.08 of the Company Disclosures, the Company has good and marketable title to all of its properties, inventory, interest in properties and assets, real and personal, which are reflected in the most recent balance sheet of the Company.
   
  Section 2.09 Litigation and Proceedings. There are no actions, suits, proceedings or investigations pending or, to the knowledge of the Company after reasonable investigation, threatened by or against the Company or affecting the Company or its properties, at law or in equity, before any court or other governmental agency or instrumentality, domestic or foreign, or before any arbitrator of any kind, except as set forth in the Company’s EDGAR filings. The Company has no knowledge of any default on its part with respect to any judgment, order, writ, injunction, decree, award, rule or regulation of any court, arbitrator, or governmental agency or instrumentality, or any circumstance which after reasonable investigation would result in the discovery of such default.
   
  	 
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  Section 2.10 Contracts. Except as otherwise set forth in Section 2.10 of the Company Schedules or the EDGAR filings:
   
  (a) The Company is not a party to, and its assets, products and properties are not bound by, any material contract, franchise, license agreement, agreement, debt instrument or other commitments whether such agreement is in writing or oral;
   
  (b) All contracts, agreements, franchises, license agreements, and other commitments to which the Company is a party or by which its properties are bound and which are material to the operations of the Company taken as a whole are valid and enforceable by the Company in all respects, except as limited by bankruptcy and insolvency laws and by other laws affecting the rights of creditors generally; and
   
  (c) The Company is not a party to or bound by, and the properties of the Company are not subject to any contract, agreement, other commitment or instrument; any charter or other corporate restriction; or any judgment, order, writ, injunction, decree, or award which materially and adversely affects, the business operations, properties, assets, or condition of the Company.
   
  Section 2.11 Material Contract Defaults. The Company to its knowledge is not in default in any respect under the terms of any outstanding contract, agreement, lease, or other commitment which is material to the business, operations, properties, assets or condition of the Company and there is no event of default in any material respect under any such contract, agreement, lease, or other commitment in respect of which the Company has not taken adequate steps to prevent such a default from occurring.
   
  Section 2.12 No Conflict With Other Instruments. The execution of this Agreement and the consummation of the transactions contemplated by this Agreement will not result in the breach of any term or provision of, constitute a default under, or terminate, accelerate or modify the terms of, any indenture, mortgage, deed of trust, or other material agreement or instrument to which the Company is a party or to which any of its assets or operations are subject.
   
  Section 2.13 Governmental Authorizations. The Company has all licenses, franchises, permits, and other governmental authorizations, that are legally required to enable it to conduct its business operations in all material respects as conducted on the date hereof. Except for compliance with federal, provincial and state securities or corporation laws, as hereinafter provided, no authorization, approval, consent or order of, or registration, declaration or filing with, any court or other governmental body is required in connection with the execution and delivery by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby (excluding authorizations, approvals and/or consents relating to the acquisition by the Company of the Buyer, which the Company makes no representations in connection with).
   
  	 
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  Section 2.14 Compliance With Laws and Regulations. To the best of its knowledge, the Company has complied with all applicable statutes and regulations of any federal, provincial, state, or other applicable governmental entity or agency thereof, except to the extent that noncompliance would not materially and adversely affect the business, operations, properties, assets or condition of the Company or except to the extent that noncompliance would not result in the occurrence of any material liability. This compliance includes, but is not limited to, the filing of all reports, filings and schedules to date with federal and state securities authorities.
   
  Section 2.15 Approval of Agreement. The Board of Directors of the Company will authorize the execution and delivery of this Agreement by the Company and approve this Agreement and the transactions contemplated hereby prior to the Closing Date.
   
  Section 2.16 Material Transactions or Affiliations. As of the date hereof, and except as listed in the financial statements, the Company has no off-balance sheet commitments, whether written or oral, with any affiliate or vendor of the Company or any other person.
   
  Section 2.17 Deliverables Under Section 2.17 of the Company Schedules. No later than 10 days from the Closing Date, the Company will deliver, if it has not already, to the Buyer, the following items (if any) pursuant to this Section 2.17 (“Section 2.17 Schedule Items”), which together with all other schedules required by Article II, are collectively referred to as the “Company Schedules” and which consist of separate schedules, which are dated the date of this Agreement, to be complete, true, and accurate in all material respects as of the date of this Agreement:
   
  (a) a spreadsheet setting forth the name and address of each shareholder of the Company together with the number of shares owned by him, her or it;
   
  (b) a schedule listing any and all federal, provincial, state and local tax identification numbers of the Company and containing complete and correct copies of all federal, provincial, state and local tax returns filed by the Company; and
   
  (c) complete, correct and file stamped copies of the Bylaws, Articles of Incorporation or similar organizational documents of the Company in effect as of the date of this Agreement;
   
  	 
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  Section 2.18 Valid Obligation. This Agreement and all agreements and other documents executed by the Company in connection herewith constitute the valid and binding obligation of the Company, enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and subject to the qualification that the availability of equitable remedies is subject to the discretion of the court before which any proceeding may be brought.
   
