Document:

Jerry Seyler, Administrative Assistant - Executive Offices

 

EXHIBIT 10.1

 

[ENERSYS LETTERHEAD]

 

HOWARD I. HOFFEN

Chairman -- Compensation Committee 

 
June 19, 2006

 

Mr. John D. Craig

Dear John:

With reference to your employment agreement (the "Employment Agreement") with EnerSys Delaware Inc., f/k/a Yuasa, Inc., (the "Company"), dated November 9, 2000, and related document pursuant to which you are currently employed as Chairman, President & Chief Executive Officer of EnerSys and the Company, we confirm that your salary as set forth in Section 3 of the Employment Agreement is increased to $783,000.00, effective as of April 1, 2006.

Except as expressly set forth in the letter, the Employment Agreement shall remain in full force and effect.

ENERSYS 

By:       /s/ Howard I. Hoffen

Howard I. Hoffen

Chairman -- Compensation Committee

 

HIH:jlsJerry Seyler, Administrative Assistant - Executive Offices

EXHIBIT 10.2

 

[ENERSYS LETTERHEAD]

 

JOHN D. CRAIG

Chairman, President & CEO 

June 19, 2006

 

 

Mr. Michael T. Philion

Dear Mike:

With reference to your employment agreement (the "Employment Agreement") with EnerSys Delaware Inc., f/k/a Yuasa, Inc., (the "Company"), dated November 9, 2000, pursuant to which you are currently employed as Executive Vice President Finance and Chief Financial Officer of the Company, we confirm that your salary as set forth in Section 3 of the Employment Agreement is increased to $362,000.00, effective as of April 1, 2006.

Except as expressly set forth in the letter, the Employment Agreement shall remain in full force and effect.

ENERSYS DELAWARE INC.

By:       /s/ John D. Craig

John D. Craig

Chairman, President & Chief Executive Officer

JDC:jlsJerry Seyler, Administrative Assistant - Executive Offices

EXHIBIT 10.3

 

[ENERSYS LETTERHEAD]

 

JOHN D. CRAIG

Chairman, President & CEO 

June 19, 2006

 

Mr. Richard W. Zuidema

Dear Richard:

With reference to your employment agreement (the "Employment Agreement") with EnerSys Delaware Inc., f/k/a Yuasa, Inc., (the "Company"), dated November 9, 2000, pursuant to which you are currently employed as Executive Vice President Administration of the Company, we confirm that your salary as set forth in Section 3 of the Employment Agreement is increased to $363,000.00, effective as of April 1, 2006.

Except as expressly set forth in the letter, the Employment Agreement shall remain in full force and effect.

ENERSYS  DELAWARE INC.

By:              /s/ John D. Craig

John D. Craig

Chairman, President & Chief Executive Officer

JDC:jlsJerry Seyler, Administrative Assistant - Executive Offices

EXHIBIT 10.4

 

[ENERSYS LETTERHEAD]

 

JOHN D. CRAIG

Chairman, President & CEO 

June 19, 2006

 

Mr. John A. Shea

Dear John:

With reference to your employment agreement (the "Employment Agreement") with EnerSys Delaware Inc., f/k/a Yuasa, Inc., (the "Company"), dated November 9, 2000, pursuant to which you are currently employed as Executive Vice President Americas of the Company, we confirm that your salary as set forth in Section 3 of the Employment Agreement is increased to $352,000.00, effective as of April 1, 2006.

Except as expressly set forth in the letter, the Employment Agreement shall remain in full force and effect.

ENERSYS DELAWARE INC.

By: /s/ John D. Craig

John D. Craig

Chairman, President & Chief Executive Officer

JDC:jlsJuly 15, 2003

EXHIBIT 10.5

 

[HAWKER LOGO / ENERSYS S.A. LETTERHEAD]

 

June 20, 2006

Mr. Raymond R. Kubis

Dear Ray,

 

With reference to the Managing Directorship Agreement dated January 8, 2002, 

(as amended the "Directorship Agreement"), between you and EnerSys S.A. (formerly

known as Hawker Belgium S.A., and referred to herein as the "Company"), pursuant to 

which you are currently serving as Managing Director of the Company, we confirm that

effective as of April 1, 2006 your annual fixed gross emolument provided for in 

Subsection 2.1 of the Directorship Agreement has been increased to EUR 321,000 (payable

in twelve monthly installments of EUR 26,750), and the Company elects to, and hereby

does, extend the Directorship Agreement for an addition term of two years.  Subsection

2.1 of the Directorship Agreement is hereby amended to reflect such increase.

