Document:

ex412q033110.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    STOCK
PURCHASE AGREEMENT

     

    This
Stock Purchase Agreement (the “Agreement”) is entered into as
of April 14, 2010, by and among Garb Oil & Power Corporation, a Utah
corporation (the “Company”) and Alan Fleming
(the “Purchaser”).  In
consideration of the mutual promises contained herein the Company and the
Purchaser hereby agree as follows:

     

    1. Stock Purchase. The
Purchaser hereby purchases from the Company and the Company hereby sells to the
Purchaser 11,715 shares (the “Shares”) of the Company’s
class B preferred stock, $0.0001 par value (“Class B Preferred”) in full
satisfaction and accord of amounts owed by the Company to the Purchaser for
business expenses equal to US$267.00 and AUD$6,763, accrued fees for services by
the Purchaser in an amount equal to AUD$58,000.00 (the “Purchase
Price”).  The Purchase Price constitutes full and adequate
consideration for the Shares, and the Shares, when issued in accordance with the
terms herein, will be fully-paid and nonassessable outstanding shares of Class B
Preferred.

     

    2. General.  The
Purchaser hereby makes the representations on Exhibit
A with respect to the purchase of the Shares hereunder.  The
Purchaser agrees to the restrictions on transfer on Exhibit
B.  This Agreement shall be governed by the laws of the State
of Utah without regard to principles of conflicts of laws.  The
representations, warranties, covenants and agreements made in this Agreement
shall survive the closing of the transactions contemplated
hereby.  Neither party may assign this Agreement except with the prior
written consent of the other party.  Except as otherwise provided in
this Agreement, the provisions of this Agreement shall inure to the benefit of,
and be binding upon, the successors and permitted assigns of the
parties.  This Agreement constitutes the entire understanding and
agreement among the parties with regard to the subject matter hereof, and
supersedes all prior and contemporaneous agreements and understandings with
respect thereto.  No provision of this Agreement may be amended or
waived except by a written instrument signed by all parties.  No
unenforceable or invalid provision of this Agreement shall affect the
enforceability or validity of the remaining provisions hereof.  This
Agreement may be executed in any number of counterparts, each of which shall be
enforceable against the parties executing such counterparts, and all of which
together shall constitute one instrument.  Facsimile copies of signed
signature pages of this Agreement shall be binding originals.

     

    IN WITNESS WHEREOF, this Stock
Purchase Agreement is executed effective as of the date first set forth
above.

    

    PURCHASER:                                                                               
     COMPANY:

    

    GARB OIL & POWER
COROPRATION

    a Utah corporation

    

    By:                                                                                         
By: 

    Name:
Alan
Fleming                                                                Name: John
Rossi

                                      
Title: Chief Executive
Officer

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
A

     

    INVESTMENT
REPRESENTATION STATEMENT

     

     

    
      	
              1.  

            	
              Accredited
      Investor.  The Purchaser is an “accredited investor”
      within the meaning of Regulation D, Rule 501(a), promulgated by the
      Securities and Exchange Commission under the Securities Act of 1933, as
      amended (the “Securities
      Act”).

            

    

     

    
      	
              2.  

            	
              Purchasing for Own
      Investment.  The Purchaser is purchasing the Shares
      solely for investment purposes, and not for further
      distribution.  The Purchaser’s entire legal and beneficial
      ownership interest in the Shares is being purchased and shall be held
      solely for the Purchaser’s account, except to the extent the Purchaser
      intends to hold the Shares jointly with the Purchaser’s
      spouse.  The Purchaser is not a party to, and does not presently
      intend to enter into, any contract or other arrangement with any other
      person or entity involving the resale, transfer, grant of participation
      with respect to or other distribution of any of the Shares.  The
      Purchaser’s investment intent is not limited to its present intention to
      hold the Shares for the minimum capital gains period specified under any
      applicable tax law, for a deferred sale, for a specified increase or
      decrease in the market price of the shares, or for any other fixed period
      in the future.

            

    

     

    
      	
              3.  

            	
              Ability to Protect Own
      Interests.  The Purchaser can properly evaluate the
      merits and risks of an investment in the Shares and can protect its own
      interests in this regard, whether by reason of the Purchaser’s own
      business and financial expertise, the business and financial expertise of
      certain professional advisors unaffiliated with the Company with whom the
      Purchaser has consulted, or the Purchaser’s preexisting business or
      personal relationship with the Company or any of its officers, directors
      or controlling persons.

            

    

     

    
      	
              4.  