  Section 2.19 Reporting Requirements of the Company. The Company is subject to the reporting and filing requirement of the Exchange Act, and to the best of the Company’s knowledge, it is current in its periodic reporting obligations thereunder.
   
  Section 2.20 Liabilities. The Buyer shall pay an aggregate of $50,000 to the Company for the purpose of comprising and paying all outstanding liabilities by David C. Merrell as of the Closing Date, which sum shall be wired to the trust account of Leonard W. Burningham, Esq. for payment of such liabilities outlined in Appendix II hereto in exchange for signed Releases in the Form of Appendix III. To the extent required or necessary, any other liabilities existing at the Closing Date shall be paid or compromised by David C. Merrell and a Release in the Form of Appendix III shall be provided for any such other liabilities paid or compromised at the Closing Date. Following payment of $50,000 and the delivery of the Forms of Release by Mr. Burningham for the liabilities in Appendix II, only, and from David C. Merrell for any other liabilities, including any owed to either of the Company Principal Shareholders, the Company shall have no other liabilities or financial obligations of any kind.
   
  ARTICLE III
   
  PLAN OF EXCHANGE
   
  Section 3.01 The Acquisition.
   
  (a) On the terms and subject to the conditions set forth in this Agreement, on the Closing Date, the Company (and to the extent applicable only to the consideration to be received by the Company Principal Shareholders, the Company Principal Shareholders) shall accept the Acquisition Offer described herein, and the Company shall issue to the Buyer the Purchased Shares, free and clear of all liens, pledges, encumbrances, charges, restrictions or known claims of any kind, nature, or description, except the Securities Act legend outlined herein in Section 3.03, which in the aggregate, when issued, will be fully-paid, non-assessable, and constitute approximately Seventy-Three Percent (73%) of the issued and outstanding shares of the Company.
   
  (b) The Buyer shall accept the Acquisition Offer, and shall, on the terms and conditions set forth in this Agreement, compensate the Company and the Company Principal Shareholders according to Appendix I of this Agreement (the “Consideration”). The Consideration shall include the agreement to issue certain equity in Common Stock and warrants, subject to future anti-dilution conditions (“Anti-Dilution Shares”), as more fully described in Appendix I.
   
  	 
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  Section 3.02 Closing. The closing (“Closing”) of the transaction contemplated by this Agreement shall occur automatically, and without any further required action from either party, upon the satisfaction of the Closing Conditions (described below) which date shall in no event be later than April __, 2014, unless such date is extended in writing by the mutual consent of all Parties (the “Closing Date”).
   
  (a) The following “Closing Conditions” shall have occurred, or have been waived by the Company Principal Shareholders and the Buyer in writing, prior to the Closing Date:
   
  (i) This Agreement and all transactions contemplated hereunder shall have been approved by the Board of Directors of the Company (“ERCX Board”) and any required directors or managers or otherwise of the Buyer, excluding any shareholder approval;
   
  (ii) The Buyer shall have wired the sum of $50,000 to the trust account of Mr. Burningham for disposition in accordance with the terms hereof outlined in Section 2.20;
   
  (iii) The Company shall issue 1,000,000 fully-paid and non-assessable shares of the Common Stock of the Company to the Buyer so as to make the Buyer the sole owner thereof;
   
  (iii) The Company and the Company Principal Shareholders will deliver any documents described in Article II; and
   
  (iv) The Buyer, the Company and the Company Principal Shareholders shall execute, acknowledge, and deliver (or shall ensure to be executed, acknowledged, and delivered) any and all certificates, opinions, financial statements, schedules, agreements, resolutions, rulings or other instruments required by this Agreement to be so delivered at or prior to the Closing, together with such other items as may be reasonably requested by the Parties hereto and their respective legal counsel in order to effectuate or evidence the transactions contemplated hereby, with the understanding that the Company Principal Shareholders’ approval of this Agreement is as Parties to the Agreement and not as shareholders of the Company.
    
  Section 3.03 Tradability of Shares. The Anti-Dilution Shares and the Purchased Shares have not been, and will not be, registered under the Securities Act, nor registered under any state securities law, and are “restricted securities” as that term is defined in Rule 144 under the Securities Act. The Anti-Dilution Shares and the Purchased Shares may not be offered for sale, sold or otherwise transferred except pursuant to an effective registration statement under the Securities Act, or pursuant to an exemption from registration under the Securities Act. All of such Anti-Dilution Shares and the Purchased Shares will bear the following restrictive legend or a reasonable facsimile thereof:
   
  	 
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  “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED, OR HYPOTHECATED WITHOUT EITHER: i) REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS, OR ii) SUBMISSION TO THE CORPORATION OF AN OPINION OF COUNSEL, SATISFACTORY TO THE CORPORATION THAT SAID SHARES AND THE TRANSFER THEREOF ARE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933 AND APPLICABLE STATE SECURITIES LAWS.
   
  Section 3.04 Termination.
   
