Document:

ex-10_3.htm

TherapeuticsMD, Inc. 8-K

 

Exhibit 10.3

 

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF
WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON STOCK PURCHASE WARRANT

 

THERAPEUTICSMD, INC.

 

	Warrant Shares: _____________	Initial Exercise Date: _______

 

THIS IS TO CERTIFY THAT _________________ (the “Holder”), or its registered assigns, is entitled, at any time from the Issuance Date (as hereinafter defined) to the Expiration Date (as hereinafter defined), to purchase from THERAPEUTICSMD, INC., a Nevada corporation (the “Company”), __________________________ (______) shares of the Company's Common Stock (as hereinafter defined and subject to adjustment as provided herein), in whole or in part, including fractional parts, at a purchase price per share equal to $_____ subject to any adjustments made to such amount pursuant to Section 4 hereto) on the terms and conditions and pursuant to the provisions hereinafter set forth.

 

	
1.

	
DEFINITIONS

 

As used in this Warrant, the following terms have the respective meanings set forth below:

 

“Additional Shares of Common Stock” shall mean all shares of Common Stock issued by the Company after the Closing Date, other than Warrant Stock.

 

“Book Value” shall mean, in respect of any share of Common Stock on any date herein specified, the consoli­dated book value of the Company as of the last day of any month immediately preceding such date, divided by the number of Fully Diluted Outstanding shares of Common Stock as deter­mined in accordance with GAAP (assuming the payment of the exercise prices for such shares) by a firm of independent certified public account­ants of recognized national standing selected by the Company and reasonably acceptable to the Holder.

 

“Business Day” shall mean any day that is not a Saturday or Sunday or a day on which banks are required or permitted to be closed in the State of New York.

 

  

  

  

 

 “Commission” shall mean the Securities and Exchange Commission or any other federal agency then administering the Securities Act and other federal securities laws.

 

“Common Stock” shall mean (except where the context otherwise indicates) the Common Stock, par value $0.001 per share, of the Company as constituted on the Closing Date, and any capital stock into which such Common Stock may there­after be changed, and shall also include (i) capital stock of the Company of any other class (regardless of how denomi­nated) issued to the holders of shares of Common Stock upon any reclassification thereof which is also not preferred as to dividends or assets over any other class of stock of the Company and which is not subject to redemption and (ii) shares of common stock of any successor or acquiring corporation received by or distributed to the
holders of Common Stock of the Company in the circumstances contemplated by Section 4.3.

 

“Convertible Securities” shall mean evidences of indebtedness, shares of stock or other securities which are convertible into or exchangeable, with or without payment of additional consideration in cash or property, for shares of Common Stock, either immediately or upon the occurrence of a specified date or a specified event.

 

“Current Warrant Price” shall mean $_______ subject to any adjustments to such amount made in accordance with Section 4 hereof.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, or any successor federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect from time to time.

 

“Exercise Period” shall mean the period during which this Warrant is exercisable pursuant to Section 2.1.

 

“Expiration Date” shall mean _________________.

 

“Fully Diluted Outstanding” shall mean, when used with reference to Common Stock, at any date as of which the number of shares thereof is to be determined, all shares of Common Stock Outstanding at such date and all shares of Common Stock issuable in respect of this Warrant, outstanding on such date, and other options or warrants to purchase, or securities convertible into, including without limitation the shares of Common Stock outstanding on such date which would be deemed out­stand­ing in accordance with GAAP for purposes of determining book value or net income per share.

 

“GAAP” shall mean generally accepted accounting principles in the United States of America as from time to time in effect.

 

 “Holder” shall mean the Person in whose name the Warrant or Warrant Stock set forth herein is registered on the books of the Company maintained for such purpose.

 

“Market Price” per Common Share means the average of the closing bid prices of the Common Shares as reported on the National Association of Securities Dealers Automated Quotation System for the National Market, (“NASDAQ”) or, if such security is not listed or admitted to trading on the NASDAQ, on the principal national security exchange or quotation system on which such security is quoted or listed or admitted to trading, or, if not quoted or listed or admitted to trading on any national securities exchange or quotation system, the closing bid price of such security on the over-the-counter market on the day in question as reported by the National Association of Security Dealers, Inc., or a
similar generally accepted reporting service, as the case may be, for the five (5) trading days immediately preceding the date of determination.

 

  

  

  

 

“Other Property” shall have the meaning set forth in Section 4.5.

 

“Outstanding” shall mean, when used with reference to Common Stock, at any date as of which the number of shares thereof is to be determined, all issued shares of Common Stock, except shares then owned or held by or for the account of the Company or any subsidiary thereof, and shall include all shares issuable in respect of outstanding scrip or any certificates representing fractional interests in shares of Common Stock.

 

“Person” shall mean any individual, sole proprie­tor­ship, partnership, joint venture, trust, incorporated organization, association, corporation, institution, public benefit corporation, entity or government (whether federal, state, county, city, municipal or otherwise, including, without limitation, any instrumentality, division, agency, body or department thereof).

 

“Restricted Common Stock” shall mean shares of Common Stock which are, or which upon their issuance on the exercise of this Warrant would be, evidenced by a certifi­cate bearing the restrictive legend set forth in Section 9.1(a).

 

“Securities Act” shall mean the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.

 

“Transfer” shall mean any disposition of any Warrant or Warrant Stock or of any interest in either thereof, which would constitute a sale thereof within the meaning of the Securities Act.

 

“Transfer Notice” shall have the meaning set forth in Section 9.2.

 

“Vesting Date” shall mean _____________________________.

 

“Warrant Issuance Date” shall mean the date on which the Warrants are issued to the Holder.

 

“Warrants” shall mean this Warrant and all warrants issued upon transfer, division or combination of, or in substitution for, any thereof.  All Warrants shall at all times be identical as to terms and conditions and date, except as to the number of shares of Common Stock for which they may be exercised.

 

“Warrant Price” shall mean an amount equal to (i) the number of shares of Common Stock being purchased upon exercise of this Warrant pursuant to Section 2.1, multiplied by (ii) the Current Warrant Price as of the date of such exercise.

 

“Warrant Stock” shall mean the shares of Common Stock purchased by the holders of the Warrants upon the exercise thereof.

 

	
2.

	
EXERCISE OF WARRANT

 

2.1.           Manner of Exercise.  From and after the Vesting Date unless cancelled prior to such date and until 5:00 P.M., New York City time, on the Expiration Date, Holder may exercise this Warrant, on any Business Day, for all or any part of the number of shares of Common Stock purchasable hereunder.