            	
              Informed About the
      Company.  The Purchaser is sufficiently aware of the
      Company’s business affairs and financial condition to reach an informed
      and knowledgeable decision to acquire the Shares.  The Purchaser
      has had opportunity to discuss the plans, operations and financial
      condition of the Company with its officers, directors or controlling
      persons, and have received all information it deems appropriate for
      assessing the risk of an investment in the
  Shares.

            

    

     

    
      	
              5.  

            	
              Economic
      Risk.  The Purchaser realizes that the purchase of the
      Shares involves a high degree of risk, and that the Company’s future
      prospects are uncertain.  The Purchaser is able to hold the
      Shares indefinitely if required, and is able to bear the loss of its
      entire investment in the Shares.

            

    

     

    
      	
              6.  

            	
              Restricted
      Securities.  The Purchaser understands that the Shares
      are “restricted securities” in that the sale of the Shares has not been
      registered under the Securities Act in reliance upon an exemption for
      non-public offerings.  In this regard, the Purchaser also
      understands and agrees that: (i) the Purchaser must hold the Shares
      indefinitely, unless any subsequent proposed resale is registered under
      the Securities Act, or unless an exemption from registration is otherwise
      available (such as Rule 144); (ii) the Company is under no obligation
      to register any subsequent proposed resale of the Shares; and (iii) the
      certificate evidencing the Shares will be imprinted with a legend which
      prohibits the transfer of the Shares unless such transfer is registered or
      such registration is not required in the opinion of counsel for the
      Company.

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

     

    
      	
              7.  

            	
              Rule
      144.  The Purchaser is familiar with Rule 144
      adopted under the Securities Act, which in some circumstances permits
      limited public resales of “restricted securities” like the Shares acquired
      from an issuer in a non-public offering.  The Purchaser
      understands that its ability to sell the Shares under Rule 144 in the
      future is uncertain, and will depend upon, among other things:
      (i) the availability of certain current public information about the
      Company; (ii) the resale occurring more than one year after the
      Purchaser’s purchase and full payment (within the meaning of Rule 144) for
      the Shares; and (iii) if
      the Purchaser is an affiliate of the Company, or a non-affiliate who has
      held the Shares less than two years after the Purchaser’s purchase and
      full payment: (A) the sale being made through a broker in an
      unsolicited “broker’s transaction” or in transactions directly with a
      market maker, as said term is defined under the Securities Exchange Act of
      1934, as amended, (B) the amount of Shares being sold during any three
      month period not exceeding the specified limitations stated in Rule 144,
      and (C)
      timely filing of a notice of proposed sale on Form 144, if
      applicable.

            

    

     

    
      	
              8.  

            	
              Availability of Rule
      144.  The Purchaser understands that the requirements of
      Rule 144 may never be met, and that the Shares may never be
      saleable.  The Purchaser further understands that at the time
      the Purchaser wishes to sell the Shares, there may be no public market for
      the Company’s stock upon which to make such a sale, or the current public
      information requirements of Rule 144 may not be satisfied, either of
      which would preclude the Purchaser from selling the Shares under
      Rule 144 even if the one-year minimum holding period had been
      satisfied.

            

    

     

    
      	
              9.  

            	
              Restrictions on
      Resale.  The Purchaser understands that in the event Rule
      144 is not available it, any future proposed sale of any of the Shares by
      the Purchaser will not be possible without prior registration under the
      Securities Act, compliance with some other registration exemption (which
      may or may not be available), or each of the
      following: (i) written notice to the Company containing detailed
      information regarding the proposed sale, (ii)  an opinion of counsel
      to the effect that such sale will not require registration, and (iii) the
      Company notifying the Purchaser in writing that its counsel concurs in
      such opinion.  The Purchaser understands that neither the
      Company nor its counsel is obligated to provide the Purchaser with any
      such opinion.  The Purchaser understands that although
      Rule 144 is not exclusive, the Staff of the SEC has stated that
      persons proposing to sell private placement securities other than in a
      registered offering or pursuant to Rule 144 will have a substantial
      burden of proof in establishing that an exemption from registration is
      available for such offers or sales, and that such persons and their
      respective brokers who participate in such transactions do so at their own
      risk.

            

    

     

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    Exhibit
B

     

    RESTRICTIONS
ON TRANSFER

     

     

    
      	
              1.  

