Document:

afpw_ex41.htm

EXHIBIT 4.1
 
ALUMIFUEL POWER CORPORATION
CERTIFICATE OF DESIGNATION OF
SERIES D CONVERTIBLE PREFERRED STOCK
 
The Undersigned, on behalf of AlumiFuel Power Corporation, a Wyoming corporation (the “Corporation”), hereby certifies that the following resolutions were adopted by the Corporation’s board of directors (the “Board”), effective as of September 6, 2016, pursuant to the authority conferred upon the Board by the Corporation’s certificate of incorporation, as amended, and in accordance with the Wyoming Business Corporation Act:
 
RESOLVED: that pursuant to the authority granted to and vested in the Board in accordance with the provisions of the Corporation’s certificate of incorporation, as amended, a series of preferred stock of the Corporation is hereby created and designated with the following relative rights, preferences, privileges, qualifications, limitations and restrictions:
 
1. Amount; Designation; Sub-Series. The designation of this series, the authorized amount of which consists of 10,000 shares of preferred stock, is Series D Convertible Preferred Stock with a par value of $0.001 per share and the stated value shall be $100.00 per share (the “Stated Value”) (the “Series D Preferred Stock”).
 
2. Rank. In the event of the Corporation’s liquidation, the Series D Preferred Stock shall rank senior to any class or series of the Corporation’s capital stock hereafter created that ranks junior to the Series D Preferred Stock; pari passu with any class or series of the Corporation’s capital stock hereafter created that ranks on parity with the Series D Preferred Stock; and junior to any class or series of the Corporation’s capital stock hereafter created that ranks senior to the Series D Preferred Stock. The Series D Preferred Stock shall be senior to the Corporation’s common stock.
 
3. Voting Rights. A holder of Series D Preferred Stock (the “Holder”) shall have no voting rights on any matters respecting the affairs of the Corporation submitted to the holders of the Corporation’s voting capital stock.
 
4. No Preemptive Rights. Holders of Series D Preferred Stock shall not be entitled, as a matter of right, to subscribe for, purchase or receive any part of any stock of the Corporation of any class whatsoever, or of securities convertible into or exchangeable for any stock of any class whatsoever, whether now or hereafter authorized and whether issued for cash or other consideration or by way of dividend by virtue of the Series D Preferred Stock.
 
5. Liquidation Rights. In the event of a liquidation of the Corporation, the holders of Series D Preferred Stock then outstanding shall be entitled to receive a liquidation preference, before any distribution is made to the holders of the Corporation’s common stock, in an aggregate amount equal to the par value of their shares of Series D Preferred Stock.
 
	 
	 

	

	 

 
6. Conversion Rights. 
 
(a) Each share of Series D Preferred Stock may be convertible into fully paid and non-assessable shares of the Corporation’s common stock at the option of the Holder, at any time from time to time, from and after the issuance of the Series D Preferred Stock, at a conversion price equal to (i) 100% of the Stated Value divided by (ii) the average of the three closing prices of the Company’s common stock immediately preceding a Conversion Date (as defined below) (the “Conversion Price”). A Holder shall effect a conversion by submitting to the Corporation the original certificate or certificates representing the shares of Series D Preferred Stock to be converted together with a completed form of conversion notice attached hereto as Exhibit A (the “Conversion Notice”). Each Conversion Notice shall specify the number of shares of Series D Preferred Stock to be converted and the date on which such conversion is to be effected, which date may not be prior to the date the Holder delivers such Conversion Notice to the Corporation (the “Conversion Date”). If the holders of the Series D Preferred Stock have not converted or their shares of Series D Preferred Stock have not been redeemed by the Corporation within five years from the date of issuance (the “Mandatory Conversion Date”), then each share of Series D Preferred Stock shall automatically be converted into that number of fully paid and non-assessable shares of Corporation’s common stock on terms that are equal to the Conversion Price on the Mandatory Conversion Date.
 
(b) The Shares of common stock to be issued upon any conversion of Series D Preferred Stock shall be rounded to the nearest full share; no fractional shares of common stock shall be issued upon any such conversion.
 
(c) The Corporation shall reserve and keep available out of its authorized but unissued common stock such number of shares of common stock as shall from time to time be sufficient to effect the conversion of the Series D Preferred Stock then outstanding pursuant to the terms of this Certificate of Designation.
 
(d) As a condition to the Corporation’s obligation to issue and deliver certificates representing the shares of common stock into which the Series D Preferred Stock is convertible under this Section 6, holders of converted shares of Series D Preferred Stock shall return their certificates representing such preferred stock for cancellation on the Corporation’s books.
 
7. Redemption Rights. At any time after the date of issuance of the Series D Preferred Stock until the Mandatory Conversion Date, the Corporation, upon notice delivered to each holder as provided for in this Section 7, may redeem, in cash, the Series D Preferred Stock at 100% of the Stated Value thereof (the “Redemption Price”).
 
