Document:

solar_ex101.htm

 EXHIBIT 10.1 

 

 PURCHASE AND SALE OF ASSETS AGREEMENT 

 

 THIS PURCHASE AND SALE OF ASSETS AGREEMENT (the "Agreement") made and entered into this 11th day of January , 2011 (the "Execution Date"), 

 BETWEEN: 

 

	
 CLEAN POWER, INC. 

 (the “Seller”) 

	
 OF THE FIRST PART 

	
 - AND - 

 

	
 SOLAR ACQUISITION CORP. 

 (the "Purchaser") 

	
 OF THE SECOND PART 

 BACKGROUND: 

	
 A)   

	
 Purchaser has approached the Seller with the intention  and desire of purchasing specific existing assets held by Clean Power, Inc. (the “Company”).  Seller desires to sell said specific assets held by the Company. 

	
 B)   

	
 All provisions, obligations, and rights expounded within this Agreement are conditioned upon and operate solely under the assumption that the Seller and Purchaser have entered into a business arrangement, and acting without duress, have executed this Agreement freely and willfully with the intention of committing to the transaction as set forth below and hereby express their desires to be held to the requirements, obligations, and rights set hereunder. 

IN CONSIDERATION of the provisions contained in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which consideration is acknowledged, the Parties agree as follows: 

 

	
 I   

	
 PURCHASE 

	
 A   

	
 The Sale 

	
 i.   

	
 Subject to the terms and conditions of this Agreement, and in reliance on the representations, warranties, and conditions set out in this Agreement, the Seller agrees to sell specific assets of the Company to the Purchaser, and the Purchaser agrees to purchase said assets from the Seller.  All assets and liabilities, included under the terms of this Agreement shall be attached hereto as Schedule “A”. 

	
 ii.   

	
 Assets purchase pursuant to the terms of this Agreement shall exclude the following: 

 

    

 1 

    

 

	
 (a)   

	
 All personnel records; 

	
 (b)   

	
 All financial records; 

	
 (c)   

	
 All tax records; 

	
 (d)   

	
 All bank accounts; 

	
 (e)   

	
 All insurance policies; 

	
 (f)   

	
 All charter documents, minute books, stock ledgers and other constituent records relating to the corporate organization of the Seller; and 

	
 (g)   

	
 All assets and holdings in any subsidiaries held by the Company. 

	
 B   

	
 The Purchase Price and Payment 

	
 i.   

	
 The Aggregate Purchase Price shall be exactly five million four hundred fifty nine five hundred one (5,459,501) shares of common capital stock of Solar Acquisition Corp, par value $0.001 to be distributed directly to the shareholders of Clean Power, Inc, pro rata, as listed under Schedule “B” attached hereto. 

	
 ii.   

	
 The Parties agree to cooperate in the filing of all sections under the Internal Revenue Code and under any other applicable taxation legislation, in order to give the required or desired effect to the allocation of the Aggregate Purchase Price. 

	
 C   

	
 Closing 

	
 i.   

	
 The closing of the purchase and sale of the Company (the "Closing") will take place on the 11 day of January 2011 (the "Closing Date") at the offices of the Seller or at such other time and place as the Parties mutually agree. 

	
 

	
 At Closing: 

	
 (a)   

	
 The Purchaser shall provide: 

	
 (1)   

	
 Any and all documentation and forms required to sufficiently and legally secure Seller's, i.e. the shareholders of Clean Power, Inc.,  rights in the stocks or other securities, present and/or future; 

	
 (b)   

	
 the Seller shall provide: 

	
 (1)   

	
 Duly executed forms and documents evidencing transfer of signing authority and control of all assets listed under Schedule A attached hereto; 

	
 (2)   

	
  The stock ledger of Clean Power, Inc. representing all current shareholders. 

 

    

 2 

    

 

	
 II   

	
 REPRESENTATIONS AND WARRANTIES 

	
 A   

	
 Seller's Representations and Warranties 

 The Seller represents and warrants to the Purchaser that: 

	
 i.   

	
 The Company is a corporation, or limited liability company, duly incorporated or continued, validly existing, and in good standing under the laws of the State of Florida and has all requisite authority to carry on business as currently conducted. 

	
 ii.   

	
 The Seller is the absolute beneficial owner of the assets, free and clear of any liens, charges, encumbrances or rights of others, expcept as expressed in the Agreement and the schedules and exhibits attached herein, and is exclusively entitled to dispose of said assets upon execution of this Agreement. 

	
 iii.   

	
 There has been no act or omission by the Seller that would give rise to any valid claim relating to a brokerage commission, finder's fee, or other similar payment. 

	
 iv.   

	
 The Seller is a resident of the United States for the purposes of the Internal Revenue Code. 

	
 v.   

