Document:

Merrill Note:  this material is an insert in Item 7 under the heading

“Results of Operations

EXHIBIT

10.12

 

PLEDGE AGREEMENT

 

                                THIS PLEDGE

AGREEMENT is entered into as of this 9th day of August, 2001, by and

between LIQUITEK ENTERPRISES, INC., a Nevada corporation (“LEI”), Draper, Utah

84020  (the “Pledgor”), and BRUCE

H. HAGLUND, ESQ., of Gibson, Haglund & Paulsen, #2 Park Plaza, Suite 450,

Irvine, California  92614 (the “Agent”),

and BART C. WARNER REVOCABLE TRUST, whose address is 2240 South 5370 West, West

Valley City, Utah  84120  (the “Lender”).

 

W  I  T  N  E  S  S  E

T  H:

 

WHEREAS, pursuant to a Secured Promissory Note

dated as of the date hereof (the “Note”) between the Pledgor and the

Lender (the “Lender”), a copy of which is attached hereto as Exhibit “A”

and incorporated by reference herein, the Lender is simultaneously herewith

loaning to LEI $1,200,000.00 aggregate principal amount due August 9, 2002; and

 

                WHEREAS, as set forth in the Note, the Pledgor

has granted a security interest to the Lender in 1,932,300 shares of common

stock (the “Thermoflow Shares”) of Thermoflow Corporation (“Thermoflow”), which

represent all of the issued and outstanding shares of Thermoflow; and

 

WHEREAS, as a condition to the loan by the

Lender and to facilitate its conversion privilege hereunder, the Pledgor has

agreed to deposit the Thermoflow Shares with the Agent for the benefit of the

Lender, as more fully set forth herein;

 

NOW, THEREFORE,

in consideration of the foregoing and other good and valuable consideration,

receipt of which is hereby acknowledged, the parties hereto hereby agree as

follows:

 

 

1.             Definitions.  For the purposes hereof unless the context

otherwise requires, the following terms shall have the meanings indicated:

 

                                1.1           “Collateral” shall mean

(i) the Thermoflow Shares (hereinafter jointly referred to as the “Pledged

Securities”), (ii) all proceeds of the Pledged Securities, and (iii) all other

monies, securities or other property at any time and from time to time

receivable or otherwise distributed in respect of, or in exchange for, any of

the Pledged Securities or such additional securities.

 

                                1.2           “Event of Default” shall mean

an Event of Default as defined in the Note.

 

                                1.3           “Obligations” shall mean the

obligations of the Pledgor under the Purchase Agreement, the Note and this

Agreement.

 

 

2.             Pledge.  As security for the payment and performance

in full of all of the Obligations, the Pledgor hereby grants and pledges to the

Agent for the benefit of the Lender, and hereby grants to the Lender a security

interest in, the Collateral.

 

 

3.             Delivery of

Collateral to Agent. The Agent hereby acknowledges the prior delivery of

certificates representing all shares of the Pledged Securities, accompanied by

stock powers or instruments of transfer, as the case may be, duly executed in

blank by the Pledgor.

 

 

4.             Registration in

Nominee Name; Denomination. The Agent shall have the duty (i) to hold the

certificates or other instruments or documents representing any of the

Collateral in its own name, the name of its nominee or in the name of the

Pledgor, endorsed or assigned in blank or in favor of the Agent, and (ii) at

the election of the Lender to exercise its conversion privilege or upon the

occurrence and during the continuation of an Event of Default, to exchange the

certificates or other instruments or documents representing the Collateral for

certificates of smaller or larger denominations for any purpose consistent with

this Pledge Agreement.

