Document:

SECURITIES AND EXCHANGE COMMISSION

EXHIBIT

10.14

 

Those Persons Listed at Schedule One

 

 

Liquitek Enterprises, Inc

 

Second

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 rescission by the Stockholders in the case of a failure by Liquitek

to satisfy certain funding requirements.

 

C                                        The parties have agreed that such

rescission 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 as amended by an Agreement Amending Agreement for Acquisition of

Certain Ordinary Shares and Rights of Distech Limited by Liquitek Enterprises

made on or about 27 August 2001; and

 

“Rescission Date”  means the

date on which any rescission is effected in accordance with clause 2.1.a.

 

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 Further 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 30 April 2002 and otherwise in

accordance with the procedure set out in clause 1.4.2 if:

Liquitek fails by 31 March 2002 to raise

the total sum of US$5,100,000; or

Before 30 April 2002 Liquitek notifies the

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

US$5,100,000; or

An Insolvency Event occurs prior to or on

31 March 2002.

Should

such rescission 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

31 March 2002:

If no Insolvency Event has occurred prior

to 31 March 2002, then the parties will procure that:

(aa)         advances owing by Distech to Liquitek up

to a maximum amount of $US2,000,000 will be converted to shares in Distech on

the basis that Liquitek will receive a 1.25% interest in Distech for every

$US100,000 converted to equity.

 

(bb)         any advance owing by Distech to

Liquitek in excess of US$2,000,000 will be a debt owing by Distech to Liquitek.

 

3

 

If an Insolvency Event has occurred prior

to 31 March 2002, then Distech will be immediately released from its

obligations to repay any 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.

Advances:  The

parties agree that (without limiting the sums which may be part of the

advances) for the purposes of determining the amount advanced by Liquitek to

Distech under clause 2.1 (b) the following will be deemed to be advances:

One-half

of the salary and related payroll taxes and fringe benefits for Kent Price from

April 1, 2001 through the Rescission Date.

All

of the salary and related payroll taxes and fringe benefits for Chip Barcus

from May 1, 2001 through the Rescission Date.

All

of the salary and related payroll taxes and fringe benefits for Dudley Ward

from November 30, 2000 through the Rescission Date.

One-half

of the apartment rental for Kent Price from March through August 2002, which

amounts to US$3,150.

The

fees from BDO Spicers; American Appraisal; Gibson, Haglund and Paulsen; and

Squar, Milner, Reehl and Williamson related to SEC filings and New Zealand

corporate filings.

One-half

of the rental charges on Kent Price’s office from January 1, 2001 through the

Rescission Date, plus all of the rental charges for Dudley Ward’s office from

July 1, 2001 through the Rescission Date.

Any expenditures in New

Zealand for matters that are Liquitek’s responsibility will be offset against

the advances to arrive at a net amount of advances to be converted to

equity.  Such disbursements for which

Liquitek would bear responsibility are those other than for Liquitek’s

involvement with Distech.  In

particular, for these purposes, travel of Liquitek personnel between New

Zealand and the United States is a Distech responsibility.  The advances will include any allocation of

labour costs for Les Moore, Culley Davis, John Nagel, Daron Smith or any of the

headquarters staff for work done on Distech affairs (including for example

strategic and operational planning, management supervision, fund raising,

routine accounting, SEC reporting).

 

Ward

Relocation:  In

the event of rescission, the Stockholders will procure that Distech pays the

costs of relocating Dudley Ward and any other Distech personnel who may require

such relocation upon rescission.

Distech

Relocation:  In the event of rescission, the Stockholders

will procure that Distech pays the costs of relocating any Distech property

from Liquitek facilities to Distech facilities.

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 

 

4

 

above mentioned rescission rights, and that the

rights of rescission provided to the Remaining Stockholders are 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.

 

Operational Matters

Loan

to be raised:  The

capital to be raised in accordance with clause 2.1 a. i. will include:

US$2,100,000

invested by  Cully W Davis in July 2001;

US$1,200,000

paid by Bart Warner for a secured note in August 2001; and

the

sum to be raised by Distech in accordance with clause 3.2

Distech

Raising:  The Stockholders must procure that Distech

raises in New Zealand the sum of NZ$300,000 by 15 November 2001.