 

  

  

  

 

In order to exercise this Warrant, in whole or in part, Holder shall deliver to the Company at the office or agency designated by the Company pursuant to Section 12, (i) a written notice of Holder’s election to exercise this Warrant, which notice shall specify the number of shares of Common Stock to be purchased, (ii) payment by cash, check or bank draft payable to the Company of the Warrant Price in cash or by wire transfer or cashier’s check drawn on a United States bank for all shares then being purchased and (iii) this Warrant.  Such notice shall be substantially in the form of the subscription form appearing at the end of this Warrant as
Exhibit 1, duly executed by Holder or its agent or attorney.  Upon receipt of the items referred to in clauses (i), (ii) and (iii) above, the Company shall, as promptly as practicable, and in any event within five (5) Business Days thereafter, execute or cause to be executed and deliver or cause to be delivered to Holder a certificate or certificates representing the aggregate number of full shares of Common Stock issuable upon such exercise, together with cash in lieu of any fraction of a share, as hereinafter provided.  The stock certificate or certificates so deliv­ered shall be, to the extent possible, in such denomination or denominations as Holder shall request in the notice and shall be registered in the name of Holder or, subject to Section 9, such other name as shall be designated in the
notice.  This Warrant shall be deemed to have been exercised and such certificate or certificates shall be deemed to have been issued, and Holder or any other Person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised by payment to the Company of the Warrant Price.  If this Warrant shall have been exercised in part, the Company shall, at the time of delivery of the certificate or certificates representing Warrant Stock, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased shares of Common Stock called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

The Holder shall be entitled to exercise the Warrant notwithstanding the commencement of any case under 11 U.S.C. § 101 et seq. (the “Bankruptcy Code”).  In the event the Company is a debtor under the Bankruptcy Code, the Company hereby waives to the fullest extent permitted any rights to relief it may have under 11 U.S.C. § 362 in respect of the Holder’s exercise right.  The Company hereby waives to the fullest extent permitted any rights to relief it may have under 11 U.S.C. § 362 in respect of the exercise of the
Warrant.  The Company agrees, without cost or expense to the Holder, to take or consent to any and all action necessary to effectuate relief under 11 U.S.C. § 362.

 

2.2.           Payment of Taxes and Charges.  All shares of Common Stock issuable upon the exercise of this Warrant pursuant to the terms hereof shall be validly issued, fully paid and nonassessable, and without any preemptive rights.  The Company shall pay all expenses in connection with, and all taxes and other governmental charges that may be imposed with respect to, the issue or delivery thereof.

 

2.3.           Fractional Shares.  The Company shall not be required to issue a fractional share of Common Stock upon exercise of any Warrant.  As to any fraction of a share which Holder would otherwise be entitled to purchase upon such exercise, the Company shall pay a cash adjustment in respect of such final fraction in an amount equal to the same fraction of the Market Price per share of Common Stock on the relevant exercise date.

 

2.4.           Continued Validity.  A holder of shares of Common Stock issued upon the exercise of this Warrant, in whole or in part (other than a holder who acquires such shares after the same have been publicly sold pursuant to a Registration Statement under the Securities Act or sold pursuant to Rule 144 thereunder), shall continue to be entitled with respect to such shares to all rights to which it would have been entitled as Holder under Sections 9, 10 and 14 of this Warrant.  The Company will, at the time of exercise of this Warrant, in whole or in part, upon the
request of Holder, acknowledge in writing, in form reasonably satisfactory to Holder, its continuing obligation to afford Holder all such rights; provided, however, that if Holder shall fail to make any such request, such failure shall not affect the continuing obligation of the Company to afford to Holder all such rights.

 

  

  

  

 

	
3.

	
TRANSFER, DIVISION AND COMBINATION

 

3.1.           Transfer.  Subject to compliance with Section 9, transfer of this Warrant and all rights hereunder, in whole or in part, shall be registered on the books of the Company to be maintained for such purpose, upon surrender of this Warrant at the principal office of the Company referred to in Section 2.1 or the office or agency desig­nated by the Company pursuant to Section 12, together with a written assignment of this Warrant substantially in the form of Exhibit 2 hereto duly executed by Holder or its
agent or attorney.  Upon such surren­der, the Company shall, subject to Section 9, execute and deliver a new Warrant or Warrants in the name of the assignee or assignees and in the denomi­na­tion specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.  A Warrant, if properly assigned in compliance with Section 9, may be exercised by a new Holder for the purchase of shares of Common Stock without having a new Warrant issued.

 

3.2.            Division and Combination.  Subject to Section 9, this Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office or agency of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by Holder or its agent or attorney.  Subject to compliance with Section 3.1 and with Section 9, as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combined in accordance with such notice.

 

3.3.           Expenses.  The Company shall prepare, issue and deliver at its own expense the new Warrant or Warrants under this Section 3.

 

3.4.           Maintenance of Books.  The Company agrees to maintain, at its aforesaid office or agency, books for the registration and the registration of transfer of the Warrants.

 

	
4.

	
ADJUSTMENTS

 

The number of shares of Common Stock for which this Warrant is exercisable, or the price at which such shares may be purchased upon exercise of this Warrant, shall be subject to adjustment from time to time as set forth in this Section 4.  The Company shall give Holder notice of any event described below which requires an adjustment pursuant to this Section 4 at the time of such event.

 

4.1.           Stock Dividends, Subdivisions and Combinations.  If at any time the Company shall:

 

(a)           take a record of the holders of its Common Stock for the purpose of entitling them to receive a dividend payable in, or other distribution of, Additional Shares of Common Stock,

 

(b)           subdivide its outstanding shares of Common Stock into a larger number of shares of Common Stock, or

 

(c)           combine its outstanding shares of Common Stock into a smaller number of shares of Common Stock,

 

then (i) the number of shares of Common Stock for which this Warrant is exercisable immediately after the occurrence of any such event shall be adjusted to equal the number of  shares of Common Stock which a record holder of the same number of shares of Common Stock for which this Warrant is exercisable immediately prior to the occurrence of such event would own or be entitled to receive after the happen­ing of such event, and (ii) the Current Warrant Price shall be adjusted to equal (A) the Current Warrant Price multi­plied by the number of shares of Common Stock for which this Warrant is exercisable immediately prior to the adjustment divided by (B) the number of shares
for which this Warrant is exercisable immediately after such adjustment.

 

  

  

  

 

4.2.           Other Provisions Applicable to Adjustments under this Section.  The following provisions shall be applicable to the making of adjustments of the number of shares of Common Stock for which this Warrant is exercisable and the Current Warrant Price provided for in this Section 4:

 

(a)           When Adjustments to Be Made.  The adjustments required by this Section 4 shall be made whenever and as often as any specified event requiring an adjustment shall occur.  For the purpose of any adjustment, any specified event shall be deemed to have occurred at the close of business on the date of its occurrence.

