Document:

EXHIBIT 10.5
 

SETTLEMENT AGREEMENT AND GENERAL AND MUTUAL RELEASE

 

This Settlement Agreement and General and Mutual Release (the "Agreement") is on this 12th day of February 2015 by and between Belair Capital Markets (hereafter "Belair"), Franchise Holdings International, Inc. (hereafter "FNHI") and/or Truxmart Ltd. (hereafter "Truxmart"), (hereafter, collectively, Belair, FNHI and Truxmart are referred to as the "Clients") and Securities Counselors, Inc. ("SCI"), collectively the Parties.. 

 

WHEREAS, SCI was engaged by Truxmart to represent it (the "Representation") in con-junction with its acquisition of a trading vehicle for Truxmart's tonneau cover business, ultimately FNHI being selected. 

 

WHEREAS, Belair acting under an Advisory Agreement with Truxmart was the principal contact with SCI in conjunction with such Representation. 

 

WHEREAS, there is no dispute as to the quality of the Representation but both Parties acknowledge both unexpected impediments and efforts in conjunction with the Representation and that, as a result, significant cost overruns ensued, the net amount being in dispute and owing, including $8,250 in out of pocket disbursements in support of the Representation (the "Invoice"). 

 

WHEREAS, the Parties desire and intend that this Agreement supplement and modify all prior contracts, agreements and understandings between the Parties. 

 

WHEREAS, the Parties have engaged in a dispute as to the Invoice which did not result in litigation and the Parties wish to amicably resolve the dispute;

 

WHEREAS, the Parties desire and intend to fully, completely and finally resolve and terminate all disputes, claims and actions arising or related in any way to the their past dealings and the consequent disputes between them which arise out of or in any way relate to the same, all parties desirous of avoiding any disruption to the business of the Clients.

 

NOW, THEREFORE, the Parties, intending to be legally bound, and in consideration of the mutual promises, covenants and agreements contained herein and other good and valuable consideration, the sufficiency of which is hereby acknowledged, agree as follows:

 

	1. 	Settlement Payments Due to SCI from the Clients.
		
	a. 	The Clients shall pay to SCI the following amounts, an aggregate $42,500 (the "Cash Settlement") on the following timetable, to be transmitted via U.S. Federal Reserve Bank Wire, in U.S. dollars, in accordance with the following instructions to:

 

	
BANK: 
	
Wells Fargo N.A. 

7901 Wisconsin Avenue 
Bethesda, Maryland 20814

	 	
	
ACCOUNT NAME: 
	
Securities Counselors, Inc.

	
ACCOUNT NUMBER:
	
7658077487

	
ABA BANK ROUTING NUMBER: 
	
121000248

 

or any other address subsequently designated in writing by SCI. It is agreed and understood that the time is of the essence with respect to the payments.

 

	 
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	b. 	Timing/Amounts of Payments to SCI:

 

	
Concurrent with Execution of this Agreement:
	
 
	$	12,500	
 

	
On or about March 15, 2015: 
	
 
	$	5,000	
 

	
On or about April 15, 2015: 
	
 
	$	5,000	
 

	
On or about May 15, 2015: 
	
 
	$	5,000	
 

	
On or about June 15, 2015: 
	
 
	$	5,000	
 

	
On or about July 15, 2015: 
	
 
	$	5,000	
 

	
On or about August 15, 2015: 
	
 
	$	5,000	
 

  

	c. 	In addition, the Clients shall pay promptly Fred Harbecke (escrow counsel) his $1,400 balance due at the following address: Fred R. Harbecke, Esq., 29 S. LaSalle--Suite 945, Chicago, Illinois.

 

	2. 	FNHI Share Issuance. Upon execution of this Agreement, with appropriate instructions to the FNHI transfer agent,60,000 restricted FNHI common shares shall be issued to SCI, or its designee. Truxmart also agrees that it will include such 60,000 shares (so-called "piggy back rights") in the Form S-1 it intends to file this spring with the SEC under the Securities Act of 1933 to register certain primary and secondary sales of FNHI shares.
	 	
	3. 	SCI Performance Required. In consideration of the foregoing, SCI agrees to the following:
	
 
	
 

	
 
	
Immediately transfer all Rescission Offer Letters, confirming when/how/tracking number, to Matthew McMurdo, Esq., S-1 securities counsel; 

	
 
	
 

	
 
	
By week's-end, courier all FNHI-Truxmart files to Mr. McMurdo,confirming when/how/tracking number, to Mr. McMurdo; 

	
 
	
 

	
 
	
Forward concurrent with execution of this Agreement the draft no contingent liability opinion of counsel to be concluded and executed by Mr. McMurdo; and 

	
 
	
 

	
 
	
Draft and execute this Agreement as finalized by the Parties. 

