Document:

STOCK REDEMPTION AGREEMENT

STOCK PURCHASE AGREEMENT

 

Stock Purchase Agreement (the "Agreement") dated July 20, 2021, by and between, MILHOLLAND FAMILY TRUST LP (the "Seller"), and SOLAR INTEGRATED ROOFING

CORP. (the “Company”).

 

WHEREAS, Seller is the owner of 5,000,000 shares of Series B Preferred Stock of the Company; and

 

WHEREAS, Company wishes to buy the 5,000,000 shares of Series B Preferred Stock of the Company (the “Seller Stock”) from Seller and Seller wishes to convey the Seller Stock to Company, all upon the terms and subject to the conditions herein set forth.

 

NOW, THEREFORE, in order to implement the foregoing and in consideration of the mutual agreements contained herein, the parties hereto agree as follows:

 

I.Purchase and Sale of the Seller Stock. 

 

1.1Agreement to Purchase and Sell. Subject to the terms and on the conditions hereinafter set forth, Company hereby agrees to purchase the Seller Stock from Seller for the aggregate consideration of Ten Million Dollars ($10,000,000.00) (the "Purchase Price"), to be paid as follows: 

 

a.Two Million Dollars ($2,000,000.00) at the Closing (hereinafter defined). 

b.Eight Million Dollars ($8,000,000.00) pursuant to the terms of that certain Secured Promissory Note, attached hereto and incorporated herein by this reference as Exhibit A. 

 

1.2Closing of the Purchase. The closing of the purchase and sale of the Seller Stock (the "Closing") shall be deemed to take place at the offices of Company, on July 20, 2021 or at the earliest date of the completion of the events as set forth in the following sentence. At the Closing: (i) Seller will cause Seller Stock to be delivered to Company in certificate form, or as otherwise directed by the Company; and (ii) upon receipt of the Seller Stock, Company shall deliver to Seller the Purchase Price by wire transfer, as follows: 

 

	Beneficiary Account Name:

	Milholland Family Trust LP

	Beneficiary Account No.:

	200000690269

	ABA/Transit No:

	12287251

	Beneficiary Bank:

	AXOS Bank

4350 La Jolla Village Drive, 

Suite 140, San Diego, CA 92122

 

II.Representations and Warranties of Seller. 

 

Seller hereby represents and warrants that:

 

2.1Due Authorization. Seller has all requisite legal capacity to execute, deliver and perform this Agreement and the transactions hereby contemplated. This Agreement constitutes a valid and binding agreement on the part of Seller and is enforceable against Seller in accordance with its terms. 

2.2No Consents; No Contravention. The execution, delivery and performance by Seller of this Agreement (i) require no authorization, registration, consent, approval or action by or in respect of, or filings with, any governmental body, agency or official or other person (including but not limited to the Securities and Exchange Commission), and (ii) do not contravene, conflict with, result in a breach of or constitute a default under any material provision of applicable law or regulation, or of any material agreement to which Seller is a party or by which he or the Seller Stock is bound, or any judgment, order, decree or other instrument binding upon Seller or the Seller Stock. 

 

2.3Ownership; No Encumbrance. Seller is the sole legal, record and beneficial owner of the Seller Stock. Seller has good and marketable title to the Seller Stock and the Seller Stock is and at Closing shall be free and clear of all liens, pledges, mortgages, charges, security interests or encumbrances of any kind or nature (other than Federal and State securities laws). There are no outstanding options, warrants, or rights to purchase the Seller Stock other than through this Agreement. This representation shall survive the Closing. 

 

2.4Affiliate Status. Seller represents that Seller is not an officer, director, and an “affiliate” of Company (as such term is defined in Rule 144 as promulgated pursuant to the Securities Act of 1933, as amended). 

 

2.5Litigation. There are no investigations, actions, suits or proceedings, administrative or otherwise, threatened or pending to the knowledge of Seller that affects Seller’s rights to the Seller Stock or the sale of the Seller Stock itself. 

 

2.6Insolvency. Seller is not insolvent, is not in receivership, nor is any application for receivership pending; no proceedings are pending by or against it in bankruptcy or reorganization in any state or federal court; nor has it committed any act of bankruptcy. 

