Document:

exh10-3_16994.htm

EXHIBIT 10.3

CAS MEDICAL SYSTEMS, INC.

INDUCEMENT RESTRICTED STOCK AGREEMENT

This Inducement Restricted Stock Agreement (this “Agreement”) is made as of January 7, 2011 (the “Date of Grant”), by and between CAS Medical Systems, Inc., a Delaware corporation (the “Company”), and Matthew J. Herwig (the “Grantee”) as a material inducement to Grantee becoming a senior executive of the Company.  The parties acknowledge that this Agreement is an “inducement” grant for purposes of the Rule 5635(c)(4) of the Nasdaq Stock Market (“Nasdaq”) and that the issuance of the Restricted Shares (as defined below) is subject to applicable Nasdaq requirements.

1.           Grant of Restricted Stock.  Subject to and upon the terms, conditions, and restrictions set forth in this Agreement, the Company hereby grants to the Grantee, Twenty Five Thousand (25,000) shares of common stock of the Company.  These shares are referred to in this Agreement as “Restricted Shares” during the applicable Restriction Period (as defined in paragraph 4(c) hereof).  Acceptance of the Restricted Shares shall be deemed to be agreement by the Grantee to the terms and conditions set forth in this Agreement.  Certificates representing the Restricted Shares may not be sold or otherwise transferred and must be held by the Grantee until the end of the applicable Restriction Period.  Until such terms and conditions have lapsed with respect to any Restricted Shares, the certificate for such shares will, at the Company’s option, remain in the physical possession of the Company or bear a legend to the effect that they were issued or transferred subject to, and may be sold or otherwise disposed of only in accordance with, the terms of this Agreement.

2.           Stockholder Status.  Effective upon the Date of Grant, the Grantee will be a holder of record of the Restricted Shares and will have all rights of a stockholder with respect to such shares (including the right to vote such shares at any meeting of stockholders of the Company and the right to receive all dividends paid with respect to such shares), subject only to the terms and conditions imposed by this Agreement.

3.           Effect of Changes in Capitalization.  The number of Restricted Shares is subject to adjustment for stock splits, stock dividends and the like.  Any additional or different shares or securities issued as the result of such an adjustment will be held or delivered in accordance with this Agreement and will be deemed to be included within the term “Restricted Shares”.

4.           Lapse of Restrictions.

(a)           Subject to paragraph 6, below, the restrictions set forth in paragraph 5, below, will lapse over an approximately four (4) year period commencing upon the Date of Grant in the following manner:  The restrictions will lapse with respect to 6,250 shares the first anniversary of the Date of the Grant, provided the Grantee is then still employed by the Company.  The restrictions with respect to the remaining shares shall lapse on the day following the end of each calendar quarter, beginning with April 1, 2012, and continuing on each July 1st, October 1st, January 1st and April 1st thereafter until January 1, 2015.  At each 

  

  

  

quarterly vesting date, the restrictions with respect to 1,562 restricted shares shall lapse, except that on January 1,  2015, the restrictions with respect to the remaining 1,568 restricted shares shall lapse, in each case provided the Grantee is then still employed by the Company.

(b)           Notwithstanding paragraph 4(a), the restrictions set forth in paragraph 5 below will lapse on all Restricted Shares at the close of business on the date on which a Change in Control of the Company (as defined below in this paragraph 4(b)) shall occur.  For purposes of this Agreement, a “Change in Control” will occur if (i) any “person” (as such term is defined in Section 3(a)(9) and as used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”), excluding the Company or any of its subsidiaries, a trustee or any fiduciary holding securities under an employee benefit plan of the Company or any of its subsidiaries, an underwriter temporarily holding securities pursuant to an offering of such securities or a corporation owned, directly or indirectly, by shareholders of the Company in substantially the same proportion as their ownership of the Company, becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing an increase from less than Twenty Percent (20%) to Fifty Percent (50%) or more of the combined voting power of the Company’s then outstanding securities (“Voting Securities”); (ii) during any period of not more than two (2) years, individuals who constitute the Board of Directors of the Company (the “Board”) as of the beginning of the period and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in clause (i) or (iii) of this sentence) whose election by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at such time or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; (iii) the stockholders of the Company approve a merger, consolidation or reorganization or a court of competent jurisdiction approves a scheme or arrangement of the Company, other than a merger, consolidation, reorganization or scheme which would result in the Voting Securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into Voting Securities of the surviving entity) at least Fifty Percent (50%) of the combined voting power of the Voting Securities of the Company or such surviving entity outstanding immediately after such merger, consolidation, reorganization or scheme or arrangement, and such transaction is completed; or (iv) the stockholders of the Company approve a plan of complete liquidation of the Company or any agreement for the sale of substantially all of the Company’s assets, and such transaction is completed.

