Document:

Exhibit
        10.13

       

       

      

      

      August
        18, 2006

      

      

      
        	To:	Beijing
                HollySys Co. Ltd.
	 	 
	 	No.10, Jiancaicheng Zhong Lu, 
	 	Xisanqi, Haidian District 
	 	Beijing, China
	 	 
	 	 
	 	Gifted Time Holdings Limited
	 	British Virgin
                Island

      

       

      

      Re
        : The
        Stock Purchase Agreements and the Reorganization Agreement

      

      Dear
        Sirs,

      

      We
        are
        lawyers qualified in the People's Republic of China ("PRC") and are qualified
        to
        issue an opinion on the laws and regulations of the PRC.

       

        

      
 

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

         

      

      We
        have
        acted as PRC counsel to Beijing HollySys Co., Ltd. in connection with the
        Reverse Merger of Chardan North China Acquisition Corporation (“Chardan”) and
        Gifted Time Holdings Limited (“GT”). We are retained to give advice on the PRC
        legal issues with respect to Beijing HollySys Co., Ltd. (“BJ HLS”) and Hangzhou
        HollySys Automation Co., Ltd. (“HZ HLS”). 

      

      We
        have
        been requested to give this legal opinion on the validity and enforceability
        of
        the following Stock Purchase Agreements and the Reorganization
        Agreements:

       

      	(i)  	
              The
                Stock Purchase Agreement entered into by and between Team Spirit
                Industry
                Limited (“Team Spirit”), a company incorporated in British Virgin Islands
                with limited liability, holding 30% of the outstanding capital stock
                of HZ
                HLS and GT, a company incorporated in British Virgin Islands with
                limited
                liability on January 12, 2006.

            

      

      	(ii)  	
              The
                Stock Purchase Agreement entered into by and between OSCAF International
                Co. Limited (“OSCAF”), a company incorporated in British Virgin Islands
                with limited liability, holding 30% of the outstanding capital stock
                of HZ
                HLS and GT, a company incorporated in British Virgin Islands with
                limited
                liability on January 12, 2006.

            

      

      	(iii)  	
              The
                Reorganization Agreement entered into by and among Wang Changli,
                Cheng
                Wusi, Luo An and Shanghai Jinqiaotong Industry Development Co.
                Ltd.(“Jinjiaotong”), respectively holding 14.23%, 30%, 9.88% and 20% of
                the outstanding capital stock of BJ HLS, Team Spirit and OSCAF,
                respectively holding 30% and 30% of the outstanding capital stock
                of HZ
                HLS on September 20, 2005.

            

      

      	(iv)  	
              The
                Reorganization Agreement entered into by and among Wang Changli,
                Cheng
                Wusi, Luo An and Shanghai Jinqiaotong Industry Development Co.
                Ltd.(“Jinjiaotong”), respectively holding 14.23%, 30%, 9.88% and 20% of
                the outstanding capital stock of BJ HLS, Team Spirit and OSCAF,
                respectively holding 30% and 30% of the outstanding capital stock
                of HZ
                HLS on December 30, 2005.

            

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      
 

      In
        such
        capacity, we have examined such documents, as we have considered necessary
        for
        the purpose of giving this opinion. For the purpose of rendering this opinion,
        we have assumed the authenticity of all the documents provided by the parties,
        and the completeness and accuracy of all the information provided by all
        the
        parties. 

      

      Based
        on
        the foregoing Stock Purchase Agreements, the Reorganization Agreements and
        relevant laws and regulations, we are of the opinion that:

      

      1.
        The
        Stock
        Purchase Agreements

      

      HZ
        HLS
        was founded in 2003 and reorganized as a sino-foreign equity joint venture
        company in 2006 in accordance with the Chinese law. HZ HLS has an authorized
        stock capital of US$ 5 million. Team Spirit, OSCAF and BJ HLS are the registered
        stockholders of HZ HLS, respectively holding 30%, 30% and 40% of the ownership
        interests in HZ HLS as the date of the execution of the Stock Purchase
        Agreements.

      

      In
        accordance with the terms and conditions of the Stock Purchase Agreements,
        Team
        Spirit and OSCAF respectively sold to GT, and GT respectively purchased from
        Team Spirit and OSCAF, 30% and 30% of the ownership interests of HZ HLS.
        The
        consideration payable by GT to Team Spirit and OSCAF for the ownership interests
        of the sale stocks would be RMB 60,474,000.00 respectively. The Parties agree
        that GT shall pay the consideration by issuance of common stocks to Team
        Spirit
        and OSCAF or any third party designated them. GT shall respectively issue
        7,966
        shares of common stocks, representing 15.932% of the outstanding total capital
        stocks to Team Spirit and OSCAF.