 

 

5.             Representations,

Warranties and Covenants of the  Pledgor.  The Pledgor hereby represents and warrants to, and/or covenants

and agrees with, the Agent as follows:

 

                                5.1           this Pledge Agreement constitutes the

legal, valid and binding obligation of the Pledgor, enforceable in accordance

with its terms, subject (i) as to the enforcement of remedies, to applicable

bankruptcy, reorganization, insolvency and other laws affecting creditors

rights generally and to moratorium laws from time to time in effect, and (ii)

to general equitable principles;

 

                                5.2           the Pledgor has good title to the

Collateral;

 

                                5.3           the Collateral is not subject to any

other liens, security interests or encumbrances;

 

                                5.4           the Pledgor has the right to pledge

and to grant the security interest in the Collateral free of any encumbrances,

and without the consent of the creditors of the Pledgor or any other person or

any governmental authority whatsoever;

 

                                5.5  there is no material pending legal or

governmental proceeding to which the Pledgor is a party or to which any of its

properties is subject, which proceeding will materially affect (i) the

Pledgor’s ability to perform its obligations hereunder or (ii) the

Collateral;

 

                                5.6           this Pledge Agreement creates in

favor of the Lender a valid, binding and enforceable security interest in, and

lien upon, all right, title and interest of the Pledgor in the Collateral and,

upon delivery of the Collateral to the Agent, the Lender will have a fully

perfected first and prior security interest in and lien upon all right, title

and interest of the Pledgor in the Collateral; and

 

                                5.7           the Pledgor will not create or permit

to exist any lien, security interest or encumbrance on the Collateral except as

permitted by this Agreement.

 

 

6.             Voting Rights; Dividends; Etc.

 

                                6.1           The Pledgor shall be entitled to

exercise any and all voting and/or consensual rights and powers accruing to

owners of the Pledged Securities or any part thereof for any purpose not

inconsistent with the terms hereof, at all times, except as expressly provided

in Section 6.3 below.

 

                                6.2           Any dividends or distributions of any

kind whatsoever (in cash or otherwise) received by the Pledgor, whether

declared on a regular, periodic basis or resulting from a subdivision,

combination, or reclassification of the outstanding capital stock of the

issuer, in respect of the Pledged Securities, or received in exchange for the

Pledged Securities, or other Collateral or any part thereof or as a result of

any merger, consolidation, acquisition, or other exchange of assets to which

the issuer may be a party, or otherwise, shall, be and become part of the

Collateral pledged hereunder and shall immediately be delivered to the Agent to

be held subject to the terms hereof.

 

                                6.3           Upon the occurrence and during the

continuance of an Event of Default, all rights of the Pledgor to exercise the

voting and/or consensual rights and powers which it is entitled to exercise

pursuant

 

2

 

to Section 6.1

shall cease, and all such rights shall thereupon become vested in the Agent,

which shall have the sole and exclusive right and authority to exercise such

voting and/or consensual rights and powers.

 

 

7.             Remedies Upon

Default.

 

                                7.1           If an Event of Default shall have

occurred and be continuing, the Lender may take possession of the Collateral,

or any part thereof, at public or private sale or at any broker’s board or on

any securities exchange, for cash, upon credit or for future delivery as the

Agent shall deem appropriate subject to the terms hereof or as otherwise

provided in the Utah Uniform Commercial Code. 

The Lender shall be authorized at any such sale (if it deems it advisable

so to do) to restrict to the full extent permitted by applicable law the

prospective bidders or the Lender to persons who will represent and agree that

they are purchasing the Collateral for their own account for investment and not

with a view to the distribution or sale thereof, and upon consummation of any

such sale the Agent shall have the right to assign, transfer, and deliver to

the the Lender or the Lender thereof the Collateral so sold.  Each such the Lender at any such sale shall

hold the property sold absolutely, free from any claim or right on the part of

the Pledgor.

 

                                7.2           The Lender shall give the Pledgor ten

calendar days written notice of its intention to make any such public or

private sale, or sale at any broker’s board or on any such securities exchange,

or of any other disposition of the Collateral. 