 

	4. 	Releases.
	 	
	a. 	SCI, for itself, its principals and for any successors and assigns hereby irrevocably and unconditionally releases, acquits and forever discharges Belair, FNHI, Truxmart and any principals of any and any successors and assigns (and any officers, directors, shareholders, managers, members, employees, representatives, attorneys, consultants, and agents of such entities) (hereinafter referred to for purposes of this section as the "Clients"), from any and all claims, demands, rights, causes of action, liens, actions, suits, attorneys' fees, costs, damages, losses, expenses and contractual obligations of whatever kind or nature, whether absolute or contingent, liquidated or unliquidated, direct or indirect, in law or in equity, fully accrued or not fully accrued, matured or unmatured, known or unknown, foreseen or unforeseen, suspected or unsuspected, relating to any matter whatsoever (collectively, "Claims") which SCI currently has, shall or may have, from the beginning of the world through and including the date of this Agreement. Notwithstanding the foregoing, the release contained herein shall not release Clients from their obligations pursuant to this Agreement.

 

	 
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	b. 	Belair, Truxmart and/or FNHI for themselves and for their successors and assigns hereby irrevocably and unconditionally release, acquit and forever discharge SCI, any successors and assigns (and any officers, directors, shareholders, managers, members, employees, representatives, attorneys, consultants, and agents of such entities), from any and all Claims (as defined above) brought by SCI currently has, or may have, from the beginning of the world through and including the date of this Agreement. Notwithstanding the foregoing, the release contained herein shall not release the Clients from their obligations pursuant to this Agreement.
	 	
	5. 	No Admission. The Parties understand and agree that this Agreement is in compromise of disputed claims and that this Agreement shall not be construed as an admission of liability by one party to the other or that either party has violated any federal, state or local statute, law, ordinance or regulation.
	 	
	6. 	Binding Agreement. This Agreement supersedes all prior agreements between the Parties. This Agreement shall be binding upon the Parties hereto and their respective successors and assigns. The Parties agree and stipulate that this Agreement is enforceable in all respects and is not subject to any affirmative claim, once this Agreement is executed.
	 	
	7. 	Entire Agreement. This Agreement constitutes the entire and complete understanding between the Parties hereto, and no other representation, promise, or agreement shall be binding upon either of them unless it is in writing and executed by the Parties.
	 	
	8. 	Amendment. This Agreement may not be amended or modified in any manner except by a writing signed by each of the Parties hereto.
	 	
	9. 	Recitals. The Parties hereto acknowledge and agree that the recitals set forth at the beginning of this Agreement are true and correct in all respects and are incorporated herein by this reference.
	 	
	10. 	Governing Law; Venue. This Agreement is made and delivered in, and shall be governed by and construed in accordance with, the applicable laws of the State of Illinois. Any suit involving any dispute or matter arising under this Agreement, the Parties hereby consent to personal jurisdiction in the State of Illinois and the Parties hereby agree that the exclusive venue shall be the Illinois Circuit Court in and for Cook County, Illinois.
	 	
	11. 	Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable, the provision shall be modified to the extent necessary to render it enforceable and, if necessary, shall be fully severable.
	 	
	12. 	Authority. Each signer below warrants that he/she has actual authority to enter into this Agreement. It is understood that each party to this Agreement is relying on the other party executing his Agreement having actual authority to enter into the Agreement.
	 	
	13. 	Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same Agreement and each of which shall be deemed an original. An executed counterpart of this Agreement faxed or scanned and emailed shall have the same force and effect as an originally executed counterpart.
	 	
	14. 	Waiver of Jury Trial. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.
	 	
	15. 	Encouragement to Consult Attorney; Time to Consider Agreement. EACH OF PARTIES REPRESENTS THAT THIS AGREEMENT HAS BEEN ENTERED INTO FREELY AND VOLUNTARILY; THAT IT HAS HAD THE OPPORTUNITY TO ASCERTAIN AND WEIGH ALL OF THE FACTS AND CIRCUMSTANCES LIKELY TO INFLUENCE ITS JUDG-MENTS; THAT IT HAS HAD THE OPPORTUNITY TO SEEK AND OBTAIN LEGAL COUNSEL, AND HAS AVAILED ITSELF OF COUNSEL PRIOR TO SIGNING THIS AGREEMENT, AND TO BE DULY APPRISED OF ITS LEGAL RIGHTS; AND THAT IT HAS READ AND FULLY UNDERSTANDS THE TERMS OF THE AGREEMENT.

