Document:

Unassociated Document

    Exhibit
      10.15

    

    UNITED
      STATES DISTRICT COURT

    DISTRICT
      OF MASSACHUSETTS

    

    

    

    
      	 	 	 
	 	
              )

            	 
	
              IN
                RE VASO ACTIVE

            	
              )

            	
              Master
                Docket No. 04-10792-RCL

            
	
              PHARMACEUTICALS,
                INC.

            	
              )

            	
              (Consolidated
                Derivative Action)

            
	
              DERIVATIVE
                LITIGATION

            	
              )

            	 
	 	
              )

            	 
	 	 	 

    

    

    STIPULATION
      AND AGREEMENT OF SETTLEMENT

    

    This
      Stipulation and Agreement of Settlement (this “Stipulation”), dated as of
      September 21, 2005, is entered into by and among Plaintiffs Joseph Rosenkrantz
      and William Pomeroy, derivatively on behalf of nominal Defendant Vaso Active
      Pharmaceuticals, Inc. (“Vaso” or “the Company”), and Defendants BioChemics,
      Inc., John Masiz, Kevin J. Seifert, Stephen G. Carter, Bruce A. Shear, Brian
      J.
      Strasnick, William P. Adams, Robert E. Anderson, Gary Fromm and Joseph
      Frattaroli (“Defendants”). All parties to this Stipulation shall be collectively
      referred to as the “Parties.” 

     

    The
      Parties have reached an agreement to settle the shareholder derivative
      litigation styled
      In
      re Vaso Active Pharmaceuticals, Inc. Derivative Litigation,
      pending
      in the United States District Court for the District of Massachusetts (the
      “Derivative Litigation”), on the terms and conditions set forth in this
      Stipulation, subject to Court approval. This Stipulation is intended by the
      Parties to fully, finally and forever resolve, release, discharge and settle
      any
      and all claims that have been or could have been brought in the Derivative
      Litigation or that relate in any way to the facts or allegations in the
      Derivative Litigation, including but not limited to, claims brought in the
      Delaware Court of Chancery under Civil Action No. 682-N (the “Delaware
      Derivative Litigation”), based on the same facts and circumstances alleged in
      the Massachusetts Derivative Litigation.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    I.

    RECITALS

    WHEREAS:

    A. On
      or
      about April 20, 2004, Joseph Rosenkrantz (“Rosenkrantz”), derivatively on behalf
      of Vaso, brought suit against certain of the Defendants and Vaso in the United
      States District Court for the District of Massachusetts. On or about June 18,
      2004, William Pomeroy derivatively on behalf of Vaso, brought suit against
      certain of the Defendants and Vaso in the United States District Court for
      the
      District of Massachusetts.

     

    B. Both
      lawsuits were subsequently consolidated in the United States District Court
      for
      the District of Massachusetts, under Master Docket No. 04-10792-RCL, defined
      herein as the Derivative Litigation.

     

    C. The
      Plaintiffs filed
      an
      Amended Consolidated Derivative Complaint on March 7, 2005 asserting, among
      other things, claims for breach of fiduciary duties, abuse of control, gross
      mismanagement and unjust enrichment. Defendants filed their Answers to the
      Amended Consolidated Complaint on March 28, 2005 generally denying the
      allegations.

     

    D. All
      Defendants (as defined below) deny any wrongdoing, fault, liability or damage
      to
      Plaintiffs or Vaso, deny that they engaged in any wrongdoing, deny that they
      committed any violation of law, and deny that they acted improperly in any
      way.
      The Defendants further contend that (i) they acted properly at all times,
      discharging their duties with due care and in a manner believed in good faith
      to
      be in the best interests of Vaso, (ii) that they are not liable to Vaso or
      its
      shareholders because they performed their duties in compliance with applicable
      federal and state statutory and common law, including but not limited to the
      business judgment rule, and (iii) that the Derivative Litigation and the
      Delaware Derivative Litigation are without merit.

     

     

    
      
         

      

      
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    E. On
      or
      about September 13, 2004, Douglas Weymouth, derivatively on behalf of Vaso,
      brought the Delaware Derivative Litigation against Defendants and Vaso based
      on
      the same facts and circumstances alleged in the Massachusetts Amended
      Consolidated Derivative Complaint.

     

    F. On
      or
      about November 10, 2004, the Delaware Derivative Action was stayed pending
      resolution of this Derivative Litigation.

     

    G. In
      view
      of the uncertainty and risk of the outcome of any litigation (especially complex
      derivative litigation), the difficulties and substantial distractions,
      especially distractions related to the ongoing operations of Vaso, burdens,
      expenses and length of time necessary to engage in discovery and defend the
      proceeding, possible summary judgment motions, a possible trial, possible
      post-trial motions and possible appeals, and to eliminate the distractions,
      risks, burdens and expenses of further litigation, the Defendants have agreed
      to
      settle the Derivative Litigation.

     

    H. Plaintiffs,
      by and through Plaintiffs’ Counsel, represent that they have conducted and
      completed extensive research and investigation relating to the claims and the
      underlying events and transactions alleged in the Derivative Litigation,
      including review and analysis of various public statements and filings made
      by
      Vaso and its senior officers with the Securities and Exchange Commission,
      analysts’ reports concerning Vaso, and press releases, news articles and other
      media reports concerning Vaso.

     

    I. Plaintiffs
      believe that the claims asserted in the Derivative Litigation have merit.
      However, Plaintiffs and Plaintiffs’ Counsel recognize and acknowledge the
      expense and length 

     

     

    
      
         

      

      
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    of
      continued proceedings necessary to prosecute the Derivative Litigation against
      the Defendants through trial and appeal. Plaintiffs and Plaintiffs’ Counsel also
      have taken into account the uncertain outcome and the risk of any litigation,
      especially complex actions such as the Derivative Litigation, as well as the
      difficulties, expense and delays inherent in such litigation and the current
      financial condition of Vaso. Plaintiffs and Plaintiffs’ Counsel also are mindful
      of the inherent problems of proof of, and defenses to, the violations asserted
      in the Derivative Litigation, especially in light of the lack of direct evidence
      of fraud or bad faith on the part of any Defendant.

     

    J. The
      Parties have voluntarily agreed, after consultation with competent legal
      counsel, to settle the Derivative Litigation and put the Released Claims (as
      defined below) to rest, finally and forever. This Stipulation shall not be
      construed or deemed to be a concession by Plaintiffs of any infirmity in the
      claims asserted in the Derivative Litigation or as a concession by any or all
      of
      the Defendants of any wrongdoing, fault, liability or damage to Plaintiffs,
      to
      Vaso, or to any other person or entity, or any infirmity in any defense that
      any
      or all Defendants asserted or could have asserted.

     

    K. The
      Parties and their counsel believe that the settlement embodied in this
      Stipulation is fair, reasonable and adequate and in the best interests of Vaso
      and its stockholders.

     

    NOW,
      THEREFORE, IT IS HEREBY STIPULATED AND AGREED by and among the Parties that,
      subject to Court approval, any and all claims that have been or could have
      been
      brought in the Derivative Litigation or that relate in any way to the facts
      or
      allegations in the Derivative Litigation, including but not limited to claims
      brought in the Delaware Derivative Litigation, shall be finally and fully
      compromised, settled and released as to each of the Defendants and Vaso, upon
      and subject to the terms and conditions of this Stipulation as
      follows.

     

     

    
      
         

      

      
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    II.

    DEFINITIONS

     

    1. For
      purposes of this Stipulation, and in addition to the terms defined above, the
      following definitions apply:

     

    a. “Board”
      means the Board of Directors of Vaso.

     

    b. “Court”
      means the United States District Court for the District of Massachusetts.

     

    c. “Defendants”
      means nominal Defendant Vaso and Defendants BioChemics, Inc., John Masiz, Kevin
      J. Seifert, Stephen G. Carter, Bruce A. Shear, Brian J. Strasnick, William
      P.
      Adams, Robert E. Anderson, Gary Fromm and Joseph Frattaroli.

     

    d. “Future
      Changes” means those corporate governance changes set out in Article III of this
      Stipulation.

     

    e. “Plaintiffs”
      means Joseph Rosenkrantz and William Pomeroy, derivatively on behalf of
      Vaso.

     

    f. “Plaintiffs’
      Counsel” means George E. Barrett, Douglas S. Johnston, Jr. and Timothy L. Miles
      of Barrett, Johnston & Parsley and Jeffrey Fink of Robbins Umeda & Fink,
      LLP.

     

    g. “Released
      Claims” means collectively any and all claims, debts, demands, rights or causes
      of action or liabilities whatsoever (including, but not limited to, any claims
      for damages, interest, attorneys’ fees, expert or consulting fees, and any other
      costs, expenses or liability whatsoever), whether based on federal, state,
      local, statutory or common law or any other law, rule or regulation, whether
      fixed or contingent, accrued or unaccrued, liquidated or unliquidated, at law
      or
      in equity, matured or unmatured, whether derivative or individual in nature,
      whether asserted in federal or state court, arbitration or other forum domestic
      or foreign, 

     

     

     

    
      
         

      

      
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    including
      both known claims and Unknown Claims (as defined herein) held at any point
      from
      the beginning of time to the date of final approval of this Stipulation, which
      have been or could have been asserted by Plaintiffs or any Vaso shareholder
      on
      Vaso’s behalf in the Derivative Litigation, the Delaware Derivative Litigation
      or in any forum, including but not limited to (i) the facts, matters,
      transactions, conduct, omissions or circumstances alleged, or which could have
      been alleged, in the Derivative Litigation, the Delaware Derivative Litigation
      or in any forum, and (ii) the defense or settlement of the Derivative Litigation
      or the Delaware Derivative Litigation; provided, however, that “Released Claims”
shall not be deemed to include any existing statutory or contractual
      indemnification rights and obligations between Defendants on one hand and Vaso
      on the other hand, nor to include any existing claims that Vaso or the
      Defendants may have against Vaso’s former attorneys.

