Document:

mwbl8k20100921ex10-d.htm

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”) is made as of September 22, 2010 (the “Effective Date”) by and between Mountain Renewables Inc. , with its principal executive offices at 4320 Eagle Point Pkwy Suite A Birmingham Al 35242 (the “Company”) and Deborah K. Flatt, an individual residing at 1079 Legacy Drive Birmingham AL 35242 (the “Executive”).

 

WHEREAS, the Executive has been offered the position of Secretary and Treasurer (“SEC/TRE”) of the Company and will begin to serve in such capacities on the Effective Date;

 

WHEREAS, the Company wishes to assure itself of the services of the Executive for the period provided for herein and the Executive is willing to serve in the employ of the Company for said period upon the terms and conditions hereinafter provided; and

 

WHEREAS, the Company’s Board of Directors has determined that the best interests of the Company and its shareholders would be served by providing for the terms and conditions of the Executive’s employment as set forth herein.

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained and intending to be legally bound hereby, the Company and the Executive hereby agree as follows:

 

Section 1.          Definitions.  As used herein, the following terms shall have the meanings set forth below.

 

“Completion of an IPO” shall mean the date upon which the Company receives the proceeds from an IPO (as defined herein).

 

“Disability” of the Executive means that, as a result of the Executive’s incapacity due to physical or mental illness, the Executive shall have been absent from his duties on a full time basis for thirty (30) days in any three (3) month period.  If the Executive is prevented from performing his duties because of Disability, upon request by the Company, the Executive shall submit to an examination by a physician selected by the Company, at the Company’s expense, and the Executive shall also authorize his personal physician to disclose to the selected physician all of the Executive’s medical records.

 

“Fiscal Year” means any fiscal year of the Company, as applicable.

 

“IPO” means an initial public offering of shares of the Company’s capital stock, merger with or acquisition by a public company.

 

“Person” means any individual, sole proprietorship, general or limited partnership, joint venture, trust, unincorporated organization, association, corporation, institution, entity, party, limited liability company or government (whether territorial, national, federal, state, provincial, county, city, municipal or otherwise, including, without limitation, any instrumentality, division, agency, body or department thereof).

  

  

  

Section 2.         Employment and Term.  The Company hereby employs the Executive, and the Executive hereby accepts such employment by the Company, for the purposes and upon the terms and conditions contained in this Agreement and subject to the approval of the Company’s Board of Directors.  Subject to the terms and conditions contained herein and the approval of the Company’s Board of Directors, the initial term of this Agreement shall be for a five (5) year period, commencing on Effective Date.  Thereafter, this Agreement shall automatically renew on its then-current terms and conditions for subsequent one (1) year periods unless either party elects to not renew for any subsequent one (1) year period by providing the other party with written notice at least ninety (90) days prior to the end of the initial term or any renewal term.  The initial term hereof and any extension term are referred to herein as the “Employment Period.”

 

Section 3.         Employment Capacities and Duties.  The Executive shall be employed throughout the Employment Period as V-Vice President of the Company.  The Executive shall have the duties and responsibilities normally associated and incumbent with the position of Vice President .  Accordingly, and not by way of limitation, as V-PRES of the Company, the Executive shall attend all meetings of the shareholders of the Company and of the Board of Directors and, subject to the direction or approval of the Board of Directors, the Executive shall supervise and manage the day-to-day aid in the operations and business of the Company and report to the President of the Company.  .

 

Section 4.         Executive Performance Covenants.  The Executive accepts the employment described in Section 3 herein and agrees to devote his full working time and efforts (except for absences due to illness and appropriate vacations) to the business and affairs of the Company and the performance of the aforesaid duties and responsibilities set forth in Section 3 hereof.

 

Section 5.         Salary.  The Executive shall be paid a salary (the “Salary”) for the period commencing on the completion of the assignment of contracts, assets, other revenue producing companies (as defined herein) at an annual rate of One Hundred Twenty Thousand Dollars ($120,000.00), payable in equal installments in accordance with the Company’s payroll policies.  Upon the Completion of an IPO, the Executive’s Salary shall be increased to an annual rate of Three Hundred Thousand Dollars ($300,000.00) for the duration of the Employment Period.  The Salary shall be pro-rated for any Fiscal Year hereunder which is less than a full Fiscal Year.

 

Section 6.         Reimbursement of Expenses.  The Company shall reimburse the Executive for expenses incurred in providing services to the Company, including travel expenses for round-trip coach airfare and hotel expenses incurred in connection therewith, upon the Executive’s submission of appropriate documentation evidencing such expenses in accordance with the Company’s reimbursement policies as determined from time to time by the Board of Directors.  If there is a dispute as to the eligibility of an expense for reimbursement in accordance with the Company’s reimbursement policies, then such expense shall be determined to be reimbursable if approved by a majority of the Board of Directors.