 

(b)           Fractional Interests.  In computing adjust­ments under this Section 4, fractional interests in Common Stock shall be taken into account to the nearest 1/10th of a share.

 

(c)           When Adjustment Not Required.  If the Company shall take a record of the holders of its Common Stock for the purpose of entitling them to receive a dividend or distribution or subscription or purchase rights and shall, thereafter and before the distribution to stock­holders thereof, legally abandon its plan to pay or deliver such dividend, distribution, subscription or purchase rights, then thereafter no adjustment shall be required by reason of the taking of such record and any such adjustment previously made in respect thereof shall be rescinded and
annulled.

 

(d)           Challenge to Good Faith Determination.  Whenever the Board of Directors of the Company shall be required to make a determination in good faith of the fair value of any item under this Section 4, such determination may be challenged in good faith by the Holder, and any dispute shall be resolved by an investment banking firm of recognized national standing selected by the Holder and reasonably acceptable to the Company.

 

(e)           Proceeding Prior to Any Action Requiring Adjustment.  As a condition precedent to the taking of any action which would require an adjustment pursuant to this Section 4, the Company shall take any action which may be necessary, including obtaining regulatory approvals or exemptions, in order that the Company may thereafter validly and legally issue as fully paid and nonassessable all shares of Common Stock which the Holder is entitled to receive upon exercise hereof.

 

4.3.           Reorganization, Reclassification, Merger, Consolidation or Disposition of Assets.  In case the Company shall reorganize its capital, reclassify its capital stock, consolidate or merge with or into another corporation (where the Company is not the surviving corporation or where there is a change in or distribution with respect to the Common Stock of the Company), or sell, transfer or otherwise dispose of all or substantially all its property, assets or business to another corporation and, pursuant to the terms of such reorganization, reclassification, merger,
consolidation or disposition of assets, shares of common stock of the successor or acquiring corporation, or any cash, shares of stock or other securities or property of any nature what­so­ever (including warrants or other subscription or purchase rights) in addition to or in lieu of common stock of the successor or acquiring corporation (“Other Property”), are to be received by or distributed to the holders of Common Stock of the Company, then Holder shall have the right thereafter to receive, upon exercise of the Warrant, the number of shares of common stock of the successor or acquir­ing corporation or of the Company, if it is the surviving corpo­ration, and Other Property receivable upon or as a result of such reorganization, reclassification, merger, consolidation or disposition of assets by a holder of the number of shares of Common Stock for which
this Warrant is exercisable imme­diately prior to such event.  In case of any such reorgani­za­tion, reclassification, merger, consolidation or disposi­tion of assets, the successor or acquiring corporation (if other than the Company) shall expressly assume the due and punc­tual observance and performance of each and every covenant and condition of this Warrant to be performed and observed by the Company and all the obligations and liabilities here­under, subject to such modifications as may be deemed appropriate, subject to the Holder’s consent, in order to provide for adjustments of shares of Common Stock for which this Warrant is exer­cis­able which shall be as nearly equivalent as practicable to the adjustments provided for in this Section 4.  For purposes of this Section 4.3, “common stock of the successor or
acquiring corporation” shall include stock of such corpo­ra­tion of any class which is not preferred as to dividends or assets over any other class of stock of such corporation and which is not subject to redemption and shall also include any evidences of indebtedness, shares of stock or other securities which are convertible into or exchangeable for any such stock, either immediately or upon the arrival of a specified date or the happening of a specified event and any warrants or other rights to subscribe for or pur­chase any such stock.  The foregoing provisions of this Section 4.3 shall similarly apply to successive reorganiza­tions, reclassifications, mergers, consolidations or disposition of assets.

 

  

  

  

 

4.4.           Other Action Affecting Common Stock.  In case at any time or from time to time the Company shall take any action in respect of its Common Stock, other than any action taken in the ordinary course of the Company’s business or any action described in this Section 4, which would have a material adverse effect upon the rights of the Holder, the number of shares of Common Stock and/or the purchase price thereof shall be adjusted in such manner as may be equitable in the circumstances, as determined in good faith by an investment bank selected by Holder.

 

4.5.           Certain Limitations.  Notwithstanding any­thing herein to the contrary, the Company agrees not to enter into any transaction which, by reason of any adjustment hereunder, would cause the Current Warrant Price to be less than the par value per share of Common Stock.

 

4.6.           No Voting Rights.  This Warrant shall not entitle its Holder to any voting rights or other rights as a shareholder of the Company.

 

	
5.

	
NOTICES TO HOLDER

 

5.1.           Notice of Adjustments.  Whenever the number of shares of Common Stock for which this Warrant is exercis­able, or whenever the price at which a share of such Common Stock may be purchased upon exercise of the Warrants, shall be adjusted pursuant to Section 4, the Company shall forthwith prepare a certificate to be executed by an executive officer of the Company setting forth, in reasonable detail, the event requiring the adjustment and the method by which such adjustment was calculated, specifying the number of shares of Common Stock for which this Warrant is
exercisable and describing the number and kind of any other shares of stock or Other Prop­erty for which this Warrant is exercisable, and any change in the purchase price or prices thereof, after giving effect to such adjustment or change.  The Company shall promptly cause a signed copy of such certificate to be delivered to the Holder in accordance with Section 14.2.  The Company shall keep at its office or agency designated pursuant to Section 12 copies of all such certificates and cause the same to be available for inspection at said office during normal business hours by the Holder, its representatives, or any prospective purchaser of a Warrant designated by the Holder.

 

5.2.           Notice of Corporate Action.  If at any time

 

(a)           the Company shall take a record of the holders of its Common Stock for the purpose of entitling them to receive a dividend or other distribu­tion (whether in cash, or any right to subscribe for or purchase any evidences of its indebtedness, any shares of stock of any class or any other securities or property of any nature whatsoever, or to receive any warrants or other rights (including, without limitation, rights to subscribe for or purchase any evidences of its indebtedness, any shares of its stock or any other securities or property of any nature whatsoever), or

 

  

  

  

 

(b)           there shall be any capital reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company or any consolidation or merger of the Company with, or any sale, transfer or other disposition of all or substantially all the property, assets or business of the Company to, another corporation, or

 

(c)           there shall be a voluntary or involuntary dissolution, liquidation or winding up of the Company;

 

then, in any one or more of such cases, the Company shall give to Holder (i) at least thirty (30) Business Days’ prior written notice of the date on which a record date shall be selected for such divi­dend, distribution or right or for determining rights to vote in respect of any such reorganization, reclassifica­tion, merger, consolidation, sale, transfer, disposition, dissolution, liquidation or winding up, and (ii) in the case of any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition, dissolution, liquida­tion or winding up, at least thirty (30) Business Days’ prior written notice of the date when the same shall take
place.  Such notice in accordance with the foregoing clause also shall specify (i) the date on which any such record is to be taken for the purpose of such dividend, distribution or right, the date on which the holders of Common Stock shall be entitled to any such dividend, distribution or right, and the amount and character thereof, and (ii) the date on which any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition, dissolution, liquidation or winding up is to take place and the time, if any such time is to be fixed, as of which the holders of Common Stock shall be entitled to exchange their shares of Common Stock for securities or other property deliverable upon such reorganization, reclassification, merger, consolidation, sale, transfer, disposition, dissolution, liquidation or winding up.  Each such written notice
shall be sufficiently given if addressed to Holder at the last address of Holder appearing on the books of the Company and delivered in accor­dance with Section 14.2.