      

      Upon
        and
        after all of the following conditions have been satisfied and fulfilled,
        the
        Stock Purchase Agreements shall come into effective: (i) The Stock Purchase
        Agreements have been signed by the Parties’ legal representatives or authorized
        persons; (ii) The transactions in the Stock Purchase Agreements have been
        approved by the Board of HZ HLS; (iii) The Stock Purchase Agreements have
        been
        approved by the original PRC government authorities. 

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      The
        Stock
        Purchase Agreements were entered into and executed by the authorized persons
        of
        the parties on January 12, 2006. On the execution date of the Stock Purchase
        Agreements, BJ HLS and GT made and concluded an agreement modifying the Equity
        Joint Venture Contract and Articles of Association of HZ HLS in relation
        to the
        stock sale and purchase transactions under the Stock Purchase Agreements.
        HZ HLS
        held the 4th Session of the 2nd meeting of the Board of Directors on January
        12,
        2006 which approved the Stock Purchase Agreements after discussion.

      

      HZ
        HLS
        has submitted all necessary legal documents to the competent Commerce Bureau
        for
        approval in January and got the approval from the Commerce Bureau of Hangzhou
        Economic and Technology Development Zone, which approved the amendment of
        the
        equity joint venture contract and the articles of association of HZ HLS.
        On
        February 13, 2006, Zhejiang Provincial Government issued a new PRC Approval
        Certificate for Foreign-invested Enterprises to HZ HLS, on which the investors
        of HZ HLS and their capital contribution amounts are respectively recorded
        as:
        BJ HLS, USD 2 million; GT, USD 3 million. On March 3rd, 2006, HZ HLS has
        completed the re-registration of the equities alteration in Hangzhou
        Administrative Bureau of Industry & Commerce.

      

      The
        transactions shall be governed by Provisions on Equities Alteration of Foreign
        Investment Enterprise (“Provisions”) which is promulgated by MOFTEC on May 28,
        1997. In accordance with the Article 20 of the Provisions, “stock transfer
        agreement and agreement on the modification of equity joint venture contract
        and
        articles of association shall take effect on the date of issuance of new
        approval certificate for foreign-investment enterprises. After effectiveness
        of
        these agreements, investors in the enterprise shall enjoy stockholders’ rights
        and assume stockholders’ obligations in line with stipulations in these modified
        equity joint venture contract and articles of association.”

      

      Based
        on
        the aforesaid facts and relevant PRC laws, we believe that

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      The
        Stock
        Purchase Agreements embody the true and consistent intentions and decisions
        of
        Team Spirit, OSCAF and GT. The Stock Purchase Agreements have complied with
        and
        fully satisfied all the essential conditions for taking effect and thus are
        valid, legal binding, and enforceable against the parties from February
        13,2006.

      

      HZ
        HLS
        has obtained the approval of its Board of Directors for the stock sale and
        purchase transactions. The examination and approval authorities who originally
        approved the establishment of HZ HLS have approved the Stock Purchase Agreements
        and issued a new Approval Certificate for Foreign-invested Enterprises. GT
        has
        been registered as the stockholders of HZ HLS, lawfully holding 60% of the
        total
        capital stocks of HZ HLS, and is, subject to the equity joint venture contract
        and Articles of Association of HZ HLS, entitled to enjoy the stockholders’
rights and assume the stockholders’ obligations of HZ HLS.

      

      2.
        The
        Reorganization Agreement

      

      The
        Reorganization Agreement entered into by and among the stockholders of BJ
        HLS,
        totally holding 74.11% of the outstanding capital stocks of BJ HLS, and the
        stockholders of HZ HLS, totally holding 60% of the outstanding capital stocks
        of
        HZ HLS on September 20, 2005, is substantially a Letter of Intend. Subject
        to
        the terms and conditions thereof, the parties of the Reorganization Agreement,
        in principle, agree to reorganize BJ HLS and HZ HLS to set up an offshore
        holding company by the means of reorganizing all their respective equity
        interests they hold in BJ HLS and HZ HLS to the offshore company. All parties
        agree to determine their respective stockholding proportion in the offshore
        company in accordance with the principle of fairness. The Reorganization
        Agreement entered into by and among the parties on December 30, 2005, has
        clearly and definitely stipulated that the parties shall reorganize BJ HLS
        and
        HZ HLS to set up GT by the means of reorganizing all their respective equity
        interests they hold in BJ HLS and HZ HLS to GT (including by means of nominee
        arrangements, consignment agreements or similar arrangement.). 

