Document:

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT (this "Agreement") made as of the 17th day of October, 2016 by and between Timothy Carlson, residing at the address indicated following his signature below (hereinafter referred to as "Executive") and Tronox LLC, a Delaware limited liability company, having its principal place of business at 263 Tresser Boulevard, Suite 1100, Stamford, CT 06901 (hereinafter referred to as the "Company").

1.          Employment. The Company hereby employs Executive and Executive agrees to work for the Company as Chief Financial Officer during the Term (as defined below) of and upon the terms and conditions set forth in this Agreement.

2.          Term. The term of this Agreement (the "Term") shall be for a period beginning on October 31, 2016 (the "Commencement Date") and continuing until the third anniversary of the Commencement Date, unless earlier terminated in accordance with this Agreement. If either party elects not to renew this Agreement at the end of the Term, such party shall give the other party not less than 30 days written notice of non-renewal.

3.          Position and Duties. The Executive shall have the duties, responsibilities and authorities customarily associated with the position of Chief Financial Officer in a company the size and nature of the Company and will perform such additional duties as the Chief Executive Officer of the Company (the "CEO") shall determine. The Executive shall report directly to the CEO. The Executive agrees to serve, without additional compensation, as a member of the board of directors and/or as an officer of any Affiliate (as defined in Section 14(c) below) of the Company. The Executive agrees to devote his full business time, attention and energies to the business of the Company and its Affiliates and the performance of his duties hereunder. Executive shall not, without the prior written consent of the Company, directly or indirectly, during the Term, render services, for compensation or otherwise, to or for any other person or firm; provided that nothing herein shall be interpreted to preclude Executive from serving on the Board of Directors of any charitable or other tax exempt or civic organization with the prior consent of the CEO, but only to the extent that such service does not materially interfere with the performance of the Executive's duties and responsibilities hereunder and such service does not adversely reflect on the reputation of the Company or conflict with the business goals of the Company, as determined in the sole discretion of the CEO. The Executive may also manage his personal and family investments, to the extent such activities do not materially interfere with the performance of his duties and responsibilities hereunder.

4.          Place of Performance. The Executive shall be based primarily at the Company's principal executive offices, currently located in Stamford, Connecticut, or such other Company location as may be reasonably required by the CEO.

5.          Compensation/Benefits.

 (a)            Base Salary. During the Term of this Agreement, the Company agrees to pay Executive a base annual salary of $520,000 ("Base Salary"), less applicable deductions. Such Base Salary shall be reviewed no less frequently than annually during the term of this Agreement and may be increased by the compensation committee of the Board of Directors of the Company (the "Compensation Committee"). Such Base Salary shall be payable in accordance with the Company's normal business practices or in such other amounts and at such other times as the parties may mutually agree.

 

 (b)           Regular Annual Bonus. During the Term of this Agreement, the Executive shall be eligible for an annual cash performance bonus (the "Annual Bonus") of up to seventy percent (70%) of Base Salary under the Company's annual bonus plan (as in effect from time to time for senior executives), based upon the Company's achievement of performance targets established by the Compensation Committee,  after consultation with the CEO, no later than 60 days after the commencement of the relevant fiscal year (the "Target Bonus"). These targets will be revised annually within sixty (60) days of the beginning of each fiscal year in consultation with the Executive. The Annual Bonus is discretionary, may be cancelled or revised by the Company at any time, and may be structured as a part of a deferred compensation arrangement. The Executive shall be eligible for a pro rata Annual Bonus for 2016.

 (c)           Long-Term Incentive Award. During the Term of this Agreement, the Executive shall be eligible for an annual long term incentive award (the "LTIP Grant") pursuant to one or more award agreements to be executed by the Executive under the Tronox Limited Management Equity Incentive Plan (as in effect from time to time for senior executives) (the "LTIP Plan") having a grant date value of up to one hundred fifty percent (150%) of Base Salary, as determined by the Compensation Committee. The LTIP Grant currently consists of restricted stock, with time-based restricted shares vesting ratably over three (3) years and performance-based restricted stock restrictions lapsing after three (3) years. The LTIP Grant is discretionary, may be cancelled or revised by the Company at any time, and may be structured as a part of a deferred compensation arrangement.

 (d)           Stock Ownership Guidelines. The Executive understands that he is subject to the Company's Stock Ownership Guidelines, a copy of which has been made available to the Executive, as amended from time to time (the "Stock Ownership Guidelines"). To the extent not covered by other shares in the Company owned by the Executive, the LTIP Grant and any other equity-based compensation will be considered under the Stock Ownership Guidelines as provided therein. Such Stock Ownership Guidelines include among other things a requirement that the Executive hold Company common stock equal to at least three times his Base Salary. The Executive will have five years to satisfy such stock ownership requirement.

 (e)           Benefits/Vacation. During the Term of this Agreement, the Company shall provide Executive with such other benefits, including medical, dental, life insurance, retirement and other plans as are made generally available to senior executive employees of the Company from time to time. Executive shall be entitled to five (5) weeks of paid vacation in accordance with the applicable policies of the Company, which shall be accrued and used in accordance with such policies. In addition, the Executive will be eligible to participate in the Company's Executive Financial Counseling Program, and utilize the financial advisors of his own choosing provided that the Company will not reimburse the Executive for more than $10,000 per year for this service. Nothing in this Agreement shall be construed to require the Company to establish any benefit plans or to prevent the modification or termination of any benefit plans once established.

 

 (f)           Expenses. During the Term of this Agreement, the Company shall reimburse Executive for the reasonable business expenses incurred by Executive in the course of performing his duties for the Company hereunder in accordance with the procedures then in place for such reimbursement.

6.          Early Termination.

 (a)            Events of Termination. The Executive's employment hereunder shall be terminated and, other than the obligations listed in Section 6(c), the Company's obligations hereunder shall cease, including the obligation to pay compensation for any period after the date of termination. Grounds for termination shall include:

 

 (i)    Death: without the necessity of notice, upon the death of the Executive;

 

 (ii)   By the Company:

	 	
a.

	
upon the Disability of the Executive, or

 

	 	
b.

	
without Cause, or

 

	 	
c.

	
with Cause. In order to invoke a termination for Cause, (1) the Company must provide written notice to the Executive stating the basis for the termination for "Cause," and (2) as to clauses (A), (B) or (E) of Section 6(b)(ii), the Executive has failed to cure the conduct that is the basis of the determination of Cause, to the extent curable, within thirty (30) days of the giving of such notice.

 

 (iii)   By the Executive:

		
a.

	
upon thirty (30) days advance written notice, or

		
b.

	
for Good Reason. In order to invoke a termination for Good Reason, (A) the Executive must provide written notice to the Company within ninety (90) days of the occurrence of any event of "Good Reason," (B) the Company must fail to cure such event within thirty (30) days of the giving of such notice and (C) the Executive must terminate employment within thirty (30) days following the expiration of the Company's cure period.

 (b)           Definitions.  As used herein, the following terms shall have the meanings set forth below:

 

 (i)          The term "Disability" shall mean the inability of the Executive to perform the essential functions of his job, even with reasonable accommodation, as a result of a disability or illness, as such terms are defined by the Americans with Disabilities Act, which inability is expected to exceed one hundred eighty (180) days (including weekends and holidays) in any three hundred sixty-five (365)-day period. "Disability shall be determined by agreement of the Executive's treating physician and a physician appointed by the Company or, if such physicians cannot agree on Disability, they shall together appoint a third independent physician whose determination of Disability shall be final. The Executive shall make himself available for examination by the physician or physicians making the determination of Disability as the Company may reasonably request.

 (ii)          The term "Cause" shall mean a finding by the CEO that the Executive has (A) acted with negligence or engaged in misconduct in connection with the performance of his duties hereunder, (B) engaged in an act of insubordination, (C) engaged in common law fraud against the Company or its employees, (D) been convicted of, or pleaded nolo contendere to, a crime (other than minor traffic violations), (E) acted against the best interests of the Company in a manner that has or could have a material adverse effect on the financial condition or reputation of the Company, as determined by the CEO in his sole discretion, or (F) materially breached this Agreement or the Non-Disclosure, Non-Competition and Assignment of Work Product Agreement (as defined below).

 (iii)          The term "Good Reason" shall mean (A) any material diminution in the Executive's title, duties or authority; (B) a reduction in the Executive's Base Salary; (C) the assignment of duties substantially inconsistent with the Executive's status as an executive officer of the Company; (D) any other material breach of this Agreement; or (E) the failure of the Company to obtain the assumption in writing of its obligations under this Agreement by any successor to all or substantially all of the assets of the Company after a merger, consolidation, sale or similar transaction in which such Agreement is not assumed by operation of law.

 

 (c)            Payments Upon Termination.

 (i)          Upon the death or Disability of the Executive, the Executive or his estate or legal representative shall be entitled to all compensation and benefits earned but not yet paid to and including the date of termination, including (i) Base Salary, (ii) determined but unpaid Annual Bonus approved by the Compensation Committee for the prior year, (iii) accrued and unused vacation and sick days, (iv) any amounts or benefits owing to the Executive or to the Executive's beneficiaries under then applicable benefit plans of the Company (excluding any severance plan, program, agreement or arrangement) and (v) reimbursement of expenses properly incurred by the Executive (together, the "Accrued Benefits"). In addition, the Executive or his estate or legal representative shall be entitled to a lump sum amount equal to a pro-rated portion, through the last day of the calendar month immediately preceding the date of termination, of the Annual Bonus for the current year, based on the achievement of the applicable performance criteria for the year of the Executive's death (the "Pro Rated Bonus Amount"). In the event of the Executive's Disability, any amounts payable as compensation during the period of disability or illness shall be reduced by any amounts paid during such period under any disability plan or similar insurance of the Company.

 (ii)          Upon termination of this Agreement by the Company for any reason other than death, disability or Cause, and upon termination of this Agreement by the Executive for Good Reason, Executive shall be entitled to (i) all Accrued Benefits, (ii) the Pro-Rated Bonus Amount and (iii) payment of severance in an amount equal to the sum of his annual Base Salary plus his Annual Bonus for one year (together, the "Severance Amount"), which shall be payable in equal installments over the course of twelve (12) months in accordance with the Company's normal payroll practices, or in such other amounts and at such other times as the parties may mutually agree in writing. In addition, the Executive and his covered dependents shall be entitled to continued participation for the one-year period following the date of termination in such medical, dental and hospitalization insurance coverage in which the Executive and his eligible dependents were participating immediately prior to the date of termination, on the same terms and conditions as applicable immediately prior to the Executive's termination.

 (iii)          Upon termination of this Agreement by the Company for Cause, upon termination of this Agreement by the Executive without Good Reason, and upon the expiration of this Agreement, Executive shall be entitled to all Accrued Benefits and no other payments.

 

 (d)           Timing of Payments. The Executive shall be paid the Base Salary through date of termination, determined but unpaid prior year Annual Bonus and accrued and unused vacation and sick days included in the Accrued Benefits promptly after the date of termination. The remaining Accrued Benefits shall be paid in accordance with Company plans and policies in effect from time to time. The Pro-Rated Bonus Amount, if any, shall be paid at the time bonuses are generally paid by the Company. Except as set forth herein, following payment of the Accrued Benefits, the Pro-Rated Bonus Amount, if applicable, and the Severance Amount, if applicable, the Company shall have no further obligations to the Executive or his estate or legal representative under this Agreement.

 

 (e)            Release. As a condition of receiving any and all amounts payable and benefits or additional rights provided pursuant to this Agreement, other than the Accrued Benefits, the Executive must execute and deliver to the Company and not revoke a general release of claims in favor of the Company in substantially the form attached on Annex B hereto. Such release must be executed and delivered (and no longer subject to revocation, if applicable) within sixty (60) days following the Executive's date of termination. The Company shall deliver to the Executive the appropriate form of release of claims for the Executive to execute within five (5) business days following the date of termination.

 

 (f)            Certain Payment Delays. Notwithstanding anything to the contrary set forth herein, to the extent that the payment of any amount described in Section 6(c) constitutes "nonqualified deferred compensation" for purposes of Code Section 409A (as defined in Section 21(a) hereof), any such payment scheduled to occur during the first sixty (60) days following the termination of employment shalt not be paid until the first regularly scheduled pay period following the sixtieth (60th) day following such termination and shall include payment of any amount that was otherwise scheduled to be paid prior thereto.

 

 (g)           No Offset. The Executive shall be under no obligation to seek other employment and there shall be no offset against amounts due to him on account of any remuneration or benefits provided by any subsequent employment he may obtain.

 

 (h)           Resignations. If the Executive's employment is terminated for any reason, voluntary or involuntary, the Executive will resign as a director and officer of each of the Company's Affiliates, as applicable, and from any other entity in which he is serving as a director or officer at the request of the Company. Such resignations shall be effective no later than the date of termination of the Executive's employment with the Company.

 

7.          Employer's Authority. Executive agrees to observe and comply with the rules and regulations of the Company as adopted by the Company's Board of Directors or the CEO respecting the performance of his duties and to carry out and perform orders, directions and policies communicated to him from time to time.

 

8.          Non-Competition; Non-Disclosure and Assignment of Work Product. Executive will execute the Non-Disclosure, Non-Competition and Assignment of Work Product Agreement of the Company, a copy of which is attached as Annex A hereto and made a part hereof (the "Non-Disclosure, Non-Competition and Assignment of Work Product Agreement"). Said agreement shall survive termination of employment hereunder.

 

9.          Mutual Non-Disparagement. During the Term and for the two (2) year period following the date of termination, the Executive agrees not to make public statements or communications that disparage the Company, its business, services, products or Affiliates or its or their current, former or future directors, executive officers or shareholders (in their capacity as such). During the Term and for the two (2) year period following the date of termination, the Company agrees that it shall not, and that it shall instruct its directors and executive officers to not, make public statements or communications that disparage the Executive. The foregoing shall not be violated by truthful statements in response to legal process, required governmental testimony or filings, or administrative or arbitral proceedings (including, without limitation, depositions in connection with such proceedings).