Notice of redemption pursuant to Section 7 shall be provided by the Corporation to the Holder in writing (by registered mail or overnight courier at the Holders last address appearing in the Corporation's security registry) not less than 10 nor more than 15 days prior to the redemption date, which notice shall specify the redemption date and refer to Section 7. Upon any redemption of the Series D Preferred Stock pursuant to Section 7, each holder shall either deliver the Series D Preferred Stock by hand to the Corporation at its principal executive offices or surrender the same to the Corporation at such address by express courier. Payment of the Redemption Price specified in Section 7 shall be made by the Corporation to each holder against receipt of the Series D Preferred Stock certificate by wire transfer of immediately available funds to such account(s) as the Holder shall specify to the Corporation.
 
8. Loss, Theft, Destruction of Certificates. Upon the Corporation’s receipt of evidence of the loss, theft, destruction or mutilation of a certificate representing shares of Series D Preferred Stock (in form reasonable satisfactory to the Corporation) and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security reasonably satisfactory to the Corporation, or, in the case of mutilation, upon surrender and cancellation of the mutilated certificate, the Corporation shall make, issue and deliver, in lieu of such lost, stolen, destroyed or mutilated certificate representing shares of Series D Preferred Stock, a new certificate representing shares of Series D Preferred Stock of like tenor.
 
9. Who Deemed Absolute Owner. The Corporation may deem the holder, whether an individual or an entity, in whose name shares of Series D Preferred Stock is registered upon the Corporation’s books to be, and may treat it as, the absolute owner of such shares of Series D Preferred Stock for all purposes, and the Corporation shall not be affected or bound by any notice to the contrary.
 
	 
	 

	

	 

 
10. Stock-Transfer Register. The Corporation shall keep at its principal office an original or copy of a register in which it shall provide for the registration of the Series D Preferred Stock. Upon any transfer of Series D Preferred Stock in accordance with the provisions hereof, the Corporation shall register such transfer on its stock-transfer register.
 
11. Amendments. The Corporation may amend this Certificate of Designation only with the approving vote of holders of a majority of the then-outstanding shares of Series D Preferred Stock.
 
12. Headings. The headings of the sections, subsections and paragraphs of this Certificate of Designation are inserted for the convenience of the reader only and shall not affect the interpretation of the terms and provisions of this Certificate of Designation.
 
13. Severability. If any provision of this Certificate of Designation, or the application thereof to any person or any circumstance, is invalid or unenforceable, (i) a suitable and equitable provision shall be substituted therefore in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision, and (ii) the remainder of this Certificate of Designation and the application of such provision to other persons, entities or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.
 
14. Governing Law. The terms of this Certificate of Designation shall be governed by the laws of the State of Wyoming, without regard to its conflicts-of-law principles.
 
In Witness Whereof, AlumiFuel Power Corporation has caused this Certificate of Designation to be duly executed in its corporate name on this 8th day of September 2016.
 
 
	ALUMIFUEL POWER CORPORATION:
	 	 
	 
	 
	 

	By:	/s/ Henry Fong	 	 
		Henry Fong	 	 
		Chief Executive Officerafpw_ex101.htm

EXHIBIT 10.1
 
AGREEMENT FOR PURCHASE AND SALE OF ASSETS
 
THIS AGREEMENT FOR PURCHASE AND SALE OF ASSETS (THE “AGREEMENT”), DATED EFFECTIVE AS OF SEPTEMBER 10, 2016 (THE “EFFECTIVE DATE”), IS BY AND AMONG LABOR SMART INC, A NEVADA CORPORATION WHOSE MAILING ADDRESS IS 3851 OAKVIEW DRIVE, POWDER SPRINGS, GEORGIA 30127 (“SELLER”) AND ENERGY STAFFING SOLUTIONS, INC., A COLORADO CORPORATION, WHOSE MAILING ADDRESS 7315 EAST PEAKVIEW AVENUE, CENTENNIAL, COLORADO 80111, OR ITS ASSIGNS (“BUYER”).
 
BACKGROUND INFORMATION
 
Seller is engaged in the business of providing on-demand temporary personnel and labor to small and large businesses in a variety of industries, including, without limitation, construction, manufacturing, production, hospitality, events, restoration, warehousing, retail, demolition, renewable energy and landscaping (collectively, the “Business”). Buyer desires to purchase only certain assets from Seller (the assets to be acquired being hereinafter referred to as the “Purchased Assets”). Seller is willing to sell the Purchased Assets to Buyer, but only upon the terms and conditions hereinafter set forth. Accordingly, in consideration of the mutual agreements contained in this Agreement, Seller, Buyer and Schadel hereby agree as follows.
 