Further

Capital Raising:  Both

Liquitek and Distech personnel will work together to raise the required

capital.  All funds raised by Distech

personnel will be dedicated to Distech operations, both those in New Zealand

and those in the United States. 

Similarly all operating revenues generated by Distech will be applied

exclusively to Distech operations, both those in New Zealand and those in the

United States.  To the maximum extent

possible, all Distech operations, both New Zealand and United States, will be

funded by New Zealand investment and Distech operating revenues in order to

minimise the advances from Liquitek that might ultimately have to be converted

to equity on any rescission.  Any

expenditure for Distech paid for with funds raised or generated by Liquitek and

not in conformity with the operating plan 

referred to in clause 3.6 below must be approved by the Distech Board,

as such expenditure will  add to the

advances total that would be converted to equity on any rescission.

Distech

Funding:  In addition to the funding to be raised by

Distech in accordance with clause 3.2, Liquitek must make the following further

advances to Distech:

US$200,000

by 15 November 2001; and

US$300,000

payable in 5 equal monthly instalments of US$60,000 each commencing on 30

November 2001.

Liquitek

Board:  At

the request of the Stockholders, either

Chris Horton or Ed Harman will be added to the Liquitek Board of Directors as a

replacement for Culley W. Davis.

Distech

Board:  The

Board of Directors of Distech will be reduced to five members and will consist

of John Nagel, Kent Price, Dudley Ward, Guy Eady and Chris Horton.

Distech

COO:  Kent

Price will remain as President/COO of Distech. 

There will be a restructuring of the Distech organisation.  The Distech Board will be afforded the

opportunity to express themselves regarding this reorganisation prior to

presenting it to the 

 

5

 

Liquitek Board for approval.  Adoption of the reorganisation will be a

joint decision between Liquitek and Distech interests.

Operating Plan:  A

new operating plan for Distech covering the period from 01 October 2001 through

31 March 2002 will be developed.  The

plan must be agreed to by each member of the Distech management team and the

Distech Board before it is presented to the Liquitek Board for adoption.  It will provide for capital development on

the “bootstrapping” concept described above.

Investment

Summary:  A

revised Liquitek investment summary will be developed that can be used in fund

raising efforts in both New Zealand and the United States.  It will emphasize the contributions of the

non-Distech portions of Liquitek along with the Distech operations so New

Zealand investors can be better educated on the totality of Liquitek.

Liquitek

Lock Up:  The

Liquitek shares held by the Stockholders and Remaining Stockholders will be

made freely tradable under Rule 144 and released from the lock-up provisions as

in the Principal Agreement.

Distech

Reporting:  Liquitek

must procure that  Distech

provides to the Stockholders monthly accounting reports, including a general

ledger trial balance and debtors and creditors subsidiary ledgers, by the close

of the fifth working day after the end of each month.  These are to be consistent with the structure of the accounting

system that was to have been implemented April 1, 2001.

 

	

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  Signed on behalf of Milcon Developments

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

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  Signed on behalf of Harvey Nominees

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

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  Signed on behalf of de la Cour Investments

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

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9

 

 

Schedule 1

The Stockholders

 

10

 

The Stockholders are:

 

Detroit Investments Limited, a

company incorporate at Auckland;

Milcon Developments (NEW

ZEALAND) 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.

 
 
11SECURITIES AND EXCHANGE COMMISSION

EXHIBIT

10.15

 

AMENDMENT #1 TO

AGREEMENT AND PLAN OF REORGANIZATION

FOR THE ACQUISITION

OF ALL OF THE OUTSTANDING SHARES OF COMMON STOCK OF

INTERFLUID RECYCLING, INC. BY VITRISEAL, INC.

 

                THIS

AMENDMENT (the “Amendment”) to the Reorganization Agreement and Plan

of Reorganization dated July 1, 2000 (the “Reorganization Agreement”) is made

as of the 15th day of August, 2001 by and among RODNEY L. and LOIS P. SCHAEFER

(jointly referred to as “SCHAEFER”), DOUGLAS V. and SUSAN K. SMITH (jointly

referred to as “SMITH”), JOHN T. GREEN (“GREEN”), INTERFLUID RECYCLING, INC.