 

A reclassification of the Common Stock (other than a change in par value, or from par value to no par value or from no par value to par value) into shares of Common Stock and shares of any other class of stock shall be deemed a distribution by the Company to the holders of its Common Stock of such shares of such other class of stock within the meaning of this Section and, if the outstanding shares of Common Stock shall be changed into a larger or smaller number of shares of Common Stock as a part of such reclassification, such change shall be deemed a subdivision or combination, as the case may be, of the outstanding shares of Common Stock within the meaning of Section 4.1.

 

	
6.

	
NO IMPAIRMENT

 

The Company shall not by any action, including, with­out limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolida­tion, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder against impairment.  Without limiting the generality of the foregoing, the Company will (a) not increase the par value of any shares of Common Stock receivable
upon the exercise of this Warrant above the amount payable there­for upon such exercise immediately prior to such increase in par value, (b) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant, and (c) use its best efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Warrant.

 

  

  

  

 

Upon the request of Holder, the Company will at any time during the period this Warrant is outstanding acknowl­edge in writing, in form reasonably satisfactory to Holder, the contin­u­ing validity of this Warrant and the obligations of the Company hereunder.

 

	
7.

	
RESERVATION AND AUTHORIZATION OF COMMON STOCK

 

From and after the Closing Date, the Company shall at all times reserve and keep available for issue upon the exercise of Warrants such number of its authorized but unissued shares of Common Stock as will be sufficient to permit the exercise in full of all outstanding Warrants.  All shares of Common Stock which shall be so issuable, when issued upon exercise of any Warrant and payment therefor in accordance with the terms of such Warrant, shall be duly and validly issued and fully paid and nonassessable, and not subject to preemptive rights.

 

Before taking any action which would cause an adjustment reducing the Current Warrant Price below the then par value, if any, of the shares of Common Stock issuable upon exercise of the Warrants, the Company shall take any corpo­rate action which may be necessary in order that the Company may validly and legally issue fully paid and non-assessable shares of such Common Stock at such adjusted Current Warrant Price.

 

Before taking any action which would result in an adjustment in the number of shares of Common Stock for which this Warrant is exercisable or in the Current Warrant Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

 

	
8.

	
TAKING OF RECORD; STOCK AND WARRANT TRANSFER BOOKS

 

In the case of all dividends or other distribu­tions by the Company to the holders of its Common Stock with respect to which any provision of Section 4 refers to the taking of a record of such holders, the Company will in each such case take such a record as of the close of business on a Business Day.  The Company will not at any time close its stock transfer books or Warrant transfer books so as to result in preventing or delaying the exercise or transfer of any Warrant.

 

	
9.

	
RESTRICTIONS ON TRANSFERABILITY

 

The Warrants and the Warrant Stock shall not be transferred, hypothecated or assigned before satisfaction of the conditions specified in this Section 9, which conditions are intended to ensure compliance with the provisions of the Securities Act with respect to the Transfer of any Warrant or any Warrant Stock.  Holder, by acceptance of this Warrant, agrees to be bound by the provisions of this Section 9.

 

9.1.           Restrictive Legend.  The Holder by accepting this Warrant and any Warrant Stock agrees that this Warrant and the Warrant Stock issuable upon exercise hereof may not be assigned or otherwise transferred unless and until (i) the Company has received an opinion of counsel for the Holder that such securities may be sold pursuant to an exemption from registration under the Securities Act or (ii) a registration statement relating to such securities has been filed by the Company and declared effective by the Commission.

 

  

  

  

 

(a)           Each certificate for Warrant Stock issuable hereunder shall bear a legend substantially worded as follows unless such securities have been sold pursuant to an effective registration statement under the Securities Act:

 

“The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Act”) or any state securities laws.  The securities may not be offered for sale, sold, assigned, offered, transferred or otherwise distributed for value except (i) pursuant to an effective registration statement under the Act or any state securities laws or (ii) pursuant to an exemption from registration or prospectus delivery requirements under the Act or any state securities laws in respect of which the Company has received an opinion of counsel satisfactory to the Company to such effect.  Copies of the agreement covering both the purchase of the
securities and restricting their transfer may be obtained at no cost by written request made by the holder of record of this certificate to the Secretary of the Company at the principal executive offices of the Company.”

 

(b)           Except as otherwise provided in this Sec­tion 9, the Warrant shall be stamped or otherwise imprinted with a legend in substantially the following form:

 

“This Warrant and the securities represented hereby have not been regis­tered under the Securities Act of 1933, as amended, or any state securities laws and may not be transferred in violation of such Act, the rules and regulations thereunder or any state securities laws or the provisions of this Warrant.”

 

9.2.           Notice of Proposed Transfers.  Prior to any Transfer or attempted Transfer of any Warrants or any shares of Restricted Common Stock, the Holder shall give five (5) days’ prior written notice (a “Transfer Notice”) to the Company of Holder’s intention to effect such Transfer, describing the manner and circumstances of the proposed Transfer, and obtain from counsel to Holder an opinion that the proposed Transfer of such Warrants or such Restricted Common Stock may be effected without registration under the Securities Act or state securities
laws.  After the Company’s receipt of the Transfer Notice and opinion, such Holder shall thereupon be entitled to Transfer such Warrants or such Restricted Common Stock, in accordance with the terms of the Transfer Notice.  Each certificate, if any, evidencing such shares of Restricted Common Stock issued upon such Transfer and the Warrant issued upon such Transfer shall bear the restrictive legends set forth in Section 9.1, unless in the opinion of such counsel such legend is not required in order to ensure compliance with the Securities Act.

