Document:

Exhibit 10.9

 

NEITHER
THIS NOTE NOR THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE. THESE SECURITIES HAVE BEEN SOLD IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR
IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS.

 

COATES
INTERNATIONAL, LTD.

 

Convertible
Note

 

	Issuance
    Date:  November 6, 2014	Original
    Principal Amount:          $250,000
	Note
    No. 1847-1	Consideration
    Paid at Close:   $40,000

 

FOR
VALUE RECEIVED, COATES INTERNATIONAL, LTD., a Delaware corporation (the "Company"), hereby promises
to pay to the order of Cardinal Capital Group, Inc. or registered assigns (the "Holder") the amount set
out above as the Original Principal Amount (as reduced pursuant to the terms hereof pursuant to redemption, conversion or otherwise,
the "Principal") when due, whether upon the Maturity Date (as defined below), acceleration, redemption or otherwise
(in each case in accordance with the terms hereof) and to pay interest ("Interest") on any outstanding Principal
at the applicable Interest Rate from the date set out above as the Issuance Date (the "Issuance Date") until
the same becomes due and payable, upon the Maturity Date or acceleration, conversion, redemption or otherwise (in each case in
accordance with the terms hereof).

 

The
Original Principal Amount is $250,000 (two hundred fifty thousand) plus accrued and unpaid interest and any other fees. The Consideration
is $250,000 (two hundred fifty thousand) payable by wire transfer. The Holder shall pay $40,000 of Consideration upon closing
of this Note. The Holder may pay additional Consideration to the Company in such amounts and at such dates as mutually agreed
upon by both the Holder and the Company. For purposes hereof, the term “Outstanding Balance” means the Original Principal
Amount, as reduced or increased, as the case may be, pursuant to the terms hereof for conversion, breach hereof or otherwise,
plus any accrued but unpaid interest, collection and enforcements costs, and any other fees or charges incurred under this Note.
The Original Principal Amount due to Holder shall be prorated based on the Consideration paid by Holder (as well as any other
interest or fees) such that the Company is only required to repay the amount funded and the Company is not required to repay any
unfunded portion of this Note.

 

(1)          GENERAL
TERMS

 

(a)          Payment
of Principal. The "Maturity Date" shall be two years from the date of each payment of Consideration, as may
be extended at the option of the Holder in the event that, and for so long as, an Event of Default (as defined below) shall not
have occurred and be continuing on the Maturity Date (as may be extended pursuant to this Section 1) or any event shall not have
occurred and be continuing on the Maturity Date (as may be extended pursuant to this Section 1) that with the passage of time
and the failure to cure would result in an Event of Default. 

 

    	 

    	 

    

 

(b)          Interest.
Interest shall accrue at a rate of 8% (“Interest Rate”) continuously compounded and shall be applied to the
Original Principal Amount. Interest hereunder shall be paid on the Maturity Date (or sooner as provided herein) to the Holder
or its assignee in whose name this Note is registered on the records of the Company regarding registration and transfers of Notes
in cash or converted into Common Stock at the Conversion Price provided the Equity Conditions are satisfied. 

 

(c)          Security.
This Note shall not be secured by any collateral or any assets pledged to the Holder

 

(2)          EVENTS
OF DEFAULT. 

 

(a)          An
“Event of Default”, wherever used herein, means any one of the following events (whatever the reason and whether
it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court,
or any order, rule or regulation of any administrative or governmental body):

 

(i)          The
Company's failure to pay to the Holder any amount of Principal, Interest, or other amounts when and as due under this Note (including,
without limitation, the Company's failure to pay any redemption payments or amounts hereunder) or any other Transaction Document;

 

(ii)          A
Conversion Failure as defined in section 3(b)(ii)

 

(iii)        The
Company or any subsidiary of the Company shall commence, or there shall be commenced against the Company or any subsidiary of
the Company under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the
Company or any subsidiary of the Company commences any other proceeding under any reorganization, arrangement, adjustment of debt,
relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect
relating to the Company or any subsidiary of the Company or there is commenced against the Company or any subsidiary of the Company
any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 61 days; or the Company or any subsidiary
of the Company is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding
is entered; or the Company or any subsidiary of the Company suffers any appointment of any custodian, private or court appointed
receiver or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of sixty
one (61) days; or the Company or any subsidiary of the Company makes a general assignment for the benefit of creditors; or the
Company or any subsidiary of the Company shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay,
its debts generally as they become due; or the Company or any subsidiary of the Company shall call a meeting of its creditors
with a view to arranging a composition, adjustment or restructuring of its debts; or the Company or any subsidiary of the Company
shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or
any corporate or other action is taken by the Company or any subsidiary of the Company for the purpose of effecting any of the
foregoing;

 

(iv)        The
Company or any subsidiary of the Company shall default in any of its obligations under any other Note or any mortgage, credit
agreement or other facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or
by which there may be secured or evidenced any indebtedness for borrowed money or money due under any long term leasing or factoring
arrangement of the Company or any subsidiary of the Company in an amount exceeding $100,000, whether such indebtedness now exists
or shall hereafter be created; and

 

    	2

    	 

    

 

(v)          The
Common Stock is suspended or delisted for trading on the Over the Counter Bulletin Board market (the “Primary Market”).