 

	 
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IN WITNESS WHEREOF, the Parties have made and entered into this Settlement Agreement as of the date set forth above.

 

	
 
	Belair Capital Markets	
 

	 	 	 	 
	Dated: February 11, 2015 	By:	/s/ Joseph J. Duggan 	
 

	
 
	
 
	Joseph J. Duggan 	
 

	
 
	
 
	 	
 

	
  
	
 
	
 
	
 

	
 
	
Truxmart Ltd. 
	
 

	
 
	
 
	
 
	
 

	
Dated: February 11, 2015
	
By:
	
/s/ Steven Rossi 
	
 

	
 
	
 
	
Steven Rossi
	
 

	
 
	
 
	
 
	
 

	
  
	
 
	
 
	
 

	
 
	
Franchise Holdings International, Inc.
	
 

	
 
	
 
	
 
	
 

	
Dated: February 11, 2015
	
By:
	
/s/ Steven Rossi
	
 

	
 
	
 
	
Steven Rossi
	
 

	
 
	
 
	
 
	
 

	
  
	
 
	
 
	
 

	
 
	
Securities Counselors, Inc.
	
 

	
 
	
 
	
 
	
 

	
Dated: February 11, 2015
	
By:
	
/s/ Carl N. Duncan
	
 

	
 
	
 
	
Carl N. Duncan, Esq.
	
 

 

 

4EXHIBIT 10.6

 

BUSINESS SERVICES AGREEMENT

 

THIS BUSINESS SERVICES AGREEMENT (the "Agreement") is entered into and is effective as of the 1st day of June 2015 by and between Franchise Holdings International Inc., a Nevada Corporation with principal offices and facilities in 8820 Jane Street, Vaughn, Ontario L4K 2M8 (the "Company"), and 1369781 Ontario Ltd., an Ontario Corporation with principal offices at 81 Templewood Crescent, Woodbridge, ON L4H 3P5(the "Consultant"). The term "Parties" and "Party", as used in this Agreement, shall refer to the Company and the Consultant jointly and individually, respectively.

 

WHEREAS:

 

	A. 	the Company seeks to compensate the Consultant for certain "Services" rendered to date during 2015, and to engage the services of the Consultant to continue to advise the Company's management regarding the provision of certain "Services" as defined herein; and
		
	B. 	subject to the terms and conditions of this Agreement, the Consultant is willing to enter into this Agreement for the compensation of past Services and continue to provide the Services.

 

NOW THEREFORE THIS AGREEMENT WITNESSES that pursuant to the premises and in consideration of the mutual covenants contained in this Agreement and the agreement of the Consultant to provide the Services (as defined in Section 1.1 of this Agreement) to the Company, the parties covenant and agree as follows:

 

	1. 	THE SERVICES:
	 	
	1. 	Description of the Services. In consideration for the Company's performance of its obligations as set forth in this Agreement, the Consultant has during the 2015 fiscal period to date has provided, and agrees to continue to provide the following services to the Company: provision of strategic financial advice on potential funding alternatives, capital structure planning, public listing alternatives, valuation development and related issues, finance strategies, capital structure management and board of director vetting and recruitment (collectively, the "Services").
	 	
	2. 	Affiliates of the Consultant. The Company agrees that the Consultant shall have the right, but not the obligation, to affiliate with any one or more other persons to assist the Consultant in performing the Services, as the Consultant in its sole discretion deems appropriate. However, the Parties agree that the Consultant shall bear and assume all costs and responsibilities in connection with any such affiliation and that the Consultant shall take reasonable efforts to ensure that any person employed, contracted or affiliated to undertake any of the Services shall be required to provide the Company, upon request, with reasonable assurances that all information and documents acquired by said person are and shall continue to remain confidential.