(“INTERFLUID”), a California corporation, and LIQUITEK ENTERPRISES, INC., a

Nevada corporation formerly known as “VitriSeal, Inc.” (“LIQUITEK”).

 

RECITALS:

 

                A.            WHEREAS, pursuant to the terms of the

Reorganization Agreement, SCHAEFER, SMITH, and GREEN (hereinafter referred to

collectively as the “Interfluid Shareholders”) agreed to exchange their shares

of INTERFLUID for shares of LIQUITEK (the “Liquitek Shares”); and

 

                B.            WHEREAS, as a material part of the

consideration for entering into the Reorganization Agreement, LIQUITEK and the

Interfluid Shareholders negotiated and agreed to the terms and conditions of

Section 1.4.9 of the Reorganization Agreement; and

 

                 C.           WHEREAS,

the parties desire to amend the Reorganization Agreement as set forth in this

Amendment;

 

                NOW,

THEREFORE, in consideration of the foregoing premises and the mutual

representations, warranties, covenants and agreements contained herein, and in

accordance with the applicable provisions of state law, the parties hereto

covenant and agree as follows:

 

                1.             Elimination

of Section 1.4.9 of the Reorganization Agreement.  The parties hereto agree that the provisions

of Section 1.4.9 of the Reorganization Agreement are null and void and are of

no further force or effect.  The

Interfluid Shareholders hereby waive their rights to Section 1.4.9 of the

Reorganization Agreement.

 

                2.             Stock

Repurchase.

 

                2.1          Price and Installment Dates. 

In consideration for the waiver of the rights of the Interfluid

Shareholders under Section 1.4.9 of the Reorganization

 

2

 

Agreement, LIQUITEK

hereby agrees to purchase the Liquitek Shares in installments on the dates (the

“Installment Dates”) and at the prices (the “Installment Payments”) set forth

in the schedule of payments attached hereto as Exhibit “A” and incorporated

herein by this reference (the “Schedule of Payments”).  LIQUITEK’s obligation to repurchase the

Liquitek Shares is hereinafter referred to as the “Obligation.”

 

                2.2          Option

Not to Sell.  As of any

Installment Date, the Interfluid Shareholders shall have the right to refuse to

sell their Liquitek Shares and retain them by notifying LIQUITEK in writing

prior to the applicable Installment Date that they wish to retain the Liquitek

Shares subject to repurchase on such Installment Date; however, in such event

LIQUITEK shall have no further liability or obligation to make the Installment

Payments for the Liquitek Shares to have been repurchased on such Installment

Date.

 

                                2.3          Delivery

of Liquitek Shares.  As a

condition to this Amendment, the Interfluid Shareholders hereby deliver their

Liquitek Shares to Bruce H. Haglund, Esq., the Secretary and general counsel to

LIQUITEK (the “Escrow Agent”), to be held in an escrow (the “Escrow”) in

accordance with the terms of this Amendment. Until any of the Liquitek Shares

are repurchased, the Interfluid Shareholders shall be entitled to exercise any

and all voting and/or consensual rights and powers accruing to owners of the

Liquitek Shares that have not been repurchased.  Any dividends or distributions of any kind whatsoever (in cash or

otherwise) attributable to the Liquitek Shares that have not been repurchased,

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 Liquitek Shares, or received in exchange for the

Liquitek Shares, or as a result of any merger, consolidation, acquisition, or

other exchange of assets to which LIQUITEK may be a party, or otherwise, shall,

be and become part of the Collateral pledged hereunder and shall immediately be

delivered to the Escrow Agent to be held subject to the terms hereof.

 

3.             Remedies

for Late Payment or  Non-Payment.

 

                                3.1          Penalty for Late Payments; Cure

Period. If

LIQUITEK fails to make any Installment Payment on any Installment Date it shall

have a cure period of one calendar month following the Installment Date without

incurring any penalty (the “Cure Period”). 