 

Section 7.         Employee Benefits, Vacations.  During the Employment Period, in addition to any and all compensation and benefits required or permitted to be made by the Company to the Executive hereunder, the Executive shall receive the benefits and enjoy the perquisites described below:

  

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a)           Vacation.  The Executive shall be entitled to six (6) weeks paid vacation per annum; and

 

b)           Participation in Benefit Plans.  The Executive shall be entitled to participate in the Company’s auto lease, group hospitalization, health, life or other insurance or death benefit plan, travel or accident insurance, restricted or stock purchase plan, stock option plan, retirement income or pension plan, 401(k) plan, or other V-PRES or future group employee benefit plan or program of the Company for which executives are or shall become eligible.  Nothing contained in this Agreement shall prevent the Board from amending or otherwise altering any such plan, program or arrangement during the Employment Period.  In addition, the Company will pay the premiums on the Executive’s life and disability insurance policies as in effect on the Effective Date with a maximum linit of one thousand five hundred per month.  The Company shall maintain continuously for the Employment Period a director and officer insurance policy with limits of $3,000,000 per occurrence and $10,000,000 in the aggregate upon the assets, contracts, and companies joining Arcis.

 

c)           Indemnification.  The Executive shall be entitled to indemnification and protection from liability as set forth in Section 11.

 

d)           Automobile Allowance. The Executive shall be entitled to fifteen hundred ($1500) per month car allowance.

 

Section 7.          Termination of Employment.

 

a)           Notice of Termination; Employment Termination Date.

 

(1)           Any termination of the Executive’s employment by the Company or the Executive shall be communicated by written Notice of Termination to the other party hereto.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the provision in this Agreement relied upon.

 

(2)           “Employment Termination Date” shall mean the date on which the Employment Period and the Executive’s right and obligation to perform employment services for the Company shall terminate effective upon the first to occur of the following:

 

(i)           If the Executive’s employment is terminated for Disability, the date on which the Notice of Termination is given;

 

(ii)           If the Executive’s employment is terminated by voluntary action of the Executive (See Section 8(e)), the date specified in the Notice of Termination, which date shall be no more than fifteen (15) days after the date that the Notice of Termination is given;

 

(iii)           The death of the Executive;

 

(iv)           The expiration of the Employment Period;

  

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(v)           If the Executive’s employment is terminated by the Company for Cause (See Section 8(b)), the date on which a Notice of Termination is given; and

 

(vi)           If the Executive’s employment is terminated by the Company other than for Cause, Disability or death of the Executive, the date specified in the Notice of Termination which date shall not be more than thirty (30) days after the date that the Notice of Termination is given.

 

b)       Termination for Cause.

 

(1)               The Company may terminate the Executive’s employment for Cause.  The Company shall have the option to terminate the Executive’s employment for “cause” if the Executive: (a) pleads guilty to or is convicted of a felony; (b) engages in grossly negligent conduct or willful misconduct in connection with the execution of his duties under this Agreement which materially and adversely affects the Company after written notice by the Company to the Executive of the specific acts that form the basis for the termination; or (c) materially fails to perform his duties under this Agreement, provided the nonperformance continues uncorrected for a period of thirty (30) days after written notice of such nonperformance by the Company to the Executive specifically identifying the manner in which the Company believes the Executive has not performed his duties. For purposes of this Section, no act, or failure to act, on the Executive's part shall be considered “willful” unless done, or omitted to be done, by him not in good faith and without reasonable belief that his act or omission was in the best interests of the Company.

(2)           If the Executive’s employment shall be terminated for Cause, the Company shall pay the executive (or his successors) his unpaid Salary through the Employment Termination Date and any Stock Options (as defined herein) which have not vested as of the Employment Termination Date shall be terminated.

 

c)           Termination for Disability.  The Company may terminate the Executive’s employment because of the Disability of the Executive and thereafter the Company shall pay to the Executive (or his successors) his unpaid Salary through the Employment Termination Date and any Stock Options which have not vested as of the Employment Termination Date shall be terminated.

 

d)           Termination Upon Executive’s Death.  In the event of the Executive’s death, the Company shall pay to the Executive’s estate any unpaid Salary through the Employment Termination Date and any Stock Options which have not vested as of the Employment Termination Date shall be terminated.

 

e)           Voluntary Termination by Executive.  In the event that Executive voluntarily terminates his employment with the Company prior to the expiration of the Employment Period, the Executive shall be entitled only to payment of the amounts which would be payable to him under subsection 8(b)(2) above as if he had been terminated for Cause.

 

f)           Compensation Upon Termination other than for Cause.  If the Company shall terminate the Executive’s employment for any reason other than pursuant to Sections 8(b), (c) or (d), then the Company shall pay to the Executive, on the Termination Date, his total salary for the full term (five additional years) of his employment under this agreement, regardless of the remaining term of this agreement, and all Stock Options shall immediately and automatically vest on the Employment Termination Date without any further action by the Executive.

  

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Section 9.         Stock Options.  The Company shall provide to the Executive pursuant to the terms and conditions of the Stock Option Addendum attached hereto options (the “Stock Options”) to purchase three hundred thousand (300,000) shares of the Company’s common stock (the “Common Shares”) at an exercise price of $.30 per Common Share, subject to the following vesting schedule:

 

	
Number of Stock Options

	
Vesting Date

	  	  
	
60,000 shares

	
September 21, 2011

	  	  
	
60,000 shares

	
September 21, 2012

	  	  
	
60,000 shares

	
September 21, 2013

	  	  
	
60,000 shares

	
September 21, 2014

	  	  
	
60,000 shares

	
September 21, 2015

The Stock Options shall be granted under and shall be subject to the terms and conditions of the Stock Option Addendum and the provisions thereof shall control in the event of the termination of the Executive’s employment.  The Stock Options shall be exercisable for ten (10) years from date of grant.