 

	2. 	COMPENSATION FOR THE SERVICES:
		
	1. 	Fee to be Paid to the Consultant. In consideration for the Services provided to date during 2015 and for entering into this Agreement and agreeing to continue to provide the Services, the Company shall offer the Consultant the opportunity to purchase the sum of three million three hundred thousand (3,300,000) restricted shares of the Company's Common Stock (the "Fee" or the "Shares"), duly registered in the name of the Consultant and/or designate, at a discounted price of $0.001 per Share, pursuant to the attached Subscription Agreement. The Shares shall be common shares, and tradable after their lawful restricted period. The Company shall and within five (5) calendar days of this Agreement, cause to be delivered to the Consultant, a stock certificate representing the Shares, at the Consultant's address stated on the first page of this Agreement or such addressed as previously provided by the Consultant.

 

	 
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	2. 	Delivery of the Shares. The Shares shall be delivered to the Consultant with the documentations set forth in Section 2.3 of this Agreement and at the Company's sole expense. Further, the Company shall assume all expenses and responsibilities for all legal opinions, stock transfer agent fees and costs, and any other expenses relating to the issuance of the Shares to the Consultant. The Company shall make and assume all responsibility for timely completing all arrangements to cause the Shares to be issued to the Consultant pursuant to this Agreement.
		
	3. 	Documents to be Delivered with the Shares. In addition to the Company's obligation to deliver the Shares to the Company in accordance with Section 2.1 of this Agreement, if requested the Company also agrees to deliver the following additional documents with the Shares:

 

		a. 	a true photocopy of the legal opinion, issued by the Company's legal counsel and addressed jointly to the Consultant and the Company's common stock transfer agent (the "Transfer Agent"), opining as to the status of the Shares in the hands of the Consultant that the Shares are fully paid-for, validly issued, and non-assessable;
	 		
		b. 	a true photocopy of all correspondence between the Company and the Transfer Agent with respect to the Shares acquired by the Consultant under this Agreement; and
	 		
		c. 	a true photocopy of the resolutions adopted by the Company's Board of Directors that approve, authorize, ratify and consent to the Company:
	
 
	
 
	
 

	
 
	
 
	
i.    entering into this Agreement; and

	
 
	
 
	
 

	
 
	
 
	
ii.    issuing of the Shares to the Consultant.

 

	3. 	REPRESENTATIONS AND WARRANTIES:
		
	1. 	The Company represents and warrants to the Consultant and acknowledges that the Consultant is relying upon such representations and warranties in connection with the execution, delivery and performance of this Agreement, notwithstanding any investigation made by or on behalf of the Consultant, as follows:

 

		a. 	Organization and Good Standing. The Company is duly incorporated, organized, validly existing and in good standing under the laws of Canada and has all requisite corporate power and authority to own, lease and to carry on its business as now being conducted. The Company is qualified to do business and is in good standing as a foreign corporation in each of the jurisdictions in which it owns property, leases property, does business, or is otherwise required to do so; and
			
		b. 	
The Shares Issued to the Consultant. All of the Shares issued to the Consultant shall be newly issued restricted shares and free from any claims or interests of any third party.

 

	2. 	The Consultant represents and warrants to the Company and acknowledges that the Company is relying upon such representations and warranties in connection with the execution, delivery and performance of this Agreement, notwithstanding any investigation made by or on behalf of the Company, as follows:

 

		a. 	The Consultant is experienced and sophisticated in making investments for the purchase of the securities of small, companies whose securities are traded on a limited basis;
	 		
		b. 	Accredited Investor Exemption. The Consultant is acquiring the Shares as principal for its own account for investment purposes only, not for the benefit of another person and not with a view to the resale or distribution of all or any of the Shares and it is an accredited investor, in which case the Consultant must complete and include Schedule "A" attached hereto;
	 		
		c. 	Non-U.S. Person. The Consultant is not a "US Person," as such term is defined in Rule 902(k) of Regulation S promulgated under the Unites States Securities Act of 1933, as amended ("Securities Act"), and is not acquiring the Shares for the benefit of a US Person.

 

	 
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	4. 	ADDITIONAL COVENANTS:
	 	
	1.	Officer's Certificate. In furtherance of the status of the Shares issued to the Consultant, the Company hereby also agrees to deliver to the Consultant within five (5) days of the date of this Agreement, with this Agreement, the certificate of corporate officer with the representations set forth in Section 3.1 of this Agreement therein.
	 	
