Document:

Unassociated Document

    EXECUTION
COPY

     

    NON-COMPETITION
AGREEMENT

     

    This
NON-COMPETITION AGREEMENT (this “Agreement”) is dated
as of December 23, 2010, by and among Dr. Ryuji Ueno, as trustee of the Ryuji
Ueno Revocable Trust under Trust Agreement dated December 20, 2002 (the “Ueno Trust”), and Dr.
Sachiko Kuno as trustee of the Sachiko Kuno Revocable Trust under Trust
Agreement dated December 20, 2002 (the “Kuno Trust”) (each a
“Shareholder”
and collectively, the “Shareholders”), Dr.
Ryuji Ueno, an individual (“Ueno”), and Dr.
Sachiko Kuno, an individual (“Kuno” and
collectively with Ueno, the “Principals” and
together with the Shareholders, each a “Seller” and
collectively, the “Sellers”), and
Ambrent Investments S.à r.l., a company organized
under the laws of Luxembourg (the “Purchaser”), and Sucampo
Pharmaceuticals, Inc., a Delaware corporation (the “Parent”).  Any
capitalized terms used but not defined in this Agreement have the respective
meanings set forth in the SPA (as defined below).

     

    RECITALS

     

    WHEREAS,
the Shareholders are the owners of 100% of the issued and outstanding shares of
capital stock of Sucampo AG (the “Shares”), a company
organized under the laws of Switzerland (the “Company”);

     

    WHEREAS,
the Company is the owner of 100% of the issued and outstanding shares of capital
stock of Sucampo AG Japan Ltd., a company organized under the laws of Japan (the
“Subsidiary”).

     

    WHEREAS,
the Parent is the owner of 100% of the issued and outstanding shares of capital
stock of the Purchaser.

     

    WHEREAS,  the
Sellers, on the one hand, and the Purchaser and the Parent, on the other hand,
have entered into a Stock Purchase Agreement, dated as of the date hereof (the
“SPA”),
pursuant to which the Shares will be purchased by the Purchaser;
and

     

    WHEREAS,
in order to induce the Purchaser and the Parent to enter into the SPA and to
minimize the risk that the Purchaser and/or the Parent will lose the benefit of
the goodwill and the Shares being purchased by it and/or them, and to protect
the trade secrets and other confidential and proprietary information known to
the Sellers and being acquired by the Purchaser and the Parent, the Sellers have
agreed to restrict their activities in accordance with the terms and conditions
of this Agreement.

     

    NOW,
THEREFORE, in consideration of the promises, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereby agree as follows:

     

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    AGREEMENT

    1.           Covenant
Not To Compete.

     

    (a)           For
the period beginning on the Closing and ending five (5) years thereafter (the
“Non-Compete
Period”), the Sellers shall not, directly or indirectly, including
without limitation as an officer, director, proprietor, employee, independent
contractor, partner, member, investor, guarantor, consultant, advisor, agent,
sales representative or other participant, engage in or assist with any
Competitive Activity (as defined in Section 1(b), below) in any country in the
World in which the Sellers, the Company, and/or the Subsidiary, during the
immediately prior 3-year period, has been or at the time of the Closing is,
engaged.  The Sellers understand the foregoing restrictions may limit
their respective abilities to engage in certain business during the Non-Compete
Period; however, they also acknowledge and agree that they will receive
sufficiently high remuneration and other benefits under the SPA to justify these
restrictions.

     

    (b)           For
purposes of this Agreement, “Competitive Activity”
shall mean: (i) the research, development and/or commercialization of medicines
based on Prostones or drug therapy that have been, are, could be or will be
developed from any idea, invention or innovation relating to Prostones or from
any intellectual property owned by or held by the Company or the Subsidiary; and
(ii) the creation or development of, application for, ownership or holding of,
protection of, and/or licensing of patents and/or patent applications relating
to Prostone technology and/or patents or relating to other similar drug therapy
that have been, are, could be or will be developed from any intellectual
property owned by or held by the Company or the Subsidiary.  The
definition of Competitive Activity shall not include any currently ongoing
unpaid scientific and/or clinical advice provided by the Principals on behalf of
R-Tech Ueno in connection with the development or marketing of
Rescula.  Should the Principals seek an exception to the definition of
Competitive Activity for any currently ongoing paid or unpaid scientific and/or
clinical advice provided by the Principals on behalf of R-Tech Ueno or for other
services related to Rescula provided by the Principals on behalf of R-Tech Ueno,
whether paid or unpaid (such as membership on a Board of Directors or speaking
engagements at medical conferences), the Principals must follow the policies and
procedures for review, approval or ratification of such activities as set forth
in Section 2 of the Sucampo Pharmaceuticals, Inc. Related Person Transactions
Policy, which is attached hereto as Exhibit A, prior to engaging
in such activities and/or receiving such compensation.  The Company
shall issue a determination regarding whether any request for an exception is
granted.  The Company’s decision on any such request shall be made in
the Company’s sole discretion, but approval of the request shall not be
unreasonably withheld.

     

    (c)           Nothing
in Section 1(a) shall be construed so as to preclude Sellers from (i) investing
in any publicly or privately held company provided that such Seller’s beneficial
ownership or rights to ownership of any class of such company’s securities does
not exceed 5% of the outstanding securities of such class or (ii) owning,
managing or participating in R-Tech Ueno; provided, however, that the Sellers
may not engage in Competitive Activity as a result of their ownership,
management or participation in said entity.

