Document:

cogenco8kgenesisexh.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.2

STOCK PURCHASE AGREEMENT

     THIS STOCK PURCHASE AGREEMENT (the “Agreement”) is made and entered into as of the 7th day of March 2008 (the “Execution Date”), by and between COGENCO INTERNATIONAL, INC., a Colorado corporation (“Cogenco”), and GENESIS CAPITAL MANAGEMENT 

LIMITED,  licensed under the laws of St. Vincent and the Grenadines (“Genesis”), who are collectively referred to as the “Parties” and individually as a “Party.” 

R E C I T A L S:

		A.     	Cogenco holds 1,673,256 shares of common stock of DMI Biosciences, Inc., a privately-held Colorado corporation (represented by certificate 303, the “DMI Shares”), of which Cogenco 
desires to transfer 250,000 to Genesis for a price of $1.00 per share. 
	       		
		B.      	Genesis desires to purchase 250,000 of the DMI Shares for $
250,000
, payable by delivering to Cogenco a promissory note in the form of Exhibit A hereto
. 
	     		
	            	C. 	
Cogenco and Genesis have discussed this transaction with DMI, and based on the terms of this Agreement and the representations made herein, DMI is willing to consent to the transaction and to transfer 250,000 of the DMI Shares on its books as contemplated by the Parties. 

     NOW, THEREFORE, in consideration of the above facts, the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereto agree as follows:

     1. Transfer of Shares. 

     (a) Cogenco will, upon receiving Genesis’ signature to this Agreement, deliver a certificate for 250,000 of the DMI Shares to DMI for further transfer of record to Genesis.

     (b) Genesis will, promptly following notification that Cogenco has delivered 250,000 of the DMI Shares to DMI for transfer, deliver 

to Cogenco a promissory note in the form of Exhibit A. 

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     2. Effective Date. The Effective Date of this Agreement is the date that the Cogenco delivers 250,000 of the DMI Shares to DMI for transfer. 

     3. Representations and Warranties of Cogenco. Cogenco hereby represents and warrants to Genesis that:

     3.1 Organization and Standing. Cogenco is a corporation duly organized, existing and in good standing under the laws of the State of Colorado. Cogenco has the requisite corporate power to own and operate its properties and assets, and to carry on its business as presently conducted. 

     3.2 Corporate Power. Cogenco has all requisite legal and corporate power and authority to enter into this Agreement and to transfer 250,000 of the DMI Shares as provided herein. 

     3.3 Authorization. All corporate action on the part of Cogenco, its officers, directors and shareholders necessary for the authorization, execution, delivery and performance of this Agreement by Cogenco and the authorization, sale, issuance and delivery of 250,000 of the DMI Shares pursuant hereto and the performance of all of Cogenco’s obligations under this Agreement have been taken. On the Effective Date, this Agreement shall constitute a valid and binding obligation of Cogenco, enforceable in accordance with its terms, except as enforcement may be limited by applicable bankruptcy laws or other similar laws affecting creditors’ rights generally, and the availability of equitable remedies may be limited by applicable law. 

     3.4 Disclosure. This Agreement, and other written documentation delivered in connection herewith or which have otherwise been obtained by Genesis from Cogenco in its due diligence, when taken as a whole, do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained herein or therein not misleading in light of the circumstances under which they were made.

     3.5. No Liens or Encumbrances. The 250,000 DMI shares are not subject to any liens, security interests or other encumbrances, and are being transferred to Genesis free and clear of all encumbrances.

     4. Representations and Warranties of Genesis. Genesis hereby represents and warrants to Cogenco as follows: 

     4.1 Authorization. On the Effective Date, this Agreement shall constitute a valid and binding obligation of Genesis, enforceable in accordance with its terms, except as enforcement may be limited by applicable bankruptcy laws or other similar laws affecting creditors' rights generally, and the availability of equitable remedies may be limited by applicable law.

