Document:

ex10_19.htm

Exhibit 10.19

 

 

SALES AGENCY AGREEMENT

THIS SALES AGENCY AGREEMENT (the “Agreement”) is entered into as of January 18, 2011, (the “Effective Date”) by and between GREEN ENERGY MANAGEMENT SERVICES HOLDINGS, Inc., a Delaware Corporation, its subsidiaries and controlled affiliates, (“Company”) and TITAN Management and Consulting, LLC., a New York Limited Liability Company, or its designee (“Sales Representative”).  The Company and Sales Representative are sometimes referred to herein as the “Parties” and individually as a “Party.”

RECITALS

WHEREAS, the Company is engaged in marketing energy-efficient products and services (the “Products”); and

WHEREAS, the Company desires to retain Sales Representative as its sales agent to market and sell the Products and Sales Representative wishes to accept such appointment on the terms and conditions set forth herein.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants and agreements of the parties, the adequacy and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1.             Incorporation of Recitals.  The Recitals set forth above are true and correct and are incorporated into and made a part of this Agreement.

2.             Appointment and Territory.  The Company hereby engages and appoints Sales Representative as the company’s non-exclusive sales representative for the solicitation and acceptance of orders for any and all of the products in the United States, the Caribbean, Mexico and Canada (the “Territory”) and Sales Representative hereby accepts said appointment.

3.             Orders and Sales.

 

            a.           The Products applicable to this Agreement shall be the Company’s entire products line as in effect from time-to-time during the term as hereinafter defined).

b.           Unless otherwise specifically agreed, Sales representative agrees that all orders solicited and taken by it shall be made in conjunction and with the approval of the Company and on standard prices specified by the Company for Products from time-to-time during the Term.  Decisions regarding a customer’s credit shall be made by the Company.

 

 

75 West Street, 18th Floor, Suite A, New York, NY 10006

www.gempowered.com

  

 

  

c.           The Sales Representative shall identify its prospects and opportunities, in writing, and the Company shall accept the prospect as being thereafter assigned to the Sales Representative.  All prospects, opportunities and Customers assigned to the Sales Representative are listed on Exhibit A, attached hereto, which shall be updated by the Sales Representative from time to time, at minimum, quarterly.

d.           The Company shall use commercially reasonable efforts to assure that prompt shipment and installation shall be made on all orders received from Sales Representative and to treat orders secured by Sales Representative with at least the same priority concerning shipments as any other customer of the Company.

e.           During the term of this Agreement, the Company shall License Sales Representative to use, on a non-exclusive basis, all trademarks, trade names and identifying slogans relating to the Company and the Business in connection with the performance of Sales Representative’s obligations under Agreement.

4.             Term.  The term of this Agreement (the “Term”) shall commence as of Effective Date and shall continue for such period as the Consulting Services Agreement of even date herewith by and between the Company and TITAN Management and Consulting, LLC, or its designee (the “Consulting Agreement”) is in effect.

5.             Additional Duties of Sales Representative.

a.           Sales Representative will use commercially reasonable efforts to market and sell the Products.

b.           Sales Representative shall comply with all Federal, state and local laws and regulations in performing its obligations hereunder.

c.           Sales Representative shall bear all of its out-of-pocket expenses incurred in connection with the performance of its obligations hereunder.

6.             Additional Duties of the Company.

 

a.           The Company shall use commercially reasonable efforts to conduct the Business and accept and fulfill orders of the Products in a high quality and professional manner.

b.           The Company comply with all Federal, state and local laws quantities and without charge, sales and marketing and technical materials for the Products,.

7.             Indemnification.  Each Party hereby indemnifies and holds harmless the other Party and its shareholders, directors, members, managers, officers, employees, attorneys and agents from and against all claims, losses and expenses, including reasonable attorneys’ fees and costs, arising from a breach by Party of its representations, warranties and covenants in this Agreement.

 

 

75 West Street, 18th Floor, Suite A, New York, NY 10006

www.gempowered.com

  

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8.             Compensation.  The Company shall pay Sales Representative a commission of fifteen percent (15%) of the net profits of Products sold by the Company pursuant to this Agreement (“Commission”).  Net profits are described as total revenue received by the Company, less all direct cost incurred by the Company.  Commission shall earn upon receipt by the Company of customer payment of products.  The Company Shall is entitled to a credit for any gross sales amounts refunded to customers for returns of similar events in accordance with Company’s policies in effect from time-to-time during the Term.