  (a) This Agreement may be terminated by either the Buyer or the Company, the Company Principal Shareholders at any time prior to the Closing Date if:
   
  (i) there shall be any actual or threatened action or proceeding before any court or any governmental body which shall seek to restrain, prohibit, or invalidate the transactions contemplated by this Agreement and which, in the judgment of such Board of Directors or shareholders, made in good faith and based upon the advice of its legal counsel, makes it inadvisable to proceed with the Acquisition; or
   
  (ii) any of the transactions contemplated hereby are disapproved by any regulatory authority whose approval is required to consummate such transactions (which does not include the SEC) or in the judgment of such Board of Directors or shareholders, made in good faith and based on the advice of counsel, there is substantial likelihood that any such approval will not be obtained or will be obtained only on a condition or conditions which would be unduly burdensome, making it inadvisable to proceed with the Acquisition.
   
  In the event of termination pursuant to this paragraph, no obligation, right or liability shall arise hereunder, and each party shall bear all of the expenses incurred by it in connection with the negotiation, drafting, and execution of this Agreement and the transactions herein.
   
  No revenue ruling or opinion of counsel will be sought as to the tax-free nature of the subject Acquisition and such tax treatment is not a condition to Closing herein; and none shall be required nor a condition of the Closing.
   
  	 
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  ARTICLE IV
   
  SPECIAL COVENANTS
   
  Section 4.01 Access to Properties and Records. The Buyer, the Company and the Company Principal Shareholders will each afford to the officers and authorized representatives of the other reasonable access to the properties, books and records of the Buyer or the Company, as the case may be, in order that each may have a full opportunity to make such reasonable investigation as any shall desire of the affairs of the other, and each will furnish the other with such additional financial and operating data and other information as to the business and properties of the Buyer or the Company, as the case may be, as the other shall from time to time reasonably request. Any such investigation and examination shall be conducted at reasonable times and under reasonable circumstances, and each Party hereto shall cooperate fully therein. No investigation by a Party hereto shall, however, diminish or waive in any way any of the representations, warranties, covenants or agreements of the other party under this Agreement. In order that each party may investigate as it may wish the business affairs of the other, each party shall furnish the other during such period with all of such information and copies of such documents concerning the affairs of it as the other party may reasonably request, and cause its officers, employees, consultants, agents, accountants and attorneys to cooperate fully in connection with such review and examination, and to make full disclosure to the other parties all material facts affecting its financial condition, business operations and the conduct of operations.
   
  Section 4.02 Delivery of Books and Records and Bank Accounts. At the Closing, the Company Principal Shareholders shall deliver to the Buyer copies of the corporate minute books, books of account, contracts and records, and all other books or documents including, the bank accounts of the Company now in the possession of the Company Principal Shareholders or their representatives.
   
  Section 4.03 Third Party Consents and Certificates. The Buyer, the Company and the Company Principal Shareholders agree to cooperate with each other in order to obtain any required third party consents to this Agreement and the transactions herein contemplated.
   
  Section 4.04 Actions Prior to Closing.
   
  (a) From and after the date of this Agreement until the Closing Date and except as set forth in the Buyer Schedules or the Company Schedules, or as permitted or contemplated by this Agreement, the Buyer and the Company, respectively (subject to paragraph (b) below), will each:
   
  (i) carry on its business in substantially the same manner as it has heretofore;
   
  	 
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  (ii) maintain and keep its properties in states of good repair and condition as at present, except for depreciation due to ordinary wear and tear and damage due to casualty;
   
  (iii) maintain in full force and effect insurance comparable in amount and in scope of coverage to that now maintained by it;
   
  (iv) use good faith efforts to perform in all material respects all of its obligations under material contracts, leases, and instruments relating to or affecting its assets, properties, and business;
   
  (v) use its good faith efforts to maintain and preserve its business organization intact, to retain its key employees, and to maintain its relationship with its material suppliers and customers; and
   
  (vi) fully comply with and perform in all material respects all obligations and duties imposed on it by all federal, provincial and state laws and all rules, regulations, and orders imposed by federal, provincial or state governmental authorities.
   
  (b) From and after the date of this Agreement until the Closing Date, neither the Buyer nor the Company will:
   
  (i) make any changes in their Articles or Certificates of Incorporation or Bylaws, except as otherwise provided in this Agreement;
   
  (ii) take any action described in Section 2.07 (except as permitted therein or as disclosed in the applicable party’s schedules);
   
  (iii) enter into or amend any contract, agreement, or other instrument of any of the types described in such party’s schedules, except that a party may enter into or amend any contract, agreement, or other instrument in the ordinary course of business involving the sale of goods or services; or
   
  (iv) sell any assets or discontinue any operations, sell any shares of capital stock (other than as contemplated in this Section 4.04) or conduct any similar transactions other than in the ordinary course of business.
   
  	 
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  Section 4.05 Indemnification.
   