 

(vi)         The
Company loses its ability to deliver shares via “DWAC/FAST” electronic transfer.

 

(vii)         The
Company loses its status as “DTC Eligible.”

 

(viii)        The
Company shall become late or delinquent in its filing requirements as a fully-reporting issuer registered with the Securities
& Exchange Commission.

 

(b)          Upon
the occurrence of any Event of Default, the Outstanding Balance shall immediately increase to 120% of the Outstanding Balance
immediately prior to the occurrence of the Event of Default (the “Default Effect”). The Default Effect shall automatically
apply upon the occurrence of an Event of Default without the need for any party to give any notice or take any other action.

 

(3)          CONVERSION
OF NOTE.          This Note shall be convertible into shares of the Company's Common Stock, on the terms and conditions set forth
in this Section 3.

 

(a)          Conversion
Right. Subject to the provisions of Section 3(c), at any time or times on or after 180 days from the Issuance Date, the Holder
shall be entitled to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into fully paid and
nonassessable shares of Common Stock in accordance with Section 3(b), at the Conversion Price (as defined below). The number of
shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to this Section 3(a) shall be equal to the quotient
of dividing the Conversion Amount by the Conversion Price. The Company shall not issue any fraction of a share of Common Stock
upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall
round such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer agent
fees, legal fees, costs and any other fees or costs that may be incurred or charged in connection with the issuance of shares
of the Company’s Common Stock to the Holder arising out of or relating to the conversion of this Note; provided, however,
that the Holder shall pay any transfer taxes. 

 

(i)          "Conversion
Amount" means the portion of the Original Principal Amount and Interest to be converted, plus any penalties, redeemed
or otherwise with respect to which this determination is being made.

 

(ii)          "Conversion
Price" shall equal 65% of the lowest closing price occurring during the twenty five (25) consecutive Trading Days immediately
preceding the applicable Conversion Date on which the Holder elects to convert all or part of this Note, subject to adjustment
as provided in this Note.

 

(b)          Mechanics
of Conversion.

 

(i)          Optional
Conversion. To convert any Conversion Amount into shares of Common Stock on any date (a "Conversion Date"),
the Holder shall (A) transmit by email, facsimile (or otherwise deliver), for receipt on or prior to 5:30 p.m., New York, NY Time,
on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit A (the "Conversion
Notice") to the Company. On or before the third Business Day following the date of receipt of a Conversion Notice (the
"Share Delivery Date"), the Company shall (A) if legends are not required to be placed on certificates of Common
Stock pursuant to the then existing provisions of Rule 144 of the Securities Act of 1933 (“Rule 144”) and provided
that the Transfer Agent is participating in the Depository Trust Company's ("DTC") Fast Automated Securities
Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder's
or its designee's balance account with DTC through its Deposit Withdrawal Agent Commission system or (B) if the Transfer Agent
is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the address as specified in the
Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock
to which the Holder shall be entitled which certificates shall not bear any restrictive legends unless required pursuant the Rule
144. 

 

    	3

    	 

    

 

(ii)          Company's
Failure to Timely Convert. If within three (3) Trading Days after the Company's receipt of the facsimile or email copy of
a Conversion Notice the Company shall fail to issue and deliver to Holder via “DWAC/FAST” electronic transfer the
number of shares of Common Stock to which the Holder is entitled upon such holder's conversion of any Conversion Amount (a "Conversion
Failure"), the Original Principal Amount of the Note shall increase by $2,000 per day until the Company issues and delivers
a certificate to the Holder or credit the Holder's balance account with DTC for the number of shares of Common Stock to which
the Holder is entitled upon such holder's conversion of any Conversion Amount (under Holder’s and Company’s expectation
that the holding period of any damages will tack back to the Issuance Date). Company will not be subject to any penalties once
its transfer agent processes the shares to the DWAC system. If the Company fails to deliver shares in accordance with the
timeframe stated in this Section, resulting in a Conversion Failure, the Holder, at any time prior to selling all of those shares,
may rescind any portion, in whole or in part, of that particular conversion attributable to the unsold shares and have the rescinded
conversion amount returned to the Outstanding Balance with the rescinded conversion shares returned to the Company (under Holder’s
and Company’s expectations that any returned conversion amounts will tack back to the original date of the Note).