Such notice, in the case of public sale, shall state the time and place

for such sale and, in the case of sale at a broker’s board or on a securities

exchange, shall state the board or exchange at which such sale is to be made

and the day on which the Collateral, or portion thereof, will first be offered

for sale at such board or exchange.  Any

such public sale shall be held at such time or times within ordinary business

hours and at such place or places as the Lender may fix and shall state in the

notice of such sale.  At any such sale,

the Collateral, or portion thereof, to be sold may be sold in one lot as an

entirety or in separate parcels, as the Lender may (in its sole and absolute

discretion) determine.  The Lender shall

not be obligated to make any sale of the Collateral if it shall determine not

to do so, regardless of the fact that notice of sale of the Collateral may have

been given.  The Lender may, without

notice or publication, adjourn any public or private sale or cause the same to

be adjourned from time to time by announcement at the time and place fixed for

sale, and such sale may, without further notice, be made at the time and place

to which the same was so adjourned.  In

case the sale of all or any part of the Collateral is made on credit or for

future delivery, the Collateral so sold shall be retained by the Agent until

the sale price is paid by the the Lender or the purchasers thereof, but the

Agent shall not incur any liability in case any such if the Lender or the

purchaser shall fail to take up and pay for the Collateral so sold and, in case

of any such failure, such Collateral may be sold again upon like notice.  At any sale or sales made pursuant to this

Section 7, the Lender may bid for or purchase, free from any claim or right of

whatsoever kind, including any equity of redemption, of the Pledgor, any such

demand, notice, claim, right or equity being hereby expressly waived and

released, any or all of the Collateral offered for sale, and may make any

payment on the account thereof by using any claim for moneys then due and

payable to the Lender by the Pledgor as a credit against the purchase price;

and the Agent, upon compliance with the terms of sale, may hold, retain and

dispose of the Collateral without further accountability therefor to the

Pledgor or any, third party.  The Agent

shall in any such sale make no representations or warranties with respect to

the Collateral or any part thereof and shall not be chargeable with any of the

obligations or liabilities of the Pledgor with respect thereto.  As an alternative to exercising the power of

sale herein conferred upon it, the Lender may proceed by a suit or suits at law

or in equity to foreclose upon the Collateral under this Pledge Agreement and

to sell the Collateral, or any portion thereof, pursuant to a judgment or

decree of a court or courts having competent jurisdiction.

 

 

8.             Application of

Proceeds of Sale.  The proceeds of

sale of the Collateral sold pursuant to Section 7 hereof shall be distributed

by the Agent (after deduction of all costs and expenses incurred by the Agent

while acting pursuant to this Pledge Agreement, including, without limitation,

reasonable attorneys’ fees and expenses) to the holder of the Note, to be

applied by the holder to the Obligations in such manner as it may deem

appropriate.

 

3

 

9.             Agent Appointed

Attorney-in-Fact. Upon the occurrence and during the continuance of an

Event of Default, the Pledgor hereby appoints the Agent its attorney-in-fact

for the purpose of carrying out the provisions of this Pledge Agreement and the

pledge of, and the grant of a security interest in, the Collateral hereunder

and the taking of any action and the execution of any instrument which the

Agent may deem necessary or advisable to accomplish the purposes hereof, which

appointment is irrevocable and coupled with an interest.  Without limiting the generality of the

foregoing, the Agent shall have the right and power to receive, endorse and

collect all checks and other orders for the payment of money made payable to

the Pledgor representing any dividend or other distribution payable in respect

of the Collateral or any part thereof and to give full discharge for the same.

 

 

10.           Federal

Securities Laws.  In view of the

position of the Pledgor in relation to the Collateral, or because of other

present or future circumstances, a question may arise under the Securities Act

of 1933, as amended, as now or hereafter in effect, or any similar statute

hereafter enacted analogous in purpose or effect (such Act and any such similar

statute as from time to time in effect being hereinafter called the “Federal

Securities Laws”), with respect to any disposition of the Collateral

permitted hereunder.  The Lendor

understands that compliance with the Federal Securities Laws may very strictly

limit the course of conduct of the Agent if the Agent were to attempt to

dispose of all or any part of the Collateral, and may also limit the extent to

which or the manner in which any subsequent transferee of any Collateral may

dispose of the same.  Similarly, there

may be other legal restrictions or limitations affecting the Agent in any

attempt to dispose of all or any part of the Collateral under applicable blue

sky or other state securities laws, or similar laws analogous in purpose or

effect.  Under applicable law, in the

absence of an agreement to the contrary, the Agent may perhaps be held to have

certain general duties and obligations to the Pledgor to make some effort

towards obtaining a fair price even though the Obligations may be discharged or

reduced by the proceeds of a sale at a lesser price.