	2. 	Expenses. The Company agrees to reimburse and advance funds to the Consultant, as reasonably requested by the Consultant, for all reasonable costs and expenses incurred or anticipated by the Consultant pursuant to the rendering of the Services to the Company (the "Expenses") if the same are approved in writing and in advance by the Company. The Expenses shall include all costs and expenses reasonably incurred by the Consultant for travel, lodging, overnight express delivery charges, telecopier expenses (at $0.20 per page), photocopying expenses (at $0.20 per page), telephone expenses, and together with such costs and expenses. If funds have not been advanced to the Consultant for any one or more Expenses, the Company agrees to promptly and without delay reimburse the Consultant by delivering payment therefore within five (5) calendar days from the date of such Statement (as defined herein below) that is received by the Company.
	 	
	3. 	Statement of the Expenses. The Consultant shall provide the Company with a reasonable statement on a monthly basis for all Expenses referred to in Section 4.2 of the Agreement (each, a "Statement").
	 	
	4. 	Documents of the Company. The Company shall provide the Consultant, with a copy of all internal and business plans, corporate strategy memoranda, and all related reports, schedules, exhibits, and all related documentation reasonably needed by the Consultant (the "Company Documentation") for the tasks assigned to the Consultant and described in Section 1.1 of this Agreement. The Company Documentation, which may be amended or supplemented as the Parties determine, shall be provided to the Consultant no later than two (2) business days from the date of this Agreement. The Company agrees to promptly and without delay provide the Consultant with a copy of all amendments, supplements and additions to the Company Documentation, as received, issued or developed by the Company at all times thereafter during the Term (as defined below) and any additional documentation that the Consultant may reasonably request.
	 	
	5. 	Delivery of Company Documentation. Any amendments, additions and supplements to the Company Documentation shall be delivered to the Consultant, at the sole expense of the Company, within two (2) business days from the date at which any said amendment, addition or supplement is received, issued or developed by the Company or the date at which the same is requested by the Consultant, whichever is earlier. In all matters, the Company agrees to cooperate with the Consultant, provide the Consultant with copies of all reports, correspondence, agreements, other documents and information reasonably requested by the Consultant in a timely manner to ensure that the Consultant is able to undertake a timely review and evaluation of the current plans and strategies of the Company. The Parties hereto expressly agree that the Consultant's review and evaluation of the Company's affairs requires that the obligations imposed under this Sections 4.5 and 4.6 of this Agreement shall be broadly construed but the Parties agree that if the Company requires any information to remain confidential, the Consultant and the Consultant's agents shall not release or disclose any said information without the prior written consent of the Company.

 

	 
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	6. 	Accuracy of Company Documents. The Company agrees that all information and documents that it provides the Consultant (the "Company Documents") at the inception of this Agreement and at all times thereafter, shall be accurate and complete without containing any material omission that would constitute a misrepresentation and that the Company shall, at all times during the term of this Agreement, assume and retain an unqualified obligation to promptly and without delay update and correct all information and documents provided to Consultant and provide the Consultant with copies of all press releases, public statements, filings, and all other disclosures that it makes so as to ensure that the Consultant does not use or employ any information regarding the Company that is inaccurate or incomplete in any material respect.
		
	7. 	Responsibility to Approve the Consultant's Statements. The Company agrees that it shall, upon request of the Consultant, promptly and without delay, review and evaluate all documents and statements that may be prepared by the Consultant prior to any public distribution or publication to ensure that the same are and shall be, upon distribution and publication, accurate and complete in every respect without any material misrepresentation including the omission of material information. The Consultant shall, as it completes the tasks assigned to it under this Agreement, submit proposed drafts of documents to the Company for its review and approval at least five (5) business days and not more than 20 business days prior to any plan public distribution or publication.
		
	5. 	INDEMNIFICATION:
		
	1. 	Company Documentation and Information. The Company agrees that it shall, at all times, assume full and unqualified responsibility to provide the Consultant with accurate and complete information and documentation regarding the Company and its affairs, prospects, and plans. To further the Consultant's use of the information and documentation, the Company hereby agrees to reasonably indemnify and hold the Consultant and its officers, directors, employees, agents, attorneys, and affiliates harmless from and against any and all liabilities, losses, damages, costs, expenses (including attorneys' fees, costs, anddisbursements) incurred by the Consultant (collectively, as "Covered Amounts") in connection with any existing or later asserted dispute, claim, action, or proceeding (whether civil, criminal, or administrative) (collectively, the "Claim") which arises out of any claims, demands, causes of action, or other facts or circumstances which assert that any documentation, information (including any Company Documentation and anyone or more supplements and amendments thereto), press releases, public statements, letters, documents, notes, memoranda, emails, facsimile transmissions or other documents (the "Public Information") approved or delivered by the Company and used by the Consultant, are inaccurate, incomplete, or violate any provincial, state or federal securities law or other statutes, rules, or securities regulation except where a court of final and competent jurisdiction or arbitrator determines that such claim resulted solely from the fraud, negligence or wilful misconduct of such indemnified party. The terms "approved or delivered by the Company" as used in this Section 5.1 of this Agreement shall be construed to include all written or electronic documents and written or electronic information provided to the Consultant by the Company, its officers, directors, employees, agents, attorneys, and affiliates (collectively, as "Company Representatives") whether in paper or electronic form.
		