      

      Based
        on
        the aforesaid facts and relevant PRC laws, we believe that:

      

      Each
        of
        the stockholders which are parties to the Reorganization Agreements has the
        capacity and authority to dispose its ownership interests or equity interests
        derived from the stocks it held and to execute the Reorganization Agreement.
        The
        Reorganization Agreements embody the true and consistent intentions and
        decisions of the parties and the proposed reorganization is not prohibited
        and
        limited by any existing Chinese laws, rules and regulations as at the date
        of
        this Legal Opinion. The Reorganization Agreements are valid, legal binding,
        and
        enforceable against the parties from the effective date.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      This
        opinion is limited to the relevant matters under the law of the PRC (other
        than
        the laws of the Hong Kong Special Administrative Region and Macau Special
        Administrative Region) in effect on the date hereof, and the matters concerning
        the laws of other jurisdictions are not subject of this opinion. 

      

      This
        opinion is given solely for the benefit of the persons to whom it is addressed.
        It may not, except with our prior written permission, be relied upon by anyone
        in connection with this opinion or used for any other purpose.

      

      We
        hereby
        consent to the filing of this opinion as an exhibit to the Registration
        Statement on Form S-4 filed by HLS Systems International Ltd. (the "Registration
        Statement"). We also consent to the references to our firm name in the
        Registration Statement. By giving this consent, we do not admit that we come
        within the category of persons whose consent is required under Section 7 of
        the Securities Act or the rules and regulations of the Securities and Exchange
        Commission promulgated thereunder (the “Rules”), nor do we hereby admit that we
        are experts with respect to any part of the Registration Statement within
        the
        Securities Act or the Rules.

      

      

      
        	 	 	
                Yours
                  faithfully

              	 
	 	 	 	 
	 	 	
                Guantao
                  Law Firm

              	 
	 	 	 	 

      

      

      

      
        
          
          

        

        
          6EXECUTION
      COPY

    
 

    SETTLEMENT
      AGREEMENT AND GENERAL RELEASE

     

    This
      Settlement Agreement and General Release (“Agreement” or “General Release”) is
      entered into by Plaintiff John King, and on behalf of his agents,
      representatives, heirs, estate, executors, administrators, successors, and/or
      assigns (collectively referred to as “King” or “Plaintiff”) and Defendants
      NewGen Technologies, Inc. (“NewGen” or the “Company”) and Refuel America, Inc.
      (“Refuel”) and ICF Industries, Inc. (“ICF”) and their past or present
      predecessors, successors, assigns, affiliates, parents, subsidiaries, related
      companies, partners, benefit plans, directors, shareholders, members, officers,
      agents, attorneys, employees, servants, and insurers (hereinafter collectively
      referred to as “Defendants”) for the purposes of forever releasing Defendants
      from any and all claims which Plaintiff has, may have or may have had against
      Defendants and releasing Plaintiff from any and all claims which Defendants
      have, may have or may have had against Plaintiff.

     

    WHEREAS,
      Plaintiff instituted a civil action, entitled John
      King v. NewGen Technologies, Inc., and Refuel America, Inc.,
      Case
      Number: 3:06-cv-227 in the United States District Court for the Western District
      of North Carolina (the “Action”); and 

     

    WHEREAS,
      Plaintiff and Defendants desire to settle, resolve, compromise, terminate,
      and
      dismiss with prejudice any and all disputes or differences between them and
      to
      avoid the further expense, disruption and uncertainty of litigation, all without
      admitting liability or any wrongdoing;

     

    NOW
      THEREFORE,
      in
      consideration of the covenants contained herein, and for other valuable
      consideration, the receipt and sufficiency of which is hereby acknowledged,
      Plaintiff and Defendants agree that all claims or differences which they might
      have against each other are herewith settled, resolved, compromised, terminated,
      and dismissed with prejudice, upon the following terms and conditions:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXECUTION
      COPY

     

    1.    Plaintiff
      hereby expressly and unconditionally releases and forever discharges Defendants
      from: (a) any and all claims, issues, demands, remedies, prayers for
      relief, benefit claims, damages, attorneys’ fees, costs and/or causes of action
      alleged in, arising out of, or in any way related to the facts alleged in the
      Action, or which could have been alleged therein; and (b) any and all
      claims, issues, demands, remedies, prayers for relief, benefit claims, damages,
      attorneys’ fees, costs and/or causes of action, known or unknown and of whatever
      kind or nature, and whether asserted by Plaintiff, or on his behalf by any
      person or entity, arising out of or in any way related to any relationship
      or
      involvement Plaintiff had, or may have had, with Defendants, which arose on
      or
      before the effective date of this Agreement, under any possible legal,
      equitable, tort, contract or statutory theory or cause of action, including,
      but
      not limited to, claims under:

     

    
      	 	
              ·

            	
              The
                Fair Labor Standards Act, 29 U.S.C. § 201 et seq.;
                

            

    

    
      	 	 	 

      	 	
              ·

            	
              The
                Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001
                et seq.;
                

            

      	 	 	 

    

    
      	 	
              ·

            	
              The
                Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq.
                as
                amended;

            

    

    
      	 	 	 

      	 	
              ·

            	
              The
                Civil Rights Acts of 1866 and 1871, 42 U.S.C. § 1981 et seq.
                as
                amended; 

            

      	 	 	 

    

    
      	 	
              ·

            	
              The
                Rehabilitation Act of 1973, 29 U.S.C. § 701 et seq.;

            

    

    
      	 	 	 

      	 	
              ·

            	
              The
                Equal Pay Act of 1963, 29 U.S.C. § 206(d);

            

      	 	 	 

    

    
      	 	
              ·

            	
              The
                Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq.;

            

    

    
      	 	 	 

      	 	
              ·

            	
              The
                Older Workers Benefits Protection Act, 29 U.S.C. §
                626(f);

            

      	 	 	 

    

    
      	 	
              ·

            	
              The
                Americans with Disabilities Act, 42 U.S.C. § 12101 et seq.;
                

            

    

    
      	 	 	 

      	 	
              ·

            	
              The
                Family and Medical Leave Act, 29 U.S.C. § 2601, et seq.;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXECUTION
      COPY

     

    
      	 	
              ·

            	
              The
                Consolidated Omnibus Budget Reconciliation Act of 1985, I.R.C. §
                4980B;

            

    

    
      	 	 	 

      	 	
              ·

            	
              North
                Carolina common law;

            

      	 	 	 

    

    
      	 	
              ·

            	
              North
                Carolina statute or administrative code;
                and

            

      	 	 	 

    

    
      	 	
              ·

            	
              Any
                other federal, state or local human rights, civil rights, wage-hour,
                wage
                payment, pension or labor laws, rules and/or regulations, constitutions,
                ordinances, public policy, contract or tort laws, principles of equity,
                or
                the common law.

            

    

    

    Defendants
      hereby expressly and unconditionally release and forever discharge Plaintiff
      from any and all claims, issues, demands, remedies, prayers for relief,
      benefit claims, damages, attorneys’ fees, costs and/or causes of action, known
      or unknown and of whatever kind or nature, and whether asserted by Defendants,
      or on their behalf by any person or entity, arising out of or in any way related
      to any relationship or involvement Defendants had, or may have had, with
      Plaintiff, which arose on or before the effective date of this Agreement, under
      any possible legal, equitable, tort, contract or statutory theory or cause
      of
      action.

    

    2.    With
      regard to claims Plaintiff may have pursuant to the Age Discrimination in
      Employment Act of 1967, 29 U.S.C. § 621, et
      seq.
      (“ADEA”), Plaintiff acknowledges that his waiver, release and discharge of
      claims against Defendants, is made knowingly and voluntarily, and specifically
      agrees that : (i) this Agreement is written in a manner which he understands;
      (ii) he is waiving these rights or claims in exchange for substantial
      consideration in excess of anything of value to which he is otherwise entitled
      to receive; and (iii) he has been advised in writing, given the opportunity
      to,
      and has consulted with an attorney of his choosing prior to executing this
      Agreement.

     

    3.    Plaintiff
      and Defendants expressly understand and agree that this is a General Release
      and
      that no reference herein to any specific form of claim or statute is intended
      in
      any way to limit its scope. Plaintiff and Defendants expressly understand and
      agree that this General Release is a complete defense to any action Plaintiff
      or
      Defendants may bring in any court or agency against each other as to the matters
      contained herein. This General Release shall become effective seven (7) days
      after Plaintiff executes this General Release.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXECUTION
      COPY

     

    4.    Plaintiff
      expressly understands, agrees and acknowledges by executing this Agreement
      that
      Plaintiff has no connection to or affiliation with NewGen, Refuel, ICF or any
      of
      their parents, subsidiaries, related companies or affiliates whether as an
      employee, director or in any other manner; except as a creditor as described
      in
      paragraph 6 below and a shareholder.