            	
              Legends.  The
      Purchaser understands and agrees that the Company shall cause the legends
      set forth below, or substantially equivalent legends, to be placed upon
      any certificate(s) evidencing ownership of the Shares, together with any
      other legends that may be required by the Company or by applicable state
      or federal securities laws:

            

    

     

    THE
SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”) OR ANY UNDER THE SECURITIES LAWS OF ANY STATE AND
MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED
EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT
TO REGISTRATION OR AN EXEMPTION THEREFROM.  THE ISSUER OF THESE
SECURITIES MAY REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT
SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH
THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

     

    THE
SHARES REPRESENTED HEREBY ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AS SET
FORTH IN THE STOCK PURCHASE AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER
OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE
ISSUER.  SUCH TRANSFER RESTRICTIONS ARE BINDING ON TRANSFEREES OF
THESE SHARES.

     

    
      	
              2.  

            	
              Transfer Procedure;
      Stop-Transfer Notices; Refusal to Transfer.  Prior to
      transferring any Shares, the Purchaser shall deliver to the Company a
      written notice stating: (i) the Purchaser’s bona fide intention to make a
      permitted transfer of its Shares; (ii) the name, address and phone number
      of each proposed transferee; (iii) the aggregate number of Shares to be
      transferred to each proposed transferee; and (iv) the exemptions under
      applicable state and federal securities laws upon which the Purchaser is
      relying in making the proposed transfer.  The Purchaser shall
      also deliver to the Company a written agreement executed by the transferee
      or other recipient of Shares pursuant to which such transferee agrees to
      be bound by the transfer restrictions set forth herein as was the
      Purchaser.  The Purchaser agrees that to ensure compliance with
      the restrictions referred to herein, the Company may issue appropriate
      “stop transfer” instructions to its transfer agent, if any, and that, if
      the Company transfers its own securities, it may make appropriate
      notations to the same effect in its own records.  The
      Company shall not be required (a) to transfer on its books any Shares
      that have been sold or otherwise transferred in violation of any of the
      provisions of this Agreement or (b) to treat as owner of such Shares
      or to accord the right to vote or pay dividends to any purchaser or other
      transferee to whom such Shares shall have been so
    transferred.

            

    

     

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EXHIBIT 10.1

 

LICENSE AGREEMENT

This License Agreement is made and entered into as of the 26th day of March, 2010, by and among AlumiFuel Power Corporation (“AFPW”) a Nevada Corporation located and doing business at 7315 E Peakview Avenue, Centennial, CO 80111, AlumiFuel Power, Inc. ("API") a Colorado corporation located and doing business at 3711 Market Street, Suite 950, Philadelphia, PA 19104, (hereinafter “LICENSORS”), and AlumiFuel Power International, Inc., a Colorado corporation located and doing business at 7315 E Peakview Avenue, Centennial, CO 80111 (hereinafter “LICENSEE”).

WHEREAS, LICENSOR is the owner of certain Intellectual Property pertaining to an exothermic reaction of aluminum, a catalyst and water for the production of hydrogen gas and steam; and

WHEREAS, LICENSOR has filed United States Provisional Patent Applications and owns certain trademarks as set forth in Exhibit A; and

WHEREAS, LICENSOR desires to have manufactured, sell and offer for sale products utilizing LICENSOR’s reaction for the production of hydrogen gas and steam; and

WHEREAS, LICENSOR desires to grant to LICENSEE authorization to have manufactured, sell and offer for sale its hydrogen generation products, subject to the terms and conditions in this Agreement (the “Products”); and

NOW, THEREFORE, in consideration of the premises and mutual covenants and provisions hereinafter set forth, it is agreed by and between the parties hereto as follows:

1.           Subject to the terms and conditions hereof, LICENSOR grants to LICENSEE an exclusive license for the marking, sale and use of products utilizing the Intellectual Property set forth in Exhibit A in all countries outside of North America, including: all patents issued pursuant to these applications or amendment thereof and the right to use all applicable copyrights, trademarks and related intellectual property obtained on or in connection with the process and Products; the right to use all know-how, technology, techniques and processes necessary or useful in connection with the licensed Intellectual Property; and the right to license and use any refinements or improvements made to the licensed Intellectual Property during the term of this Agreement.

2.           In the manufacture and sale of Products, LICENSEE shall maintain standards of quality in compliance with guidelines to be established by LICENSOR and with all applicable laws and regulations and shall conform to relevant industry standards of quality and safety.

3.           Upon the request of LICENSOR, LICENSEE shall permit LICENSOR or its duly authorized representatives to inspect on the premises of LICENSEE during normal business hours.