10.         Execution, Delivery and Performance. The execution, delivery and performance by Executive of this Agreement or any other agreement, instrument or document contemplated herein or hereby will not result in a breach of or conflict with any terms of any other agreement, instrument or document to which Executive is a party or by which Executive or his property is bound. No consent or approval of any person or entity, other than those that have been obtained by Executive, is required for Executive to execute, deliver and perform its obligations under this Agreement or any agreement, instrument or document contemplated herein or hereby.

11.         Indemnification. During the Term and thereafter, the Company agrees to indemnify and hold the Executive and the Executive's heirs and representatives harmless, to the maximum extent permitted by law, against any and all damages, costs, liabilities, losses and expenses (including reasonable attorneys' fees) as a result of any claim or proceeding (whether civil, criminal, administrative or investigative), or any threatened claim or proceeding (whether civil, criminal, administrative or investigative), against the Executive that arises out of or relates to the Executive's service as an officer, director or employee, as the case may be, of the Company, or the Executive's service in any such capacity or similar capacity with an Affiliate or other entity at the request of the Company, both prior to and after the Commencement Date, and to promptly advance to the Executive or the Executive's heirs or representatives such expenses upon written request with appropriate documentation of such expense upon receipt of an undertaking by the Executive or on the Executive's behalf to repay such amount if it shall ultimately be determined that the Executive is not entitled to be indemnified by the Company. During the Term and thereafter, the Company also shall provide the Executive with coverage under its current directors' and officers' liability policy to the same extent that it provides such coverage to its other executive officers. If the Executive has any knowledge of any actual or threatened action, suit or proceeding, whether civil, criminal, administrative or investigative, as to which the Executive may request indemnity under this provision, the Executive will give the Company prompt written notice thereof; provided that the failure to give such notice shall not affect the Executive's right to indemnification. The Company shall be entitled to assume the defense of any such proceeding and the Executive will use reasonable efforts to cooperate with such defense. To the extent that the Executive in good faith determines that there is an actual or potential conflict of interest between the Company and the Executive in connection with the defense of a proceeding, the Executive shall so notify the Company and shall be entitled to separate representation at the Company's expense by counsel selected by the Executive (provided that the Company may reasonably object to the selection of counsel within ten (10) business days after notification thereof) which counsel shall cooperate, and coordinate the defense, with the Company's counsel and minimize the expense of such separate representation to the extent consistent with the Executive's separate defense. This Section 11 shall continue in effect after the termination of the Executive's employment or the termination of this Agreement.

 

12.         Notices. Any notice permitted or required hereunder shall be deemed sufficient when hand-delivered or mailed by certified mail, postage prepaid, return receipt requested or delivered by nationally recognized overnight courier service and addressed if to the Company at the address indicated above and if to the Executive at the address indicated below (or to such other address as may be provided by written notice received at least five (5) business days prior to the hand delivery or mailing of any such notice).

 

13.        Survival. The provisions of Sections 6, 8, 9, 11, 12, 14, 15, 16, 17, 18, 19,20 and 21 hereof and this Section 13 shall survive the termination of employment of the Executive. In addition, all obligations of the Company to make payments hereunder shall survive any termination of this Agreement on the terms and conditions set forth herein.

14.         Miscellaneous. (a) This Agreement, together with the other agreements referenced herein, (i) constitutes the entire agreement between the parties concerning the subjects hereof, there being no representations, warranties or commitments except as set forth herein, and supersedes and replaces all other agreements related to the subject matter hereof, (ii) shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns, (iii) may be executed in one or more counterparts, each of which shall be an original and all of which shall be deemed to constitute one and the same instrument (iv) may not be assigned by Executive without the prior written consent of the Company, and (v) may be assigned by the Company to any Affiliate of the Company or to the successors or assigns of the Company, provided such successors or assigns carry on substantially the Company's business as conducted at the time of assignment and shall be binding upon, and inure to the benefit of, any such Affiliate, successor or assign.

 

 (b)           Headings herein are for convenience of reference only and shall not define, limit or interpret the contents hereof.

 (c)           As used herein, the term "Affiliate" shall mean any individual or entity controlling, controlled by or under common control with the Company, or any officer or director of the Company, now or in the future, including without limitation, partnerships, limited liability companies or joint ventures in which the Company or any Affiliate acquires a controlling interest.

15.         Amendment; Waiver. This Agreement may be amended, modified or supplemented by the mutual consent of the parties in writing, but no oral amendment, modification or supplement shall be effective. No waiver of any provision of this Agreement or any breach hereunder shall be deemed a waiver of any other provision or subsequent breach, nor shall any such waiver constitute a continuing waiver. Delay or failure of any party to insist on strict performance or observance of any provision of this Agreement or to exercise any rights or remedies hereunder shall not be deemed a waiver. Any waiver shall be effective only if in writing and signed by the waiving party.

16.         Severability. The provisions of this Agreement are severable. The invalidity of any provision shall not affect the validity of any other provision.

17.         Governing Law. This Agreement shall be construed and regulated in all respects under the internal laws of the State of Connecticut, without reference to conflicts of laws rules.

18.         Rights Cumulative. The rights and remedies set forth in this Agreement are in addition to, and cumulative with, any rights or remedies of the parties at law or in equity.

19.         Arbitration. In the event of any dispute between the parties, including but not limited to any claims arising from or related to this Agreement or the termination of this Agreement, any claims related to Executive's employment or the termination of the Executive's employment, or any claims arising under the state and federal laws governing employment (including without limitation discrimination claims), such dispute will be determined, upon the written request of either party, by binding arbitration under the auspices of and pursuant to the Employment Dispute Resolution Rules of the American Arbitration  Association. Such arbitration shall be conducted in Stamford, Connecticut before a single arbitrator. The arbitrator will have no power to add to, subtract from, or modify any of the terms of this Agreement except that a provision otherwise invalid, illegal or unenforceable shall be modified or subtracted from to the least extent necessary to make it valid, legal and enforceable. The decision of the arbitrator shall be final and may be enforced by any court of competent jurisdiction, and both parties hereto consent to the personal jurisdiction of the state and federal courts of Connecticut for such purposes. Notwithstanding the foregoing, the Company shall be entitled to seek injunctive relief against the Executive in the state and federal courts of Connecticut for any breach or threatened breach of any provisions of this Agreement. In addition, in the event that the Company prevails in any such action for injunctive relief, the Executive shall be liable to the Company for all of its attorneys' fees and legal costs incurred in such action, as well as all damages or other remedies available at law.

 

20.        Withholding. The Company may withhold from any benefit payment under this Agreement all federal, state, city or other taxes or other amounts as shall be required pursuant to any law or governmental regulation or ruling.

21.        Section 409A.

 (a)           The intent of the parties is that payments and benefits under this Agreement comply with Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder (collectively "Code Section 409A") and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. If the Executive notifies the Company (with specificity as to the reason therefor) that the Executive believes that any provision of this Agreement (or of any award of compensation, including equity compensation or benefits) would cause the Executive to incur any additional tax or interest under Code Section 409A and the Company concurs with such belief or the Company (without any obligation whatsoever to do so) independently makes such determination, the Company shall, after consulting with the Executive, reform such provision to attempt to comply with Code Section 409A through good faith modifications to the minimum extent reasonably appropriate to conform with Code Section 409A. To the extent that any provision hereof is modified in order to comply with Code Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to the Executive and the Company of the applicable provision without violating the provisions of Code Section 409A.

 (b)           A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a "separation from service" within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a "termination," "termination of employment" or like terms shall mean "separation from service." If the Executive is deemed on the date of termination to be a "specified employee" within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is considered deferred compensation under Code Section 409A payable on account of a "separation from service," such payment or benefit shall be made or provided at the date which is the earlier of (A) the expiration of the six (6)-month period measured from the date of such "separation from service" of the Executive, and (B) the date of the Executive's death, to the extent required under Code Section 409A. Upon the expiration of the foregoing delay period, all payments and benefits delayed pursuant to this Section 21(b) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to the Executive in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

 

 (c)           To the extent that reimbursements or other in-kind benefits under this Agreement constitute "nonqualified deferred compensation" for purposes of Code Section 409A, (A) all expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by the Executive, (B) any right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (C) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.

 (d)           For purposes of Code Section 409A, the Executive's right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments.  Whenever a payment under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the solo discretion of the Company.

 (e)           Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes "nonqualified deferred compensation" for purposes of Code Section 409A be subject to offset by any other amount unless otherwise permitted by Code Section 409A.

 

IN WITNESS WHEREOF, this Agreement is entered into as of the date and year first above written.

	 	
TRONOX LLC

	 	 	 
	 	By: 	
/s/ Richard Muglia

	 	
Richard Muglia

	 	
Senior Vice President, General Counsel and Secretary

	 	 	 
	 	
EXECUTIVE

	 	 	 
	 	By:	
 /s/ Timothy Carlson

	 	
Timothy Carlson

 

Annex A

NON-DISCLOSURE, NON-COMPETITION

AND ASSIGNMENT OF WORK PRODUCT AGREEMENT

THIS NON-DISCLOSURE, NON-COMPETITION AND ASSIGNMENT OF WORK PRODUCT AGREEMENT, made as of the 17th day of October, 2016 (hereinafter this "Agreement"), between Tronox LLC, a Delaware limited liability company (the "Company"), and Timothy Carlson, of Sandy Hook, CT (the "Executive").

 

1.          Nature of the Company's Business. The Executive understands and acknowledges that the Company is in the business of (i) developing, acquiring, managing, producing, marketing, providing and selling chemicals, including without limitation titanium ore and titanium dioxide, and (ii) mining and beneficiating mineral sands, and that the Company may develop, market, license and provide other products and services and may engage in other business activities from time to time.

 

2.          Nature of Employment Obligations. The Company has agreed to hire the Executive on the condition that the Executive enter into and abide by the terms of this Agreement. The parties agree that this Agreement is an essential element of the Executive's employment and, but for the Executive's agreement to comply with its terms, the Company would not have hired the Executive. The Executive agrees that his hiring constitutes good and sufficient consideration for the Executive's promises and obligations under this Agreement.

3.          Covenant Against Disclosure.

 

 A.           Definition of "Confidential Information". For purposes of this Agreement, "Confidential Information" shall mean all information about the Company or any affiliate relating to any of their products or services or any phase of their operations, including, without limitation, business plans and strategies, trade secrets, know-how, contracts, financial statements, pricing strategies, costs, customers and potential customers, vendors and potential vendors, investors and potential investors, marketing and distribution information, business results, software, hardware, databases, processes, procedures, technologies, designs, concepts, ideas, formulas and information, and methods not generally known through legitimate means to any of their Competitors (as defined below), with which the Executive becomes acquainted during the term of his employment. "Confidential Information" also includes confidential information of third parties made available to the Company on a confidential basis. "Confidential Information" shall not include information that(a) is generally known to the public without breach by the Executive, (b) was given to the Executive by a third party without any obligation of confidentiality or (c) that the Executive can demonstrate by written evidence was obtained or independently developed by the Executive prior to employment by the Company.

 

 B.            Confidential Treatment.   The Executive shall not disclose or cause to be disclosed any Confidential Information and shall not use or cause to be used any Confidential Information for any purpose other than fulfilling his employment obligations to the Company, without the express prior written authorization of the Company. The Executive acknowledges that this restriction on disclosure and use applies with respect to all Confidential Information, whether learned before or after the date of this Agreement. All records, files, materials and Confidential Information obtained by the Executive in the course of employment with the Company are confidential and proprietary and shall remain the exclusive property of the Company or its affiliates, as the case may be. Upon the termination of the Executive's employment with the Company or any affiliate, or at any time upon the request of the Company, the Executive (or his heirs or personal representatives, as applicable) shall deliver to the Company all documents and materials containing Confidential Information relating to the business or affairs of the Company or its affiliates, or their customers or clients, and all other documents, materials and other property belonging to the Company or its affiliates, or their customers or clients, that are in the possession or under the control of the Executive. Anything herein to the contrary notwithstanding, the provisions of this section shall not apply when disclosure is required by law or by any court, arbitrator, mediator or administrative or legislative body (including any committee thereof) with actual or apparent jurisdiction to order the Executive to disclose or make accessible  any information, provided that prior to any such disclosure the Executive shall provide the Company with reasonable written notice of the requirements to disclose and an opportunity to object to such disclosure and the Executive shall cooperate with the Company in filing such objection.

 C.             Remedies. The parties acknowledge and agree that Confidential Information is vital to the operations of the Company and its affiliates and that the loss suffered by breach of any of the provisions of this Section 3 cannot be reasonably or adequately compensated for by damages. In the event that the Executive breaches any provision of this Section 3 during the term of employment or thereafter, the Company shall be entitled to equitable relief by way of injunction or otherwise,  in addition to any other remedies the Company may have at law or in equity.

4.          Covenants Against Competition and Solicitation.

 A.            Definition of "Competitor". For purposes of this Agreement, "Competitor" shall mean any company engaged, directly or indirectly, in (i) developing, acquiring, managing, producing, marketing, providing or selling chemicals, including without limitation titanium ore or titanium dioxide, (ii) mining or beneficiating mineral sands or (iii) developing, acquiring, managing, producing, marketing, providing and selling any other products or services that are sold or performed by the Company or its Affiliates during the period of employment of the Executive by the Company.