     

    5.    Plaintiff
      further expressly understands, agrees and acknowledges by executing this
      Agreement that the Promissory Note, dated June 1, 2005, in an original principal
      amount of $316,500, issued by Refuel to the Plaintiff (the “Existing Note”) (and
      any other notes he may hold as issued by NewGen, Refuel, ICF or any of their
      parents, subsidiaries, related companies or affiliates prior to the date of
      this
      Agreement) shall be surrendered and cancelled concurrently herewith (subject
      to
      the delivery of the Amended and Restated Convertible Note described in paragraph
      6(a) below in replacement thereof) and any employment agreement or contract
      Plaintiff may have had with NewGen, Refuel, ICF or any of their parents,
      subsidiaries, related companies or affiliates prior to the date of this
      Agreement is null and void, and that Plaintiff is not entitled to anything
      from
      Defendants except that which is expressly set forth in this
      Agreement.

     

    6.    Defendants
      and Plaintiff agree that the settlement of their disputes pursuant to this
      Agreement shall be based upon Plaintiff’s receipt of the following
      consideration, which Plaintiff understands and agrees shall be subject to the
      contingencies associated therewith, and shall furthermore be subject to the
      following conditions: 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXECUTION
      COPY

     

    (a)    Defendant
      NewGen will issue to Plaintiff, in replacement of the Existing Note, an Amended
      and Restated 12% Convertible Unsecured Promissory Note in a principal amount
      of
      $317,794, reflecting the outstanding principal amount of the Existing Note
      plus
      legal fees and expenses incurred by Plaintiff in collection thereof, in the
      form
      annexed hereto as Exhibit
      A,
      (the
“Amended and Restated Convertible Note”);

     

    (b)    In
      addition to the Amended and Restated Convertible Note, Defendant NewGen will
      issue to Plaintiff a second 12% Convertible Unsecured Promissory Note, in an
      original principal amount of $357,206, reflecting accrued and unpaid salary
      owed
      to Plaintiff for services rendered by Plaintiff during the year 2005 and part
      of
      the year 2006 and the accrued, unpaid interest upon the Existing Note, in the
      form annexed hereto as Exhibit
      B
      (the
“Additional Note”) (collectively with the Amended and Restated Convertible Note,
      the “New Notes”);

     

    (c)    Plaintiff
      understands, acknowledges and agrees that the terms set forth in this paragraph
      6 and the effectiveness of this Agreement are contingent upon the cancellation
      by NewGen of 562,500 shares of its common stock, par value $.001 per share
      (“Common Stock”) currently held, and which shall be designated, by
      Plaintiff;

     

    (d)    Defendant
      NewGen shall issue to Plaintiff an option to purchase 75,000 shares of Common
      Stock (the “Option Shares”) at an exercise price of $.50 per share, which shall
      be fully vested upon the effectiveness of this Agreement and which shall expire
      January 15, 2009 (the “Option”); 

     

    (e)    The
      shares of NewGen’s Common Stock beneficially held by Plaintiff (i.e., (i) those
      shares Plaintiff currently holds beyond the 562,500 shares to be cancelled
      pursuant to this Agreement and (ii) those shares Plaintiff would own as a result
      of the conversion of the New Notes (the “Conversion Shares”) into Common Stock
      or the exercise of the Option or other options for the purchase of Common Stock)
      will be subject to the terms of a registration rights agreement, in the form
      annexed hereto as Exhibit
      C,
      to be
      entered into by NewGen and Plaintiff (the “Registration Rights Agreement”);
      and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXECUTION
      COPY

     

    (f)    In
      order
      to facilitate the disposition of shares of Common Stock to be held by Plaintiff
      after the date hereof, Defendant NewGen hereby agrees that to the extent that
      Plaintiff’s holding period for any of such shares meets or exceeds the two year
      period required for disposition thereof pursuant to Rule 144(k) under the
      Securities Act of 1933, as amended (the “Securities Act”), as confirmed by an
      opinion of Plaintiff’s counsel provided to Defendant NewGen, any legends on the
      certificates representing such shares that reflect the acquisition of such
      shares for investment purposes only and the status of such shares as restricted
      securities under Rule 144 under the Securities Act, along with any stop transfer
      orders in the appropriate records of Defendant NewGen or its transfer agent
      preventing the disposition thereof by Plaintiff shall be removed within
ten
      (10)
      business days of Defendant NewGen’s receipt of Plaintiff’s certificate(s) or
      request
      (along
      with the requisite opinion).
      Defendant NewGen further agrees that to the extent that Plaintiff’s holding
      period for any shares of Common Stock meets or exceeds the one year period
      required for volume-limited disposition thereof by non-affiliates of NewGen
      pursuant to Rule 144 under the Securities Act, as confirmed by an opinion of
      Plaintiff’s counsel provided to Defendant NewGen, Defendant NewGen and its
      transfer agent shall cooperate within ten
      (10)
      business days of the receipt of Plaintiff’s request
      (along
      with the requisite opinion)
      in
      enabling the disposition of such number of shares as shall be permitted under
      Rule 144, as confirmed by such opinion of counsel. Provided,
      however,
      that
      notwithstanding any other provision of this paragraph 6(f), the shares of Common
      Stock held by Plaintiff shall in all events be subject to the lock-up provisions
      of Section 11 of the Registration Rights Agreement and Defendant NewGen shall
      not be required to take any action to facilitate the transfer of any shares
      by
      Plaintiff in contravention thereof. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXECUTION
      COPY