     

    h. “Released
      Parties” means the Defendants, including nominal Defendant Vaso, and each of
      their respective present, former and future parents, subsidiaries, divisions,
      affiliates, employees, members, shareholders, partners, partnerships,
      principals, officers, directors, attorneys, advisors, trustees, administrators,
      auditors, accountants, fiduciaries, consultants, representatives, and agents
      of
      each of them, and the predecessors, estates, heirs, executors, trusts, trustees,
      administrators, successors and assigns and any person or entity which is or
      was
      related to or affiliated with any of the foregoing or in which any of the
      foregoing persons and entities has or had a controlling interest and the present
      and former employees, members, shareholders, partners, partnerships, principals,
      officers and directors, attorneys, advisors, trustees, administrators,
      fiduciaries, consultants, representatives, accountants and auditors, insurers,
      and agents of each of them.

     

     

    
      
         

      

      
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    i. “Settlement”
      means the settlement of the Derivative Litigation agreed to by and among the
      Parties and embodied in this Stipulation.

     

    j. “Stipulation”
      means this Stipulation and Agreement of Settlement.

     

    k. “Unknown
      Claims” means any and all Released Claims that Plaintiffs do not know or suspect
      to exist in their favor upon release of the Released Claims which, if known
      by
      any of them, may have affected their decision with respect to the Settlement.
      With respect to any and all Released Claims, the Parties stipulate and agree
      that Plaintiffs expressly waive, and by operation of the Final Judgment of
      Dismissal with Prejudice, shall be deemed to have waived, any and all
      provisions, rights and benefits conferred by any law, rules or regulations
      of
      any state or territory of the United States or any other country, or principle
      of common or civil law, that in any way would restrict or limit the scope of
      this Stipulation whether such restriction and/or limitation is similar,
      comparable, or equivalent to Cal. Civ. Code § 1542, which provides:

     

    A
      GENERAL
      RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT
      TO
      EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY
      HIM
      MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

    

    Plaintiffs
      acknowledge that the inclusion of Unknown Claims in the definition of Released
      Claims was separately bargained for and was a key element of the
      Settlement.

     

    l. "Delaware
      Derivative Counsel" means William B. Federman of Federman & Sherwood and
      Joseph A. Rosenthal of Rosenthal, Monhait, Gross & Goddess.

     

    k. "Delaware
      Derivative Plaintiffs" means Douglas Weymouth, derivatively on behalf of
      Vaso.

     

     

    
      
         

      

      
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    III.

    CORPORATE
      GOVERNANCE CHANGES

     

    1. Vaso
      will
      be implementing, upon final approval by the Court and dismissal of the
      Derivative Litigation and the Delaware Derivative Litigation and as soon as
      practical thereafter, or in certain instances previously has implemented,
      certain corporate governance changes as a direct and substantial result of
      the
      prosecution of the Derivative Litigation. These corporate governance changes,
      discussed in paragraph 2 of this Article III, shall be implemented by and
      applicable to the Board.

     

    2. The
      following corporate governance changes represent future changes that will be
      implemented as soon as practical, but in no event sooner than approval of this
      Stipulation by the Court and dismissal with prejudice of the Derivative
      Litigation and the Delaware Derivative Litigation, by Vaso as a direct and
      substantial result of the prosecution and/or settlement of the Derivative
      Litigation:

     

    A. The
      Board
      of Directors

    

    1. Unless
      otherwise specified herein, at least one-half of the Board and two-thirds of
      all
      Committees shall be comprised of “independent directors,” as described
      herein.

    

    B. Director
      Independence

    

    The
      Board’s standard for independence shall be the standard used by the American
      Stock Exchange in determining independence of directors on Audit Committees.
      To
      be deemed “independent” in any calendar year, a director will have to satisfy
      the following qualifications. He or she:

    

    1. Has
      not
      been employed by the Company or its subsidiaries or affiliates in an executive
      capacity within the last five calendar years;

    

    2. Has
      not
      received, during the current calendar year or any of the three immediately
      preceding calendar years, remuneration, directly or indirectly, other than
      de
      minimis remuneration, as a result of service as, or being affiliated with an
      entity that serves as (a) an advisor, consultant, or legal counsel to the
      Company or to a member of the Company’s senior management; (b) except as
      provided herein, a significant supplier of the Company; or (c) except as
      provided herein, a significant customer of the Company;

     

     

    
      
         

      

      
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    3. Has
      no
      personal service contract(s) with the Company, or any member of the Company’s
      senior management;

    

    4. Is
      not an
      employee or officer with a not-for-profit entity that receives significant
      contributions from the Company;

    

    5. During
      the current calendar year or any of the three immediate preceding calendar
      years, has not had any business relationship with the Company for which the
      Company has been required to make disclosure under Regulation S-K of the SEC,
      other than for service as a director or for which relationship no more than
      de
      minimis remuneration was received in any one such year;

    

    6. Is
      not
      employed by a public company at which an executive officer of the Company serves
      as a director;

    

    7. Has
      not
      had any of the relationships described in subsections 1-6 above with any
      affiliate of the Company;

    

    8. Is
      not a
      member of the immediate family of any person described in
      subsections

    1-4
      above;

    

    9. Is
      not
      employed as an executive of another entity where any of the Company’s executives
      serve on that entity’s Compensation Committee; and

    

    10. Does
      not
      have beneficial ownership interest of five percent or more in an entity (other
      than BioChemics, Inc. and suppliers, distributors and sales agents) that has
      received remuneration, other than de minimis remuneration, from the Company,
      its
      subsidiaries, or affiliates. De minimis remuneration is defined as (a) direct
      remuneration of $60,000 or less received from the Company, its subsidiaries,
      or
      affiliates during a calendar year (other than compensation); or (b) indirect
      remuneration paid to an entity if such remuneration does not exceed the lesser
      of $5 million
      or one percent of the gross revenues of the entity and did not directly result
      in an increase in the compensation received by the director from that
      entity.

    

    C. Responsibilities
      of the Independent Directors

    

    1. The
      independent directors shall meet separately from the rest of the Board of
      Directors at least once a year.

    

    2. At
      the
      inaugural meeting of the independent directors and at the annual meeting of
      the
      independent directors, the independent directors shall elect a Lead Independent
      Director.

    

    3. The
      Lead
      Independent Director shall be responsible for coordinating the activities of
      the
      independent directors. In addition to the duties of all Board members (which
      shall not be limited or diminished by the Lead Independent Director’s role), the
      specific responsibilities of the Lead Independent Director are as
      follows:

     

     

     

    
      
         

      

      
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    (a) to
      advise
      the Chairman of the Board as to an appropriate schedule of Vaso Board meetings,
      seeking to ensure that the independent directors can perform their duties
      responsibly while not interfering with the flow of Vaso’s
      operations;

    

    (b) to
      provide the Chairman of the Board with input as to the preparation of agendas
      for the Board and Committee meetings;

    

    (c) to
      advise
      the Chairman of the Board as to the quality, quantity, and timeliness of the
      flow of information from Vaso’s management that is necessary for the independent
      directors to effectively and responsibly perform their duties, and although
      Vaso’s management is responsible for the preparation of materials for the Board,
      the Lead Independent Director may specifically request the inclusion of certain
      material;

    

    (d) to
      recommend to the Chairman of the Board the retention of consultants who report
      directly to the Vaso Board;

    

    (e) to
      assist
      the Board and Vaso’s officers in assuring compliance with and implementation of
      the Company’s corporate governance policies and be principally responsible for
      recommending revisions to the corporate governance policies;

    

    (f) to
      coordinate and develop the agenda for, and moderate executive sessions of,
      Vaso’s Board’s independent directors, and act as principal liaison between the
      independent directors and the Chairman of the Board on sensitive
      issues;

    

    (g) to
      evaluate, along with the members of the Compensation Committee and the full
      Vaso
      Board, the CEO’s performance and meet with the CEO to discuss the Board’s
      evaluation; and

    

    (h) to
      recommend to the Chairman of the Board the membership of the various Vaso Board
      Committees, as well as selection of the Committee Chairs.

    

    D. Board
      Committees

    

    1. The
      Chairman of the Board of Directors shall not be the CEO of the Company. However,
      the Chairman of the Board of BioChemics, Inc., Vaso’s parent, or any BioChemics,
      Inc. director also may be the Chairman of the Board of Vaso or a Director of
      Vaso. The Chairman of the Board must meet the definition of “independent” as
      described herein.

    

    2. The
      Company’s by-laws should provide for annual election of the non-executive
      chairman, with a maximum tenure of six years.

    

    3. All
      members of the Board of Directors shall serve for no more than ten years from
      the date of entry of the Final Judgment of Dismissal.