	2. 	Use of the Public Information. The Consultant shall (A) submit all proposed Public Information to the Company for its review and evaluation in advance of any use or distribution of any Public Information; and (B) shall have the right to reasonably rely upon its receipt of any Public Information received from Company Representatives indicating that such Public Information has been approved by the Company and the same may be released and distributed by the Consultant upon such terms as the Consultant, in the sole exercise of its discretion, may determine. In the event that any approved Public Information is released or distributed by the Consultant, the Company, or if both of them subsequently determine that the Public Information is or later becomes inaccurate or incomplete in some material respect, the Company shall, at its sole expense, undertake all efforts to correct said prior release of Public Information and take such other steps on a timely basis (in view of the circumstances of said prior release and distribution of Public Information) as the Consultant may reasonably advise. Any said action to correct said prior release of Public Information shall, to the extent possible, serve to inform the public capital markets and any person who directly or personally received the prior release of Public Information, of the nature and extent of the corrected information.

 

	 
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	6. 	CONFIDENTIALITY:
		
	1. 	Proprietary Information. It is understood and agreed that, in the course of the Consultant providing the Services and through the activities contemplated by this Agreement, the Consultant on behalf of itself and on behalf of all of the Consultant's employees and agents and affiliates, agrees to keep and hold all the Proprietary Information (as defined in Section 6.2 of this Agreement) in trust and confidence for the Company.
		
	2. 	Confidentiality. The Consultant further agrees that it shall not, during the Term (as defined below) or thereafter, in any fashion, form or manner, directly or indirectly, retain use, make copies of, divulge, disclose or communicate to any person, in any manner whatsoever, except when necessary or reasonably needed in the normal course of providing the Services and for the benefit of the Company or with the express prior written consent of the Company, share or distribute any of the Proprietary Information (as defined below) or any information of any kind, nature, or description whatsoever concerning any matter affecting or relating to the Company's business. For purposes of this Agreement, "Proprietary Information" means and includes the following: (1) any written, typed or printed lists or other materials identifying the business, products, or strategy conducted by or on behalf of the Company; (2) any financial or other information supplied by customers of the Company; (3) any and all data or information involving the techniques, programs, methods or contracts employed by the Company in the conduct of its business; (4) any lists, documents, manuals, records, forms, or other materials created and used by the Company in the conduct of its business; (5) any descriptive materials describing the methods and procedures employed by the Company in the conduct of its business; and (6) any other secret or confidential information concerning the Company's business, affairs or technology. The term "list", "document", or their equivalent, as used in this Section 6.2 of this Agreement, are not limited to a physical writing or compilation, but also include computer software and any and all information whatsoever regarding the subject matter in the "list" or "document" whether or not such compilation has been reduced to writing. Notwithstanding the foregoing, Proprietary Information shall cease to be protected hereunder once it has become part of the public domain, or upon the written agreement of the Company.
		
	3. 	Disclosure of Shares by the Consultant. The Parties acknowledge and agree that the Consultant shall have the right to publicly disclose the acquisition and the amount of the Shares and any other monies or other funds that it receives in connection with this Agreement as may be required under any and all applicable laws, regulations, orders and rules, and including any applicable securities laws, self-regulatory organization rules and regulations as the Consultant reasonably determines in the exercise of its judgment.
		
	7. 	THE TERM:
		
	1. 	Term. The term of this Agreement shall be for a period of one hundred eighty (180) days (the "Term") but the Term may be terminated by either Party hereto at any time with cause upon ten (10) days' written notice to the other Party. Any termination of this Agreement shall not have any effect on the Shares already issued to and acquired by the Consultant under this Agreement, the rights and privileges of the Consultant as the owner and holder of the Shares issued to the Consultant under this Agreement, the obligation of the Company to reimburse the Consultant for any Expenses, the ability of the Consultant to sell or transfer the Shares, or the obligations of the Consultant to preserve and hold all Proprietary Information as provided by Section 6.2 of this Agreement.