(c)           As soon as practicable after the restrictions with respect to any installment of Restricted Shares lapse at the end of the period applicable to such installment set forth in paragraphs 4(a) and 4(b) above (the “Restriction Period”), the Company will deliver to the Grantee, or the Grantee’s legal representative, promptly after surrender of the Grantee's certificate(s) for the Restricted Shares to the Chief Financial Officer of the Company, the certificate or certificates for such shares free of any legend or further restrictions together with, if applicable, a new certificate representing any remaining Restricted Shares.  It shall be a condition to the obligation of the Company to issue or transfer shares of Common Stock upon the lapse of restrictions that the Grantee (or any person entitled to act under this paragraph 4(c)) pay to the Company, upon its demand, such amount as may be requested by the Company for 

  

2

  

the purpose of satisfying its liability to withhold federal, state or local income or other taxes by reason of such issuance or transfer.  If the amount requested is not paid, the Company may refuse to issue or transfer shares of Common Stock.

5.           Restrictions.  During the Restriction Period, neither the Restricted Shares nor any right or privilege pertaining thereto may be sold, transferred, assigned, pledged, hypothecated or otherwise disposed of or encumbered in any way, by operation of law or otherwise, and shall not be subject to execution, attachment or similar process.  Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of or encumber the Restricted Shares or any right or privilege pertaining thereto, otherwise than by will or by the laws of descent and distribution, or upon the levy of any execution, attachment or similar process thereupon, the Restricted Shares and all rights and privileges given hereby shall immediately terminate and the Restricted Shares shall be forfeited to the Company pursuant to paragraph 6 hereof.

6.           Forfeiture.

(a)           All the Grantee's rights to, and interest in, the Restricted Shares shall terminate and be forfeited to the Company without payment of consideration if either (i) the Grantee's employment by the Company and any subsidiary thereof terminates (or, if the Grantee is no longer employed by the Company but has become a consultant to the Company under a post-employment consulting arrangement, such consulting arrangement terminates) for any reason; provided, however, that the Grantee’s employment will not be deemed to have terminated for this purpose while the Grantee is on a leave of absence which has been approved by the Company or while the Grantee is serving as a consultant to the Company or any subsidiary thereof under a post-employment consulting arrangement, or (ii) any action prohibited by paragraph 5 hereof is taken.  For purposes of this Agreement, a transfer of employment from the Company to a subsidiary or from a subsidiary to the Company or between subsidiaries shall not be deemed a termination of employment.

(b)           If Restricted Shares are forfeited for any of the reasons stated in paragraph 6(a) hereof, such forfeiture shall be effective upon the occurrence of the event giving rise to the forfeiture; provided, however, that any termination of the Grantee’s employment simultaneous with a Change in Control shall be deemed for purposes hereof to have occurred immediately after such Change in Control.

(c)           If at any time the Grantee forfeits any Restricted Shares pursuant to this Agreement, the Grantee agrees to return the certificate or certificates for such Restricted Shares to the Company duly endorsed in blank or accompanied by a stock power duly executed in blank.

(d)           Determination as to whether an event has occurred resulting in the forfeiture of, or lapse of restrictions on, Restricted Shares, in accordance with this Agreement, shall be made by the Compensation Committee of the Board (the “Committee”), and all determinations of the Committee shall be final and conclusive.

  

3

  

7.           Company Right to Terminate Employment and Other Remedies.  Nothing provided herein shall be construed to affect in any way the right or power of the Company, subject to the provisions of any other written agreement between the Grantee and the Company relating to the subject matter, to terminate the Grantee’s employment as an employee of or a consultant to the Company at any time for any reason with or without cause, nor to preclude the Company from taking any action or enforcing any remedy available to it with respect to any action or conduct on the Grantee's part.