Except as expressly set forth herein, the Directorship Agreement shall remain in

 full force and effect.

EnerSys sprl

By:  /s/ Nadine Desmet

      Nadine Desmet

      Managing Director

Agreed to and accepted:

/s/ Raymond R. Kubis 

Raymond R. KubisExhibit 10.1

    
      

    

    EXHIBIT
      10.1

    STOCK
      PURCHASE AGREEMENT

    

    W   I   T   N   E   S   S   E   T   H

    

    WHEREAS,
      the Purchaser desires to subscribe for and purchase _____________________ shares
      of Common Stock, par value $0.001, of the Company (the "Shares"), for an
      aggregate purchase price of $______ (the "Purchase Price");

    

    WHEREAS,
      the Company is willing to sell the Shares to the Purchaser on the terms and
      conditions set forth herein.

    

    NOW,
      THEREFORE, in consideration of the mutual agreements and considerations set
      forth herein, the parties hereby agree as follows.

    

    1. Subscription
      for and Purchase of Stock

    

    Subject
      to the terms and conditions stated herein, the Purchaser hereby subscribes
      for
      and agrees to purchase, and the Company agrees to sell to the Purchaser, the
      Shares in consideration of the payment by the Purchaser of the Purchase
      Price.

    

    2. Representations
      of the Purchaser; Restrictions on Transfer

    

    2.1 General
      Restriction on Transfer.
      Except
      for transfers otherwise permitted by this Agreement or applicable law, the
      Purchaser agrees that it will not transfer any of the Shares.

    

    2.2 Not
      for Resale.
      The
      Purchaser represents that it is acquiring the Securities for investment for
      its
      own account and not with a view to, or for resale in connection with, the
      distribution or other disposition thereof. The Purchaser agrees that it will
      not, directly or indirectly, offer, transfer, sell, assign, pledge, hypothecate
      or otherwise dispose of (each a "Transfer") any of the Shares unless such
      Transfer complies with the provisions of this Agreement and (i) the Transfer
      is
      pursuant to an effective registration statement under the Securities Act of
      1933, as amended, and the rules and regulations in effect thereunder (the
      "Securities Act"), or (ii) counsel for the Purchaser shall have furnished the
      Company with an opinion, acceptable to the Company, that no such registration
      is
      required because of the availability of an exemption under the Securities
      Act.

    

    2.3 Certain
      Permitted Transfers.
      Notwithstanding the general prohibition on Transfers contained herein, the
      Company acknowledges and agrees that any Transfer in a private transaction
      which
      does not include a public distribution is permitted and need not require an
      opinion of counsel, provided,
      that
      prior to such Transfer, the transferee shall deliver to the Company a valid
      written undertaking to be bound by the terms of this Agreement.

    

    2.4 Rule
      144 Sales.
      The
      Purchaser may sell at any time any of the Shares in a Rule 144 Transaction
      (as
      hereinafter defined); provided,
      that,
      each such sale shall be made in compliance with this Section
      2.4.
      If any
      of the Shares are disposed of according to Rule 144 ("Rule 144 Transaction")
      under the Securities Act or otherwise, the Purchaser shall promptly notify
      the
      Company of such intended disposition and shall deliver to the Company at or
      prior to the time of such disposition such documentation as the Company may
      reasonably request in connection with such sale and, in the case of a
      disposition pursuant to Rule 144, shall deliver to the Company an executed
      copy
      of any notice on Form 144 required to filed with the Securities and Exchange
      Commission.

    

    2.5 Legend.
      Each
      certificate representing the Shares shall bear the standard restrictive
      legend.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    "THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED
      FOR
      SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
      OR
      AN OPINION OF COUNSEL OR OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH
      REGISTRATION IS NOT REQUIRED."

