Document:

ex104.htm

Exhibit 10.4

 

MEMORANDUM OF AGREEMENT made as of the 20th day of July, 2012

 

BETWEEN

 

 MARINE DRIVE MOBILE CORP.

 

 (Marine Drive Mobile)

 

AND

 

PAY2GATE LLC

 

(Pay2Gate)

 

 

WHEREAS:

 

A. Marine Drive Mobile is engaged, inter alia, in the development of a deal management system technology platform called the “DMS”, as more particularly described in Schedule “A”;

 

B. Pay2Gate is the owner of a m-commerce business as described in Schedule “B” to this Agreement;

 

C. Marine Drive Mobile and Pay2Gate desire to form a joint venture for the purpose of undertaking the development, marketing, licensing and maintenance of certain Technology (“Technology”), which shall have the capabilities and functions described in Schedule “C” annexed hereto, which may be amended from time to time by the Parties to add additional Technology [and such other services and products as Marine Drive Mobile and Pay2Gate may from time to time unanimously agree upon (such Technology and such other services and products herein called the “Products”)];

 

 

NOW THEREFORE in consideration of the premises and mutual covenants herein set forth and provided for, the Parties hereto covenant and agree as follows:

 

1. Formation of Joint Venture

 

1.1 Organization and interest of Parties -- Marine Drive Mobile and Pay2Gate hereby agree to form a joint venture (“Joint Venture”) for the purposes set forth in paragraph 1.04 hereof. Unless otherwise agreed upon by the Parties hereto, the respective interests of the Parties in and to the Products and the obligations and liabilities of each of the Parties hereto as among themselves in connection with the Joint Venture and with respect to any and all liabilities and losses in connection therewith shall be in the following proportions:

 

Marine Drive Mobile                       75%

 

Pay2Gate                                           25%

 

As used herein, “Interest” shall mean, as to each Party, the undivided percentage interest of such Party in the Joint Venture as the same may exist from time to time.

 

1.2 Place of business – [deleted]

 

1.3 Term -- The Joint Venture shall commence on August 1, 2012 and shall continue for a period of one year, after which it shall renew annually for a further periods of one year each, until terminated in the manner herein provided for.

 

  

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1.4 Purposes of the Joint Venture -- The purposes of the Joint Venture are:

 

(1) to develop, market, license, sell and maintain the m-commerce platform described in Schedule “C” (the “Products”), and

 

(2) to engage in all such other activities, whether or not related to the Products, which the Parties may from time to time specify.

 

1.5 Fiscal period and books of account-- The fiscal period of the Joint Venture shall terminate on July 31 each year or on such date in each year as the Parties may from time to time determine. The Joint Venture shall keep true and accurate books of account and records in accordance with International Financial Reporting Standards (IFRS) applied on a consistent basis.

 

1.6 Rights and obligations -- The rights and obligations under the Joint Venture of each of the Parties to the Joint Venture shall be in every case several and not joint or joint and several. Nothing contained in this agreement shall be deemed to constitute either Party as the partner, agent or legal representative of the other Party, or to create any fiduciary relationship between them for any purpose whatsoever. Neither Party hereto shall have any authority to act for or to assume any obligation or responsibility on behalf of the other Party.

 

1.7 Liabilities -- Except as otherwise provided herein, the liabilities arising out of the Joint Venture shall be borne by the Parties in proportion to their respective Interests.

 

1.8 Business of Marine Drive Mobile and Pay2Gate-- Except as may be otherwise expressly provided in this agreement and except with respect to its participation, direct or indirect, in the Joint Venture, nothing herein shall be deemed to restrict in any way the freedom of any Party to conduct as it sees fit any business or activity whatsoever, regardless of whether such business or activity is in competition with the Joint Venture, including, without limitation, the provision to customers of the Joint Venture of services such as maintenance, training and the supply of documentation and enhancements, without any accountability to the other Party; provided that no such business or activity shall relate to Technology which is directly competitive with the Technology.

 

1.9 Employees of Marine Drive Mobile and Pay2Gate -- Each of Marine Drive Mobile and Pay2Gate hereby covenant and agree each with the other that it shall not, without the prior written consent of the other Party, solicitor make offers of employment to, directly or indirectly, any employees of such other Party.

 

1.10 Ownership and copyright regarding the DMS -- The software described in Schedule “A”  and all copyright and other intellectual property rights therein shall be owned by Marine Drive Mobile.

 

1.11 Ownership and copyright regarding the Pay2Gate website and software –  The software described in Schedule “B”  and all copyright and other intellectual property rights therein shall be owned by Pay2Gate .

 

1.12 Ownership and copyright regarding the Products – The Products described in Schedule “C”  and all copyright and other intellectual property rights therein shall be owned jointly by Marine Drive Mobile and Pay2Gate.