 

Section 10.        Certain Company Protection Provisions.  The following provisions apply for the protection of the Company, and shall survive indefinitely, beyond the duration of this Agreement:

 

a)           Non-competition.  During the Restricted Period (as hereinafter defined), the Executive shall not directly or indirectly compete with the Company or own, manage, control or participate in the ownership, management or control of, or be employed or engaged by or otherwise affiliated or associated with any Competitive Business (as hereinafter defined) in any location in which the Company is doing business as of the Employment Termination Date.  As used herein, the term “Restricted Period” means the Employment Period and a period of twelve (12) months thereafter.  As used herein, a “Competitive Business” is any other corporation, limited liability company, partnership, proprietorship, firm, association or other business entity which is engaged in any business from which the Company derives any of its revenues during the twelve (12) months preceding the Employment Termination Date or in which the Company has invested five percent (5%) or more of its total assets as of the time in question.

 

b)           Non-Interference.  During the Restricted Period, the Executive shall not induce or solicit any employee of the Company or any person doing business with the Company to terminate his or her employment or business relationship with the Company or otherwise interfere with any such relationship.

  

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c)           Confidentiality.  The Executive agrees and acknowledges that, by reason of the nature of his duties as an officer and employee, he will have or may have access to and become informed of confidential and secret information which is a competitive asset of the Company (“Confidential Information”), including without limitation any lists of customers or subscribers, financial statistics, research data or any other statistics and plans contained in profit plans, capital plans, critical issue plans strategic plans or marketing or operation plans or other trade secrets of the Company and any of the foregoing which belong to any person or company but to which the Executive has had access by reason of his employment relationship with the Company.  The Executive agrees faithfully to keep in strict confidence, and not, either directly or indirectly, to make known, divulge, reveal, furnish, make available or use (except for use in the regular course of his employment duties) any such Confidential Information.  The Executive acknowledges that all manuals, instruction books, price lists, experiment logs or papers, information and records and other information and aids relating to the Company’s business, and any and all other documents containing Confidential Information furnished to the Executive by the Company or otherwise acquired or developed by the Executive, shall at all times be the property of the Company.  Upon the Employment Termination Date, the Executive shall return to the Company any such property or documents which are in his possession, custody or control, but his obligation of confidentiality shall survive the Employment Termination Date until and unless any such Confidential Information shall have become, through no fault of the Executive, generally known to the trade.  The obligations of the Executive under this subsection are in addition to, and not in limitation or preemption of, all other obligations of confidentiality which the Executive may have to the Company under general legal or equitable principles.

 

d)           Remedies.  It is expressly agreed by the Executive and the Company that these provisions are reasonable for purposes of preserving for the Company its business, goodwill and proprietary information.  It is also agreed that if any provision is found by a court having jurisdiction to be unreasonable because of scope, area or time, then that provision shall be amended to correspond in scope, area and time to that considered reasonable by a court and as amended shall be enforced and the remaining provisions shall remain effective.  In the event of any breach of these provisions by the Executive, the parties recognize and acknowledge that a remedy at law will be inadequate and the Company may suffer irreparable injury.  The Executive acknowledges that the services to be rendered by him are of a character giving them peculiar value, the loss of which cannot be adequately compensated for in damages.  Accordingly, the Executive consents to injunctive and other appropriate equitable relief without the posting of any type of bond or surety upon the institution of proceedings therefore by the Company in order to protect the Company’s rights.  Such relief shall be in addition to any other relief to which the Company may be entitled at law or in equity.

 

Section 11.        Indemnification.  As an officer of the Company, the Executive shall be indemnified by the Company in accordance with the indemnification provisions of the Company’s Bylaws as in effect on the date hereof, and otherwise to the extent to which officers of a corporation organized under the laws of Nevada may be indemnified pursuant to Nevada Statutes, as the same may be amended from time to time (or any subsequent statute of similar tenor and effect), subject to the terms and conditions of such statute.

  

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Section 12.       Successors and Assigns.  Except as hereinafter expressly provided, the agreements, covenants, terms and provisions of this Agreement shall bind the respective heirs, executors, administrators, successors and assigns of the parties.  This Agreement is personal in nature and neither of the parties hereto shall, without the consent of the other, assign or transfer this Agreement or any rights or obligations hereunder, except as provided in this Section 12.  Without limiting the foregoing, the Executive’s right to receive payments hereunder shall not be assignable or transferable, whether by pledge, creation of a security interest or otherwise, and in the event of any attempted assignment or transfer in contravention of this Section 12, the Company shall have no liability to pay to the purported assignee or transferee any amount so attempted to be assigned or transferred. Company can assign to a parent corp without concent.

