Document:

Unassociated Document

CONFIDENTIAL

 

SHAREHOLDERS AGREEMENT

This Agreement (this “Agreement”), effective as of 31st August, 2011 (the Effective Date"), summarizes the intentions and mutual understandings of and between FUTENCO AG  (“NEWCO”) of  ______________________________ and CLENERGEN CORPORATION (CLENERGEN) of 3753 Howard Hughes Parkway, Suite 200, Las Vegas, NV 89169, USA . NEWCO and CLENERGEN are hereafter collectively referred to as the “Parties” or individually as the “Party.”

This Agreement will confirm the desire of the Parties regarding working together to develop renewable energy opportunities in various global markets. All Parties will retain their independent entities and hereby agree to work expeditiously and in good faith toward the successful completion of this agreement between the Parties, referred to as the (“Agreement”) and all agreements and transactions contemplated thereby.

BACKGROUND

Whereas NEWCO:

	
  

	
1.

	
Is committed to smart, sustainable, energy solutions and accepting of the challenges to improve economic growth, environmental protection and social development, and job creation including the protection and cleaning of the environment.

	
  

	
2.

	
Is committed to green energy and accepting of the challenges to improve economic growth, environmental protection and social development by the development of Renewable Energy technologies.

	
  

	
3.

	
Possesses experience in funding various renewable energy developments.

	
  

	
4.

	
Possesses significant construction management, federal contracting, operations, and financial experience.

	
  

	
5.

	
Has significant management and operations experience in renewable energy development.

 

	
  

	
6.

	
Partners with leading utility companies, installers, energy resellers and distributors across the world to deliver high quality and timely products and services.

	
  

	
7.

	
Delivers effective power production solutions that include on-site construction management, quality control, maintenance, performance tracking, and hardware and communications options to meet dynamic and unique operational business requirements.

	
  

	
8.

	
Retains strategic relationships with major renewable energy contractors, suppliers and closely related entities.

  

1

  

CONFIDENTIAL

Whereas CLENERGEN:

	
  

	
1.

	
Is a publicly-traded company with its common stock quoted in the USA on the OTCQB Market (Symbol: CRGE) and in Germany on the First Quotation Board, Open Market of the Frankfurt Stock Exchange (Symbol : 9CE)

	
  

	
2.

	
Offers strategic clean energy generation and supply of proprietary and mixed biomass feedstock to address the requirement for renewable and sustainable supplies of electricity clean energy  for captive end users, islands, mining companies, government or privately-owned power grid systems and other end users.

	
  

	
3.

	
Produces high-density, short-rotation biomass energy crops on a commercial scale at a cost of production equivalent to or less than the price of coal using a proprietary integrated farming model.

	
  

	
4.

	
Supplies fuel (wood chips) for producing renewable energy. CLENERGEN, using proven conversion technologies which include but not limited to Gasification (electricity), Combustion Steam (electricity), Pelletisation (pellets), Rapid Thermal Processing (Pyrolysis Oil, ASTM standard Heating/transport fuel).

	
  

	
5.

	
Has subsidiary operations based in Guyana, Ghana, and the Philippines.

	
  

	
6.

	
Offers experienced management teams in the fields of agronomy, plant science, chemical and mechanical engineering, supply chain management

	
  

	
7.

	
Has strategic and exclusive agreements with suppliers for plant science and technology and retains Intellectual property rights for the application of Polyploidisation which results in up to 40% increased growth for trees and grasses.

 

Whereas, the Parties propose to take ownership of CLENERGEN PHILIPPINES CORPORATION, a Philippine corporation organized under Philippine laws with office address at Unit 311, The Annex, No. 24 Gen. Araneta Street, San Antonio Village, Pasig City, Philippines, herein referred to as “CPC”.

Now, therefore, in recognition of the value inherent in the Parties’ respective businesses and the complementary natures of their specific capabilities, the Parties agree to enter into this agreement.

	
  

	
1.

	
The Parties will use their best efforts and undertake all necessary steps to finalize and execute the proposed Agreement under the terms below.

 

OPERATIONAL STRUCTURE

 

  

2

  

 

CONFIDENTIAL

 

	 	
2.