  (a) Indemnification of the Buyer. Subject to the terms and conditions of this Section 4.05(a), the Company and David C. Merrell agree to jointly and severally, indemnify, defend and hold harmless the Buyer, its respective affiliates, its respective present and former directors, officers, shareholders, employees, attorneys and agents and its respective heirs, executors, administrators, successors and assigns (the “Buyer Indemnified Persons”), from and against any and all claims, liabilities and losses which may be imposed on, incurred by or asserted against any of the Buyer Indemnified Persons, arising out of or resulting from, directly or indirectly:
   
  (i) the inaccuracy of any representation or breach of any material warranty of the Company or David C. Merrell contained in or made pursuant to this Agreement, which was not disclosed to the Buyer in writing prior to the Closing;
   
  (ii) the breach of any material covenant or agreement of the Company or David C. Merrell contained in this Agreement; or
   
  (iii) any claim to fees or costs for alleged services by a broker, agent, finder or other person claiming to act in a similar capacity at the request of the Buyer in connection with this Agreement;
   
  provided, however, that the Company and David C. Merrell shall not be liable for any portion of any claims, liabilities or losses resulting from a material breach by the Buyer, of any of its obligations under this Agreement or from the Buyer’s gross negligence, fraud or willful misconduct. The indemnification provided for in this Section shall survive the Closing and consummation of the transactions contemplated hereby or termination of this Agreement for a period of one (1) year only.
   
  (b) Indemnification of the Company and the Company Principal Shareholders. Subject to the terms and conditions of this Section 4.05(b), from and after the Closing, the Buyer agrees to indemnify, defend and hold harmless the Company and the Company Principal Shareholders, their respective affiliates, their respective present and former directors, officers, shareholders, employees, attorneys and agents and their respective heirs, executors, administrators, successors and assigns (the “Company and the Company Principal Shareholders Indemnified Persons”), from and against any and all claims, liabilities and losses which may be imposed on, incurred by or asserted against the Company and the Company Principal Shareholders Indemnified Persons, arising out of or resulting from, directly or indirectly:
   
  (i) the inaccuracy of any representation or breach of any material warranty of the Buyer contained in or made pursuant to this Agreement, which was not disclosed to the Company or the Company Principal Shareholders in writing prior to the Closing;
   
  (ii) the breach of any material covenant or agreement of the Buyer contained in this Agreement; or
   
  	 
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  (iii) any claim to fees or costs for alleged services rendered by a broker, agent, finder or other person claiming to act in a similar capacity at the request of the Buyer in connection with this Agreement;
   
  provided, however, that the Buyer shall not be liable for any portion of any claims, liabilities or losses resulting from a material breach by the Company or the Company Principal Shareholders of their obligations under this Agreement or from the Company or the Company Principal Shareholders’ or any of the Company and the Company Principal Shareholders Indemnified Persons’ gross negligence, fraud or willful misconduct. The indemnification provided for in this Section shall survive the Closing and consummation of the transactions contemplated hereby or termination of this Agreement for a period of one (1) year only.
   
  Section 4.06 Indemnification of Subsequent Corporate Actions. The Buyer hereby represents and warrants that it will indemnify and hold harmless any officer, director, controlling shareholder, attorney, agent or representative of the Company and the Company Principal Shareholders, or any other person affiliated with the either or any of them, from any decisions or activities not involving the either or any of them, subsequent to the Closing Date of the transactions contemplated by this Agreement. Corporate actions taken by the Buyer following the transactions contemplated by this Agreement may include, but are not limited to:
   
  (a) Issuing shares of Common or Preferred Stock which may constitute a majority of shares issued or any other securities issuance;
   
  (b) Amending Articles of Incorporation to change the name of the Company or the Buyer, changing the capital structure of the Company or the Buyer, or any other amendment;
   
  (c) Changing the stock quotation service, market or exchange on which the Company’s shares are quoted or listed;
   
  (d) Changing status of the Company from a “shell company” to non-“shell company” status and filing such documents as necessary to achieve such purpose; and
   
  (e) Any other matter occurring on or after the date of this Agreement not based upon any action, non-action or otherwise that occurred after the Closing Date of this Agreement.
   
  ARTICLE V
   
  CONDITIONS PRECEDENT TO OBLIGATIONS OF THE BUYER
   
  The obligations of the Buyer under this Agreement are subject to the satisfaction, at or before the Closing Date, of the following conditions:
   
  Section 5.01 Ownership of the Company Principal Shareholders. Prior to the Closing Date, the Company Principal Shareholders shall have demonstrated to the Buyer, with evidence reasonably satisfactory to the Buyer, that the Company Principal Shareholders are the owners of 200,100 shares of the outstanding securities of the Company and are the sole officers and directors of the Company.
   
  	 
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  Section 5.02 Accuracy of Representations and Performance of Covenants. The representations and warranties made by the Company and the Company Principal Shareholders in this Agreement were true when made and shall be true at the Closing Date with the same force and effect as if such representations and warranties were made at and as of the Closing Date (except for changes therein permitted by this Agreement). The Company and the Company Principal Shareholders shall have performed or complied with all covenants and conditions required by this Agreement to be performed or complied with by them prior to or at the Closing. The Buyer shall be furnished with a certificate, signed by a duly authorized executive officer of the Company dated the Closing Date, to the foregoing effect.
   