4.           Samples of all advertising, promotional materials, catalogs, packages, containers, labels, and labeling referring or relating to the Products must be submitted to LICENSOR and receive LICENSOR’s written approval prior to their use.  Approval or disapproval shall lie solely in LICENSOR’S discretion.  LICENSOR agrees to use reasonable efforts to complete such review on a timely basis.  In the event LICENSOR shall not have provided written notice to LICENSEE of LICENSOR’s disapproval of any such material within 30 days of LICENSOR’s receipt of the description thereof, LICENSOR’s approval shall be deemed to have been given, in writing, in accordance with the terms of this Agreement.  LICENSEE shall provide from time to time additional samples of all advertising, promotional materials, catalogs, packages, containers, labels, and labeling referring or relating to the Products after beginning their approval use upon LICENSOR’s reasonable request.

 

  

  

  

 

5.           LICENSEE acknowledges LICENSOR’s exclusive right, title and interest in and to the Intellectual Property and recognizes that all uses by LICENSEE shall inure to the benefit of LICENSOR.  LICENSEE shall not at any time represent that it has any ownership in the Intellectual Property.  LICENSEE shall not at any time represent that it has any rights other than the rights to use expressly provided for in this Agreement.  If this Agreement is terminated or expires, except as the parties may otherwise agree in writing, all rights granted to LICENSEE hereunder shall continue to be owned by LICENSOR.  LICENSEE shall cooperate with LICENSOR whenever LICENSOR deems it necessary in claiming rights in the Intellectual Property throughout the world, including executing all documents LICENSOR deems necessary or desirable in connection with any registrations.  Accordingly, LICENSEE agrees that it shall not, during the term of this Agreement or thereafter, attack the title or any rights of LICENSOR in and to the Intellectual Property or attack the validity of this Agreement for the purpose of invalidating any of LICENSOR’s rights, title or interest.

6.           LICENSEE shall notify LICENSOR in writing of all instances of any potentially conflicting or infringing use of any of the Intellectual Property or any confusingly similar.  LICENSOR shall have the exclusive right, at LICENSOR’s expense, to determine what action, if any, is to be taken in each such instance.  If LICENSOR decides to take any action, LICENSEE agrees to become a party to such action if necessary, and to cooperate with LICENSOR in the prosecution of any such action or proceeding involving any alleged infringement or other conflict respecting LICENSOR’s rights.  All damages or other monetary relief recovered in such action by reason of a judgment or settlement shall first be paid to LICENSEE for actual damages representing injury sustained by LICENSEE, with the balance, if any, paid to LICENSOR.

7.           If any claim, demand or suit for infringement shall be asserted against LICENSEE on account of LICENSEE’s use, LICENSEE shall give LICENSOR timely notice of such claim, demand or suit, and LICENSOR shall have to the right at its discretion to either defend or settle such claim, demand or suit.  LICENSEE agrees to cooperate with LICENSOR in the defense or settlement of any such claim, demand or suit for infringement.  If LICENSOR declines at its discretion to defend or settle any such claim, demand or suit, LICENSEE may do so at LICENSEE’s expense.

8.           For the rights granted to LICENSEE by this Agreement, LICENSEE shall pay LICENSOR 25,000,000 shares of the LICENSEE'S $0.001 par value common stock.  In addition, LICENSEE agrees to reimburse LICENSOR for reasonable costs and expenses related to the past, present and future development costs of the IP in an amount to be determined by the parties.

9.           The term of this Agreement shall be a perpetual license subject to any alterations and amendments or termination as may be mutually agreed to by the parties.

10.           LICENSOR or its representatives may upon reasonable notice at reasonable times during any business day of LICENSEE inspect, and make copies of, all books, ledgers, accounts, correspondence, memoranda or other records and documents of LICENSEE to the extent they pertain to transactions under this Agreement.

11.           This Agreement and all rights and duties herein are personal to LICENSEE and shall not, without LICENSOR’s prior written approval, be assigned, mortgaged, sublicensed, or otherwise encumbered by LICENSEE or by operation of law, except that LICENSEE may assign any of its rights or duties hereunder to a wholly-owned direct or indirect subsidiary of LICENSEE; provided, however, LICENSEE shall remain fully liable for all obligations imposed on LICENSEE by this Agreement.  Any attempt by LICENSEE to grant a sublicense or to assign, mortgage, encumber or part with possession or control of the Agreement, other than as expressly contemplated by the immediately preceding 

 

  

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sentence, shall be void and shall constitute a material breach of this Agreement.  This Agreement and any or all rights and duties may be assigned by LICENSOR without the consent of LICENSEE provided no such assignment shall release LICENSOR from its obligations hereunder.

12.           Nothing in this License shall be deemed or construed by LICENSOR, LICENSEE, or any third party as creating a relationship of principal and agent, joint venture, or partnership between the parties hereto, and neither shall so hold itself out to the public.