 

(iii)          DWAC/FAST
Eligibility.          If the Company fails for any reason to deliver to the Holder the Shares by DWAC/FAST electronic transfer (such
as by delivering a physical stock certificate), or if there is a Conversion Failure as defined in Section 3(b)(ii), and if the
Holder incurs a Market Price Loss, then at any time subsequent to incurring the loss the Holder may provide the Company written
notice indicating the amounts payable to the Holder in respect of the Market Price Loss and the Company must make the Holder whole
by either of the following options at Holder’s election:

 

Market
Price Loss = [(High trade price for the period between the day of conversion and the day the shares clear in the Holder’s
brokerage account) x (Number of shares receivable from the conversion)] – [(Net Sales price realized by Holder) x (Number
of shares receivable from the conversion)].

 

Option
A – Pay Market Price Loss in Cash. The Company must pay the Market Price Loss by cash payment, and any such cash payment
must be made by the third business day from the time of the Holder’s written notice to the Company.

 

Option
B – Add Market Price Loss to Outstanding Balance. The Company must pay the Market Price Loss by adding the Market Price
Loss to the Outstanding Balance (under Holder’s and the Company’s expectation that the holding period of any Market
Price Loss amounts will tack back to the Issuance Date).

 

In
the case that conversion shares are not deliverable by DWAC/FAST electronic transfer an additional 10% discount to the Conversion
Price will apply.

 

    	4

    	 

    

 

(iv)          Book-Entry.
Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Note in accordance with the
terms hereof, the Holder shall not be required to physically surrender this Note to the Company unless (A) the full Conversion
Amount represented by this Note is being converted or (B) the Holder has provided the Company with prior written notice (which
notice may be included in a Conversion Notice) requesting reissuance of this Note upon physical surrender of this Note. The Holder
and the Company shall maintain records showing the Principal and Interest converted and the dates of such conversions or shall
use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this
Note upon conversion.

 

(c)          Limitations
on Conversions or Trading.

 

(i)          Beneficial
Ownership. The Company shall not effect any conversions of this Note and the Holder shall not have the right to convert any
portion of this Note or receive shares of Common Stock as payment of interest hereunder to the extent that after giving effect
to such conversion or receipt of such interest payment, the Holder, together with any affiliate thereof, would beneficially own
(as determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder) in excess of 9.99% of
the number of shares of Common Stock outstanding immediately after giving effect to such conversion or receipt of shares as payment
of interest. Since the Holder will not be obligated to report to the Company the number of shares of Common Stock it may hold
at the time of a conversion hereunder, unless the conversion at issue would result in the issuance of shares of Common Stock in
excess of 9.99% of the then outstanding shares of Common Stock without regard to any other shares which may be beneficially owned
by the Holder or an affiliate thereof, the Holder shall have the authority and obligation to determine whether the restriction
contained in this Section will limit any particular conversion hereunder and to the extent that the Holder determines that the
limitation contained in this Section applies, the determination of which portion of the principal amount of this Note is convertible
shall be the responsibility and obligation of the Holder. If the Holder has delivered a Conversion Notice for a principal amount
of this Note that, without regard to any other shares that the Holder or its affiliates may beneficially own, would result in
the issuance in excess of the permitted amount hereunder, the Company shall notify the Holder of this fact and shall honor the
conversion for the maximum principal amount permitted to be converted on such Conversion Date in accordance with Section 3(a)
and, any principal amount tendered for conversion in excess of the permitted amount hereunder shall remain outstanding under this
Note. The provisions of this Section may be waived by Holder upon written notification to the Company.

 

(d)          Other
Provisions.

 

(i)          Share
Reservation.          The Company shall at all times reserve and keep available out of its authorized Common Stock the full number
of shares of Common Stock issuable upon conversion of all outstanding amounts under this Note; and within five (5) Business Days
following the receipt by the Company of a Holder's notice that such minimum number of Underlying Shares is not so reserved, the
Company shall promptly reserve a sufficient number of shares of Common Stock to comply with such requirement. The Company will
at all times reserve at least 36,000,000 shares of Common Stock for conversion.

 

(ii)          Prepayment.          At
any time within the 180 day period immediately following the Issuance Date, the Company shall have the option, upon 10 business
days’ notice to Holder, to pre-pay the entire remaining outstanding principal amount of this Note in cash, provided that
(i) the Company shall pay the Holder 135% of the Outstanding Balance, (ii) such amount must be paid in cash on the next business
day following such 10 business day notice period, and (iii) the Holder may still convert this Note pursuant to the terms hereof
at all times until such prepayment amount has been received in full. Except as set forth in this Section the Company may not prepay
this Note in whole or in part.

 

    	5

    	 

    

 

(iii)          All
calculations under this Section 3 shall be rounded off to the nearest $0.00001 or whole share.