  Section 5.03 Officer’s Certificate. The Buyer shall have been furnished with a certificate dated the Closing Date and signed by a duly authorized officer of the Company to the effect that no litigation, proceeding, investigation, or inquiry is pending, or to the best knowledge of the Company, threatened, which might result in an action to enjoin or prevent the consummation of the transactions contemplated by this Agreement, or, to the extent not disclosed in the Company’s Schedules, by or against the Company, which might result in any material adverse change in any of the assets, properties, business, or operations of the Company.
   
  Section 5.04 No Material Adverse Change. Prior to the Closing Date, there shall not have occurred any material change in the financial condition, business, or operations of the Company nor shall any event have occurred which, with the lapse of time or the giving of notice, is determined to be unacceptable by the Buyer in its reasonable discretion.
   
  Section 5.05 Approval by the Company. The Acquisition shall have been approved by the Board of Directors of the Company, and the Anti-Dilution Shares (if and when applicable) and the Purchased Shares shall have been approved and authorized by the Board of Directors and issued and delivered in accordance with Section 3.01, as applicable.
   
  Section 5.06 No Governmental Prohibition. No order, statute, rule, regulation, executive order, injunction, stay, decree, judgment or restraining order shall have been enacted, entered, promulgated or enforced by any court or governmental or regulatory authority or instrumentality which prohibits the consummation of the transactions contemplated hereby.
   
  Section 5.07 Consents. All consents, approvals, waivers or amendments pursuant to all contracts, licenses, permits, trademarks and other intangibles in connection with the transactions contemplated herein, or for the continued operation of the Buyer and the Company after the Closing Date on the basis as presently operated shall have been obtained.
   
  	 
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  Section 5.08 Assurances. Unless otherwise agreed by the Parties, prior to the Closing Date, the Company will:
   
  (a) not create, allot, issue, acquire, repay or redeem any charter or loan capital or agree, arrange or undertake to do any of those things or acquire or agree to acquire, an interest in a corporate body or merge or consolidate with a corporate body or any other person, enter into any demerger transaction or participate in any other type of corporate reconstruction;
   
  (b) operate its business in the usual way so as to maintain that business as a going concern;
   
  (c) not acquire or dispose of, or agree to acquire or dispose of, any revenues, assets, business or undertakings except in the usual course of its business or assume or incur, or agree to assume or incur, a liability, obligation or expense (actual or contingent) except in the usual course of its business;
   
  (d) not declare, pay or make a dividend or distribution;
   
  (e) not pass a shareholders’ resolution;
   
  (f) not create, or agree to create or amend, an encumbrance over any licences, property or assets owned by it;
   
  (g) not grant any options or other rights to subscribe for or acquire shares or other securities in their charter or loan capital;
   
  (h) not act (or omit to act) in a manner which might cause or result in any licence, consent, or approval or concession held by it to be amended or revoked;
   
  (i) not make any material change in the nature or organisation of its business;
   
  (j) comply with all of its contractual, statutory and regulatory obligations;
   
  (k) not enter into a long-term, onerous, unusual or material agreement, arrangement or obligation;
   
  (l) not amend or terminate a material agreement, arrangement or obligation to which it is a party or terminate any contract or commitment which is not capable of being terminated without compensation or which is not in the ordinary course of business;
   
  	 
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  (m) not enter into, amend or terminate a contract (including a series of related contracts) involving capital expenditure, except with the agreement of the Buyer;
   
  (n) not compromise or settle litigation or arbitration proceedings or any action, demand or dispute or waive a right in relation to litigation or arbitration proceedings;
   
  (o) not release, discharge or compound any liability or claim;
   
  (p) conduct its business in all material respects in accordance with all applicable legal and administrative requirements in any jurisdiction; and
   
  (q) co-operate with the Buyer to allow the Buyer and its agents access to, and to take copies of, the books and records of the Company, including, without limitation, the statutory books, minute books, leases, licences, contracts, details of receivables, intellectual property, supplier lists and customer lists in the possession or control of each of the Company Principal Shareholders or their agents and representatives.
   
  Section 5.09 Management Resignations and Appointment of New Management. Michael C. Brown shall resign at the Closing Date from all positions held with the Company, David C. Merrell shall resign from all officer positions, and Messrs. Merrell and Brown shall appoint the following as executive officers and to the Board of Directors of the Company, who shall begin their terms immediately following the effective date of the resignations of the current officers and directors:
   
  	  President, CEO, Secretary and Treasurer:
	  Abraham Cinta

	   
	   

	  Additional Member of Board of Directors:
	  Abraham Cinta

   
  Section 5.10 Lock-Up of Company Principal Shareholders’ Shares. Until Market Maturity (as defined in Appendix I of this Agreement), all shares held by the Company Principal Shareholders shall be subject to a lock up agreement and may not be sold.
   