	
NEWCO and  CLENERGEN agree to the following terms regarding CPC:

 

	 	
2.1

	
NEWCO shall invest $400,000 into CPC on or before August 31st, 2012;

 

	
  

	
2.2

	
NEWCO shall assume 60% ownership of CPC;

 

	
  

	
2.3

	
CLENERGEN shall retain 40% ownership of CPC;

 

	
  

	
2.4

	
Revenue share shall be 60% NEWCO and 40% CLENERGEN;

 

	
  

	
2.5

	
NEWCO shall buy out CLENERGEN’s 40% ownership for $1.00 upon CLENERGEN going into administration;

 

	
  

	
2.6

	
NEWCO shall use its best efforts to secure the funding of the initial phase Renewable Energy Project, hereby called the “Romblon Project” by December 31st, 2012;

 

2.6.a  If funding for the Romblon project has not been secured by December 31st,       2012, then CLENERGEN shall have the option to purchase back 60% from NEWCO for the amount of $425,000 and all monies invested into CPC by NEWCO;

 

	 	
2.7 

	
NEWCO shall retain an option to purchase CLENERGEN’s 40% ownership in CPC for the fair market value, for a period of one year or a time frame mutually agreed upon;

 

	 	
2.8

	
NEWCO shall retain 100% control and Management of CPC;

 

	 	
2.9

	
CLENERGEN shall retain the option to purchase 11% of CPC from NEWCO for a mutually agreed upon amount, upon CLENERGEN graduating to the AMEX Stock Market;

 

2.9.a  In the event that CLENERGEN exercises this option, NEWCO shall still retain 100% control and management of CPC;

 

	 	
2.11

	
CPC’s board of directors shall consist of Miguel Patolot, Tony Gimenez, Carey Nash and Mark Quinn with a vote to be held to determine the Executive Chairman of the Board;

 

	 	
2.12

	
Carey Nash shall be the Chief Executive Officer of CPC;

 

	 	
2.13

	
NEWCO’s investment of $400,000, contributed to CPC, shall be under the executive management of CPC;

 

	 	
2.14

	
Each Party shall be responsible for its expenses in connection with the transactions contemplated by this Agreement, subject to each Party’s discretion;

 

  

3

  

 

CONFIDENTIAL

 

EQUITY/ FINANCIAL  CONTRIBUTIONS.

	
  

	
3.

	
CPC will initially require $400,000 which shall be funded by NEWCO.

ADDITIONAL ITEMS

	
  

	
4.

	
Additional Obligations of the Parties

 

4.1           The Parties represent to each other the absence of any pending or threatened litigation; proceeding or investigation that challenges or seeks to restrain or prohibit the transactions contemplated herein or shall obtain other relief in connection therewith.

	
  

	
5.

	
CONDUCT OF BUSINESS. Except as set forth in this Agreement, from the date hereof until the Closing Date or the termination of this Agreement, the Parties will conduct each of their existing businesses in its normal and ordinary course.

	
  

	
6.

	
NOTICES. All notices or other information deemed required or necessary to be given to any of the Parties shall be given at the following addresses via certified mail and fax transmittal to the aforesaid addresses.

	
  

	
7.

	
FORCE MAJURE. Neither Party shall be deemed to be in breach or default of the Agreement as the result of any delay or nonperformance that is caused by flood, fire, storm, earthquake, or other act of god, war acts of the public enemy, riot, civil disturbance, strike, network outage, lockout or labor dispute, provided that the party whose performance is affected shall provide prompt written notice of delay or non-performance to the other Party and shall use commercially reasonable efforts to minimize the impact of the such delay or non-performance on the other Party.

	
  

	
8.

	
GOVERNING LAW AND JURISDICTION.  The Agreement will be governed by the laws of Germany.  For disputes arising out of the Agreement, the Parties will consent to the jurisdiction of the local courts located in Frankfurt, Germany.

	
  

	
9.