    

    2.6 Qualified
      Investor The
      Purchaser hereby represents and warrants to the Company as follows:

    

    (a) The
      Purchaser is an “accredited investor” as defined by Rule 501 under the
      Securities Act, and the Purchaser is capable of evaluating the merits and risks
      of Purchaser’s investment in the Company and has the capacity to protect the
      Purchaser’s own interests.
      The
      Purchaser meets the requirements of at least one of the suitability standards
      for an “accredited investor” as set forth on the Accredited Investor
      Certification contained herein;

    

    (b)
      None
      of the Shares have been registered under the Securities Act or any state
      securities laws. The Purchaser understands that the offering and sale of the
      Shares is intended to be exempt from registration under the Act, by virtue
      of
      Section 4(2) and/or Section 4(6) thereof and the provisions of Regulation D
      promulgated thereunder, based, in part, upon the representations, warranties
      and
      agreements of the Purchaser contained in this Agreement;

    

    (c) The
      Purchaser has the requisite knowledge and experience in financial and business
      matters to be capable of evaluating the merits and risks of this investment
      and
      to make an informed investment decision with respect thereto, and it or its
      advisors have received such information requested by them concerning the Company
      in order to evaluate the merits or risks of making this investment. Further,
      it
      is acknowledged that the Purchaser or its attorney, accountant or advisor have
      had the opportunity to ask questions of, and receive answers from, the officers
      of the Company concerning the terms and conditions of this investment and to
      obtain information relating to the Company.

     

    (d) The
      purchase of the Shares involves risks which it has evaluated, and is able to
      bear the economic risk of such purchase including the total loss of its
      investment. It has been advised of the current financial condition of the
      Company and of the possible adverse effects of such financial condition on
      the
      Company's general business.

    

    2.7 (i)
      Notwithstanding anything above in this Section 2 Purchaser shall not Transfer
      the Shares (otherwise than to a Permitted Transferee, as defined below, or
      by
      will or by the laws of descent) without the written consent of the Company
      (“Consent”), not to be unreasonably withheld. The Purchaser agrees that the
      stock certificates representing his holdings in the Company as a result of
      this
      Agreement shall contain a restrictive legend prohibiting such transfers and
      making reference to this Agreement. Provided however, that Consent to Transfer
      is not required for an aggregate Transfer of 10% of the number of Shares being
      purchased under this Agreement by Purchaser.

    

     

    In
      this
      Agreement, “Permitted Transferee” shall mean: spouse or children or children’s
      spouse or grandchildren or an entity which controls or is controlled by,
      directly or indirectly by the Purchaser. For this purpose - "Control" shall
      mean
      holding at least 50% of the share capital and voting control of the relevant
      entity and provided the Permitted Transferee agrees in writing to be bound
      by
      the terms herein.

    

    (ii)
      In
      the event that the Company provides its Consent to a person who is listed on
      Appendix A to this Agreement for Transfer of the shares (being purchased as
      of
      the date of this Agreement) listed beside such persons’ name, or any part of
      them, then the Purchaser shall thereafter be entitled any time and from time
      to
      time to Transfer in the aggregate Y (as defined below) percentage of the Shares,
      without Consent 

    

    For
      the
      purposes hereof:

    

    ‘Y’
is
      equal to the quotient of the number of shares permitted to be Transferred in
      the
      total Consents given in any calendar month divided by the total number of shares
      of Schedule A Stock (defined below) .

    

    “Schedule
      A Stock” is equal to 4,387,497 being the total number of shares set forth on
      Schedule A.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. Company's
      Representations and Warranties

    

    3.1 Organization.
      The Company is a corporation duly organized, validly existing and in good
      standing under the laws of the jurisdiction of its incorporation and has all
      requisite corporate power and authority to carry on its business as now being
      conducted, except where the failure to be so organized, existing and in good
      standing or to have such power and authority could not be reasonably expected
      to
      (i) prevent or materially delay the consummation of the sell of the Shares
      or
      (ii) have a material adverse effect on the Company. The Company is duly
      qualified or licensed to do business and in good standing in each jurisdiction
      in which the property owned, leased or operated by it or the nature of the
      business conducted by it makes such qualification or licensing necessary, except
      in such jurisdictions where the failure to be so duly qualified or licensed
      and
      in good standing could not reasonably be expected to have a material adverse
      effect on the Company or prevent or materially delay the consummation of the
      sell of the Shares. The Company has made available to the Purchaser complete
      and
      correct copies of its certificate of incorporation and bylaws.