     

    2.           Non-Solicitation.

     

    (a)           Employees/Contractors/Consultants.
During the Non-Compete Period, the Sellers shall not directly or indirectly
induce, solicit, recruit, or encourage or attempt to induce, solicit, recruit,
or encourage (regardless of who initiates the contact) any person then employed
or retained by the Purchaser, the Parent or an affiliate or any person employed
or retained by the Purchaser, the Parent or an affiliate within the prior year,
whether as an officer, employee, independent contractor, consultant or advisor,
to leave such employment or retention of the Purchaser, the Parent or an
affiliate, to cease providing or to otherwise alter the services then provided
to the Purchaser, the Parent or to an affiliate.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (b)           Customers/Suppliers,
Distributors/Licensees.  During the Non-Compete Period, the
Sellers shall not, directly or indirectly, induce, solicit, encourage, or
attempt to induce, solicit or encourage (regardless of who initiates the
contact) any customer, supplier, distributor, licensee or any other person or
entity who maintains a business relationship with the Purchaser, the Parent, the
Sellers, the Company, or the Subsidiary to stop or alter the manner in which
they are then doing business with the Purchaser, the Parent, the Sellers, the
Company, or the Subsidiary.

     

    3.           Separate
Covenants.  The terms and provisions of the covenants contained
in Sections 1 and 2 above are intended to be separate and divisible provisions
and if, for any reason, any one or more of the sections or subsections are held
to be invalid or unenforceable, the validity or the enforceability of any other
provision of this Agreement shall not thereby be affected.  If, in any
judicial proceeding, a court shall refuse to enforce any of the separate
covenants (or any part thereof) contained in Sections 1 or 2 then such
unenforceable covenants (or any such part) shall be deemed eliminated from this
Agreement for the purpose of those proceedings to the extent necessary to permit
the remaining separate covenants (or portions thereof) to be
enforced.

     

    (a)           Reformation.  Each
party hereto acknowledges that the potential restrictions on the Sellers’ future
activities imposed by the covenants in Sections 1 and 2 are reasonable in both
duration and scope and in all other respects.  In the event that the
provisions of Sections 1 or 2 should ever be deemed to exceed the duration or
scope permitted by applicable law, then such provisions shall be reformed to the
maximum time, scope or other limitation, as the case may be, permitted by
applicable law, and each party agrees that the restrictions and prohibitions
contained herein shall be effective to the fullest extent allowed under
applicable law in such jurisdiction.

     

    (b)           Specific
Performance.  The Sellers acknowledge that it would be
impossible to determine the amount of damages that would result from any breach
of any of the provisions of Sections 1 or 2 and that the remedy at law for any
breach, or threatened breach, of any of such provisions would likely be
inadequate and, accordingly, agrees that the Purchaser and/or the Parent shall,
in addition to any other rights or remedies which it and/or they may have at law
or in equity, be entitled to seek such equitable and injunctive relief as may be
available from any court of competent jurisdiction to restrain the Sellers from
violating any of such provisions of this Agreement.  In connection
with any action or proceeding for such equitable or injunctive relief, the
Sellers hereby waive any claim or defense that a remedy at law alone is adequate
and agree, to the maximum extent permitted by law, to have each such provision
of Sections 1 and 2 specifically enforced against them, without the necessity of
posting bond or other security, and consent to the entry of equitable or
injunctive relief against them enjoining or restraining any breach or threatened
breach of any of the provisions of Sections 1 or 2.

     

    (c)           Survival.  Any
breach of this Agreement by either or all of the Sellers, the Purchaser or the
Parent shall have no effect on the continuing operation of Sections 1 or
2.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    4.           Miscellaneous.

     

    (a)           Amendment;
Waiver.  This Agreement shall not be amended, altered or
modified in any manner whatsoever, except by a written instrument executed by
the parties hereto.  No waiver of any breach or default hereunder
shall be considered valid unless in writing and signed by the party giving such
waiver, and no such waiver shall be deemed a waiver of any subsequent breach of
the same or similar nature.

     

    (b)           Governing
Law.  The interpretation and construction of this Agreement,
and all matters relating hereto, will be governed by the laws of the State of
Maryland applicable to contracts made and to be performed entirely within the
State of Maryland without giving effect to any conflict of law provisions
thereof.

     

    (c)           Jurisdiction.  Any
legal action or proceeding with respect to this Agreement may be brought in the
courts of the State of Maryland in Montgomery County or of the United States
District Court for the District of Maryland and, by execution and delivery of
this Agreement, each of the Sellers, the Purchaser and the Parent hereby accept
for themselves and in respect of their property, generally and unconditionally,
the jurisdiction of the aforesaid courts.  Each of the Sellers, the
Purchaser and the Parent irrevocably consent to the service of process out of
any of the aforementioned courts in any such action or proceeding by the
delivery of notice as provided in Section 4(d) below, such service to become
effective thirty (30) days after such delivery.

     

    (d)           Notices.  Any
notice or other communication required or permitted under this Agreement shall
be in writing and shall be deemed to have been given (i) if personally
delivered, when so delivered, (ii) if mailed, one week after having been placed
in the United States mail, registered or certified, postage prepaid, addressed
to the party to whom it is directed at the address listed below or (iii) if
given by facsimile, when the notice is transmitted to the facsimile number
specified below, and the appropriate answerback or telephonic confirmation is
received:

     

    
      	
               
      

            	
              If
      to the Shareholders:

            	Ryuji Ueno Revocable Trust/Sachiko Kuno Revocable
      Trust

    

     24687 Yacht Club Road

    St. Michaels, MD 20854

    

    
      	
               
      

            	
              with
      a copy to:

            	
              Dorsey
      & Whitney LLP

            

    

    Suite 1500, 50 South Sixth
Street

    Minneapolis, MN
55402-1498

    Attention: William Berens,
Esq.

    Tel: 612.340.2621

    Fax: 612.340.8827

    

    
      	 	
              If
      to the Principals:

            	
              Dr.
      Ryuji Ueno/Dr. Sachiko Kuno

            

    

    7501 Wisconsin Avenue, Suite
600

    Bethesda, MD 20814

    Tel: (301) 941-8111

    Fax: (301) 961-3076

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	 	
              with
      a copy to: 

            	
              McGuireWoods
      LLP

              2001 K Street, N.W., Suite 400

              Washington, DC 20006-1040

              Attention: Douglas W. Charnas,
Esq.