8.           Additional Documents.

(a)           It is the intention of the Company that this award of Restricted Shares shall meet the requirements of, and result in the application of, the rules prescribed by Section 83 of the Internal Revenue Code of 1986, as in effect at the date hereof, and applicable regulations thereunder.  Accordingly, each and every provision shall be construed and interpreted in such manner as to conform with such intention and the Company reserves the right to execute and to require the Grantee to execute any further agreements or other instruments, which may be effective as of the date of the award of the Restricted Shares covered by this Agreement, including, but without limitation, any instrument modifying or correcting any provision hereof, or any action taken hereunder or contemporaneously herewith, and to take any other action, which may be effective as of the date of the award of the Restricted Shares covered by this Agreement, that, in the opinion of counsel for the Company, may be necessary or desirable to carry out such intention.

(b)           If the Grantee fails, refuses or neglects to execute and deliver any instrument or document or to take any action requested by the Company to be executed or taken by the Grantee pursuant to the provisions of paragraph 8(a) above for a period of 30 days after the date of such request, the Company may require the Grantee, within ten 10 days after delivery to the Grantee of a written demand by the Company, to forfeit all Restricted Shares then held by the Grantee.

9.           Restrictive Legends.  Each certificate for Restricted Shares, and any such shares following the expiration of the Restriction Period, unless, in each case, such shares are eligible for resale without registration pursuant to Rule 144(b)(1)(i) under the Exchange Act or such shares are registered for sale under an effective registration statement filed under the Securities Act of 1933, as amended (the “Securities Act”), shall bear the following legend:

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT UNLESS, IN THE OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, SUCH REGISTRATION IS NOT REQUIRED.”

 

In addition, the legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any such shares upon which it is stamped, if, unless otherwise required by applicable state securities laws, such shares are registered for resale under an effective registration statement filed under the Securities Act.

  

4

  

10.           Severability.  In the event that one or more of the provisions of this Agreement is invalidated for any reason by a court of competent jurisdiction, any provision so invalidated will be deemed to be separable from the other provisions hereof, and the remaining provisions hereof will continue to be valid and fully enforceable.

 

11.           Interpretation.  The Committee, as constituted from time to time, will, except as expressly provided otherwise herein, have the right to determine any questions or settle any ambiguities which arise in connection with this Agreement and the Restricted Shares.

 

12.           Successors and Assigns.  Without limiting Section 4 hereof, the provisions of this Agreement will inure to the benefit of, and be binding upon, the successors, administrators, heirs, legal representatives and assigns of the Grantee, and the successors and assigns of the Company.

 

13.           Governing Law.  The interpretation, performance and enforcement of this Agreement will be governed by the laws of the State of Delaware, without giving effect to the principles of conflict of laws thereof.  Each party to this Agreement hereby consents and submits himself, herself or itself to the jurisdiction of the courts of the State of Connecticut for the purposes of any legal action or proceeding arising out of this Agreement.

 

14.           Notices.  Any notice to the Company provided for herein will be in writing to the Company and any notice to the Grantee will be addressed to the Grantee at his or her address on file with the Company.  Except as otherwise provided herein, any written notice will be deemed to be duly given if and when delivered personally or sent by courier service, registered mail or electronic means of communication, and addressed as aforesaid.  Any party may change the address to which notices are to be given hereunder by notice to the other party as herein specified (provided that for this purpose any mailed notice will be deemed given on the third business day following deposit of the same in the mail).

 

[Signature page follows]

  

5

  

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its duly authorized officer and Grantee has also executed this Agreement in duplicate, as of the day and year first above written.

	  	
CAS MEDICAL SYSTEMS, INC.

By: /s/ Thomas M. Patton

 

Name: Thomas M. Patton

Title: President and CEO

 

The undersigned Grantee hereby acknowledges receipt of an executed original of this Restricted Stock Agreement  and accepts the Restricted Shares granted hereunder, subject to the terms and conditions set forth herein.