 

(iv)          Nothing
herein shall limit a Holder's right to pursue actual damages or declare an Event of Default pursuant to Section 2 herein for the
Company's failure to deliver certificates representing shares of Common Stock upon conversion within the period specified herein
and such Holder shall have the right to pursue all remedies available to it at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief, in each case without the need to post a bond or provide other security.
The exercise of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof
or under applicable law. 

 

(4)          Section
3(a)(9) or 3(a)(10) Transaction. So long as this Note is outstanding, the Company shall not enter into any transaction
or arrangement structured in accordance with, based upon, or related or pursuant to, in whole or in part, either Section 3(a)(9)
of the Securities Act (a “3(a)(9) Transaction”) or Section 3(a)(10) of the Securities Act (a “3(a)(10) Transaction”).
In the event that the Company does enter into, or makes any issuance of Common Stock related to a 3(a)(9) Transaction or a 3(a)(10)
Transaction while this note is outstanding, a liquidated damages charge of 25% of the outstanding principal balance of this Note,
but not less than $25,000, will be assessed and will become immediately due and payable to the Holder at its election in the form
of cash payment or addition to the balance of this Note.

 

(5)          PIGGYBACK
REGISTRATION RIGHTS. Provided the Underwriter determines in its sole discretion that there is room in the offering, the Company
shall include on the next registration statement the Company files with the SEC in connection with a secondary public offering
of its common stock (or on the subsequent registration statement if such registration statement is withdrawn) all shares issuable
upon conversion of this Note. Failure to do so will result in liquidated damages of 25% of the outstanding principal balance of
this Note, but not less than $25,000, being immediately due and payable to the Holder at its election in the form of cash payment
or addition to the balance of this Note.

 

(6)          REISSUANCE
OF THIS NOTE.

 

(a)          Assignability.
The Company may not assign this Note. This Note will be binding upon the Company and its successors and will inure to the
benefit of the Holder and its successors and assigns and may be assigned by the Holder with prior written consent of the Company,
which consent shall not be unreasonably withheld.

 

(b)          Lost,
Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of any indemnification undertaking by
the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the
Company shall execute and deliver to the Holder a new Note representing the outstanding Principal.

  

    	6

    	 

    

 

(7)          APPLICABLE
LAW AND VENUE. This Note shall be governed by and construed in accordance with the laws of the State of Nevada, without giving
effect to conflicts of laws thereof. Any action brought by either party against the other concerning the transactions contemplated
by this Agreement shall be brought only in the state courts of Nevada or in the federal courts located in the city and county
of San Diego, in the State of California. Both parties and the individuals signing this Agreement agree to submit to the jurisdiction
of such courts.

 

(a)          WAIVER.
Any waiver by the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver of any
other breach of such provision or of any breach of any other provision of this Note. The failure of the Holder to insist upon
strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term of this Note. Any waiver must be in writing.

 

[Signature
Page Follows]

 

    	7

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Convertible Note to be duly executed by a duly authorized officer as of the date
set forth above.

  

	 	COMPANY:
	 	 	 
	 	COATES INTERNATIONAL, LTD.
	 	 	 
	 	By:	/s/ Barry C. Kaye
	 	Name:	Barry C. Kaye
	 	Title:	Chief Financial Officer

 

[Signature
Page to Convertible Note No. 1847-1]

 

    	8

    	 

    

 

	EXHIBIT
    A	 
	 	 
	NOTICE
    OF CONVERSION	 
	 	 
	Barry
    Kaye, CFO	 	 	 	 	 	 	 
	Coates
    International, Ltd.	 	 	 	 	 	 	 	 
	2100
    Highway 34	 	 	 	 	 	 	 	 
	Wall
    Township, NJ 07719	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	The
    undersigned hereby elects to convert a portion of the $250,000 Convertible Note No. 1847-1 issued to Cardinal Capital Group,
    Inc. on October 2, 2014 into Shares of Common Stock of Coates International, Ltd. according to the conditions set forth in
    such Note as of the date written below.	 
	 	 
	By
    accepting this notice of conversion, you are acknowledging that the number of shares to be delivered represents less than
    10% (ten percent) of the common stock outstanding.  If the number of shares to be delivered represents more than
    9.99% of the common stock outstanding, this conversion notice shall immediately automatically extinguish and debenture Holder
    must be immediately notified.	 

 

	Date of Conversion:	 	 
	 	 	 
	Conversion Amount:	 	 
	 	 	 
	Conversion Price:	 	 
	 	 	 
	Shares to be Delivered:	 	 

 

Shares
delivered in name of: 

 

CARDINAL
CAPITAL GROUP, INC.

 

	Signature:		 
	 	By:	 
	 	Title:	 
	 	Cardinal Capital
    Group, Inc.