 

Section 13.       Notices.  All notices and other communications that are required or may be given under this Agreement shall be in writing and shall be delivered personally or by certified mail addressed to the party concerned at the following addresses:

 

If to the Company:          Mountain Renewables, Inc

                                           4320 Eagle Point Pkwy Suite A

                                           Birmingham, Al 35242

With a copy to                 Robert Brantl, Esq.

                                           52 Mulligan Lane

                                           Irvington, NY 10533

If to Executive:                 Deborah K. Flatt

                                           1079 Legacy Drive

                                           Birmingham Al 35242

All notices shall be effective upon receipt.

Section 14.        Waiver:  Remedies Cumulative.  No waiver of any right or option hereunder by any party shall operate as a waiver of any other right or option, or the same right or option as respects any subsequent occasion for its exercise, or of any legal remedy.  No waiver by any party of any breach of this Agreement or of any agreement or covenant contained herein shall be held to constitute a waiver of any other breach or a continuation of the same breach.  All remedies provided by this Agreement are in addition to all other remedies provided under this Agreement or applicable law.

 

Section 15.       Governing Law:  Severability.  This Agreement is made and is expected to be performed in Nevada, and the various terms, provisions, covenants and agreements, and the performance thereof, shall be construed, interpreted and enforced under and with reference to the laws of the State of Nevada.  It is the intention of the Company and the Executive to comply fully with all laws and matters of public policy relating to employment agreements and restrictive covenants, and this Agreement shall be construed consistently with such laws and public policy to the extent possible.  If and to the extent any one or more covenants, agreements, terms and provisions of this Agreement or any portion or portions thereof shall be held invalid or unenforceable by a court of competent jurisdiction, then such covenants, agreements, terms and provisions (or portions thereof) shall be deemed separable from the remaining covenants, agreements, terms and provisions of this Agreement and such holding shall in no way affect the validity or enforceability of any of the other covenants, agreements, terms and provisions hereof.

  

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Section 16.        Miscellaneous.  This Agreement constitutes the entire understanding of the parties hereto with respect to the subject matter hereof.  This Agreement may not be modified, changed or amended except in a writing signed by each of the parties hereto.  This Agreement may be signed in counterparts, both of which shall be deemed an original hereof.  The captions of the several sections and subsections of this Agreement are not a part of the context hereof, are inserted only for convenience in locating such subsections and shall be ignored in construing this Agreement.

 

Section 17.        Jurisdiction and Venue.  The parties acknowledge that a substantial portion of negotiations, anticipated performance and execution of this Agreement occurred or shall occur in Nevada, and that, therefore, without limiting the jurisdiction or venue of any other federal or state courts, each of the parties irrevocable and unconditionally (a) agrees that any suit, action or legal proceeding must be brought in Nevada; (b) consents to the jurisdiction of such court in any suit, action or proceeding; (c) waives any objection which it may have to the laying of venue of any such suit, action or proceeding in any of such courts; and (d) agrees that service of any court paper may be effected on such party by mail, as provided in this Agreement, or in such other manner as may be provided under applicable laws or court rules in the State of Nevada.

 

IN WITNESS WHEREOF, the Company and Executive have executed this Agreement as of the Effective Date.

	  	
EXECUTIVE:

	  	  
	  	
/s/ Deborah K. Flatt

	  	
Deborah K. Flatt

	  	  
	  	
COMPANY:

	  	  
	  	
Mountain Renewables Inc.

	  	  
	  	  
	  	
By: /s/ Trevis M. Lyon

	  	
      Its: President

  

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STOCK OPTION ADDENDUM

to

Executive Employment Agreement

between

Mountain Renewables, Inc

and

Deborah K Flatt

As of September 22, 2010

 

A Stock Option (the “Option”) is hereby granted by Mountain Renewables Inc., a Nevada corporation (the “Company”), to Deborah K Flatt (the “Optionee”) for and with respect to the common stock of the Company, $0.001 par value per share (“Common Stock”), subject to the following terms and conditions, and the terms and conditions set forth in the Executive Employment Agreement (the “Employment Agreement”) of even date herewith by and between the Company and the Optionee:

Name of Optionee:                  Deborah K Flatt

Number of Shares

Subject to Option:                   300,000

Option Price Per Share:           $.30

Date of Grant:                           September 21, 2010

1.           Grant of Option.  The Company hereby grants to the Optionee an option to purchase from the Company the number of shares of Common Stock set forth above.

2.           Term of Option.  The term of the Option shall be ten (10) years.  In accordance with the terms and conditions of the Employment Agreement, the term of the Option may terminate earlier in the event the Optionee is no longer employed by the Company.

3.           Exercise Schedule.  The Option shall become vested and exercisable according to the following schedule:

	  	
Exercise Period

	
Number of Shares

	  	  
	
Subject to Option

	
Vesting Date

	
Expiration Date

	  	  	  
	
60,000

	
September 21, 2011

	
September 21, 2019

	  	  	  
	
60,000

	
September 21, 2012

	
September 21, 2020

	  	  	  
	
60,000

	
September 21, 2013

	
September 21, 2021

	  	  	  
	
60,000

	
September 21, 2014

	
September 21, 2022

	  	  	  
	
60,000

	
September 21, 2015

	
September 21, 2023

  

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If, however, the Executive is terminated pursuant to Section 8(a)(2)(vi) (other than for cause, disability or death) of the Employment Agreement, then all Options shall immediately and automatically vest on the Employment Termination Date (as defined in the Employment Agreement) without any further action by the Optionee.  In addition, if the Company’s gross sales revenue for any fiscal year equals $100,000,000 or more, then all Options shall immediately and automatically vest on the last day of such fiscal year.