 

III.Representations and Warranties of Company 

 

Company hereby represents and warrants that:

 

3.1Due Authorization. Company has all requisite legal capacity to execute, deliver and perform this Agreement and the transactions hereby contemplated. This Agreement constitutes a valid and binding agreement on the part of Company and is enforceable against Company in accordance with its terms. 

 

3.2No Consents; No Contravention. The execution, delivery and performance by Company of this Agreement (i) require no authorization, consent, approval or action by or in respect of, or filings with, any governmental body, agency or official or other person and (ii) do not contravene, conflict with, result in a breach of or constitute a default under any material provision of applicable law or regulation, or of any material agreement to which Company is a party or by which he is bound, or any judgment, order, decree or other instrument binding upon Seller. 

 

IV.Seller’s Conditions to Closing. 

 

4.1Accuracy of Representations. Each of the representations and warranties of Company contained in Article III shall be true, complete and correct in all respects. 

 

4.2No Action to Restrain. No statute, rule, regulation, judgment, injunction, order or decree shall have been enacted, entered, promulgated, enforced or deemed applicable by any court of 

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competent jurisdiction, arbitrator, government or governmental authority or agency, which statute, rule, regulation, judgment, injunction, order or decree shall be in effect and restrain, enjoin, prohibit or otherwise make illegal the consummation of the sale and purchase of the Seller Stock contemplated by this Agreement.

 

V.Company’s Conditions to Closing. 

 

5.1Accuracy of Representations. Each of the representations and warranties of Seller contained in Article II shall be true, complete and correct in all respects. 

 

5.2No Action to Restrain. No statute, rule, regulation, judgment, injunction, order or decree shall have been enacted, promulgated, enforced or deemed applicable by any court of competent jurisdiction, arbitrator, government or governmental authority or agency, which statute, rule, regulation, judgment, injunction, order or decree shall be in effect and restrain, enjoin, prohibit or otherwise make illegal the consummation of the sale and purchase of the Seller Stock contemplated by this Agreement. 

 

VI.Miscellaneous. 

 

6.2Indemnification. Seller shall indemnify, defend and hold harmless Company from and against any loss, liability, claim or damage (including incidental and consequential damages), expenses (including costs of investigation and defense and reasonable attorney's fees), whether or not involving a third-party claim, arising out of or in connection with the purchase of the Seller Stock up to an aggregate amount of the Purchase Price. 

 

6.3Binding Effect; Assignment. Except as provided to the contrary hereinabove, this Agreement shall apply to and shall be binding upon the parties hereto, their respective successors and assigns and all persons claiming by, through or under any of the aforesaid persons. 

 

6.4Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all other prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof. 

 

6.5Amendment. This Agreement may not be amended or modified, except by a written instrument signed by the parties hereto. 

 

6.6Applicable Law. This agreement and all transactions contemplated in this Agreement shall be governed by, construed and enforced in accordance with the laws of Nevada. The parties herein waive trial by jury and agree to submit to the personal jurisdiction and venue of a court of subject matter jurisdiction located in Nevada County, State of Nevada. In the event that litigation results from or arises out of this Agreement or the performance thereof, the parties agree to reimburse the prevailing party’s reasonable attorney’s fees, court costs and all other expenses, whether or not taxable by the court as costs, in addition to any other relief to which the prevailing party may be entitled. 

 

6.7Severability. In the event that any one or more of the provisions contained in this Agreement, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained in this Agreement shall not be in any way impaired, it being intended that all rights, powers and privileges of the parties hereto shall be enforceable to the fullest extent permitted by law. 

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6.8Notices. All notices and other communications provided for herein shall be in writing and shall be deemed to have been duly given when received. 

 

6.9Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument. 

 

IN WITNESS WHEREOF, Seller and Company have executed this Agreement as of

the date hereof.