              Tel: (202) 857-1757

              Fax: (202)
  828-2980 

            

    

     

    
      	 	
              
                If
      to Purchaser or Parent:

              

            	
              

                Sucampo
      Pharmaceuticals, Inc.

                4520
      East West Highway, Third Floor

                Bethesda, MD 20814

                Attention:
      Thomas J. Knapp, Esq., General Counsel

                Tel:
      (240) 223-3627

                Fax:
      (301) 961-3440

              

            

    

     

    
      	 	with
      a copy to 	

              Manatt,
      Phelps & Phillips, LLP

              11355 W. Olympic
      Boulevard

              Los Angeles,
      CA  90064

              Attention: Gordon M. Bava,
      Esq.

                                
      David M. Grinberg, Esq.

              Tel:  (310)
      312-4000

              Fax: (310)
      312-4224

            

    

     

    (e)           Entire
Agreement.  This Agreement and the Stock Purchase Agreement,
including the Exhibits, Schedules, the Disclosure Schedule and other documents
referred to therein, constitute the entire agreement of the parties hereto with
reference to the transactions contemplated hereby and supersede all other prior
agreements, understandings, representations and warranties, both written and
oral, between the parties or their respective representatives, agents or
attorneys, with respect to the subject matter hereof.

     

    (f)           Parties
In Interest.  This Agreement shall be binding upon and inure
solely to the benefit of each party hereto and their respective successors,
assigns, estate, heirs, executors, administrators and other legal
representatives, as the case may be.  Nothing in this Agreement,
express or implied, is intended to confer upon any other person or entity, other
than parties hereto and their respective successors, assigns, estate, heirs,
executors, administrators and other legal representatives, as the case may be,
any rights, remedies, obligations or liabilities under or by reason of this
Agreement.

     

    (g)           Assignment.  This
Agreement shall not be assignable by law or otherwise without the prior written
consent of the other parties hereto; provided, however, that the
Purchaser and/or the Parent may assign any of its and/or their rights and
obligations hereunder to any of its and/or their affiliates or to any other
entity which may acquire all or substantially all of the assets, shares or
business of the Purchaser, the Parent or any of its and/or their affiliates or
any entity with or into which the Purchaser, the Parent or any of its and/or
their affiliates may be consolidated or merged.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (h)           Compliance.  The
Purchaser’s and /or the Parent’s failure to insist upon strict compliance with
any provision of this Agreement or the failure to assert any right that the
Purchaser and/or the Parent may have hereunder shall not be deemed to be waiver
of such provision or right or any other provision or right of this
Agreement.

     

    (i)           
Advice of
Counsel.  Each of the Sellers acknowledges that, in executing
this agreement, he, she or it has had the opportunity to seek the advice of
independent legal counsel, and has read and understood all of the terms and
provisions of this Agreement.  This Agreement shall not be construed
against any party by reason of the drafting or preparation hereof.

     

    (j)           
Headings.  The
section headings herein are for convenience of reference only, do not constitute
part of this Agreement and shall not be deemed to limit or otherwise affect any
of the provisions hereof.

     

    (k)           Severable
Provisions.  The provisions of this Agreement are separate and
distinct, and if any provisions are determined to be unenforceable, in whole or
in part, the remaining provisions, and the enforceable parts of any partially
unenforceable provisions, shall nevertheless be enforceable.

     

    (l)           
Counterparts.  This
Agreement may be executed in one or more counterparts (including by facsimile),
each of which shall be deemed to be an original, but all of which shall
constitute one and the same instrument.

     

    [remainder of page intentionally left
blank; signature page(s) follow]

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first
written above.

     

    
      
        	
                “SELLERS”

              	 
      	
                “PURCHASER”

              
	 
      	 
      	 
      
	
                RYUJI
      UENO REVOCABLE TRUST UNDER 
TRUST AGREEMENT DATED DECEMBER 20,
      2002

              	 
      	
                AMBRENT
      INVESTMENTS S.À R.L., a 
Luxembourg company

              
	 
      	 
      	 
      	 
      	 
      
	
                By: 

              	/s/
      Ryuji Ueno	 
      	
                By: 

              	/s/
      James J. Egan
	 
      	
                Name:
      Ryuji Ueno

              	 
      	 
      	
                Name:  James
      J. Egan

              
	 
      	
                Title:
      Trustee

              	 
      	 
      	
                Title:  Authorized
      Person

              
	 
      	 
      	 
      	 
      	 
      
	
                SACHIKO
      KUNO REVOCABLE TRUST UNDER 
TRUST AGREEMENT DATED DECEMBER 20,
      2002

              	 
      	
                “PARENT”

              
	 
      	 
      	 
      	 
      
	
                By:

              	
                 

                /s/Sachiko
      Kuno

              	 
      	
                SUCAMPO
      PHARMACEUTICALS, INC., 
a Delaware corporation

              
	 
      	
                Name:
      Sachiko Kuno

              	 
      	 
      	 
      
	 
      	
                Title:
      Trustee

              	 
      	 
      	 
      
	 
      	 
      	 
      	
                By:

              	/s/
      James J. Egan
	
                /s/
      DR. RYUJI UENO

              	 
      	 
      	
                Name:  James
      J. Egan

              
	
                DR.
      RYUJI UENO

              	 
      	 
      	
                Title:  Chief
      Operating Officer

              
	 
      	 
      	 
      	 
      
	
                /s/
      DR. SACHIKO KUNO

              	 
      	 
      	 
      
	
                DR.
      SACHIKO KUNO

              	 
      	 
      	 
      

      

    

    
      
         

      

      
        710.3

            	
              FINAL
      DEFINITIVE AGREEMENT

            

    

     

    AGREEMENT
AND PLAN OF MERGER dated as of this  3rd day of
December, 2010, and effective as of December 10, 2010 (the "Agreement") among
Exergetic Energy, Inc. , a Michigan corporation ("Exergetic Energy"),
SPECIALIZED SERVICES, INC., a Michigan corporation ("SSI") and the individual
shareholders of SSI listed in Exhibit A hereof (collectively the
"Shareholders").