 

 

9Exhibit 10.8

 

EQUITY
PURCHASE AGREEMENT

 

 

 

For
the Purchase of
the Membership Interests
of

 

 

 

STERALL,
LLC

by
and among

 

 

 

HANNAHS
VALUE INVESTORS, LLC

as
Seller

 

 

and

 

 

 

STRATEGIC
ENVIRONMENTAL & ENERGY
RESOURCES, INC.,

 

 

as
Buyer

 

 

as
of September 12, 2014

    	 

    	 

    

 

EQUITY
PURCHASE AGREEMENT

 

This
Equity Purchase Agreement
(this "Agreement") is
made as of
September 12, 2014, by
and among Strategic
Environmental & Energy Resources,
Inc., a corporation organized and existing under the laws
of the State of Nevada
("SEER" or "Buyer"), Hannahs Value Investors, LLC ("Seller")
an entity formed under the laws
of the State of Delaware and Sterall, LLC, an entity formed under
the laws of the state of Delaware ("Sterall"). Buyer
and Seller are sometimes referred to herein
individually, as a "Patty" and collectively,
as the "Parties."

 

WHEREAS,
the SEER and
Sterall have entered
into that certain
Exclusive Use License &
Joint Operations Agreement
dated September 12, 2013, and

 

WHEREAS,
Sterall has and
continues to expend
significant capital and
resources for the development
of the medical
waste collection and treatment business
in Florida and elsewhere, and

 

WHEREAS,
Sterall has ordered 10
CoronaLuxTM systems for
licensed use to
destroy medical waste,
and

 

WHEREAS,
Sterall has taken
delivery of two
of the ordered
units, and

 

WHEREAS,
SEER has and
continues to expend
significant capital and resources to assist Sterall
in its efforts
to develop the
medical waste collection
ad treatment business in
Florida and elsewhere, and

 

WHEREAS,
the Parties desire
to continue to
work together in
order to most
efficiently and effectively establish
commercial operations, and

 

WHEREAS,
Seller desires to
sell, and Buyer
desires to purchase,
for the consideration and
on the terms
set forth in this Agreement,
membership interests of Sterall, which
constitutes fifteen percent (15%) of the issued and
outstanding Sterall Membership Interests
(the "Purchased Interests").

 

NOW
THEREFORE, for and
in consideration of
the premises, the
mutual promises, covenants and
agreements contained herein,
and other good
and valuable  consideration, 
the receipt and sufficiency of which are hereby acknowledged,
each of the Parties, intending to
be legally bound, hereby agrees as
follows:

 

		1.	SALE AND PURCHASE
OF PURCHASED UNITS;
CLOSING

    	1

    	 

    

 

 

		1.1	PURCHASE  OF PURCHASED 
UNITS

Subject
to the terms
and conditions of
this Agreement, on
the Closing Date
Seller agrees to sell,
irrevocably transfer and
deliver the Purchased
Membership Interests to Buyer, and Buyer will purchase and assume full ownership
and control of the Purchased Membership
Interests from Seller, free and clear of any
and all Encumbrances.

 

		1.2	CONSIDERATION  SHARES

Subject
to the terms
and conditions of
this Agreement, in
consideration of the
sale, transfer and delivery
to Buyer of the Purchased Membership Interests, Buyer will on the Closing Date
transfer, assign  and  deliver to
 Seller, or its assign, designee, or agent,  one
million  five hundred thousand (1,200,000)
shares (the "Consideration Shares") of restricted common stock in Buyer
(OTC:SENR). For purposes of
this Agreement, the Parties agree that
the value of the Purchased Units is at least equivalent to the value of the Consideration
Shares. Upon the consummation of the Contemplated
Transactions, there will be a total
of 150 outstanding membership interests in
Sterall, and Buyer will be issued
and own 22.5
membership interests, which shall constitute fifteen percent (15%) of
the total issued and outstanding
membership interests of Seller.

 

		1.3	CLOSING

(a)        
Subject to the satisfaction
and/or waiver of
all conditions to
Closing set fo1th
in Article 6
hereof (other than those conditions which can be satisfied only by
the delivery of documents
at Closing), the purchase and sale of the Purchased Membership Interests provided for in
this Agreement will be consummated at a closing (the "Closing") on
September 9, 2014, or at such other time
and place as the Patties may agree in writing.

 

(b)        
Any representations or
warranties made by
either party are
made to the
best of that party's
knowledge that are known, or could
or should have been known based upon
reasonable efforts or due diligence.

 

		1.4	CLOSING OBLIGATIONS

At
the Closing or
as soon thereafter
as may be
reasonable:

 

(a)               
Seller will deliver
to Buyer:

 

(i)                    
An updated operating
agreement representing the
Purchased membership interests owned
by Buyer, duly
endorsed with such
other formalities as
may be required under applicable Legal Requirements and
otherwise in form reasonably acceptable
to Buyer for valid transfer of full
title of the Purchased membership interests
to Buyer and for Buyer to assume full ownership and
control of the Purchased membership interests;

    	2

    	 

    

 

 

 

(ii)                   
copies of any
Consents (or waivers
in lieu thereof)
required of Seller
and the Company in
order to consummate
the Contemplated Transaction;

 

(iii)                 
such other documents,
instruments and certificates
as may be
required or the Buyer
may reasonably request.