 

	  	
/s/ Matthew J. Herwig

 

Matthew J. Herwig 

 

 

 

 

 

 

 

 

  

6mwbl8k20100921ex10-a.htm

STOCK PURCHASE AGREEMENT

 

THIS STOCK PURCHASE AGREEMENT is made this 21st day of July, 2010, by and between  GSA International Group LTD (“GSAIG”), ARCIS Energy, Inc., (“ARCIS”), Gulf Cost Energy Distribution (“GCED”), the Shareholders of GCED;and Mountain Renewables, Inc., a Nevada Corporation (the “Company”), Bristlecone Associates, LLC a Colorado limited liability company (“Bristlecone”) and Richard Giannotti (“Giannotti”). GSAIG, ARCIS and GCED are referred to collectively as “GSAI” and the Company, Bristlecone and Giannotti are collectively referred to herein as the "Sellers".

WHEREAS, in exchange for GSAI transferring the following interests (the “Assets”) 100% of the outstanding securities of ARCIS which shall hold the Assets set forth on Exhibit A hereto at Closing; and the Shareholders delivering  100% of the outstanding common shares of  Gulf Cost Energy Distribution which shall hold the assets set forth on Exhibit B hereto at Closing, the Company will issue eleven million newly issued common shares of the Company to GSAI and two million two hundered thousand newly issued shares to the Shareholders as set forth on Exhibit C (collectively, the “Purchase Shares”) And the Company shall thereafter carry on the fuel acquisition and distribution business of ARCIS and GCED internationally.

WHEREAS, Bristlecone holds 6,000,000 shares of the Company's common stock and has agreed to retire 4,500,000 of the shares which it holds to the treasury of the Company in exchange for GSAI transferring the Assets;

WHEREAS, Giannotti holds 4,030,000 shares of the Company's common stock and desires to retire 3,500,000 of the shares which he holds to the treasury of the Company  in exchange for GSAI transferring the Assets as defined herein;

NOW, THEREFORE, in consideration of the mutual promises, covenants, and representations contained herein, the parties hereto agree as follows:

1. Recitals.

The above recitals are true and correct.

2. Sale and Transfer of Shares; Closing.

Subject to the terms and conditions of this Agreement, at the Closing, the following will occur:

i. the Company will sell and transfer the Purchase Shares to GSAI and the Shareholders;

ii. Bristlecone will deliver 4,500,000 common shares to the Company which shall be cancelled and returned to the treasury of the Company;

iii  Giannotti will deliver 3,500,000 common shares to the Company which shall be cancelled and returned to the treasury of the Company;

iv. GSAI will transfer 100% of the outstanding shares of ARCIS (the “ARCIS Shares”) to the Company.

v. the Shareholders will transfer 100% of the outstanding shares of GCED (the “GCED Shares”) to the Company;

vi. the Company shall deliver the 13,200,000 Purchase Shares issued in the amounts and to the persons set forth in Exhibit C hereto;

vii. the Officers and Directors of the Company shall appoint the directors designated by GSAI and resign; and the newly appointed Directors of the Company who shall serve until their successors have been duly elected or appointed and qualified or until their earlier death, resignation or removal in accordance with the Charter and the By-Laws, shall appoint the new officers of the Company.

  

  

  

 

 

3. Post Closing Obligations.

Within forty five days of closing, GSAI shall negotiate the final terms of the acquisition of 100% of the outstanding common shares of the following corporations:

i. American Plant Services which shall hold the business and assets listed and described on Exhibit D; and

ii. Mobile Fluid Recovery which shall hold the business and assets listed and described on Exhibit E.

in exchange for a total of an additional consideration of 8,800,000 newly issued Company shares; and

iii. the Company shall amend its articles of incorporation to increase its authorized common shares to 200,000,000 shares; and

iv. the Company shall changes its name to a name selected by GSAI.