 

9.3.           Termination of Restrictions.  Notwithstand­ing the foregoing provisions of Section 9, the restrictions imposed by this Section upon the transferability of the Warrants, the Warrant Stock and the Restricted Common Stock (or Common Stock issuable upon the exercise of the Warrants) and the legend requirements of Section 9.1 shall terminate as to any particular Warrant or share of Warrant Stock or Restricted Common Stock (or Common Stock issuable upon the exercise of the Warrants) (i) when and so long as such security shall have been effectively registered under
the Securities Act and applicable state securities laws and disposed of pursuant thereto or (ii) when the Company shall have received an opinion of counsel that such shares may be transferred with­out registration thereof under the Securities Act and applicable state securities laws.  Whenever the restrictions imposed by Section 9 shall terminate as to this Warrant, as hereinabove provided, the Holder hereof shall be entitled to receive from the Company upon written request of the Holder, at the expense of the Company, a new Warrant bearing the following legend in place of the restrictive legend set forth hereon:

 

  

  

  

 

“THE RESTRICTIONS ON TRANSFERABIL­ITY OF THE WITHIN WARRANT CONTAINED IN SECTION 9 HEREOF TERMINATED ON ________, 20__, AND ARE OF NO FURTHER FORCE AND EFFECT.”

 

All Warrants issued upon registration of transfer, division or combination of, or in substitution for, any Warrant or Warrants entitled to bear such legend shall have a similar legend endorsed thereon.  Whenever the restrictions imposed by this Section shall terminate as to any share of Restricted Common Stock, as hereinabove provided, the holder thereof shall be entitled to receive from the Company, at the Company’s expense, a new certificate representing such Common Stock not bearing the restrictive legends set forth in Section 9.1.

 

9.4.           Listing on Securities Exchange.  If the Company shall list any shares of Common Stock on any securities exchange, it will, at its expense, list thereon, maintain and, when necessary, increase such listing of, all shares of Common Stock issued or, to the extent permissible under the applicable securities exchange rules, issuable upon the exercise of this Warrant so long as any shares of Common Stock shall be so listed during the Exercise Period.

 

	
10.

	
SUPPLYING INFORMATION

 

The Company shall cooperate with Holder in supplying such information as may be reasonably necessary for Holder to complete and file any information reporting forms presently or hereafter required by the Commission as a condition to the availability of an exemption from the Securities Act for the sale of any Warrant or Restricted Common Stock.

 

	
11.

	
LOSS OR MUTILATION

 

Upon receipt by the Company from Holder of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of this Warrant and indemnity reasonably satisfactory to it (it being understood that the written agreement of the Holder shall be sufficient indemnity), and in case of mutilation upon surrender and cancellation hereof, the Company will execute and deliver in lieu hereof a new Warrant of like tenor to Holder; provided, in the case of mutilation, no indemnity shall be required if this Warrant in identifiable form is surrendered to the Company for cancellation.

 

	
12.

	
OFFICE OF THE COMPANY

 

As long as any of the Warrants remain outstanding, the Company shall maintain an office or agency (which may be the principal executive offices of the Company) where the Warrants may be presented for exercise, registration of transfer, division or combination as provided in this Warrant, such office to be initially located at 951 Broken Sound Parkway NW, Suite 320, Boca Raton, FL  33487, provided, however, that the Company shall provide prior written notice to Holder of a change in address no less than thirty (30) days prior to such change.

 

	
13.

	
LIMITATION OF LIABILITY

 

No provision hereof, in the absence of affirmative action by Holder to purchase shares of Common Stock, and no enumeration herein of the rights or privileges of Holder hereof, shall give rise to any liability of Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

  

  

  

 

	
14.

	
MISCELLANEOUS

 

14.1.           Non-waiver and Expenses.  No course of deal­ing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies, notwithstanding all rights hereunder terminate on the Expiration Date.  If the Company fails to make, when due, any payments provided for hereunder, or fails to comply with any other provision of this Warrant, the Company shall pay to Holder such amounts as shall be sufficient to cover any direct and indirect losses, damages,
costs and expenses including, but not limited to, reasonable attor­neys’ fees, including those of appellate proceedings, incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

14.2.           Notice Generally.  Except as may be otherwise provided herein, any notice or other communication or delivery required or permitted hereunder shall be in writing and shall be delivered personally or sent by certified mail, postage prepaid, or by a nationally recognized overnight courier service, and shall be deemed given when so delivered personally or by overnight courier service, or, if mailed, three (3) days after the date of deposit in the United States mails, as follows:

 

	(a)	if to the Company, to:	
TherapeuticsMD, Inc.

951 Broken Sound Parkway, Suite 321

Boca Raton, FL  33487

Attention:  Robert G. Finizio

Phone:  (561) 961-1911 

Fax:       (561) 431-3389

	 
	 	 	 	 
	 	with a copy to:	
Joel C. Schneider, Esq.

The Law Offices of Joel Schneider

595 Stewart Avenue, Suite 710

Garden City, NY  11530

Phone:  (516) 228-8181

Fax:       (516) 228-8211

	 
	 	 	 	 
	(b)	if to the Holder to:	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

The Company or the Holder may change the foregoing address by notice given pursuant to this Section 14.2.

14.3.           Successors and Assigns.  Subject to the provisions of Sections 3.1 and 9, this Warrant and the rights evidenced hereby shall inure to the benefit of and be binding upon the successors of the Company and the successors and assigns of Holder.  The provisions of this Warrant are intended to be for the benefit of all Holders from time to time of this Warrant and, with respect to Section 9 hereof, holders of Warrant Stock, and shall be enforceable by any such Holder or holder of Warrant Stock.

 

14.4.           Amendment.  This Warrant and all other Warrants may be modified or amended or the provisions hereof waived only with the prior written consent of the Company and the Holder.

 

  

  

  

 

14.5.           Severability.  Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Warrant.

 

14.6.           Headings.  The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

14.7.           Governing Law.  This Warrant shall be governed by the laws of the State of Florida, without regard to the provisions thereof relating to conflict of laws. The Company consents to the jurisdiction of the federal courts whose districts encompass any part of Florida in connection with any dispute arising under this Warrant or any of the transactions contemplated hereby, and hereby waives, to the maximum extent permitted by law, any objection, including any objections based on forum non conveniens, to the bringing of
any such proceeding in such jurisdictions.

[SIGNATURE PAGE FOLLOWS]

 

  

  

  

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed and its corporate seal to be impressed hereon and attested by its Secretary or an Assistant Secretary.