     

    (g)    Plaintiff
      acknowledges that the settlement of NewGen’s dispute with Plaintiff pursuant to
      this Agreement is contingent upon Plaintiff’s not aiding or abetting, after the
      date hereof, any of A G Global Partners Limited (“A G Global”), Alexander
      Greystoke (“Greystoke”) (or any person working together with Greystoke), NewGen
      Fuel Technologies Limited (“NewGen Fuel”) or Geoffrey Dawson (“Dawson”) with
      respect to their civil action against the Company stemming from the joint
      venture and license agreement by and among Defendant NewGen, NewGen Fuel and
      A G
      Global; provided,
      however,
      that
      Defendants acknowledge that Plaintiff may be legally required to provide
      testimony or discovery with respect to a matter involving Defendants, AG Global,
      Greystoke, NewGen Fuel and Dawson and that such testimony or discovery shall
      not
      be a breach of this Section nor this Agreement.

     

    7.    The
      consideration provided for in this Agreement represents full and final
      compensation for all alleged damages which arose on or before the effective
      date
      of this Agreement, regardless of the nature of the alleged damages, and
      Plaintiff expressly understands and agrees that Defendants shall not be required
      to make any further payment to him or to any attorney or any other person or
      entity whatsoever regarding any claim or right asserted by him as described
      in
      this Agreement, or regarding any claims which may be asserted on his behalf
      by
      any other entity or agency. 

     

    8.    Plaintiff
      hereby represents and warrants, in connection with Plaintiff’s receipt of the
      New Notes and the Option as part of the consideration provided for by this
      Agreement, that Plaintiff is an “Accredited Investor,” as such term is defined
      in Rule 501 (a) of Regulation D under the Securities Act, and that Plaintiff
      is
      acquiring the New Notes and the Option and will, upon conversion or exercise
      thereof, as the case may be, acquire the Conversion Shares and the Option Shares
      issuable thereunder, for his own account for investment and not with a view
      to,
      or for sale in connection with, any distribution thereof, and with no present
      intention of distributing or selling the same in violation of the Securities
      Act, and the Plaintiff has no present or contemplated agreement, undertaking,
      arrangement, obligation, indebtedness or commitment providing for the
      disposition thereof in violation of the Securities Act. Plaintiff furthermore
      represents and warrants that the execution, delivery and performance of this
      Agreement, the acceptance of the New Notes and the Option, the conversion of
      the
      New Notes and the exercise of the Option, and the issuance to Plaintiff of
      the
      Conversion Shares and Option Shares will not (i) violate or conflict with,
      or
      result in a breach of any provision of, or constitute a default (or an event
      which, with notice or lapse of time or both, could become a default) under,
      or
      give to others any right of termination, amendment, acceleration, or
      cancellation with respect to, any agreement to which Plaintiff is party, (ii)
      result in the violation of any law, rule, regulation, order, judgment, or decree
      to which Plaintiff is subject, or (iii) require Plaintiff to obtain the consent
      or authorization of, or to notify, any court, governmental agency, regulatory
      agency, self-regulatory agency or any third party. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXECUTION
      COPY

     