     

    Whereas,
EXERGETIC ENERGY wishes to acquire and the Shareholders wish to transfer said
the shares listed in Exhibit A, in a transaction intended to qualify as a
reorganization within the meaning of Section 368(a)(1)(B) of the Internal
Revenue Code of 1986, as amended.

     

    Now,
therefore, Exergetic Energy, SSI and the Shareholders adopt this agreement and
plan of merger and agree as follows:

     

    1.
PURCHASE OF STOCK

     

    The
Shareholders are the legal and beneficial owner of 360,600 shares (the
“Shareholders Shares”) representing (76%) in the capital stock of Specialized
Services Incorporated (the “Corporation”);

    

    (1)
Exergetic Energy will make payments to SSI’s accountant to bring the
Corporation’s filing up to date.  The purchase premium ($21,000) will
be paid to the Shareholders within ninety days of closing.

    

    (2) The
purchase has been exercised by the Exergetic Energy, Inc. in whole as of the
time from the completion of  SEC filings to make SSI current under SEC
regulations and the date hereof. A Promissory Note for the remaining balance has
been issued and incorporated in accordance with the terms in the Promissory Note
hereto attached.

    

    (3)
Pre-Transfer Accounting and Corporate Organization.  Prior to share
transfer, the business developed independently of the Joint Venture by SSI and
all non-energy business shall be transferred into an independent division
retained by Shareholders after the transfer.   The Shareholders
has the right to structure and require that the Exergetic facilitate a public
offering of Shareholders operating division through a stock dividend
transaction.

    

    
      	
              1.1.

            	
              NUMBER
      OF SHARES. EXERGETIC agrees to issue to SSI at the Closing (defined below)
      the 360,600 shares of common stock of EXERGETIC ENERGY, $.0001 par value
      per share (the "Shareholder Shares"), shown in Exhibit A
      and  EXERGETIC ENERGY will be issued an aggregate of 1,750,000
      shares of voting common stock of SSI, $.0001 par value per share ("SSI
      Shares"), which shall equal (79%) percent of the total number of SSI
      Shares to be issued and outstanding following this Agreement and
      transaction expenses for an aggregate Purchase Price of $185,250.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
 

    Of the
1,750,000 shares 750,000 will be held with the Transfer Agent until payment of
the Promissory Note in the amount of $143,500 upon and subject to
the following terms and conditions:

    
 

    1.2.
EXCHANGE OF CERTIFICATES. Each Shareholder owning shares of common stock SSI
shall surrender such certificate(s) for cancellation to EXERGETIC ENERGY, and
shall receive in aggregate the same number of newly issued shares of EXERGETIC
ENERGY the successor reporting company. The exchange of SSI Shares by the
Shareholders to EXERGETIC ENERGY shares shall be effected by the delivery to
EXERGETIC ENERGY at the Closing of certificates representing the SSI
Shares.

    
 

    1.3.
FRACTIONAL SHARES. Intentionally left blank.

    
 

    1.4.
FURTHER ASSURANCES. At the Closing and from time to time thereafter, the
Shareholders shall execute such additional instruments and take such other
action as EXERGETIC ENERGY may request in order more effectively to sell,
transfer, and assign the transferred stock to EXERGETIC ENERGY and to confirm
EXERGETIC ENERGY's title thereto.

    

    2. RATIO
OF EXCHANGE.

    Intentionally
left Blank.

    

    3.
CLOSING.

    3.1. TIME
AND PLACE. The Closing contemplated herein shall be held as soon as possible at
the offices of Exergetic Energy unless another place or time is agreed upon in
writing by the parties without requiring the meeting of the parties hereof. All
proceedings to be taken and all documents to be executed at the Closing shall be
deemed to have been taken, delivered and executed simultaneously, and no
proceeding shall be deemed taken nor documents deemed executed or delivered
until all have been taken, delivered and executed. The date of Closing may be
accelerated or extended by the written agreement of the parties.

    

    3.2. FORM
OF DOCUMENTS. Any copy, facsimile telecommunication or other reliable
reproduction of the writing or transmission required by this Agreement or any
signature required thereon may be used in lieu of an original writing or
transmission or signature for any and all purposes for which the original could
be used, provided that such copy, facsimile telecommunication or other
reproduction shall be a complete reproduction of the entire original writing or
transmission or original signature.

    

    4.
Intentionally left blank.

    

    5.
REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS

    The
Shareholders, individually and separately, represent and warrant as
follows:

    

    5.1.
TITLE TO SHARES. The Shareholders, and each of them, are the owners, free and
clear of any liens and encumbrances, of the number of SSI Shares which are
listed in the attached schedule A and which they have contracted to
exchange.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    5.2.
LITIGATION. There is no litigation or proceeding pending, or to any
Shareholder's knowledge threatened, against or relating to the SSI Shares held
by the Shareholders.

    
 

    6.
REPRESENTATIONS AND WARRANTIES OF SSI.

    SSI
represents and warrants that:

    

    6.1.
CORPORATE ORGANIZATION AND GOOD STANDING. SSI is a corporation duly organized,
validly existing, and in good standing under the laws of the State of Michigan
and is qualified to do business as a foreign corporation in each jurisdiction,
if any, in which its property or business requires such
qualification.

    

    6.2.
REPORTING COMPANY STATUS. SSI has filed with the Securities and Exchange
Commission ("SEC") a registration statement on Form 10-SB which became effective
on March 27, 2001 pursuant to the Securities Exchange Act of 1934 (the "Exchange
Act") and is a reporting company pursuant to Section12(g)
thereunder.