4. Representations and Warranties of Sellers.

The Sellers jointly and severally represent and warrant to GSAI as follows:

i. This Agreement has been duly and validly executed and delivered by the Company, and upon the execution and delivery of this Agreement by the Sellers and the performance by the Sellers of their obligations herein, this Agreement will constitute, a legal, valid and binding obligation of Sellers. The Company is duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation. The execution and delivery by the Company of this Agreement does not, and the performance by the Company of their obligations under this Agreement and the consummation of the transactions contemplated hereby will not, conflict with or result in a violation or breach of any of the terms, conditions or provisions of any other agreement to which the Company is a party.

ii The Purchase Shares being issued to GSAI hereunder are, and shall be at the Closing, duly and validly issued, fully paid, and non-assessable and in each instance have been issued in accordance with exemptions from the registration requirements of applicable securities laws.

iii.   The Company is not a “Shell Company” as defined by Rule 405 of the Securities Act of 1933, as amended, the Company has had continuous operations since its formation and has never been designated as a Shell Company since its first 10-K filing..

iv.    Immediately prior to the Closing, the authorized capital stock of the Company shall consist of a total of 100,000,000 (one hundred million) capital shares, consisting of 100,000,000 (one hundred million) shares of Common Stock, $.001 par value (the "Common Stock"). At closing 13,515,000 common shares shall be issued and outstanding prior to the issuance of the 13,200,000 common shares pursuant to paragraph 2. above; and no shares of Preferred Stock shall be issued and outstanding.

v. There is no action, suit, proceeding or investigation pending or, to the best knowledge of Sellers, currently threatened against the Company that may affect the validity of this Agreement or the right of the Company to enter into this Agreement or to consummate the transactions contemplated hereby.

vi.    The Company has complied in all respects with applicable federal and state securities laws, rules and regulations, including the Sarbanes Oxley Act of 2002, as such laws, rules and regulations apply to the Company and its securities; and all shares of capital stock of the Company have been issued in accordance with applicable federal and state securities laws, rules and regulations. There are no stop orders in effect with respect to any of the Company's securities. Sellers represent that all of the Company’s reports, schedules and filings made on the Securities and Exchange Commission’s Edgar database were, at the time of filing and will be at the time of Closing complete, true and accurate in all material respects.

vii.  The Company has at least one active market maker in its common stock and the company will be DTC eligible at the time of Closing.

 

viii.    The Company offering and sale of the Purchase Shares to GSAI is exempt from registration under the Securities Act and exempt from registration or qualification under any state law.

  

  

  

 

5.  Conditions Precedent to GSAI's Obligations at the Closings.

Subject to the terms hereof, the obligations of the GSAI set forth herein are subject to the fulfillment, prior to the Closing to the satisfaction of the GSAI, of the following conditions, the waiver of which shall not be effective against GSAI without written consent thereto:

i. The Company shall terminate its Registration Statement on Form S-1, declared effective by the Securities and Exchange Commission on December 28, 2009.

ii. The Company will deliver a certificate executed by the Company’s Chief Executive Officer representing and warranting to GSAI that each of the Company representations and warranties in this Agreement were accurate in all respects as of the date of this Agreement and are accurate in all respects as of the Closing Date as if made on the Closing Date.

iii. The representations and warranties made by the Sellers’ herein shall be true and correct and complete as of the date hereof, and shall be true and correct and complete as of the date of the Closing with the same force and effect as if they had been made on and as of such date.

iv. Sellers represent that upon delivery of the Purchase Shares to GSAI, GSAI will be the owner of record, and beneficially, of the Purchase Shares, free and clear of all liens, rights, claims, and encumbrances, and that the Purchase Shares have not been sold, pledged, assigned or otherwise transferred.  The Company represents that the certificates representing the Purchase Shares bear a restrictive legend.

v.  Sellers have agreed not to disclose and to maintain as confidential and use solely for purposes of evaluating the transaction described herein all non-public information related to GSAI of which it is in possession.  Unless required by law, Sellers will not disclose, and shall maintain confidential any non-public information related to GSAI, provided that the undersigned may disclose such information to any of its advisors, attorneys and accountants, if such advisor, attorney and/or accountant shall have agreed to be bound by this provision.  The Sellers have agreed not to effect any transaction in the Company's Common Stock or other securities based upon any nonpublic information related to the Company of which it is in possession.

vi. The Sellers shall execute such documents and other papers and take such further actions as may be reasonably required or desirable to carry out the provisions hereof and the transactions contemplated hereby.  Sellers shall use their best efforts to fulfill or obtain the fulfillment of the conditions to the Closing.