	
 The Seller has no knowledge that any representation or warranty given by the Purchaser in this Agreement is inaccurate or false. 

	
 vi.   

	
 The representations and warranties given in this Agreement are the only representations and warranties; no other representation or warranty, either express or implied, has been given by the Seller to the Purchaser. 

	
 vii.   

	
 The Seller warrants to the Purchaser that each of the representations and warranties made by it is accurate and not misleading at the Closing Date. The Seller acknowledges that the Purchaser is entering into this Agreement in reliance on each warranty and representation. 

	
 viii.   

	
 The Seller's representations and warranties will survive the Closing Date of this Agreement. 

 

    

 3 

    

 

	
 B   

	
 Purchaser's Representations and Warranties 

 The Purchaser represents and warrants to the Seller the following: 

	
 i.   

	
 The Purchaser has funds and means available to pay the full Aggregate Purchase Price and any expenses accumulated by the Purchaser in connection with this Agreement and the Purchaser has not incurred any obligation, commitment, restriction, or liability of any kind, absolute or contingent, present or future, which would adversely affect its ability to perform its obligations under this Agreement. 

	
 ii.   

	
 The Purchaser has not committed any act or omission that would give rise to any valid claim relating to a brokerage commission, finder's fee, or other similar payment. 

	
 iii.   

	
 The Purchaser is a resident of the United States for the purposes of the Internal Revenue Code. 

	
 iv.   

	
 This Agreement has been duly executed by the Purchaser and constitutes a legal and binding obligation of the Purchaser, enforceable in accordance with its terms, except as enforcement may be limited by bankruptcy and insolvency, by other laws affecting the rights of creditors generally, and by equitable remedies granted by a court of competent jurisdiction. 

	
 v.   

	
 The Purchaser has no knowledge that any representation or warranty given by the Seller in this Agreement is inaccurate or false. 

	
 vi.   

	
 The representations and warranties given in this Agreement are the only representations and warranties; the Purchaser has given no other representation or warranty, either express or implied, to the Seller. 

	
 vii.   

	
 The Purchaser warrants to the Seller that each of the representations and warranties made by the Purchaser is accurate and not misleading at the date of Closing. The Purchaser acknowledges that the Seller is entering into this Agreement in reliance on each warranty and representation. 

	
 viii.   

	
 The Purchaser's representations and warranties will survive Closing. 

	
 III   

	
 CONDITIONS PRECEDENT 

	
 A   

	
 Conditions Precedent to Seller's Obligations 

 The obligation of the Seller to complete the sale of the Company under this Agreement is subject to the satisfaction of the following conditions precedent by the Purchaser, on or before the Closing Date, each of which is acknowledged to be for the exclusive benefit of the Seller and may be waived by the Seller entirely or in part: 

 

    

 4 

    

	
 i.   

	
 All of the representations and warranties made by the Purchaser in this Agreement will be true and accurate in all material respects on the Closing Date. 

	
 ii.   

	
 The Purchaser will obtain or complete all forms, documents, consents, approvals, registrations, declarations, orders, or authorizations of any person or any governmental or public body, required of the Purchaser in connection with the execution of this Agreement. 

	
 iii.   

	
 The Seller will receive a legal opinion from the Purchaser's counsel confirming the representations and warranties given by the Purchaser in this Agreement. 

	
 B   

	
 Conditions Precedent to Purchaser's Obligations 

 The obligation of the Purchaser to complete the purchase of the Company under this Agreement is subject to the satisfaction of the following conditions precedent by the Seller, on or before the Closing Date, each of which is acknowledged to be for the exclusive benefit of the Purchaser and may be waived by the Purchaser entirely or in part: 

	
 i.   

	
 All of the representations and warranties made by the Seller in this Agreement will be true and accurate in all material respects on the Closing Date. 

	
 ii.   

	
 The Seller will obtain and complete all forms, documents, consents, approvals, registrations, declarations, orders, or authorizations of any person or governmental or public body that are required of the Seller for the proper execution of this Agreement and the transfer of the shares and assets to the Purchaser. 

	
 iii.   

	
 The shareholders of Seller have approved the sale of assets as described herein in accordance with Fl. Statute 607 § 1202. 

	
 iv.   

	
 The Seller will have executed all documentation necessary to transfer the assets described herein to the Purchaser. 

	
 v.   

	
 The Purchaser will receive a legal opinion from the Seller's counsel confirming the representations and warranties given by the Seller in this Agreement. 

	
 C   

	
 Conditions Precedent Not Satisfied 

	
 i.   

	
 If the Seller fails to satisfy any condition precedent set out in this Agreement on or before the Closing Date, and the Purchaser does not waive the condition, this Agreement will be of no effect on the Closing Date and there will be no liability between the Parties. 

	
 ii.   