    

    6.3.
CAPITALIZATION. The authorized capital stock of SSI consists of 100,000,000
shares of Common Stock, $.0001 par value per share and 10,000,000 shares of
preferred stock ("SSI Shares"), of which 473,341 SSI Common Shares are issued
and outstanding and 360,600 are owned of record and beneficially by the
Shareholders listed on Exhibit A hereto.

    

    6.5.
ISSUED STOCK. All the outstanding SSI Shares are duly authorized and validly
issued, fully paid and non-assessable.

    

    6.6.
STOCK RIGHTS. Except as set out by schedule attached hereto, there are no stock
grants, options, rights, warrants or other rights to purchase or obtain SSI
Shares or any preferred stock issued or committed to be issued. The parties
agree that no options have been granted under any Stock Option Plan nor will any
be granted without the prior agreement of the parties hereto.

    

    6.7.
CORPORATE AUTHORITY. SSI has all requisite corporate power and authority to own,
operate and lease its properties, to carry on its business as it is now being
conducted and to execute, deliver, perform and conclude the transactions
contemplated by this Agreement and all other agreements and instruments related
to this Agreement.

    

    6.8.
AUTHORIZATION. Execution of this Agreement has been duly authorized and approved
by SSI’s board of directors.

     

    6.9.
SUBSIDIARIES. SSI has no subsidiaries except the one to be newly formed per this
agreement.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
    

    6.10.
FINANCIAL STATEMENTS. The financial statements of SSI dated as of September 30,
2010, which are part of the Form 10-QSB quarterly report of SSI for its period
ended September 30, 2010, which report has been filed with the SEC on December
7, 2010 (the "SSI Financial Statements"), fairly present the financial condition
of SSI as of the date therein in conformity with generally accepted accounting
principles consistently applied.

    

    6.11.
ABSENCE OF UNDISCLOSED LIABILITIES. Except to the extent reflected or reserved
against in the SSI Financial Statements, SSI did not have at that date any
liabilities or obligations (secured, unsecured, contingent, or otherwise) of a
nature customarily reflected in a corporate balance sheet prepared in accordance
with generally accepted accounting principles.

    

    6.12. NO
MATERIAL CHANGES. Except as set out by attached schedule, there has been no
material adverse change in the business, properties, or financial condition of
SSI since the date of the SSI Financial Statements.

    

    6.13.
LITIGATION. Except as set out by attached schedule, there is not, to the
knowledge of SSI, any pending, threatened, or existing litigation, bankruptcy,
criminal, civil, or regulatory proceeding or investigation, threatened or
contemplated against SSI..

    

    6.14.
CONTRACTS. Except as set out by attached schedule, SSI is not a party to any
material contract not in the ordinary course of business that is to be performed
in whole or in part at or after the date of this Agreement.

    

    6.15.
TITLE. Except as set out by attached schedule, SSI has good and marketable title
to all the real property and good and valid title to all other property included
in the SSI Financial Statements. Except as set out in the balance sheet thereof,
the properties of SSI are not subject to any mortgage, encumbrance, or lien of
any kind except minor encumbrances that do not materially interfere with the use
of the property in the conduct of the business of SSI.

    

    6.16. NO
VIOLATION. The Closing will not constitute or result in a breach or default
under any provision of any charter, bylaw, indenture, mortgage, lease, or
agreement, or any order, judgment, decree, law, or regulation to which any
property of SSI is subject or by which SSI is bound.

    

    7.
REPRESENTATIONS AND WARRANTIES OF EXERGETIC ENERGY.

    Exergetic
Energy represents and warrants that:

    

    7.1.
CORPORATE ORGANIZATION AND GOOD STANDING. Exergetic Energy is a corporation duly
organized, validly existing, and in good standing under the laws of the State of
Michigan and is qualified to do business as a foreign corporation in each
jurisdiction, if any, in which its property or business requires such
qualification.

    

    7.2.
CAPITALIZATION. Exergetic Energy's authorized capital stock consists of
25,000,000 shares of Common Stock, $.0001 par value per share (“Exergetic Energy
Shares”), of which 10,000,000 Exergetic Energy Shares have been issued and are
outstanding.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    7.3.
ISSUED STOCK. All the outstanding Exergetic Energy Shares are duly authorized
and validly issued, fully paid and non-assessable.

    

    7.4.
STOCK RIGHTS. Except as set out by attached schedule, there is no stock grants,
options, rights, warrants or other rights to purchase or obtain Exergetic Energy
Shares nor are any Exergetic Energy Shares committed to be issued except under
this Agreement.

    

    7.5.
CORPORATE AUTHORITY. Exergetic Energy has all requisite corporate power and
authority to own, operate and lease its properties, to carry on its business as
it is now being conducted and to execute, deliver, perform and conclude the
transactions contemplated by this Agreement and all other agreements and
instruments related to this Agreement.

    

    7.6.
AUTHORIZATION. Execution of this Agreement has been duly authorized and approved
by Exergetic Energy's board of directors.

    

    7.7.
SUBSIDIARIES. Exergetic Energy has no wholly owned active and/or inactive
subsidiaries, except as disclosed to Exergetic Energy and Shareholders in
writing.

    

    7.8.
FINANCIAL STATEMENTS. Exergetic Energy's financial statements dated as of
September 30, 2010, copies of which will have been delivered by Exergetic Energy
to SSI prior to the Closing Date, shall be audited by independent public
accountants according the requirements of Regulation S-X promulgated by the SEC,
and shall fairly present the financial condition of Exergetic Energy as of the
date therein and the results of its operations for the periods then ended in
conformity with generally accepted accounting principles consistently applied
(the "Exergetic Energy Financial Statements").