 

		(b)	Buyer will deliver
to Seller, for
delivery of the
Purchased Units:

 

(i)                    
the Consideration Shares,
duly endorsed (or
accompanied by duly executed
powers) with such
other formalities as
may be required
under applicable legal requirements
and otherwise in form reasonably acceptable
to Seller for valid transfer of full title
of the Consideration Shares to Seller and for Seller to assume full ownership and control of the Consideration Shares;

 

(ii)                  
such other documents,
instruments and certificates
as may be
required or Seller may
reasonably request.

 

2REPRESENTATIONS AND
WARRANTIES OF SELLER

 

Seller
hereby represents and
warrants to Buyer,
as of the
Closing Date and
the date the Purchased
Membership interests are delivered
to Buyer, as follows:

 

2.1 ORGANIZATION AND
GOOD STANDING

 

(a)                
The Company is
a limited liability
company duly organized,
validly existing and in
good standing under
the laws of the State of Delaware, with
corporate power and authority to conduct its business
as it is now being conducted,
and to own or use the properties and assets that it purports
to own or use.

 

(b)                
Sterall shall deliver
to Buyer true
and correct copies
of the Organizational Documents
of the Company,
including the Operating
Agreement among the members.

 

2.2AUTHORITY; NO
CONFLICT

 

(a)                
Seller has the
corporate power and
authority to consummate
the Contemplated Transactions. The
Contemplated Transactions have
been duly authorized by the Seller and by
the Managing Member(s) of the Company and no other corporate
action on the part of Seller is necessary to consummate the Contemplated
Transactions.

 

(b)                
The Contemplated Transactions
are legal, valid
and binding transactions that,
to the knowledge
of Seller, are
not and will
not become subject to any
claims of any creditors of
any Seller for any reason.

    	3

    	 

    

 

 

 

(c)                
The execution, delivery
and performance of
this Agreement and
the consummation of the
Contemplated Transactions will
not:

 

(i)    
conflict with or
result in a
breach of any
provision of the
Organizational Documents of the
Seller;

 

(ii)  
conflict with or
result in a
breach of, or
give any governmental
body or other person
the right to
exercise any remedy or obtain any
relief under, any legal requirement or
any order or material agreement to which
Seller may be subject;

 

(iii)
 require any consent
obtained from, approval
of, authorization of, or qualification
with any shareholder,
sponsor or creditor
of Seller, or any other person or
governmental body, by Seller which has not been
obtained as of the date of this Agreement.

 

 

2.3CAPITALIZATION

 

(a)                
Upon the closing
of this transaction
there will be
a total of
150 membership interests outstanding
in Sterall. None
of the Sterall Units were issued in
violation of any legal requirement or in
violation of the preemptive rights of any person,
and the Sterall Units were duly authorized
and validly issued and are fully paid and
non-assessable.

 

2.4LEGAL PROCEEDINGS;
ORDERS

 

(a)                
There are no
pending proceeding, and
to the knowledge
of Seller, any
threatened proceeding that could
reasonably be expected
to have a
material adverse effect and the Seller
is not  subject to any order that relates to the Purchased Units, the facilities,
the business  or
the contemplated transactions.

 

2.5BROKERS OR FINDERS

 

Seller
has not entered
into any agreement
or arrangement entitling
any agent, broker, investment
banker, financial advisor
or other firm or person to any broker's
or finder's fee or any other commission
or similar fee in connection with the Contemplated Transactions.

 

2.6COMPLIANCE WITH LAWS

 

Except
as would not,
individually or in
the aggregate, be
reasonably expected to
have a material adverse
effect, the Seller
is, and at
all times has been,
in full compliance with all legal
requirements and all orders of any governmental
body applicable to it and its assets.

 

    	4

    	 

    

 

2.7PERMITS

 

Except
as would not,
individually or in the
aggregate, be reasonably
expected to have
a material adverse effect
the Seller holds, has received or
reasonably expects to receive all permits, registrations,
notifications, licenses, ce1tificates, and other
authorizations, consents and approvals of all governmental bodies required
of it in order for
the Seller to own,
operate and maintain its facilities and to
operate its business (collectively, "Permits");

 

		(a)	the Company is,
and at all times
has been, in
full compliance with
all  such Permits; and

 

		(b)	All statements,
asse1tions and calculations
in any application
for a Permit
were and remain
true and accurate
in all material
respects.