 

	 
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	8. 	GENERAL:
		 
	1. 	Successors. The provisions of this Agreement shall be deemed to obligate, extend to and inure to the benefit of the successors of each of the Parties to this Agreement.
		 
	2. 	Independent Legal and Financial Advice. Each of the Parties to this Agreement acknowledges and agrees that it has been represented by or consulted independent legal counsel of its own choice throughout all negotiations in connection with its the execution of this Agreement and the transactions referred to in this Agreement, and each has obtained whatever financial and tax advice that it deems necessary or appropriate and each Party represents that it:

 

		a. 	fully understands each provision of this Agreement;
	 		 
		b. 	has been requested by the other Party to obtain its own independent legal and financial advice on this Agreement prior to signing this Agreement;
	 		 
		c. 	been given adequate time to obtain independent legal and financial advice;
	 		 
		d. 	by signing this Agreement, confirms that it fully understands this Agreement; and
	 		 
		e. 	by signing this Agreement without first obtaining independent legal or financial advice, waives his right to obtain independent legal and financial advice.

 

	3. 	Integration. This Agreement the entire agreement and understanding between the parties and supersedes and replaces all prior negotiations and agreements of the parties, whether written or unwritten, or related thereto. Each of the Parties to this Agreement acknowledges that no other Party, nor any agent or attorney of any other Party has made any promises, representations, or warranty whatsoever, express or implied, which is not expressly contained in this Agreement; and each Party further acknowledges that he or it has not executed this Agreement in reliance upon any belief as to any fact not expressly recited herein above.
		 
	4. 	Attorneys Fees. In the event of a dispute between the Parties concerning the enforcement or interpretation of this Agreement, the prevailing Party in such dispute, whether by legal proceedings or otherwise, shall be reimbursed immediately for the reasonably incurred attorneys' fees and other costs and expenses by the other Parties to the dispute.
		
	5. 	Interpretation. Wherever the context so requires: the singular number shall include the plural; the plural shall include the singular; and the masculine gender shall include the feminine and neuter genders.
	 	 
	6. 	Status of the Consultant. The Parties acknowledge and agree that at all times hereunder: (a) the Consultant is not an employee or agent of the Company; (b) the Consultant is an independent contractor of the Company; and (c) the Consultant shall have the right to reasonably rely upon the representations, statements, and instructions that it receives from any officer, director, employee, or agent of the Company.
		  
	7. 	Captions & Exhibits. The captions by which the sections and subsections of this Agreement are identified are for convenience only, and shall have no effect whatsoever upon its interpretation.

 

	 
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	8. 	Amendments. No amendment to this Agreement shall be effective unless the same shall be in writing and executed by the parties.
		 
	9. 	Severance. If any provision of this Agreement is held to be illegal or invalid by a court of competent jurisdiction, such provision shall be deemed to be severed and deleted; and neither such provision, nor its severance and deletion, shall affect the validity of the remaining provisions.
		 
	10. 	Counterparts & Choice of Law. This Agreement may be executed in any number of counterparts as necessary. This Agreement shall be governed by the laws of the Province of Ontario as if this Agreement was entirely performed and acts contemplated by this Agreement were rendered solely within the Province of Ontario.
		 
	11. 	Expenses Associated With This Agreement. Each of the Parties hereto agrees to bear its own costs, attorneys' fees and related expenses associated with this Agreement.
		 
	12. 	Power to Bind. A responsible officer of the Company has read and understands the contents of this Agreement and is empowered and duly authorized on behalf of the Company to execute it.
		 
	13. 	Equitable Remedies. In the event of any breach of this Agreement, the provisions of this Agreement may be enforceable in a court of equity by a decree of specific performance. Any equitable remedy shall not be exclusive and shall be in addition to any other remedy available.
		 