    

    7.9.
ABSENCE OF UNDISCLOSED LIABILITIES. Except to the extent reflected or reserved
against in the Exergetic Energy Financial Statements, Exergetic Energy did not
have at that date any liabilities or obligations (secured, unsecured,
contingent, or otherwise) of a nature customarily reflected in a corporate
balance sheet prepared in accordance with generally accepted accounting
principles.

    

    7.10. NO
MATERIAL CHANGES. Except as set out by attached schedule, there has been no
material adverse change in the business, properties, or financial condition of
Exergetic Energy since the date of the Exergetic Energy Financial
Statements.

    

    7.11.
LITIGATION. Except as set out by attached schedule, there is not, to the
knowledge of Exergetic Energy, any pending, threatened, or existing litigation,
bankruptcy, criminal, civil, or regulatory proceeding or investigation,
threatened or contemplated against Exergetic Energy.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
 

    7.12.
CONTRACTS. Except as set out by attached schedule, Exergetic Energy is not a
party to any material contract not in the ordinary course of business that is to
be performed in whole or in part at or after the date of this Agreement, other
than as provided under this Agreement.

    

    7.13.
TITLE. Except as set out by attached schedule, Exergetic Energy has good and
marketable title to all the real property and good and valid title to all other
property included in the Exergetic Energy Financial Statements. Except as set
out in the balance sheet thereof, the properties of Exergetic Energy are not
subject to any mortgage, encumbrance, or lien of any kind except minor
encumbrances that do not materially interfere with the use of the property in
the conduct of the business of Exergetic Energy.

    

    7.14. TAX
RETURNS. Except as set out by attached schedule, all required tax returns for
federal, state, county, municipal, local, foreign and other taxes and
assessments have been properly prepared and filed by Exergetic Energy for all
years for which such returns are due unless an extension for filing any such
return has been filed. Any and all federal, state, county, municipal, local,
foreign and other taxes and assessments, including any and all interest,
penalties and additions imposed with respect to such amounts have been paid or
provided for. The provisions for federal and state taxes reflected in the
Exergetic Energy Financial Statements are adequate to cover any such taxes that
may be assessed against Exergetic Energy in respect of its business and its
operations during the periods covered by the Exergetic Energy Financial
Statements and all prior periods.

    

    7.15. NO
VIOLATION. The Closing will not constitute or result in a breach or default
under any provision of any charter, bylaw, indenture, mortgage, lease, or
agreement, or any order, judgment, decree, law, or regulation to which any
property of Exergetic Energy is subject or by which Exergetic Energy is
bound.

    

    8.
CONDUCT PENDING THE CLOSING

    Exergetic
Energy, SSI and the Shareholders covenant that between the date of this
Agreement and the Closing as to each of them:

    

    8.1. No
change will be made in the charter documents, by-laws, or other corporate
documents of SSI.

    

    8.2. SSI
will use its best efforts to maintain and preserve its business organization,
employee relationships, and goodwill intact, and will not enter into any
material commitment except in the ordinary course of business.

    

    8.3 SSI
shall have prepared and delivered to the Shareholders and Exergetic Energy the
SSI Financial Statements.

    

    8.4. None
of the Shareholders listed in exhibit A will sell, transfer, assign,
hypothecate, lien, or otherwise dispose or encumber the SSI shares of common
stock owned by them.

    

    9.
CONDITIONS PRECEDENT TO OBLIGATION OF THE SHAREHOLDERS

    The
Shareholder's obligation to consummate this exchange shall be subject to
fulfillment on or before the Closing of each of the following conditions, unless
waived in writing by the Shareholders as appropriate:

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    9.1.
EXERGETIC ENERGY'S REPRESENTATIONS AND WARRANTIES. The representations and
warranties of Exergetic Energy set forth herein shall be true and correct at the
Closing as though made at and as of that date, except as affected by
transactions contemplated hereby.

    

    9.2.
EXERGETIC ENERGY'S COVENANTS. Exergetic Energy shall have performed all
covenants required by this Agreement to be performed by it on or before the
Closing.

    

    9.3.
BOARD OF DIRECTOR APPROVAL. This Agreement shall have been approved by the Board
of Directors of Exergetic Energy.

    

    9.4.
SUPPORTING DOCUMENTS OF EXERGETIC ENERGY. Exergetic Energy shall have delivered
to the Shareholders supporting documents in form and substance reasonably
satisfactory to the Shareholders, to the effect that:

    

    (a) A
good standing certificate from the jurisdiction of Exergetic Energy's state of
organization stating that Exergetic Energy is a corporation duly organized,
validly existing, and in good standing;

    (b)
Secretary's certificate stating that Exergetic Energy is authorized capital
stock is as set forth herein;

    (c)
Certified copies of the resolutions of the board of directors of Exergetic
Energy authorizing the execution of this Agreement and the consummation
hereof;

    (d)
Secretary's certificate of incumbency of the officers and directors of Exergetic
Energy;

    (e)
Exergetic Energy's Financial Statements; and

    (f) Any
document as may be specified herein or required to satisfy the conditions,
representations and warranties enumerated elsewhere herein.

    

    10.
CONDITIONS PRECEDENT TO OBLIGATION OF SSI

    SSI's
obligation to consummate this exchange shall be subject to fulfillment on or
before the Closing of each of the following conditions, unless waived in writing
by SSI:

    

    10.1.
SHAREHOLDERS' REPRESENTATIONS AND WARRANTIES. The representations and warranties
of the Shareholders set forth herein shall be true and correct at the Closing as
though made at and as of that date, except as affected by transactions
contemplated hereby.

    

    10.2.
SHAREHOLDERS' COVENANTS. The Shareholders shall have performed all covenants
required by this Agreement to be performed by them on or before the
Closing.

    

    10.3.
SSI'S REPRESENTATIONS AND WARRANTIES. The representations and warranties of SSI
set forth herein shall be true and correct at the Closing as though made at and
as of that date, except as affected by transactions contemplated
hereby.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    10.4.
SSI'S COVENANTS. SSI shall have performed all covenants required by this
Agreement to be performed by them on or before the Closing.

