Document:

chyu_ex107.htm

EXHIBIT 10.7

 

NOMINATION AGREEMENT

 

THIS NOMINATION AGREEMENT (this “Agreement”) is entered into as of June 21, 2011, by and among Richard MacPherson (“MacPherson”), 3253517 Nova Scotia Limited, a  corporation organized under the laws of the province of Nova Scotia (the “Stockholder”), and Jay Rifkin (“Rifkin”).

 

W I T N E S S E T H:

  

WHEREAS, China Youth Media, Inc. (the “Company”) has entered into an Agreement and Plan of Merger (the “Merger Agreement”) dated as of June 1, 2011 with Midwest Energy Emissions Corp., a North Dakota corporation (“Midwest”), pursuant to which at closing China Youth Media Merger Sub, Inc. (a wholly owned subsidiary of the Company formed for the purpose of such transaction) will merge into Midwest, which will result in Midwest becoming a wholly-owned subsidiary of the Company (capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Merger Agreement);

WHEREAS, contemporaneously herewith, the parties are completing the transaction contemplated by the Merger Agreement;

WHEREAS, it is a condition of the obligations of the Company under the Merger Agreement that this Agreement be executed by the parties hereto, and the parties are willing to execute, and to be bound by the provisions hereof.

NOW, THEREFORE, in consideration of the foregoing and the mutual promises, representations, warranties, covenants and agreements contained herein, the parties hereto, intending to be legally bound hereby, agree as follows:

1.           For a period limited to the earlier of 24 months or 6 months after the Company or Midwest has raised a minimum of $5,000,000 USD from the Closing Date, or has achieved an annualized EBITDA of $1,000,000 as evidenced on annual audited financial statements, (i) MacPherson will, at any time that directors are to be elected, use his best efforts to cause the Board of Directors to nominate and recommend Rifkin to all stockholders of the Company as a proposed member of the Board of Directors of the Company, and (ii) MacPherson and the Stockholder, shall in their capacities as a stockholders of the Company or cause any stockholder in which either is an Affiliate, at any time directors are to be elected, vote in favor of the election of Rifkin as a member of the Board of Directors of the Company.  Nothing in this Agreement shall prevent MacPherson or the Stockholder from also voting for other individuals as members of the Board of Directors of the Company.

 

2.           This Agreement contains the parties’ entire understanding with respect to the subject matter hereof and supersedes any and all previous or contemporaneous agreements between them with respect thereto.  Neither party’s rights or obligations under this Agreement may be assigned or delegated, and neither can this Agreement be amended, nor any term hereof waived, except in writing signed by each party.   The determination by a court that any provision that is not of the essence of this Agreement is invalid shall not affect the validity of any other provision hereof.  The parties shall cooperate in good faith to substitute for any invalidated provision a valid provision, as alike in substance to such invalidated provision as would be lawful.  Nothing herein shall constitute the parties as partners or agents of one another, create any fiduciary duty between the parties, or authorize either party to bind the other, and neither party shall make any contrary representation.

 

3.           The parties shall execute all such further instruments and documents as either shall reasonably request to effectuate any provision hereof.  This Agreement shall be governed by the laws of the State of Delaware applicable to a contract negotiated, signed and wholly to be performed in such jurisdiction by residents thereof.   This Agreement shall be binding upon, inure to the benefit of and be enforceable by each party and such party’s respective heirs, beneficiaries, executors, representatives and permitted assigns.  This Agreement may be executed in one or more counterparts, and by facsimile, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the parties, it being understood that all parties need not sign the same counterpart.

  

1

  

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day and year first written above.

 

 

 

	 	
/S/Richard MacPherson

	 
	 	
RICHARD MACPHERSON

 

	 
	 	
3253517 NOVA SCOTIA LIMITED

 

	 
	 	By:	

/S/Richard MacPherson

	 
	 	Name: 

Title:	
Richard MacPherson

Chief Executive Officer

	 
	 	 	 	 
	 	

MIDWEST ENERGY EMISSIONS CORP.,

A NORTH DAKOTA CORPORATION

 

	 
	 	/S/Jay Rifkin	 
	 	
JAY RIFKIN

	 
	 	 	
 

	 
	 	 	 	 

 

 

  

2chyu_ex108.htm

EXHIBIT 10.8

 

TERMINATION AGREEMENT

 

The undersigned parties hereby agree that the Employment Agreement dated as of November 2, 2009 and effective as of July 1, 2009 (the “Employment Agreement”) by and between China Youth Media, Inc. (the “Company”) and Jay Rifkin (“Rifkin”) is hereby terminated with immediate effect and neither party shall have any further responsibility or liability thereunder, except as the parties have otherwise agreed pursuant to that certain Agreement and Plan of Merger dated as of June 1, 2011 among the Company, China Youth Media Merger Sub, Inc., and Midwest Energy Emissions Corp. (the “Merger Agreement”) and closing thereunder.  The consideration Rifkin is receiving pursuant to the Merger Agreement and related documents is deemed to be in full payment for all amounts owed under the Employment Agreement.