If the applicable Installment Payment has not been made during the Cure

Period, a penalty equal to 3% of the Installment Payment shall accrue on the

first of each calendar month following the Cure Period until the applicable

Installment Payment is made, including accrued penalties.   If an Installment Payment becomes more than

90 days overdue, the Interfluid Shareholders shall have the right to rescind

the Reorganization Agreement in accordance with Section 4 of this Amendment.

 

3

 

                                3.2          Grant of Security Interest. To secure the Obligation, LIQUITEK hereby

assigns and grants to the Interfluid Shareholders a security interest in the

“Collateral” defined in Section 3.3 below. 

Upon payment of the Obligation in full, the Interfluid Shareholders

agree that the security interest shall be released and covenant that they will

execute such documents as may be reasonably necessary to release the security

interest after the repayment of the Obligation in full.

 

                                3.3          The Collateral and Filing of Financing

Statement.  The Collateral shall include the assets

described in the Financing Statement on Form UCC-1 (the “Financing Statement”),

a copy of which is attached to this Amendment as Exhibit “B” and incorporated

herein by this reference, and any and all proceeds of the Collateral.  For purposes of this Amendment, the term

“proceeds” includes whatever is receivable or received when any part of the

Collateral is sold or otherwise disposed of, whether such disposition is

voluntary or involuntary, and includes all rights to payment with respect to

the Collateral.  LIQUITEK hereby

consents to the filing of the Financing Statement in the States of California

and Nevada without the signature of LIQUITEK.

 

                                3.4          Covenants of LIQUITEK.  LIQUITEK hereby agrees, until the Obligation has been

fully paid:

 

                                                (i)            to execute and deliver from time to

time any endorsements, assignments and other writings reasonably deemed

necessary or appropriate by the Interfluid Shareholders to perfect, maintain

and protect their security interest in the Collateral, including the Financing

Statement; and

 

                                                (ii)           not to sell, encumber or otherwise

dispose of or transfer any Collateral, except in the ordinary course of

business or to the Interfluid Shareholders and in accordance with the terms of

this Amendment.

 

                4.             Rescission

Rights.  In the event

that LIQUITEK attempts to sell Thermoflow or Interfluid, seeks protection under

the U.S. Bankruptcy laws, makes an assignment for the benefit of creditors, or

is delinquent in paying the Obligation for a period to exceed 90 days, the

Interfluid Shareholders shall have the right to rescind the Reorganization

Agreement (the “Rescission Right”).

 

                5.             Escrow.  In order to accomplish the purposes and

intents of this Amendment, the parties agree to establish the Escrow with the

Escrow Agent in accordance with the following terms:

 

                                5.1          Deposits

by LIQUITEK.  LIQUITEK

hereby delivers to the Escrow Agent the Interfluid Shares.  A copy of the certificate evidencing the

Interfluid Shares is attached hereto as Exhibit “C.” LIQUITEK hereby delivers

to the Escrow Agent a stock power executed in blank authorizing the Escrow

Agent

 

4

s

to transfer the

Interfluid Shares in the event of a default on the Obligation.  A copy of the stock power is attached hereto

as Exhibit “D.”

 

                                5.2          Deposits

by the Interfluid Shareholders. 

The Interfluid Shareholders hereby deliver to the Escrow Agent the

Liquitek Shares.  A copy of the

certificates evidencing the Liquitek Shares is attached hereto as Exhibits

“E-1” through “E-3.”  The Interfluid

Shareholders hereby deliver to the Escrow Agent seven stock powers executed in

blank authorizing the Escrow Agent to cancel the Liquitek Shares on each

Installment Date upon payment of the applicable Installment Payment.  Copies of the form of the stock powers are

attached hereto as Exhibits “F-1” through “F-3.”

 

                                5.3          Actions to Be Taken

by the Parties and the Escrow Agent through the Escrow.

 

                                                5.3.1       Notice of

Payment by LIQUITEK.  In

connection with each Installment Date, LIQUITEK shall send the Interfluid

Shareholders the Installment Payment in accordance with the Schedule of

Payments and shall send a copy of the checks sent to the Interfluid

Shareholders to the Escrow Agent.