    

    E. Compensation
      Committee

     

     

    
      
         

      

      
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    1. The
      Compensation Committee shall set annual and long-term performance goals for
      the
      CEO. The Compensation Committee shall meet annually to evaluate the CEO’s
      performance against such goals and determine compensation adjustments based
      on
      whether these goals have been achieved.

    

    2. The
      Compensation Committee shall meet at least once each calendar year in executive
      session, without the CEO.

    

    3. The
      Compensation Committee shall adopt, with Board of Directors’ approval, a
      resolution setting forth the following compensation principles:

    

    (a) Compensation
      arrangements shall emphasize pay for performance and encourage retention of
      those employees who enhance the Company’s performance.

    

    (b) Compensation
      arrangements shall promote ownership of the Company’s stock to align the
      interests of management, directors and stockholders.

    

    (c) In
      approving compensation, the recent compensation history of the executive,
      including special or unusual compensation payments, shall be taken into
      consideration.

    

    (d) Cash
      incentive compensation plans for senior executives shall link pay to achievement
      of financial goals set in advance by the Compensation Committee.

    

    (e) The
      Compensation Committee shall review annually the compensation of
      directors.

    

    (f) The
      granting of options for senior executives and cash compensation shall be based
      on the performance of Vaso in obtaining success in long term goals, including
      an
      increase in shareholders’ equity.

    

    4. The
      Compensation Committee shall publish a report annually in the Company’s Proxy
      Statement setting forth their justification for their compensation
      determinations for the CEO and CFO. This Report should also include a discussion
      of the Compensation Committee’s compensation principles discussed in the
      preceding paragraph.

    

    F. Audit
      and
      Oversight Committee

    

    1. The
      Board
      of Directors shall adopt a resolution broadening the mandate of the Audit
      Committee to create the Audit and Oversight Committee, which Committee shall
      perform the following functions in addition to the functions the Audit Committee
      currently performs:

    

    (a) In
      order
      to ensure that appropriate management and supervision is being afforded to
      significant actual and potential litigation claims, the Audit and Oversight
      Committee will have direct access to and meet as needed with the Risk Compliance
      Officer, without Company management present, as appropriate, who in turn will
      meet with the management employees responsible for overseeing litigation the
      Company is involved in; and

     

     

    
      
         

      

      
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    (b) The
      Audit
      and Oversight Committee will regularly report all significant findings to the
      entire Board and relay information concerning all material aspects of all
      litigation the Company is involved in with sufficient detail to allow the Board
      to provide meaningful oversight.

    

    2. The
      Audit
      and Oversight Committee shall have at least one member with an accounting
      background.

    

    3. The
      Audit
      and Oversight Committee shall establish and enforce a policy that any
      independent auditor responsible for auditing Vaso’s financial statements shall
      not provide any consulting services to Vaso absent prior written consent of
      the
      Audit & Oversight Committee.

    

    4. The
      Audit
and
      Oversight
      Committee should seek out all feasible alternatives for improving transparency
      and for verifying compliance with the Company’s ethics pledge.

    

    5. The
      Audit
      and Oversight Committee must approve all related party
      transactions.

    

    G. Corporate
      Governance Committee

    

    1. The
      Board
      shall adopt a resolution creating a Corporate Governance Committee. Each
      director, upon appointment, shall complete a course of introduction to the
      Company, either provided or approved by the Corporate Governance Committee.
      In
      addition, every director shall annually complete refresher training relating
      to
      accounting, disclosure, governance, compensation and/or industry developments,
      in accordance with guidelines to be set by the Corporate Governance
      Committee.

    

    2. The
      Corporate Governance Committee shall meet with each qualified prospective new
      Board nominee and then shall recommend whether such individual should be
      nominated for membership to the Board. Any prospective new Board nominee
      recommended by any shareholder shall be considered by the Corporate Governance
      Committee. The decision on whether to recommend such person to the Board shall
      be disclosed to shareholders after a full review by the current Board. Potential
      disqualifying conflicts of interest to be considered shall include:

     

    (a) Interlocking
      directorships; and

    

    (b) Substantial
      business, civic and/or social relationships with other members of the Board
      that
      could impair the prospective Board member’s ability to act independently from
      the other Board members.

    

    3. The
      performance of the non-executive chairman shall be evaluated each year by the
      Board. Where the chairman is not sufficiently active or successful in providing
      meaningful leadership for the Board, he or she should be replaced. The By-Laws
      shall provide for an annual election of the non-executive chairman by secret
      ballot. The vote shall be by the entire Board 

     

     

    
      
         

      

      
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    commencing
      on the anniversary of the final resolution of the Derivative Litigation. In
      the
      event that a “no confidence” vote is reached by a majority of the Board (the
      chairman not voting), the Corporate Governance Committee, acting pursuant to
      its
      nominating powers, shall nominate, within three months, at least three
      candidates to be voted upon by the entire Board. In addition, the nominations
      shall include any candidate proposed by any shareholder with a 5% or more voting
      interest. 

    

    4. The
      Corporate Governance Committee shall consist of not fewer than three members,
      each of whom shall possess expertise in governance issues or have substantial
      leadership experience.

    

    5. The
      By-Laws shall set forth the Corporate Governance Committee’s role and
      responsibilities, which should incorporate the following functions:

    

    (i) nominating
      individuals to serve on the Board or its committees (or as a committee
      chairman);

    

    (ii)
      recommending to shareholders compensation levels for the Board;

    

    (iii)
      recommending changes in the duties and responsibilities of committees;
      and

    

    (iv)
      overseeing all proposed amendments to the Articles, By-Laws, governance
      guidelines or committee charters.

    

    6. The
      Board
      shall establish a formal charter for the Corporate Governance
      Committee.

    

    7. The
      By-Laws shall require the Corporate Governance Committee to meet not less than
      four times per year.

    

    H. Shareholder
      Suffrage

    

    1. Shareholders
      with an aggregate 5% of
      shares
      outstanding shall be permitted to nominate a candidate for director, with the
      requirement that any such nominee, if not accepted as a nominee of the Board
      of
      Directors, will appear on Vaso’s Proxy as a candidate with the designation
“Shareholder Nominated”. The candidate must provide Vaso with his consent to
      serve, must consent to a full credit and background check by Vaso, and must
      complete a Director and Officer Questionnaire; the nominating shareholder and
      the nominee must disclose to Vaso all dealings between them.

    

    2. Shareholders
      with an aggregate 5% of
      shares
      outstanding shall be permitted to call a special meeting of shareholders;
      and

    

    3. Subject
      to amendment of Vaso’s Articles of Incorporation, a simple majority of votes of
      the Class A and B shareholders voting together at any annual or special meeting
      shall have the power to remove a director, with or without cause.

     

     

    
      
         

      

      
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    4. The
      Board
      of Directors shall be prohibited from amending or repealing any By-Law
      provisions adopted pursuant to this Settlement.

    

    I.     Stock
      Options

    

    For
      a
      period of at least 5 years,
      no
      options issued before the date of entry of the Final Judgment of Dismissal
      shall
      be repriced at a lower exercise price without prior shareholder approval. All
      plans for granting of options must be approved by the Company’s stockholders.
      The number of shares granted in relation to each option provided each year
      to
      each non-employee director pursuant to the Company’s 2003 Non-Employee Director
      Compensation Plan shall be limited to no more than 50,000 shares, subject to
      full anti-dilution protection.

    

    
      	 	
              J.

            	
              Creation
                of an Insider Trading Policy

            

    

    

    Vaso
      shall adopt an insider trading policy. The policy shall be signed by each
      executive officer and director. The policy shall include penalties, including
      termination of employment for any substantive violation of the policy, e.g.,
      improper trading or tipping (as opposed to procedural, e.g., late reporting
      of
      transactions). Substantive violations of the policy shall be reportable by
      the
      Company to the SEC.

    

    K.     Strict
      Scrutiny of Related Party Transactions

    

    Vaso
      shall not make strategic equity investments in or enter into material contracts
      (defined as full value for service or products exceeding $50,000) with companies
      in which a director or executive officer has an ownership interest of 2% or
      more
      absent the approval of the Corporate Governance and Audit
      Committees.

    

    L.     Time
      Limitations

    

    The
      foregoing corporate governance changes shall expire or terminate after three
      years of any class of Vaso’s securities being listed on the Nasdaq Stock Market,
      Inc. or a registered securities exchange, unless, in order to qualify for a
      listing on Nasdaq or the Exchange, the provision must be eliminated or modified,
      in which case Vaso shall be permitted to do so.

    

    IV.

    RELEASES
      AND ENTRY OF FINAL JUDGMENT OF DISMISSAL

     

    1. The
      obligations incurred in this Stipulation shall be in full and final disposition
      of the Derivative Litigation, the Delaware Derivative Litigation and any and
      all
      Released Claims against any and all Released Parties.

     

     

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    2. Plaintiffs,
      any other stockholders of Vaso and Vaso, including their representatives, heirs,
      executors, administrators, trustees, estates, shareholders, predecessors,
      successors, partners, affiliates, agents and assigns, and any persons they
      represent, with respect to all Released Claims, fully and finally release,
      settle, relinquish and forever discharge, and shall forever be enjoined from
      prosecuting, and covenant not to prosecute in any forum or in any manner, any
      and all Released Claims against each and every one of the Released Parties.
      