4.           Registration Rights.

(a)           Demand Registration.  NONE

 

(b)           Piggy-back Registration.  If the Company at any time proposes to register any of its securities under the Act or pursuant to the Securities Exchange Act of 1934, as amended (the “1934 Act”), collectively referred to as the “Securities Acts,” whether or not for sale for its own account, it will each such time give prompt written notice to the Optionee of its intention to do so (the “Registration Notice”).  Upon the written request of the Optionee, made within fifteen (15) business days after the receipt of the Registration Notice, the Company shall use its best efforts to effect the registration under the Securities Acts of such amount of the Option Shares as the Optionee requests, by inclusion of such Option Shares in the registration statement that relates to the securities which the Company proposes to register, provided that if, at any time after giving the Registration Notice and prior to the effective date of the registration statement filed in connection with such registration, the Company shall determine for any reason either not to register or to delay registration of such securities, the Company may, at its election, give written notice of such determination to the Optionee (the “Refusal Notice”) and, thereupon, (i) in the case of a determination not to register, shall be relieved of its obligation to register the Option Shares in connection with such terminated registration (but not from its obligation to pay the Registration Expenses (as defined herein) in connection therewith), and (ii) in the case of a determination to delay registering, shall be permitted to delay registering the Option Shares, for the same period as the delay in registering such other securities.

 

(c)           Registration Expenses.  The Company shall pay all Registration Expenses (as defined herein) in connection with each registration of the Option Shares to this Section 4.  For the purposes hereof, the phrase “Registration Expenses” shall include all expenses incident to the Company’s performance of, or compliance with, this Section 4, including, without limitation, (i) all registration, filing and NASD fees, (ii) all fees and expenses of complying with securities or blue sky laws, (iii) all printing expenses, (iv) the fees and disbursements of counsel for the Company and of its independent public accountants, including the expenses of any special audits or "cold comfort" letters required by or incident to such performance and compliance, (v) the fees and disbursements of any one counsel and any one accountant retained by the Optionee, (vi) premiums and other costs of policies of insurance against liabilities arising out of the public offering of the Option Shares being registered if the Company desires such insurance, and (vii) any fees and disbursements of underwriters customarily paid by issuers or sellers of securities, but excluding underwriting discounts and commissions and transfer taxes, if any.

  

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(d)           Survival.  Notwithstanding anything to the contrary contained herein, the provisions of this Section 4 shall survive the Employment Termination Date (as defined in the Employment Agreement) for a period of two (2) years.

 

5.           Acceptance by the Optionee.  The exercise of the Option is conditioned upon the acceptance by the Optionee of the terms and conditions set forth herein as evidenced by his execution of this agreement and the return of an executed copy hereof to the address set forth in Section 5 hereof.

6.           Notice of Exercise.  Written notice of an election to exercise any portion of the Option, specifying the portion thereof being exercised, shall be delivered by personal delivery or by certified mail, return receipt requested, by the Optionee to:

Mountain Renewables, Inc.

4320 Eagle Point Parkway

Birmingham AL 35242

Attn: Trevis Lyon, President

 

  

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7.           Exercise; No Transfer of Option.  The Option may be exercised only by the Optionee during his lifetime and may not be transferred other than by will or the applicable laws of descent or distribution.  The Option shall not otherwise be transferred, assigned, pledged or hypothecated for any purpose whatsoever and is not subject, in whole or in part, to execution, attachment or similar process.  Any attempted assignment, transfer, pledge or hypothecation or other disposition of the Option, other than in accordance with the terms set forth herein, shall be void and of no effect.

 

8.           Manner of Exercise.  The Option shall be exercised by written notice to the Company prior to the expiration of the Option.  The Option Price Per Share upon exercise of the Option shall be paid in full in cash by the Optionee or payment in accordance with a cashless exercise program under which the Option Shares may be issued directly to the Optionee’s broker or dealer upon receipt by the Company of irrevocable instructions to that effect

9.           Effect on Employment.  The Option does not confer on the Optionee any right to employment by the Company, nor does it interfere in any way with (i) any right which the Company may have to terminate the employment or alter the duties of the Optionee at any time; or (ii) any right which the Optionee may have to terminate his employment at any time.

10.         Cancellation; Change.  In the event the Option shall be exercised in whole, this agreement shall be surrendered to the Company for cancellation.  In the event the Option shall be exercised in part, or a change in the number of designation of the Common Stock shall be made, this agreement shall be delivered by the Optionee to the Company for the purpose of making appropriate notation thereon, or of otherwise reflecting, in such manner as the Company shall determine, the partial exercise or the change in the number or designation of the Common Stock.

11.         Nevada Law Governs.  The Option and this agreement shall be construed, administered and governed in all respects under and by the laws of the State of Nevada without regard to conflicts of laws principles thereof.