 

 B.            Non-Competition. The Executive hereby covenants and agrees that for a period commencing on the date of this Agreement and continuing for one (1) year after the Executive ceases to be employed by the Company (hereinafter the "Non-Competition Period"), and regardless of whether Executive voluntarily resigns or is involuntarily discharged, Executive shall not directly or indirectly, either individually  or as an officer, director, shareholder, employee, agent, partner, member, owner, principal, consultant, representative, or in any other individual, corporate or representative capacity, participate in, belong to, be employed by, provide consulting services to or be involved in any business entity that is a Competitor.  This restriction shall apply in the United States and any other country in which the Company is conducting its business. During the Non-Competition Period, the Executive shall not interfere with or damage (or attempt to interfere with or damage) any relationship or agreement between the Company or its affiliates and any customer or potential customer.  This restriction shall not limit the Executive from owning less than one percent (1%) of the outstanding capital stock of a publicly traded company. This Section 4(B) shall not apply if the employment of the Executive terminates as a result of the Company’s decision not to renew or extend the term of the Employment Agreement by and between the Company and the Executive, dated as of October 17, 2016, provided the Executive is not then in material breach of such Employment Agreement or this Agreement.

 C.            Non-Solicitation of Company Clients. During the Non-Competition Period, the Executive agrees not to solicit, entice, interfere with or otherwise attempt to interfere with the business, directly or indirectly, of any Company client for or on behalf of any Competitor. For the purposes of this Agreement, a Company client shall include any potential client or customer of the Company to which the Company made a business proposal or discussed doing business during the six (6) months preceding termination of the Executive's employment with the Company, or any broker, agent or consultant of such person or entity.

 D.            Non-Solicitation of Company Employees. During the Non-Competition Period, the Executive agrees not to solicit for employment and not to hire on his own behalf or on behalf of any other person or entity any employee of the Company or any other person or entity controlling, controlled by or under common control with the Company or any person who was employed by the Company during the six (6) month period immediately preceding the termination of Executive's employment with the Company. During the Non-Competition Period, the Executive also agrees not to solicit or otherwise entice any person employed by the Company to terminate or refrain from continuing such employment or to become employed by or enter into contractual relations with any other individual or entity other than the Company. Notwithstanding the foregoing, the Executive may respond to an unsolicited request from any former employee of the Company for advice on employment matters and may respond to an unsolicited request for an employment reference regarding a former employee of the Company from such former employee, or from a third-party, by providing a reference setting forth his personal views about such former employee, subject to any Company policies or procedures for providing references; provided that, in each case, the Executive does not encourage the former employee to become employed by a Competitor.

 

 E.             Remedies. The parties acknowledge and agree that the Executive's services hereunder are special, unique, unusual and extraordinary, giving them peculiar value, the loss of which cannot be reasonably or adequately compensated solely by damages. In the event that the Executive breaches any provision of this Section 4 during the term of employment or thereafter, the Company shall be entitled to equitable relief by way of injunction or otherwise in addition to any other remedies the Company may have at law or in equity. In the event that the scope of the restrictions on competition and solicitation, the duration of such restrictions or the geographic areas herein specified should be adjudged unreasonable in any court proceeding, then such scope shall be narrowed, such duration shall be reduced by such number of months and such geographic area shall be reduced by elimination of such portion thereof as deemed unreasonable, so that this Agreement may be enforced with such scope, during such period of time and in such geographic area as is adjudged to be reasonable.

 F.             Acknowledgement. The Executive has carefully read and considered the provisions of this Section 4 and, having done so, agrees that the restrictions set forth herein, including, but not limited to, the Non-Competition Period, are fair, are reasonably required to protect the legitimate business interests of the Company, and will not unduly prevent the Executive from earning a living after the termination of his employment with the Company.

5.          Assignment of Work Product.

 A.            Assignment of Work Product. Any inventions, discoveries, designs, graphics, formulas, product improvements, written materials, software, code or other proprietary information, intellectual property or discoveries (collectively, "Work Product"), whether or not they may be patented or copyright protected, resulting from any work the Executive does (alone or with others) as an employee of the Company during the course of his employment and which relate to the business of the Company shall be promptly disclosed by the Executive to the Company and shall be and remain "work for hire" and the exclusive property of the Company. The Executive hereby assigns to the Company any rights the Executive may have or acquire in such Work Product and shall sign and deliver, during or following the course of his employment, and without additional compensation, any instruments confirming the exclusive ownership by Company of such Work Product.

 

 B.            Exceptions.  Notwithstanding Section 5(a), the Executive shall retain all right, title and interest in any ideas, works, inventions or improvements that the Executive can demonstrate by written evidence were developed prior to the commencement of employment. The Executive shall further retain all right, title and interest to his general know-how and expertise in the industry, even if developed or refined during the term of employment.

 C.           Further Assurances. The Executive further undertakes to do all things necessary, without further compensation, but at the Company's expense, to assign all intellectual property rights in Work Product set forth in this Section 5 to the Company or its designee and to obtain patent and copyright protection in the name of the Company or its designee for such ideas, works, inventions or improvements.

6.          Employment Term. No provision of this Agreement is intended to, or does, alter the nature of the parties' employment relationship. This Agreement is not and shall not be construed as a contract of employment for any term or period of time. The Executive understands and agrees that the covenants against disclosure, competition and solicitation set forth above in Section 3 and Section 4 and the assignment of rights set forth above in Section 5 shall remain in effect following the termination of the parties' employment relationship. The Executive further understands and agrees that the covenants against disclosure set forth above in Section 3 and the assignment of rights set forth above in Section 5 have been in effect from the commencement of the Executive's employment.

7.          Defend Trade Secrets Act.  Notwithstanding anything contained in this Agreement to the contrary:

 A.            You shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (i) is made (x) in confidence to a Federal, State or local government official, directly or indirectly, or to an attorney, and (y) solely for the purpose of reporting or investigating a suspected violation of law, or (ii) is made in a complaint or other document filed under seal in a lawsuit or other proceeding.

 B.            If you file a lawsuit for retaliation by an employer for reporting a suspected violation of law, you may disclose a trade secret to your attorney and use the trade secret information in the court proceeding if you (i) file any document containing the trade secret under seal, and (ii) do not disclose the trade secret, except pursuant to court order.

8.          Binding Effect. This Agreement shall be binding upon, and shall inure to the benefit of, the Company and the Executive, and their respective heirs, executors, administrators, legal representatives, successors and assigns.

 

9.          Severability. The provisions of this Agreement shall be deemed severable. The invalidity or unenforceability of any one or more of the provisions of this Agreement shall not affect the validity and enforceability of the other provisions.

10.        Attorneys' Fees and Costs. The Executive shall reimburse the Company for its expenses, disbursements, costs and reasonable attorneys' fees incurred in enforcing its rights upon any breach by the Executive of his obligations hereunder.

11.        Modification or Waiver. No change or modification of this Agreement shall be valid or binding unless it is in writing and signed by both parties. No waiver of any provision of this Agreement shall be valid unless it is in writing and signed by the patty against whom the waiver is sought to be enforced.

12.        Governing Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Connecticut without regard to its conflicts of law principles.

13.         Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

 

14.        Entire Agreement. This Agreement sets forth the entire agreement of the parties in respect of the subject matter contained herein and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties of the parties, whether oral or written, in respect thereof.

 

IN WITNESS WHEREOF, this Agreement is entered into as of the date and year first above written.

	 	
TRONOX LLC

	 	 	 
	 	By: 	
/s/ Richard Muglia

	 	
Richard Muglia

	 	
Senior Vice President, General Counsel and Secretary

	 	 	 
	 	
EXECUTIVE

	 	 	 
	 	By: 	
/s/ Timothy Carlson

	 	
Timothy Carlson

 

Annex B

GENERAL RELEASE

I, Timothy Carlson, in consideration of and subject to the performance by Tronox LLC (together with its parent companies and subsidiaries, the "Company"), of its obligations under Section 6 of the Employment Agreement, dated as of October [ ], 2016 (the "Agreement"), do hereby release and forever discharge as of the date hereof the Company and its respective affiliates and subsidiaries and all present, former and future directors, officers, agents, representatives, employees, successors and assigns of  the Company and/or its respective affiliates and  subsidiaries and direct or indirect owners (collectively,  the "Released Parties")  to the extent provided  herein (this "General Release"). The Released Parties are intended third-party beneficiaries of this General Release, and this General Release may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such Released Parties hereunder.  Terms used herein but not otherwise defined shall have the meanings given to them in the Agreement.

1.          I understand that, other than the Accrued Benefits, the payments or benefits paid or granted to me under Section 6 of the Agreement represent, in part, consideration for signing this General Release and are not salary, wages or benefits to which I was already entitled.   I understand  and agree that I will not receive the payments and benefits specified in Section 6 of the Agreement, other than the Accrued Benefits, unless I execute this General Release and do not revoke this General Release within the time period permitted hereafter or breach this General Release.  Such payments and benefits will not be considered compensation for purposes of any employee benefit plan, program, policy or arrangement maintained or hereafter established by the Company or its affiliates.

2.          Except as provided in Section 4 below and except for the provisions of the Agreement which expressly survive the termination of my employment with the Company, I knowingly and voluntarily (for myself, my heirs, executors, administrators and assigns) release and forever discharge the Company and the other Released Parties from any and all claims, suits, controversies, actions, causes of  action, cross-claims, counter-claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims for costs and attorneys' fees, or liabilities of any nature whatsoever in law and in equity, both past and present (through  the date that this General Release  becomes effective  and enforceable) and whether known or unknown, suspected, or claimed against the Company and/or any of the Released Parties which I, my spouse, or any of my heirs, executors, administrators or assigns, ever had, now have, or hereafter may have, by reason of any matter, cause, or thing whatsoever, from the beginning of my initial dealings with the Company to the date of this General Release, and particularly, but without limitation of the foregoing general terms, any claims arising from or relating in any way to my employment relationship with Company, the terms and conditions of that employment relationship, and the termination of that employment relationship (including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993: the Worker Adjustment Retraining and Notification  Act; the Employee  Retirement  Income Security  Act of 1974; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state or local counterparts, including but not limited to the Connecticut Fair Employment Practices Act ("CFEPA"), the Connecticut  Family and Medical  Leave Act ("CFMLA"), the Connecticut  wage and hour statutes; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance; or under any public policy, contract or tort, or under common  law; or arising under any policies, practices or procedures of the Company; or any  claim  for  wrongful  discharge,  breach  of  contract,  infliction  of emotional  distress, defamation; or any claim for unpaid wages, unpaid bonuses, unpaid vacation time, unpaid overtime (other than the "Accrued Benefits" as that term is defined in the Employment Agreement) or costs, fees, or other expenses, including attorneys' fees incurred in these matters) (all of the foregoing collectively referred to herein as the "Claims").  I understand and intend that this General Release constitutes a general release of all claims and that no reference herein to  a specific form of claim, statute or type of relief is intended to limit the scope of this General Release.

 

3.          I represent that I have made no assignment or transfer of any right, claim, demand, cause of action, or other matter covered by Section 2 above.

4.          I agree that this General Release does not waive or release any rights or claims that I may have under the Age Discrimination in Employment Act of 1967 which arise after the date I execute  this General  Release.    I acknowledge and agree that my separation  from employment with the Company in compliance with the terms of the Agreement shall not serve as the basis for any claim or action (including, without limitation, any claim under the Age Discrimination in Employment Act of 1967).

5.          I agree that I hereby waive all rights to sue or obtain equitable, remedial or punitive relief from any or all Released Parties of any kind whatsoever, including,  without limitation, reinstatement, back pay, front pay, and any form of injunctive relief. Notwithstanding the foregoing, I acknowledge that I am not waiving and am not being required to waive an y right that cannot  be waived under law, including the right to file an administrative  charge with any state or federal agency (such as, but not limited to, the EEOC or SEC) or participate in an administrative investigation or proceeding; provided, however,  that I disclaim and waive any right to share or participate in any monetary award resulting from the prosecution of such charge or investigation or proceeding.

 

6.          In signing this General Release, I acknowledge and intend that it shall be effective as a bar to each and every one of the Claims herein above mentioned or implied.   I expressly consent that this General Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected Claims (notwithstanding any state or local statute that expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating to any other Claims hereinabove mentioned or implied. I acknowledge and agree that this waiver is an essential and material term of this General Release and that without such waiver the Company would not have agreed to the terms of the Agreement.   I further agree that in the event that I should bring a Claim seeking damages against the Company, or in the event that I should seek to recover against the Company in any Claim brought by a governmental agency on my behalf, this General Release shall serve as a complete defense to such Claims to the maximum extent permitted by law. I further agree that I am not aware of any pending claim, or of any facts that could give rise to a claim, of the type described in Section 2 as of the execution of this General Release.

7.          I agree that neither this General Release, nor the furnishing of the consideration for this General Release, shall be deemed or construed at any time to be an admission by the Company, any Released Party or myself of any improper or unlawful conduct.

8.          I agree that I will forfeit all amounts payable by the Company pursuant to the Agreement if I challenge the validity of this General Release; provided, however, that such forfeiture will not be applicable in the event of a challenge under the Age Discrimination in Employment Act. I also agree that if I violate this General Release by suing the Company or the other Released Parties,  I will pay all costs and expenses of defending against the suit incurred by the Released Parties, including reasonable attorneys' fees, and return all payments received by me pursuant to the Agreement on or after the termination of my employment.

 

9.          I agree that this General Release and the Agreement are confidential and agree not to disclose any information regarding the terms of this General Release or the Agreement, except to my immediate family and any tax, legal or other counsel that I have consulted regarding the meaning or effect hereof or as required by law, and I will instruct each of the foregoing not to disclose the same to anyone.

10.        Any non-disclosure provision in this General Release does not prohibit or restrict me (or my attorney) from responding to any inquiry about this General Release or its underlying facts and circumstances by the Securities  and Exchange Commission  (SEC), the Financial Industry Regulatory Authority (FINRA), or any  other self-regulatory organization or governmental entity.

11.        I hereby acknowledge that Sections 6, 8, 9, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20 and 21 of the Agreement shall survive my execution of this General Release.

12.        I represent  that I am not aware of any Claim by me, and I acknowledge that I may hereafter discover Claims or facts in addition to or different than those which I now know or believe to exist with respect to the subject matter of the release set forth in Section 2 above and which, if known or suspected at the time of entering into this General Release, may have materially affected this General Release and my decision to enter into it. I also acknowledge and agree that any such discovery by me shall not in any way alter or diminish the scope or the effect of this General Release.