 

2.8LITIGATION

 

(a)                
Except as would
not, individually or
in the aggregate,
be reasonably expected
to have a material
adverse effect, there is no
claim, action, proceeding or investigation
or inquiry pending or, to Sellers' knowledge,
threatened, against or relating to Seller before
any arbitrator or governmental body, and
no order of any court, arbitrator or governmental
body; and

 

(b)                
To Sellers' knowledge,
no event has
occurred or circumstance
exists that may give
rise to or
serve as a
basis for the
commencement of any such
claim, action, proceeding, investigation
or inquiry.

 

2.9TAX
MATTERS

 

Except
for the matters
that would not,
individually or in
the aggregate, be
reasonably expected to have
a material adverse
effect:

 

(a)                
for all periods
ending prior to
or on the
Closing Date, all
tax returns required
to be filed by
or with respect to
Sterall have been or will
be timely filed with
the appropriate taxing authorities
in all jurisdictions in which such tax returns
are required to be filed, regardless of when
such tax returns are required to be
filed;

 

(b)                
for all periods
ending prior to
or on the
Closing Date, such
tax returns are
or will be true
and correct in all material respects,
and all Taxes legally due on or prior to
the Closing

 

Date
have been or will
be timely paid;
and

 

(b)                  
there are
no audits, disputes,
claims, assessments, deficiency
notices, levies, administrative proceedings,
or lawsuits pending,
or to the
knowledge of Seller, threatened against or with
respect to Seller by any taxing authority.

 

    	5

    	 

    

 

		2.10	INSURANCE

The
facilities and the
tangible assets of
the Seller are
or will be
covered by insurance policies
and with reasonable
coverages, limits and deductibles in accordance
with industry standards. Such coverages,
limits and deductibles will continue to be in
full force and effect for all periods subsequent to Closing Date.

 

		2.11	INVESTMENT  INTENTION

Seller
is acquiring the
Consideration Shares for
its own account,
for investment purposes only
and not with
a view to
the distribution (as such term is
used in Section 2(11) 
of  the Securities Act of 1933, as amended (the "Securities 
Act"). Seller understands that the Consideration Shares have not been
registered under the Securities Act, and
cannot be sold unless subsequently registered under
the Securities Act or
an exemption from such
registration is available.

 

3REPRESENTATIONS AND
WARRANTIES OF BUYER

Buyer
represents and warrants
to Sellers, as
of the date
hereof and as
of the Closing
Date, as follows:

 

3.1ORGANIZATION
AND GOOD STANDING

Buyer
is a corporation
duly organized, validly
existing and in good
standing under the laws
of the State
of Nevada, with corporate power and
authority to conduct its
business as it is now being conducted, and to own or use the properties and
assets that it purports to own or use.

 

 

3.2AUTHORITY;
NO CONFLICT

 

		(a)	Buyer
has the corporate
power and authority
to consummate the
Contemplated Transactions. The Contemplated
Transactions have been
duly authorized by the Board of Directors
of Buyer and no other corporate action on the part
of Buyer is necessary to consummate the Contemplated Transactions.

 

		(b)	This
Agreement has been
duly and validly
executed and delivered
by Buyer and, assuming
the due and
valid authorization, execution
and delivery thereof by
Sellers, is a valid
and binding obligation of Buyer, enforceable against Buyer in accordance with
its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors' rights, general 
equitable principles (regardless of whether such enforceability is considered
in a proceeding in equity
or at law).

 

		(c)	The execution,
delivery and performance
of this Agreement
and  the consummation of
the Contemplated Transactions
will not:

 

(i)conflict
with or result
in a breach
of any provision of
the  Organizational  Documents
of Buyer;

    	6

    	 

    

 

 

 

(ii) conflict
with or result
in a breach
of, or give any
Governmental Body or other
Person the right
to exercise any
remedy or obtain any
relief under, any Legal Requirement
or any Order or material agreement to which Buyer may
be subject; or

 

(iii)                
require any Consent
obtained from, approval
of, authorization of,
or qualification with any
shareholder, sponsor or
creditor Buyer, or any other Person
 or Governmental Body, by Buyer.

 

		3.3	LEGAL  PROCEEDINGS

There
is no pending
Proceeding that could
reasonably be expected
to have a Material Adverse
Effect on Buyer
or any of
the Contemplated Transactions and to the knowledge of Buyer, no such Proceeding
has been Threatened.

 

		3.4	INVESTIGATION  BY BUYER; 
SELLERS' LIABILITY

Buyer
has conducted its
own independent investigation,
review and analysis
of the business, operations,
assets, liabilities, results
of operations, financial
condition, technology and prospects of
the Seller, which investigation, review
and analysis was done by Buyer and,
to the extent Buyer deemed appropriate, by Buyer's Representatives based on information
made available by Seller to
the Buyer. Buyer acknowledges that it and its
representatives have been provided adequate
access to the personnel, properties, premises and records
of the Seller for such purpose.