	
 If the Purchaser fails to satisfy any condition precedent set out in this Agreement on or before the Closing Date, and the Seller does not waive the condition, this Agreement will be of no effect on the Closing Date and there will be no liability between the Parties, except for any provisions set out in the attached Escrow Agreement relating to forfeiture of deposit. 

 

    

 5 

    

 

	
 IV   

	
 DISCLOSURE 

 The Purchaser further agrees to use all reasonable efforts to ensure the confidentiality of any private or unpublished information received from the Seller or observed at the Seller's premises. If this Agreement is terminated for any reason, the Purchaser will promptly return all written information and documents relating to the Business to the Seller. 

	
 V   

	
 DEFAULT 

	
 A   

	
 If the transaction set out in this Agreement does not close due to the Seller's failure to satisfy its obligations, or due to the Seller's failure to perform or fulfill any conditions set out in this Agreement, the Deposit will be returned to the Purchaser.  Seller hereby agrees to damages assessed that shall be no less than legal fees and costs associated with the sale and any subsequent transactions between the parties related to the sale and purchase of the Company, including but not limited to all audits, expenditures for due diligence, and opportunity costs. 

	
 B   

	
 If the transaction set out in this Agreement does not close due to the Purchaser's failure to satisfy its obligations, or due to the Purchaser's failure to perform or fulfill any conditions set out in this Agreement, the Deposit will be retained by the Seller. 

	
 VI   

	
 INDEMNITY 

 The Seller will indemnify and save the Purchaser harmless from and against all claims, loss, damage, liability or expense which the Purchaser may suffer in regards to any liability or obligation arising out of the ownership or operation of the Company prior to the Closing Date. 

	
 VII   

	
 NOTICES 

 Any notices or deliveries required in the performance of this Agreement will be deemed completed when hand-delivered, delivered by agent, or three (3) days after being placed in the post, postage prepaid, to the Parties at the addresses contained in this Agreement or as the Parties may later designate in writing. 

	
 VIII   

	
 EXPENSES AND COSTS 

 The Parties agree to pay all their own costs and expenses in connection with this Agreement. 

	
 IX   

	
 STOCK RESTRICTIONS 

 Seller agrees and understands that any and all shares received as part of the purchase amount maybe restricted in accordance with the Securities Act of 1933 as to eligibility to be sold. 

 

    

 6 

    

	
 X   

	
 MEDIATION AND ARBITRATION 

	
 A   

	
 In the event a dispute arises out of or in connection with this Agreement, the Parties will attempt to resolve the dispute through friendly consultation. 

	
 B   

	
 If the dispute is not resolved within a reasonable period then any and all outstanding issues may be submitted to mediation with a mediator certified by the Florida Supreme Court and in accordance with Rule 10.100 of the Florida Rules for Certified and Court-Appointed Mediators. 

	
 C   

	
 If mediation is not successful in resolving the entire dispute or is unavailable, any outstanding issues will be submitted to final and binding arbitration in accordance with the laws of the State of Florida. The Parties agree to submit to the rules of either the American Arbitration Association or the National Arbitration Forum at the election of the complaining Party.  The Parties agree that the forum shall be Broward County, Florida and that this Agreement and all matters herein shall be controlled by the laws of the State of Florida and the Rules of the chosen body to govern the arbitration.  The arbitrator's award will be final, and judgment may be entered upon it by any court having jurisdiction within the State of Florida. 

	
 XI   

	
 SEVERABILITY 

 The Parties acknowledge that this Agreement is reasonable, valid, and enforceable; however, if any part of this Agreement is held by a court of competent jurisdiction to be invalid, it is the intent of the Parties that such provision be reduced in scope only to the extent deemed necessary to render the provision reasonable and enforceable and the remainder of the provisions of this Agreement will in no way be affected or invalidated as a result. 

	
 XII   

	
 GENERAL PROVISIONS 

	
 A   

	
 This Agreement will be governed by and construed in accordance with the laws of the State of Florida. 

	
 B   

	
 This Agreement contains the entire agreement between the Parties. Statements or representations which may have been made by any Party to this Agreement in the negotiation stages of this Agreement may in some way be inconsistent with this final written Agreement. All such statements are declared to be of no value to either Party. All other written agreements preceding this Agreement shall only be incorporated if attached as exhibits herein and expressly acknowledged under the attached Parties' Affidavit to Incorporate Documents.  Only the written terms of this Agreement will bind the Parties. 

	
 C   

	
 This Agreement may only be amended or modified by a written instrument executed by all of the Parties. 

	
 D   

	
 A waiver by one Party of any right or benefit provided in this Agreement does not infer or permit a further waiver of that right or benefit, nor does it infer or permit a waiver of any other right or benefit provided in this Agreement. 