12.         Inconsistencies.  In the event of any inconsistency between the terms hereof and the terms of the Plan, the terms of the Plan shall govern and the inconsistent terms hereof shall be deemed stricken.

 

  

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Mountain Renewables, Inc.

	  	  
	  	
By: _______________________________

	  	
         Trevis Lyon, President

	  	  
	
The undersigned hereby accepts the foregoing Option and the terms and conditions hereof.

	  	  
	  	
__________________________________

	  	
Deborah K Flatt

 

 

 

13mwbl8k20100921ex10-e.htm

JOINT VENTURE AGREEMENT

 

            THIS JOINT VENTURE AGREEMENT (the "Agreement") made and entered into as of this Date, April 27, 2010, between the Parties: GSA Capital LLC a wholly owned subsidiary of GSA International Group LTD. (“GSAI”) and with offices at 500 South Australian Road Suite 910 West Palm Beach Florida 33401 represented by Robert Di Marco and Premier Investment Group, INC. . (“PREMI”) with address at 14691 W 151st. Terrace, Olathe, Kansas 66062, USA, represented by Nagy G. Shehata

 

1.         GENERAL PROVISIONS

 

            1.01 Business Purpose. The business of the Joint Venture (the “JV”) shall be to acquisition and sale of physical commodities including Crude Oil and refined petroleum products.

 

            1.02 This JV shall commence on the date whereby the “Funds”, as defined in Section 2, and the LOC, defined in Section 4, are available per directives of the Parties, and shall continue in existence until terminated, liquidated, or dissolved by law or as hereinafter provided. 

 

            1.03 The signatories hereto shall act on behalf of their respective partners. The Designated Officers or Representatives, as defined herein, will have full fiduciary responsibility to protect the interests of all the Parties.

 

2.         GENERAL DEFINITIONS

 

            2.01      “Affiliate” of an entity is a person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control of such entity.  This shall include but not be limited to Subsidiaries, Stockholders, Partners, Co-Joint Venture Partners, Trading Partners, other associated individuals and/or organizations of either party to this Agreement.

           

            2.02      "Confidential Information" means this Agreement, the Partnership Profit Agreements, records or information of a party relating to the business affairs or proprietary and trade secret information of that party in oral, graphic, written, electronic or machine readable form, clearly marked as “confidential,” or if disclosed orally, information identified as confidential at the time of disclosure.

           

            2.03      “Profits” Any income resulting from the business or operations of the JV including; without limitation, each item of income, gain, loss, deduction, net of costs (including commissions paid by the JV) or other expenses associated with the transactions. All accounting and record keeping will be the responsibility per Section 10.01.

 

            2.04.     “Designated Officers” or “Representatives”: Each Party shall designate one person to act on its behalf who shall be known as the Representative or Designated Officer(s).  No individual Designated Officer may bind or act on behalf of the JV without the written consent of the others.  The Designated Officers shall together be empowered to take such steps as are necessary to carry out the business purpose of the JV as they together deem appropriate and necessary, including but not limited to the establishment of a business office, creation of bank accounts and distribution of profits as such may be realized.

  

  

  

           

           2.05. The “Funds” will be in EUROS hypothecated to GSAI designated account by PREMI. PRMI will issue a cash back financial instrument (MT760) to be utilized by GSAI as collateral for  the issuance of credit instruments (ie Letter of Credit, SBLC, LC) PRMI will issue this instrument from its bank account at ABN AMRO in the Amsterdam. Netherlands, the existence of which can be identified, proven, substantiated, verified for capability, and available for acquisition of commodities, including but not limited to LNG, crude oil and petroleum products, and utilized by GSAI and/or subsidiaries and affiliates in order to complete a Transaction (as defined below). The Funds may be identified as available to one or more of the Parties, with signatory powers, in efforts to produce profitable Transactions.

 

            2.06. The JV “Transactions” shall be the completed purchase and sale of commodities, per section 1.01, evidenced by a contract to purchase and a contract to sell. Any Closed Transaction shall not be completed or utilized for the computation of Profits or Losses until both the purchase and sale sides have been closed with third parties specifically as to oil and gas transactions requiring a third party component.

 

            2.07 Use of Outside “Marketing and Sales” (OMS): With respect to each purchase or sale involving third parties, the marketing and outside sales for the JV can be designated by GSAI.

 

            2.08 A “Month” shall be any consecutive thirty-day period.

 

            2.09 The Parties agree that a “Paymaster” will represent the JV in contracts for the purchase and sale of Commodities. The Paymaster shall be an accounting or law firm appointed by GSAI and agreed to by OMS. The Parties agree that Commissions to the Paymaster, for distribution to corporations, storage and/or trading firms will comply with standard practices and that the Paymaster will pay OMS. The Paymaster, will have responsibility to pay the Commissions for entities involved in the purchase or sale of a Commodity, based upon agreed upon terms prior to the transaction.

   

3.         OBLIGATIONS OF THE JOINT VENTURERS

 

            3.01 The Designated Officers or Representatives of each Party shall be jointly responsible for all operations and decisions of the JV, which shall require the agreement of all Parties to be binding upon the JV. 