    9.    Defendant
      NewGen hereby represents and warrants, in connection with its issuance of the
      New Notes and its grant of the Option as part of the consideration provided
      for
      by this Agreement, that: (i) such issuance and grant, and the issuance of the
      Conversion Shares upon conversion thereof and the Option Shares upon the
      exercise thereof, as applicable, have been duly authorized by all necessary
      corporate action on its part; (ii) the Conversion Shares and Option Shares,
      when
      issued upon conversion of the New Notes and exercise of the Option,
      respectively, and assuming the
      receipt
      of the conversion price and exercise price therefor
      (in the
      case of the New Notes, in the form of the cancellation of NewGen’s indebtedness
      thereunder) and the other documentation, if any, required to be delivered in
      connection with such conversion and exercise, as the case may be, will be duly
      and validly issued, fully paid and nonassessable; (iii) assuming the accuracy
      of
      the representations and warranties provided by Plaintiff in paragraph 8 above,
      such issuance and grant, and the issuance of the Conversion Shares upon
      conversion thereof and the Option Shares upon the exercise thereof, as the
      case
      may be, shall be exempt from the registration requirements of the Securities
      Act; (iv) the Conversion Shares and Option Shares shall not be subject to
      preemptive rights or other similar rights of the Company’s stockholders and will
      not impose personal liability upon the holder thereof; and (v) the execution,
      delivery and performance of this Agreement and the issuance of the New Notes,
      the grant of the Option and the issuance of the Conversion Shares (upon
      conversion of the New Notes) and the Option Shares (upon exercise of the Option)
      by the Company will not (A) conflict with, or result in a violation of, any
      provision of the Company’s Articles of Incorporation or By-Laws, as amended (B)
      violate or conflict with, or result in a breach of any provision of, or
      constitute a default (or an event which, with notice or lapse of time or both,
      could become a default) under, or give to others any right of termination,
      amendment, acceleration, or cancellation with respect to, any agreement or
      instrument to which NewGen is party (other than violations, conflicts, breaches
      or defaults which would not, either individually or in the aggregate, have
      a
      material adverse effect upon the Company or its assets), (C) result in the
      violation of any law, rule, regulation, order, judgment, or decree to which
      NewGen is subject (other than violations which would not, either individually
      or
      in the aggregate, have a material adverse effect upon the Company or its
      assets), or (D) require NewGen to obtain the consent or authorization of, or
      to
      notify, any court, governmental agency, regulatory agency, self-regulatory
      agency or any third party, except as contemplated by this Agreement or as
      required under the Securities Act or any applicable state securities laws.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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    10.    Plaintiff
      expressly agrees that he will pay any and all taxes due from his receipt of
      the
      consideration provided for under this Agreement. Plaintiff is solely responsible
      for any tax liabilities and consequences which may result from his receipt
      of
      the consideration provided for under this Agreement, and Plaintiff agrees
      Defendants shall bear absolutely no responsibility for such liabilities or
      consequences. Further, Plaintiff expressly agrees that Defendants shall not
      be
      required to pay any further sums to him, or to any other person or entity,
      if
      for any reason the tax liabilities and consequences to him are ultimately
      assessed in a fashion which he does not presently anticipate. 

     

    11.    Plaintiff
      agrees to execute an original of this Agreement, and further agrees to authorize
      his attorneys to execute a Stipulation of Dismissal with Prejudice, in the
      form
      attached hereto as Exhibit
      D,
      dismissing all claims in the Action. Defendants will file the Stipulation of
      Dismissal with Prejudice with the Court without further notice to Plaintiff
      no
      less than seven (7) days after this Agreement is executed by Plaintiff.
      Plaintiff expressly understands and agrees that Defendants will not be required
      to provide any of the consideration set forth in paragraph 6 above until
      Plaintiff executes and delivers to Defendants’ counsel a Stipulation of
      Dismissal with Prejudice, in the form attached hereto as Exhibit
      D
      and
      until all other contingencies set forth in paragraph 6 above are satisfied.
      

     

    12.    Plaintiff
      expressly understands and agrees that Defendants deny that they harmed him
      or
      treated him unlawfully, unfairly or discriminatorily in any way, and that
      Defendants have resolved his claim solely to avoid the costs of ongoing
      litigation. Neither this Agreement nor the implementation thereof shall be
      construed to be, or shall be, admissible in any proceeding as evidence of an
      admission by Defendants to any violation of, or failure to comply with, any
      federal, state or local law, statute, ordinance, agreement, rule, regulation,
      or
      order. The preceding sentence does not preclude introduction of this Agreement
      to establish that Plaintiff’s claims were resolved and released according to the
      terms of this Agreement or to establish any breach of this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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    13.    Plaintiff
      expressly warrants that he has not filed, or permitted to be filed, any
      complaints, charges or lawsuits against Defendants, except the Action. Plaintiff
      covenants and agrees that he will not seek any monetary or other recovery as
      a
      result of any claim brought directly or indirectly on his behalf in any court
      or
      other forum against Defendants arising out of any matter preceding the date
      he
      signs this Agreement. Likewise, Defendants will not seek any monetary or other
      recovery against Plaintiff in any court or other forum arising out of any matter
      preceding the date Defendants sign this Agreement. 