 

    

 7 

    

 

	
 E   

	
 This Agreement is the result of the negotiations of the Parties and in the event of any dispute shall not be construed in favor or against any Party on the basis of it having memorialized the Agreement in writing. 

	
 F   

	
 This Agreement will pass to the benefit of and be binding upon the Parties' respective heirs, executors, administrators, successors, and permitted assigns. 

	
 G   

	
 The clauses, paragraphs, and sub paragraphs contained in this Agreement are intended to be read and construed independently of each other. If any part of this Agreement is held to be invalid, this invalidity will not affect the operation of any other part of this Agreement. 

	
 H   

	
 All of the rights, remedies and benefits provided in this Agreement will be cumulative and will not be exclusive of any other such rights, remedies and benefits allowed by law or equity. 

	
 I   

	
 For purposes of interpretation and timing, except where otherwise specified, time is of the essence in this Agreement. 

	
 J   

	
 To facilitate execution, this Agreement may be executed in as many counterparts as may be required, and it shall not be necessary that the signatures of, or on behalf of, each party, or that the signatures of all persons required to bind any party, appear on each counterpart; but it shall be sufficient that the signature of, or on behalf of, each party, or that the signatures of the persons required to bind any party, appear on one or more of the counterparts.  All counterparts must be consistent and contain equal and identical attachments and incorporated agreements. All counterparts shall collectively constitute a single agreement. It shall not be necessary in making proof of this Agreement to produce or account for more than a number of counterparts containing the respective signatures of, or on behalf of, all of the parties hereto.  Further, this Agreement may be executed by facsimile signatures and such facsimile signatures shall be deemed to be the original signatures of the parties. 

	
 K   

	
 Headings are inserted for the convenience of the Parties only and are not to be considered when interpreting this Agreement.  Words in the singular mean and include the plural and vice versa.  Words in the masculine gender include the feminine gender and vice versa.  Words in the neuter gender include the masculine gender and the feminine gender and vice versa. 

 THIS SPACE LEFT INTENTIONALLY BLANK SIGNATURE PAGE TO FOLLOW 

 

    

 8 

    

 

 IN WITNESS WHEREOF the Parties have duly affixed their signatures under hand and seal on this 11 day of January  2011. 

 

	   	   	   	   
	
 Peter Klamka 

	   	
 1/11/2011 

	   
	
 Representative for Solar Acquisition Corp. 

	   	
 Date 

	   
	
 

	   	
 

	   
	 Jason Wynn 	   	 1/11/2011 	   
	 Representative for Clean Power, Inc. 	   	 Date 	   

 

    

 9 

    

  

 

 

 

 SCHEDULE “A” 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 10 

    

 

	
 ASSETS 

	    	    
	
 A) Tangible Assets 

	    	    
	
 HP Laptop & Software (purchased 12/28/09) 

	
 1,208.37 

	    
	
 HP Laptop & Software ( purchased 01/18/10) 

	
 1,551.36 

	    
	
 Website Template 

	
 65.00 

	    
	
 Brochure Template 

	
 70.00 

	    
	
 Groove licenses (x8) 

	
 753.00 

	    
	
 MS Office 07 license( x1) 

	
 155.00 

	    
	
 SmartDraw 07 

	
 217.00 

	    
	
 Stock Photos 

	
 226.00 

	    
	
 Fonts 

	
 222.00 

	    
	
 Anti-virus software 

	
 110.00 

	    
	
 Tangible Assets Total: 

	
 4577.73 

	    
	
 B) Intangible Assets 

	    	    
	
 I. Clean Power Intellectual Property 

	    	    
	
 Clean Power Name 

	    	    
	
 Clean Power Logo 

	    	    
	
 Createcleanpower.com domain 

	    	    
	
 Intelligent energy phrase 

	    	    
	
 Intelligent Energy logo 

	    	    
	
 II. Projects 

	    	    
	
 All leads, contacts and communication related to potential renewable energy projects with municipalities in US 

	    	    
	
 All leads, contacts and communication related to potential renewable energy projects with private entities in US. 

	    	    
	
 All leads, contacts, and communication related to potential solar projects internationally. 

	    	    
	
 All leads, contacts and communication related to potential wind projects in Canada. 

	    	    
	
 All leads, contacts, and communication related to potential geothermal projects. 

	    	    
	
 All leads, contacts, and communication related to potential renewable energy project in Eastern Europe. 

	    	    
	
 All leads, contacts, and communication related to acquisition of renewable energy technology from Israel. 

	    	    
	
  III. Know How and Expertise 

	    	    
	
 All work product, contact lists, and other materials related to regulatory planning and operations. 

	    	    
	
 All work product, contact lists, and materials related to financial products and funding concepts. 

	    	    

 

    

 11 

    

 

	
  IV. Contracts 

	    	    
	
 All rights and obligations related to any and all non disclosure and non circumvention agreements. 