    

    3.2 The
      Company has all requisite power and authority to issue, sell and deliver the
      Shares in accordance with and upon the terms and conditions set forth in this
      Agreement, and all corporate action required to be taken by the Company for
      the
      due and proper authorization, issuance and delivery of the Shares will, upon
      delivery thereof, have been validly and sufficiently taken. The Shares, when
      sold and paid for as contemplated in this Agreement, will be duly authorized,
      validly issued, fully paid and non-assessable and, except as otherwise provided
      by applicable law, free of all liens, claims and encumbrances.

     

    

    3.3 (i)
      The
      Company has full corporate right, power and authority to enter into this
      Agreement and to issue the Shares, and this Agreement and the Shares have been
      or will be duly authorized, executed and delivered by the Company and
      constitutes or will constitute the valid and binding agreement of the
      Company.

     

    (ii) The
      Board
      of Directors of the Company duly and unanimously adopted resolutions approving
      this Agreement.

     

    3.4 The
      Company currently has issued and outstanding 2,112,500 shares of Common Stock.
      The Company intends to sale for a penny per share an additional 7,887,500 shares
      (including the Shares) of Common Stock during May 2006.

     

    3.5 No
      Subsidiaries. The Company does not own, directly or indirectly, any capital
      stock or other ownership interest in any corporation, partnership, joint venture
      or other entity.

     

    3.6 Consents
      and Approvals; No Violations. Except for filings, permits, authorizations,
      consents and approvals as may be required under, and other applicable
      requirements of, the Securities Exchange Act of 1934 (the “Exchange Act”),
      Section ____ of the Nevada revised Statutes Chapter 78, neither the execution,
      delivery or performance of this Agreement by the Company nor the consummation
      by
      the Company of the transactions contemplated hereby will (i) conflict with
      or
      result in any breach of any provision of the certificate or articles of
      incorporation or bylaws of the Company, (ii) require any filing with, or permit,
      authorization, consent or approval of, any Governmental Entity (except where
      the
      failure to obtain such permits, authorizations, consents or approvals or to
      make
      such filings could not be reasonably expected to prevent or materially delay
      the
      consummation of the sell of the Shares), (iii) result in a violation or breach
      of, or constitute (with or without due notice or lapse of time or both) a
      default (or give rise to any right of termination, amendment, cancellation
      or
      acceleration) under, any of the terms, conditions or provisions of any note,
      bond, mortgage, indenture, license, lease, contract, agreement or other
      instrument or obligation to which the Purchaser is a party or by which it or
      any
      of its properties or assets may be bound or (iv) violate any order, writ,
      injunction, decree, statute, rule or regulation applicable to the Company or
      any
      of its properties or assets, except in the case of clauses (iii) and (iv) for
      violations, breaches or defaults that could not be reasonably be expected to
      have a material adverse effect on the Company or prevent or materially delay
      the
      consummation of the sell of the Shares.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.7 SEC
      Reports and Financial Statements. The Company
      has
      filed
      with the SEC, and has heretofore made available to the Vendors and Company
      true
      and complete copies of, all forms, reports, schedules, statements and other
      documents (other than preliminary materials) required to be filed by it under
      the Exchange Act from and after January 26, 2004 (such forms, reports,
      schedules, statements and other documents, including any financial statements
      or
      schedules included therein, are referred to as the “Company
      SEC
      Documents”). The Company
      SEC
      Documents, at the time filed, (a) did not contain any untrue statement of a
      material fact or omit to state a material fact required to be stated therein
      or
      necessary in order to make the statements therein, in light of the circumstances
      under which they were made, not misleading, and (b) complied in all material
      respects with the applicable requirements of the Exchange Act and the applicable
      rules and regulations of the SEC thereunder (and to the extent applicable,
      the
      PCAOB). The financial statements of the Company included in the Company SEC
      Documents (the “Company Financial Statements”), heretofore delivered to the
      Company, as of the dates thereof comply as to form in all material respects
      with
      applicable accounting requirements and with the published rules and regulations
      of the SEC and the PCAOB with respect thereto, have been prepared in accordance
      with GAAP applied on a consistent basis during the periods involved (except
      as
      may be indicated in the notes thereto or, in the case of the unaudited
      statements, as permitted by Rule 10-01 of Regulation S-X promulgated by the
      SEC)
      and fairly present (subject, in the case of the unaudited statements, to normal,
      recurring audit adjustments, none of which will be material) the consolidated
      financial position of the Company as at the dates thereof and the consolidated
      results of their operations and cash flows for the periods then ended.