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     4.2 Investment Representations. Genesis understands and acknowledges that the 250,000 DMI sShares have not been registered under the Securities Act of 1933 (the “Act”), or any state securities laws, and that the 250,000 DMI shares are being offered under exemptions from the registration requirements of such laws. In that connection, Genesis hereby represents and warrants that: 

               (A) The 250,000 DMI shares will be acquired by Genesis for investment and not with a view to the sale or other distribution thereof within the meaning the Act.

               (B) Genesis is capable of evaluating the merits and risks of any investment in the 250,000 DMI sShares, is financially capable of bearing a total loss of this investment and, as an investor that is currently invested in DMI and an owner of shares of DMI common stock, has: (i) a preexisting business relationship with DMI; and (ii) by reason of Genesis’s business or financial experience, has the capacity to protect its own interest in connection with the acquisition of additional shares of DMI common stock.

               (C) Genesis has received and reviewed all information regarding DMI and Cogenco, their business, prospects, management, assets, liabilities, and financial condition, and properties as it has requested or has determined necessary in the circumstances. Genesis has had ample opportunity to ask questions of and receive answers from Cogenco’s and DMI’s representatives concerning an investment in the 250,000 DMI shares and disposition of the shares of Cogenco common stock, and to obtain any and all documents requested in order to supplement or verify any of the information supplied. 

               (E) Genesis has discussed this Agreement, its due diligence investigation into the operations, assets, financial condition, business, and risks DMI and Cogenco, the advisability of entering into and acquiring the 250,000 of the DMI Shares in exchange for the shares Genesis owns in Cogenco pursuant to this Agreement in accordance with its terms with its legal, financial, investment, tax, and other advisors to the extent that Genesis has determined such consultation to be necessary or appropriate. Genesis has entered into this Agreement and has acquired 250,000 of the DMI Shares pursuant to this Agreement in accordance with the advice received and with full appreciation for the risks associated with investment in DMI. 

   

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     4.3
Repayment Obligation. The financial condition of Genesis is such that it can and it intends to ensure payment of the promissory note in accordance with the terms thereof.

     5. Brokers or Finders. Neither Cogenco nor Genesis has and nor will incur, directly or indirectly, as a result of any action taken pursuant to this Agreement, any liability for brokerage or finders’ fees or agents’ commissions, attorneys’ fees, or any similar charges in connection with this Agreement. 

     6. Miscellaneous. 

     6.1 Governing Law. This Agreement shall be governed in all respects by the laws of the State of Colorado without application of principles of conflicts of laws. 

     6.2 Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto.

     6.3 Entire Agreement; Amendment. This Agreement and the other documents delivered pursuant hereto constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof. Any provision of this Agreement may be amended and may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of Cogenco and Genesis. 

     6.4 Notices. All notices and other communications required or permitted hereunder shall be in writing and shall be (i) delivered personally or by facsimile, (ii) transmitted by first-class mail, postage prepaid, or airmail, postage prepaid, in the event of mailing for delivery outside of the country in which mailed, (iii) transmitted by an overnight courier of recognized reputation or of recognized international reputation in the event of an international delivery, or (iv) transmitted by telecopier (with confirmation by airmail or courier), addressed: 

                    (a) if to Genesis, at Genesis’s address as set forth below, or at such other address as Genesis shall have furnished to Cogenco in writing, or 

                    (b) if to Cogenco, at its address set forth below, or at such other address as Cogenco shall have furnished to each such holder in writing.

Except as otherwise specified herein, all notices and other communications shall be deemed to have been duly given on (A) the date of receipt if delivered personally or by facsimile, (B) the date seven days after posting if transmitted by mail, (C) the date three days after delivery to the courier if sent by recognized or internationally recognized courier service, or (D) the date on which written confirmation would be deemed to have been given as provided above, whether by mail or by courier, as applicable, if transmitted by telecopier, whichever shall first occur. 

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     6.5 Severability of this Agreement. In case any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

     6.6 Titles and Subtitles. The titles of the paragraphs and subparagraphs of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement. 