     

    3. Plaintiffs
      will submit the proposed order (attached as Exhibit A) preliminarily approving
      the settlement to the Court after execution of this Stipulation.

     

    4. Nothing
      herein shall be deemed to alter, amend, change, enlarge, supersede and/or modify
      any existing indemnity rights and obligations between any Defendant and Vaso,
      whether such obligations exist by agreement or applicable statute(s). Such
      rights and obligations will remain unaffected by this Stipulation. Moreover,
      nothing herein shall be deemed to affect enforcement or other rights held by
      any
      governmental agency with jurisdiction over Vaso and Defendants.

     

    5. Upon
      approval of the Settlement by the Court, Plaintiffs shall submit and request
      entry of a Final Judgment of Dismissal with Prejudice in the form attached
      as
      Exhibit B pursuant to which Plaintiffs shall take nothing by their claims and
      which will finally dispose with prejudice all Released Claims. All Parties
      and
      their counsel agree not to appeal or otherwise contest such judgment and
      dismissal.

     

    6. Upon
      approval of the Settlement by the Court, a Stipulation and Order of Dismissal
      of
      the Delaware Derivative Litigation substantially in the form attached hereto
      as
      Exhibit C shall be filed in the Delaware Court of Chancery.

     

    V.

    ATTORNEYS’
      FEES, EXPENSES AND CONDITIONS

     

     

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    1a. Payment
      of attorneys' fees to Plaintiffs Counsel shall be made on the 30th business
      day
      after the Final Judgment of Dismissal with Prejudice is entered by the Court,
      provided that no appeal is taken therefrom. Assuming no appeal of such Final
      Judgment, Vaso shall pay the fees and expenses (which may include, without
      limitation, the fees and expenses of all experts retained by Plaintiffs' Counsel
      to assist in the Derivative Litigation) of Plaintiffs' Counsel in an aggregate
      amount of $100,000 consisting of $15,000 in cash and $85,000 face amount two
      year 5% subordinated callable note convertible at $1.75 per share (with full
      dilution protection) as a unitary part of the Settlement. Such payment shall
      be
      made to Plaintiffs' Counsel c/o Barrett, Johnston & Parsley. If there is an
      appeal or review, said payment shall be made, assuming affirmance of the Final
      Judgment of Dismissal with Prejudice by such appeal or review, ten (10) business
      days thereafter.

     

    1b. Payment
      of attorneys' fees to Delaware Derivative Counsel shall be made on the 30th
      business day after the Stipulation and Order of Dismissal of the Delaware
      Derivative Litigation is entered by the Court, provided that no appeal is taken
      therefrom. Assuming no appeal of such Order of Dismissal, Vaso shall pay the
      fees and expenses (which may include, without limitation, the fees and expenses
      of all experts retained by Delaware Derivative Counsel to assist in the Delaware
      Derivative Litigation) of Delaware Derivative Counsel in an aggregate amount
      of
      $35,000 consisting of $10,000 in cash and $25,000 face amount two year 5%
      subordinated callable note convertible at $1.75 per share (with full dilution
      protection) as a unitary part of the Settlement. Such payment shall be made
      to
      Delaware Derivative Counsel c/o Federman & Sherwood. If there is an appeal
      or review, said payment shall be made, assuming affirmance of the Stipulation
      and Order of Dismissal of the Delaware Derivative Litigation by such appeal
      or
      review, ten (10) business days thereafter.

     

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    2. The
      Settlement shall terminate and be of no further force or effect if any of the
      conditions set forth below occur, unless waived by Vaso and all the
      Defendants:

     

    a. the
      Court
      does not enter Orders approving this Stipulation and the Final Judgment of
      Dismissal with Prejudice; or

     

    b. any
      material part of the Stipulation or Final Judgment of Dismissal with Prejudice
      is overturned or set aside on appeal or review; or

     

    3. If
      any of
      the conditions in paragraph 2 of this Article V occur and are not waived by
      Vaso
      and all Defendants, the Parties shall revert to their litigation positions
      and
      the fact and terms of the Stipulation shall not be admissible in any trial,
      including but not limited to, the trial of the Derivative
      Litigation.

     

    VI.

    NO
      ADMISSION OF WRONGDOING

     

    1. This
      Stipulation, whether or not consummated, and any act performed or document
      executed pursuant to or in furtherance of the Stipulation or the Settlement
      or
      any negotiations, discussions, findings or proceedings in connection with this
      Stipulation or the Settlement:

     

    a. does
      not
      constitute and shall not be offered against any or all of the Defendants, Vaso
      or the Released Parties for any reason including, without limitation, as
      evidence of or construed as or deemed to be evidence of any presumption,
      concession, or admission by any or all Defendants or Vaso with respect to the
      truth of any fact alleged by Plaintiffs or the validity of any Released Claim
      that has been or could have been asserted in the Derivative Litigation, the
      Delaware 

     

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

     

    Derivative
      Litigation or in any litigation, or the deficiency of any defense that has
      been
      or could have been asserted in the Derivative Litigation, the Delaware
      Derivative Litigation or in any litigation, or of any liability, negligence,
      fault, or wrongdoing of any or all Defendants or Vaso.

     

    b. does
      not
      constitute and shall not be offered against any or all Defendants, Vaso or
      the
      Released Parties as evidence of or be construed as or deemed evidence of a
      presumption, concession or admission of any fault, misrepresentation or omission
      with respect to any statement or written document approved or made by any or
      all
      Defendants or Vaso.

                           
      

              
c. does
      not
      constitute and shall not be offered against any or all Defendants, Vaso or
      the
      Released Parties as evidence of or be construed as or deemed evidence of a
      presumption, concession or admission with respect to any liability, negligence,
      fault or wrongdoing, or in any way referred to for any other reason as against
      any of the Parties to this Stipulation, in any other civil, criminal or
      administrative action or proceeding (including, but not limited to, any formal
      or informal investigation or inquiry by the Securities and Exchange Commission
      or any other state or federal governmental or regulatory agency), other than
      such proceedings as may be necessary to effectuate the provisions of this
      Stipulation; provided,
      however,
      that if
      this Stipulation is approved by the Court, any or all Defendants, Vaso or the
      Released Parties may refer to this Stipulation to effectuate the liability
      protection granted them hereunder.

     

    d. does
      not
      constitute and shall not be offered or construed against any or all Defendants,
      Vaso or the Released Parties as an admission or concession that the corporate
      governance reforms and attorneys’ fees and expenses paid hereunder represent
      remedies which could have been recovered after trial; and 

     

    e. shall
      not
      be offered, construed or received in evidence as an admission, concession or
      presumption against Plaintiffs or their attorneys that any of their claims
      are
      without merit. 

     

     

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    2. Any
      or
      all Released Parties may file this Stipulation and/or the Final Judgment of
      Dismissal with Prejudice in any other action or proceeding that may be brought
      against any or all of them in support of a defense or counterclaim based on
      principles of res judicata, collateral estoppel, release, good faith settlement,
      judgment, bar or reduction, or any theory of claim preclusion or issue
      preclusion or similar defense or counterclaim. Plaintiffs understand,
      acknowledge and agree that the Defendants have denied and continue to deny
      each
      and all claims of alleged wrongdoing.

     

    VII.

    MISCELLANEOUS
      PROVISIONS

     

    1. This
      Stipulation constitutes the entire agreement among the Parties concerning the
      Settlement of the Derivative Litigation, and supersedes any prior agreements
      or
      understandings between the Parties with respect to the Settlement. No
      representations, warranties, or inducements have been made by any Party
      concerning this Stipulation or its exhibits, other than those contained and
      memorialized in this Stipulation.

     

    2. The
      Parties intend the Settlement to be a final and complete resolution of all
      Released Claims, including any and all allegations asserted or which could
      have
      been asserted on behalf of Vaso against Defendants with respect to all matters
      set forth in Plaintiffs’ Amended Consolidated Derivative Complaint. Further, the
      Parties agree that the attorneys’ fee amount paid and the other terms of the
      Settlement were negotiated at arm’s length in good faith and in the best
      interests of Vaso, and reflect a settlement that was reached voluntarily after
      consultation with experienced legal counsel. The Parties assert no claim of
      bad
      faith prosecution or defense. Defendants acknowledge that this case was brought
      in good faith by Plaintiffs and Plaintiffs' Counsel, and Plaintiffs acknowledge
      this case was defended in good faith by Defendants and their
      attorneys.

     

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    3. Plaintiffs
      expressly represent and warrant that, in entering into the Settlement, they
      relied upon their own knowledge and investigation (including the knowledge
      of
      and investigation performed by Plaintiffs’ Counsel), and not upon any promise,
      representation, warranty or other statement made by or on behalf of any of
      the
      Defendants or Vaso not expressly contained in this Stipulation.

     

    4. This
      Stipulation may not be modified or amended, nor may any of its provisions be
      waived (except the conditions set forth in paragraph 2 of Article V, which
      may
      only be waived by Vaso and each Defendant), except by a writing signed by all
      Parties hereto or their successors-in-interest.

     

    5. The
      headings herein are used for the purpose of convenience only and are not meant
      and shall not be construed to have any legal effect.

     

    6. The
      administration and consummation of the Settlement shall be under the authority
      of the Court, and the Court shall retain jurisdiction for the purpose of
      entering orders enforcing the terms of the Settlement.