	    	    
	
 All rights and obligations related to any and all consulting or advisory agreements 

	    	    
	
 All rights and obligations related to any and all joint venture agreements. 

	    	    
	
 All rights and obligations related to any and all letters of intent, memoranda of understanding, or other documents related to initiation of business relations 

	    	    
	
 All rights and obligations related to any and all standstill opportunities  currently held. 

	    	    
	
 V.  Business Plans 

	    	    
	
 All business plans 

	    	    
	
 All research, databases, work product related to business plans. 

	    	    
	
 All drawings, outlines, and presentation used for developing a business plan. 

	    	    
	
 All minutes, recorded conversations, transcribed notes, or other recorded communications related to developing a business plan. 

	    	    
	
 All budget projects. 

	    	    
	
 All organizational charts, job descriptions, and structural outlines related to management of the Company 

	    	    
	
  VI. Contacts 

	    	    
	
 All contacts related to educational institutions, research and development centers in gis systems and monitoring systems. 

	    	    
	
  VII. Files 

	    	    
	
 All templates, working documents, archived documents, and other work product filed with the Secretary of the Company. 

	    	    
	
 All templates, working documents, archived documents, and other work product filed with the General Counsel’s office of the Company. 

	    	    
	
 All shared files, files systems, chats, inter-office, communication, and other information shared on office collaborative software. 

	    	    
	
 All minutes, resolutions, unanimous consents, corporate filings, and other documents created by the Board of Directors and Officers for official use. 

	    	    
	
 TOTAL ASSETS 

	    	    

    

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 SCHEDULE “B” 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 13 

    

 Shareholders of Clean Power, Inc. 

	
 Name 

	   	
 Shares issued Pursuant to this Agreement 

	   
	
 Jason Wynn 

	   	   	 1,500,000 	   
	
 Dorrie Torp 

	   	   	 500,000 	   
	
 Joe Logan 

	   	   	 500,000 	   
	
 Jackyn Feeney 

	   	   	 500,000 	   
	
 Howie Lubcher 

	   	   	 150,000 	   
	
 Taurus Financial Group, Ltd. 

	   	   	 150,000 	   
	
 Reni Klyuncheva 

	   	   	 100,000 	   
	
 William Eilers 

	   	   	 350,000 	   
	
 Saffron Brand Consultants, LLC 

	   	   	 6,750 	   
	
 Jodie Gatlin 

	   	   	 3,250 	   
	
 Harvey Glicker 

	   	   	 334,334 	   
	
 Irwin and Carole Kaufman (Jointly) 

	   	   	 116,667 	   
	
 Bruce Levy 

	   	   	 350,000 	   
	
 Daryl Bassett 

	   	   	 750,000 	   
	
 Glenn Meyers 

	   	   	 40000 	   
	
 Frank Hou 

	   	   	 100,000 	   
	
 Lionel Ash 

	   	   	 3,500 	   
	
 Andrew Adler 

	   	   	 5,000 	   
	
 TOTAL 

	   	   	 5,459,501 	   

    

 14Filed by Abe Filing Services Inc. 604-357-3379 - www.abefiling.com - Cannabis Science: EX-4.1

 CANNABIS SCIENCE, INC.
 

 2011 STOCK COMPENSATION PLAN
 

 

 SECTION 1
 INTRODUCTION
 

 1.1
 Establishment.  Cannabis Science, Inc. (the “Company”), a Nevada corporation, hereby establishes the Cannabis Science, Inc. 2011 Non-qualified Stock Plan (the “Plan”) for employees, consultants, directors, and other persons associated with the Company and any of the Company’s subsidiaries, whom the Board wishes to incite.
 

 1.2
 Purposes.  The purposes of this Plan are to (i) attract and retain the best available personnel for positions of responsibility within the Company (ii) provide incentives to employees, officers, and management of the Company, (iii) provide Directors, Consultants and Advisors of the Company with an opportunity to acquire a proprietary interest in the Company to encourage their continued provision of services to the Company, and to provide such persons with incentives and rewards for superior performance more directly linked to the profitability of the Company's business and increases in shareholder value, and (iv) generally to promote the success of the Company's business and the interests of the Company and all of its stockholders, through the issuance of shares of the Company's Common Stock. 
 

 Incentive benefits granted hereunder may be shares.  The amount of shares issued shall be determined by the board or the Compensation Committee and reflected in the terms of written agreements.
 

 SECTION 2
 DEFINITIONS
 

 2.1
 Definitions.  The following terms will have the meanings set forth below:
 

 “Affiliated Corporation” means any corporation or other entity (including, but not limited to, a partnership) which exercises control over the Company through stock ownership or otherwise, and includes subsidiaries of the Company.
 