     

    3.8 Absence
      of Certain Changes or Events. The
      Company, has conducted its businesses only in the ordinary course consistent
      with past practice, and there has not been any material adverse change with
      respect to the Company. Since the date of the last Company Financial Statements,
      there has not been (i) any declaration, setting aside or payment of any dividend
      or other distribution with respect to the Company’s capital stock or any
      redemption, purchase or other acquisition of any of its capital stock, (ii)
      any
      split, combination or reclassification of any of the Company’s capital stock or
      any issuance or the authorization of any issuance of any other securities in
      respect of, in lieu of or in substitution for shares of its capital stock,
      (iii)
      any material change in accounting methods, principles or practices by the
      Company (except insofar as may be required by a change in GAAP), (iv) (w) any
      granting by the Company, to any executive officer of the Company of any increase
      in compensation, except in the ordinary course of business (including in
      connection with promotions) consistent with past practice or as was required
      under employment agreements in effect as of the date of the last Company
      Financial Statements, (x) any granting by the Company to any such officer of
      any
      increase in severance or termination pay, except as part of a standard
      employment package to any person promoted or hired, or as was required under
      employment, severance or termination agreements in effect as of the date of
      the
      last Company Financial Statements, (y) except employment arrangements in the
      ordinary course of business consistent with past practice with employees other
      than any executive officer of the Company, any entry by the Company into any
      employment, severance or termination agreement with any such employee or
      executive officer, or (z) any increase in or establishment of any bonus,
      insurance, deferred compensation, pension, retirement, profit-sharing, stock
      option (including the granting of stock options, stock appreciation rights,
      performance awards or restricted stock awards or the amendment of any existing
      stock options, stock appreciation rights, performance awards or restricted
      stock
      awards), stock purchase or other employee benefit plan or agreement or
      arrangement, (v) any damage, destruction or loss, whether or not covered by
      insurance, that has or reasonably could be expected to have a material adverse
      effect on the Company, (vi) any amendments or changes in the certificate or
      articles of incorporation or bylaws of the Company, (vii) any material
      revaluation by the Company of any of its assets, including writing down the
      value of inventory or writing off notes or accounts receivable other than in
      the
      ordinary course of business,
      (viii)
      any increase in debt over $100,000.

     

    3.9 No
      Undisclosed Liabilities. 
      To the
      knowledge of the Company, except as and to the extent set forth in the Company
      SEC Documents, as of the date of the last Company Financial Statements, the
      Company has had no any liabilities or obligations of any nature, whether or
      not
      accrued, contingent or otherwise, that would be required by GAAP to be reflected
      on a consolidated balance sheet of the Company (including the notes thereto).
      To
      the knowledge of the Company, since the date of the last Company Financial
      Statements, except as and to the extent set forth in the Company SEC Documents
      and except for liabilities or obligations incurred in the ordinary course of
      business consistent with past practice, the Company have not incurred any
      liabilities of any nature, whether or not accrued, contingent or otherwise,
      that
      could be reasonably expected to have a material adverse effect on the Company,
      or would be required by GAAP to be reflected on a consolidated balance sheet
      of
      the Company, (including the notes thereto).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.10 Benefit
      Plans. The
      Company
      has
      no
      benefit plans or other plan, arrangement or policy (written or oral) relating
      to
      stock options, stock purchases, compensation, deferred compensation, bonuses,
      severance, fringe benefits or other employee benefits, maintained or contributed
      to, or required to be maintained or contributed to, by the Company
      for the
      benefit of any present or former employee, officer or director.

     

    3.11 Other
      Compensation Arrangements. Except as provided in this Agreement, as of the
      date
      of this Agreement, the Company
      is not a
      party to any oral or written (i) consulting agreement that is not terminable
      on
      not more than 30 calendar days notice, or union or collective bargaining
      agreement, (ii) agreement with any executive officer or other key employee
      of
      the Company
      (iii)
      agreement with a third party in which a Company
      officer
      or other employee is a shareholder, partner, consultant or employee or (iv)
      agreement or plan, including any stock option plan, stock appreciation right
      plan, restricted stock plan or stock purchase plan.