13.        Notwithstanding anything in this General Release to the contrary, this General Release shall not relinquish, diminish, or in any way waive any rights or claims arising out of any breach by the Company or by any Released Party of the Agreement occurring after the date on which I sign this General Release.

14.        Whenever possible, each provision of this General Release shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this General  Release  is held to be invalid, illegal or  unenforceable  in any respect under any applicable l aw or rule in any jurisdiction,  such invalidity, illegality or unenforceability  shall not affect any other provision or any other jurisdiction, but this General Release shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.   This General Release constitutes the complete and entire agreement  and understanding among the parties, and supersedes any and all prior or contemporaneous agreements, commitments, understandings or arrangements, whether written or oral, between or among any of the parties, concerning the subject matter hereof.

 

BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:

 

	 	(i)	
I HAVE READ IT CAREFULLY;

 

	 	(ii)	
I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT  RIGHTS, INCLUDING  BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED,  TITLE  VII  OF  THE  CIVIL  RIGHTS  ACT  OF   1964,  AS AMENDED, THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES   ACT  OF'   1990, AND  THE  EMPLOYEE  RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED;

	 	
(iii)

	
I VOLUNTARILY CONSENT TO EVERYTHING IN IT;

	 	(iv)	
I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE, SO OR, AFTER CAREFUL READING AND CONSIDERATION, I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;

	 	(v)	
I HAVE  HAD  AT LEAST  [21][45]  DAYS  FROM THE DATE OF  MY RECEIPT  OF THIS  RELEASE TO CONSIDER  IT AND THE CHANGES MADE SINCE MY RECEIPT OF THIS RELEASE ARE NOT MATERIAL OR WERE  MADE AT MY REQUEST AND WILL NOT RESTART THE REQUIRED [21][45]-DAY PERIOD;

	 	
(vi)

	
I UNDERSTAND THAT I HAVE SEVEN (7) DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED;

	 	(vii)	
I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND

	 	(viii)	
I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME.

 

IN WITNESS WHEREOF, the undersigned have duly executed and delivered this General Release; or have caused this General Release to be duly executed and delivered on their behalf.

 

	 	TRONOX LLC	 

 

	 	By:	
 

	 
	 	
Thomas Casey

	 
	 	
Chairman and Chief Executive Officer

 

	 	
EXECUTIVE

	 

 

	 	By:	
 

	 
	 	
Timothy CarlsonExhibit 10.4

AMENDED AND RESTATED STOCK EXCHANGE AGREEMENT

THIS AMENDED AND RESTATED STOCK EXCHANGE AGREEMENT, date October 11, 2016 (the "Agreement) amends and restates the Stock Exchange Agreement dated September 14, 2016, by and among Liberated Energy, Inc., a Nevada corporation whose principal office is located at 15 Elvis Boulevard, Chester, New York 10918 ("LIBE"); Brian P. Conway, an individual, whose address is the same as LIBE ("PRINCIPAL LIBE SHAREHOLDER"); and Ron Knori ("SELLER); who is the owner of all of the Membership Interests of EcoCab Portland, LLC, an Oregon Limited Liability Company ("EPLLC"), who has executed a subscription agreement which will be appended hereto at closing.

R E C I T A L S

A.              ECPLLC is engaged in the business of operating a taxi service in Portland, Oregon.

B.              SELLER owns the entire issued and outstanding membership interests of ECPLLC (the "ECPLLC Membership Interest").

C.              LIBE is a publicly traded company engaged in the business of developing and marketing alternative energy source products.

D.              LIBE is authorized to issue up to 10,000,000,000 shares of Common Stock and there are 2,588,330 shares of Common Stock outstanding after completing a 1-for-3,500 reverse stock split. All reference to shares of LIBE Common Stock herein, is post 1-for-3,500 reverse stock split. LIBE is authorized to issue up to 10,000,000 shares of Series A Preferred Stock all of which are issued and outstanding and are owned by PRINCIPAL LIBE SHAREHOLDER. Each

share of Series A Preferred Stock has 10,000 votes.

E.              LIBE desires to acquire one hundred percent (100%) of the ECPLLC Membership Interest in consideration for which LIBE shall issue to SELLER 25,553,000 restricted shares of LIBE Common Stock (the "Restricted Common Shares" and PRINCIPAL LIBE SHAREHOLDER will transfer to SELLER all of the issued and outstanding shares of Series A Preferred Stock (the "Exchange"). It is the intention of the parties this transaction be tax free and at closing SELLER shall own collectively at least 80% of the total outstanding shares of LIBE common stock and SELLER will own 100% of LIBE's authorized preferred stock.

AGREEMENT

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows.

ARTICLE I

ACQUISITION OF ECPLLC COMMON SHARES BY LIBE

1.1            Acquisition of ECPLLC.  In the manner and subject to the terms and conditions set forth herein, LIBE shall acquire from SELLER, one hundred percent (100%) of the issued and outstanding ECPLLC Membership Interest.

1.2            Effective Date.  If all of the conditions precedent to the obligations of each of the parties hereto as hereinafter set forth shall have been satisfied or shall have been waived, the transactions set forth herein (the "Exchange") shall become effective on the Closing Date as defined herein.

1.3            Consideration

(a)            In consideration of SELLER transferring 1000% of the issued and outstanding ECPLLC

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Membership Interest to LIBE, (1) LIBE will issue to SELLER at the First Closing a number of shares of restricted common stock of LIBE equal to 20% of the outstanding shares of LIBE at the First Closing Date, with non-dilution rights as set forth in Section 5.4, below (the "Guaranteed Common Shares"); (2) if the Second Tranche Condition as described in Section 5.6 is met, LIBE will issue to SELLER additional shares of restricted common stock of LIBE so that SELLER holds an aggregate of 30% of the outstanding shares of LIBE at the time of issue, with non-dilution rights as set forth in Section 5.4 (the "Second Tranche Common Shares"), (3) if the Third Tranche Condition as described in Section 5.6 is met, LIBE will issue to SELLER the number of additional shares of restricted common stock as described in Section 5.6 (the "Third Tranche Common Shares") at a Subsequent Closing, and (4) if the Preferred Shares Condition as described in Section 5.6 is met, PRINCIPAL LIBE SHAREHOLDER will transfer to SELLER the Preferred Stock at a Subsequent Closing. "Seller Consideration Shares" means the Guaranteed Common Shares, the Second Tranche Common Shares, the Third Tranche Common Shares, and the Preferred Stock.

(b)            If the outstanding shares of LIBE Common Stock are changed into a different number or class of shares by reason of any stock split, division or subdivision of shares, stock dividend, reverse stock split, consolidation of shares, reclassification, recapitalization, or other similar transaction, then the number of shares of Common Stock referenced in Section 1.3(a), above, shall be appropriately adjusted.

1.4            Effect of Stock Exchange.  As of the Closing Date, all of the following shall occur:

(a)            The Articles of Incorporation of LIBE and the Articles of Organization of ECPLLC, as in effect on the Effective Date, shall continue in effect without change or amendment.

(b)            The Bylaws of LIBE and the Operation Agreement of ECPLLC, as in effect on the Closing Date, shall continue in effect without change or amendment.

1.5            Disclosure Schedules.  Simultaneously with the execution of this Agreement: (a) LIBE shall deliver a schedule relating to LIBE which, along with the reports of LIBE filed with the Securities and Exchange Commission, shall be referred to as the "LIBE Disclosure Schedule", and (b) SELLER and ECPLLC shall deliver a schedule relating to SELLER and ECPLLC (the "ECPLLC Disclosure Schedule") and collectively with the LIBE Disclosure Schedule, the "Disclosure Schedules" setting forth the matters required to be set forth in the Disclosure Schedules as described elsewhere in this Agreement. The Disclosure Schedules shall be deemed to be part of this Agreement.

1.6            Further Action.  From time to time after the Closing, without further consideration, the parties shall execute and deliver such instruments of conveyance and transfer and shall take such other action as any party reasonably may request to more effectively transfer the ECPLLC shares of Common Stock and LIBE Shares.

ARTICLE II

CONDUCT OF BUSINESS PENDING CLOSING; STOCKHOLDER APPROVAL

LIBE, SELLER and ECPLLC covenant that between the date hereof and the Closing Date (as hereinafter defined):

2.1            Access.  The parties hereto shall afford all other parties to this Agreement, and their legal counsels, accountants and other representatives, throughout the period prior to the Closing Date, full access, during normal business hours, to (a) all of the books, records, documents and correspondence of and records, and (b) the respective parties' properties in order to conduct inspections to determine that the party are operating in material compliance with all applicable federal, state and local and foreign statutes, rules and regulations. Any such investigation or inspection by a party shall not be deemed a waiver of, or otherwise limit, the representations, warranties and covenants contained herein.

2.2            Conduct of Business.  During the period from the date hereof to the Closing Date, the business of each party shall be operated by in the usual and ordinary course of such business and in material compliance with the terms of this Agreement. Without limiting the generality of the foregoing:

(a)            Each party shall each use its reasonable effort to (i) maintain available services (ii) complete or

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maintain all existing material arrangements; (iii) maintain the integrity of all confidential information; and (iv) comply in all material respects with all applicable laws; and,

(b)            Except as contemplated by this Agreement, LIBE and ECPLLC shall not (i) sell, lease, assign, transfer or otherwise dispose of any of their material assets or property including cash; (ii) agree to assume, guarantee, endorse or in any way become responsible or liable for, directly or indirectly, any material contingent obligation; make any material capital expenditures; (iii) enter into any transaction concerning a merger or consolidation other than with the other party hereto or liquidate or dissolve itself (or suffer any liquidation or dissolution) or convey, sell, lease, transfer or otherwise dispose of, in one transaction or a series of related transactions, all or a substantial part of its property, business, or assets, or stock or securities convertible into stock of any subsidiary, or make any material change in the present method of conducting business; (iv) declare or pay any dividends or make any other distribution (whether in cash or property) on any shares of its capital stock or purchase, redeem, retire or otherwise acquire for value any shares of its capital stock or warrants or options whether now or hereafter outstanding; (v) make or suffer to exist any advances or loans to, or investments in any person, firm, corporation or other business entity not a party to this Agreement; (vi) enter into any new material agreement or be or become liable under any new material agreement, for the lease, hire or use of any real or personal property; (vii) create, incur, assume or suffer to exist, any mortgage, pledge, lien, charge, security interest or encumbrance of any kind upon any of its property or assets, income or profits, whether now owned or hereafter acquired; or (viii) agree to do any of the foregoing.

2.3            Exclusivity.  LIBE and ECPLLC and their officers, directors, representatives and agents, from the date hereof, until the Closing Date (unless this Agreement shall be earlier terminated as hereinafter provided), shall not hold discussions with any person or entity, other than LIBE, SELLER and ECPLLC or their respective agents concerning the Exchange, nor solicit, negotiate or entertain any inquiries, proposals or offers to purchase the business of LIBE or ECPLLC, nor the shares of capital stock of LIBE or the ECPLLC Membership Interest from any person other than LIBE, SELLER and ECPLLC, nor, except in connection with the normal operation of LIBE's and ECPLLC's respective business, or as required by law, or as authorized in writing by LIBE, SELLER and ECPLLC to disclose any confidential information concerning LIBE, SELLER or ECPLLC to any person other than SELLER, ECPLLC and SELLER's and ECPLLC's representatives or agents.

2.4            Board and Shareholder Approval.  The Board of Directors of LIBE has determined that the Exchange is fair to and in the best interests of its stockholders and has approved and adopted this Agreement and the terms of the Exchange. Shareholders of LIBE will not vote or approve of the transaction contemplated by this agreement. This Agreement constitutes, and all other agreements contemplated hereby will constitute, when executed and delivered by LIBE, the valid and binding obligation of LIBE, enforceable in accordance with their respective terms.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF LIBE AND PRINCIPAL LIBE SHAREHOLDER

Except as set forth in the LIBE Disclosure Schedule, (which incorporates all the reports of LIBE filed with the United States Securities and Exchange Commission) LIBE and PRINCIPAL LIBE SHAREHOLDER, jointly and severally represent and warrant to SELLER and ECPLLC as follows:

3.1            Organization and Standing.  LIBE is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada. LIBE has all requisite corporate power to carry on its business as it is now being conducted and is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction where such qualification is necessary under applicable law except where the failure to qualify (individually or in the aggregate) will not have any material adverse effect on the business or prospects of LIBE. The copies of the Articles of Incorporation and Bylaws of LIBE, as amended to date, which have been delivered to SELLER and ECPLLC, are true and complete copies of these documents as now in effect.

3.2           Capitalization.

(a)            The number of shares of capital stock which are issued and outstanding are set forth in Recital D. All of such shares of capital stock that are issued and outstanding are duly authorized, validly issued and outstanding, fully paid and

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non-assessable, and were not issued in violation of the preemptive rights of any person. Other than as set forth in the LIBE Disclosure Schedule and Recital D, there are no subscriptions, warrants, rights or calls or other commitments or agreements to which LIBE is a party or by which it is bound, pursuant to which LIBE is or may be required to issue or deliver securities of any class. Other than as set forth in the LIBE Disclosure Schedule and Recital D, there are no outstanding securities convertible or exchangeable, actually or contingently, into Common Stock or any other securities of LIBE.

(b)            To LIBE'S knowledge, all outstanding shares of LIBE capital stock have been issued and granted in compliance with all applicable securities laws and other applicable legal requirements.

(c)            LIBE has good and marketable title to all of the LIBE Shares, free and clear of all liens, claims and encumbrances of any third persons.