6. Representations and Warranties of GSAI.

The GSAI (and with respect to Section 6.2, the Shareholders) represents and warrants to the Sellers as follows:

i. This Agreement has been duly and validly executed and delivered by GSAI, and upon the execution and delivery by GSAI of this Agreement and the performance by GSAI of its obligations herein, will constitute, a legal, valid and binding obligation of GSAI. GSAI is duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation. The execution and delivery by GSAI of this Agreement does not, and the performance by GSAI of its obligations under this Agreement and the consummation of the transactions contemplated hereby will not, conflict with or result in a violation or breach of any of the terms, conditions or provisions of any other agreement to which GSAI is a party.

  

  

  

ii. The ARCIS and GCED Shares being delivered to the Company hereunder are owned by GSAI and the Shareholders free and clear of any liens or encumbrances, and shall be at the Closing, duly and validly issued, fully paid, and non-assessable and in each instance have been issued in accordance with the exemptions from the registration requirements of applicable securities laws.

iii. There is no action, suit, proceeding or investigation pending or, to the best knowledge of GSAI, currently threatened against GSAI that may affect the validity of this Agreement or the right of GSAI to enter into this Agreement, the value of the assets owned by GSAI or its business or to impair its ability to consummate the transactions contemplated hereby.

iv.  The offer and sale of the ARCIS shares is exempt from registration under the Securities Act and exempt from registration or qualification under any state law.

v. The Presidents of GSAI, ARCIS and GCED will deliver a certificate executed by the respective Chief Executive Officer of each company representing and warranting to Sellers that each of their representations and warranties in this Agreement were accurate in all material respects as of the date of this Agreement and are accurate in all material respects as of the Closing Date as if made on the Closing Date.

7. Representations and Warranties of ARCIS.

ARCIS represents and warrants to the Sellers as follows:

i. This Agreement has been duly and validly executed and delivered by  ARCIS, and upon the execution and delivery by ARCIS of this Agreement and the performance by ARCIS of its obligations herein, will constitute, a legal, valid and binding obligation of ARCIS. ARCIS is duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation. The execution and delivery by ARCIS of this Agreement does not, and the performance by ARCIS of its obligations under this Agreement and the consummation of the transactions contemplated hereby will not, conflict with or result in a violation or breach of any of the terms, conditions or provisions of any other agreement to which ARCIS is a party.

ii. The ARCIS Shares being delivered to the Company hereunder are, and shall be at the Closing, duly and validly issued, fully paid, and non-assessable and in each instance have been issued in accordance with exemptions from the registration requirements of applicable securities laws.

iii. There is no action, suit, proceeding or investigation pending or, to the best knowledge of GSAI, currently threatened against ARCIS that may affect the validity of this Agreement or the right of GSAI to enter into this Agreement, the value of the assets owned by ARCIS or its business or to impair its ability to consummate the transactions contemplated hereby.

iv.  The offer and sale of the ARCIS shares is exempt from registration under the Securities Act and exempt from registration or qualification under any applicable state law.

8. Representations and Warranties of GCED.

GCED represents and warrants to the Sellers as follows:

i. This Agreement has been duly and validly executed and delivered by  GCED, and upon the execution and delivery by GCED of this Agreement and the performance by GCED of its obligations herein, will constitute, a legal, valid and binding obligation of GCED. GCED is duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation. The execution and delivery by GCED of this Agreement does not, and the performance by GCED of tits obligations under this Agreement and the consummation of the transactions contemplated hereby will not, conflict with or result in a violation or breach of any of the terms, conditions or provisions of any other agreement to which GCED is a party.

  

  

  

ii. The GCED Shares being delivered to the Company hereunder are, and shall be at the Closing, duly and validly issued, fully paid, and non-assessable and in each instance have been issued in accordance with exemptions from the registration requirements of applicable securities laws.

iii. There is no action, suit, proceeding or investigation pending or, to the best knowledge of GCED, currently threatened against GCED that may affect the validity of this Agreement or the right of GCED to enter into this Agreement, the value of the assets owned by GCED or its business or to impair its ability to consummate the transactions contemplated hereby.

iv.  The offer and sale of the GCED shares is exempt from registration under the Securities Act and exempt from registration or qualification under any applicable state law.