Each of the undersigned parties acknowledges that he/it has been informed of Section 1542 of the California Civil Code which reads as follows:  A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.  In signing this Agreement, the each of the undersigned parties hereby waives any rights or benefits which he/it has or may have under Section 1542 to the fullest extent that he/it may lawfully waive such claims and benefits pertaining to the subject matter of this Agreement.

This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

 

            IN WITNESS WHEREOF, the parties hereto have executed this Termination Agreement as of the 21st day of June, 2011. 

 

	 	
CHINA YOUTH MEDIA, INC.

 

	 
	 	By:	

/S/Richard MacPherson

	 
	 	Name: 

Title:	 	 
	 	
 

 

	 	 
	 	/S/Jay Rifkin	 
	 	
JAY RIFKINexhibit10_1.htm

 

 

EX-10.1

 

 

THIS REVOLVING PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND HAS BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL FOR THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT.

 

 

______________________________________________________________________________

 

 

$500,000.00 As of February 14, 2011

 

 

Henderson, Nevada

 

 

REVOLVING PROMISSORY NOTE

 

 

In consideration of such advances (hereinafter “Advance” or “Advances”) as NYX CAPITAL ADVISORS, INC. or its assigns (collectively, “Holder”), from time to time may make hereon to or for the benefit of DIGIPATH INC., a Nevada corporation (the “Company”), at the Company’s offices or at such other place as the parties may mutually agree, pursuant to the Revolving Credit Commitment, as defined below, up to the maximum aggregate principal amount of Five Hundred Thousand Dollars ($500,000.00) (the “Maximum Aggregate Amount”), the Company hereby promises to pay to Holder the principal amount of all Advances, together with accrued interest thereon from the date of such Advances, all subject to the terms and conditions set forth below.

 

 

1. Revolving Credit Commitment.

 

 

1.1 Advances. The Holder agrees to make Advances to the Company from time to time during the Revolving Credit Commitment Period, as defined below, in an aggregate principal amount at any one time outstanding which does not exceed the Maximum Aggregate Amount (the “Revolving Credit Commitment”). During the Revolving Credit Commitment Period, the Company may use the Revolving Credit Commitment by borrowing, prepaying any Advances in whole or in part, and re-borrowing, all in accordance with the terms and conditions hereof.

 

 

1.2 Interest. Interest shall accrue from the date of any Advances on any principal amount withdrawn, and on accrued and unpaid interest thereon, at the rate of eight percent (8%) per annum, compounded annually.

 

 

2. Revolving Credit Commitment Period. The revolving credit commitment period (the “Revolving Credit Commitment Period”) shall commence as of the date hereof and shall expire on September 30, 2012 (the “Expiration Date”).

 

 

3. Procedure for Revolving Credit Advances.

 

 

3.1 The Company may request Advances under the Revolving Credit Commitment during the Revolving Credit Commitment Period on any day of the week, Monday through Friday, 9 a.m. through 5 p.m., Pacific Time, (hereinafter referred to as any “Business Day” or “Business Days”), provided that the Company shall give the Holder irrevocable notice (which notice must be received by the Holder prior to 12:00 Noon, Pacific Time) one (1) Business Day prior to the requested Advance date, specifying (i) the amount of the Advance, and (ii) the requested Advance date. Each Advance under the Revolving Credit Commitment shall be in an amount equal to $25,000 or a whole multiple of $25,000 in excess thereof. Upon receipt of any such notice from the Company, the Holder will make the amount of the Advance available prior to 12:00 Noon, Pacific Time, on the Advance date requested by the Company in funds immediately available to the Company.

 

 

3.2 The Holder shall maintain in accordance with its usual practice an account or accounts evidencing indebtedness of the Company to the Holder resulting from each Advance from time to time, including the amounts of principal and interest payable and paid to the Holder from time to time under this Note. The parties acknowledge and agree that as of the date hereof, an aggregate principal amount of $200,000 in Advances is outstanding.

 

 

4. Repayment Procedure.

 

 

4.1 General. Repayment on any Advances shall be made in lawful tender of the United States. Any payments on this Note made during the Revolving Credit Commitment Period, as defined below, shall be credited first to any interest due and the remainder to principal.

 

 

4.2 Repayment of Principal and Interest. All outstanding and unpaid principal, and all outstanding and accrued unpaid interest, shall become due and payable on and as of the Expiration Date.

 

 

4.3 Optional Prepayment. The Company may, at any time and from time to time and without penalty, prepay all or any portion of the accrued and unpaid interest on this Note and any outstanding principle amount of this Note.

 

 

5. Transfers.

 

 

5.1 Holder acknowledges that this Note has not been registered under the Securities Act of 1933, and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Note in the absence of (i) an effective registration statement under the Securities Act as to this Note and registration or qualification of this Note under any applicable Blue Sky or state securities laws then in effect, or (ii) an opinion of counsel, satisfactory to the Company, that such registration and qualification are not required.

 

 

5.2 Subject to the provisions of Section 5.1 hereof, this Note and all rights hereunder are transferable, in whole or in part, upon surrender of the Note with a properly executed assignment, in the form prescribed by the Company, at the principal office of the Company; provided, however, that this Note may not be transferred in whole or in part without the prior written consent of the Company.