3.3            Subsidiaries.  LIBE does not own any subsidiary corporations.

3.4            Authority.  LIBE's Board of Directors has determined that the Exchange is fair to and in the best interests of LIBE's stockholders. The execution, delivery and performance by LIBE of this Agreement (including the contemplated issuance of the Seller Consideration Shares) have been duly authorized by all necessary action on the part of LIBE. LIBE has the absolute and unrestricted right, power and authority to perform its obligations under this Agreement. This Agreement constitutes, and all other agreements contemplated hereby will constitute, when executed and delivered by LIBE in accordance herewith, the valid and binding obligations of LIBE, enforceable in accordance with their respective terms.

3.5            Assets.  Assets of LIBE are set forth in the LIBE Disclosure Schedule.

3.6            Contracts and Other Commitments.  Except as set forth in the LIBE Disclosure Schedule, LIBE is not a party to any contracts or agreements.

3.7            Litigation.  There is no claim, action, proceeding, or investigation pending or, to its knowledge, threatened against or affecting LIBE before or by any court, arbitrator or governmental agency or authority which, in its reasonable judgment, could have a material adverse effect on the operations or prospects of LIBE. There are no decrees, injunctions or orders of any court, governmental department, agency or arbitration outstanding against LIBE or asserted against LIBE that has not been paid.

3.8            Taxes.  For purposes of this Agreement, (A) "Tax" (and, with correlative meaning, "Taxes") shall mean any federal, state, local or foreign income, alternative or add-on minimum, business, employment, franchise, occupancy, payroll, property, sales, transfer, use, value added, withholding or other tax, levy, impost, fee, imposition, assessment or similar charge together with any related addition to tax, interest, penalty or fine thereon; and (B) "Returns" shall mean all returns (including, without limitation, information returns and other material information), reports and forms relating to Taxes.

		(a)	
LIBE has duly filed and paid all Taxes.

		(b)	
LIBE is not a party to any pending action or proceeding by any governmental authority for the assessment of any Tax, and, to the knowledge of LIBE, no claim for assessment or collection of any Tax related to LIBE has been asserted against LIBE that has not been paid. There are no Tax liens upon the assets of LIBE. There is no valid basis, to LIBE's knowledge, for any assessment, deficiency, notice, 30-day letter or similar intention to assess any Tax to be issued to LIBE by any governmental authority.

3.9            Compliance with Laws and Regulations.  LIBE has complied and is presently complying, in all material respects, with all laws, rules, regulations, orders and requirements (federal, state and local and foreign) applicable to it in all jurisdictions where the business of LIBE is conducted or to which LIBE is subject, including all requisite filings with the SEC. LIBE has not made any misrepresentation nor has omitted any material facts in any of its SEC filings to date.

3.10         Hazardous Materials.  To the knowledge of LIBE, LIBE has not violated, or received any written notice from any governmental authority with respect to the violation of any law, rule, regulation or ordinance pertaining to the use,

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maintenance, storage, transportation or disposal of "Hazardous Materials." As used herein, the term "Hazardous Materials" means any substance now or hereafter designated pursuant to Section 307(a) and 311 (b)(2)(A) of the Federal Clean Water Act, 33 USC §§ 1317(a), 1321(b)(2)(A), Section 112 of the Federal Clean Air Act, 42 USC § 3412, Section 3001 of the Federal Resource Conservation and Recovery Act, 42 USC § 6921, Section 7 of the Federal Toxic Substances Control Act, 15 USC § 2606, or Section 101(14) and Section 102 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 USC §§ 9601(14), 9602.

3.11        No Breaches.  The making and performance of this Agreement will not (i) conflict with or violate the Articles of Incorporation or the Bylaws of LIBE, (ii) violate any laws, ordinances, rules, or regulations, or any order, writ, injunction or decree to which LIBE is a party or by which LIBE or any of its businesses, or operations may be bound or affected or (iii) result in any breach or termination of, or constitute a default under, or constitute an event which, with notice or lapse of time, or both, would become a default under, or result in the creation of any encumbrance upon any material asset of LIBE under, or create any rights of termination, cancellation or acceleration in any person under, any contract.

3.12        Employees.  LIBE has does not have any employees that are represented by any labor union or collective bargaining unit. Nor does LIBE have any employment agreements or compensation plans which are in effect with anyone.

3.13        Financial Statements.  Year-end audited financial statements and unaudited quarterly stub financial statements are available online at www.sec.gov, and at Section 3.13 of the LIB Disclosure Schedule LIBE has attached a true and accurate balance sheet of LIBE as of the date hereof (collectively, the "Financial Statements"). The Financial Statements present fairly, in all material respects, the financial position on the dates thereof and results of operations of LIBE for the periods indicated, prepared in accordance with generally accepted accounting principles ("GAAP"), consistently applied.

3.14        Absence of Certain Changes or Events.  Except as set forth in the LIBE Disclosure Schedule, since June 30, 2016, (the "Balance Sheet Dates"), there has not been:

(a)            any material adverse change in the financial condition, properties, assets, liabilities or business of LIBE;

(b)            any material damage, destruction or loss of any material properties of LIBE, whether or not covered by insurance;

(c)            any material adverse change in the manner in which the business of LIBE and has been conducted;

(d)            any material adverse change in the treatment and protection of trade secrets or other confidential information of LIBE; and,

(e)            any occurrence not included in paragraphs (a) through (d) of this Section 3.14 which has resulted, or which LIBE has reason to believe, might be expected to result in a material adverse change in the business or prospects of LIBE.

3.15        Government Licenses, Permits, Authorizations.  LIBE has all governmental licenses, permits, authorizations and approvals necessary for the conduct of its business as currently conducted ("Licenses and Permits"). All such Licenses and Permits are in full force and effect, and no proceedings for the suspension or cancellation of any thereof is pending or, to the knowledge of LIBE, threatened.

3.16        Employee Benefit Plans.

(a)            LIBE has no bonus, material deferred compensation, material incentive compensation, stock purchase, stock option, severance pay, termination pay, hospitalization, medical, insurance, supplemental unemployment benefits, profit-sharing, pension or retirement plan.

(b)            LIBE has not maintained, sponsored or contributed to, any employee pension benefit plan (as defined in Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA")) or any similar

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pension benefit plan under the laws of any foreign jurisdiction.

(c)            Except as set forth in the LIBE Disclosure Schedule, neither the execution, delivery or performance of this Agreement, nor the consummation of the Exchange or any of the other transactions contemplated by this Agreement, will result in any bonus, golden parachute, severance or other payment or obligation to any current or former employee or director of any of LIBE, or result in any acceleration of the time of payment, provision or vesting of any such benefits.

3.17        Business Locations.  Other than as set forth in the LIBE Disclosure Schedule, LIBE does not own or lease any real or personal property in any state or country.

3.18        Intellectual Property.  LIBE owns the intellectual property set for in the LIBE Disclosure Schedule. LIBE is not currently in receipt of any notice of any violation or infringements of, and is not knowingly violating or infringing, or to the best of its knowledge has not violated or infringed the rights of others in any trademark, trade name, service mark, copyright, patent, trade secret, know-how or other intangible assets.

3.19        Governmental Approvals.  Except as set forth in the LIBE Disclosure Schedule, no authorization, license, permit, franchise, approval, order or consent of, and no registration, declaration or filing by LIBE with, any governmental authority, domestic or foreign, federal, state or local, is required in connection with LIBE's execution, delivery and performance of this Agreement. Except as set forth in the LIBE Disclosure Schedule, no consents of any other parties are required to be received by or on the part of LIBE to enable LIBE to enter into and carry out the terms of this Agreement.

3.20        Transactions with Affiliates.  Except as set forth in the LIBE Disclosure Schedule, LIBE is not indebted for money borrowed, either directly or indirectly, from any of its officers, directors, or any Affiliate (as defined below), in any amount whatsoever; nor are any of its officers, directors, or Affiliates indebted for money borrowed from LIBE; nor are there any transactions of a continuing nature between LIBE and any of its officers, directors, or Affiliates not subject to cancellation which will continue beyond the Closing Date, including, without limitation, use of the assets of LIBE for personal benefit with or without adequate compensation. For purposes of this Agreement, the term (i) "Affiliate" shall mean any person that, directly or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified. As used in the foregoing definition, the term (ii) "control" shall mean the power through the ownership of voting securities, contract or otherwise to direct the affairs of another person and (iii) "person" shall mean an individual, firm, trust, association, corporation, partnership, government (whether federal, state, local or other politic al subdivision, or any agency or bureau of any of them) or other entity.

3.21        No Distributions.  LIBE has not made nor has any intention of making any distribution or payment to any of its shareholders with respect to any of its securities except in accordance with the terms of this Agreement.

3.22        Liabilities.  LIBE has no material direct or indirect indebtedness, liability, claim, loss, damage, deficiency, obligation or responsibility, fixed or unfixed, choate or inchoate, liquidated or unliquidated, secured or unsecured, accrued, absolute, contingent or otherwise ("Liabilities"), whether or not of a kind required by generally accepted accounting principles to be set forth on a financial statement, other than (i) Liabilities fully and adequately reflected or reserved against on the LIBE Balance Sheet, (ii) Liabilities incurred since the Balance Sheet Date in the ordinary course of the business of LIBE, or (iii) Liabilities otherwise disclosed in this Agreement, including the exhibits hereto and LIBE Disclosure Schedule.

3.23        Accounts Receivable.  LIBE has no accounts receivables other than as disclosed in the LIBE Disclosure Schedule.

3.24        Insurance.  LIBE has no insurance policies in effect.

3.25        Contracts and Other Commitments.  Schedule 3.25 of the LIBE Disclosure Schedule consists of a true and complete list of all material contracts, agreements, commitments and other instruments (whether oral or written) to which LIBE is a party. LIBE has filed a copy of each such contract with the SEC. All such contracts are valid and binding upon LIBE and are in full force and effect and are enforceable in accordance with their respective terms. No such contracts are in breach, and no event has occurred which, with the lapse of time or action by a third party, could result in a material

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default under the terms thereof. To LIBE'S knowledge, no stockholder of ECPLLC has received any payment from any contracting party in connection with or as an inducement for causing LIBE to enter into any such contract.

3.26        No Omissions or Untrue Statements.  No representation or warranty made by LIBE or PRINCIPAL LIBE SHAREHOLDER to SELLER or ECPLLC in this Agreement contains any untrue statement of a material fact or omits or will omit to state a material fact necessary to make the statements contained herein or therein not misleading.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF SELLER

Except as set forth in the ECPLLC Disclosure Schedule, SELLER and ECPLLC jointly and severally represent and warrant to LIBE and PRINCIPAL LIBE SHAREHOLDER as follows:

4.1            Organization and Standing of ECPLLC.  ECPLLC is a limited liability company, duly organized, validly existing and in good standing under the laws of Oregon, and has the power to carry on its business as now conducted and to own its assets and is duly qualified to transact business as a limited liability corporation in each state where such qualification is necessary except where the failure to qualify will not have a material adverse effect on the business or prospects of ECPLLC.

4.2            Authority.  The Managing Member and SELLER have approved this Agreement as evidenced by their respective signatures to this Agreement.

4.3            No Conflict.  The making and performance of this Agreement will not (i) conflict with the Articles of Organization or the Operating Agreement of ECPLLC, (ii) violate any laws, ordinances, rules, or regulations, or any order, writ, injunction or decree to which ECPLLC is a party or by which ECPLLC or any of its material assets, business, or operations may be bound or affected or (iii) result in any breach or termination of, or constitute a default under, or constitute an event which, with notice or lapse of time, or both, would become a default under, or result in the creation of any encumbrance upon any material asset of ECPLLC, or create any rights of termination, cancellation, or acceleration in any person under any material agreement, arrangement, or commitment.

4.4            Properties.  Except as set forth in the ECPLLC Disclosure Schedule, SELLER has good and marketable title to the entire ECPLLC Membership Interest, free and clear of all liens, claims and encumbrances of third persons whatsoever, and ECPLLC has good and marketable title to all of the assets and properties which it purports to own as reflected on the balance sheet included in the ECPLLC Financial Statements (as hereinafter defined), or thereafter acquired.

4.5            Capitalization of ECPLLC.  All of the Membership Interest are owned by SELLER, and there are no ownership interests of ECPLLC outstanding other than the Membership Interest. The Articles of Organization of ECPLLC do not limit the number of ownership interests that can be issued. The ECPLLC Membership Interest was duly authorized and is validly issued, fully paid, and non-assessable. As of the date hereof, there were no outstanding options, warrants or rights of conversion or other rights, agreements, arrangements or commitments relating to the securities of ECPLLC or obligating ECPLLC to issue or sell any ECPLLC ownership interest, other than as listed on Schedule 4.5 of the ECPLCC Disclosure Schedule. To SELLER's knowledge, the ECPLLC Membership Interest was issued and granted in compliance with all applicable legal requirements.

4.6            Governmental Approval; Consents.  No authorization, license, permit, franchise, approval, order or consent of, and no registration, declaration or filing by SELLER or ECPLLC with any governmental authority, domestic or foreign, federal, state or local, is required in connection with SELLER's OR ECPLLC's execution, delivery and performance of this Agreement. Except as set forth in the ECPLLC Disclosure Schedule, no consents of any other parties are required to be received by or on the part of SELLER or ECPLLC to enable SELLER and ECPLLC to enter into and carry out this Agreement.

4.7            Adverse Developments.  Since June 30, 2016, there have been no material adverse changes in the assets, liabilities, properties, operations or financial condition of ECPLLC, and no event has occurred other than in the ordinary and usual course of business or as set forth in the ECPLLC Financial Statements which could be reasonably expected to

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have a materially adverse effect upon ECPLLC.

4.8            Taxes.  ECPLLC has duly filed all required tax returns. All such returns were, when filed, and to SELLER's knowledge, were accurate and complete in all material respects and were prepared in conformity with applicable laws and regulations. ECPLLC has paid in full all taxes through June 30, 2016. ECPLLC is not a party to any pending action or proceeding by any governmental authority for the assessment of any tax, and, to the knowledge of ECPLLC, no claim for assessment or collection of any tax has been asserted against ECPLLC that have not been paid. There are no tax liens upon the assets of ECPLLC. There is no valid basis, to ECPLLC 's knowledge, for any assessment, deficiency, notice, 30-day letter or similar intention to assess any tax to be issued to ECPLLC by any governmental authority.