 

                                5.3.2       Notice to the Interfluid Shareholders from the Escrow Agent.  Upon the receipt of copies of checks sent to

the Interfluid Shareholders as of any Installment Date, the Escrow Agent shall

notify the Interfluid Shareholders in writing that he will submit the Liquitek

Shares repurchased to LIQUITEK’s stock transfer agent for cancellation in 14

days.

 

                                5.3.3       Notice of Dipute.  If any of the Interfluid Shareholders dispute having been paid

for the Liquitek Shares subject to repurchase as of such Installment Date as

set forth in any notice from the Escrow Holder, they shall notify the Escrow

Agent in writing prior to the expiration of the 14-day period set forth in the

notice from the Escrow Agent, and the Escrow Agent shall not proceed with the

cancellation of such Liquitek Shares until the dispute regarding repayment is

resolved as set forth in Section 17 below.

 

                                5.3.4       Cancellation of Liquitek Shares.  If no notice is received by the Escrow

Holder as set forth in Section 5.3.3 above disputing the payment for the

repurchase of Liquitek Shares as of any Installment Date, the Escrow Holder

shall submit the Liquitek Shares that have been repurchased as of such

Installment Date to LIQUITEK’s stock transfer agent for cancellation, with the

stock powers necessary to effect such cancellation.

 

                                5.3.5       Acceptance of Liquitek Shares in Lieu of Payment.  Prior to any Installment Date or the

acceptance of the payment for the repurchase of any Liquitek Shares, the

Interfluid Shareholders shall have the right to send written notice to the

Escrow Agent that they are exercising their right to accept Liquitek Shares in

lieu of the payment due as of such Installment Date.  If the

 

5

 

Interfluid Shareholders exercising such right have already received a

check for the repurchase as of such Installment Date, the Interfluid

Shareholders shall include in the notice to the Escrow Agent the check for the

repurchase of the Liquitek Shares.  In

such event, the Escrow Agent shall have new certificates representing the

Liquitek Shares being accepted in lieu of payment issued to the Interfluid

Shareholders in accordance with their written instructions to the Escrow Agent

and the remaining Liquitek Shares shall remain in the Escrow.

 

                                5.3.6       Rescission Rights.  In the event that the Interfluid Shareholders desire to exercise

their Rescission Rights under the provisions of Section 4 of this Amendment,

they shall notify the Escrow Agent and LIQUITEK in writing.  If LIQUITEK notifies the Escrow Agent within

14 days that it disputes the Rescission Rights, the Escrow Holder shall take no

action until the dispute is resolved as provided in Section 17 below.  If LIQUITEK has not sent a written notice

within 14 days of the date of the notice from the Interfluid Shareholders, the

Escrow Agent shall return the Interfluid Shares, with the accompanying stock

power from LIQUITEK attached hereto as Exhibit “D,” to the Interfluid

Shareholders, and return the Liquitek Shares, with the accompanying stock power

from the Interfluid Shareholders attached hereto as Exhibit “E,” to LIQUITEK’s

stock transfer agent for cancellation.

 

                                5.3.7       Termination of the Escrow.  The Escrow shall terminate on the earlier of

the completion of the actions to be taken by the Escrow Agent as set forth in

Section 5.3.6 above or the full satisfaction of the Obligation, whether by

repurchase or by acceptance of the Liquitek Shares in lieu of final payment of

the Obligation, and the return of all items deposited into the Escrow as set

forth in this Amendment.

 

                6.             Additional

Provisions Relating to the Escrow Holder.  The parties agree as follows:

 

                                6.1           The Escrow Holder’s duties hereunder

may be altered, amended, modified or revoked only by a writing signed by all of

the parties hereto.

 

                                6.2           The Escrow Holder is hereby expressly

authorized to disregard any and all warnings given by any of the parties hereto

or by any other person or corporation, excepting only orders or process of

courts of law, and are hereby expressly authorized to comply with and obey

orders, judgments or decrees of any court. 