9.            The Company shall have the right to compensate the Sales Representative in cash or unrestricted stock, at the sole and absolute discretion of the Company, but at no time shall the Company pay less then 50 % of commissions due in cash.

10.           The Company shall pay the Sales Representative One Million (1,000,000) shares of stock with the execution of a binding Strategic Alliance, Joint Venture or similar Agreement with 5 Star Electric.

11.           Manners of Payment.

a.           On or before 10th day of each calendar month, the Company shall pay to sales representatives Commissions due on gross sales for the prior calendar month by wire transfer to a bank account designated by Sales Representative in writing to the Company.

b.           Each payment of Commissions by the Company to Sales Representative shall be accompanied by a detail report showing the calculation of such payment.

c.           All Commissions hereunder not paid within five (5) business days of the due date shall bear a late fee of one and one-half percent (1.5%) of the unpaid amount per month accruing from the due date.

d.           The Company Shall keep and maintain complete and accurate books of account and records in connection with its obligations under the Agreement at its principal place of business during the term and for (1) year thereafter.

12.           Audit Rights.  During the Term and for one (1) year thereafter, Sales Representative may audit the financial books, information systems and records of the Company as reasonably necessary to verify the Company’s compliance wits its obligations under the Agreement; provided, however, that

a.           Such audit should be at the sole cost and expense of Sales Representative (unless such audit reveals that payments of compensation due to Sales Representative for any calendar month audited where understated by more than such unpaid compensation, together with the interest from the date originally due at the rate of ten percent (10%) per annum, and shall reimburse Sales Representative out-of-pocket costs of such audit; 

 

 

75 West Street, 18th Floor, Suite A, New York, NY 10006

www.gempowered.com

  

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b.           Sales Representative may not audit the Company more then twice per year;

c.           any such audit should be conducted only during regular business hours and in such a manner as not unreasonably to interfere with normal business activities of the Company;

d.           Sales Representative’s audit rights with the respect to each calendar year during the Term shall expire one (1) year after the end of such calendar year; and

e.           The Company shall keep and maintain complete and accurate books of account and records in connection with its obligations under the Agreement at its principal place of business until during the period in which Sales Representative has audit rights hereunder, unless a legal action with respect thereto commenced during such period.

13.           Termination.  Either Party my terminate this Agreement immediately for “cause.”  For purposes of this section 11, the Agreement shall be considered terminated for “cause” only on account of the occurrence of one or more of the following events

a.           By the Company, if Sales Representative discloses Confidential Information in violation of Section 14;

b.           by either Party, if the other Party becomes bankrupt or insolvent;

c.           by either Party, if the other Party, terminates the Consulting Services Agreement of even date herewith between the Company and the Consultant for “cause” (as defined therein); or

d.           Notwithstanding termination of this Agreement, Sales Representative shall be entitled to Commissions on all Customer Leases secured by it prior to the date of termination, but which are pending acceptance and/or processing on the date of termination.

14.           Representations and Warranties.  Each Party represents and warrants to the other that:

a.           each party has not entered into any contracts other obligations that will interfere with the Party’s ability to perform its obligations under this Agreement;

b.           each party has all right, title and interest in and to its assets necessary to perform this Agreement, and all licenses, permits and governmental authorizations necessary to perform its obligations under this Agreement; and

c.           each Party not assigned, delegate, sold, pledged, or otherwise transferred any intellectual property rights or other ownership rights to its properties in a manner that interferes with a party’s obligations, representations, warranties or covenants under this Agreement and will not do so while this Agreement in effect. 