4.9            Litigation.  Except as set forth on the ECPLLC Disclosure Schedule, there is no material claim, action, proceeding, or investigation pending or, to their knowledge, threatened against or affecting SELLER or ECPLLC before or by any court, arbitrator or governmental agency or authority. There are no material decrees, injunctions or orders of any court, governmental department, agency or arbitration outstanding against SELLER or ECPLLC.

4.10        Compliance with Laws and Regulations.  ECPLLC has complied and is presently complying, in all material respects, with all laws, rules, regulations, orders and requirements applicable to it in all jurisdictions in which its operations are currently conducted or to which it is currently subject.

4.11        Governmental Licenses, Permits and Authorizations.  ECPLLC has all governmental licenses, permits, authorizations and approvals necessary for the conduct of its business as currently conducted. All such licenses, permits, authorizations and approvals are in full force and effect, and no proceedings for the suspension or cancellation of any thereof is pending or threatened.

4.12        Liabilities.  ECPLLC has no material direct or indirect Liabilities, as that term is defined in Section 3.22 ("ECPLLC Liabilities"), whether or not of a kind required by generally accepted accounting principles to be set forth on a financial statement, other than (i) ECPLLC Liabilities fully and adequately reflected or reserved against on the ECPLLC Balance Sheet, (ii) ECPLLC Liabilities incurred in the ordinary course of the business of ECPLLC, and (iii) ECPLLC Liabilities otherwise disclosed in this Agreement, including the Exhibits hereto.

4.13        SELLER's Representations Regarding LIBE Shares.

(a)            SELLER acknowledges that LIBE has limited assets and business and that the LIBE Shares are speculative and involve a high degree of risk, including among many other risks that the LIBE Shares will be restricted as elsewhere described in this Agreement and will not be transferable unless first registered under the Securities Act of 1933, as amended ("Act"), or pursuant to an exemption from the Act's registration requirements.

(b)            SELLER has access on EDGAR to all of LIBE's reports filed with the SEC and SELLER have had an opportunity to ask questions of and receive answers from LIBE regarding its business, assets, results of operations, financial condition and plan of operation and the terms and conditions of the issuance of the LIBE Shares.

(c)            SELLER is an "accredited investor" as that term is defined in Regulation 501 of the Securities Act of 1933, as amended and are each acquiring the LIBE Shares for his own account, and not for the account of any other person other than for the benefit of SELLER, and SELLER has no current intent to make any resale, pledge, hypothecation, distribution or public offering of the LIBE Shares except as permitted by applicable law.

(d)            SELLER, acting with the assistance of counsel and other professional advisers, possess such knowledge and experience in financial, tax and business matters as to enable him to utilize the information made available by LIBE, to evaluate the merits and risks of acquiring the LIBE Shares and to make an informed investment decision with respect thereto.

(e)            SELLER was not solicited by LIBE or anyone on LIBE's behalf to enter into any transaction by any form of general solicitation or general advertising, as those terms are defined in Regulation D of the Securities Act of 1933, as amended.

4.14        Contracts and Other Commitments.  Schedule 4.14 of the ECPLLC Disclosure Schedule consists of a true

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and complete list of all material contracts, agreements, commitments and other instruments (whether oral or written) to which ECPLLC is a party. ECPLLC has made or will make available to LIBE a copy of each such contract. All such contracts are valid and binding upon ECPLLC and are in full force and effect and are enforceable in accordance with their respective terms. No such contracts are in breach, and no event has occurred which, with the lapse of time or action by a third party, could result in a material default under the terms thereof. To ECPLLC's knowledge, no stockholder of ECPLLC has received any payment from any contracting party in connection with or as an inducement for causing ECPLLC to enter into any such contract.

4.15        Absence of Certain Changes or Events.  Except as set forth in the ECPLLC Disclosure Schedule, since June 30, 2016, (the "Balance Sheet Date"), there has not been:

(a)            any material adverse change in the financial condition, properties, assets, liabilities or business of ECPLLC;

(b)            any material damage, destruction or loss of any material properties of ECPLLC, whether or not covered by insurance;

(c)            any material adverse change in the manner in which the business of ECPLLC and has been conducted;

(d)            any material adverse change in the treatment and protection of trade secrets or other confidential information of ECPLLC; and

(e)            any occurrence not included in paragraphs (a) through (d) of this Section 4.15 which has resulted, or which ECPLLC has reason to believe, might be expected to result in a material adverse change in the business or prospects of ECPLLC.

4.16        Financial Statements.  At closing, the ECPLLC Disclosure Schedule will contain unaudited financial statements for the year ending December 31, 2015 and unaudited financial statements at September 30, 2016 (collectively the "Financial Statements"). EOCO was organized in the State of Oregon on September 18, 2014. The ECPLLC Financial Statements present fairly, in all material respects, the financial position on the dates thereof and results of operations of ECPLLC for the periods indicated, prepared in accordance with GAAP, consistently applied. There are no assets of ECPLLC the value of which is materially overstated in said balance sheets.

4.17        ECPLLC Motor Vehicles.  Schedule 4.17 of the ECPLLC Disclosure Schedule sets forth a complete and correct list and summary description of all motor vehicles owned by ECPLLC or in which ECPLLC has a beneficial interest. Except as otherwise set forth in Schedule 4.17 all such motor vehicles are owed by ECPLLC.  ECPLLC is not currently in receipt of any notice of any violation from any regulatory agency.

4.18        Subsidiaries.  ECPLLC owns no subsidiaries nor does it own or have an interest in any other corporation, partnership, joint venture or other entity.

4.19        Hazardous Materials.  To the knowledge of ECPLLC, ECPLLC has not violated, or received any written notice from any governmental authority with respect to the violation of any law, rule, regulation or ordinance pertaining to the use, maintenance, storage, transportation or disposal of "Hazardous Materials." As used herein, the term "Hazardous Materials" means any substance now or hereafter designated which is found to be toxic or harmful to humans or the environment when present in certain amounts or quantities.

4.20        Employees.  ECPLLC has no employees that are represented by any labor union or collective bargaining unit.

4.21        Employee Benefit Plans.  The ECPLLC Disclosure Schedule identifies each salary, bonus, material deferred compensation, material incentive compensation, stock purchase, stock option, severance pay, termination pay, hospitalization, medical, insurance, supplemental unemployment benefits, profit-sharing, pension or retirement plan, program or material agreement.

4.22        Business Locations.  ECPLC rents offices and dispatch center in Portland, Oregon. ECPLLC does not

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own or lease any real or personal property in any other location.

4.23        Insurance.  Except as set forth in Schedule 4.23 of the ECPLLC Disclosure Schedule, ECPLLC has no insurance policies in effect.

4.24        No Omission or Untrue Statement.  No representation or warranty made by SELLER or ECPLLC to LIBE or PRINCIPAL LIBE SHAREHOLDER in this Agreement contains any untrue statement of a material fact or omits or will omit to state a material fact necessary to make the statements contained herein or therein not misleading.

ARTICLE V

CLOSING

5.1            Closing.  The Exchange shall be completed on the first business day after the day on which the last of the conditions contained in this Article V is fulfilled or waived (the "Closing Date"); provided, however, that in no event shall the Closing occur later than October 31, 2016, unless otherwise agreed to by the parties in writing. The Closing shall take place as the parties may agree. At the Closing, PRINCIPAL LIBE SHAREHOLDER, LIBE, SELLER and ECPLLC shall make the deliveries contemplated by this Agreement, and in accordance with the terms of this Agreement.

5.2            LIBE's and PRINCIPAL LIBE SHARHOLDER'S Closing Deliveries.  At the Closing, in addition to documents referred elsewhere, LIBE and PRINCIPAL LIBE SHAREHOLDER shall cause to be delivered to SELLER:

(a)            a certificate, dated as of the Closing Date, executed by the President or Chief Executive Officer of LIBE, to the effect that the representations and warranties contained in this Agreement are true and correct in all material respects at and as of the Closing Date and that LIBE has complied with or performed in all material respects all terms, covenants and conditions to be complied with or performed by LIBE on or prior to the Closing Date;

(b)            certificates representing the Restricted Common Shares and 10,000,000 shares of Series A Preferred Stock;

(c)            certified resolution of the Board of Directors and shareholders authorizing and approving the transactions set forth herein;

(d)            proof that all of the outstanding liabilities of LIBE have been paid in full; and,

(e)            such other documents as SELLER or their counsel may reasonably require.

5.3            ECPLLC's Closing Deliveries.  At the Closing, in addition to documents referred to elsewhere, SELLER shall deliver to LIBE:

(a)            a certificate of SELLER dated as of the Closing Date that the representations and warranties of SELLER contained in this Agreement are true and correct in all material respects and that SELLER have complied with or performed in all material respects all terms, covenants, and conditions to be complied with or performed by SELLER on or prior to the Closing Date;

(b)            an Assignment, duly endorsed, assigning the ECPLLC Membership Interest to Libe;

(c)            such other documents as LIBE or its counsel may reasonably require.

5.4            Maintenance of Non-Dilutable Shares.  At the First Closing SELLER will own 20% of the total outstanding common shares of LIBE. If at any time within one year after the First Closing Date, LIBE issues additional shares of common stock to any person or entity (other than SELLER), SELLER will be issued additional shares of common stock in order to maintain SELLER's ownership at 20% of the total outstanding shares of common stock of LIBE. If the Second Tranche Condition is met, SELLER will own 30% of the total outstanding common shares of LIBE. If at any time within one year after the First Closing Date, LIBE issues additional shares of common stock to any person or entity (other

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than SELLER), LIBE will issue to SELLER additional shares of restricted common stock in order to maintain SELLER's ownership at 30% of the total outstanding shares of common stock of LIBE. In this section, SELLER is understood to mean SELLER and any parties who SELLER has transferred shares to in settlement of convertible notes or warrants of EPCLLC in existence at the time of the First Closing.

5.6            Subsequent Closings.  Until January 31, 2017, LIBE will not attempt to change the current management or operations of ECPLLC without the consent of SELLER, but LIBE will have the right to oversee ECPLLC's revenue and payments out on a daily and monthly basis. LIBE will use commercially reasonable efforts to finance the growth of EPCLLC's revenues, but at a minimum, LIBE will provide at least $400,000 in working capital funds to ECPLLC. "Preferred Shares Condition" means that all LIBE convertible notes held by Carebourn Capital L.P. have been retired (or Carebourn Capital L.P. consents to the issuance to SELLER of the Preferred Shares) and that LIBE has not closed or entered into a binding agreement to merge with, acquire, or become acquired by, another company of equal or greater fair value (private or public) to ECPLLC. If the Preferred Shares Condition is fulfilled, SELLER will be issued the Preferred Shares at a Subsequent Closing. "Second Tranche Condition" means that ECPLLC has made audited financial statements available to LIBE. If the Second Tranche Condition is met, LIBE will issue the Second Tranche Common Shares to SELLER at a Subsequent Closing. "Third Tranche Condition" means that ECPLLC has (1) made audited financials available to LIBE within 71 days of the First Closing Date, and (2) has positive earnings before interest, tax and depreciation and amortization ("EBITDA") under GAAP for the month of January 2017. If the Third Tranche Condition is met, LIBE will issue the Third Tranche Common Shares to SELLER at a Subsequent Closing. The number of Third Tranche Common Shares will be calculated so that SELLER's resulting percentage of LIBE is equitable based on the fair value of ECPLLC relative to the other assets of LIBE (e.g., a subsequently acquired subsidiary), but in no event will SELLER be required to transfer or cancel shares to reduce SELLER's percentage of the outstanding common stock to below 30%. If the parties cannot agree to an equitable number of shares to issue SELLER, the matter will be submitted to binding arbitration.

The transfer of the Preferred Shares and the issuance of the Second Tranche Common Shares and Third Tranche Common Shares, as the case may be, shall be completed on the first business day after the day on which the requisite condition is met, any of which will be referred to as a "Subsequent Closing," and the date of such Closing is referred to as a "Subsequent Closing Date".

5.7            LIBE's and PRINCIPAL LIBE SHARHOLDER'S Subsequent Closing Deliveries. At each Subsequent Closing, in addition to documents referred elsewhere, LIBE and PRINCIPAL LIBE SHAREHOLDER shall cause to be delivered to SELLER:

(a)            certificates representing the Preferred Stock, the Second Tranche Common Shares and/or the Third Tranche Common Shares, depending on which condition was met;

(b)            certified resolution of the Board of Directors authorizing and approving the transactions set forth herein; and,

(c)            such other documents as SELLER or their counsel may reasonably require.

5.8            ECPLLC's Subsequent Closing Deliveries. At each Subsequent Closing, in addition to documents referred to elsewhere, SELLER shall deliver to LIBE:

(b)            such documents as LIBE or its counsel may reasonably require.

ARTICLE VI

CONDITIONS TO OBLIGATIONS OF LIBE

The obligation of LIBE to consummate the Closing is subject to the following conditions, any of which may be waived by it in its sole discretion.

6.1            Compliance by SELLER and ECPLLC.  SELLER and ECPLLC shall have performed and complied in

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all material respects with all agreements and conditions required by this Agreement to be performed or complied with in all material respects by SELLER and ECPLLC prior to or on the Closing Date.

6.2            Accuracy of SELLER's and ECPLLC Representations.  SELLER's and ECPLLC's representations and warranties contained in this Agreement (including the Disclosure Schedule) or any schedule, certificate, or other instrument delivered pursuant to the provisions hereof or in connection with the transactions contemplated hereby shall be true and correct in all material respects at and as of the Closing Date (except for such changes permitted by this Agreement) and shall be deemed to be made again as of the Closing Date.