 

 

11.           Financing

Statements.  So long as the

Obligations are outstanding and the security interest hereunder shall not have

terminated in accordance with Section 13 hereof, the Pledgor agrees to execute

and deliver to the Agent such UCC financing statements and any amendments

thereto or continuations thereof and any other documents or instruments and to

give such notices as the Lender may deem necessary or desirable to perfect the

lien of the Lender on the Collateral. 

If the Pledgor does not execute and deliver to the Lender any such

financing statement, amendment or other document or instrument or give such

notice within five calendar days after requested by the Lender, then the Lender

is hereby authorized by the Pledgor to file such items or give such notice,

without the signature of the Pledgor or require the Agent to execute such items

as attorney-in-fact for the Pledgor. 

The Pledgor further authorizes the Agent, upon the occurrence and during

the continuation of an Event of Default, to notify any obligors on instruments

that all sums payable to the Pledgor relating to the collateral shall be paid

directly to the Lender.

 

 

12.           Further

Assurances.  Upon the request of the

Lender, the Pledgor hereby agrees duly to execute and deliver, or cause to be

duly executed and delivered, from time to time, at the cost and expense of the

Pledgor, such further instruments as may be necessary or proper, in the

reasonable judgment of the Lender, to carry out the provisions and purposes of

this Pledge Agreement and to do all things necessary or advisable, in the

judgment of the Lender, to perfect and preserve the pledge and the security

interests of the Lender hereunder and in the Collateral or any portion thereof.

 

 

13.           Release of

Collateral.

 

                                13.1         The pledge and grant of the security

interest in all of the Collateral hereunder shall terminate upon payment in

full of the Obligations or conversion, redemption or prepayment in full of all

of the Notes pursuant to Section 2 of the Purchase Agreement.

 

                                13.2         At such time as the pledge and security

interest hereunder shall terminate, the Lender shall, if requested by the

Pledgor, execute such UCC termination statements or other documents as Pledgor

 

4

 

may reasonably

request, and assign and deliver to the Pledgor, or to such person or persons as

the Pledgor shall designate, against receipt, such of the Collateral (if any)

as shall not have been sold or otherwise applied by the Lender pursuant to the

terms hereof, together with appropriate instruments of reassignment and release

and share certificates representing the Collateral and any stock power or

instrument of transfer executed in blank, as the case may be, then remaining in

the possession or under the control of the Lender or the Agent.  Any such reassignment shall be without

recourse upon or warranty by the Lender (other than as to such Collateral being

free of any lien or encumbrance created by the Lender) and at the expense of

the Pledgor.

 

 

14.           Notices.  Notices and other communications provided

for herein shall be in writing and shall be delivered by hand or shall be sent

by telecopy (and if sent by telecopy, shall be confirmed by registered mail,

return receipt requested, or by overnight mail or courier, postage and delivery

charges prepaid), to the following addresses:

 

if to the Pledgor:

 

Liquitek Enterprises, Inc.

Attention:  Chief Executive

Officer

1350 East Draper Parkway

Draper, Utah 84020

Phone Number:     (801) 553-8753

Fax Number:                                          (801)

552-8768

 

if to the Agent:

 

Bruce H. Haglund, Esq.

Gibson, Haglund & Paulsen

2 Park Plaza, Suite 450

Irvine, California  92614

Phone Number:     (949) 752-1100

Fax Number:                                          (949)

752-1144

 

if to the Lender:

 

Bart C. Warner Revocable Trust

Attention:

2240 South 5370 West

West Valley City, Utah  84120

Phone Number:     (801) 978-8016

Fax Number:                                          (801)

978-8010

 

with a copy to:

 

Mark S. Swan, Esq.