9. Conditions to the Company's Obligations at the Closings.

Subject to the terms hereof, the obligation of the Sellers set forth herein are subject to the fulfillment, prior to the Closing to the satisfaction of the Sellers, of the following conditions, the waiver of which shall not be effective without written consent thereto:

i. The representations and warranties made by the Sellers’ herein shall be true and correct and complete as of the date hereof, and shall be true and correct and complete as of the date of the Closing with the same force and effect as if they had been made on and as of such date.

ii. GSAI represents that upon delivery of the ARCIS Shares and the GCED shares to the Company, the Company will be the owner of record, and beneficially, of 100% of the ARCIS and GCED Shares, free and clear of all liens, rights, claims, and encumbrances, and that the ARCIS and GCED Shares have not been sold, pledged, assigned or otherwise transferred.  The certificates representing the ARCIS and GCED Shares will bear a restrictive legend.

iii. All of the businesses and assets being assigned to the Company as a result of the transactions contemplated herein are being assigned free and clear of any liabilities other than those listed on any schedules attached hereto.  The audited financial statements that must be delivered to the Company in order for it to file all necessary filing to be made with the United States Securities and Exchange Commission shall reflect the financial condition of the companies whose stock is being assigned as represented to the Company in the negotiations leading up to the execution of this Agreement.

  

  

  

iv. GSAI has agreed not to disclose and to maintain as confidential and use solely for purposes of evaluating the transaction described herein all non-public information related to the Company of which it is in possession.  Unless required by law, GSAI will not disclose, and shall maintain confidential any non-public information related to the Company, provided that the undersigned may disclose such information to any of its advisors, attorneys and accountants, if such advisor, attorney and/or accountant shall have agreed to be bound by this provision.

v. GSAI shall execute such documents and other papers and take such further actions as may be reasonably required or desirable to carry out the provisions hereof and the transactions contemplated hereby.  GSAI shall use its  best efforts to fulfill or obtain the fulfillment of the conditions to the Closing.

10. Miscellaneous

10.1  The parties agree, should the Closing not occur, to  keep confidential any information disclosed to each other in  connection therewith for a period of five (5) years from the date hereof.

10.2 This Agreement shall be governed and construed in accordance with the laws of the State of Florida.

10.3 The invalidity or unenforceability of any term, phrase, clause, paragraph, restriction, covenant, agreement or other provision of this Agreement shall in no way affect the validity or enforcement of any other provision or any part thereof.

10.4 The transactions contemplated herein are contingent upon a satisfactory due diligence review of the Company undertaken by GSAI and the Company in  their sole discretion.

10.5    A telefaxed or e-mailed PDF copy of this Agreement shall be deemed an original.

10.6 The headings and captions used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

10.7 Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of Sellers and the GSAI.

10.8 This Agreement constitutes the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes any and all prior negotiations, correspondence, agreements, understandings duties or obligations between the parties with respect to the subject matter hereof.

10.9 The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties.

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

By:                 /s/ Richard Giannotti

                      Richard Giannotti, an individual

  

  

  

For Mountain Renewables Inc.

By:                /s/ Richard Giannotti

Print Name: Richard Gianotti

Title:            President

GSA International Group LTD

By:                /s/ Robert Di Marco

Print Name: Robert Di Marco

Title:            CEO

ARCIS Energy, Inc.

By:                /s/ Robert Di Marco

Print Name: Robert DiMarco

Title:            President

Gulf Cost Energy Distribution

By:                /s/ Kenneth Flatt, Jr.

Print Name: Kenneth Flatt, Jr.

Title:            CEO

 

 

The Shareholders of GCED:

Activa Transportation Services, LLC

By: /s/

/s/ Kenneth Flatt, Jr.

Kenneth Allen Flatt, Jr.

Bristlecone Associates, LLC

By:                 /s/ Anna M. Colllins

Print Name: Anna M. Collins

Title:            Managing Member

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}]]