	
CONFIDENTIALITY.  The Parties hereto agree that they will not at any time during the Term of this Agreement, without the prior written consent of each of the Parties, disclose the existence of, or the terms and conditions set forth in this Agreement unless otherwise required by law or regulation.  In addition, all information shared by the Parties with each other pursuant to this Agreement shall be presumed confidential and proprietary and each Party hereby agrees to maintain all such information in confidence.  Only those individuals and representatives of the Parties or prospective investors in the newly formed entity, and its respective legal and financial advisors, with a need to know and for the sole basis of advising the respective Parties concerning the transactions contemplated hereby, shall be permitted to receive knowledge of the information contained herein.  Information that is or becomes generally available or known to the public through no fault of the Parties, is subsequently disclosed by a Party to this Agreement to a third party that is not also under any obligation of confidentiality, or is required to be disclosed pursuant to a judicial process, government investigation, legal proceeding or other similar process shall not be considered confidential for the purposes of this Agreement.

  

4

  

 

CONFIDENTIAL

 

	
  

	
 

	
 
The Parties hereby agree not to circumvent one another by directly contacting third parties introduced by the other relating to the transactions contemplated by the parties without the express written consent of the Disclosing Party

 

	
  

	
10.

	
COUNTERPARTS. This Agreement may be executed in any number of counterparts and each counterpart shall be deemed to be an original instrument, but all of such counterparts together shall constitute but one agreement.

	
  

	
11.

	
OTHER TERMS.  The Agreement will include other standard terms as the Parties mutually agree.

	
  

	
12.

	
ENTIRE AGREEMENT. This Agreement shall operate as the definitive binding agreement and shall supersede and replace all prior or contemporaneous communications (written or oral) between the Parties and their representatives and may only be modified or amended by a writing signed by the Parties.  This Agreement contains the sole and entire agreement and understanding of the Parties with respect to the entire subject matter hereof and any and all prior discussions, negotiations, agreements, communications and understandings related hereto are hereby merged herein. No representations, or otherwise, expressed or implied, other than those contained herein have been made by any Party hereto.

	 
 
FUTENCO AG:

	 	 
 
CLENERGEN CORPORATION:

	 	 	 	 	 
	By:	/s/ Jan Malkus	 	By:	/s/ MLM Quinn 
	 	 	 	 	 
	Print:   	 	 	Print: 	 
Mark LM Quinn, CEI

	 	 	 	 	 
	Date: 	31.08.2011    	 	Date:  	31st August, 2011  

 

  

5Unassociated Document

SCHEDULE ONE

LICENSE AGREEMENT

Licensed Technologies for exclusive use within the territories defined under the License Agreement

This Agreement (this “Agreement”), effective as of September 1, 2011 (the Effective Date"), summarizes the intentions and mutual understandings of and between FUTENCO AG  (“NEWCO”) of  ______________________________ and CLENERGEN CORPORATION (CLENERGEN) of 3753 Howard Hughes Parkway, Suite 200, Las Vegas, NV 89169, USA . NEWCO and CLENERGEN are hereafter collectively referred to as the “Parties” or individually as the “Party.”

This Agreement will confirm the desire of the Parties regarding working together to develop renewable energy opportunities in various global markets. All Parties will retain their independent entities and hereby agree to work expeditiously and in good faith toward the successful completion of this agreement between the Parties, referred to as the (“Agreement”) and all agreements and transactions contemplated thereby.

Now, therefore, in recognition of the value inherent in the Parties’ respective businesses and the complementary natures of their specific capabilities, the Parties agree to enter into this agreement.

Terms of Agreement:

	
  

	
1.

	
CLENERGEN shall grant FUTENCO AG  the licenses of any Intellectual Property (IP) held by CLENERGEN, and without limitation  including:

	
  

	
a.

	
EXCLUSIVE RIGHTS to a  license of any IP currently held by CLENERGEN in the following territories:

	
  

	
i.

	
Ghana

	
  

	
ii.

	
Guyana

	
  

	
iii.

	
Philippines

	
  

	
b.

	
FIRST RIGHTS OF REFUSAL to an exclusive license of any IP currently held by CLENERGEN of which licensing fees, royalties and or equity participation will be mutually agreed upon between the parties on a project by project basis. In the event that no projects are implemented within the next 12 month period, such first rights of following territories will be cancelled.

c.

	
  

	
i.

	
Saipan

	
  

	
ii.

	
Guam

	
  

	
iii.

	
Brazil

	
  

	
iv.