 

2. Management of the Joint Venture

 

2.1 Management Committee – Marine Drive Mobile and Pay2Gate agree that forthwith upon execution of this agreement, they shall form and constitute a management committee (“Management Committee”) which shall have responsibility for the general operation, administration and 

 

  

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arrangement of the Joint Venture and shall decide all matters of policy relating to such business. In particular, the Management Committee shall cause the terms of this agreement to be implemented and give such directions to the Parties as may be necessary from time to time. The Management Committee may, from time to time, delegate any powers and responsibilities to any person as it may see fit. The Management Committee shall be comprised of two members (“Nominees”), of whom one shall be appointed by each of Marine Drive Mobile and Pay2Gate. Each Party shall be entitled, from time to time, to change its Nominees upon written notice to the other Party. Such change of Nominee shall be effective upon receipt of notice by the other Party.

 

2.2 Meetings and notice – The Parties agree to have quarterly review meetings of the Management Committee, such meeting to be held in person.  In addition a Party may, by giving at least 12 days' written notice sent by e-mail or delivered personally to each Nominee, summon a meeting of the Management Committee at a place and time to be set out in the notice; provided that a meeting may be held on shorter notice or without notice. Meetings shall be held at such place as the Nominees may unanimously agree upon. A notice summoning a meeting will describe in reasonable data the matters proposed to be discussed at such meeting and no other matters will be discussed without the consent of one Nominee of each Party. A Party or Nominee may have a reasonable number of advisors present at any meeting.

 

2.3 Quorum -- A quorum for any meeting of the Management Committee shall consist of one Nominee of each Party and no business shall be transacted at any meeting unless a quorum is present throughout the meeting.  A meeting of the Management Committee at which a quorum is present shall be competent to exercise all or any of the authority, power and discretion bestowed upon the Management Committee by this agreement.

 

2.4 Voting -- All matters to be determined at a meeting of the Management Committee shall be decided by the unanimous vote of the Nominees present in person. All matters so determined will be binding upon the Parties.

 

2.5 Expenses -- All costs and expenses incurred by the Nominees in connection with the carrying out of the terms of this agreement or the management of the Joint Venture shall be borne by the Party whose Nominee incurred the cost and/or expense.

 

2.6 Chairman – [deleted]

 

2.7 Written consent in lieu of meeting -- A decision on any matter evidenced by the consent in writing of all Nominees shall be as valid as if it had been decided at a duly called and held meeting of the Management Committee . Each decision consented to in writing may be in counterparts, which together shall be deemed to constitute one decision.

 

2.8 Other procedures -- The Management Committee may make such other rules governing procedure at its meetings as it may decide provided that if any such rule is inconsistent with any provision of this agreement this agreement shall apply to the exclusion of such rule.

 

2.9 Reporting -- The Management Committee shall cause to be prepared and shall deliver to the Parties such financial statements and other information concerning the Joint Venture as the Parties may agree.

 

  

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3. Contributions to the Joint Venture

 

3.1 Contributions of Marine Drive Mobile -- The contribution of Marine Drive Mobile to the Joint Venture shall be as follows:

 

(1) the performance by it of its obligations as set forth in paragraph 4.1 of this agreement;

 

(2) Marine Drive Mobile will fund 20% of the Joint Venture as determined by the Management Committee.

 

3.2 Contribution of Pay2Gate -- The contribution of Pay2Gate to the Joint Venture shall be as follows:

 

(1) the performance by it of its obligations as set forth in paragraph 4.2 of this agreement;

 

(2) the payment by Pay2Gate of $200,000 plus 80% of all sums of money required for the purposes of the Joint Venture as determined by the Management Committee.

 

4. Obligations of the Parties

 

4.1 Obligations of Marine Drive Mobile -- The obligations of Marine Drive Mobile in carrying out the purposes of the Joint Venture are set out in the “Scope of Work of Marine Drive Mobile” attached hereto as Schedule “D”; [or to be agreed upon between the Parties]

 

4.2 Obligations of Pay2Gate -- The obligations of Pay2Gate in carrying out the purposes of the Joint Venture are as set out in the “Scope of Work of Pay2Gate” attached hereto as Schedule “E”; [or to be agreed upon between the Parties.]

 

5. Pricing and Licensing of the Products

 

5.1 Basis of price determination -- Unless otherwise determined by the Parties, pricing of the Products shall be determined on the following basis:

 

5.2 Marketing -- The obligations of the Parties with respect to the marketing of the Products shall be as set forth in paragraph 4. All expenses reasonably incurred by either Party or the Joint Venture with respect to the fulfillment of such obligations, including, without limitation, travel expenses, shall, subject to paragraph 6, shall be borne by the Joint Venture.