     

    3.12 Litigation. Except
      as
      disclosed in the Company SEC Documents, there is no suit, claim, action,
      proceeding or investigation pending before any Governmental Entity or, to the
      best knowledge of the Company, threatened against the Company that could
      reasonably be expected to have a material adverse effect on the Company or
      prevent or materially delay the consummation of the Purchase. Except as
      disclosed in the Company SEC Documents, the Company is not subject to any
      outstanding order, writ, injunction or decree that could reasonably be expected
      to have a material adverse effect on the Company or prevent or materially delay
      the consummation of the Purchase.

     

    3.13 Permits;
      Compliance with Law.
      The
Company
      hold all permits, licenses, variances, exemptions, orders and approvals of
      all
      Governmental Entities necessary for the lawful conduct of their respective
      businesses (the “Company Permits”), except for failures to hold such permits,
      licenses, variances, exemptions, orders and approvals that could not reasonably
      be expected to have a material adverse effect on the Company. The Company is
      in
      compliance with the terms of the Company Permits, except where the failure
      so to
      comply could not reasonably be expected to have a material adverse effect on
      the
      Company. Except as disclosed in the Company SEC Documents, to the knowledge
      of
      the Company, the businesses of the Company, is not being conducted in violation
      of any law, ordinance or regulation of any Governmental Entity, except for
      possible violations that could not reasonably be expected to have a material
      adverse effect on the Company or prevent or materially delay the consummation
      of
      the Purchase. As of the date of this Agreement, no investigation, inquiry or
      review by any Governmental Entity with respect to the Company is pending or,
      to
      the best knowledge of the Company, threatened, nor has any Governmental Entity
      indicated an intention to conduct any such investigation, inquiry or review,
      other than, in each case, those the outcome of which could not be reasonably
      expected to have a material adverse effect on the Company or prevent or
      materially delay the consummation of the Purchase. 

     

    3.14 Tax
      Matters.

     

    (a) The
      Company
      has
      filed all tax returns and reports required to be filed by it, the failure of
      which filing would be reasonably expected to have a material adverse effect
      on
      the Company
      or
      prevent or materially delay the consummation of the Purchase. All such returns
      are complete and correct in all material respects (except to the extent a
      reserve has been established on its most recent financial statements contained
      in the Company
      SEC
      Documents). The Company
      has
      paid
      all taxes required to be paid by it (without regard to whether a tax return
      is
      required or to the amount shown on any tax return), except taxes for which
      an
      adequate reserve has been established on its most recent financial statements.
      The most recent financial statements reflect an adequate reserve for all taxes
      payable by the Company
      for
      all
      taxable periods and portions thereof through the date of such financial
      statements. The unpaid taxes do not exceed that reserve as adjusted for the
      passage of time through the Closing Date in accordance with the past custom
      and
      practice of the Company
      in
      filing
      its tax returns.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) No
      material tax return of the Company
      is
      under
      audit or examination by any taxing authority, and no written or unwritten notice
      of such an audit or examination has been received by the Company.
      Each
      material deficiency resulting from any audit or examination relating to taxes
      by
      any taxing authority has been paid, except for deficiencies being contested
      in
      good faith. No material issues relating to taxes were raised in writing by
      the
      relevant taxing authority during any presently pending audit or examination,
      and
      no material issues relating to taxes were raised in writing by the relevant
      taxing authority in any completed audit or examination that can reasonably
      be
      expected to recur in a later taxable period. The tax returns of the Company
      have
      not
      been examined by and/or settled with any Governmental Entity. No claim has
      ever
      been made by an authority in a jurisdiction where the Company
      does
      not
      file tax returns that it is or may be subject to taxation by that
      jurisdiction.

     

    (c) With
      regard to the Company,
      there
      is no agreement or other document extending, or having the effect of extending,
      the period of assessment or collection of any taxes and no power of attorney
      with respect to any taxes has been executed or filed with any taxing
      authority.

     

    (d) No
      liens
      for taxes exist with respect to any assets or properties of the Company,
      except
      for liens for taxes not yet due.

     

    (e) The
      Company
      is not
      liable for taxes of any other person or is a party to or is bound by any tax
      sharing agreement, tax indemnity obligation or similar agreement, arrangement
      or
      practice with respect to taxes (including any advance pricing agreement, closing
      agreement or other agreement relating to taxes with any taxing
      authority).

     

    (f) The
      Company
      is not a
      party to any joint venture, partnership, or other arrangement or contract which
      could be treated as a partnership for tax purposes.