	
Bahamas

	
  

	
v.

	
Dominican Republic

	
  

	
vi.

	
Haiti

	
  

	
vii.

	
Puerto Rico

 

  

  

  

 

	
  

	
d.

	
EXCLUSIVE DISTRIBUTION RIGHTS for the distribution of any and all IP held by CLENERGEN  in the following territories:

	
  

	
i.

	
Ghana

	
  

	
ii.

	
Guyana

	
  

	
iii.

	
Philippines

	
  

	
e.

	
FIRST RIGHTS OF REFUSAL exclusive distribution rights  of any IP currently held by CLENERGEN of which licensing fees, royalties and or equity participation will be mutually agreed upon between the parties on a project by project basis. In the event that no projects are implemented within the next 12 month period, such first rights of following territories will be cancelled.

	
  

	
i.

	
United States

	
  

	
ii.

	
Japan

	
  

	
iii.

	
South Korea

	
  

	
iv.

	
Saipan

	
  

	
v.

	
Guam

	
  

	
vi.

	
Brazil

	
  

	
vii.

	
Bahamas

	
  

	
viii.

	
Dominican Republic

	
  

	
ix.

	
Haiti

	
  

	
x.

	
Puerto Rico

	
  

	
f.

	
EXCLUSIVE RIGHTS to  IP held by CLENERGEN in the above territories shall include but not be limited to

	
  

	
g.

	
:

	
  

	
i.

	
The supply of high yielding bamboo saplings (“bamboo”) produced from tissue culture and shipped as net potted plants that are identical in character, asexual, non evasive, disease free at origin, non flowering and with a lifespan of 50 years. The price per sapling supplied in net potted plants will be supplied at cost plus 30% markup.

	
  

	
ii.

	
The supply of a  variety of Melia dubia saplings produced from cuttings and shipped as net potted plants, which can be harvested within  24 months from the date of planting and re-grow from their stub for up to 4 cycles before replanting. The price per sapling supplied in net potted plants will be supplied at cost plus 30% markup

	
  

	
iii.

	
The right to all improved strains and/or mother stock to the bamboo, Melia dubia and Marjestica.

	
  

	
iv.

	
The rights to new varieties of bamboo and Melia dubia produced from polyploidisation supplied and intellectual property and breeding rights for use within the licensed territories.

	
  

	
v.

	
All planting materials and fertilisers/pesticides will be supplied at invoiced cost price. Any and all discounts Clenergen receives from suppliers will be passed onto licensor.

 

  

  

  

 

	
  

	
vi.

	
The right to other species of tree or grass that Clenergen develops as an energy crop.

	
  

	
vii.

	
Access to all due diligence documentation pertaining to agronomy and technologies used by Clenergen for conversion of wood chips to energy and other products.

	
  

	
viii.

	
The right to use bamboo, Melia dubia and/or Marjestica as fuel for  gasification biomass power plants supplied by Ankur gasifiers along with manufacturing rights within the licensed territories as provided by the technology supplier.

	
  

	
ix.

	
The supply of Ankur gasifiers and exclusive territorial  rights to use of             Ankur Gasifiication power plants in all all territories listed in section 1a. and 1b. The Equipment will be supplied at cost plus 15% mark up (exlusive of applicable taxes.

	
  

	
x.

	
The right to use bamboo, Melia dubia and/or Marjestica as fuel for Envergent’s Rapid Thermal Processing Technology for producing Pyrolysis oil for use/sale to third parties within the licensed territories, inclusive of all test data and due diligence/verification  documentation.

	
  

	
xi.

	
The right to license any and all future renewable conversion technologies that may be developed and used by Clenergen in the future.

	
  

	
xii.

	
The right to use bamboo, Melia dubia and/or Marjestica as fuel for  producing wood pellets for use/sale to third parties within the licensed territories, inclusive of all test data and due diligence/verification  documentation.

	
  

	
xiii.

	
Nursery, Plantation Management, Scientific training services, which will be billed at cost.

	
  

	
xiv.

	
The supply of Agri Extension kit (1 Hectare = 1 Kit) at a cost price of $150.00 per box, including agronomy manual and one (1) full time nursery/plantation manager per 100 boxes shipped, anywhere in the licensed territories.