 

5.3 Licensing -- Marine Drive Mobile hereby grants to Pay2Gate a limited, non-exclusive royalty-free license to use the software described in Schedule “A” and all copyright and other intellectual property rights therein during the term of this Agreement.

 

5.4 Distribution of gross revenue of the Joint Venture -- All revenue howsoever received by the Joint Venture during any fiscal period of the Joint Venture shall be allocated as follows:

 

20 % to Marine Drive Mobile, and

 

80 % to Pay2Gate

 

6. Access to Pay2Gate's computer system

 

6.1 Use by Marine Drive Mobile for development -- In order to fulfill Marine Drive Mobile's obligations under paragraph 4.01 hereof, Pay2Gate agrees to provide Marine Drive Mobile with access to and usage of the Pay2Gate computer system and network in connection with the development by Marine Drive Mobile of the System.

 

  

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7. Development of Technology

 

7.1 Initial timetable – Scope of Work -- As soon as possible after the formation of the Joint Venture, Marine Drive Mobile shall provide Pay2Gate with a list detailing the range of tasks to be completed by Marine Drive Mobile in order to program the Technology. With respect to the first such task, Marine Drive Mobile shall include an estimate of the number of man-hours and total cost required to complete such task and an estimated date of completion for such task.

 

7.2 Subsequent timetables -- As soon as possible after the completion of the first task referred to in paragraph 7.1 hereof and thereafter each subsequent task, Marine Drive Mobile shall provide Pay2Gate with a description of the next task required to be completed by Marine Drive Mobile in respect of the programming of the Technology together with an estimate of the number of man-hours and total cost required to complete such task and an estimated date of completion for such task.

 

7.3 Best efforts and extensions of time -- Marine Drive Mobile shall use its best efforts and shall take such steps as may be necessary or advisable to ensure the timely fulfillment of its obligation to program the Technology in accordance with the timetables referred to in paragraphs 7.1 and 7.2.

 

8. Use of Names

 

8.1 Use of Marine Drive Mobile's name -- Neither Pay2Gate nor the Joint Venture shall, without the prior written consent of Marine Drive Mobile, make any use, in advertising or elsewhere, of Marine Drive Mobile's name or any of its trade marks, except as provided in this Agreement.  During the term of this agreement and in accordance with the limitations of this paragraph 8.1, Pay2Gate or the Joint Venture may advertise Products (“Advertising”) using the Marine Drive Mobile’s trademark and such other trade marks and proprietary words or symbols as Marine Drive Mobile may adopt from time to time (collectively “Marine Drive Mobile Trade Marks”) and authorize Pay2Gate or the Joint Venture to use; provided that any such use of Marine Drive Mobile Trade Marks shall be

 

(a) only in conjunction with Products, and

 

(b) only upon written approval of Marine Drive Mobile

 

 in respect of each advertisement, brochure, or other item of Pay2Gate or the Joint Venture containing any Marine Drive Mobile Trade Marks and for every modification thereof. Purchaser shall not hold out in any way that it is the owner or registered user of any Marine Drive Mobile Trade Marks and nothing contained herein will grant to Pay2Gate or the Joint Venture any right, title or interest in any of the Marine Drive Mobile Trade Marks either alone or in association with other words or names. In the event Pay2Gate or the Joint Venture use Marine Drive Mobile Trade Marks in Advertising, Pay2Gate or the Joint Venture shall identify all Products featured in such Advertising which are not purchased or licensed from Marine Drive Mobile as non-Marine Drive Mobile Products to the Customers of the Joint Venture.

 

8.3 Use of name after termination -- Marine Drive Mobile and Pay2Gate agree that their participation in the Joint Venture shall not give either of them or their respective successors or assigns any rights whatsoever in the other Party's name or trade marks or the name of the Joint Venture after the termination of this agreement.

 

  

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9. Representations and Warranties

 

9.1 Representations and warranties of Marine Drive Mobile -- Marine Drive Mobile hereby represents and warrants as follows:

 

(1) that it has full right, power and authority to enter into and carry out this Agreement and has been and is on the date of this agreement duly authorized by all necessary and appropriate corporate or other action to execute this agreement;

 

(2) that it has no prior commitments, arrangements or agreements with any other person which might interfere with, or preclude the carrying out of its obligations under this agreement, and

 

(3) that it has no knowledge or information indicating that the Technology in any way infringes upon patents, trade marks or trade secrets owned by any other persons.