In case the Escrow Holder obeys or complies with any such order,

judgment or decree, the Escrow Holder shall not be liable to any of the parties

hereto or to any other person, firm or corporation by reason of such

compliance, notwithstanding any such order, judgment or decree being

subsequently reversed, modified, annulled, set aside, vacated or found to have

been entered without jurisdiction.

 

6

 

                                6.3           The Escrow Holder shall not be liable

in any respect on account of the identity, authority or rights of the parties

executing or delivering or purporting to execute or deliver this Amendment or

any documents or papers deposited or called for hereunder.

 

                                6.4           The Escrow Holder shall be entitled

to employ such legal counsel and other experts as it may deem necessary to

properly advise the Escrow Holder in connection with its obligations hereunder,

may rely upon the advice of such counsel, and may pay such counsel reasonable

compensation therefor.

 

                                6.5           If the Escrow Holder reasonably

requires other or further instruments in connection with this Amendment or

obligations in respect hereto, the necessary parties hereto shall join in

furnishing such instruments.

 

                                6.6           It is understood and agreed that

should any dispute arise with respect to the instructions given the Escrow

Holder hereunder, the Escrow Holder is authorized and directed to retain in its

possession, without liability to anyone, all or any part of the Collateral

until such dispute shall have been settled either by mutual written agreement

of the parties concerned or by a final order, decree or judgment of a court of

competent jurisdiction after the time for appeal has expired and no appeal has

been perfected, but the Escrow Holder shall be under no duty whatsoever to

institute or defend any such proceedings.

 

                                6.7           All reasonable costs, fees and

disbursements incurred by the Escrow Holder in connection with the performance

of its duties hereunder shall be borne by LIQUITEK.

 

                                6.8           The Escrow Holder shall be obligated

only for the performance of such duties as are specifically set forth herein

and may rely and shall be protected in relying or refraining from acting on any

instrument reasonably believed by the Escrow Holder to be genuine and to have

been signed or presented by the proper party or parties.

 

                                6.9           Upon the Escrow Holder’s performance

of the duties set forth in Section 5, in accordance with the provisions of this

Amendment, the Escrow Holder shall be discharged from all further obligations

hereunder.

 

                                6.10         INTERFLUID and the Interfluid

Shareholders, each on its or his own behalf (i)  waives any conflict of interest which the Escrow Holder may have

as a result of acting as the Escrow Holder hereunder and general counsel to

LIQUITEK; (ii) acknowledges hereby that they have been urged to review this

Amendment with independent counsel; (iii) 

waives its or his rights to independent counsel in connection with the

actions to be taken hereunder by the Escrow Holder; and (iv) approves the

appointment of the Escrow Holder hereunder.

 

7

                7.             Entire Agreement.

 

                                This

Amendment and the Reorganization Agreement, as modified by the Amendment,

contains the entire agreement between the parties, and supersedes all prior

agreements, representations and understandings of the parties, relating to the

subject matter of this Amendment and the Reorganization Agreement.

 

                8.             Amendments.

 

                                No

supplement or amendment of this Amendment or the Reorganization Agreement will

be binding unless executed in writing by both the parties.

 

                9.             Waivers.

 

                                Any

term or provision of this Amendment may be waived at any time by the party

entitled to its benefit by a written instrument executed by the party or by a

duly authorized officer of the party. 

No waiver of any of the provisions of this Amendment will be deemed, or

will constitute, a waiver of any other provision, whether or not similar, nor

will any waiver constitute a continuing waiver.

 

                10.          Successor and Assigns.

 

                                This

Amendment will be binding on, and will inure to the benefit of, the parties and

their respective heirs, legal representatives, successors and assigns.

 

                11.          Attorneys’ Fees.

 

                                If

any legal action or other proceeding is brought in connection with any of the

provisions of this Amendment, the successful or prevailing party will be

entitled to recover reasonable attorneys’ fees and other costs incurred in that

action or proceeding, in addition to any other relief to which that party may

be entitled.

 

                12.          Governing Law.

 

                                All

questions with respect to the construction of this Amendment, and the rights

and liabilities of the parties under this Amendment, will be governed by the

laws of the State of Nevada.