 “Board” means the Board of Directors of the Company.
 

 “Code” means the Internal Revenue Code of the USA or the Income Tax Act of Canada, as it may be amended form time to time, and as appropriate to the context and as applies to the Eligible Participant.
 

 “Effective Date” means the effective date of the Plan, which will be upon approval of the Board of Directors of the Company.
  
  
  
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 “Eligible Participants” means any employees (including, without limitation, all officers), directors, consultants and any other persons whom the Board wishes to incite to contribute to the fortunes of the Company and permitted by law or policy to receive Shares.
 

 “Non-Statutory Share” means a Share issued under this Plan in accordance with the requirements of the Code, as amended from time to time.
 

 “Plan Limit” shall have the meaning set forth in section 4.1.
 

 “Share” or “Shares” shall mean the Company's Common Shares, $.001 par value per share, or, in the event that the outstanding Common Shares are hereafter changed into or exchanged for different shares of securities of the Company, such other shares or securities.
 

 “Share Agreement” shall mean an agreement that will be entered into by the Company and the Eligible Participant to whom the Shares are issued and will contain terms and conditions governing the issuance of Shares
 

 “Stockholder” means an Eligible Participant designated by the Share Issuance Committee from time to time during the term of the Plan to receive one or more Shares under the Plan.
 

  “Share Issuance Committee” means the Compensation Committee of the Company, unless the Board strikes a separate committee, and in the absence of an empowered committee shall mean the Board.
 

 “Stock” means the common stock of the Company.
 

 2.2
 Gender and Number.  Except where otherwise indicated by the context, the masculine gender also will include the feminine gender, and the definition of any term herein in the singular also will include the plural.
 

 SECTION 3
 PLAN ADMINISTRATION
 

 3.1
 The Plan shall be administered by the Board.  Subject to the express limitations of the Plan, the Board shall have authority in its discretion to determine the Eligible Persons to whom, and the time or times at which, Awards may be granted, the number of shares subject to each Award, the time or times at which an Award will become vested, the performance criteria, business or performance goals or other conditions of an Award, and all other terms of the Award.  The Board shall also have discretionary authority to interpret the Plan, to make all factual determinations under the Plan, and to make all other determinations necessary or advisable for Plan administration.  The Board may prescribe, amend, and rescind rules and regulations relating to the Plan.  All interpretations, determinations, and actions by the Board shall be final, conclusive, and binding upon all parties.
  
  
  
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 SECTION 4
 STOCK SUBJECT TO THE PLAN AND EXCEPTIONS
 

 4.1
 Plan limit.  A maximum of 15,000,000 Shares (“Plan Limit”) are authorized for issuance under the Plan in accordance with the provisions of the Plan.  Shares that are issued will be deducted from the Plan Limit and such Plan Limit shall not be increased without approval of the board or, if shareholders of the Company have so required, without approval of the shareholders of the Company.  While any Shares are outstanding, the Company will retain as authorized and unissued Stock at least the number of Shares from time to time required under the provisions of the Plan or otherwise assure itself of its ability to perform its obligations hereunder.
 

 4.2
 Unused and Forfeited Stock.  Any Shares that are subject to this Plan that are not used because the terms and conditions of the Share Agreement are not met or any Shares that are used for full or partial payment of the purchase price of Shares or any Shares retained by the Company for any purpose of this Plan automatically will be returned to the Plan Limit and become available for again for use under the Plan.
 

 4.3
 Adjustments for Stock Split, Stock Dividend, Etc.  If the Company \at any time increases or decreases the number of its outstanding Shares of Stock, or changes in any way the rights and privileges of such Shares by means of the Payment of a Stock dividend or any other distribution upon such Shares payable in Stock, or through a stock split, subdivision, consolidation, combination, reclassification or recapitalization involving the Stock, then, in relation to the Stock that is affected by the above events, the provisions of this Section 4.3 will apply.  In such event, the numbers, rights and privileges of the following will be increased, decreased or changed in like manner as if such shares had been issued and outstanding, fully paid and non-assessable at the time of such event.
 

 4.4
 General Adjustment Rules.  If any adjustment or substitution provided for in this Section 4 will result in the creation of a fractional Share, the number of Shares will be rounded to the next higher Share.
 

 4.5
 Determination by Share Issuance Committee, Etc.  Adjustments under this Section 4 will be made by the Share Issuance Committee, whose determinations with regard thereto will be final and binding upon all parties.
 

 4.6
 Shares Exceptional to Plan.  With the concurrence of the Board, the Share Issuance Committee may issue Shares outside the Plan or within the Plan but in excess of the Plan Limit, such that the available Plan Limit is not diminished, for exceptional circumstances or to acquire or retain personnel or achieve important goals or strategic targets considered important to the Company but which cannot reasonably be fit into the Plan Limit or the Plan due to insufficiency of available Plan Shares, legal impediments whereby the recipient cannot or is best not included in the Plan, or other purposes or reasons considered appropriate to the Board.
  