  ARTICLE VI
   
  MISCELLANEOUS
   
  Section 6.01 No Bankruptcy and No Criminal Convictions. None of the Parties to this Agreement, or their officers, directors or affiliates, promoters, beneficial shareholders or control persons, nor any predecessor thereof have been subject to the following (unless otherwise disclosed in the Company Schedules or the Buyer Schedules):
   
  (a) Any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer within the past ten (10) years;
   
  	 
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  (b) Any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);
   
  (c) Being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; and
   
  (d) Being found by a court of competent jurisdiction (in a civil action), the SEC or the Commodity Futures Trading Commission to have violated a federal, provincial or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated.
   
  Section 6.02 Broker/Finder’s Fee. No broker’s or finder’s fee will be paid in connection with the transaction contemplated by this Agreement other than fees payable to persons registered as broker-dealers pursuant to Section 15 of the Securities Exchange Act of 1934, as amended, or persons who have introduced the Parties only and only to the extent outlined in the Company Schedules or the Buyer Schedules. The Buyer, the Company and the Company Principal Shareholders agree that, except as set forth herein and on Schedule 6.02 attached hereto, there were no brokers or finders involved in bringing the parties together or who were instrumental in the negotiation, execution or consummation of this Agreement. The Buyer, the Company and the Company Principal Shareholders, each agree to indemnify the other against any claim by any third person other than those described above for any commission, brokerage, or finder’s fee arising from the transactions contemplated hereby based on any alleged agreement or understanding between the indemnifying party and such third person, whether express or implied from the actions of the indemnifying party.
   
  Section 6.03 Governing Law and Arbitration. This Agreement shall be governed by, enforced, and construed under and in accordance with the laws of the United States of America and, with respect to the matters of state law, with the laws of the State of Nevada without giving effect to principles of conflicts of law thereunder. All controversies, disputes or claims arising out of or relating to this Agreement shall be resolved by binding arbitration. The arbitration shall be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association. All arbitrators shall possess such experience in, and knowledge of, the subject area of the controversy or claim so as to qualify as an “expert” with respect to such subject matter. The governing law for the purposes of any arbitration arising hereunder shall be in Clark County, Nevada. The prevailing party shall be entitled to receive its reasonable attorney’s fees and all costs relating to the arbitration. Any award rendered by arbitration shall be final and binding on the parties, and judgment thereon may be entered in any court of competent jurisdiction.
   
  	 
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  Section 6.04 Notices. Any and all notices, requests or other communications hereunder shall be given in writing and delivered by: (a) regular, overnight or registered or certified mail (return receipt requested), with first class postage prepaid; (b) hand delivery; (c) facsimile transmission; or (d) overnight courier service, to the parties at the following addresses or facsimile numbers:
   
  	   
	  If to the Company, to:
	   
	  E.R.C. Energy Recovery Corporation

	   
	   
	  Attn: 
	  David C. Merrell

	   
	   
	  Address:
	  3884 E. North Little Cottonwood Rd 

	   
	   
	   
	  Salt Lake City, UT 84092

	   
	   
	  Email:
	  dcm@xmission.com

	   
	   
	   
	   

	   
	  If to the Company Principal Shareholders to:
	   
	  David C. Merrell and Michael C. Brown

	   
	   
	  Attn:
	  David C. Merrell

	   
	   
	  Address:
	  3884 E. North Little Cottonwood Rd

	   
	   
	   
	  Salt Lake City, UT 84092

	   
	   
	  Email:
	  dcm@xmission.com

	   
	   
	   
	  Mikebrown155@aol.com

	   
	   
	   
	   

	   
	  If to the Buyer to:
	   
	  Evotech Capital S.A.

	   
	   
	   
	  Abraham Cinta

	   
	   
	   
	  abraham.cinta@evotech.com

   
  or at such other address or number as shall be designated by either of the Parties in a notice to the other party given in accordance with this Section. Except as otherwise provided in this Agreement, all such communications shall be deemed to have been duly given: (A) in the case of a notice sent by regular or registered or certified mail, three business days after it is duly deposited in the mails; (B) in the case of a notice delivered by hand, when personally delivered; (C) in the case of a notice sent by facsimile, upon transmission subject to telephone confirmation of receipt; and (D) in the case of a notice sent by overnight mail or overnight courier service, the next business day after such notice is mailed or delivered to such courier, in each case given or addressed as aforesaid.
   
  Section 6.05 Attorney’s Fees. In the event that either party institutes any action or suit to enforce this Agreement or to secure relief from any default hereunder or breach hereof, the prevailing party shall be reimbursed by the losing party for all costs, including reasonable attorney’s fees, incurred in connection therewith and in enforcing or collecting any judgment rendered therein.
   