OPERATIVE PROVISIONS
 
1. Agreement to Sell and Purchase. Buyer is only interested in acquiring the branch office located at the addresses set forth in Schedule 1 attached hereto (the “Branch Office”). Subject to the terms and conditions of this Agreement, at the closing referred to in Section 2 hereof, Buyer shall acquire the Purchased Assets. The Purchased Assets shall include only the following assets of Seller:
 
a. Customer Lists. All right, title and interest of Seller in and to the customer lists for each of the Branch Offices, the telephone and facsimile numbers for each of the Branch Offices, the trade secrets and other proprietary information of such Branch Offices (excluding all tradenames, trademarks, service marks, and open accounts receivable (and all applications therefor)) owned by Seller or used in or necessary for the operation of the Business and any other assets listed on Schedule 1(a)hereto (collectively, the “Proprietary Rights”);
 
b. Leases and Contracts. All right, title and interest of Seller in and to certain leases for real or personal property, contracts (expressly including unfilled purchase and sale orders, and all rights under any non-competition, non-solicitation or non-disclosure agreement or other arrangement in favor of Seller), commitments, arrangements or understandings, written or oral, pertaining to the operation of the Business at the Branch Offices excluding open accounts receivable of Seller, listed or described on Schedule 1(b) hereto (collectively, the “Contracts”); 
 
c. Fixed Assets. All vans, vehicles, equipment, furniture, fixtures, computer hardware, computer software and all other tangible personal property of every kind and nature owned by Seller or used in or necessary for the operation of the Business at the Branch Offices, including, but not limited to, those assets listed on Schedule 1(c) hereto (collectively, the “Fixed Assets”) but specifically excluding open accounts receivable of Seller; and
 
d. Business Records. All files, correspondence, invoices and other business records used in or necessary for the operation of the Business at the Branch Offices, including, but not limited to, price lists, sales records, sales correspondence, credit records, purchase orders and sales orders.
 
	 
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2. Closing. The consummation of the transactions contemplated by this Agreement shall take place at a closing (the “Closing”) to be held on September 8, 2016. The Closing may take place remotely, by exchange of documents and signatures by email and overnight mail, as counsel to the parties may agree. At the Closing, Seller shall deliver to Buyer such conveyances, bills of sale, assignments, agreements and other documents, in form and substance satisfactory to Buyer’s counsel, as may be reasonably requested by Buyer’s counsel to effect the sale and transfer of the Purchased Assets and to consummate the transactions contemplated by this Agreement and shall make such other deliveries specified in or contemplated by this Agreement. When all such deliveries have been completed, Buyer shall deliver to Seller a cashier’s check in accordance with Section 3 hereof.
 
3. Purchase Price and Payment. The purchase price to be paid by Buyer to Seller in exchange for Buyer’s acquisition of the Purchased Assets shall equal Two Hundred Twenty-five Thousand Dollars ($225,000.00) (the “Purchase Price”) and shall be paid as follows: (a) One Hundred Fifty Thousand Dollars ($150,000.00) paid to Seller concurrent with Closing, and (b) Seventy-five Thousand Dollars in Buyers Preferred Stock ($75,000). 
 
4. No Assumption of Liabilities. Buyer shall not assume or be responsible for any liability or obligation of Seller, including, but not limited to, any payroll tax obligations or federal tax obligations of Seller, except for those related to certain leases for real or personal property as contemplated in 1(b).
 
5. Representations and Warranties by Seller. To induce Buyer to enter into this Agreement, Seller represents and warrants as follows:
 
a. Organization and Standing of Seller. Seller is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has all requisite power and authority to own, operate and lease its properties and to carry on the Business as now being conducted. Seller has the power to sell, assign, transfer, convey and deliver the Purchased Assets as contemplated by this Agreement free and clear of all liens, mortgages, pledges, security interests, encumbrances or charges of any kind or description.
 
b. Authorization. The execution, delivery and performance of this Agreement by Seller and its consummation of the transactions contemplated hereby have been duly authorized by Seller and Schadel, which authorization and approval constitute all authorization necessary on the part of Seller. This Agreement constitutes the legal, valid and binding obligation of Seller and Schadel, enforceable in accordance with its terms.
 
c. Contracts. In connection with its operations of the Branch Offices, Seller does not have any Contracts, except those listed and described in Schedule 1(b), all of which were made in the usual and ordinary course of business. Seller has delivered to Buyer correct and complete copies of all of the Contracts that are in written form, and Schedule 1(b) contains a correct and complete description of any Contracts that are not in written form. Seller has fulfilled, or taken all action necessary to enable it to fulfill when due, all material obligations under the Contracts. There has not occurred any material breach or default, or any event which with the lapse of time or the election of any person, or both, will become a material breach or default, under any Contract, and all Contracts are legal, valid and binding and in full force and effect. Seller has no unfilled customer sales orders for the Branch Offices, other than those set forth on Schedule 1(b).
 
d. Condition of Assets; Maintenance; Title. The Fixed Assets have been maintained in good condition and repair, subject to normal wear and tear which does not materially adversely affect their use in the operation of the Branch Offices, and are suitable for their intended uses. 
 