     

    14.    Plaintiff
      agrees that he will not disparage Defendants in any manner, and Defendants
      agree
      that they will not disparage Plaintiff in any manner. Any such disparagement
      by
      any such party will constitute a material breach of this Agreement entitling
      Plaintiff or Defendants (as the case may be) to all available remedies in law
      and equity. Moreover,
      Plaintiff and Defendants agree that the content of any press release to be
      issued by Plaintiff or Defendants with respect to this matter shall be mutually
      approved, provided that the party from whom approval is sought responds within
      twenty-four (24) hours of being provided a copy of the proposed press
      release.

     

    15.    In
      any
      action or proceeding to enforce the terms of this Agreement, the prevailing
      party shall be entitled to reasonable attorneys’ fees and costs incurred in such
      action. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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    16.    In
      any
      action or proceeding to enforce the terms of this Agreement, the parties agree
      that the terms of this Agreement will be governed by the laws of the State
      of
      North Carolina.

     

    17.    The
      Parties expressly warrant and agree that no promise or inducement has been
      offered except as set forth in this Agreement, that this is the complete
      Agreement, and that there is not any written or oral understanding or agreement
      between the parties that is not recited herein. This Agreement may not be
      altered or modified in any way except by a writing signed by Plaintiff and
      Defendants. 

     

    18.    Plaintiff
      expressly warrants, agrees and understands that he is waiving certain rights
      in
      exchange for valuable consideration to which he is not otherwise
      entitled.

     

    19.    Plaintiff
      swears that he has carefully read this Agreement, that he has been given up
      to
      twenty one (21) days to consider this Agreement, that he has herein been advised
      in writing to consult with his attorney and that his attorney has fully
      explained this Agreement to him. Plaintiff shall have seven (7) days from the
      date he executes this Agreement to revoke his consent hereto. Any revocation
      must be in writing and received by Cindy Schmitt Minniti, Esq. at Reed Smith
      LLP, 599 Lexington Avenue, 29th
      Floor,
      New York, New York 10022 within seven (7) days of the date this Agreement is
      executed by Plaintiff. Plaintiff understands and agrees that if he revokes
      his
      consent, he is not entitled to receive the consideration described in Paragraph
      “6” of this Agreement or any other consideration. If no such written revocation
      is received within seven (7) days of the execution of this Agreement as set
      forth above, this Agreement shall become effective on the eighth (8th)
      day
      following Plaintiff’s execution of this Agreement, provided that the
      contingencies set forth in this Agreement are satisfied. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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    20.    If
      any
      term, condition, clause or provision of this Agreement is determined by a court
      of competent jurisdiction to be void or invalid, for any reason, then only
      that
      term, condition, clause, or provision as is determined to be void or invalid
      shall be stricken from this Agreement, and this Agreement shall remain in full
      force and effect in all other respects.

     

    21.    Plaintiff
      and Defendants hereby agree that each party has reviewed and provided input
      into
      this Agreement and that any rule of construction to the effect that ambiguities
      are to be resolved against the drafting party shall not apply to any
      interpretation of this Agreement. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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    21. This
      Agreement may be executed in counterparts. 

     

    IN
      WITNESS WHEREOF,
      the
      Parties, intending to be legally bound, have executed this Agreement as of
      the
      date set forth below. 

     

     

     

    
      	/s/ John King	 	NEWGEN TECHNOLOGIES, INC.
	JOHN KING  	 	 
	 	 	 
	 	 	By:  /s/ S. Bruce
              Warner
	 	 	
              Name:
                S. Bruce Warner

              Title:

            
	 	 	 
	Sworn to and subscribed before
              me  	 	Sworn
              to and subscribed before me
	this 22nd day of August 2006.	 	this 22nd day of August 2006.
	 	 	 
	/s/ C. Christopher Muth	 	/s/ Elizabeth A. Rykiel
	NOTARY PUBLIC	 	NOTARY PUBLIC 
	 	 	 
	 	 	 
	 	 	 
	 	 	REFUEL AMERICA, INC.
	 	 	 
	 	 	By:  /s/ S. Bruce
              Warner
	 	 	
              Name:
                S. Bruce Warner

              Title:

            
	 	 	 
	 	 	Sworn to and subscribed before
              me
	 	 	this 22nd day of August 2006.
	 	 	 
	 	 	/s/ Elizabeth A. Rykiel
	 	 	
              NOTARY
                PUBLIC

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