 

 

75 West Street, 18th Floor, Suite A, New York, NY 10006

www.gempowered.com

  

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15.           Confidential Information.  The party acknowledge and agree that during the course of the performance of their respective obligation under this Agreement each party my disclose Confidential Information (as hereafter defined) to the other party.  Each Party agrees that it shall protect the Confidentiality of the Confidential Information Using no less then the same degree of care that each Party uses to protect its own Confidential Information, but in no case less that reasonable care.  In the event each Party is the recipient of any subpoena, litigation discovery request, or other legal demand for disclosure of the Confidential Information, each Party shall promptly notify the other party of the receipt of such of demand at the earliest possible time so as to afford the other Party the opportunity to attempt to quash any such demand, or seek an appropriate order from a court of competent jurisdiction.  As used in this Agreement “Confidential Information” shall mean all non public information designated in writing by Party as such.

16.           Specific Performance; Survival.  In the event of breach or a threatened breach of Section 15, a Party shall be entitled, in addition to any other relief or remedy available at law, to seek injunctive or declaratory relief without the necessity of proving irreparable harm or posting a bond.  The provision of Section 15 should survive the Term.

17.           Independent Contractor.  The parties agree that the Sales Representative is an independent contractor and that nothing herein shall constitute a partnership or join venture between the Company and Sales Representative.

18.           No Brokers.  Each of the parties represent and warrants to the other that it has not utilized the services of any finder, broker or agent.  Each of the Parties agrees to indemnify the other against any and all liabilities to any person, firm or corporation claiming any fee or commission of any kind on account of services rendered on behalf of such Party In connection with transactions contemplated by this Agreement.

19.           Applicable Law.  This document shall, in all respects, be governed by the laws of the State of New York excluding any conflicts of laws provisions.  The Parties acknowledge that substantially all of the negotiations relating to this Agreement were conducted in New York, and that this Agreement has been executed by both Parties in New York.  Any legal suit, action or proceeding against either party arising out of or relating to this Agreement shall be instituted in a federal or state court in the state of New York, and each Party waves any objections which it may now hereafter have to the laying of jurisdiction of any such court in any suit, action proceeding.

20.           Assignability.   All of the terms and provision contained herein shall inure to the benefit of and shall be binding upon the Parties and their respective heirs, personal representative, successors and assigns.  The obligations of Sale Representative may not be delegated, however, and Sales Representative may not without the Company’s written consent thereto, assign, transfer, convey, pledge, encumber, hypothecate or otherwise dispose of this Agreement or any interest therein.  Any such attempted delegation or disposition should be null and void and without effect.  The Company and Sales Representative agree that this Agreement and all of the Company’s rights and obligations hereunder my be assigned or transferred by the Company to and my be assumed By and become biding upon and my inure to the benefit of any affiliate of or successor to the Company.  The term “successor” shall mean, with respect to the Company or any of its subsidiaries, and any other assets, or otherwise, acquires all or a material part of the assets of the Company.  Any assignment by the Company of its rights and obligations hereunder to any affiliates or successor shall not be considered a termination for purposes of this Agreement. 

 

 

75 West Street, 18th Floor, Suite A, New York, NY 10006

www.gempowered.com

  

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21.           Notices.  Any and all notices required or desired to be given hereunder by either Party shall be in writing and shall be validly given or made to the other if delivered either by hand delivery, overnight courier, or if deposited in the United States Mail, certified or registered, postage prepaid, return receipt requested.  If notice is served by hand delivery or overnight courier, notice shall be deemed effective upon receipt.  If notice is served by United States mail, notice shall be deemed effective (3) days after it is sent.  In all instances, notice shall be sent to the Parties at the following Parties at the following addresses:

If to the Company or the Members:

Michael Samuel

3401 N Miami Ave, Suite 240

Miami, Florida  33127

If to Consultant:

Titan Consulting & Management

75 West Street,

18th Floor, Suite A

New York, NY

Attn:  Anthony Corso

Either Party may change its address for the purpose of receiving notices by written notice given to the other Party.

22.           Modifications or Amendments.  No amendment, change or modification of this document shall be valid unless in writing and signed by each of the Parties.

23.           Waiver.  No reliance upon or waiver of one or more provisions of this Agreement shall constitute a waiver of any other provisions hereof.