 

4.         PROFIT ALLOCATION

 

            4.01      The amount of PREMI Funds, as defined above, shall be $1,000,000,000 (one billion euros). Financing expenses will occur as the deal progresses and these expenses will be subtracted from the profit assessment at end of each trade period. PRMI will pay to GSAI paid 110% of the outstanding contact revenue that has been established  PREMI instrument is revoked or canceled prior to the term of the agreement.

 

  

  

  

            4.02      Commencing on the date per section 1.02 above and ending on the termination of the business of the JV, the following profit allocations shall occur:

 

1.       The JV shall operate on a monthly schedule, with a month defined as any consecutive thirty days from date of origin.

2.       No business of the JV shall commence until this LC is in full force and effect and accepted by GSAI, financial instution.

3.       During each Month, for thirteen (13) consecutive Months; PREMI will receive 25% of gross Profits from Closed Transactions.  Said funds will be placed into account designated by PREMI. The balance of the funds will be allocated to GSAI. for It is anticipated that the profits in the new JV will be disbursed as follows:

           25% (Gross trading profit) to PREMI and or its assigns

           75% to GSAI and or its assigns

The $1,000,000 LC issued by PREMI as collateral and never need to be drawn down as long as the monthly fees are paid from profits generated from the use of the Instrument on deposit with PREMI. PREMI alone has access to the instrument and the bank account where it is lodged.

  

4.       Should PREMI not receive at revenue within ninety (90) days from the acceptance of the instrument by GSAI’s financial institution and every Month thereafter, PREMI has the right, at its sole discretion, to terminate the agreement.. 

 

5.         RIGHTS AND DUTIES OF THE JOINT VENTURERS

 

            5.01 The Designated Officers from each of the Parties hereto shall have full, and complete authority and discretion in the management and control of the business of the JV for the purposes herein stated and shall make all decisions affecting the business of the JV together, but not without the agreement in advance of the other. As such, any action taken by the Designated Officers shall constitute the act of, and serve to bind, the JV.   The Designated Officers shall manage and control the affairs of the JV to the best of their ability and shall use their best efforts to carry out the business of the JV. 

 

Officers designated from GSAI are: Robert Di Marco

Officers designated from PREMI are: Nagy G Shehata

                       

6.         AGREEMENTS WITH THIRD PARTIES AND AFFILIATES OF THE JOINT VENTURERS

 

            6.01 Validity of Transactions. Affiliates of the parties to this Agreement may be engaged to perform services for the JV. The validity of any transaction, agreement or payment involving the JV and any Affiliates of the parties to this Agreement, otherwise permitted by the terms of this Agreement, shall not be affected by reason of the relationship between them and such Affiliates or the approval of said transactions, agreement or payment. 

 

  

  

  

            6.02 Other Business of the Parties to this Agreement. The parties to this Agreement and their respective Affiliates may have interests in businesses other than the JV business. The JV shall not have the right to the income or proceeds derived from such other business interests and, even if they are competitive with the JV’s business and such business interests shall not be deemed wrongful or improper.  The Parties shall not compete in their individual efforts to effectuate Closed Transactions with third parties.

 

7.         INDEMNIFICATION OF THE JOINT VENTURERS

 

            7.01 The Parties to this Agreement shall have no liability to the other for any loss suffered which arises out of any action or inaction if, in good faith, it is determined that such course of conduct was in the best interests of the JV and such course of conduct did not constitute negligence or misconduct. The Parties shall be indemnified by the others against losses, judgments, liabilities, expenses and amounts paid in settlement of any claims sustained by it in connection with the JV. 

   

8.         DISSOLUTION

 

            8.01 Events of the JV Parties. The JV shall be dissolved upon the happening of any of the following events: 

 

1.   The adjudication of bankruptcy, filing of a petition pursuant to a Chapter of the Federal Bankruptcy Act, withdrawal, removal or insolvency of either of the parties. 

 

2.    The failure of the parties to carry out the business purpose of the JV as defined in paragraph 1.01.

 

3.   Upon thirty day notification by either Party to the other or as stated in Section 4 above.

   

9.         U.S. TREASURY DEPARTMENT OF FOREIGN ASSETS CONTROL (“OFAC”)

 

            9.01      Each Party represents, warrants and covenants that neither it nor any of its Affiliates is acting, directly or indirectly,

 

(1)        In contravention of any U.S. or international laws and regulations, including anti-money laundering regulations or conventions, or

 

(2)        On behalf of terrorists or terrorist organizations, including but not limited to those persons or entities that are included on the List of Specially Designated Nationals and Blocked Persons maintained by OFAC, as such list may be amended from time to time (such persons or entities are collectively referred to as “Prohibited Persons”).

 

            9.02      Each Party represents, warrants and covenants that:

 

(1)        It is not, nor is any of its Affiliates, a Prohibited Person, and

  

  

  

(2)        To the extent has any beneficial owners, it has carried out thorough due diligence to establish the identities of such beneficial owners, based on such due diligence, each party reasonably believes that no such beneficial owners are Prohibited Persons, it holds the evidence of such identities and status and will maintain all such evidence for at least five years from the date of termination or expiration of this Agreement, and it will make available such information and any additional information requested by any Governmental Authority that is required under applicable laws, ordinances, regulations and orders.