 

	Dated:	 	 	 	 
	 	 	 	THERAPEUTICSMD, INC.	 
	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	By:	 	 
	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

 

	Attest:	 	 	 
	 	 	 	 
	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

      

  

  

  

      

EXHIBIT 1

 

SUBSCRIPTION FORM

 

[To be executed only upon exercise of Warrant]

 

The undersigned registered owner of this Warrant irrevocably exercises this Warrant for the purchase of ______ Shares of Common Stock of TherapeuticsMD, Inc., and herewith makes payment therefor in cash or by check or bank draft made payable to the Company, all at the price and on the terms and conditions specified in this Warrant and requests that certificates for the shares of Common Stock hereby purchased (and any securities or other property issuable upon such exercise) be issued in the name of and delivered to _____________ whose address is _________________ and, if such shares of Common Stock shall not include all of the shares of Common Stock issuable as provided in this Warrant, that a new Warrant of like
tenor and date for the balance of the shares of Common Stock issuable hereunder be delivered to the undersigned.

 

 

	 	 	 
	 	
(Name of Registered Owner)

	 
	 	 	 
	 	 	 
	 	(Signature of Registered Owner)	 
	 	 	 
	 	 	 
	 	(Street Address)	 
	 	 	 
	 	 	 
	 	(City)           (State)                                       (Zip Code)	 

 

 

NOTICE:                      The signature on this subscription must correspond with the name as written upon the face of the within Warrant in every particular, without alteration or enlargement or any change whatsoever.

 

  

  

  

 

EXHIBIT 2

 

ASSIGNMENT FORM

 

FOR VALUE RECEIVED the undersigned registered owner of this Warrant hereby sells, assigns and transfers unto the Assignee named below all of the rights of the undersigned under this Warrant, with respect to the number of shares of Common Stock set forth below:

 

Name and Address of Assignee                                                                           No. of Shares of

 

Common Stock

 

and does hereby irrevocably constitute and appoint ________________________ attorney-in-fact to register such transfer on the books of TherapeuticsMD, Inc. maintained for the purpose, with full power of substitution in the premises.

 

 

	 	Dated:	 	 	Print Name:	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Signature:	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Witness:	 	 

 

 

NOTICE:                      The signature on this assignment must correspond with the name as written upon the face of the within Warrant in every particular, without alteration or enlargement or any change whatsoever.bblu_ex10-1.htm

Exhibit 10.1

RETAIL PETROLEUM/CONVENIENCE STORE ENERGY EFFICIENCY JOINT DEVELOPMENT AGREEMENT

THIS AGREEMENT (the “Agreement”) by, between and among G&N Holdings, LLC dba Ecore Technology, a Nevada corporation (“EC”) with principal offices at 25550 Hawthorne Blvd, Torrance, CA 90505, General Supply & Services, Inc. d/b/a Gexpro, a Delaware corporation (“GEXPRO”) with principal offices at 1000 Bridgeport Avenue, 5th Floor, Shelton, CT 06494, Castrovilla, Inc. a California corporation (“CI") with principal offices located at 253 Polaris Avenue, Mountain View, California 94093 (d/b/a Blue Earth Energy Management Services also known as ‘BEEMS”), Blue Earth Inc., a Nevada corporation, (“BE”), with principal offices at 2298 Horizon Ridge Pkwy, Suite 205, Henderson, NV 89052 , collectively the “Parties” and individually a “Party”

WHEREAS, The Parties individually have an interest in energy efficiency (“EE”) programs for retail petroleum/convenience stores, and

WHEREAS, CI, BE, EC and GEXPRO have developed an “ideal” gas station & convenience store energy program to be marketed under the eecoStationTM to our customers, and

WHEREAS, The Parties desire to work together to market and implement an abbreviated EE program, the “EE Program”, as shown on Schedule A, to retail petroleum/convenience store operators with whom EC has a strong relationship, known as the “Clients” herein: and

WHEREAS, The Parties desire to work together to market and implement the EE Program to Clients that are located in select North American markets (the “Territory”) as specified in this Agreement, with plans to jointly market the EE Program to other gas station owners located outside the initial identified markets; and

WHEREAS, EC has excellent relationships with the clients in the Territory and desires to market the EE Program and EC is prepared to develop a sales force that is reasonably sufficient to market the EE Program in the Territory in accordance with the terms and conditions of this Agreement; and

WHEREAS, GEXPRO is a leading supplier of EE products, with the capabilities to evaluate, select and use its volume purchasing power to provide the products being used in the EE Program and desires to do so in accordance with the terms of this Agreement; and

WHEREAS, CI is engaged in the business of providing EE services and products to small businesses and commercial customers through high energy efficiency programs and desires to participate as the service provider for the EE Program in accordance with this Agreement; and

 

 

  

  

  

WHEREAS, CI is a wholly owned subsidiary of BE and BE desires to facilitate the success of this Agreement, BE will develop a project finance program to fund the EE Program to the Clients in the Territory and for subsequent expansions into extended territories when appropriate and mutually agreed to by the Parties; and

WHEREAS, the Parties desire to provide their best efforts to perform their duties and obligations to insure the success of the EE Program in accordance with the terms and conditions of this Agreement.

NOW, THEREFORE, it is agreed as follows:

1.      EC shall be designated as the authorized, independent representative to sell and promote the EE Program, to the Clients in the Territory. The EE Program is identified in Schedule A hereto, subject to amendment by the Parties.

2.      EC shall devote such time, energy and skill on a regular and consistent basis as is reasonably necessary to sell and promote the EE Program in the Territory consistent with the sales goals and timelines as stated herein during the Term (defined below) of this Agreement. For each contract for the performance of CI’s services as arranged by EC under this Agreement (the “Customer Contracts”), subject to the earlier termination thereof, EC shall be entitled to a commission as specified in Schedule C.

3.      GEXPRO shall be designated as the authorized provider of products for the EE Program to the Clients in the Territory. The products, to the extent reasonably possible, shall be approved for utility rebates in the Territory.  Sales of products pursuant to this Agreement shall be governed by GEXPRO’s standard terms and conditions of sale in effect at the time of the sale.

 

 

4.      GEXPRO shall endeavor to order and ship products on a timely basis so as to insure the products are available for installation on timelines consistent with goals and timelines as stated herein. The Parties acknowledge that GEXPRO orders products on the basis of signed orders; therefore, the Parties shall endeavor to maintain enough orders in the pipeline to enable regular, consistent installation by the installation party.

5.      CI shall be designated as the authorized provider of the services required to install, service and maintain the EE Program for Customer Contracts in the Territory. CI shall be responsible for developing the form of the contracts, ordering of products from GEXPRO, billing and collecting payments from Clients for services provided under the EE Program, paying GEXPRO for the products and paying EC the commissions as specified in Schedule C. CI shall consult with EC and GEXPRO as appropriate on the preparation of contracts, and other details in the EE Program as may be appropriate. The other Parties may make supplemental purchases of products required to implement the EE Program consistent with the goals and timelines as specified herein, as may be required and mutually agreed to by the Parties.

 

 

  

2

  

6.       CI shall endeavor to provide all services to implement the EE program in a professional timely manner so as to create a favorable impression of the EE Program and the Parties.