6.3            Documents.  All documents and instruments required hereunder to be delivered by SELLER and ECPLLC to LIBE at the Closing shall be delivered in form and substance reasonably satisfactory to LIBE and its counsel.

6.4            Litigation.  No litigation seeking to enjoin the transactions contemplated by this Agreement or to obtain damages on account hereof shall be pending or, to ECPLLC's knowledge, be threatened.

6.5            Material Adverse Change.  Except for operations in the ordinary course of business, no material adverse change shall have occurred subsequent to June 30, 2016 in the financial position, results of operations, assets, or liabilities of ECPLLC, nor shall any event or circumstance have occurred which would result in a material adverse change in the financial position, results of operations, assets, or liabilities of ECPLLC.

6.6            Approval by ECPLLC.  The Managing Member and owners of ECPLLC shall have approved in writing this Agreement and the transactions contemplated hereby.

6.7            Satisfaction with Due Diligence.  LIBE shall have been satisfied with its due diligence review of ECPLLC and its operations.

6.8            Regulatory Compliance.  ECPLLC shall have received any and all regulatory approvals and consents required to complete the transactions contemplated hereby.

-12-

ARTICLE VII

CONDITIONS TO SELLER's AND ECPLLC's OBLIGATIONS

The obligation of SELLER and ECPLLC to consummate the Closing is subject to the following conditions, any of which may be waived by SELLER and ECPLLC in their discretion.

7.1            Compliance by LIBE and PRINCIPAL LIBE SHAREHOLDER.  LIBE and PRINCIPAL LIBE SHAREHOLDER shall have performed and complied in all material respects with all agreements and conditions required by this Agreement to be performed or complied with by them prior to or on the Closing Date.

7.2            Accuracy of Representations of LIBE and PRINICIPAL LIBE SHAREHOLDER.  The representations and warranties of LIBE and PRINCIPAL LIBE SHAREHOLDER contained in this Agreement (including the exhibits hereto and the LIBE Disclosure Schedule) or any schedule, certificate, or other instrument delivered pursuant to the provisions hereof or in connection with the transactions contemplated hereby shall be true and correct in all material respects at and as of the Closing Date (except for changes permitted by this Agreement) and shall be deemed to be made again as of the Closing Date.

7.3            Continuation as Publicly Traded Company.  LIBE will continue to remain reporting with the SEC, pursuant to Section 13 of the Securities Exchange Act of 1934, as amended, for a minimum of ten years from the date of Closing and cause its shares to continue to be listed for trading on the OTC Markets for the same period of time.

7.4            Litigation.  No litigation seeking to enjoin the transactions contemplated by this Agreement or to obtain damages on account hereof shall be pending or to LIBE's knowledge be threatened.

7.5            Documents.  All documents and instruments required hereunder to be delivered by LIBE and PRINCIPAL LIBE SHAREHOLCER at the Closing shall be delivered in form and substance reasonably satisfactory to SELLER and ECPLLC and their counsel.

7.6            Liabilities.  Except as set forth in Section 7.6 of the LIBE Disclosure Schedule, LIBE shall have no liabilities except as incurred in the ordinary course of business, as reflected on LIBE's most recent balance sheet, or as otherwise approved by SELLER.

7.7            Approval by Board of Directors.  The board of directors of LIBE shall have approved this Agreement.

7.8            Satisfaction with Due Diligence.  SELLER shall have been satisfied with their due diligence review of LIBE and satisfied themselves that LIBE continues to trade its shares on OTC Market under the designation PINK.

7.9            Regulatory Compliance.  LIBE shall have received any and all regulatory approvals and consents required to complete the transactions contemplated hereby.

7.10            Ingestion of Capital.  LIBE or others shall have paid all of LIBE's outstanding liabilities and LIBE shall

have executed an agreement with third parties for the ingestion of $200,000 of capital to LIBE, payable on Closing.

7.11            Payment to PRINCIPAL LIBE SHAREHOLDER.  PRINCIPAL LIBE SHAREHOLDER shall have been paid $15,000 from EEPLLC or a third party.

ARTICLE VIII

TERMINATION

-13-

8.1            Termination Prior to Closing.

(a)            If the Closing has not occurred by October 31, 2016, any party may terminate this Agreement at any time thereafter by giving written notice of termination to the other, provided, however, that no party may terminate this Agreement if such party has breached any material terms or conditions of this Agreement and such breach has prevented the timely closing of the Exchange. Notwithstanding the above, such deadline may be extended one or more times, only by mutual written consent of SELLER and LIBE.

(b)            Prior to October 31, 2016, any party may terminate this Agreement following the insolvency or bankruptcy of the other party hereto, or if any one or more of the conditions to Closing set forth in Article VI or Article V II shall become incapable of fulfillment or there shall have occurred a material breach of this Agreement and either such condition of breach shall not have been waived by the party for whose benefit the condition was established, then LIBE (in the case of a condition in Article VI) or SELLER (in the case of a condition specified in Article VII) may terminate this Agreement. In addition, either LIBE or SELLER or ECPLLC may terminate this Agreement upon written notice to the other if it shall reasonably determine that the Exchange has become inadvisable by reason of the institution or threat by an y federal, state or municipal governmental authorities of a formal investigation or of any action, suit or proceeding of any kind against either or both parties.

8.2            Consequences of Termination.  Upon termination of this Agreement pursuant to this Article VIII or any other express right of termination provided elsewhere in this Agreement, the parties shall be relieved of any further obligation under this Agreement except for the obligations in Section 11.4; provided, however, that no termination of this Agreement, pursuant to this Article VIII hereof or under any other express right of termination provided elsewhere in this Agreement shall operate to release any party from any liability to any other party incurred otherwise than under this Agreement before the date of such termination, or from any liability resulting from any willful misrepresentation of a material fact made in connection with this Agreement or willful breach of any material provision hereof.

 

 

 

 

 

  

-14-

ARTICLE IX

ADDITIONAL COVENANTS

9.1            Mutual Cooperation.  The parties hereto will cooperate with each other, and will use all reasonable efforts to cause the fulfillment of the conditions to the parties' obligations hereunder and to obtain as promptly as possible all consents, authorizations, orders or approvals from each and every third party, whether private or governmental, required in connection with the transactions contemplated by this Agreement.

9.2            Changes in Representations and Warranties of a Party.  Between the date of this Agreement and the Closing Date, no party shall directly or indirectly, enter into any transaction, take any action, or by inaction permit an otherwise preventable event to occur, which would result in any of the representations and warranties of such party herein contained not being true and correct at and as of the Closing Date. Each party shall promptly give written notice to the other parties upon becoming aware of (a) any fact which, if known on the date hereof, would have been required to be set forth or disclosed pursuant to this Agreement, and (b) any impending or threatened breach in any material respect of any of the party's representations and warranties contained in this Agreement and with respect to the latter shall use all reasonable efforts to remedy same.

9.3            Name Change.  As soon as practicable after completing the acquisition of ECPLLC, LIBE will change its name to EcoCab USA, Inc.

9.4            SEC Filings.  The parties agree that the following filing shall be made with the Securities and Exchange Commission ("Commission"): (a) a report on Form 8-K will be filed with the Commission disclosing the execution of this Agreement and subsequently, the completion of the terms thereof.

9.5            Conduct of Business.  During the period from the date of this Agreement until the earlier of the Closing Date or the termination of this Agreement in accordance with its terms, ECPLLC and LIBE shall continue to conduct their businesses and maintain their business relationships in the ordinary and usual course consistent with past practice and will not, without the prior written consent of the other party:

(a)            Sell, lease, assign transfer or otherwise dispose of any of its material assets, including cash;

(b)            Agree to, or assume guarantee, endorse or otherwise in any way be or become responsible or liable for, directly or indirectly, any material contingent obligation;

(c)            Make any material capital expenditures;

(d)            Enter into any transaction concerning a merger or consolidation other than with the other party hereto or liquidate or dissolve itself (or suffer any liquidation or dissolution) or convey, sell, lease, transfer or otherwise dispose of, in one transaction or a series of related transactions, all or a substantial part of its property, business, or assets, or stock or securities convertible into stock of any subsidiary, or make any material change in the present method of conducting business;

(e)            Declare or pay any dividends or make any other distribution (whether in cash or property) on any shares of its capital stock or purchase, redeem, retire or otherwise acquire for value any shares of its capital stock or warrants or options whether now or hereafter outstanding;

(f)            Make any advances or loans to, or investments in any person, firm, corporation or other business entity not a party to this Agreement;

(g)            Enter into any new material agreement or be or become liable under any new material agreement, for the lease, hire or use of any real or personal property; or

(h)            Create, incur, assume or suffer to exist, any mortgage, pledge, lien, charge, security interest or encumbrance of any kind upon any of its property or assets, income or profits, whether now owned or hereafter acquired.

-15-

ARTICLE X

SECURITIES & INDEMNIFICATION

10.1         LIBE Shares Not Registered.  SELLER has been advised that the LIBE Shares have not been and when issued, will not be registered under the Securities Act of 1933, the securities laws of any state of the United States or the securities laws of any other country and that in issuing and selling the LIBE Shares to SELLER pursuant hereto, LIBE is relying upon the "safe harbor" provided by Regulation 506 of Regulation D of the Securities Act of 1933, as amended. Resales of the LIBE Shares may only be made pursuant to an effective registration statement or the availability of an exemption from registration. All certificates evidencing the LIBE Shares shall, unless and until removed in accordance with law, bear a restrictive legend substantially in the following form:

The securities evidenced hereby have not been registered under the Securities Act of 1933, as amended, nor any other applicable securities act (the "Acts"), and may not be sold, transferred, assigned, pledged or otherwise distributed, unless there is an effective registration statement under such Acts covering such securities or the Company receives an opinion of counsel for the holder of these securities (concurred on by counsel for the Company) stating that such sale, transfer, assignment, pledge or distribution is exempt from or in compliance with the registration and prospectus delivery requirements of such Acts.

10.2         Indemnification by LIBE and PRINCIPAL LIBE SHAREHOLDER.  LIBE and PRINCIPAL LIBE SHAREHOLDER shall indemnify SELLER and ECPLLC in respect of, and hold SELLER and ECPLLC harmless against, any and all debts, obligations and other liabilities (whether absolute, accrued, contingent, fixed or otherwise, or whether known or unknown, or due or to become due or otherwise), monetary damages, fines fees, penalties, interest obligations, deficiencies, losses and expenses (including without limitation attorneys fees and litigation costs) incurred or suffered by SELLER or ECPLLC.

-16-

(a)            resulting from any misrepresentation, breach of warranty or failure to perform any covenant or agreement of LIBE contained in this Agreement; and

(b)            resulting from any liability of LIBE incurred or resulting from activities that took place prior to the Closing not disclosed on the LIBE Disclosure Schedule.

10.3         Indemnification by SELLER and ECPLLC.  SELLER and ECPLLC shall jointly and severally indemnify LIBE and PRINCIPAL LIBE SHAREHOLDER in respect of, and hold LIBE and PRINCIPAL LIBE SHAREHOLDER harmless against, any and all debts, obligations and other liabilities (whether absolute, accrued, contingent, fixed or otherwise, or whether known or unknown, or due or to become due or otherwise), monetary damages, fines fees, penalties, interest obligations, deficiencies, losses and expenses (including without limitation attorneys fees and litigation costs) incurred or suffered by LIBE or PRINCIPAL LIBE SHAREHOLDER:

(a)            resulting from any misrepresentation, breach of warranty or failure to perform any covenant or agreement of SELLER contained in this Agreement; and,

(b)            resulting from any liability of SELLER incurred or resulting from activities that took place prior to the Closing not disclosed on the ECPLLC Financial Statements.

ARTICLE XI

[Intentionally Omitted]

ARTICLE XI

MISCELLANEOUS

12.1         Expenses.  Each party shall each pay its own expenses incident to the negotiation, preparation, and carrying out of this Agreement, including legal, accounting and audit fees.

12.2        Survival of Representations, Warranties and Covenants.  All statements contained in this Agreement or in any certificate delivered by or on behalf of parties pursuant hereto, or in connection with the actions contemplated hereby shall be deemed representations, warranties and covenants by the parties as the case may be, hereunder. All representations, warranties, and covenants made by parties in this Agreement, or pursuant hereto, shall survive the Closing in a period of two (2) years.

12.3        Publicity.  LIBE and ECPLLC shall not issue any press release or make any other public statement, in each case, relating to, in connection with or arising out of this Agreement or the transactions contemplated hereby, without obtaining the prior approval of the other, which shall not be unreasonably withheld or delayed, except that prior approval shall not be required if, in the reasonable judgment of LIBE prior approval by SELLER would prevent the timely dissemination of such release or statement in violation of applicable federal securities laws, rules or regulations or policies of OTC Markets.

12.4        Non-Disclosure.  A disclosing party will not at any time after the date of this Agreement, without the recipient's consent, except in the ordinary operation of its business or as required by law, divulge, furnish to or make accessible to anyone any knowledge or information with respect to confidential or secret processes, inventions, discoveries, improvements, formulae, plans, material, devices or ideas or know-how, whether patentable or not, with respect to any confidential or secret aspects of such party (including, without limitation, customer lists, supplier lists and pricing arrangements with customers or suppliers) ("Confidential Information"). The parties will not at any time after the date of this Agreement and prior to the Exchange use, divulge, furnish to or make accessible to anyone any Confidential Information (other than to its representatives as part of its due diligence or corporate investigation). Any information, which (i) at or prior to the time of disclosure by the disclosing party was generally available to the public through no breach of this covenant, (ii) was available to the public on a non-confidential basis prior to its disclosure by the disclosing party, or (iii) was made available to the public from a third party provided that such third party did not obtain or disseminate such information in breach of any legal obligation of the disclosing party, shall not be deemed Confidential Information for

-17-

purposes hereof, and the undertakings in this covenant with respect to Confidential Information shall not apply thereto. The undertakings of the parties set forth above in this Section 12.4 shall terminate upon consummation of the Closing. If this Agreement is terminated pursuant to the provisions of Article VIII or any other express right of termination set forth in this Agreement, the recipient shall return to the disclosing party all copies of all Confidential Information previously furnished to it by the disclosing party.