 

9.2 Representations and warranties of Pay2Gate -- Pay2Gate hereby represents and warrants as follows:

 

(1) that it has full right, power and authority to enter into and carry out this Agreement and has been and is on the date of this agreement duly authorized by all necessary and appropriate corporate or other action to execute this agreement;

 

(2) that it has no prior commitments, arrangements or agreements with any other person which might interfere with, or preclude the carrying out of its obligations under this agreement, and

 

(3) that it has no knowledge or information indicating that the Technology in any way infringes upon patents, trade marks or trade secrets owned by any other persons.

 

10. Maintenance and Transfer of Interests

 

10.1 Maintenance of interests -- It is the intent of the Parties hereto that their respective Interests in the Joint Venture be maintained at all times.  No change shall be effected without the consent of both Parties.

 

10.2 General restriction on transfers and encumbrances -- Except as otherwise expressly provided for in this agreement, Marine Drive Mobile and Pay2Gate mutually covenant and agree not to sell, assign, pledge or in any other manner transfer title or rights to, or otherwise encumber, their respective Interests in the Joint Venture.

 

10.3 Transfer to an affiliate -- A Party may from time to time, upon notice in writing to the Other Party, transfer all or any part of its Interest to a corporation (an “Affiliate”) that is the parent or a subsidiary of such Party or a subsidiary of the parent of such Party or is controlled by the same person as such Party.  For the purposes hereof, a corporation is deemed to be controlled by a person if shares of the corporation carrying voting rights sufficient to elect a majority of the directors of the corporation are held, directly or indirectly, other than by way of security only, by or on behalf of that person and the relationship of parent and subsidiary is deemed to exist where one corporation is controlled by another corporation.  The Selling Party shall also deliver, if requested by the Other Party, the signed resignations of its Nominees together with releases from such Nominees of all claims against the Joint Venture.  Any such resignations and releases shall not take effect unless and until the Other Party acquires the Holding in accordance with the offer to sell.  No transfer of an Interest to an affiliate shall be effective unless the transferee shall have executed all such documents as may be necessary to make such transferee bound by this agreement and unless the transferor shall have provided a guarantee of the obligations of the transferee pursuant to this agreement.

 

  

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11. Default and Termination

 

11.1 Events of default -- For the purposes of this agreement, default by a Party hereto shall be deemed to have occurred in each of the following instances, namely:

 

(1) if the Party shall refuse or omit to do any act or undertaking required to be done or completed pursuant to the terms of this agreement within 5 days of receiving written notice from the other Party specifying the non-compliance;

 

(2) if the Party shall refuse to pay to the other Party or the Joint Venture, as the case may be, any funds agreed to be paid in accordance with the provisions of this agreement;

 

(3) if the Party or all of its Nominees shall fail to attend 2 consecutive meetings of the Management Committee after having received the required notice of such meetings;

 

(4) if the Party should dispose of or attempt to dispose of all or any part of its Interest without complying with the terms and conditions of this agreement;

 

(5) if the Party defaults under any of the covenants contained in any document required to be executed in order to carry out the terms of this agreement, whether or not such Party is in default hereunder, unless such default has been duly waived or cured;

 

(6) if an effective order is made or resolution passed for the winding up of the Party;

 

(7) if the Party becomes insolvent or makes an authorized assignment for the benefit of its creditors or commits any voluntary or involuntary act of bankruptcy;

 

(8) if any execution, extent, attachment, distress or other process of any court is made or attaches to the Interest of the Party in the System or the Joint Venture and any such execution, extent, attachment, distress or other process is not satisfied within 30 days;

 

(9) if a Receiver is appointed in respect of any of the assets of the Party including, without limitation, its Interest in the System or the Joint Venture; or

 

(10) if the Party ceases or threatens to cease to carry on its business or its participation in the Joint Venture.

 

11.2 Action in case of default -- If either Party should be in default, pursuant to the provisions of paragraph, the other Party shall have the right to terminate this agreement immediately.

 

11.3 Events on termination -- This agreement may be terminated as herein before provided or upon not less than one months' prior written notice by one Party to the other Party or forthwith upon the mutual determination by the Parties to terminate this agreement. In the event of any such proposed termination of this agreement, the following shall apply:

 

(1) the liabilities of the Joint Venture shall be satisfied or provided for;

 

(2) the assets of the Joint Venture, other than the Technology, shall be distributed to the Parties in proportion to their respective Interests;  and

 

(3) this agreement shall be terminated and the Joint Venture shall thereupon be dissolved.

 

  

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12. Indemnification

 

12.1 To the extent that a Party suffers any direct, indirect, incidental, consequential or exemplary damages as a result of its participation in the Joint Venture, unless due to its own negligence or willful act or omission, the other Party shall indemnify and save such Party harmless from any and all claims, demands, damages, actions, suits, liabilities and losses of any kind or character on account of damages or losses to persons or property, from any cause or casualty arising out of or in connection with the performance of this agreement.