     

    7. The
      waiver by any Party of any breach of this Stipulation by any Party hereto shall
      not be deemed a waiver of any other prior or subsequent breach of this
      Stipulation or be deemed a waiver by any other Party.

     

    8. This
      Stipulation may be executed in one or more counterparts. All executed
      counterparts and each of them shall be deemed to be one and the same instrument,
      provided that counsel for the Parties to this Stipulation shall exchange among
      themselves original signed counterparts. Any signature to this Stipulation,
      to
      the extent signed and delivered by facsimile, shall be treated in all manners
      and respects as an original signature and shall be considered to have the same
      binding legal effect as if it were the original signed version thereof delivered
      in person. At the request of a Party, any other Party so executing and
      delivering this Stipulation by facsimile shall re-execute original forms thereof
      and deliver them to the requesting Party. No Party shall raise the use of
      facsimile to deliver or transmit a signature as a defense to the formation
      or
      enforceability of this Stipulation, and each such Party forever waives any
      such
      defense.

     

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    9. The
      terms
      of this Stipulation shall be binding upon, and inure to the benefit of the
      successors and assigns of the Parties and the Released Parties.

     

    10. The
      construction, interpretation, operation, effect and validity of this
      Stipulation, and all documents necessary to effectuate it, shall be governed
      by
      the laws of the State of Delaware without regard to its conflicts of laws.
      Exclusive venue over any dispute arising from or relating to this Stipulation
      shall lie in the United States District Court for the District of Massachusetts,
      and the Parties expressly consent to personal jurisdiction in Massachusetts
      in
      connection with any action to enforce the Settlement.

     

    11. This
      Stipulation shall not be construed more strictly against one party than another
      merely by virtue of the fact that it, or any part of it, may have been prepared
      by counsel for one of the Parties, it being recognized that it is the result
      of
      arm’s length negotiations between the Parties, and all Parties have contributed
      substantially and materially to the preparation of this
      Stipulation.

     

    12. All
      counsel and any other person executing this Stipulation, or any related
      settlement documents, warrant and represent that they have full authority to
      do
      so and that they have the authority to take appropriate action required or
      permitted to be taken under this Stipulation to effectuate its
      terms.

     

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    13. Counsel
      for Plaintiffs, counsel for the Defendants, and counsel for Vaso agree to
      cooperate fully with one another in seeking prompt Court approval of the
      Settlement and the entry of a Final Judgment of Dismissal with Prejudice, and
      promptly to agree to execute all such other documents and to take all such
      other
      action as may be reasonably required to obtain the Court’s final approval of the
      Settlement and the entry of a Final Judgment of Dismissal with Prejudice. The
      Parties shall promptly apply to the Court for approval of the Settlement. The
      Parties shall use their best efforts to obtain Court approval of the
      Settlement.

     

    14. Any
      agreements and orders entered during the course of the Derivative Litigation
      relating to the confidentiality of information shall survive this
      Stipulation.

     

    15. Nothing
      in this Stipulation, or the negotiations relating thereto, is intended to or
      shall be deemed to constitute a waiver of any applicable privilege or doctrine,
      including, without limitation, the attorney-client privilege or work product
      doctrine.

     

    16. The
      Parties (i) acknowledge their intent to consummate the Settlement and (ii)
      agree
      to cooperate as reasonably necessary to effectuate and implement this
      Stipulation, and to use their commercially reasonable efforts to accomplish
      this
      Stipulation’s terms and to consummate its contemplated
      transactions.

     

    17. The
      Parties acknowledge, represent and warrant to each other that the mutual
      releases and payments hereunder are adequate consideration for the consideration
      given.

     

    18. The
      Plaintiffs and Plaintiffs’ Counsel represent and warrant that they, individually
      and collectively, have not assigned any rights, claims or causes of action
      that
      were asserted or could have been asserted in the Derivative Litigation in
      connection with or arising from any of the Released Claims.

     

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    19. The
      Parties acknowledge that their respective counsel has express authority to
      execute this Stipulation on their behalf and that such signature by counsel
      shall have the same force and binding effect as if signed by the
      Party.

     

    STIPULATED
      AND AGREED TO:

    

    /s/
      Timothy L. Miles

    GEORGE
      E.
      BARRETT

    DOUGLAS
      S. JOHNSTON, JR.

    TIMOTHY
      L. MILES

    BARRETT,
      JOHNSTON & PARSLEY

    217
      Second Avenue, North

    Nashville,
      TN 37201

    Phone:
      (615) 244-2202

    Facsimile:
      (615) 252-3798 

    

    Lead
      Counsel for Plaintiffs

    

    

    /s/
      Richard S. Kraut/JH

    DILWORTH
      PAXSON LLP

    RICHARD
      S. KRAUT

    1818
      N
      Street NW, Suite 400

    Washington,
      DC 20036

    Phone:
      (202) 452-0900

    Facsimile:
      (202) 452-0930

    

    Counsel
      for Vaso Active Pharmaceuticals, Inc.,

    BioChemics,
      Inc., John Masiz, Kevin J. Seifert,

    Bruce
      A.
      Shear, Brian J. Strasnick, William P. 

    Adams,
      Robert E. Anderson, Gary Fromm 

    and
      Joseph Frattaroli

    

    

    

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    

     

    

    /s/
      Michael G. Bongiorno

    WILMER
      CUTLER PICKERING HALE 

    AND
      DORR
      LLP

    JEFFREY
      B. RUDMAN

    MICHAEL
      G. BONGIORNO

    60
      State
      Street

    Boston,
      MA 02109

    Phone:
      (617) 526-6000

    Facsimile:
      (617) 526-5000

    

    Counsel
      for Vaso Active Pharmaceuticals, Inc.,

    BioChemics,
      Inc., John Masiz, Kevin J. Seifert,

    Bruce
      A.
      Shear, Brian J. Strasnick, William P. 

    Adams,
      Robert E. Anderson, Gary Fromm 

    and
      Joseph Frattaroli

    

    

    /s/
      John A. Sten

    JOHN
      A.
      STEN

    KAY
      B.
      LEE

    GREENGERG
      TRAURIG, LLP

    One
      International Place

    Boston,
      MA 02110

    Phone:
      (617) 310-6083

    

    Counsel
      for Stephen G. Carter

    

    

    

    
      	
              /s/
                William B. Federman

            	
              Agreeing
                to Section 4, Par. 6 and Section 5, Par. 1

            
	
              WILLIAM
                B. FEDERMAN

            	
              only
                of the Stipulation and Agreement of
                Settlement

            

    

    FEDERMAN
      & SHERWOOD

    120
      N.
      Robinson Avenue, Suite 2720

    Oklahoma
      City, OK 73102

    Phone:
      (405) 235-1560

    Facsimile:
      (405) 239-2112

    

    

    

    

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    

    

    

    

    JOSEPH
      A.
      ROSENTHAL 

    ROSENTHAL,
      MONHAIT, GROSS & GODDESS, P.A. 

    Suite
      1401, 919 N. Market Street 

    Wilmington,
      DE 19899-1070

    

    Counsel
      for Plaintiff in Delaware Derivative Litigation

    

     

    25Exhibit 10.1 - Contract with Sealweld International Company Ltd.

Exhibit 10.1

ASSET PURCHASE AGREEMENT

THIS AGREEMENT is dated effective 23rd day of December, 2005.

BETWEEN:

SEALWELD INTERNATIONAL COMPANY LTD., of Suite "A", Coveham

House, Downside Bridge Road, Cobham, Surrey, England, KT 113EP

(hereinafter called the "Vendor")

OF THE FIRST PART

AND:

HIGH GRADE MINING CORP., of 885 Pyrford Road

West Vancouver, British Columbia, Canada, V7S 2A2;

(hereinafter called the "Purchaser")

OF THE SECOND PART

AND:

HUGH CHISHOLM AND BRUCE CHISHOLM, Businessmen, of 16211 Clay

Road, Suite 106-212, Houston, Texas, 77084

(hereinafter called the "Principals")

OF THE THIRD PART

WHEREAS:

	The Vendors have established a business to fund projects capable of providing significant reductions in fugitive gas emissions from gas pipeline transmission systems operating in the world and to qualify the resulting credits under the Kyoto Accord for sale on the world markets;

	The Vendor has conditionally agreed to sell, and the Purchaser has conditionally agreed to purchase, the assets, goodwill and the benefits of the relationships established by the Vendor over a seven year period working in Eastern Europe, Great Britain, Russia, Canada, Mexico and South America;

	The Principals are the sole shareholders of the Vendor, and have become parties to this Agreement in order to ensure that personnel is available to develop and exploit the assets and goodwill of the Vendor for the issuance of Kyoto credits.

 

 

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the premises and the covenants, agreements, representations, warranties and payments hereinafter contained, the parties hereto covenant and agree as follows:

1.       INTERPRETATIONS

1.1     Definitions

In and for the purposes of this Agreement, unless there is something in the subject matter or context inconsistent therewith or unless otherwise specifically provided, each of the words, phrases and expressions described in Schedule A - Definitions shall have the meanings ascribed thereto.

1.2     Governing Law and Forum

This Agreement and all matters arising hereunder will be governed by and construed in accordance with the laws of the State of Nevada, USA and all disputes and claims, whether for specific performance, injunction, declaration or otherwise howsoever both at law and in equity, arising out of or in any way connected with this Agreement will be referred to the courts of the State of Nevada exclusively, and, by execution and delivery  of this Agreement, each party hereby irrevocably submits and attorns to such jurisdiction.