7.      BE shall be the authorized provider of project financing for the EE Program. BE shall select financing partners and the form of the financing as it deems appropriate in its sole discretion. BE shall use its best efforts to insure that sufficient funds to finance all Customer Contracts consistent with the goals and timelines of this Agreement as specified herein.

8.          BE and the other Parties to this Agreement will cooperate in providing information that may be required to achieve funding sufficient to finance the EE Program Customer Contracts.

9.      The Parties agree and acknowledge that each party has the right to provide the services and products for this EE Program, for these Clients in the Territory. However, the Parties also agree that if any Party is failing to perform its duties pursuant to this Agreement on a timely basis to meet or exceed the goals and timelines shown in Section 10 herein, The Parties shall mutually determine who and how to give such Party assistance so that the EE Program implementation can proceed on schedule.

10.      The Parties agree and acknowledge that time is an important part of this Agreement and that the success of this Agreement depends upon the Parties achieving their duties on a coordinated time line. Therefore the table in Schedule E defines the initial goals and timelines, which may be adjusted from time to time by mutual agreement of the Parties. It is the goal of the Parties to accelerate the timelines and all Parties will use their best efforts to accelerate implementation.

11.      The Parties acknowledge that each Party has a core business and that nothing in this Agreement shall prohibit each Party from selling products and services to third Parties, as is currently their business practice. This Agreement specifically governs the working relationship of the Parties for the Clients in the Territory and shall not hinder any of the Parties other business activities. Schedule D provides a general summary of the normal business activities of each Party. The CI/BE portion of Schedule D includes some general comments about BE’s eecoStationTM project for BE customers. The discussions and commitments to expand the EE Program offerings are hereby included in this Agreement.

12.      Term; Termination.

(a)           Term.  This Agreement commences as of the date hereof and continues until the fifth (5) anniversary of the date hereof (the “Term”), unless earlier terminated in accordance with Section 3(b) below.  This Agreement may be extended or renewed by mutual written agreement of the Parties.

 

 

  

3

  

(b)           Early Termination.  Any Party may withdraw from this Agreement at any time during the Term, with or without cause, upon 180 days’ prior written notice to the other Parties. The remaining Parties will determine a replacement party, at their sole mutual discretion.

(c)           Return of Materials.  All Parties agree that upon termination or expiration of this Agreement, or earlier upon written request of a Party, shall return to the other Parties their respective Confidential Information (as defined below) or any other materials or items created in connection with, or relating to the EE Program.  Parties returning confidential information shall not retain any copy of such materials or items except for one (1) copy to be retained by Legal.  In addition, any other items of personal property provided shall be immediately returned to the appropriate Parties upon expiration or termination of this Agreement, or as requested by a Party.

13.      The Parties Representations and Warranties.

(a)           Best Efforts.  Each Party represents and warrants to the other Parties that they shall use its best efforts in performing their respective duties and that their duties shall be carried out in a professional manner.

(b)           No Conflicting Agreements.  The Parties represent and warrant each other Party that they are not now a party to any other agreement, or be under any obligation to or restriction by any third party, which prevents them from entering into this Agreement or which adversely affects this Agreement for these Client in this Territory.

(c)           Compliance.                      The Parties agree that in connection with the sale of the their Services or products, they will comply fully with all applicable laws, rules and regulations.

14.      Each Party agrees that all confidential information of another Party shall remain the property of the originating Party. The Parties agree that at all times during the term of this Agreement and thereafter, Each Party agrees that it will not use, reproduce, commercialize, disclose or otherwise transfer or transmit any Confidential Information (as defined below) of the Company, except in connection with the performance of their duties and responsibilities pursuant to this Agreement. "Confidential Information" means any and all trade secrets, technical information, computer programs, databases, codes, formulas, methods, ideas, specifications, passwords, business plans, marketing, sales and pricing strategies, customer lists, customer information, database information, business relationships, telephone numbers or addresses, supplier lists, patented or proprietary information, forms, information regarding products, equipment, procedures, raw materials, operations, systems, methods, financing, services, know-how, computer and any other processed or collated data, computer programs, pricing, marketing, media and advertising data or other confidential information of Each Party, and any information or other material provided by a Parties customers to the other Parties for use in providing Services on behalf of their customers.

 

 

  

4

  

Notwithstanding the provisions the above, the receiving party shall not be subject to any restriction hereunder with respect to any Confidential Information if such Confidential Information is or was: (a) in the public domain at the time of disclosure or thereafter becomes generally known to the public through no fault of the receiving party; (b) independently developed by the receiving party without use of the Confidential Information disclosed by the disclosing party; (c) furnished to others by the disclosing party without restriction on disclosure; or (d)  or becomes known to the receiving party through other sources free of any confidentiality restriction.  Any and all restrictions or obligations of confidentiality with respect to Confidential Information provided hereunder will expire three (3) years after the date of disclosure.   If either party is requested or required (by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand, or similar legal process) to disclose any Confidential Information of the other party or to make any other disclosure prohibited by this Agreement, such party agrees to provide the disclosing party with prompt notice of each such request, to the extent practicable, so that the disclosing party may seek an appropriate protective order or waive compliance with the provisions of this Agreement or both.  If, absent the entry of a protective order or the receipt of a waiver under this Agreement, a party is, in the opinion of its counsel, legally compelled to disclose Confidential Information of the other party, such party may disclose such Confidential Information to the persons and to the extent required without liability under this Agreement.

15.      Intentionally left blank.

16.      This Agreement shall not create a partnership, joint venture, agency, employer/employee or similar relationship among the Parties. EC shall be an independent contractor providing services to CI. CI shall not be required to withhold any amounts for state or federal income tax or for FICA taxes from sums becoming due to EC under this Agreement. EC employees and associates shall not be considered an employee of CI and shall not be entitled to participate in any plan, arrangement or distribution by CI pertaining to or in connection with any pension, stock, bonus, profit sharing or other benefit extended to CI's employees. EC shall be free to utilize their time, energy and skill in such manner, as EC deems advisable to the extent that he is not otherwise obligated under this Agreement. GEXPRO shall be a supply vendor to CI as specified in this Agreement.

17.      Each Party shall bear any and all costs or expenses incurred that Party to perform his obligation under this Agreement, including, but not limited to, vehicle insurance, travel expenses and telephone expenses.

18.      The rights and duties of each Party under this Agreement are personal and may not be assigned or delegated without prior written consent of the other Parties.

19.      No Party is authorized to extend any warranty or guarantee or to make representations or claims with respect to another Party’s services or products without express written authorization from the appropriate Party.