    

    10.5.
BOARD OF DIRECTOR APPROVAL. This Agreement shall have been approved by the Board
of Directors of SSI.

    

    10.6.
SUPPORTING DOCUMENTS OF SSI. SSI shall have delivered to SSI supporting
documents in form and substance reasonably satisfactory to SSI, to the effect
that:

    (a) A
certificate from the jurisdiction of SSI’s state of organization stating that
SSI is a corporation duly organized, validly existing;

    (b)
Secretary's certificate stating that SSI is authorized capital stock is as set
forth herein;

    (c)
Copies of the resolutions of the board of directors of SSI authorizing the
execution of this Agreement and the consummation hereof;

    (d)
Secretary's certificate of incumbency of the officers and directors of
SSI;

    (e) SSI's
Financial Statements; and

    (f) Any
document as may be specified herein or required to satisfy the conditions,
representations and warranties enumerated elsewhere herein.

    

    11.
POST-CLOSING CONDUCT AND COVENANTS.

    For the
period of two years following the Closing:

    (a)
Exergetic Energy shall take all reasonable efforts and action necessary for
Exergetic Energy to be current under the reporting requirements of the Exchange
Act and for Exergetic Energy Shares to remain subject to quotation on the OTC:BB
or other national exchanges;

    (b)
Exergetic Energy will take no action to terminate its registration under Section
12 the Exchange Act;

    (c)
Exergetic Energy shall utilize the services of a recognized stock transfer agent
and shall execute and deliver all necessary and proper documentation to effect
in an expeditious manner the transfer of the Exergetic Energy Shares subject to
the requirements of the Federal securities laws; and

    (d) The
Exergetic Energy Shares issued to the Shareholders under this Agreement shall be
subject to "piggy-back" registration rights. Exergetic Energy undertakes to
include Shareholders Exergetic Energy Shares in any registration statement filed
by Exergetic Energy under the Act, if such registration statement shall include
any other persons Exergetic Energy Shares for registration and resale, as
selling shareholders. If the registration statement under the Act is solely for
the purpose of Exergetic Energy issuing and selling its securities to the public
("IPO"), then the Shareholders agree that this piggy-back registration right
shall be deferred until selling shareholders shall be included in a registration
statement under the Act.

    

    12.
TERMINATION.

    This
Agreement may be terminated by: (i) mutual consent in writing; (ii)
Shareholders, SSI or Exergetic Energy if there has been a material
misrepresentation or material breach of any warranty or covenant by any other
party, or (iii) by any of the Shareholders, SSI or Exergetic Energy if the SEC
does not "clear comments" with regard to the Form 8-K or amendment relating to
the business combination of SSI and Exergetic Energy as required under the
Services Agreement and therefore the Closing shall not have
occurred.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    13.
SURVIVAL OF REPRESENTATIONS AND WARRANTIES.

    The
representations and warranties of the Shareholders, SSI and Exergetic Energy set
out herein shall survive the Closing.

    

    15.
ARBITRATION

    15.1.
SCOPE. The parties hereby agree that any and all under the terms of this
Agreement will be resolved by arbitration before the American Arbitration
Association within the County of Wayne,  Michigan.

    

    15.2.
CONSENT TO JURISDICTION, SITUS AND JUDGEMENT. The parties hereby irrevocably
consent to the jurisdiction of the American Arbitration Association and the
sites of the arbitration (and any requests for injunctive or other equitable
relief) shall rest in Wayne County, Michigan.  Any award in
arbitration may be entered in any domestic or foreign court having jurisdiction
over the enforcement of such awards.

    

    15.3.
APPLICABLE LAW. The law applicable to the arbitration and this Agreement shall
be that of the State of Michigan, determined without regard to its provisions
which would otherwise apply to a question of conflict of laws.

    

    15.4.
DISCLOSURE AND DISCOVERY. The arbitrator may, in its discretion, allow the
parties to make reasonable disclosure and discovery in regard to any matters
which are the subject of the arbitration and to compel compliance with such
disclosure and discovery order. The arbitrator may order the parties to comply
with all or any of the disclosure and discovery provisions of the Federal Rules
of Civil Procedure, as they then exist, as may be modified by the arbitrator
consistent with the desire to simplify the conduct and minimize the expense of
the arbitration.

    

    15.5.
RULES OF LAW. Regardless of any practices of arbitration to the contrary, the
arbitrator will apply the rules of contract and other law of the jurisdiction
whose law applies to the arbitration so that the decision of the arbitrator will
be, as much as possible, the same as if the dispute had been determined by a
court of competent jurisdiction.

    

    15.6.
FINALITY AND FEES. Any award or decision by the American Arbitration Association
shall be final, binding and non-appealable except as to errors of law or the
failure of the arbitrator to adhere to the arbitration provisions contained in
this Agreement. Each party to the arbitration shall pay its own costs and
counsel fees except as specifically provided otherwise in this
Agreement.

    

    15.7.
MEASURE OF DAMAGES. In any adverse action, the parties shall restrict themselves
to claims for compensatory damages and\or securities issued or to be issued and
no claims shall be made by any party or affiliate for lost profits, punitive or
multiple damages.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    15.8.
COVENANT NOT TO SUE. The parties covenant that under no conditions will any
party or any affiliate file any action against the other (except only requests
for injunctive or other equitable relief) in any forum other than before the
American Arbitration Association, and the parties agree that any such action, if
filed, shall be dismissed upon application and shall be referred for arbitration
hereunder with costs and attorney's fees to the prevailing party.