12.5        Succession and Assignments and Third Party Beneficiaries.  This Agreement may not be assigned (either voluntarily or involuntarily) by any party hereto without the express written consent of the other parties. Any attempted assignment in violation of this Section shall be void and ineffective for all purposes. In the event of an assignment permitted by this Section, this Agreement shall be binding upon the heirs, successors and assigns of the parties hereto. There shall be no third party beneficiaries of this Agreement except as expressly set forth herein to the contrary.

12.6         Notices.  All notices, requests, demands, or other communications with respect to this Agreement shall be in writing and shall be (i) sent by facsimile transmission, (ii) sent by the United States Postal Service, registered or certified mail, return receipt requested, or (iii) personally delivered by a nationally recognized express overnight courier service, charges prepaid, to the following addresses (or such other addresses as the parties may specify from time to time in accordance with this Section):

	 	
If, to LIBE or PRINCIPAL

	
Brian P. Conway

	 	
LIBE SHAREHOLDER:

	
LIBERATED ENERGY, INC.

	 	 	
15 Elvis Boulevard

	 	 	
Chester, New York 10918

	 	 	
Tel: (845) 610-3817

	 	 	 
	 	 	 
	 	
If, to ECPLLC:

	 
	 	 	
EcoCab Portland, LLC

	 	 	
3250 Northwest Yeon Avenue, Suite 4-6 W

	 	 	
Portland, OR 97210

	 	 	 

Any such notice shall, when sent in accordance with the preceding sentence, be deemed to have been given and received on the earliest of (i) the day delivered to such address or sent by facsimile transmission, (ii) the tenth business day following the date deposited with the United States Postal Service, as the case may be, or (iii) 72 hours after shipment by such courier service.

12.7        Construction. This Agreement shall be construed and enforced in accordance with the internal laws of the State of Nevada without giving effect to the principles of conflicts of law thereof. All parties hereby irrevocably submit to the exclusive jurisdiction of any state or federal court sitting in the state of Nevada for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waive, and agree not to assert in any suit, action or proceeding, any claim that he is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper.

12.8        Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall together constitute one and the same Agreement.

12.9        No Implied Waiver; Remedies. No failure or delay on the part of the parties hereto to exercise any right, power, or privilege hereunder or under any instrument executed pursuant hereto shall operate as a waiver nor shall any single or partial exercise of any right, power, or privilege preclude any other or further exercise thereof or the exercise of any other right, power, or privilege. All rights, powers, and privileges granted herein shall be in addition to other rights and remedies to which the parties may be entitled at law or in equity.

12.10     Entire Agreement. This Agreement, including the Exhibits and Disclosure Schedules attached hereto, sets forth the entire understandings of the parties with respect to the subject matter hereof, and it incorporates and merges

-18-

any and all previous communications, understandings, oral or written as to the subject matter hereof, and cannot be amended or changed except in writing, signed by the parties.

12.11     Headings. The headings of the Sections of this Agreement, where employed, are for the convenience of reference only and do not form a part hereof and in no way modify, interpret or construe the meanings of the parties.

12.12     Severability. To the extent that any provision of this Agreement shall be invalid or unenforceable, it shall be considered deleted hereof and the remainder of such provision and of this Agreement shall be unaffected and shall continue in full force and effect.

12.13     Attorneys Fees. In the event any legal action is brought to interpret or enforce this Agreement, the party prevailing in such action shall be entitled to recover its attorneys' fees and costs in addition to any other relief that it is entitled.

12.14     Consultants. Each party represents to the others that there is no broker or finder entitled to a fee or other compensation for bringing the parties together to effect the Exchange.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written.

	
LIBE:

	
Liberated Energy, Inc.

	 	
a Nevada Corporation

	 	 	 	 
	 	 	 	 
	 	 	
By:

	
BRIAN P. CONWAY

	 	 	 	
Brian P. Conway, President

 

 

 

 

 

 

 

 

 

 

 

  

-19-

	
PRINCIPAL LIBE SHAREHOLDER:

	
BRIAN P. CONWAY

	 	
Brian P. Conway

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
ECPLLC:

	
EcoCab Portland, LLC, an Oregon limited liability company

	 	 	 	 
	 	 	
By:

	
RON KNORI

	 	 	 	
Ron Knori, Managing Member

	 	 	 	 
	 	 	 	 
	 	 	 	 
	
SELLER:

	
RON KNORI

	 	
Ron Knori

 

 

 

 

 

 

 

 

  

-20-

LIBE Disclosure Schedule

Section 3.13           Financial Statements.

LIBE Balance Sheet as of September 13, 2016

	 	 	 	 	 	 	
Sep 13, 16

	
ASSETS

	 	 	 	 
	 	
Current Assets

	 
	 	 	
Checking/Savings

	 
	 	 	 	
Wells Fargo

	 
	 	 	 	 	
Checking 0195

	
7,161.13

	 	 	 	
Total Wells Fargo

	
7,161.13

	 	 	
Total Checking/Savings

	
7,161.13

	 	
Total Current Assets

	
7,161.13

	
TOTAL ASSETS

	 	
7,161.13

	
LIABILITIES & EQUITY

	 
	 	
Liabilities

	 	 	 
	 	 	
Current Liabilities

	 
	 	 	 	
Other Current Liabilities

	 
	 	 	 	 	
Accrued Interest

	
18,896.63

	 	 	 	 	
Convertible Notes

	 
	 	 	 	 	 	
Care bourn

	
355,259.70

	 	 	 	 	 	
Craig Savin

	
20,000.00

	 	 	 	 	 	
Service Trading Company

	
22,000.00

	 	 	 	 	
Total Convertible Notes

	
397,259.70

	 	 	 	 	
Received for Stock

	
50,000.00

	 	 	 	
Total Other Current Liabilities

	
466,156.33

	 	 	
Total Current Liabilities

	
466,156.33

	 	
Total Liabilities

	
466,156.33

	 	
Equity

	 	 	 	 
	 	 	
Capital Stock

	
788.00

	 	 	
Paid In Capital

	
745,515.38

	 	 	
Preferred Stock

	
10,000.00

	 	 	
Retained Earnings

	
-1,083,231.59

	 	 	
Net Income

	
-132,066.99

	 	
Total Equity

	 	
-458,995.20

	
TOTAL LIABILITIES & EQUITY

	
7,161.13

-21-

The $355,359.70 balance indicated for Carebourn Capital L.P. is in respect of promissory notes convertible into common stock of LIBE at a discount to the market trading price. The indicated balance reflects the LIBE's estimate of the actual cost to LIBE of the promissory notes, given the conversion discount feature. By face amount, the outstanding principal and accumulated interest balance of all promissory notes held by Carebourn Capital as of September 12, 2016 is as follows:

	 	
Principal

	 	
Interest

	
Carebourn Capital L.P.

	
$18,000

	 	
$18,485.26

	 	
$21,000

	 	
$22,125.37

	 	
$28,000

	 	
$29,914.74

	 	
$23,000

	 	
$23,000.00

	 	
$198,000.00

	 	
$0.00

Similarly, the outstanding principal balance of the promissory note held by Service Trading Co. is as follows:

	
Service Trading Co.

	
$22,000

	 	
$23,500.00

Section 3.7 Litigations; Section 3.22 Liabilities.

One of LIBE's lenders, LG Capital Funding LLC, by email, accepted LIBE's offer to settle their outstanding convertible promissory note for $85,000. LIBE promptly delivered a check to LG Capital Funding for $85,000, which in the LIBE's view formed a binding contract with LIBE to settle the debt. Without returning the check, LG Capital Funding took action in conflict with the settlement agreement, by attempting to convert part the promissory note into 39,197 shares of restricted LIBE common stock. LIBE's position is that the settlement was binding and that the attempt to convert the note is a breach of contract. LIBE will seek an injunction to prevent the issuance of shares in respect of the note conversion and enforce the settlement agreement.

-22-

ECPLLC Disclosure Schedule

Section 4.5              Capitalization of ECPLLC

ECPLLC has outstanding $235,000 principal amount of convertible notes convertible into membership interests of ECPLLC at the election of the holders at any time before the First Payment Date as defined in the notes. The First Payment Dates range from January 1, 2017 to October 1, 2017. At January 1, 2017, the convertible notes (principal and accumulated interest) will be convertible into an aggregate 4.91% ownership interest of ECPLLC. EPCLLC has discussed with the noteholders the possible exchange of the convertible notes for promissory notes of LIBE that would be convertible into shares of LIBE common stock, but no definitive agreements have been reached.

ECPLLC's outside legal counsel holds a warrant for 0.87% ownership interest of the Company. The warrant has an exercise price of $50,000 and a ten year term. ECPLCC has agreed to exchange it for a warrant for 222,909 shares of common stock of LIBE with the same exercise price and term.

Section 4.15           Absence of Certain Changes or Events.

Since the Balance Sheet Date ECPLCC has depleted its working capital and has insufficient capital to make pay its debts liabilities when they come due or to pay its payroll. ECPLCC is seeking capital so that it can continue as a going concern.

 

 

 

 

 

  

-23-

Section 4.17           Motor Vehicles

	
Eco Cab Portland LLC Atlas Vehicle Schedule as of September 13, 2016-CA16936P2016Policy #

	
Veh#

	
Year

	
Make

	
Model

	
Vehicle ID Number

	
Stated Value

	
1

	
2015

	
Tesla

	
Model S

	
5YJSA1H18FFP70935

	
96,360

	
2

	
2015

	
Tesla

	
Model S

	
5YJSA1H16FFP69380

	
96,360

	
3

	
2015

	
Tesla

	
Model S

	
5YJSA1H18EFP62543

	
105,450

	
4

	
2013

	
Nissan

	
Leaf

	
1N4AZ0CP5DC409799

	
18,000

	
5

	
2013

	
Nissan

	
Leaf

	
1N4AZ0CP2DC408822

	
18,000

	
6

	
2013

	
Nissan

	
Leaf

	
1N4AZ0CP7DC408007

	
18,000

	
7

	
2013

	
Nissan

	
Leaf

	
1N4AZ0CP8DC405150

	
18,000

	
8

	
2013

	
Nissan

	
Leaf

	
1N4AZ0CP9DC407523

	
18,000

	
9

	
2013

	
Nissan

	
Leaf

	
1N4AZ0CPXDC411063

	
18,000

	
10

	
2013

	
Nissan

	
Leaf

	
1N4AZ0CP7DC403177

	
18,000

	
11

	
2013

	
Nissan

	
Leaf

	
1N4AZ0CP8DC402121

	
18,000

	
12

	
2014

	
MVLLC

	
MV-1

	
57WMD2A67EM101858

	
51,159

	
13

	
2014

	
MVLLC

	
MV-1

	
57WMD2A6XEM101806

	
51,159

	
14

	
2013

	
Nissan

	
Leaf

	
1N4AZ0CP6DC403817

	
18,000

	
15

	
2015

	
Tesla

	
Model S

	
5YJSA4H16FFP73012

	
95,370

	
16

	
2015

	
Tesla

	
Model S

	
5YJSA4H17FFP73049

	
93,470

	
17

	
2015

	
Tesla

	
Model S

	
5YJSA4H13FFP76188

	
94,820

	
18

	
2014

	
Tesla

	
Model S

	
5YJSA1H1XEFP37692

	
94,240

	
19

	
2014

	
Tesla

	
Model S

	
5YJSA1H19EFP30507

	
94,420

	
20

	
2014

	
MVLLC

	
MV-1

	
57WMD1A63EM100605

	
38,900

	
21

	
2014

	
MVLLC

	
MV-1

	
57WMD1A67EM100610

	
38,900

	
22

	
2014

	
MVLLC

	
MV-1

	
57WMD2A69EM101795

	
38,900

	
23

	
2016

	
Ford

	
Trasit 150 Van

	
1FMZK1CM1GKA15512

	
48,000

	
24

	
2016

	
Ford

	
Trasit 150 Van

	
1FMZK1CM3GKA15513

	
48,000

	
25

	
2016

	
MVLLC

	
MV-1

	
57WMD1A6XEM100715

	
35,000

	
26

	
2014

	
Tesla

	
Model S

	
5YJSA1H11EFP62190

	
70,000

	
27

	
2015

	
Tesla

	
Model S85

	
5YJSA1E15FF114664

	
70,000

	
28

	
2014

	
Tesla

	
Model S

	
5YJSA1H1XEFP62494

	
70,000

	
29

	
2015

	
Ford

	
Trasit 150 Van

	
1FTNE1CM1FKB29583

	
40,000

	
30

	
2015

	
Ford

	
Trasit 150 Van

	
1FTNE1CM3FKB29584

	
40,000

	
31

	
2015

	
Ford

	
Trasit 150 Van

	
1FTNE1CMXFKB29582

	
40,000

	
32

	
2015

	
Ford

	
Trasit 150 Van

	
1FTNE1CM6FKB18367

	
40,000

Progressive Auto Schedule as of September 13, 2016-Policy #035676362

	
Veh#

	
Year

	
Make

	
Model

	
Vehicle ID Number

	
Stated Value

	
1

	
2015

	
Tesla

	
Model S P

	
5YJSA4H29FFP79900

	
125,120

	
2

	
2016

	
Tesla

	
X

	
5YJXCAE21GF003927

	
100,000

	
Liberty Auto Policy as of September 13, 2016-Policy #BAS56842886

	
Veh#

	
Year

	
Make

	
Model

	
Vehicle ID Number

	
Stated Value

	
1

	
2014

	
Tesla

	
Model S

	
5YJSA1H12EFP58083

	
96,150

-26-

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