24.           Severability.  If any provision of this Agreement as applied to either Party or to any circumstances shall be adjudged by a court of competent jurisdiction to be void or unenforceable, the same shall in no way affect any other provision of this Agreement or the validity or enforceability of this Agreement.  If any court construes any of the provisions to be unreasonable because of the duration of such provision or the geographic or other scope thereof, such court may reduce the duration or restrict the geographic or other scope of such provision and enforce such provision as so reduced or restricted. 

 

 

75 West Street, 18th Floor, Suite A, New York, NY 10006

www.gempowered.com

  

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25.           Separate Counterparts.  This document may be executed in one or more separate counterparts, each of which, when so executed, shall be deemed to be an original.  Such counterparts shall, together, constitute and shall be one and the same instrument.

26.           Headings.  The captions appearing at the commencement of the sections hereof are descriptive only and are for convenience of reference.  Should there be any conflict between any such caption and the section at the head of which it appears, the substantive provisions of such section and not such caption shall control and govern in the construction of this document.

27.           Further Assurances.  Each of the Parties shall execute and deliver any and all additional papers, document and other assurances, and shall so any and all acts and things reasonably necessary in connection with the performance of their obligations hereunder and to carry out their intentions as set forth herein.

28.           Entire Agreement.  This Agreement, together with any agreement referred to or incorporated by reference herein, constitutes the entire understanding and agreement of the Parties with respect to the subject matter of this Agreement, and any and all prior agreements, understandings or representations are hereby terminated and cancelled in their entirety.

29.           Neutral Construction.  Neither Party may rely on any drafts of this Agreement in any interpretation of the Agreement.  Each Party to this Agreement has reviewed this Agreement and has participated in its drafting and, accordingly, neither Party shall attempt to invoke the normal rule of construction to the effect that ambiguities are to be resolved against the drafting party in any interpretation of this Agreement.

 

 

75 West Street, 18th Floor, Suite A, New York, NY 10006

www.gempowered.com

  

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IN WITNESS WHEREOF, the Parties here to have caused this Agreement to be duly executed as of the date first above written.

	
GREEN ENERGY MANAGEMENT

	  
	
SERVICES HOLDINGS, INC.

	  
	  	  	  
	  	  	  
	
By:

	
/s/ Michael Samuel

	  
	  	  	  
	
Name:

	
Michael Samuel

	
[print]

	  	  	  
	
Title:

	
C.E.O.

	  
	  	  	  
	  	  	  
	
SALES REPRESENTATIVE:

	  
	  	  	  
	
TITAN Management and Consulting, LLC.

	  
	  	  	  
	  	  	  
	
By:

	
/s/ Anthony Corso

	  
	  	  	  
	
Name:

	
Anthony Corso

	
[print]

	  	  	  
	
Title:

	
Managing Partner

	  

 

 

75 West Street, 18th Floor, Suite A, New York, NY 10006

www.gempowered.com

 

 

8ex10_20.htm

Exhibit 10.20

Financial Partner’s Funding, LLC

4430 Prairie Avenue

Miami Beach, Florida  33140

 

Michael Samuel – Chairman & CEO

Green Energy Management Services, Inc.

3401 North Miami Avenue, Suite 240

Miami, Florida  33127

 

Dear Mr. Samuel:

Having reviewed your submitted Business Plan and Executive Summary, Financial Partner’s Funding, LLC (“FPF”) is pleased to commit up to two hundred million dollars ($200,000,000.00) in equipment leases to finance 3rd party purchases of Green Energy Management Services, Inc. (“GEM” or the “Company”) lighting (L.E.D.) and airlock products.  These leases will be for typical term of seventy-two (72) months and carry a prevailing market rate of interest, structured to allow a third party lessee (“Lessee”) to pay for the purchased products from savings realized as a result of the installed lighting and/or water consumption products.  This would enable the Lessee to pay for the product(s) over time through monthly energy/utility savings.  At the end of the lease term, the Lessee may purchase the products for a nominal figure, thereby keeping all future savings for the duration of the product’s life.  Any leasing/financing of airlock products will be based on shared savings to the 3rd party and will be incorporated into a separate agreement between FPF and GEM.