	 
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e. Employees. Set forth on Schedule 5(e) is a complete list of each employee at the Branch Offices both currently and during 2014 and 2015, together with such employee’s (i) name, (ii) job title, (iii) date of commencement of employment or engagement, (iv) current compensation paid or payable and any change in compensation since January 1, 2016, (v) sick or vacation leave that is accrued but unused; and (vi) whether or not such employee is party to a non-competition, non-solicitation or non-disclosure agreement or arrangement. Each employee of each Branch Office is a citizen of the United States or is otherwise authorized to work in the United States.
 
f. Disclosure. Neither this Agreement, nor any other document, certificate or statement furnished to Buyer by or on behalf of Seller in connection with the transactions contemplated hereby, within the actual knowledge of Seller, contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein or therein not misleading; and there is no fact which materially adversely affects, or in the future may (so far as Seller can now reasonably foresee) materially adversely affect the assets, business, operations or prospects of Seller which has not been set forth herein or in a schedule or statement furnished to Buyer. 
 
8. Deliverables.
 
a. Assignment of Leases or Subleases. At the Closing, Seller shall deliver or caused to be delivered to Buyer an assignment, agreement or other documentation, acceptable to Buyer in its sole and absolute discretion, granting Buyer the option to lease or sublease the Branch Offices. 
 
9. Miscellaneous.
 
a. Correspondence. Seller authorizes and empowers Buyer after the Closing: (i) to open all mail and other communications addressed to the Business which are received by Buyer and (ii) to deal with the contents of such communications in a proper manner. Seller will promptly deliver to Buyer the original of any mail or other communication received by Seller pertaining to the operations of the Business after the Closing Date or the Purchased Assets and any monies, checks or other instruments of payment to which Buyer is entitled. Buyer will promptly deliver to Seller the original of any mail or other communication received by Buyer pertaining to the operation of the Business prior to the Closing Date and any monies, checks or other instruments of payment to which Seller is entitled. Buyer will empower employees of the Branch Offices to assist Seller, where necessary, in collection of Seller’s open receivables and remittance to Seller of any funds received by Buyer for Seller’s open receivables. Additionally, Buyer will assist Seller in retaining documentation as needed from the Branch Offices for Seller’s record keeping obligations, limited to documentation and records created prior to the Closing date.
 
b. Severability; Amendments; Captions. The invalidity or unenforceability of any provision herein shall not offset the validity or enforceability of any other provision hereof. This Agreement shall not be modified, amended or terminated except by written agreement of both parties. Captions appearing in this Agreement are for convenience only and shall not be deemed to explain, limit or amplify the provisions hereof.
 
c. Application of Georgia Law; Venue. This Agreement, and the application or interpretation thereof, shall be governed exclusively by its terms and by the laws of the State of Georgia. Venue for any legal action which may be brought thereunder shall be deemed to lie in Atlanta, Georgia.
 
d. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
 
	 
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e. Legal Fees. If a legal action is initiated by any party to this Agreement against another, arising out of or relating to the alleged performance or non performance of any right or obligation established hereunder, or any dispute concerning the same, any and all fees, costs and expenses reasonably incurred by each successful party or his or its legal counsel in investigating, preparing for, prosecuting, defending against, or providing evidence, producing documents or taking any other action in respect of, such action shall be the joint and several obligation of and shall be paid or reimbursed by the unsuccessful party.
 
f. Definition. The term “affiliate”, when used in this Agreement means, as to any specified person, any other person that directly or indirectly controls, or is under common control with, or is controlled by, such specified person and, if such other person is an individual, any member of the immediate family of such individual. As used in this definition, “control” (including, with its correlative meanings, “controlled by” and “under common control with”) shall mean possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by contract or otherwise) and “immediate family” shall mean any parent, child, grandchild, spouse or sibling. 
 
[SIGNATURE PAGE TO FOLLOW]
 
	 
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This Agreement has been executed by the parties hereto the day and year first above written.
 
 
	 	SELLER:	
	 
	 
	 

	 
	Labor Smart Inc
	 

	 	 	 	 
	Date: September 8, 2016	By:	/s/ Christopher Ryan Schadel 	
	 
	 
	Christopher Ryan Schadel	 
	 	Its: 	President	 
	 	 	 	 

 
   	 	BUYER:	
	 
	 
	 

	 
	ENERGY STAFFING SOLUTIONS, INC.
	 

	 	 	 	 
	Date: September 8, 2016	By:	/s/ Henry Fong	
	 
	 
	Henry Fong	 
	 	Its: 	Chief Executive Officer	 
	 	 	 	 

 
 
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