 

12.2 Each of the Parties shall indemnify and hold harmless the other, and each director, officer, employee, agent and representative of such other Party, from and against any and all losses, claims, damages and liabilities arising out of any negligence or willful act or omission of such representatives of such indemnitor, done or undertaken in connection with the Joint Venture, unless pursuant to authorization expressly granted herein or by other express agreement in writing between the Parties.

 

13. Confidentiality

 

13.1           “Confidential Information” shall mean any information or material which is proprietary to each Party or which is designated as Confidential Information by the Party which owns it, whether or not such information is owned or developed by that Party, which is not generally known other than by the Party which owns it, and which the other Party may obtain knowledge of through or as a result of this Joint Venture, by access to the other Party’s premises or servers, or communications with the other Party’s employees or independent contractors.

 

13.2           Without limiting the generality of the foregoing, Confidential Information includes, but is not limited to, designs, concepts, drawings, ideas, inventions, specifications, techniques, discoveries, models, data, source code, object code, documentation, diagrams, flow charts, research, development, processes, procedures, know-how, new product or new technology information, marketing techniques and materials, marketing plans, timetables, strategies and development plans (including prospective trade names or trademarks), customer names and other information relating to customers, pricing policies and financial information.

 

13.3           Confidential Information does not include information

 

(1)           that is now or later becomes generally know to the computer industry (other than as a result of a breach of this agreement);

 

(2)           that is independently developed by the other Party;

 

(3)           that the other Party lawfully obtains from any third Party who has lawfully obtained such information;  or

 

(4)           that is later published or generally disclosed to by the public by the Party which owns it.

 

Each Party shall bear the burden of showing that any of the foregoing exclusions in this clause 13.3 applies to any information or materials.

 

13.4           Each Party agrees to hold in confidence and not to disclose or reveal to any person or entity the Confidential Information of the other Party received as a result of the Joint Venture without the clear and express prior written consent of the Party which owns the Confidential Information.

 

  

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13.5           Each Party agrees not to use or disclose any of the Confidential Information of the other Party received hereunder for any purpose at any time, other than for the limited purposes of the Joint Venture.  Without limiting the generality of the foregoing, a Party shall not disclose any Confidential Information to any of its employees except those employees who are required to have such Confidential Information in order to perform their functions in connection with the limited purpose of this Agreement.  Each permitted employee to whom Confidential Information is disclosed shall sign a non-disclosure agreement substantially the same as this Clause 14 prior to any Confidential Information being disclosed to such employee.

 

13.6           Neither Party shall copy, alter, modify, disassemble, reverse engineer or decompile any of the Technology or other materials provided to it by the other Party, whether provided in written or other tangible form, without the prior written consent of the Party which owns the Technology or other materials.

 

13.7           Each Party agrees to return to the other any and all materials provided to it by the other Party, together with any copies (including but not limited to, complete or partial copies incorporated into other materials) that may have been made, promptly upon the request of Party which owns it or, if not requested earlier, promptly after the purposes for which they were furnished have been accomplished or abandoned.

 

14.  Notice

 

14.1           Any notice, direction or other instrument required or permitted to be given under this Agreement will be in writing and may be given by mailing the same postage prepaid or delivering the same by hand addressed as follows:

 

If to Marine Drive Mobile:

1278 Indiana, Suite 301

San Francisco, CA 94107

 

If to Pay2Gate:

1201 Orange St, Suite 600

Wilmington, DE 09899-0511

 

or to such other address as a Party may specify by notice and shall be deemed to have been received, if delivered by hand, on the date of delivery if it is a business day and otherwise on the next succeeding business day and, if mailed, on the fifth business day following the posting of the notice except if there is a postal dispute, in which case all communications shall be delivered.

 

15. Miscellaneous

 

15.1           This agreement shall not be assignable by either Party, and neither Party may delegate its duties hereunder, without the prior written consent of the other Party, which consent may be granted or denied in the sole discretion of the non-assigning Party, except that in the event that more than 50% of the capital stock of a Party is acquired by any person or entity, the other Party’s consent shall not be required for an assignment of this agreement to such person or entity.

 

15.2           This agreement shall enure to the benefit of and be binding on the Parties and their respective heirs, administrators, successors and assigns.

 

  

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15.3           Each Party shall perform and deliver the deeds and documents and give the assurances as shall be reasonably required in order to fully perform and carry out and give effect to the terms of this agreement.

 

15.4           A waiver of any breach of the provisions of this agreement shall not be binding on any Party unless the waiver is in writing and the waiver shall not affect the Party's rights with respect to any future breach.