 

		3.5	BROKERS OR FINDERS

Buyer
has not entered into
any agreement or
arrangement entitling any
agent, broker, investment banker,
financial advisor or
other firm or Person to any broker's or finder's fee or any other commission
or similar fee in connection with the Contemplated Transactions.

 

		4	GENERAL  PROVISIONS

 

4.1EXPENSES

Except
as otherwise expressly
provided in this
Agreement, each Party to
this Agreement will bear
its respective expenses
incurred in connection with the
preparation, execution and performance of
this Agreement and
the Contemplated Transactions, including all fees 
and expenses of agents,
representatives, counsel and accountants.
Sellers will cause the Company
not to incur any out-of-pocket expenses in connection
with this Agreement.

 

4.2FURTHER ASSURANCES

Buyer
and Sellers agree
(a) to furnish
upon request to
each other such further information, (b)
to execute and
deliver to each other such other
documents, and (c) to
do such other acts and things, in each case, all
as the other Party or Parties may reasonably request for the purpose of carrying out the intent of
this Agreement and the Contemplated Transactions.

 

    	7

    	 

    

 

4.3ENTIRE AGREEMENT
AND MODIFICATION

This
Agreement supersedes all
prior agreements (whether
oral or in writing) by and among
the Parties with respect to its
subject matter and constitutes (along
with the documents referred to in this Agreement)
a complete and exclusive statement of the terms
of the agreement among the Parties with
respect to its subject matter and
is not intended to confer any rights
or remedies upon any Person other than the
Parties. This Agreement may not be amended
except by a written agreement executed by
Buyer and Sellers.

 

4.4              
ARBITRATION

Buyer
and Sellers hereby
agree that all
disputes arising out
of or in
connection with this Agreement
or the Breach,
termination or validity
thereof ("Dispute") shall
be finally settled under the Rules of Arbitration of the American
Arbitration Association ("AAA"),
then in effect (the "Rules") by one
(1) arbitrator. The hearing shall
take place in Denver, Colorado. The award
may include an award of interest, legal fees
and costs of the arbitration.
The award shall be final, binding and conclusive upon the Parties. Each Party
shall have the right to have the award enforced by any court of competent jurisdiction.

 

4.5ASSIGNMENTS,
SUCCESSORS, AND NO
THIRD-PARTY RIGHTS

Neither
Buyer nor Sellers
may assign any
of its rights
under this Agreement
without the prior written
consent of the other
Party or Patties, except that
Buyer may assign any of
its rights under this Agreement to
any Affiliate or Subsidiary of Buyer without such consent of Sellers. Subject to the preceding
sentence, this Agreement will apply
to, be binding in
all respects upon, and inure to the benefit of the successors
and permitted assigns of, the Parties.  Nothing expressed or referred to in
this Agreement will be construed to
give any Person other than
the Patties any legal or equitable right,
remedy or claim under or with respect to
this Agreement or any provision of this Agreement.
This Agreement and all of its provisions
and conditions are for the sole and exclusive
benefit of the Parties and their permitted
successors and assigns.

 

4.6SEVERABILITY

If
any provision of
this Agreement is
determined to be
void, illegal, invalid, unenforceable
or contrary to
public law or policy, the other provisions of this Agreement
shall remain in full force and effect.
Any provision of this Agreement so determined to be void, illegal, invalid, unenforceable or contrary to public law or policy
only in part or degree
shall not affect the validity or enforceability of the remaining provisions of
this Agreement.

 

4.7GOVERNING LAW

This
Agreement will be
governed by the
laws of the
State of Colorado
without regard to conflicts
of laws principles.

 

    	8

    	 

    

 

4.8COUNTERPARTS

This
Agreement may be
executed in one
or more counterparts,
each of which
will be deemed
to be an
original copy of this Agreement and all of which, when
taken together, will be deemed to constitute one and the same
agreement.

 

4.9CONFLICT
BETWEEN AGREEMENT AND ATTACHMENTS,
ETC.

In
the event of
conflict between this
Agreement and the
Exhibits and Schedules
attached to this Agreement,
this Agreement shall
prevail.

 

4.10EXHIBITS
AND SCHEDULES

 

All Exhibits and Schedules to
this Agreement, if any, form part of this Agreement.

 

 

 

    	9

    	 

    

 

 

 

 

 

 

 

 

IN
W1TNESS
WHEREOF, the Parties
have executed and
delivered this
Agreement as of the
date first above written.

"Buyer":

STRATEGIC ENVIRONMENTAL & ENERGY RESOURCES, INC.

 

 

By: /s/ J John Combs III

Name:
J. John
Combs III

Title:
Chief Executive Officer

 

 

 

"Sellers"

 

Hannahs Value Investors LLC

 

By: /s/ Gerald Hannahs

Name: Gerald Hannahs

Title: Managing Member

STERALL,
LLC

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