 

            9.03      If any of the foregoing representations, warranties or covenants cease to be true or if any of the Parties no longer reasonably believes that it has satisfactory evidence as to their truth, notwithstanding any other agreement to the contrary, any of the other Parties may immediately terminate this Agreement pursuant to Section 8 hereof, and each Party may also be required to report such action and to disclose to the other Party’s identity to OFAC or other authorities.  In the event that any of the Parties is required to take any of the foregoing actions, the remaining Parties understand and agree that they shall have no claim against the informing Party for any form of damages as a result of any of the aforementioned actions.

   

10.       MISCELLANEOUS PROVISIONS

 

            10.01 Books and Records. The JV shall keep adequate books and records setting forth a true and accurate account of all business transactions arising out of, and in connection with, the conduct of the JV. All Parties shall have unlimited access to said books and records upon demand. PREMI will also appoint an accounting firm to periodically review the Books and Records and handle all federal and state income tax returns. The expenses of the accounting firm will be charged against Profits of the JV. The Paymaster shall provide a copy of all purchase or sale contracts to the accounting firm.

 

            10.02 Validity. In the event that any provision of this Agreement shall be held to be invalid, the same shall not affect in any respect whatsoever the validity of the remainder of this Agreement. 

 

            10.03 Integrated Agreement. This Agreement constitutes the entire understanding and agreement among the parties hereto with respect to the subject matter hereof, and there are no agreements, understandings, restrictions or warranties among the parties other than those set forth herein provided for. 

 

            10.04 Headings. The headings, titles and subtitles used in this Agreement are for ease of reference only and shall not control or affect the meaning or construction of any provision hereof.

 

            10.05 Notices.

 

1.         Except as may be otherwise specifically provided in this Agreement, all notices required or permitted hereunder shall be in writing and shall be deemed to be delivered when deposited in the United States mail, postage prepaid, certified or registered mail, return receipt requested, addressed to the parties at their respective addresses set forth in this Agreement or at such other addresses as may be subsequently specified by written notice.  Notice may be conveyed by electronic means as well. EDT (Electronic document transmissions) shall be deemed valid and enforceable in respect of any provisions of this Contract.  As applicable, this agreement shall be: - Incorporate U.S. Public Law 106 229, ‘‘Electronic Signatures in Global and National Commerce Act’’ or such other applicable law conforming to the UNCITRAL Model Law on Electronic Signatures (2001) and ELECTRONIC COMMERCE AGREEMENT (ECE/TRADE/257, Geneva, May 2000) adopted by the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT).

  

  

  

 

2.         EDT documents shall be subject to European Community Directive No. 95/46/EEC, as applicable.  Either Party may request a hard copy of any document that has been previously transmitted by electronic means provided however, that any such request shall in no manner delay the Parties from performing their respective obligations and duties under EDT instruments.

 

            10.06 Applicable Law and Venue. This Agreement shall be construed and enforced under the laws of the British Virgin Islands.

            10.07 Arbitration: This Agreement shall be construed and enforced under the applicable laws and regulations of the Country and State where the respective Parties reside and the rules and regulations of the ICC.  Each Party agrees to participate in good faith negotiations toward resolution of any dispute, claim, controversy or other matter.  Each Party agrees that if a matter is not resolved within 30 calendar days by the Parties themselves, it shall be submitted for settlement by binding arbitration in accordance with the Non-Circumvention & Non-Disclosure and Working Agreement rules and regulations of the ICC.  The arbitration will comply with and be governed by the Reconciliation and Arbitration rules of the ICC for complex arbitration, in a venue – chosen by the plaintiff Party – where the ICC maintains a division for hearing complex arbitration.

 

            10.08 Other Instruments. The parties hereto covenant and agree that they will execute each such other and further instruments and documents as are, or may become, reasonably necessary or convenient to effectuate and carry out the purposes of this Agreement. 

IN WITNESS WHEREOF, the parties mutually agree and accept:

 

	
Signatory’s full name and surname:

	
Robert Di Marco

	
Company Name:

	
GSA International Group, LYD.

	
Position in Company:

	
President / Director

	
Address:

	
500 S Australian Blvd Suite 910

	  	
West Palm Beach, Fl 33401

	
Phone:

	
(561) 594-1550

	
Fax:

	
(561) 820-4892

	
E-Mail:

	
r.dimarco@gsaenergycorp.com

	
Passport Number: 

	
212937065

	
Nationality:

	
USA

	
Date/Time: May 5th 2010

	  

  

  

  

 

	 	 

 

 

Company Seal & Signature 

	
Signatory’s full name and surname: 

	
Nagy G Shehata 

	
Company Name:  

	
Premier Investments Group, INC.

	
Position in Company:

	
President / CEO

	
Address: 

	
14691 W 151st. Terrace, Olathe Kansas 66062

	
Phone:

	
913 538 6481

	
Fax: 

	
913 548 0908

	
E-Mail:  

	
GRGShehata@yahoo.com

	
Passport Number: 

	
2047208

	
Nationality:

	
Egyptian

	
Date/Time: May 5th  2010

	  

 

 

	 	 

 

                                                        

 

Company Seal & Signature

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