The GEM products shall include a warranty for the term of the lease to be provided by the manufacturer of the particular product(s).  GEM shall establish a reserve with FPF (to cover the cost to warranty) products manufactured by GEM.  The specific terms and conditions of each lease will be determined, in FPF’s sole and absolute discretion, by the underwriting credit worthiness of the Lessee.  This financing offered herein is limited to GEM clients that meet and are deemed qualified under these standard industry criteria at the time of application.  The Lessee shall be required to cooperate in providing the necessary credit information at the time of the application and sale, allowing FPI to reach the appropriate credit determination.  FPF retains in its sole and absolute discretion to accept or reject any applicant based on its review and conformity to these standards.

Consistent with the foregoing, the parties agree to the following:

	
1.

	
Upon execution of this agreement, the Company shall issue FPF stock options which upon exercise, shall give FPF an ownership of no less than fifteen (15%) percent of the then outstanding common stock of the Company (GEM).  These options may be exercised at FPF’s discretion (anytime) over the forty-eight (48) month period commencing on the date of this Agreement (the “Effective Date”).  The exercise price shall be 110% of the closing price on the OTCBB on March 2, 2011.  In the event of a Company stock split, the option exercise price to FPF per share shall be reduced pari passu in accordance with the fractional stock split.

	
2.

	
In accordance with the 48 month period mentioned above, the effective term for the $200,000,000 financial commitment shall also be for a period of 48 months.

  

 

  

 

Financial Partner’s Funding, LLC

4430 Prairie Avenue

Miami Beach, Florida  33140

	
3.

	
In the event of the exercise of any option(s), FPF may, at its sole and absolute discretion, either (i) exercise by means of a cashless exercise; or (ii) pay the purchase price to GEM in cash or certified funds at the time of purchase.

	
4.

	
Company represents and warrants that, as of the date of the execution of this letter, Company has 442,403,636 issued and outstanding shares.  The Company further warrants and agrees that, within six (6) months of the execution of this letter, it will increase the number of shares it is authorized to issue to One Billion (1,000,000,000).*  The Company shall within six (6) months of the execution of this commitment letter or sooner if required by law register the shares underlying the stock options for resale by FPF under the Securities Act of 1933, as amended and applicable securities laws.  Such registration shall remain in effect until the shares may be sold without limitation under the Securities Act without registration.  Notwithstanding the foregoing, FPF agrees that it will not sell, transfer, convey or pledge these shares for a period of twelve (12) months from the Effective Date without the prior written consent of the Company,

	
5.

	
TERMINATION FOR BREACH:  In the event that the Company meets the threshold as defined and FPF does not fund the qualified projects as stated FPF must return all proportionally remaining options to the company within 48 hours and this agreement would be terminated.

It is further agreed that FPF will require due diligence on GEM’s products (including but not limited to lifespan, warranty terms and other representations) for which FPF will be reimbursed a $50,000.00 fee by GEM to be paid from proceeds of the first lease.

Additional Terms and Conditions:

	
  

	
A.

	
Any and all funding contemplated under this agreement shall be subject to (i) FPF’s due diligence and approval of the Lessee, including but not limited to Lessee’s execution of any commitments or agreements as may be required from time to time by FPF or the funding source; (ii) proper execution and delivery of all documents required by FPF; (iii) any and all necessary legal opinions required by FPF; and (iv) Lessee and GEM compliance with all terms, covenants, conditions, restrictions, collateral requirements, funding conditions and other requirements of FPF and/or the funding source.

	
  

	
B.

	
The Company acknowledges that FPF may cause some of its duties to be performed by an affiliate or a third party and all rights and benefits under this agreement in favor of FPF shall be available to the FPF designated affiliate or a designated third party.  The financing of the purchase of GEM products shall be exclusive to FPF and the Company shall not enter into another agreement or arrangement to provide funding to third party purchasers of GEM products without the express written consent of FPF which may be withheld in FPF’s sole and absolute discretion.  In the event that the Company obtains a written offer to receive financing on terms more beneficial than those offered by FPF, the Company shall provide FPF with written notice and a copy of the term sheet within forty-eight (48) hours and FPF shall have the opportunity to provide the financing on similar terms.  FPF shall have seventy-two (72) hours to elect to match the offered financing terms.  If FPF fails to respond within the allotted time, the Company shall have the right to pursue the alternative financing on that particular transaction.  The Company may conduct discussions with any third parties regarding financing and other matters provided, however, that the Company shall notify FPF of all related inquiries and discussions.