    

    15.9.
INTENTION. It is the intention of the parties and their affiliates that all
disputes of any nature between them, whenever arising, under this Agreement
based on whatever law, rule or regulation, whether statutory or common law, and
however characterized, be decided by arbitration as provided herein and that no
party or affiliate be required to litigate in any other forum any disputes or
other matters except for requests for injunctive or equitable relief, or rights
of affiliates of the Shareholders under a separate securities compliance
services agreement or a secured note and pledge agreement executed in connection
with the securities compliance services agreement.

    

    15.10.
SURVIVAL. The provisions for arbitration contained herein shall survive the
termination of this Agreement for any reason.

    

    16.
GENERAL PROVISIONS.

    16.1.
FURTHER ASSURANCES. From time to time, each party will execute such additional
instruments and take such actions as may be reasonably required to carry out the
intent and purposes of this Agreement.

    

    16.2.
WAIVER. Any failure on the part of either party hereto to comply with any of its
obligations, agreements, or conditions hereunder may be waived in writing by the
party to whom such compliance is owed.

    

    16.3.
BROKERS. Each party agrees to indemnify and hold harmless the other party
against any fee, loss, or expense arising out of claims by brokers or finders
employed or alleged to have been employed by the indemnifying
party.

    

    16.4.
NOTICES. All notices and other communications hereunder shall be in writing and
shall be deemed to have been given if delivered in person or sent by prepaid
first-class certified mail, return receipt requested, or recognized commercial
courier service, as follows:

    

    If to
Exergetic Energy, to:

    Exergetic
Energy LLC.

    440
Burroughs, Ste. 386

    Detroit,
MI 48202

    

    If to
SSI, to:

    Specialized
Services Inc.

    P.O. BOX
20842

    Ferndale,  Mi  48220

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    16.5.
GOVERNING LAW. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Michigan.

    

    16.6.
ASSIGNMENT. This Agreement shall inure to the benefit of, and be binding upon,
the parties hereto and their successors and assigns; provided, however, that any
assignment by either party of its rights under this Agreement without the
written consent of the other party shall be void.

    

    16.7.
COUNTERPARTS. This Agreement may be executed simultaneously in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Signatures sent by
facsimile transmission shall be deemed to be evidence of the original execution
thereof.

    

    16.8.
REVIEW OF AGREEMENT. Each party acknowledges that it has had time to review this
Agreement and, as desired, consult with counsel. In the interpretation of this
Agreement, no adverse presumption shall be made against any party on the basis
that it has prepared, or participated in the preparation of, this
Agreement.

    

    16.9.
SCHEDULES. All schedules attached hereto, if any, shall be acknowledged by each
party by signature or initials thereon and shall be dated.

    

    16.10.
EFFECTIVE DATE. The effective date of this Agreement shall be December 10,
2010.

    
 

    SIGNATURE
PAGE TO AGREEMENT AND PLAN OF MERGER AMONG EXERGETIC ENERGY, SSI AND THE
SHAREHOLDERS OF SSI IN WITNESS WHEREOF, the parties has executed this
Agreement.

    

    
      
        
          
            
              
                	
                        EXERGETIC
      ENERGY, Inc.

                      	 	Specialized
      Services Inc
	 
      	 	 	 
      
	
                        By:

                      	
                        /s/ Clarence
      B. McCollum

                      	 	 	
                        By:

                      	
                        /s/ David Joseph

                      
	
                        Clarence
      B. McCollum, Chairman

                      	 	 	
                        David
      Joseph,
Chairman

                      

              

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    SHAREHOLDERS
OF SSI:

     

    Exhibit
A

     

    
      
        
          	
                  SSI Shares to be

                  Surrendered  

                	
                    

                	
                  Exergetic Energy Shares to be

                  Issued  

                	
                    

                	
                  Name of Shareholder  

                	
                    

                	
                  Address of Shareholder 

                
	
                                        131,800
      Shares

                	 
      	
                                      131,800
      Shares     

                	 
      	
                  David
      Joseph

                	 
      	
                  514
      NW Dover Ct., Port St. Lucie, Fl 34983

                
	
                                        43,400
      Shares

                	 
      	
                                       43,400
      Shares     

                	
                   
      

                	
                  Christopher
      Aldridge

                	 
      	
                  23600
      Telegraph Rd. Ste 201, Southfield, MI  48033

                
	
                                        84,000
      Shares

                	 
      	
                                          84,000
      Shares     

                	 
      	
                  Charles
      D. Davenport, Esq.

                	 
      	
                  2841
      Braircliff,  Ann Arbor,
    Mi  48105

                
	
                                        58,000
      Shares

                	 
      	
                                          58,000
      Shares     

                	 
      	
                  Michael
      Jackson

                	 
      	
                  900 E. Bunche St.,
      Dothan, Al 36303

                
	
                                        43,400
      Shares

                	 
      	
                                          43,400
      Shares     

                	 
      	
                  William,
      Gregory, Smith & Assoc.

                	 
      	
                  23600 Telegraph Rd.
      Ste. 201, Southfield,
MI  48033

                

        

      

    

     

    
      
        
          	
                  Exergetic
      Energy, Inc.

                	 
      	
                  Specialized
      Services Inc

                
	
                  By: 

                	
                  /s/ Clarence B. McCollum,
      Chairman

                	 
      	
                  By: 

                	
                  /s/ David Joseph,
  Chairman

                

        

      

    

     

    
      
        
          
            
              
                	 
      	 	
                        STOCKHOLDER

                      
	 
      	 	
                        By: 

                      	
                        /s/

                      
	 
      	 	
                          

                      
	 
      	 	
                        STOCKHOLDER

                      
	 
      	 	
                        By: 

                      	
                        /s/

                      
	 
      	 	
                          

                      
	 
      	 	
                        STOCKHOLDER

                      
	 
      	 	
                        By: 

                      	
                        /s/

                      
	 
      	 	
                          

                      
	 
      	 	
                        STOCKHOLDER

                      
	 
      	 	
                        By: 

                      	
                        /s/

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