 

 

 

  

5

  

20.      Each Party hereby indemnifies the other Parties and their officers, directors, shareholders, employees, affiliates, subsidiaries, agents and assigns, and holds the other Parties, and their officers, directors, shareholders, employees, affiliates, subsidiaries, agents and assigns, harmless from, any losses, liabilities, obligations, damages, costs or expenses (including without limitation, reasonable attorneys’ fees) resulting from or relating to any negligent acts or omissions by a Party in performing their respective Services under this Agreement, or any breach of any representation hereunder of each Party or any owner, officer, director or employee of each Party.  This Section 19 shall survive termination or expiration of this Agreement.

21.      Choice of Law and Jurisdiction.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of California applicable to contracts made and to be wholly performed within such state.  Each Party hereby submits to the exclusive jurisdiction of the federal and state courts located in the State of California, County of Los Angeles, CA.  Each Party acknowledges that such courts constitute a convenient forum.  Service of process in any action brought in such courts shall be sufficient if given by notice made in accordance with Section 12 below.  This Section 20 shall survive termination or expiration of this Agreement.

22.      Notice.  Except as otherwise provided herein, all notices that either party

is required or may desire to give the other party hereunder shall be in writing and shall be sufficiently given if (i) delivered in person, (ii) sent by registered or certified mail, postage prepaid, return receipt requested or (iii) delivered by prepaid overnight courier (e.g. Federal Express, U.S. Post Office Express Mail, United Parcel Service), or (iv) sent via email and confirmed by U.S. Mail.  All such notices shall be addressed to each party as follows:

	
  

	
To: eCORE Technology:

G&N Holdings, LLC dba eCORE Technology

25550 Hawthorne Blvd, Suite 207

Torrance, CA  90505

Attn: John Neuroth

Email:  jneuroth@gnholdingsllc.com

	
  

	
To CI:

Castrovilla, Inc.

253 Polaris Avenue

Mountain View, California 94043

Attn:  John Pink

Email: jpink@blueearthems.com

To BE:

Blue Earth Inc

2298 Horizon Ridge Parkway, Suite 205

Attn: Johnny R. Thomas

jthomas@blueearthinc.com

 

 

  

6

  

	
  

	
with a copy to:

Elliot H. Lutzker

Davidoff Malito & Hutcher LLP

605 Third Avenue

New York, New York 10158

Email: ehl@dmlegal.com

	
  

	
To GEXPRO:

General Supply & Services, Inc.

1000 Bridgeport Avenue

5th Floor

Shelton, CT 06484

Attention: Legal

All notices shall be deemed given when received in the case of delivery in person or by prepaid overnight courier, or within three (3) days of posting in the United States mail in case of notice by registered or certified mail, postage prepaid, return receipt requested.

23.      Assignment.  No Party may assign this Agreement or any rights or obligations hereunder, without the prior written consent of the other Parties; provided, however, that CE/BE may assign this Agreement without the other Parties prior consent to a successor entity by way of merger, sale, reorganization or otherwise, or to any other person or entity in which CI/BE or any of their shareholders has an ownership interest or other affiliation.

24.      Entire Agreement.  This Agreement constitutes the entire agreement with respect to the subject matter hereof, supersedes any prior or contemporaneous agreement among or between the Parties, whether written or oral, with respect to the subject matter hereof and may be modified or amended only by a writing signed by the Parties hereto.

25.      Injunctive Relief and Other Remedies.  In the event of a breach or threatened breach of any of the provisions of this Agreement by any Party, the other Parties shall be entitled to injunctive relief against the offending Party.  Nothing herein shall be construed as prohibiting any Party from pursuing any other remedies available to it, legal or equitable, for such breach or threatened breach, including the recovery of damages from any Party.  This Section 23 shall survive termination of this Agreement.

26.      Severability.  Any provision of this Agreement which is held to be prohibited, invalid or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition, invalidity or unenforceability without invalidating the remaining provisions thereof; that any such prohibition, invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction; and that any prohibited, invalid or unenforceable provision shall be deemed, without further action, modified, amended and limited solely to the extent necessary to render the same valid and enforceable.

 

 

  

7

  

27.      Waiver.  A waiver by a Party of any term or condition of this Agreement in any instance shall not be deemed or construed to be a waiver of such term or condition for the future, or of any subsequent breach thereof.  All rights, remedies, undertakings, or obligations contained in this Agreement shall be cumulative and none of them shall be in limitation of any other right, remedy, undertaking or obligation.

28.      Section Headings.  Section headings contained herein are solely for convenience and are not in any sense to be given weight in the construction of this Agreement.

29.      PRESS RELEASES AND OTHER PUBLIC COMMUNICATIONS.  In addition to the other confidentiality obligations under this Agreement, neither party shall make any announcement, take or release any photographs (except for its internal operation purposes for performing the Transaction), or release any information concerning this Agreement or any part thereof or with respect to any negotiation or discussions that may occur between parties or any aspect of their business relationship to any member of the public, press, business entity, or any official body except as required by applicable law, rule, injunction or administrative order, unless prior written consent is obtained from the other parties.

30.      Limitations.  IN FURNISHING ANY INFORMATION OR DATA UNDER THIS AGREEMENT, THE DISCLOSING PARTY MAKES NO WARRANTY, GUARANTEE, OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO ITS ADEQUACY, ACCURACY, SUFFICIENCY OR FREEDOM FROM DEFECT OF ANY KIND, INCLUDING FREEDOM FROM ANY INTELLECTUAL PROPERTY INFRINGEMENT THAT MAY RESULT FROM USE THEREOF.  Neither party shall be liable in damages, of whatever kind, as a result of the other party’s receipt or permissible use under the Agreement, of, or reliance on, any information or data furnished under this Agreement, nor shall either party be liable for indirect, incidental, special or consequential damages for claims arising under this Agreement.

31.      Counterparts.  This Agreement (or the signature pages hereof) may be executed in any number of counterparts; all such counterparts shall be deemed to constitute one and the same instrument; and each of said counterparts shall be deemed an original hereof.

[SIGNATURE PAGE TO FOLLOW]

 

  

8

  

IN WITNESS WHEREOF, the undersigned parties have executed this Agreement as of the date first above written

CASTROVILLA, INC.

By: /s/ John Pink

Name:  John Pink

Title:  President

By: G&N Holdings, LLC dba eCORE Technology

/s/ John C. Neuroth

Name:  John C. Neuroth

Title:   Chief Executive Officer

BLUE EARTH INC.

/s/ Johnny R. Thomas

Name: Johnny R. Thomas

Title: CEO & President

GENERAL SUPPLY & SERVICES, INC.

/s/ Jeffrey Pecoroni

Name: Jeffrey Pecoroni

Title: Energy Team General Manager

 

 

 

 

 

 

  

9

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