  	 
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  Section 6.06 Confidentiality. Each party hereto agrees with the other that, unless and until the transactions contemplated by this Agreement have been consummated, it and its representatives will hold in strict confidence all data and information obtained with respect to another party or any subsidiary thereof from any representative, officer, director or employee, or from any books or records or from personal inspection, of such other party, and shall not use such data or information or disclose the same to others (which information shall include the existence of this Agreement and the transactions contemplated herein), except (i) to the extent such data or information is published, is a matter of public knowledge (through no fault or action of the Party holding such information on behalf of the other Party), or is required by a court of competent jurisdiction to be published; or (ii) to the extent that such data or information must be used or disclosed in order to consummate the transactions contemplated by this Agreement. In the event of the termination of this Agreement, each party shall return to the other party all documents and other materials obtained by it or on its behalf and shall destroy all copies, digests, work papers, abstracts or other materials relating thereto, and each party will continue to comply with the confidentiality provisions set forth herein. The Company and the Company Principal Shareholders further agree and consent to the disclosure by the Buyer of any material information regarding the Company and the Company Principal Shareholders which the Buyer or its counsel deems necessary for disclosure in the Company’s public filings in the SEC EDGAR database in connection with the Company’s current or periodic report filings, including information related to this Agreement. The Buyer shall not be required to obtain the prior consent of the Company Principal Shareholders to publicly disclose such information, though each shall have at least one (1) day to review such disclosure.
   
  Section 6.07 Publicity. Prior to or after the Closing of the transaction contemplated herein, any announcement, or press or news release by the Company or its shareholders, employees, officers, directors, or agents shall be reviewed and approved by the Buyer prior to its release, subject to any requirements of law. The Company shall be allowed to make any announcements relating to this Agreement or the transactions contemplated herein, and shall be allowed to file this Agreement and any exhibits or related agreements as may be required pursuant to the Company’s public reporting obligations with the SEC, subject to prior approval by the Company Principal Shareholders, which approval shall not be unreasonably withheld. Prior to the Closing and prior to the Closing Date, the Company and the Company Principal Shareholders shall make no announcements relating to this Agreement, the Buyer or the transactions contemplated herein without the prior written consent of the Buyer, which approval will not be unreasonably withheld.
   
  Section 6.08 Schedules; Knowledge. Each party is presumed to have full knowledge of all information set forth in the other Party’s Schedules delivered pursuant to this Agreement, and the Buyer is deemed to have knowledge of the information set forth in the Company’s EDGAR filings.
   
  Section 6.09 Third Party Beneficiaries. This contract is strictly between the Buyer, the Company and the Company Principal Shareholders, and, except as specifically provided, no director, officer, shareholder, employee, agent, independent contractor or any other person or entity shall be deemed to be a third party beneficiary of this Agreement.
   
  Section 6.10 Expenses. The Buyer, the Company and the Company Principal Shareholders each hereto agree to pay their own costs and expenses incurred in negotiating this Agreement including legal, accounting and professional fees, incurred in connection with the Agreement or any of the other transactions contemplated hereby, and those costs and expenses incurred in consummating the transactions described herein.
   
  	 
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  Section 6.11 Entire Agreement. This Agreement represents the entire agreement between the parties relating to the subject matter thereof and supersedes all prior agreements, term sheets, understandings and negotiations, written or oral, with respect to such subject matter.
   
  Section 6.12 Survival; Termination. The representations, warranties, and covenants of the respective parties shall survive the Closing Date for a period of one (1) year.
   
  Section 6.13 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which taken together shall be but a single instrument.
   
  Section 6.14 Amendment or Waiver. Every right and remedy provided herein shall be cumulative with every other right and remedy, whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver by any party of the performance of any obligation by the other shall be construed as a waiver of the same or any other default then, theretofore, or thereafter occurring or existing. At any time prior to the Closing Date, this Agreement may by amended by a writing signed by all parties hereto, with respect to any of the terms contained herein, and any term or condition of this Agreement may be waived or the time for performance may be extended by a writing signed by the Party or Parties for whose benefit the provision is intended.
   
  Section 6.15 Best Efforts. Subject to the terms and conditions herein provided, each Party shall use reasonable best efforts to perform or fulfill all conditions and obligations to be performed or fulfilled by each under this Agreement so that the transactions contemplated hereby shall be consummated as soon as practicable. Each Party also agrees that each shall use reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and regulations to consummate and make effective this Agreement and the transactions contemplated herein.
   
  Section 6.16 Remedies. The Parties agree that the covenants and obligations contained in this Agreement relate to special, unique and extraordinary matters and that a violation of any of the terms hereof or thereof would cause irreparable injury in an amount which would be impossible to estimate or determine and for which any remedy at law would be inadequate. As such, the Parties agree that if either Party fails or refuses to fulfill any of its obligations under this Agreement or to make any payment or deliver any instrument required hereunder or thereunder, then the other Party shall have the remedy of specific performance, which remedy shall be cumulative and nonexclusive and shall be in addition to any other rights and remedies otherwise available under any other contract or at law or in equity and to which such Party might be entitled.
   
  	 
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  Section 6.17 Construction. The Parties acknowledge that each of them has had the benefit of legal counsel of choice and has been afforded an opportunity to review this Agreement with such legal counsel and that this Agreement shall be construed as if jointly drafted by the Parties hereto. In this Agreement, the word “include”, “includes”, “including” and “such as” are to be construed as if they were immediately followed by the words, without limitation.
   