     

    (g) The
      Company
      has not
      entered
      into any sale leaseback or any leveraged lease transaction that fails to satisfy
      the requirements of Revenue Procedure 75-21 (or similar provisions of foreign
      law).

     

    (h) All
      material elections with respect to taxes affecting the Company
      are
      disclosed or attached to the Company’s
      tax
      returns.

     

    (i) There
      are
      no private letter rulings in respect of any tax pending between the Company
      and any
      taxing authority.

     

    3.15 Intellectual
      Property. The Company
      has
      no
      intellectual property.

     

    3.16 Labor
      Matters. The
      Company
      has no
      liabilities and we unaware of controversies with employees, which controversies
      could be reasonably expected to have a material adverse effect on the
Company.

     

    3.17 Title
      to
      Property.
      The
      Company has good and defensible title to all of its properties and assets,
      free
      and clear of all liens, charges and encumbrances, except liens for taxes not
      yet
      due and payable and such liens or other imperfections of title, if any, as
      do
      not materially detract from the value of or interfere with the present use
      of
      the property affected thereby or which could not reasonably be expected to
      have
      a material adverse effect; and, to the knowledge of the Company, all leases
      pursuant to which the Company leases from others material amounts of real or
      personal property are in good standing, valid and effective in accordance with
      their respective terms, and there is not, to the knowledge of the Company,
      under
      any of such leases, any existing default or event of default (or event which
      with notice or lapse of time, or both, would constitute a default), except
      where
      the lack of such good standing, validity and effectiveness or the existence
      of
      such default or event of default could not reasonably be expected to have a
      material adverse effect.

     

    3.18 Absence
      of Certain Payments.
      Neither
      the
      Company nor any of its affiliates, officers, directors, employees or agent
      or
      other people acting on behalf of any of them have (i) engaged in any activity
      prohibited by the United States Foreign Corrupt Practices Act of 1977, or any
      other similar law, regulation, decree, directive or order of any other country
      and (ii) without limiting the generality of the preceding clause (i), used
      any
      corporate or other funds for unlawful contributions, payments, gifts or
      entertainment, or made any unlawful expenditures relating to political activity
      to government officials or others. Neither
      the
      Company nor any of its affiliates, directors, officers, employees or agents
      of
      other persons acting on behalf of any of them, has accepted or received any
      unlawful contributions, payments, gifts or expenditures.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.19 Real
      Property. The Company does not own any real property nor is it a party to a
      lease that is (i) terminable on more than 30 days’ notice or (ii) could be
      reasonably expected to have a material adverse effect on the
      Company.

     

    4. Pre-emption
      Right.
      For so
      long as the Purchaser owns at least 100,000 Shares the Purchaser has the right
      to purchase its proportionate share of any new shares of Common Stock issued
      by
      the Company from treasury except for the issuance of shares (i) to employees
      or
      other service providers (in transactions with primarily non-financing purposes),
      (ii) to an investor that the board of directors determines to be a “strategic
      investor”, (iii) from the exercise of options or warrants or convertible
      securities or (iv) from conversion of debt. The procedure for, and the terms
      or
      conditions of, the exercise of this right are set out in Schedule
      B.

     

    5. Miscellaneous

    

    5.1  Notices.
      All
      notices and other communications provided herein shall be in writing and shall
      be deemed to have been duly given if delivered personally or sent by certified
      mail, postage prepaid, to a party's designated address set froth above, if
      sent
      by facsimile, to its facsimile number at such address.

    

    5.2
       Counterparts;
      Entire Agreement.
      This
      Agreement may be executed in counterparts. This Agreement constitutes the entire
      agreement between the parties hereto with respect to the subject matter
      hereof.

    

    5.3 Binding
      Effect.
      The
      provisions of this Agreement shall be binding upon and shall inure to the
      benefit of the parties hereto and their respective heirs, legal representatives,
      successors and assigns.

    

    5.4 Amendment.
      This
      Agreement may be amended only by a written instrument signed by the parties
      hereto which specifically states that it is amending this
      Agreement.

    

    5.5 Applicable
      Governing Law.
      This
      Agreement and the rights and obligations of the parties hereto shall be governed
      by and construed and enforced in accordance with, the laws of the State of
      New
      York. 

    

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

    

     

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

    

    

    The
      Medical Exchange Inc.

    

    

    By:______________________       

    

    

    Purchaser

    

    

    _________________________

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