Richer, Swan &

Overholt

6925 South Union Park

Center, Suite 450

Midvale, Utah  84047

Phone Number:     (801) 561-4750

Fax Number:                                          (801)

561-4744

 

Whenever any

notice is required to be given hereunder, such notice shall be deemed given and

such requirement satisfied only when such notice is delivered or, if sent by

telecopy, when received.  Addresses may

be changed upon notice of such change given as provided in this Section 14.

 

5

 

15.           Survival of

Representations and Warranties.  All

covenants, agreements, representations and warranties made herein and in any

certificates delivered pursuant hereto shall survive the purchase by the

Lender, and the execution and delivery, of the Notes pursuant to the Purchase

Agreement, and shall continue in full force and effect until the payment in

full of the Obligations or the, conversion, redemption or prepayment of all of

the Notes pursuant to Section 2 of the Purchase Agreement, regardless of the

release of part or all of the Collateral pursuant to the provisions of Section

13 hereof.

 

 

16.           Successors.  Whenever in this Pledge Agreement any of the

parties hereto is referred to such reference shall be deemed to include the

successors and assigns of such party, and all covenants, promises and

agreements by or on behalf of the parties which are contained in this Pledge

Agreement shall bind and inure to the benefit of the successors and assigns of

all other parties.

 

 

17.           Reimbursement of

Agent.  The Pledgor agrees to pay

all costs and fees of the Agent resulting from this Pledge Agreement and to

indemnify and hold the Lender harmless from and against any and all such costs.

 

 

18.           Indemnification

by Pledgor.  The Pledgor hereby

indemnities and holds harmless the Lender (to the fullest extent permitted by

applicable law) from and against, and agrees that the Lender shall have no

liability or obligation arising out of, any and all claims, demands, losses,

judgments, liabilities, penalties and expenses (including, without limitation,

reasonable attorneys’ fees and disbursements) of any nature whatsoever, arising

out of or related to this Pledge Agreement or the Collateral, including with

respect to the Collateral any such claims (i) asserted before the taking of

actual possession or control of the relevant Collateral by the Lender pursuant

to this Pledge Agreement, (ii) arising out of any act of, or omission to act on

the part of, any party prior to such taking of actual possession or control by

the Lender (whether asserted before or after such taking of possession or

control), or (iii) arising out of any act on the part of the Pledgor, its

agents or affiliates before or after the commencement of such actual possession

or control by the Lender.

 

All indemnities contained in this Section 18 shall survive the

expiration or earlier termination of this Pledge Agreement.

 

 

19.           Governing Law.  This Pledge Agreement shall be governed by,

and construed in accordance with, the laws of the State of Utah (other than any

conflict of laws rule which might result in the application of the laws of any

other jurisdiction).

 

 

20.           Failure to Act

Not a Waiver.  Neither any failure

to exercise, nor any delay on the part of the Agent in exercising, any right,

power or privilege hereunder shall operate as a waiver thereof, nor shall a

single or partial exercise thereof preclude any other or further exercise of

any right, power or privilege.

 

 

21.           Modification.  No modification, amendment or waiver of any

provision of this Pledge Agreement, and no consent to any departure by the

Pledgor herefrom, shall in any event be effective unless the same shall be in

writing and signed by the Agent, and then such waiver or consent shall be

effective only in the specific instance and for the purpose for which given.  No notice to or demand on the Pledgor in any

case shall entitle the Pledgor to any other or further notice or demand in the

same, similar or other circumstances.

 

 

22.           Severability.  In case any one or more of the provisions

contained in this Pledge Agreement should be invalid, illegal or unenforceable

in any respect, the validity, legality and enforceability of the remaining

provisions contained herein shall not in any way be affected or impaired

thereby.  To the extent permitted

 

6

 

by applicable law,

the parties hereby waive any provision of law that may render any provision

hereof invalid, illegal or unenforceable in any respect.

 

 

23.           Counterparts.  This Pledge Agreement may be executed by the

parties hereto in separate counterparts, each of which when so executed and

delivered shall be an original, but all such counterparts shall together

constitute one and the same instrument, and all signatures need not appear on

any one counterpart.