 

                13.          Counterparts.

 

8

 

                                This

Amendment may be executed in one or more counterparts, each of which will be

deemed a valid, original agreement, but all of which together will constitute

one and the same instrument.

 

                14.          Severability.

 

                                If

any provision of this Amendment is held to be unenforceable or invalid by any

court of competent jurisdiction, the validity and enforceability of the

remaining provisions shall not be affected thereby.

 

                15.          Notices.

 

                                Any

notice or the delivery of any item to be delivered by a party hereto shall be

delivered personally, by U.S. mail, return receipt requested, or by Federal

Express or other commercial delivery service, next-day delivery.  Any personal delivery made shall be deemed

to have been made upon the execution of a receipt for the item to be delivered

by the party to whom delivery is made. 

Delivery by U.S. mail, Federal Express, or other similar commercial

delivery service shall be deemed to have been made when delivered to the

address of the party to whom addressed. 

All such deliveries to LIQUITEK shall be made to John W. Nagel, Chief

Executive Officer, Liquitek Enterprises, Inc., 1350 East Draper Parkway,

Draper, Utah  84020, or such other

addresses as LIQUITEK may have instructed the others in accordance with the

provisions of this Section 15. All such deliveries to INTERFLUID or any of the

Interfluid Shareholders shall be made c/o Rodney L. Schaefer, Chief Executive Officer,

Interfluid Recycling, Inc., 204 North El Camino Real, #307, Encinitas,

California  92024, or such other

addresses as LIQUITEK may have instructed the others in accordance with the

provisions of this Section 15.

 

                16.          Mutual

General Release.

 

                                16.1         In

consideration of the terms and provisions of this Amendment, INTERFLUID and the

Interfluid Shareholders hereby forever relieve and release LIQUITEK and its

Affiliates (as defined in Section 16.5 below) from any and all Claims (as

defined in Section 16.6 below); provided, however, neither this Section 16.1

nor any other term of this Amendment shall release any of the Liquitek Parties

from any Disputes (as defined in Section 16.7 below).

 

                                16.2         In

consideration of the terms and provisions of this Amendment, LIQUITEK and its

Affiliates hereby forever relieve and release INTERFLUID and the Interfluid

Shareholders from any and all Claims; provided, however, neither this Section

16.2 nor any other term of this Amendment shall release INTERFLUID and the Interfluid

Shareholders from any Disputes.

 

9

 

                                16.3         With respect to this general release

described in Section 16.1 above, INTERFLUID and the Interfluid Shareholders

acknowledge that they have read Section 1542 of the California Civil Code that

provides as follows:

 

A

General Release does not extend to claims which the creditor does not know or

suspect to exist in its favor at the time of executing the release, which if

known by him must have materially affected his settlement with the debtor.

 

INTERFLUID and the Interfluid Shareholders hereby waive the effect of

Section 1542 of the California Civil Code, if it is deemed applicable

notwithstanding the choice of laws provisions of Section 11 above and expressly

waive any and all rights with respect to claims existing as of the date of this

Amendment, known or unknown, notwithstanding any applicable law or statute to

the contrary.

 

                                16.4          The parties hereto expressly and

knowingly acknowledge that, after the execution of this Amendment, any party

hereto may discover facts different from or in addition to those which each

party now knows or believes to be true with respect to the Claims released in

this Amendment. Nonetheless, each of the parties agrees that this Amendment

shall be and remain in full force and effect in all respects, notwithstanding

such different or additional facts. It is the intention hereby fully, finally

and forever to settle and release the Claims released herein. In furtherance of

such intention, the general release given in this Amendment shall be and remain

in effect as full, final, and complete release of such Claims, notwithstanding

the discovery by any of the parties of the existence of any additional or

different Claims or of facts relating to the Claims. This Amendment is intended

to be final and binding between the parties regardless of any allegations or

circumstances whatsoever.

 

                                16.5.

       “Affiliate” shall mean (i) any

parent, subsidiary or division, whether direct or indirect, of LIQUITEK; and

(ii) the directors, officers, employees, assigns, agents, attorneys, and other

representatives of LIQUITEK, INTERFLUID, and the Interfluid Shareholders.