 

 

4NOVATION TO IRREVOCABLE PURCHASE OFFER

 

THIS AGREEMENT (“Novation”) is made and entered into effective September 8, 2020, by and between DAVID MASSEY, as Shareholder (“Massey”) and SOLAR INTEGRATED ROOFING CORP., a Nevada Corporation (the “Company”). Massey and the Company may be referred to in this Agreement individually as a “Party” or collectively as the “Parties.”

 

RECITALS

 

WHEREAS, Massey and the Company entered into an Irrevocable Purchase Offer (the “Offer”) dated July 1, 2021, by which the Company offered to purchase five million (5,000,000) shares of Series B Preferred Stock (the “Stock”) from Massey (the “Transaction”);

 

WHEREAS, the Board of Directors of the Company agreed, in an Action by Unanimous Written Consent effective July 1, 2021 (the “Consent”), to complete the Transaction;

 

WHEREAS, Massey and the Company have mutually agreed that the Transaction as consummated was not in the best interests of the Parties considering certain facts and circumstances that have come to be known;

 

WHEREAS, Massey and the Company have executed a Mutual Rescission Agreement (the “Rescission Agreement”), effective September 8, 2020, that rescinds the Transaction in total;

 

WHEREAS, Massey and the Company desire to modify the original Offer and Consent concurrently with the rescission of the Transaction by execution of the Rescission Agreement, so that the Offer and Consent as modified by this Novation shall be effective nunc pro tunc.

 

NOVATION AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants and representations contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

1.The language and content of the Irrevocable Purchase Offer is hereby replaced in its entirety with the language included as Exhibit A to this Novation. 

2.The language and content of the Unanimous Written Consent is hereby replaced in its entirety with the language included as Exhibit B to this Novation. 

 

IN WITNESS WHEREOF, the Parties have executed this Rescission Agreement as of September 8, 2021.

 

SOLAR INTEGRATED ROOFING CORP

 

	BY:

	 

	 

	 

	 Troy Clymer, COO

	David Massey

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EXHIBIT A

 

IRREVOCABLE PURCHASE OFFER

 

This Irrevocable Purchase Offer (the "Offer") is made this 1st day of July, 2021 (the "Offer Date") to David Massey, an individual (“Massey”), the General Partner, Massey Family Trust LP (an Indiana limited partnership (the “Seller”), and by Solar Integrated Roofing Corp., a Nevada corporation (the "Buyer" or the "Company"). Buyer and Seller may be referred to in this Offer individually as a "Party" or collectively as the "Parties".

 

WHEREAS, Massey has been serving as the CEO of the Company since November 2016 and is the owner of record of two million five hundred thousand (2,500,000) shares of Company Series A Preferred Stock and six million five hundred thousand (6,500,000) shares of Company Series B Preferred Stock; and

 

WHEREAS, Massey has contributed by assignment five million shares of Company Series B Preferred Stock to Seller; and

 

WHEREAS, the Company wishes to purchase one million (1,000,000) shares of Series B Preferred Stock (the “Shares”) from Seller pursuant to the following terms and conditions:

 

ARTICLE I.

THE OFFER

 

Section 1.01Offer to Purchase. Company hereby offers to purchase the Shares from Massey, or the Massey Family Trust LP, or any other entity selected by Massey which has control of the Shares (collectively hereinafter “Massey” or the “Seller”), for Two Million US Dollars ($2,000,000 USD) (the “Purchase Price”). 

 

Section 1.02Payment. Upon acceptance of this Offer by Milholland and Seller, the Company shall pay the Purchase Price of Two Million US Dollars ($2,000,000 USD) to Seller. 

 

Section 1.03Irrevocability. This Offer shall remain open and is irrevocable by the Company for a period of thirty-one (31) days (“Offer Period”) from the Offer Date. 

 

Section 1.04Waiver, Hold Harmless from Transfer by Assignment. Company waives any costs and liability in Massey and/or Seller related to restrictions on transfer and securities obligations. Massey and Seller agree to sign such documents as Company may reasonably present to ensure that title rests appropriately in Company. 

 

ARTICLE II. 

Method of Acceptance

 

To accept this Offer, Milholland must deliver the following to the Company on or before the last day of the Offering Period:

 

(a)A copy of this Offer countersigned by Massey and Seller. 