1.3     Severability

If any one or more of the provisions contained in this Agreement should be invalid, illegal, or unenforceable in any respect in any jurisdiction, the validity, legality and enforceability of such provision or provisions shall not in any way be affected or impaired thereby in any other jurisdiction and the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby, unless in either case as a result of such determination this Agreement would fail in its essential purpose.

1.4     Headings

The headings to the sections and subsections of this Agreement are inserted for convenience only and do not form a part of this Agreement and are not intended to interpret, define or limit the scope, extent or intent of this Agreement or any provision hereof.

1.5     Cross-Reference

Unless otherwise stated, all references in this Agreement to a designated "section", "subsection" or other subdivision or to a schedule is to the designated section, subsection or other subdivision of, or schedule to, this Agreement.

 

 

- 2 -

1.6     Referenced to Whole Agreement

Unless otherwise stated, the words "herein", "hereof" and "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular section, subsection or other subdivision or schedule.

1.7     References to Successors Included

Any reference to a corporate entity includes and is also a reference to any corporate entity that is a successor to such entity.

1.8     No Contra Proferentum

The language in all parts of this Agreement shall in all cases be construed as a whole and neither strictly for nor strictly against any of the parties.

1.9     No Merger

The representations, warranties, covenant and agreements contained in this Agreement shall not merge in the Closing and shall continue in full force and effect from and after the Closing Date.

1.10   Currency

All references to money in this Agreement are or shall be to money in lawful currency of the United States of America.  

1.11   Schedules

The following are the Schedules attached to and incorporated in this Agreement by this reference and deemed to form a part hereof:

Schedule A - Definitions

Schedule B- Intangible Property

Schedule C- Material Contracts

Schedule D- Employment Agreement

Schedule E- Share Transfer Agreement for restricted shares

2.       PURCHASE AND SALE

2.1     Purchase and Sale

Relying on the warranties and representations set forth in this Agreement, and subject to the terms and conditions hereof, on the Closing Date, but effective as of and from the Effective Date, the Purchaser will purchase from the Vendor and the Vendor will sell, assign and transfer to the Purchaser the Assets, free and clear of all Encumbrances, for the Purchase Price.

 

- 3 -

2.2     Purchase Price

The Purchase Price shall be:

	the sum of $100.00; and

	the continuing covenants of the Purchaser as contained in paragraphs 6.3, 6.4, 6.5 and 6.6. 

3.       PAYMENT OF THE PURCHASE PRICE

3.1     Payment of Purchase Price

The Purchase Price shall paid by a cheque drawn on the account of the Purchaser at Closing.

4.       REPRESENTATIONS AND WARRANTIES OF THE VENDOR

4.1     Representations and Warranties of Vendor

To induce the Purchaser to enter into and complete the transactions contemplated by this Agreement, the Vendor hereby jointly and severally represents and warrants that:

	the Vendor:

	is a company duly incorporated under the Laws of the United Kingdom in good standing under the laws of its jurisdiction of incorporation;

	is in good standing in each jurisdiction in which the nature of its business conducted by it or the property owned or leased by the Vendor makes such qualification necessary;

	has the full power, authority, right and capacity to own, lease and dispose of the Assets, to carry on the Business as now being conducted by it, to execute and deliver this Agreement, to complete the transactions contemplated hereby and to duly observe and perform all of its covenants and obligations herein set forth; and

	Authority to Sell

the execution and delivery of this Agreement and the completion of the transaction contemplated hereby have been duly and validly authorized by all necessary corporate action on the part of the Vendor, and this Agreement constitutes a legal, valid and binding obligation of the Vendor enforceable against it in accordance with its terms except as may be limited by laws of general application affecting the rights of creditors;

 

- 4 -

	Sale Will Not Cause Default

 neither the execution and delivery of this Agreement, nor the other agreements and instruments contemplated hereby, nor the completion of the transactions contemplated herein will:

	violate any of the terms and provisions of the constating documents or by-laws or articles of the Vendor, or any order, decree, statute, by-law, regulation, covenant, restriction applicable to the Vendor or any of the Assets;

	give any person the right to terminate, cancel or remove any of the Assets, or the Material Contracts;

	result in the creation of any lien, charge or encumbrance on any of the Assets.

	Assets

 the Vendor is the legal and beneficial owner of the Assets and possesses and has good and marketable title to the Assets free and clear of all mortgages, liens, charges, pledges, security interests, encumbrances or other claims whatsoever;

	Litigation

 there is no litigation, arbitration, or administrative or governmental proceeding or inquiry pending, or to the knowledge of the Vendor, threatened against or relating to the Vendor, the Business, or any of the Assets, nor does the Vendor know of or have reasonable grounds that there is any basis for any such action, proceeding or inquiry;

	Conformity with Laws

 all governmental licenses and permits required for the conduct in the ordinary course of the operations of the Business and the uses to which the Assets have been put, have been obtained and are in good standing and such conduct and uses are not in breach of any statute, by-law, regulation, covenant, restriction, plan or permit;

	Material Contracts

 the Schedule C - Material Contracts contains a true and correct listing of each written or oral contract or business relationship established by the Vendor, to be acquired or assumed by the Purchaser;

 

- 5 -

	Material Facts

 this Agreement does not contain any untrue statement by the Vendor of a material fact nor has the Vendor omitted to state in this Agreement a material fact necessary in order to make the statements contained herein not misleading;

	Schedule Information

 all information set out in the Schedules to this Agreement is accurate and correct in every material respect;

	No Defaults

 except as otherwise expressly disclosed herein or in any Schedule hereto there has not been any default in any obligation to be performed under any Material Contract, each of which is in good standing and in full force and effect, unamended, except as set forth in the Schedule of Material Contracts;

4.2     Survival of Representations and Warranties

The representations and warranties of the Vendor and the contained in this Agreement shall survive the Closing and the Payment of the Purchase Price and, notwithstanding the Closing and the Payment of the Purchase Price, the representations and warranties of the Vendor shall continue in full force and effect for the benefit of the Purchaser for a period of one year.

4.3     Reliance

The Vendor acknowledge and agree that the Purchaser has entered into this Agreement relying on the warranties and representations and other terms and conditions of this Agreement notwithstanding any independent searches or investigations that may be undertaken by or on behalf of the Purchaser and that no information which is now known or should be known or which may hereafter become known to the Purchaser or its officers, directors or professional advisers shall limit or extinguish the right to indemnity under section 8.

5.       REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

5.1     To induce the Vendor and the Principals to enter into and complete the transactions contemplated by this Agreement, the Purchaser hereby represents and warrants, as representations and warranties that are true and correct as at the date hereof and will be true and correct on the Closing Date as if such representations and warranties were made on the Closing Date (except insofar as such representations and warranties are stated to be given as of a particular date or for a particular period and relate solely to such date or period) that:

 

 

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	Status of Purchaser

 the Purchaser is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Nevada, USA, and has the power and capacity to enter into this Agreement and carry out its terms;

	Authority to Purchase

 the execution and delivery of this Agreement and the completion of the transaction contemplated hereby has been duly and validly authorized by all necessary corporate action on the part of the Purchaser, and this Agreement constitutes a legal, valid and binding obligation of the Purchaser enforceable against the Purchaser in accordance with its terms except as limited by laws of general application affecting the rights of creditors.

	Finder's Fee

 the relationship between the Vendor and the Purchaser has been established through the efforts of Sebrew Investments Inc., a British Columbia Corporation that will with its agent, Sanya Asprovski receive a fee of 150,000 treasury shares of the Purchaser to be issued at a price of $0.001 per share a finder that will receive a fee from the Purchaser for brokering the arrangement evidenced in this Agreement between the Vendor and Purchaser.  The finders fee shall be issued in the following increments:

	Sebrew Investments Ltd. - 130,000 shares; and

	Sanya Asprovski - 20,000 shares.

5.2     Survival of Representations and Warranties

The representations and warranties of the Purchaser contained in this Agreement shall survive the Closing and the conveyance of the Assets and, notwithstanding the Closing and the conveyance of the Assets, the representations and warranties of the Purchaser shall continue in full force and effect for the benefit of the Vendor for a period of one year.

5.3     Reliance

The Purchaser acknowledges and agrees that the Vendor and the Principals have entered into this Agreement relying on the warranties and representations and other terms and conditions of this Agreement notwithstanding any independent searches or investigations that may be undertaken by or on behalf of the Vendor and the Principals and that no information which is now known or should be known or which may hereafter become known to any of the Vendor, the Principals or the Vendor's officers, directors or professional advisers shall limit or extinguish the right to indemnity under section 8.

 

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6.       COVENANTS OF THE VENDOR

6.1     Conduct of Business

Until the Time of Closing, the Vendor shall conduct the Business diligently and only in the ordinary course and will use its best efforts to preserve the Assets and the Business intact, to keep available to the Purchaser its present employees and to preserve for the Purchaser its relationships with its suppliers, customers and others having business relations with it.

6.2     Access by Purchaser

The Vendor will give to the Purchaser and the Purchaser's counsel, accountants and other representatives full access, during normal business hours throughout the period prior to the Time of Closing, to all of the properties, books, contracts, commitments, records, and other information of the Vendor relating to the Business and the Assets, and will furnish to the Purchaser during such period all such information as the Purchaser may reasonably request.