 

15.5           Time is of the essence in this agreement.

 

15.6           This agreement supersedes and replaces all previous agreements, whether written or oral, memoranda or correspondence between the Parties with respect to the subject-matter of this agreement.

 

15.7           Wherever in this agreement the singular number or masculine gender occurs, they shall be respectively construed as the plural or feminine or neutral, or vice versa, as the context or reference may require.

 

15.8           The headings of all paragraphs in this agreement are inserted for convenience of reference only, and shall not affect the construction of it.

 

15.9           This agreement shall be interpreted and construed in accordance with the laws of the State of California.

 

15.10           In case of conflict between the terms and provisions of this agreement and those in the schedules, the terms and conditions of this agreement shall govern and prevail.

 

15.11           This agreement may be executed in counterpart and the executed counterparts shall constitute one agreement.

 

In witness whereof the Parties have executed this agreement as of the day and year first written above.

Marine Drive Mobile Corp.

 

____________________________

Authorized Signatory

Pay2Gate LLC.

____________________________

Authorized Signatory

  

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Schedule “A”

Intellectual Property of Marine Drive Mobile Corp.

  

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Schedule “B”

Intellectual Property of Pay2Gate LLC

  

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Schedule “C”

Intellectual Property of the Joint Venture

  

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Schedule “D”

Scope of Work of Marine Drive Mobile Corp.

  

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Schedule “E”

Scope of Work of Pay2Gate LLC.

  

15Exhibit 10.2

  

ACQUISITION AGREEMENT

 

This Acquisition Agreement
(“Agreement”) is dated as of March 25, 2012 by and between The Company (to be renamed Lustros, Inc.), (“Lustros”)
a Utah corporation (hereinafter referred to as the “Seller” or the “Company”) and Michael Forster and SLO
3 Holdings, Inc. (collectively hereinafter referred to as the “Buyers”).

 

RECITALS

 

WHEREAS, the Seller
is in the business of copper mining and the manufacturing of food grade copper sulfate through its subsidiary, Bluestone S.A.,
a Chilean development stage company. The Company also owns an additional asset, named Power-Save Energy Company (hereinafter referred
to as the “Business”), a manufacturer of renewable energy and energy savings products; and,

 

WHEREAS, Seller desires
to sell the Business to the Buyers, which shall include, all of the assets of the Business including internet property rights and
any other intellectual property described herein and all liabilities of the Business in consideration for the satisfaction of all
amounts previously and currently owed to the Buyers by the Seller; and,

 

WHEREAS, the Buyers
agrees to discharge all monies owed to them from the Seller in exchange for the transfer of title to all assets and intellectual
property in the Business to the Buyers. Seller agrees to indemnify the Buyers and hold them harmless against any and causes of
action relating to the Business.

 

AGREEMENTS

 

Therefore, for good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the signatories below agree as follows:

 

1.            Transaction.
At the Closing (as defined in Section 6 herein) hereof, the Seller shall transfer and deliver to the Buyers, clear title in all
of the Assets and Liabilities (as defined below) of the Business, whether tangible, intangible, real, personal or mixed, in exchange
for the discharge of all debts owed to the Buyers by the Seller as defined below (“Consideration'').

 

2.            Assets.
The term “Assets” shall mean all assets of the Business, including, but not limited to the following:

 

(a)            Ownership to related domains; www.Power-Save.com; and

 

(b)            Trademarks and Copyrights related to Power-Save Energy
Company; and

 

(c)            Web Portal of www.Power-Save.com to include all modes and codes; and

 

(d)            All account and legal books and records related to Power-Save Energy Company as it relates to the business of Power-Save
Energy Company, with the exception of documents that pertain to the remaining public entity; and

 

(e)            All corporate documents and files as they related to the business of Power-Save Energy Company, including but not limited
to the business and marketing plans of Power-Save Energy Company, with the exception of documents that pertain to the remaining
public entity.

 

(f)            All assets referred to or referenced within any audited financial statements of the Business in preparation or consideration
of the Closing of this transaction, with the exception of documents that pertain to the remaining public entity.

 

 

3.            Liabilities.
The term “Liabilities” shall mean all liabilities of the Business, including, but not limited to the following:

 

 (a)            Any Credit Cards, lines of credit, or bank debts; and

 

 (b)            Any Accounts Payable; and

 

 (c)            Any Law Suits, Claims existing.

  

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4.            Consideration.
The Purchase Price shall be satisfaction of any and all debts owed to Buyers by the Seller and the simultaneous transfer of clear
and good title of the Assets in the Business by the Seller to the Buyers.

 

 (a)            Manner of Payment of the Consideration. Buyers are paying the Purchase Price by physically delivering this Agreement, executed in full, to the Seller at Closing, upon which the Seller shall deliver clear and good title to the Buyers.