 

 

24.           Headings.  The headings and captions of this Pledge

Agreement are for convenience of reference only and shall not define, limit or

otherwise affect any of the terms or provisions hereof.

 

(The remainder of this page is

intentionally blank.  The signature page

follows.)

 

7

 

IN

WITNESS WHEREOF,

the Pledgor and the Agent have caused this Secondary Pledge Agreement to be

executed by their respective duly authorized officers, all as of day and year

first above written.

 

	

  The Pledgor:

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  LIQUITEK ENTERPRISES, INC.

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

  By:

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  Lester W.B. Moore, President/CEO

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  The Agent:

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

  BRUCE H. HAGLUND

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  The Lender:

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  BART C. WARNER REVOCABLE TRUST

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

  By:

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  , Trustee

  	

   

  	

   

  	

   

  
												

 

 

8SECURITIES AND EXCHANGE COMMISSION

EXHIBIT 10.13
 

Those Persons Listed at Schedule One

 

 

 

Liquitek Enterprises, Inc

 

Agreement Amending Agreement for the

Acquisition

of Certain Ordinary Shares and Rights

of

Distech Limited by Liquitek Enterprises

 

KPMG

Legal

Solicitors

Auckland

& Wellington

 

 

 

 

Agreement                                             dated                     2001

 

 

Parties

1              Those Persons Listed at Schedule

One both jointly and severally (“the Stockholders”)

 

2              Liquitek Enterprises, Inc a

Nevada Corporation  (“Liquitek”)

 

 

Background

 

A             The parties are all

parties to the Principal Agreement.

 

B                                        The Principal Agreement contains certain

rights of recission by the Stockholders in the case of a failure by Liquitek to

satisfy certain funding requirements.

 

C                                        The parties have agreed that such

recission rights will be further amended to allow Liquitek an extended

opportunity to raise the required funds for the ongoing support of Distech.

 

D                                       The parties have agreed to enter into

this Agreement to amend the necessary provisions of the Principal Agreement to

reflect these changes.

 

Agreement

 

Interpretation

Definitions:  In this Agreement unless the context

otherwise requires:

“Agreement”

means this amending agreement including the background provisions and schedule;

 

“Distech” means Distech Limited;

 

“Insolvency Event” means, in respect of

Liquitek:

 

if

an application or order is made, or a resolution is passed or proposed to be

passed for the liquidation of the company or its removal from the register, or

the company ceases to carry on business;

if a

receiver, manager, statutory manager, trustee, administrator, inspector, or

similar official is appointed in respect of the company or any of its assets

whether by a court, by the company, by its creditors or otherwise;

if

an assignment, arrangement or composition for the benefit of or with creditors

is proposed or made, or a moratorium or administration is proposed, ordered or

arranged;

 

2

 

if

any holder of a Secured Interest in any asset of the company enters into or

takes possession of such asset or takes any other step to realise or enforce

such Secured Interest; or

if

the company is placed into Chapter 7 or an application is made to place the

company into Chapter 7 or any other similar circumstance;

“Principal Agreement” means the Agreement

for the Acquisition of Certain Ordinary Shares and Rights of Distech Limited by

Liquitek Enterprises, Inc, dated 30 November 2000 and between Liquitek and the

Stockholders; and

 

“Secured Interest” includes any mortgage,

charge, assignment with equity of redemption, encumbrance, lien, pledge, trust,

sale and leaseback or buyback arrangement, hire purchase, financial lease,

retention of title, and any other arrangement by which a creditor obtains

security over an asset or contingent asset of a company, and includes any such

interest imposed on or suffered by a company by court order or otherwise by

law.

 

Definitions

in the Principal Agreement:  In this Agreement, any term not defined in

this Agreement but which is defined in the Principal Agreement will, unless the

context otherwise requires, have the meaning given to that term in the

Principal Agreement.