 

* It will not be considered a condition of default under this Agreement if GEM does not have a sufficient number of issued, authorized and outstanding shares for the foregoing options to be exercised on the Effective Date so long as the aforementioned shareholders meeting occurs within (90) days of the Effective Date.

  

2

  

 

Financial Partner’s Funding, LLC

4430 Prairie Avenue

Miami Beach, Florida  33140

 

	
  

	
C.

	
Notwithstanding anything herein to the contrary, FPF shall not be obligated to fund any particular transaction or proposed lease (a “Transaction”), by or at the direction of the Company or any third party.

	
  

	
D.

	
FPF may assign its obligations under this agreement to any affiliate or third-party of equal financial solvency.  Any such assignment shall relieve FPF of its obligations hereunder.

	
  

	
E.

	
The parties acknowledge that FPF has various professionals in its employ and ownership, such as lawyers and accountants.  The parties acknowledge that these persons have not and are not acting in their professional capacity on behalf of any of the parties or on behalf of the Company.  Each of the parties represents that it has been advised to seek independent legal counsel.  Each of the parties represents that it has sought and obtained, and will continue to seek and obtain as necessary from time to time, the advice of independent legal and accounting professional advice in connection with this venture and does not and will not seek to obtain the advice of, or to retain any of, the legal and accounting professionals affiliated with FPF from time to time for any professional advice.

	
  

	
F.

	
The Company agrees that, except as required by law or pursuant to a valid subpoena or FPF’s prior written consent, any advice rendered by FPF to the Company or the venture pursuant to this agreement may not be disclosed and shall remain confidential.  Further, FPF shall be provided written notice within 24 hours of receipt or knowledge of any required disclosure.  The parties agree that FPF may, at its option, publish announcements of any successful restructuring, financing or similar events in conventional “tombstone” style with prior written notice to the Company.  The execution and delivery of this agreement by the persons below have been duly authorized by all necessary action, corporate and otherwise of the parties.

  

3

  

 

Financial Partner’s Funding, LLC

4430 Prairie Avenue

Miami Beach, Florida  33140

 

	
  

	
G.

	
By signing below, GEM acknowledges good and valuable consideration for this agreement and that this agreement has been approved by the parties hereto and executed with the advice and approval of their respective independent counsel and duly authorized by all relevant action, corporate and otherwise, and anyone else whose consent is required.  The Company agrees to cooperate and deliver all documents with respect to this matter contemplated by this agreement or otherwise reasonably requested by FPF or its counsel.  This agreement shall not be construed more stringently against the drafting party since all parties and their respective counsel contributed to the negotiation and drafting of this agreement and each party has had the advice of separate and independent legal counsel in the review and drafting of this agreement.  If any litigation arises from this agreement, the prevailing party may recover reasonable attorney’s fees and costs.

This agreement shall be interpreted and construed in accordance with Florida law, and any proceeding arising between the parties in any way pertaining to this agreement shall, to the extent permitted by law, be held in Miami-Dade County, Florida.  The parties hereby consent to personal jurisdiction in such forum and to personal service of process by mail.  The prevailing party in any action brought to interpret or enforce this Agreement, shall be entitled to recover attorney’s fees and costs at both the trial and appellate levels from the non-prevailing party.  This agreement may be executed in counterpart copies and the fact of execution transmitted via telecopy.

The parties hereby waive the right to a jury trial in any legal proceeding among them.

Please signify your agreement with these terms by signing below.  We are prepared to commence immediately, since timing is very important.

Thank you.

 

	  	
Sincerely,

	  	  
	  	
Financial Partner Funding, LLC

	  	  
	  	
/s/ Jay Enis

	  	
Jay Enis – Authorized Representative

AGREED and ACCEPTED:

	
Green Energy Management Services, Inc (GEM)

	 	  	  	  
	  	  	 	  	  	  
	
By:

	
/s/ Michael Samuel

	 	
Date:

	
3 - 3

	
, 2011

	  	
Michael Samuel – Chairman & CEO

	 	  	  	  

 

 

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