 

13.          This Agreement shall be binding upon the successors and assigns of both parties.

14.           A waiver by either party hereto of any right hereunder, or of any failure to perform, or of any breach by the other party, shall not be a waiver of any other right hereunder or of any subsequent breach or failure by the other party, whether of a similar nature or otherwise.

15.           This Agreement forms the entire understanding and agreement between the parties with respect to the subject matter of this Agreement and supersedes any and all prior negotiations, understandings, or agreements in regard to such subject matter.

16.           This Agreement may be amended, modified or discharged only by a written instrument expressly setting forth such amendment or modification and duly executed by LICENSOR and LICENSEE, and the provisions of this paragraph may not be waived except by a written instrument so executed.

17.           Notices under this Agreement shall be served by certified mail or express courier or regular mail by the parties hereto at the addresses shown below.

18.           In the event of bankruptcy or insolvency of LICENSEE, this Agreement shall be deemed null and void.

19.           The parties hereby agree that LICENSOR will provide LICENSEE certain services as related to sales, marketing, manufacturing and order fulfillment.  These arrangements will be set forth in detail in a separate agreements as may be necessary.

20.           The LICENSOR is the sole and exclusive owner of all right, title and interest in and to the Intellectual Property subject to this License, free and clear of any lien, security interest, claim of right or other encumbrance of any sort.

21.           The LICENSOR has no knowledge or information of, and has received no notice of any sort from any party, asserting a lien, charge, claim or interest in the Intellectual Property or challenging the right of the LICENSOR to the Intellectual Property.

22.           The LICENSOR has not granted any license or other rights of any sort of, in or to the Intellectual Property to any other person or entity.

23.           There have not been and there are no pending or threatened suits, claims, actions or other proceedings of any sort involving LICENSOR relating to the Intellectual Property, including but not limited to any concerning alleged infringement, improper use, or misappropriate of any of the Intellectual Property.

24.           There are no actions, challenges to validity, interferences or other contested proceedings before the United States Patent and Trademark Office, or in any Federal, state or other court or before any other governmental entity relating to the Intellectual Property or any pending application with respect to any of the Intellectual Property.  LICENSOR has no knowledge of any prior art or any claim by others of the existence of prior art or any other grounds that would prevent LICENSOR from obtaining a patent for the Intellectual Property.

 

  

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25.           The LICENSOR has not asserted any claim of a violation or infringement by others of its rights to or in connection with any of the Intellectual Property.

26.           The LICENSOR has filed patent application(s) and is diligently and timely pursuing the process of obtaining one or more patents with respect to the Intellectual Property, and has taken all reasonable and prudent steps to protect the Intellectual Property from infringement by any other person or entity, and agrees to take such future steps as is reasonably necessary to obtain and perfect such patents.

27.           The consummation of the transaction provide for in this License will not alter, impair or modify any of LICENSOR’S rights in the Intellectual Property, except to the extent expressly provided for in the License.

28.           Both LICENSOR and LICENSEE are corporations that have been duly organized and are in good standing in their respective state of incorporation each with the power to carry out the terms and conditions of this Agreement as agreed to by their executing representatives who have been duly authorized with the proper corporate authority in compliance with all applicable laws.

29.           There are no orders, judgments, injunctions or directives of any Federal, state or other court, or of any governmental agency that would restrain, limit or otherwise interfere with the transactions provided for in this License.

30.           Contact information is as follows:

LICENSORS:         AlumiFuel Power Corporation

7315 E Peakview Avenue

Centennial, Colorado 80111

(303) 796-8940

and

AlumiFuel Power, Inc.

3711 Market Street, Suite 950

Philadelphia, Pennsylvania 19104

(215) 921-9206

LICENSEE:            AlumiFuel Power International, Inc.

7315 E Peakview Avenue

Centennial, Colorado 80111

(303) 796-8940

31.           This Agreement shall be deemed to be entered into in Colorado and shall be governed and interpreted according to the laws of the State of Colorado, United States of America.

[Signature Page Follows]

 

  

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Executed by LICENSORS as of the date first above written:

	  	
AlumiFuel Power Corporation

	  	  
	  	
By: /S/ HENRY FONG

	  	
Henry Fong

President

 

	  	
AlumiFuel Power, Inc.

	  	  
	  	
By: /S/ DAVID J. CADE

	  	
David J. Cade

President

Executed by LICENSEE as of the date first above written:

	  	
AlumiFuel Power International, Inc.

	  	  
	  	
By: /S/ THOMAS B. OLSON

	  	
Thomas B. Olson

Corporate Secretary

 

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