     6.7 Counterparts; Facsimile. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. Signatures received by facsimile or other electronic means will be considered to be original signatures for the purposes hereof.

     6.8 Expenses. Each party will bear its own costs and expenses incurred in connection with this Agreement. 

     IN WITNESS WHEREOF, the parties have entered into this Agreement as of the day and year first written above. 

	
COGENCO INTERNATIONAL, INC.

	
GENESIS 

CAPITAL MANAGEMENT LIMITED

		
		
	
By: David W. Brenman, President

Cogenco International, Inc.

Suite 1840, 6400 So. Fiddler’s Green Cir. Greenwood Village, CO 80112

Fax:

E-mail: davidbrenman@comcast.net

	
By: 

____________, President

Genesis Capital Management Limited

112 Brodie Street Kingstown

St. Vincent and the Grenadines

Fax: E-mail:

     DMI Biosciences, Inc., hereby advises the Parties to the foregoing agreement that, upon its receipt of the stock certificate representing 250,000 of the DMI Shares and a signed copy of this agreement (which includes signatures by facsimile or other electronic means), it will complete the transfer of record to Genesis as described herein.

DMI Biosciences, Inc.

By:

Bruce Miller, President

 

5cogenco8kexh103.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.3

PROMISSORY NOTE

PROMISE TO PAY. For good and valuable consideration, the receipt of which is hereby acknowledged, GENESIS CAPITAL MANAGEMENT LIMITED, a licensed fund management company (“Genesis”) promises to pay to COGENCO INTERNATIONAL, INC. (“Cogenco”), or order, in lawful money of the United States of America, the principal amount of $250,000.00, together with interest at the rate of 6.000% per annum on the unpaid principal balance from March 6, 2008, until paid in full. The interest rate may change under the terms and conditions of the “INTEREST AFTER DEFAULT” section.

PAYMENT. Genesis will pay the principal and interest due on this loan in eleven installments of $25,000 each installment, with the first installment due on or before June 30, 2008, and each subsequent installment due on or before the last day of each calendar quarter thereafter through the last payment due on December 31, 2010 at which time all remaining principal and interest will then be due. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any late charges; and then to any unpaid collection costs. The annual interest rate for this Note is computed on the basis of a 360 day year; that is, by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days
the principal balance is outstanding. Genesis will pay Cogenco at Cogenco’s address, Suite 1840, 6400 South Fiddler’s Green Circle, Greenwood Village, Colorado 80112, or at such other place as Cogenco may designate in writing.

PREPAYMENT; MINIMUM INTEREST CHARGE. Genesis may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Cogenco in writing, relieve Genesis of Genesis's obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due. Genesis agrees not to send Cogenco payments marked “paid in full”, “without recourse”, or similar language. If Genesis sends such a payment, Cogenco may accept it without losing any of Cogenco’s rights under this Note, and Genesis will remain obligated to pay any further amount owed to Cogenco. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed
 or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to Cogenco at the address set forth above.

LATE CHARGE. If a payment is 11 days or more late, Genesis will be charged 5.000% of the regularly scheduled payment or $10.00, whichever is greater.

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased to 21.000% per annum. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law.

DEFAULT. Each of the following shall constitute an event of default (“Event of Default”) under this Note: 

     Payment Default. Genesis fails to make any payment when due under this Note.

     Other Defaults. Genesis fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Cogenco and Genesis.

     Insolvency. The dissolution or termination of Genesis’ existence as a going business, the insolvency of Genesis, the appointment of a receiver for any part of Genesis’ property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Genesis.

     Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Genesis or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Genesis’ accounts, including deposit accounts, with Cogenco. However, this Event of Default shall not apply if there is a good faith dispute by Genesis as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Genesis gives Cogenco written notice of the creditor or forfeiture proceeding and deposits with Cogenco monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Cogenco, in its sole discretion, as being an adequate re
serve or bond for the dispute.

     Adverse Change. A material adverse change occurs in Genesis’ financial condition, or Cogenco believes the prospect of payment or performance of this Note is impaired.