  Section 6.18 Severability. The invalidity or unenforceability of any term, phrase, clause, paragraph, restriction, covenant, agreement or other provision of this Agreement shall in no way affect the validity or enforcement of any other provision or any part thereof.
   
  Section 6.19 Headings; Gender. The paragraph headings contained in this Agreement are for convenience only, and shall in no manner be construed as part of this Agreement. All references in this Agreement as to gender shall be interpreted in the applicable gender of the Parties.
   
  Section 6.19 Effect of Facsimile and Photocopied Signatures. This Agreement may be executed in several counterparts, each of which is an original. It shall not be necessary in making proof of this Agreement or any counterpart hereof to produce or account for any of the other counterparts. A copy of this Agreement signed by one Party and faxed or scanned and emailed to another Party (as a PDF or similar image file) shall be deemed to have been executed and delivered by the signing Party as though an original. A photocopy or PDF of this Agreement shall be effective as an original for all purposes.
   
  (Signature Page Follows)
   
  	 
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  IN WITNESS WHEREOF, the corporate parties hereto have caused this Agreement to be executed by their respective officers, hereunto duly authorized, as of the date first-above written.
   
   
  	COMPANY:	E.R.C. ENERGY RECOVERY CORPORATION	 
	 	 	 	 
		By:		 
	 	Title:	President and a Director	 
	 	Printed Name:	David C. Merrell	 

   
  	BUYER:	EVOTECH CAPITAL S.A.	 
	 	 	 	 
		By:		 
	 	Title:	Division Manager	 
	 	Printed Name:	Abraham Dominguez Cinta	 

   
  COMPANY PRINCIPAL SHAREHOLDERS (solely in their capacity as officers and directors):
   
  ______________________________________
  David C. Merrell, President
   
  ______________________________________
  Michael C. Brown, Secretary
   
  	 
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  APPENDIX I
   
  The following compensation (the “Consideration”) shall be transmitted to the Company and the Company Principal Shareholders upon or after the Closing of this Agreement, as may be applicable, as described below:
   
  To the Company:
   
  	 	  ·
	  Upon Closing $1,000 cash paid by the Buyer to the Company in exchange for 1,000,000 shares of common stock of the Company (the “Purchased Shares”) at a purchase price per share of $0.001.

	 	   
	   

	 	  ·
	  Upon Closing, an additional $49,000 shall be loaned to the Company by the Buyer. It is understood by all Parties that such $50,000 shall be disbursed in accordance with Section 2.20 of this Agreement, in consideration of Releases in the Form of Appendix III

   
  To the Company Principal Shareholders (Messrs. Merrell and Brown), in consideration for locking up their shares pursuant to Section 6.02; payment or compromise of any liabilities not resolved by payment from the $50,000 paid by the Buyer; and indemnification, as applicable to David C. Merrell, as detailed in Section 4.05 of this Agreement:
   
  * An anti-dilution provision, whereby any share issuances which would render Company Principal Shareholders’ holdings to become less than 4.99% of total issued and outstanding shares of Common Stock, shall be automatically accompanied by an additional Anti-Dilution Shares issuance to each, which shall maintain the Company Principal Shareholders’ collective holdings to 4.99% of the outstanding Common Stock, to be divided pro rata, based upon the percentage of their respective pre-Closing Date holdings (David C. Merrell, approximately 91.654%, and Michael C. Brown, approximately .8345%. This provision shall automatically expire upon Market Maturity, defined as follows:
   
  “Market Maturity” shall mean the earlier of: (i) the average daily trading volume of the Company’s Common Stock over any 30 day trading period reaches $80,000 (calculated by multiplying the daily volume by the closing last trade share price for that trading day); or (ii) aggregate revenue of the Company, beginning on the date of this Agreement, reaches $25 million, as reported on its published SEC periodic filings.
   
  * A three-year warrant to purchase 13,682 shares of the Common Stock (or such number of shares as is equal to 1% of the fully-diluted total outstanding shares of Common Stock, calculated on July 1, 2014, whichever is greater), and subject to the same anti-dilution provision above, meaning that such warrant shall provide the right to acquire a number of shares of Common Stock equal to 1% of the outstanding Common Stock of the Company, until the Market Maturity. This warrant may be exercised by the Company Principal Shareholders if and only if such exercise does not result in the Company Principal Shareholders holding a combined total of more than 4.99% of the issued and outstanding shares of the common stock of the Company. The warrant will be issuable after July 1, 2014. The exercise price of the warrant will be $0.20 per share and shall have a “cashless exercise” feature.
   
  The Company Principal Shareholders shall have the right to privately convey any of the Common Stock or warrants acquired, notwithstanding any Lock-Up Agreement, so long as the acquiree executes and delivers the Lock-Up Agreement to the Company.
   
  All such Common Stock shall be deemed fully-paid by reason the value of the covenants and the terms and conditions of this Agreement.
   
  	 
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  APPENDIX II
   
   
   
   
   
   
  	 
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  APPENDIX III
   
   
   
   
   
   
   
   
  27

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