 

                                16.6          “Claims” shall mean any and all

claims, demands, rights, agreements, contracts, options, covenants,

representations, warranties, promises, undertakings, actions, suits, causes of

action, obligations, controversies, debts, costs, expenses (including but not

limited to attorneys’ fees), accounts, damages, judgments, losses and

liabilities of whatever kind or nature, fixed or contingent, in law, equity or

otherwise, whether known or unknown, whether or not apparent or concealed,

arising prior to the date hereof related to (i) the Reorganization Agreement;

(ii) representations of any of the parties or their Affiliates related thereto;

and (iii) any other involvement of any kind between the parties hereto prior to

the date hereof.

 

                                16.7

        “Dispute” shall mean any

controversy, dispute, or claim of whatever nature arising out of, in connection

with, or in relation to the

 

10

 

interpretation, performance or breach of this Amendment, including, but

not limited to a default under the Obligation or any controversy, dispute, or

claim based on contract, tort, or any federal, state, or local statute, law,

order, ordinance, or regulation, whether seeking equitable or legal relief of

any kind or nature relating to the terms of this Amendment.

 

17.          Arbitration. 

Any Disputes shall resolved by binding arbitration conducted in Orange

County, California in accordance with the commercial arbitration rules of the

American Arbitration Association.

 

 

(The remainder of this page has been left blank

intentionally.)

 

11

 

IN WITNESS

WHEREOF, the

parties hereto have duly executed and delivered this Amendment to the

Reorganization Agreement as of the day and year first above written.

 

 

	

  LIQUITEK

  ENTERPRISES, INC.

  	

   

  	

  INTERFLUID

  RECYCLING, INC.

  	

   

  
	

  a Nevada corporation

  	

   

  	

  a California corporation

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

   

  	

  /s/ John W. Nagel

  	

   

  	

   

  	

  By:

  	

   

  	

  /s/ Rodney L. Schaefer

  	

   

  	

   

  
	

   

  	

  John W. Nagel,

  	

   

  	

  Rodney L. Schaefer,

  	

   

  
	

   

  	

  Chief Executive Officer

  	

   

  	

  President

  	

   

  
										

 

 

	

  INTERFLUID

  SHAREHOLDERS:

  	

   

  
	

   

  	

   

  
	

  /s/  Rodney

  L. Schaefer

  	

   

  
	

  RODNEY L. SCHAEFER

  	

   

  
	

   

  	

   

  
	

  /s/  Lois P.

  Schaefer

  	

   

  
	

  LOIS P. SCHAEFER

  	

   

  
	

   

  	

   

  
	

  /s/  Douglas

  V. Smith

  	

   

  
	

  DOUGLAS V. SMITH

  	

   

  
	

   

  	

   

  
	

  /s/  Susan K.

  Smith

  	

   

  
	

  SUSAN K. SMITH

  	

   

  
	

   

  	

   

  
	

  /s/  John T.

  Green

  	

   

  
	

  JOHN T. GREEN

  	

   

  
			

 

12

EXHIBIT “B”

 

Collateral

and Financing Statement Form UCC-1

 

 

The Collateral securing the Obligation under this

agreement includes the following:

 

	

   

  	

  1995 Nissan UD 1800 truck

  	

  VIN #JNAMA20H956K50348

  
	

   

  	

  1991 Ford E350 truck

  	

  VIN #1FEKE37G2MH10645

  
	

   

  	

  1992 International truck

  	

  VIN #1HTSDPPN7NH456127

  
	

   

  	

  1995 Dodge Ram truck

  	

  VIN #187NC16Y255363047

  
	

   

  	

  1994 Caterpillar forklift

  
	

   

  	

  4 bulk storage tanks

  
	

   

  	

  Pumps, tanks and hoses installed on above trucks

  
	

   

  	

  Tool box and miscellaneous tools

  
	

   

  	

  Office equipment: desks, chairs, 2 computers,

  printers and fax machines

  
	 
	Drums and totes now in use for day-to-day operations

 
13

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