 

5.            Closing.
The term “Close,” “Closing,” “Closes” or “Closed” shall refer to the Closing of
the various transactions contemplated hereby, all of which shall be deemed consummated when, and only when, the terms and conditions
as set forth herein have been fully complied with and the purchase by the Buyers of the Seller's Assets has occurred and is effective
immediately ("Closing Period") from the date of execution of this Agreement. Conversely, if the various transactions
proposed and/or discussed herein do not Close within the prescribed Closing Period, the various transactions contemplated herein
will have failed and this Agreement shall automatically terminate.

 

6.            Conduct and
Transactions of Seller Prior to the Closing. Between the date of execution of this Agreement and the Closing, the executive
officers and Board of Directors of the Seller shall retain full control of the management and business thereof. In order to assure
protection and preservation of the Seller's assets, properties and businesses as well as the Seller's performance of its obligations
under and related to this Agreement, the Seller agrees that from the date of this Agreement up to and including the Closing:

 

(a)            The
Seller shall preserve, or cause to be preserved substantially intact, its business organization, except such changes as may be
required, with the Buyer's consent, to effect the transactions contemplated hereby, and the Seller shall use its best efforts to
keep available the services of its present officers and principal employees, and to preserve its existing business relationships.

 

(b)            The
Seller agrees that prior to the Closing, it will not, without the prior written consent of the Buyers (which consent will not be
unreasonably withheld):

 

(i)            Redeem
directly or indirectly or agree to redeem, purchase, or otherwise acquire any of its capital stock or other ownership interest;

 

(ii)            Effect
a split or reclassification of its capital stock, liquidate, recapitalize, or reorganize itself except as contemplated herein;

 

(iii)            Merge
or consolidate, or sell all or substantially all of its assets or enter into any agreement for such merger, consolidation, or sale
of assets, except as required by the transactions contemplated by this Agreement;

 

(iv)            Change
the character of its business;

 

(v)            Except
in the ordinary course of business, waive any contractual rights of substantial value;

 

(vi)            Breach
any agreement to which the Seller is a party if such breach would have a material adverse effect on the business of the Seller.

 

(c)            The
Seller will exert its best efforts to fulfill in a timely manner all objectives and conditions to permit consummation of the transactions
as contemplated and execute and deliver to the Buyer any and all documents necessary, in the reasonable opinion of its counsel,
to consummate the transactions contemplated by this Agreement, and cause the Subsidiaries to do the same.

 

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7.            Conduct
and Transactions by the Buyers Prior to Closing. Between the date of this Agreement and the Closing, the Buyers shall use
its best efforts to fulfill in a timely manner all objectives and conditions to permit consummation of the transactions as contemplated
herein and execute and deliver to the Seller any and all documents necessary, in the reasonable opinion of its counsel, to consummate
the transactions contemplated by this Agreement, and to cause its subsidiaries to do the same. In order to assure the continuity
of the Buyer's business, financial condition, assets and properties as well as the Buyer's performance of its obligations under
and related to this Agreement, the Buyer agrees as follows:

 

(a)            From
the date of this Agreement up to the Closing, the Buyers will operate its business in the ordinary course and shall preserve,
or cause to be preserved substantially intact, its business organization, except for such changes as may be required to effect
the transactions contemplated by this Agreement.

 

(b)            From
the date of this Agreement up to and including the Closing, the Buyers will notify the Seller promptly of any material changes
in the business, assets, financial condition or properties of the Buyers or their ability to assume the Associated Trade Liabilities
described herein.

 

8.            Conditions Precedent.

 

(a)            Neither
the Buyers nor the Seller shall have (i) made a general assignment for the benefit of creditors, (ii) filed a petition in bankruptcy,
or been adjudicated a bankrupt or insolvent, (iii) filed a petition seeking any reorganization, arrangement, imposition, readjustment,
liquidation, dissolution or similar relief under any present or future bankruptcy or similar statute, law or regulations, (iv)
filed an answer admitting or not contesting the material allegations of a petition against it in any such proceeding, or (v) sought
or consented to or acquiesced in the appointment of any trustee, receiver, or liquidator of any material part of its properties.

 

(b)            There
shall not be pending any suit or action seeking to enjoin the transactions contemplated by this Agreement nor shall any judgment,
temporary restraining order, injunction or similar relief restraining or inhibiting such transaction have been issued by any court
or governmental agency (other than any suit or action with respect to which it is not reasonable to believe that the transactions
contemplated by this Agreement may be enjoined). If any request for an injunction in connection with the transactions contemplated
by this Agreement is scheduled or granted, then the Closing shall not take place until after the disposition of such motion. If
an injunction is granted, either party may terminate this Agreement.