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ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

Section 3.01By Seller. Upon acceptance of the Offer, Seller warrants and represents to Buyer as follows: 

 

(a)Seller is the owner in clear title of the Shares and the Shares are free of any lien, encumbrance, security interests, charges, mortgages, pledges, or adverse claim or other restriction that would prevent the transfer of clear title to the Buyer. 

 

(b)Seller is not bound by any offer or agreement that would prevent any of the transactions connected with this Offer. 

 

Section 3.02By Buyer. Buyer warrants and represents to Seller as follows: 

 

(a)Buyer is a corporation duly organized, validly existing and in good standing under the Laws of the State of Nevada and has full power and authority to enter this Offer. 

 

(b)Buyer is not bound by any Offer that would prevent any of the transactions connected with this Offer. 

 

ARTICLE IV.

CLOSING

 

Section 4.01Closing Date, Time, Location. Subject to the terms and conditions of this Offer, the Closing of the purchase and sale of the Shares (the "Closing") will take place as soon as reasonably possible after Massey’s and Seller’s acceptances of the Offer but no more than five 

(5) business days after the later date of (i) Massey’s and Seller’s acceptance or (ii) approval and ratification of the Company’s offer and Massey’s and Seller’s acceptance by the Company Board of Directors and any other necessary parties and written communication of such ratification to Massey and Seller. Closing may be handled remotely by exchange of documents and signatures (or their electronic counterparts), or at such other time or on such other date or at such other place as the Parties may mutually agree upon in writing (the day on which the Closing takes place being the "Closing Date").

 

Section 4.02Closing Deliverables. 

 

(a)By Buyer. At Closing, Buyer shall deliver to Seller the following: 

 

(i)Payment by wire transfer of immediately available funds an amount equal to the Purchase Price. 

 

(b)By Seller. At or prior to the Closing, Seller shall deliver to Buyer the document listed in Article II, sub-paragraph (a). 

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Section 4.03Conditions to Closing. 

 

(a)Board Approval. Prior to closing, Company shall obtain an executed resolution by the board of directors of the Company authorizing this Offer. Such resolution shall be attached to this Offer as Exhibit D. If board approval is unable to be obtained, this Offer shall be terminated and both parties shall be relieved of their respective obligations hereunder without penalty. 

 

ARTICLE V. 

MISCELLANEOUS

 

Section 5.01 Expenses. Each party agrees to pay their own costs and expenses in connection with this Offer.

 

Section 5.02 Governing Law. This Offer shall be governed by and construed in accordance with the internal laws of the State of Nevada without giving effect to any choice or conflict of law provision or rule.

 

Section 5.03 Counterparts. This Offer may be executed in counterparts. Facsimile signatures are binding and are considered to be original signatures.

 

Section 5.04Entire Offer. This Offer contains the entire agreements between the parties. All negotiations and understandings have been included in this Offer. Statements or representations which may have been made by any party to this Offer in the negotiation stages of this Offer may in some way be inconsistent with this final written Offer. All such statements are declared to be of no value in this Offer. Only the written terms of this Offer will be binding on the parties. 

 

Section 5.05Amendment or Modification; Waiver. This Offer may only be amended, modified or supplemented by writing signed by both Parties. Any failure of the Parties to comply with any obligation or condition herein may be waived by the other Party by a written instrument signed by the party granting such waiver. Such waiver shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure. 

 

IN WITNESS WHEREOF, the Company hereby extends this Offer to Massey as of the Offer Date first appearing above. The Offer shall be irrevocable until 5:00 pm Pacific Time on July 15, 2021.

 

(Remainder of page intentionally left blank; Signature page follows)

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	Sincerely,

	 

	 

	 

	 

	 

	Troy Clymer, COO

	 

	Solar Integrated Roofing Corp.

 

 

******************************************************************************

	Agreed and accepted:

	 

	David Massey

	 

	 

	 

	 

	 

	Agreed and accepted:

	 

	 

	 

	MASSEY FAMILY TRUST LP

	 

	 

	 

	 

	 

	By: David Massey 

Its: General Partner

	 

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