6.3     Confidentiality

Each of the Vendor and the Principals, and any and all of their agents, employees, representatives, relatives and other persons who acted on behalf of the Vendor or the Principals and were or are involved in any negotiations relating to this Agreement, or had, have, will or may have any knowledge about any part in such negotiations, will not, without the prior written consent of the Purchaser, reveal or disclose any of the terms of this Agreement, any portion of this Agreement or any of the transactions contemplated hereby, and will keep strictly confidential the terms of this Agreement, all information, communications, documents and material of any kind and in any form whatsoever, whether written, oral, technical, copied or relating to this Agreement and any of the transactions contemplated hereby.  Notwithstanding the generality of the foregoing, each of the Vendor and the Principals shall be permitted to disclose any information which is within the public domain.  Each of the Vendor and the Principals acknowledge that a breach of the covenants contained in this paragraph will result in damage to the Purchaser, that such damage will be difficult to determine and that the Purchaser could not be adequately compensated for such damage by monetary award.  Accordingly, in the event of a breach of any of the covenants contained in this paragraph, in addition to any and all other remedies available to the Purchaser in law or in equity, each of the Vendor and the Principals hereby consent to the covenants, and each of them, contained in this paragraph being enforced by temporary or permanent injunction, restraining order or declaration, or all of such relief, and to such enforcement being without the necessity of a bond.  Each of the Vendor and the Principals acknowledge and agree that the scope of this paragraph is reasonable and commensurate with the protection of the legitimate interest of the Purchaser.

 

 

 

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6.4     Covenant Not to Disclose

The Vendor and the Principals covenant that, it or they will not at any time disclose or otherwise make known or available to any person, firm, corporation or other entity other than its affiliates, or use for each of their respective own accounts, any information that relates to the Vendor, this Agreement, the transactions contemplated hereby, the existing business of the Vendor or the reasonably contemplated or foreseeable business of the Vendor including, but not limited to confidential and proprietary trade secrets, contacts, concepts, formulae, marketing plans or proposals, financial information, or any observations, data, written material, records of documents used by or relating to the business of the Vendor which are of a confidential nature (collectively, the "Proprietary Information") for any reason or purpose except this provision shall not prohibit the Principals from making disclosure in each of their respective capacities as an intended employee or Officer of the Purchaser provided such disclosure is for the benefit of the Purchaser and is made in the ordinary course of the Purchaser's business.  Proprietary Information includes any such information whether or not such information was developed, devised or otherwise created in whole or in part by the Vendor, the Principals or any associates or affiliates of either of them, and whether or not it is a matter of public knowledge unless it became public knowledge as a result of authorized disclosure to the general public.

6.5     Covenant Not to Compete

The Vendor and the Principals covenant that during the term of Employment of the Principals under the terms of the Employment Contract provided for hereunder and for a period of three years from the date of termination of the Employment Contract (the "Termination Date"), for both of the Principals neither of them will directly or indirectly compete with the Purchaser.  This covenant not to compete shall include all geographical areas in which the Purchaser is actively engaged in business as of the Termination Date and shall prohibit the following activities:

	the development, marketing or soliciting of orders with regard to any product, concept, or business involving the Kyoto Accord which is directly competitive with any aspect of the business of the Purchaser as conducted as of the Termination Date, whether or not using any Confidential Information (as defined in the Employment Contract); or

	anywhere in the world where the Purchaser is actively marketing products, concepts or credits, or providing services as of the Termination Date; or

	be an employee, employer, consultant, officer, director, partner, trustee or shareholder of more than 5% of the outstanding common stock of any person or entity that does any of the activities referred to in the preceding paragraphs (a) and (b).

 

 

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6.6     Covenant Not to Interfere

The Vendor and the Principals jointly and severally covenant that, for as long as the covenant set forth in Section 6.5 is in effect, neither of them will directly or indirectly solicit any person, firm, corporation or other business organization who at the time is, or at any time within the twelve (12) month period prior to such act was, an employee, client, customer or supplier of the Purchaser or otherwise deals or dealt with the Purchaser, in any manner which results in a change in the relationship between the  Purchaser and that employee, client, customer or supplier which is materially adverse to the Purchaser.

7.       COVENANTS OF THE PURCHASER

7.1     Offer Employment

The Purchaser covenants with each of the Principals to offer employment on the Effective Date to each of the Principals on the terms and conditions set out in Schedule D, Employment Contract.

8.       INDEMNITIES

8.1     Indemnity by the Vendor and the Principals

Without prejudicing any other remedy available to the Purchaser at law or in equity, the Vendor and the Principals hereby jointly and severally agree, forthwith upon demand, to indemnify and save harmless the Purchaser from and against any and all costs, losses, damages or expenses suffered or incurred by the Purchaser in any manner arising out of, in connection with, with respect to or relating to:

	any representation or warranty of the Vendor or the Principals set forth in this Agreement being untrue or incorrect or the failure of the Vendor or the Principals to observe or perform any of their obligations pursuant hereto;

	any misrepresentation in this Agreement;

8.2     Clarification of Indemnity by Vendor and Principals

With respect to the indemnity provided in subsection 8.1, each of the Vendor and the Principals hereby:

	waive notice of demand for payment, performance or satisfaction of all or any part of his obligations under the indemnity given in subsection 8.1, protest, notice of protest and notice of default, any right he may have to require that an action be brought against the Vendor or the Principals, as the case may be, or any other person and any and all other notices and legal and equitable defences to which he may be entitles;

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	agrees to honour its or his obligations under the indemnity given in subsection 8.1 forthwith upon demand and acknowledges that such liability is not contingent or conditional upon the pursuit of any remedies against the Vendor or the Principals, as the case may be, or any other person and that such liability shall not be diminished, relieved or otherwise affected by the extension of time, credit or any other indulgence which the Purchaser may from time to time grant to the Vendor or the Principals, as the case may be, or to any other person, including the acceptance of and partial payment, performance or satisfaction, or the compromise or release of any claims, or by the Vendor or the Principals not having legal existence, or the Vendor or the Principals, as the case may be, being under no obligation to pay the indebtedness under the indemnity, or any part thereof, or by the indebtedness under the indemnity becoming irrecoverable or unenforceable in whole or in part from or against the Vendor or the Principals, as the case may be, by operation of law or otherwise, none of which shall in any way modify or amend any of the Vendor's and the Principal's obligations under the indemnity given in subsection 8.1;

9.       CONDITIONS PRECEDENT TO THE OBLIGATIONS OF THE VENDOR

9.1     All obligations of the Vendor under this Agreement are subject to the fulfillment, prior to or at the Effective Date, of:

	the Purchaser being successful in arranging for the transfer of 4,250,000 previously issued common shares of the Purchaser to each of the Principals on the terms set out in Schedule E;

	the Purchaser executing an employment contract for the benefit of each of the Principals to be effective as of the Effective Date;

9.2     The conditions contained in subsection 9.1 are for the exclusive benefit of the Vendor and any such condition may be waived in whole or in part by the Vendor at or prior to the Time of Closing by delivering to the Purchaser a written waiver to that effect signed by the Vendor.

10.       CLOSING

10.1     Time of Closing

Subject to the terms and conditions hereof, the purchase and sale of the Assets shall be completed at a closing to be held at 11:00 a.m., Pacific time, in Vancouver, British Columbia, Canada, on the earlier of the 3rd business day following the date upon which the Principals shall have received the transfer of the shares referred to in paragraph 9.1(a) (herein called the "Effective Date") or January 31st, 2006.

 

 

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10.2     Place of Closing

The Closing shall take place at the offices of the Purchaser's solicitors, Kjeld Werbes Law Corporation, Suite 708, 1111 West Hastings Street, Vancouver, British Columbia.

10.3     Documents to be Delivered by the Vendor

At the Closing, the Vendor shall deliver or cause to be delivered to the Purchaser:

	all deeds of conveyance, bills of sale, transfer and assignments in form and content satisfactory to the Purchaser's counsel, appropriate to effectively vest a good and marketable title to the Assets in the Purchaser to the extent contemplated by this Agreement;

	possession of the Assets;

	certified copies of the such resolutions of the shareholders and directors of the Vendor and the Principals as are required to be passed to authorize the execution delivery and implementation of this Agreement and of all documents to be delivered by the Vendor and the Principals pursuant thereto;

	all lists of customers, outstanding orders for the purchase and sale of inventory, brochures, samples, price lists, files, records, documents and other information related to the Business and all consents, Permits and other rights used in connection with the Business;

10.4     Documents to be Delivered by the Purchaser

At the Closing, the Purchaser shall deliver or cause to be delivered to the Vendor:

	two share certificates each representing 4,250,000 shares of the Purchaser one share certificate registered in the name of each of the Principals;

	a certified cheque or banker's draft payable to the Vendor for the Purchase Price;

11.       CONVEYANCE

11.1     Conveyance of Assets

On completion of the Closing, this Agreement shall, without further act or formality, operate as a transfer to the Purchaser of all Assets to be sold and purchased hereunder as the same shall be at the close of business on the Effective Date.  The Vendor shall nevertheless, at the Closing and from time to time after the Closing, execute and deliver to the Purchaser all such conveyances, transfers, assignments and other instruments in writing and further assurances as the Purchaser or the Purchaser's Solicitors shall 

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reasonably require from the Vendor, and the Purchaser shall execute and deliver to the Vendor all such agreements of assumptions and other instruments in writing and further assurances as the Vendor or the Vendor's Solicitors shall reasonably require in order to give effect to the provision of this Agreement.