 

9.            Closing Deliveries.
On the date hereof the parties are executing and/or delivering such documents as are reasonably required in order to effectuate
the consummation of the transaction contemplated hereby.

 

10.            Taxes. The
parties hereto have been advised and have agreed to seek independent counsel regarding the tax consequences and certain liabilities
that may arise upon the Closing of this Agreement.

 

11.            Further Assurances.
The Parties shall execute such further documents, and perform such further acts, as may be necessary to transfer and convey the
Assets to Buyers, on the terms herein contained, and to otherwise comply with the terms of this Agreement and to consummate the
transaction contemplated hereby.

 

12.            Miscellaneous.

 

(a)            Entire
Agreement. This Agreement and the instruments to be delivered by the parties pursuant to the provisions hereof constitute the
entire agreement between the parties.

 

(b)            Survival;
Nonwaiver. All representations and warranties shall survive the consummation of the transaction contemplated herein and for
a period of two (2) years following the date hereof (and none shall merge into any instrument of conveyance) regardless of any
investigation or lack of investigation by any of the parties hereto. The failure in any one or more instances of a party to insist
upon performance of any of the terms, covenants or conditions of this Agreement, to exercise any right or privilege in this Agreement
conferred, or the waiver by said party of any breach of any of the terms, covenants or conditions of this Agreement, shall not
be construed as a subsequent waiver of any such terms, covenants, conditions, right or privileges, but the same shall continue
and remain in full force and effect as if no such forbearance or waiver had occurred. No waiver shall be effective unless it is
in writing and signed by an authorized representative of the waiving party.

 

    	3

    	 

    
 

(c)            Applicable
Law. This Agreement shall be governed and controlled as to validity, enforcement, interpretation, construction, and
effect and in all other respects by the internal laws of the State of Utah applicable to contracts made in that State,
without regard to any conflict of law principles of the State of Utah. Buyers and Seller irrevocably consent and submit to
the exclusive jurisdiction of any local, state or federal court State of Utah for enforcement of this Agreement. Buyers and
Seller irrevocably waive any objection they may have to venue in the defense of an inconvenient forum to the maintenance of
such actions or proceedings to enforce this Agreement.

 

(d)            Binding
Effect. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their successors and permitted
assigns. Nothing in this Agreement, express or implied, is intended to confer on any person other than the parties hereto, and
their respective successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 

(e)            Amendments.
This Agreement shall not be modified or amended except pursuant to an instrument in writing executed and delivered on behalf of
each of the parties hereto.

 

(f)            Headings.
The headings contained in this Agreement are for convenience of reference only and shall not affect the meaning or interpretation
of this Agreement.

 

(g)            Severability.
Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable
law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other
jurisdiction, and this Agreement shall be reformed, construed and enforced in such jurisdiction so as to best give effect to the
intent of the parties under this Agreement.

 

(h)            Counterparts.
This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together
constitute one and the same agreement.

 

(i)            No
Strict Construction. The parties hereto jointly participated in the negotiation of this Agreement. The language used in this
Agreement shall be deemed to be the language chosen by the parties hereto to express their collective mutual intent, this Agreement
shall be construed as if drafted jointly by the parties hereto, and no rule of strict construction shall be applied against any
person or entity.

 

(j)            Interpretation.
Whenever the term “include” or “including” is used in this Agreement, it shall mean “including, without
limitation,” (whether or not such language is specifically set forth) and shall not be deemed to limit the range of possibilities
to those items specifically enumerated. The words “hereof”, “herein” and “hereunder” and words
of similar import refer to this Agreement as a whole and not to any particular provision. Terms defined in the singular have a
comparable meaning when used in the plural and vice versa.

 

(k)            Attorneys'
Fees. In the event that either party hereto brings an action or proceeding against the other party to enforce or interpret
any of the covenants, conditions, agreements or provisions of this Agreement, the prevailing party in such action or proceeding
shall be entitled to recover all costs and expenses of such action or proceeding, including, without limitation, reasonable attorneys'
fees, charges and disbursements actually incurred, and the reasonable fees and costs of expert witnesses actually incurred.

 

 

[SIGNATURE PAGE
FOLLOWS]

 

 

    	4

    	 

    
 

IN WITNESS WHEREOF,
the parties have executed this Asset Purchase Agreement on the date first above written.

 

 

	LUSTROS, INC.	MICHAEL FORSTER
	 	 
	/s/ Zirk Engelbrecht	/s/ Michael Forster
	
        By: Zirk Engelbrecht

        Its: CEO
	By: Michael Forster
	 	 
	 	 
	 	SLO 3 HOLDINGS, INC.
	 	 
	 	
        /s/ Michael Forster

        By: Michael Forster

        Its: Managing Member

 

 

 

 

 

5

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