 

Principal Agreement Amended

Amendments:  With effect from the date of this Agreement

clause 1.4.2 of the Principal Agreement will be amended as follows:

The

Stockholders will have the right to rescind the Principal Agreement by giving

written notice to Liquitek at any time up to [31 October 2001] and otherwise in

accordance with the procedure set out in clause 1.4.2 if:

Liquitek fails by September 30, 2001 to

raise the total sum of US$5,000,000 as required by clause 1.4.2 of the

Principal Agreement; or

Before September 30, 2001 Liquitek notifies

the Stockholders that it is ceasing its attempts to raise the total sum of

US$5,000,000 required by clause 1.4.2 of the Principal Agreement; or

An Insolvency Event occurs prior to or on

September 30, 2001.

Should

such recission rights be exercised by the Stockholders, then in respect of any

amounts advanced by Liquitek to Distech from the date of the LOI through to

September 30, 2001:

If no Insolvency Event has occurred prior

to September 30, 2001, then Distech will remain liable to repay to Liquitek the

amount so advanced being, at the time of this Agreement US$1,500,000, in

accordance with the provisions of clause 1.4.2 of the Principal Agreement; and

If an Insolvency Event has occurred prior

to September 30, 2001, then Distech will be immediately released from its

obligations to repay 

 

3

 

any such sums advanced by Liquitek to

Distech, and Liquitek will have no further rights to claim such sums from

Distech, the Stockholders or any other person whatsoever.

Application

to Remaining Stockholders:  The parties agree that, in accordance with

the provisions of clause 3.2 of the Principal Agreement, the Remaining

Stockholders are also provided with the above mentioned recission rights, and

that the rights of recission provided to the Remaining Stockholders are

hereafter amended for the benefit of such Remaining Stockholders in accordance

with clause 2.1 above.

No

Other Changes:  Subject to clause 2.1, in all other respect

the Principal Agreement will remain unchanged and continue to bind and be

enforceable against the Stockholders and Liquitek.

 

	

  Execution

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Signed on behalf of Detroit Investments

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Limited by:

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Name:[

  	

  ]

  	

   

  	

   

  	

   

  	

   

  
	

  Director

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Name:[

  	

  ]

  	

   

  	

   

  	

   

  	

   

  
	

  Director

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Signed on behalf of Milcon Developments

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  (NZ)

  Limited by:

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Name:[

  	

  ]

  	

   

  	

   

  	

   

  	

   

  
	

  Director

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Name:[

  	

  ]

  	

   

  	

   

  	

   

  	

   

  
	

  Director

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Signed on behalf of Harvey Nominees

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Limited by:

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

4

 

	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Name:[

  	

  ]

  	

   

  	

   

  	

   

  	

   

  
	

  Director

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Name:[

  	

  ]

  	

   

  	

   

  	

   

  	

   

  
	

  Director

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Signed on behalf of Kauri Stock

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Limited by:

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Name:[

  	

  ]

  	

   

  	

   

  	

   

  	

   

  
	

  Director

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Name:[

  	

  ]

  	

   

  	

   

  	

   

  	

   

  
	

  Director

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Signed on behalf of Dairy Improvements

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Limited by:

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Name:[

  	

  ]

  	

   

  	

   

  	

   

  	

   

  
	

  Director

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Name:[

  	

  ]

  	

   

  	

   

  	

   

  	

   

  
	

  Director

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Signed on behalf of de la Cour Investments

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Limited by:

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Name:[

  	

  ]

  	

   

  	

   

  	

   

  	

   

  
	

  Director

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

5

 

	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Name:[

  	

  ]

  	

   

  	

   

  	

   

  	

   

  
	

  Director

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Signed on behalf of Liquitek Enterprises, Inc

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  by:

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Name:[

  	

  ]

  	

   

  	

   

  	

   

  	

   

  
	

  Director

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

 

6

 

Schedule 1

The Stockholders

 

7

 

The Stockholders are:

 

Detroit Investments Limited, a

company incorporate at Auckland;

Milcon Developments (NZ)

Limited, a company incorporate at Auckland;

Harvey Nominees Limited, a

company incorporated at Auckland;

Kauri Stock Limited, a company

incorporated at Auckland;

Dairy Improvements Limited, a

company incorporated at Auckland; and De la Cour Investments Limited, a company

incorporated at Hamilton.

 
 
8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]