     Insecurity. Cogenco in good faith believes itself insecure.

     Cure Provisions. If any default, other than a default in payment is curable and if Genesis has not been given a notice of a breach of the same provision of this Note within the preceding twelve months, it may be cured if Genesis, after receiving written notice from Cogenco demanding cure of such default: (1) cures the default within 20 days; or (2) if the cure requires more than 20 days, immediately initiates steps which Cogenco deems in Cogenco’s sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical.

COGENCO'S RIGHTS. Upon default, Cogenco may declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then Genesis will pay that amount.

accrued unpaid interest immediately due, and then Genesis will pay that amount.

ATTORNEYS’ FEES; EXPENSES. Cogenco may hire or pay someone else to help collect this Note if Genesis does not pay. Genesis will pay Cogenco the reasonable costs of such collection. This includes, subject to any limits under applicable law, Cogenco’s attorneys’ fees and Cogencos legal expenses, whether or not there is a lawsuit, including without limitation attorneys’ fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Genesis also will pay any court costs, in addition to all other sums provided by law.

JURY WAIVER. Cogenco and Genesis hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Cogenco or Genesis against the other.

GOVERNING LAW. This Note will be governed by federal law applicable to Cogenco and, to the extent not preempted by federal law, the laws of the State of Colorado without regard to its conflicts of law provisions. This Note has been accepted by Cogenco in the State of Colorado.

CHOICE OF VENUE. If there is a lawsuit, Genesis agrees upon Cogenco’s request to submit to the jurisdiction of the courts of Denver County, State of Colorado.

RIGHT OF SETOFF. To the extent permitted by applicable law, Cogenco reserves a right of setoff in all amounts Cogenco may owe to Genesis and with respect to Genesis’ ownership of Cogenco common stock. Genesis authorizes Cogenco, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts, and, at Cogenco’s option, to administratively freeze all such accounts to allow Cogenco to protect Cogenco’s charge and setoff rights provided in this paragraph.

NO COLLATERAL. This Note is unsecured.

SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Genesis, and upon Genesis’ heirs, personal representatives, successors and assigns, and shall inure to the benefit of Cogenco and its successors and assigns. 

GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Cogenco may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Genesis understands and agrees that, with or without notice to Genesis, Cogenco may with respect to any other Genesis (a) make one or more additional secured or unsecured loans or otherwise extend additional credit; (b) alter, compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of any indebtedness, including increases and decreases of the rate of interest on the indebtedness; (c) exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any security, with or without the substitution of new collateral; (d) apply such security and direct the order or manner of sale thereof, including without limitation, any non-judicial sale permitted by the terms of the controlling security agreements, as Cog
enco in its discretion may determine; (e) release, substitute, agree not to sue, or deal with any one or more of Genesis’ sureties, endorsers, or other guarantors on any terms or in any manner Cogenco may choose; and (f) determine how, when and what application of payments and credits shall be made on any other indebtedness owing by such other Genesis. Genesis and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Cogenco may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; and take any other action deemed necessary by Cogenco without the consent of or notice to anyone. All such parties also ag
ree that Cogenco may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made.

PRIOR TO SIGNING THIS NOTE, GENESIS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE AND CONSULTED WITH ITS LEGAL, FINANCIAL, ACCOUNTING AND OTHER ADVISORS. GENESIS AGREES TO THE TERMS OF THE NOTE.

GENESIS ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

THE INDIVIDUAL EXECUTING THE NOTE BELOW REPRESENTS AND WARRANTS TO COGENCO THAT HE HAS EXECUTED THIS NOTE WITH ALL NECESSARY AUTHORITY FROM GENESIS TO DO SO.

			
	  	  	GENESIS CAPITAL MANAGEMENT LIMITED  
	X  	  	  
	Name:  	  	112 Brodie Street  
	Title:  	  	Kingstown  
	  	  	St. Vincent and the Grenadines  
	  	  	Fax:  
	  	  	E-mail:

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