	
  

	
xv.

	
The use of Clenergen brand marketing materials branded for distribution by licensor, subject to pre-approval and strict guidelines of Clenergen Corporation, At all times the NEWCO will adhere to the branding specifications and procedures of CLENERGEN..

ADDITIONAL ITEMS

	
  

	
1.

	
Additional Obligations of the Parties

 

1.1           The Parties represent to each other the absence of any pending or threatened litigation; proceeding or investigation that challenges or seeks to restrain or prohibit the transactions contemplated herein or shall obtain other relief in connection therewith.

	
  

	
2.

	
CONDUCT OF BUSINESS. Except as set forth in this Agreement, from the date hereof until the Closing Date or the termination of this Agreement, the Parties will conduct each of their existing businesses in its normal and ordinary course.

 

  

  

  

 

	
  

	
3.

	
NOTICES. All notices or other information deemed required or necessary to be given to any of the Parties shall be given at the following addresses via certified mail and fax transmittal to the aforesaid addresses.

	
  

	
4.

	
FORCE MAJURE. Neither Party shall be deemed to be in breach or default of the Agreement as the result of any delay or nonperformance that is caused by flood, fire, storm, earthquake, or other act of god, war acts of the public enemy, riot, civil disturbance, strike, network outage, lockout or labor dispute, provided that the party whose performance is affected shall provide prompt written notice of delay or non-performance to the other Party and shall use commercially reasonable efforts to minimize the impact of the such delay or non-performance on the other Party.

	
  

	
5.

	
GOVERNING LAW AND JURISDICTION.  The Agreement will be governed by the laws of Germany.  For disputes arising out of the Agreement, the Parties will consent to the jurisdiction of the local courts located in Frankfurt, Germany.

	
  

	
6.

	
CONFIDENTIALITY.  The Parties hereto agree that they will not at any time during the Term of this Agreement, without the prior written consent of each of the Parties, disclose the existence of, or the terms and conditions set forth in this Agreement unless otherwise required by law or regulation.  In addition, all information shared by the Parties with each other pursuant to this Agreement shall be presumed confidential and proprietary and each Party hereby agrees to maintain all such information in confidence.  Only those individuals and representatives of the Parties or prospective investors in the newly formed entity, and its respective legal and financial advisors, with a need to know and for the sole basis of advising the respective Parties concerning the transactions contemplated hereby, shall be permitted to receive knowledge of the information contained herein.  Information that is or becomes generally available or known to the public through no fault of the Parties, is subsequently disclosed by a Party to this Agreement to a third party that is not also under any obligation of confidentiality, or is required to be disclosed pursuant to a judicial process, government investigation, legal proceeding or other similar process shall not be considered confidential for the purposes of this Agreement.

 

The Parties hereby agree not to circumvent one another by directly contacting third parties introduced by the other relating to the transactions contemplated by the parties without the express written consent of the Disclosing Party

	
  

	
7.

	
COUNTERPARTS. This Agreement may be executed in any number of counterparts and each counterpart shall be deemed to be an original instrument, but all of such counterparts together shall constitute but one agreement.

	
  

	
8.

	
OTHER TERMS.  The Agreement will include other standard terms as the Parties mutually agree.

 

  

  

  

 

	
  

	
9.

	
ENTIRE AGREEMENT. This Agreement shall operate as the definitive binding agreement and shall supersede and replace all prior or contemporaneous communications (written or oral) between the Parties and their representatives and may only be modified or amended by a writing signed by the Parties.  This Agreement contains the sole and entire agreement and understanding of the Parties with respect to the entire subject matter hereof and any and all prior discussions, negotiations, agreements, communications and understandings related hereto are hereby merged herein. No representations, or otherwise, expressed or implied, other than those contained herein have been made by any Party hereto.

 

	 
 
FUTENCO AG:

	 	 
 
CLENERGEN CORPORATION:

	 	 	 	 	 
	By:	/s/ Jan Malkus	 	By:	/s/ MLM Quinn 
	 	 	 	 	 
	Print:   	 	 	Print: 	 
Mark Quinn, CEO

	 	 	 	 	 
	Date: 	5.9.2011	 	Date:  	5th September, 2011

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