  
  
 3
  	                 
	              

 4.7
 Limitations on Issuance.  The Share Issuance Committee shall not, nor does it have the authority to, issue any stock compensation under this Plan for service related to investor relations or capital raising activities.
 

 SECTION 5
 REORGANIZATION OR LIQUIDATION
 

 5.1
 Reorganization and Shares.  In the event that the Company is merged or consolidated with another corporation (other than a merger or consolidation in which the Company is the continuing corporation and that does not result in any reclassification or change of outstanding Shares), or if all or substantially all of the assets or control of the outstanding voting stock of the Company is acquired by any other corporation, business entity or person (other than by a sale or conveyance in which the Company continues as a holding company of an entity or entities that conduct the business of businesses formerly conducted by the Company), or in case of a reorganization (other than a reorganization under the United States Bankruptcy Code) or liquidation of the Company, the Share Issuance Committee will have the power and discretion to prescribe the terms and conditions for the modification of any outstanding Shares issued hereunder.  By way of illustration, and not by way of limitation, the Share Issuance Committee may provide that such Shares will be exchanged or converted into Shares of the surviving or acquiring corporation, or may provide for a payment or distribution in respect of outstanding Shares in cancellation thereof.  Any such determinations by the Share Issuance Committee may be made generally with respect to all Stockholders, or may be made on a case-by-case base with respect to particular Stockholders.  The provisions of this Section 5 will not apply to any transaction undertaken for the purpose of reincorporating the Company under the laws of another jurisdiction, if such transaction does not materially affect the beneficial ownership of the Company’s capital stock.  Any determination by the Share Issuance Committee hereunder shall not amend the terms of any Share without the consent of the Stockholder unless, in the opinion of the Committee acting reasonably, such amendment is necessary to permit the alterations to the Company to be effected and such is in the interest of shareholders generally.
 

 SECTION 6
 STOCK SHARES
 

 6.1
 Issuance of Shares.  An Eligible Participant may be issued one or more Shares. 
  
  
  
 4
  	                 
	              

 6.2
 Share Agreements.  Each Share issued under the Plan will be evidenced by a written Share Agreement that will be entered into by the Company and the Eligible Participant to whom the Share is issued (the “Stockholder”), and will be deemed to contain the following terms and conditions, unless other terms and conditions inconsistent therewith have been entered into the Share Agreement.  In the event of inconsistency between the provisions of the Plan and any Share Agreement entered into, the provisions of the Share Agreement will be considered to have been determined to be exceptional from the below and such Share Agreement shall govern where not inconsistent with law.  However, the provisions of the Plan will govern where the Share Agreement omits to provide for a matter governed by the Plan and the Share Agreement will not be incomplete nor unenforceable if it fails to provide for a matter provided by the terms of this Plan as such shall be incorporated by reference:
 

 (a) Number of Shares.  Each Share Agreement will state that it covers a specified number of Shares, as determined by the Share Issuance Committee and the Share Agreement.  If the Share Agreement fails to state the number then it shall be the number set forth in the minutes of the Share Issuance Committee.
 

 (b) Issuance.  Each share agreement will state the amount of Shares which shall be issued.  
 

 (c) Date of Issuance.  Shares will be considered as having been issued on the date specified in the issuance resolution of the Share Issuance Committee.
 

 6.3
 Stockholder Privileges.  Prior to the issuance of the Shares to the Stockholder, the Stockholder will have no rights as a stockholder with respect to any Shares issued to such person under this Plan and, until the Stockholder becomes the holder of the record of such Stock, no adjustments, other than those described in Section 4, will be made for dividends or other distributions or other rights to which there is a record date preceding the date such Stockholder becomes the holder of record of such Stock.
 

 

 SECTION 7
 RIGHTS OF EMPLOYEES AND STOCKHOLDERS
 

 7.1
 Employment.  Nothing contained in the Plan or in any Share Agreement will confer upon any Eligible Participant any right with respect to the continuation of employment by the Company, or interfere in any way with the right of the Company, subject to the terms of any separate employment agreement to the contrary, at any time to terminate such employment or to increase or decrease the compensation of such Eligible Participant form the rate in existence at the time of the issuance of Shares.   
 

  
 SECTION 8
 GENERAL RESTRICTIONS
 

 8.1
 Investment representations.  The Company may require any person to whom Shares are issued to give written assurances, in substance and form satisfactory to the Company and its counsel, to the effect that such person is acquiring the Stock subject to the Share Agreement for his own account for investment and not with any present intention of selling and to such other effects as the Company deems necessary or appropriate in order to comply with federal and applicable state and provincial securities laws.  Legends evidencing such restrictions may be placed on the certificates evidencing the Stock.
  