11.2     Trust Regarding Assets Not Conveyed

Should any of the Assets intended to be transferred hereunder not be transferred to the Purchaser at the completion of the Closing on the Closing Date, the Vendor shall hold as bare trustee in trust for, and at the sole cost of the Purchaser, all such Assets from the commencement of business on the Closing Date until such Assets are effectively transferred.

12.       GENERAL PROVISIONS

12.1     No amendments, modification, supplement, termination or waiver of any provision of this Agreement will be effective unless in writing signed by the appropriate party and then only in the specific instance and for the specific purpose given.

12.1     Unless otherwise specifically provided herein, the parties will pay their respective legal, accounting and other professional fees and expenses, including goods and services taxes on such fees and expenses, incurred by each in connection with the negotiation and settlement of this Agreement, the completion of the transactions contemplated hereby and the other matters pertaining hereto.

13.       NOTICE

13.1     Any Notice, director or other instrument required or permitted to be given under this Agreement shall be in writing and may be given by the delivery of the same or by mailing the same by prepaid registered or certified mail or by sending the same by facsimile, telecommunication, email or other similar form of communication, in each case addressed as follows:

	if to the Vendor at:

Sealweld International Company Ltd.

Suite "A"

Coveham House

Downside Bridge Road

Cobham, Surrey

England

KT 113EP

Facsimile: 011-44-1932-868-203

Email Address:  swiuk@netscape.net

	if to the Purchaser at:

 

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High Grade Mining Corp. 

885 Pyrford Road

West Vancouver, BC, Canada

V7S 2A2

Facsimile:  (604) 925-3640

Email Address:  bob.baker2@shaw.ca

	if to the Principals at:

Bruce Chisholm

Hugh Chisholm

SWI Company

16211 Clay Road

Suite 106-212

Houston, Texas

77084

Facsimile:  713-856-8560

Email Address: houstondirect@swbell.net

	all with a copy to:

Conrad C. Lysiak

Attorney and Counselor at Law

Metropolitan Financial Center

601 West First Avenue, Suite 503

Spokane, Washington, USA, 99201

Facsimile:  (509) 747-1770

Email Address:  cclysiak@qwest.net

13.2     Any notice, direction or other instrument aforesaid will, if delivered, be deemed to have been given and received on the day it was delivered, and if mailed, be deemed to have been given and received on the fifth business day following the day of mailing, except in the event of disruption of postal service in which event notice will be deemed to be received only when actually received and, if sent by facsimile, telecommunication, email or other similar form of communication, be deemed to have been given or received on the day it was so sent.

13.3     Any party may at any time give to the other notice in writing of any change of address of the party giving such notice and from and after the giving of such notice, the address or addresses therein specified will be deemed to be the address of such party for the purpose of giving notice hereunder.

 

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14.       FURTHER ASSURANCES

14.1     The parties hereto shall execute such further and other documents and do such further and other things as may be necessary to carry out and give effect to the intent of this Agreement.

15.       ENTIRE AGREEMENT

15.1     This Agreement constitutes the entire Agreement between the parties and there are no representations or warranties, express or implied, statutory or otherwise and no agreements collateral hereto other than as expressly set forth or referred to herein.

16.       TITLES

16.1     The titles appearing in this Agreement are inserted for convenience of reference only and shall not affect the interpretation of this Agreement.

17.       COUNTERPARTS

17.1     This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original and all of which will constitute one and the same instrument.

18.       SUCCESSORS AND ASSIGNS

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

 

 

 

 

 

 

 

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

	
THE CORPORATE SEAL of
	
)
	 
	
SEALWELD INTERNATIONAL
	
)
	 
	
COMPANY LTD.
	
)
	 
	
was hereunto affixed in
	
)
	 
	
the presence of:
	
)
	 
	 	
)
	
c/s

	
BRUCE CHISHOLM
	
)
	 
	 	
)
	 
	 	
)
	 
	 	 	 
	 	 	 
	
THE CORPORATE SEAL of
	
)
	 
	
HIGH GRADE MINING CORP.,
	
)
	 
	
was hereunto affixed in
	
)
	 
	
the presence of:
	
)
	 
	 	
)
	
c/s

	
ROBERT M. BAKER
	
)
	 
	
Robert M. Baker
	
)
	 
	 	
)
	 
	 	 	 
	 	 	 
	
SIGNED, SEALED AND DELIVERED
	
)
	 
	
by BRUCE CHISHOLM in the 
	
)
	 
	
presence of:
	
)
	
BRUCE CHISHOLM

	 	
)
	
BRUCE CHISHOLM

	 	
)
	 
	
BRUCE CHISHOLM
	
)
	 
	
Name:
	
)
	 
	
Address:
	
)
	 
	 	
)
	 
	 	 	 
	
SIGNED, SEALED AND DELIVERED
	
)
	 
	
by HUGH CHISHOLM in the 
	
)
	 
	
presence of:
	
)
	
HUGH CHISHOLM

	 	
)
	
HUGH CHISHOLM

	 	
)
	 
	 	
)
	 
	
Name:
	
)
	 
	
Address:
	
)
	 

 

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SCHEDULE A - DEFINITIONS

	"Assets" means all privileges, rights, interests tangible and intangible wherever located, which are ordinarily used in the Business of the Vendor including:

	the Goodwill;

	the Material Contracts set out in Schedule "C" ;

	the Intangible Property set out in Schedule "B";

	the Books and Records; and

	the trading seat established in London, England with the United Kingdom's emissions trading group

	"Books and Records" means all books, records, files, documents and other written electronically maintained or computer accessed information relating to the Business or the Assets, including the following:

	lists of customers and suppliers (past, present and potential);

	business development plans;

	correspondence files (including correspondence relating to discounts, rebates, future commitments, product returns, production errors, standards of any relevant Governmental Authority, social service and value added taxes, goods and services taxes, environmental legislation and fitness and service warranties relating to the Assets); and,

	other records used in or required to continue the business as heretofore and presently being conducted by the Vendor.

	"Business" means the business currently and heretofore carried on by the Vendor involving the development and exploitation of projects which will reduce Green House Gases and create tradable "Green Credits" under the provisions of the Kyoto Accord.

	"Closing" means the completion of the sale and the purchase of the Assets hereunder by the transfer and conveyance thereof and the payment of or provision for the Purchase Price therefor, all as provided herein and "time of Closing" means the time that Closing occurs.

	"Goodwill" means the goodwill of the Business, together with the exclusive right to the Purchaser to represent itself as carrying on the business in continuation of and in succession to the Vendor and the right to use any words indicating that the Business is so carried on.

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	"Material Contracts" means the benefit of all unfilled orders received by the Vendor and forward commitments to purchase made by the Vendor in connection wit the Business, and all other contracts, engagements or commitments, whether written or oral, to which the Vendor is entitled in connection with the Business including the right, title and interest of the Vendor in, to and under the material agreements and contracts described in Schedule C hereto.

	"Parties" or "parties" means the Vendor, the Purchaser and Principals.

	"Person" or "person" means an individual, corporation, body corporate, firm, partnership, syndicate, joint venture, association, trust, unincorporated organization or Governmental Authority or any trustee, executor, administrator or other legal representative.

	"Principals" means Hugh and Bruce Chisholm.

	"Purchaser" means High Grade Mining Corp.

	"Purchase Price" means the purchase price to be paid by the Purchaser to the Vendor for the Assets, as provided for in subsection 2.2.

	"Vendor " means Sealweld International Company Ltd.

	"this Agreement" means this Agreement, as the same may from time to time be supplemented or amended and in effect, and includes the schedules attached hereto.

 

 

 

 

 

 

 

 

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SCHEDULE B - INTANGIBLE PROPERTY

"Intangible Property" means all rights, title and interest of the Vendor in and to all intangible property used in connection with the Business, including all registered and unregistered trade marks, trade or brand names, copyrights, patents, applications for any of the foregoing licenses of or any of the foregoing, computer software, magnetic tape and other data processing materials, designs, inventions, records of inventions, trade secrets, know how, formulae, processes, procedures, research records, test information, market surveys, marketing know how, licenses, permits, authorities, franchises, approvals and authorizations by any Governmental Authority, restrictive covenants and other rights used in connection with the Business, including all know how, proprietary, and confidential information, goodwill and benefits established by Hugh Chisholm and Bruce Chisholm through the Vendor over a seven year period working in Eastern Europe, Great Britain, Russia, Canada, USA, Mexico and South America targeted to position Hugh and Bruce Chisholm and the Vendor or its successors through their work with governments, the United Nations, the World Bank and oil and gas executives, to be well established to acquire GHG emission reduction projects.

 

 

 

 

 

 

 

 

 

 

 

 

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SCHEDULE C - MATERIAL CONTRACTS

	Contract with IUEP/ Cherkasytransgaz Ukraine;
	Negotiations with Carbon Credit Trading entities, associations and Governments; and 
	Relationships with Sales and Services sector of Oil and Gas Industry

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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SCHEDULE D - EMPLOYMENT AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- 21 -

SCHEDULE E -

STOCK PURCHASE AGREEMENT

 

PREPARED BY CONRAD LYSIAK

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- 22 -

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