 

 

5.3 Until any transfer of this Note is made in the Note register, the Company may treat the registered Holder of this Note as the absolute owner hereof for all purposes; provided, however, that if and when this Note is properly assigned in blank, the Company may (but shall not be required to) treat the bearer hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.

 

 

5.4 The Company will maintain a register containing the name and address of the registered Holder of this Note. Any registered Holder may change such registered Holder’s address as shown on the Note register by written notice to the Company requesting such change.

 

 

5.5 In the discretion of the Company, the Company may condition any transfer of all or any portion of this Note (other than a disposition satisfying the conditions set forth in clause (i) of Section 5.1 above) upon the transferee’s delivery to the Company of a written agreement, in form and substance satisfactory to the Company, whereby the transferee agrees to be bound by the transfer restrictions set forth in this Section 5.

 

 

6. Events of Default.

 

 

6.1 Events of Default. The occurrence of any or all of the following events shall constitute an event of default (each, an “Event of Default”) by the Company under this Note:

 

 

(i) Default by the Company in any payment on this Note after any such payment becomes due and payable; or

 

 

(ii) Breach by the Company of any material provisions of any agreement between the Company and the Holder; or

 

 

(iii) The Company shall file a voluntary petition in bank­ruptcy or any petition or answer seeking for itself any reorganization, readjustment, arrangement, composition or similar relief; or shall commence a voluntary case under the federal bankruptcy laws; or shall admit in writing its insolvency or its inability to pay its debts as they become due; or shall make an assignment for the benefit of creditors; or shall apply for, consent to, or acquiesce in the appointment of, or the taking of possession by, a trustee, receiver, custodian or similar official or agent of the Company or of substantially all of its property and shall not be discharged within ninety (90) days; or a petition seeking reorganization, readjustment, arrangement, composition or other similar relief as to the Company under the federal bankruptcy laws or any similar law for the relief of debtors shall be brought against the Company and shall be consented to by it or shall remain undismissed for ninety (90) days.

 

 

6.2 Consequence of Default. Upon the occurrence of any Event of Default, the Holder shall be held in a first credit position on the entire amount due on this Note, and, this Note shall immediately become due and payable upon written notice from the Holder, and, from the time of the Company’s receipt of such written notice until this Note shall be paid in full, the unpaid outstanding principal balance of this Note shall bear interest at the rate of ten percent (10%) per annum or the legal rate of interest, whichever is lower, (calculated on the basis of a three hundred sixty-five (365) day year for the actual number of days elapsed) (the “Default Rate”). Moreover, after the occurrence of any such Event of Default, the Holder may proceed to protect and enforce its rights, at law, in equity or otherwise, against the Company.

 

 

6.3 Payment of Costs and Expenses. In the event that this Note is placed in the hands of any attorney for collection, or any suit or proceeding is brought for the recovery or protection of the indebtedness hereunder, then and in any such events, the Company shall pay on demand all reasonable costs and expenses of such suit or proceedings incurred by the Holder, including a reasonable attorneys' fee.

 

 

7. Miscellaneous.

 

 

7.1 Delay. No extension of time for payment of any amount owing hereunder shall affect the liability of the Company for payment of the indebtedness evidenced hereby. No delay by the Holder or any holder hereof in exercising any power or right hereunder shall operate as a waiver of any power or right hereunder.

 

 

7.2 Waiver and Amendment. No waiver or modification of the terms of this Note shall be valid without the written consent of the Holder.

 

 

7.3 Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of California as applied to contracts entered into between California residents wholly to be performed in California, without regard to conflict of law principles of such State.

 

 

7.4 Severability. In case any provision contained herein (or part thereof) shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or other unenforceability shall not affect any other provision (or the remaining part of the affected provision) hereof, but this Note shall be construed as if such invalid, illegal, or unenforceable provision (or part thereof) had never been contained herein, but only to the extent that such provision is invalid, illegal, or unenforceable.

 

 

7.5 Notice. All notices and other communica­tions among the parties shall be in writing and shall be deemed to have been duly given when (i) delivered in person, or (ii) five (5) days after posting in the U.S. mail as registered mail or certified mail, return receipt re­quest­ed, or (iii) delivered by telecopier and promptly confirmed by delivery in person or post as aforesaid in each case, with postage prepaid, addressed as follows:

 

 

If to the Company, to:

 

 

DigiPath Inc.

 

	
2360 CORPORATE CIR STE 400

	
HENDERSON, NV 89074

 

If to the Holder, to:

 

 

NYX Capital Advisors, Inc.

 

 

Attention: CFO

 

 

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed and delivered by its authorized officer as of the date first above written.

 

 

DIGIPATH INC., a Nevada corporation

 

 

By: /s/ ERIC STOPPENHAGEN

 

 

Name: Eric Stoppenhagen

 

 

Title: President

 

 

ACKNOWLEDGED:

 

 

NYX CAPITAL ADVISORS, INC.

 

 

By: /s/ Eric Stoppenhagen

 

 

Name: Eric Stoppenhagen

 

 

Title: President

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