  
  
 5
  	                 
	              

 8.2
 Compliance with Securities Laws.  Each Share Agreement will be subject to the requirement that if at any time counsel to the Company determines that the listing, registration or qualification of the Shares upon any securities exchange or under any state, provincial or federal law, or the consent or approval of any governmental or regulatory body, is necessary as a condition of, or in connection with, the issuance of Shares thereunder, such Shares may not be issued in whole or in part unless such listing, registration, qualification, consent or approval will have been effected or obtained on conditions acceptable to the Share Issuance Committee.  Nothing herein will be deemed to require the Company to apply for or to obtain such listing, registration or qualification.  However, where available to the circumstances of an Stockholder the Company will include the Share with any other filings that the Company elects, at its sole discretion, to file under S-8 or any other filings with the SEC but the Company shall not be obliged to make an individual filing for a particular Share, unless such shall have been required pursuant to the specific Share Agreement.
 

 

 SECTION 9
 OTHER EMPLOYEE BENEFITS
 

 9.1
 Benefits and Taxes.  The amount of any compensation deemed to be received by a Stockholder as a result of a Share issuance will not constitute “earnings” with respect to which any other employee benefits of such Stockholder are determined, including, without limitation, benefits under any pension, profit sharing, life insurance or salary continuation plan.  Any taxable consequences of any Share issuance are entirely the responsibility of the Stockholder and no contribution shall be required of the Company and, further, if the Company should suffer liability for unpaid taxes of a Stockholder then the full amount of such shall be a debt of the Stockholder to the Company payable immediately and for which the Company may seek judgment and, before judgment or process, may set-off against any amounts due to the Stockholder or may recover, again before judgment or process, by exercise of voiding the Share Issuance at the discretion of the Share Issuance Committee. 
 

 

 SECTION 10
 PLAN AMENDMENT, MODIFICATION AND TERMINATION
 

 10.1
 Amendment.  The Board may at any time terminate and, from time to time, may amend or modify the Plan provided, however, that no amendment or modification may become effective without approval of the amendment or modification by the stockholders where stockholder approval is required to enable the Plan to satisfy any applicable statutory requirements, or if the Company, on the advice of counsel, determines that stockholder approval otherwise is necessary or desirable.
 

 No amendment, modification or termination of the Plan will in any manner adversely affect any Shares theretofore issued under the Plan, without the consent of the Stockholders holding such Shares.
  
  
  
 6
  	                
	              

 SECTION 11
 WITHHOLDING
 

 11.1
 Withholding Requirement.  The Company’s obligations to issue Shares will be subject to the Stockholder’s satisfaction of all applicable federal, state and local income and other tax withholding requirements and applicable securities requirements.
 

 11.2
 Withholding With Stock.  At the time Shares are issued the Share Issuance Committee, in its sole discretion, may permit the Stockholder to pay all such amounts of tax withholding, or any part thereof, that is due upon exercise of the Share by such adjustments as the Share Issuance Committee determines.  
 

 

 SECTION 12
 BROKERAGE ARRANGEMENTS
 

 12.1
 Brokerage.  The Share Issuance Committee, in its discretion, may enter into arrangements with one or more banks, brokers or other financial institutions to facilitate the disposition of shares acquired upon, including, without limitation, sale of acquired Shares
  
 

 SECTION 13
 NONEXCLUSIVITY OF THE PLAN
 

 13.1
 Other Plans.  The adoption of this Plan by the Board will not be construed as creating any limitations on the power or authority of the Board to adopt such other or additional incentive or other compensation arrangements of whatever nature as the Board may deem necessary or desirable or preclude or limit the continuation of any other plan, practice or arrangement for the payment of compensation or fringe benefits to employees generally, or to any class or group of employees, or any other persons that the Company or any Affiliated Corporation now has lawfully put into effect, including, without limitation, any retirement, pension, savings and stock purchase plan, insurance, death and disability benefits and executive short-term incentive plans.
 

 

 SECTION 14
 REQUIREMENTS OF LAW
 

 14.1
 Requirements of Law.  The issuance of Stock and the payment of cash pursuant to the Plan will be subject to all applicable laws, rules and regulations.
 

 14.2
 Governing Law.  The Plan and all agreements hereunder will be construed in accordance with and governed by the laws of the State of Nevada.
 

 

 SECTION 15
 DURATION OF THE PLAN
 

 15.1
 Termination.  The Plan will terminate at such time as may be determined by the Board, and no Shares will be issued after such termination.  If not sooner terminated under the preceding sentence, the Plan will fully cease and expire on the date that the Plan Limit has been exhausted and all Shares issued.  
  
  
  
 7

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