	14. 	Arbitration. Any dispute or claim arising to or in any way related to this Agreement shall be settled arbitration in Toronto, Canada. All arbitration shall be conducted in accordance with the rules and regulations of the Canadian Arbitration Association ("CAA"). CAA shall designate an arbitrator from an approved list of arbitrators following both parties review and deletion of those arbitrators on the approved list having a conflict of interest with either Party. Each Party shall pay its own expense associated with such arbitration (except as set forth in Section 6.0.4 above). A demand for arbitration shall be made within a reasonable time after the claim, dispute or other matter has arisen and in no event shall such demand be made after the date when institution of legal or equitable proceedings based on such claim dispute or other matter in question would be barred by the applicable statutes of limitations. The decision of the arbitrators shall be rendered within 60 days of submission of an claim or dispute, shall be in writing and mailed to all the parties included in the arbitration. The decision of the arbitrator shall be binding upon the parties and judgment in accordance with that decision may be entered in any court having jurisdiction thereof.

 

	 
	7

	

	 

 

IN WITNESS WHEREOF, the parties have executed this agreement as of the date set forth above.

 

	THE COMPANY:	
 

	 	  	 
	By:	/s/ Steve Rossi	
 

	
Print Name: 
	
Steve Rossi
	
 

	
Title/Position: 
	President	
 

	
 
	
  
	
 

	
 
	
  
	
 

	
THE CONSULTANT: 
	
 

	
 
	
 

	
By:
	
/s/ Joseph Bernaudo
	
 

	
Print Name:
	
Joseph Bernaudo
	
 

	
Title/Position:  
	
President
	
 

  

	 
	8

	

	 

 

Schedule "A"

 

ACCREDITED INVESTOR CERTIFICATE

 

(To be completed by Accredited Investors only)

 

The undersigned (the "Investor") hereby confirms and certifies to TruxMart Inc. (the "Company") that the Investor is acquiring the Shares as principal and that the Investor is an "Accredited Investor" as defined in National Instrument 45-106 ("NI 45-106") and is: [check appropriate boxes]

 

		(a) 	a Canadian financial institution, or a Schedule III bank,
	 		 
		(b) 	the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada),
	 		 
		(c) 	a subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary,
	 		 
		(d) 	a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer, other than a person registered solely as a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador),
	 		 
		(e) 	an individual registered or formerly registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d),
	 		 
		(f) 	the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly owned entity of the Government of Canada or a jurisdiction of Canada,
	 		 
		(g) 	a municipality, public board or commission in Canada and a metropolitan community, school board, the ComitÉ de gestion de la taxe scolaire de l'Île de MontrÉal or an intermunicipal management board in QuÉbec,
	 		 
		(h) 	any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government,
	 		 
		(i) 	a pension fund that is regulated by the Office of the Superintendent of Financial Institutions (Canada), a pension commission or similar regulatory authority of a jurisdiction of Canada,

 

	 
	9

	

	 

 

		(j) 	an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000,
	 		 
		(k) 	an individual whose net income before taxes exceeded $200,000 in each of the 2 most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the 2 most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year,
	 		 
		(l) 	an individual who, either alone or with a spouse, has net assets of at least $5,000,000,
	 		 
		(m) 	a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements,
	 		 
		(n) 	an investment fund that distributes or has distributed its securities only to
	
 
	
 
	
  

	
 
	
 
	
(i)    a person that is or was an accredited investor at the time of the distribution,

	
 
	
 
	
  

	
 
	
 
	
(ii)    a person that acquires or acquired securities in the circumstances referred to in sections 2.10 [Minimum amount investment], or 2.19 [Additional investment in investment funds], or

	
 
	
 
	
  

	
 
	
 
	
(iii)    a person described in paragraph (i) or (ii) that acquires or acquired securities under section 2.18 [Investment fund reinvestment],

 

		(o) 	an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in QuÉbec, the securities regulatory authority, has issued a receipt,
	 		 
		(p) 	a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be,
	 		 
		(q) 	a person acting on behalf of a fully managed account managed by that person, if that person
	
 
	
 
	
  

	
 
	
 
	
(i)    is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction, and

	
 
	
 
	
 

	
 
	
 
	
(ii)   in Ontario, is purchasing a security that is not a security of an investment fund,

   
		(r) 	a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded,
	 		 
		(s) 	an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function,
	 		 
		(t) 	a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors,
	 		 
		(u) 	an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser, or
	 		 
		(v) 	a person that is recognized or designated by the securities regulatory authority or, except in Ontario and QuÉbec, the regulator as an accredited investor;

 

and for purposes hereof, words and phrases which are used in this Accredited Investor Certificate and which are defined in NI 45-106 shall have the meaning ascribed thereto in NI 45-106.

 

The Investor hereby further confirms and certifies to the Company that the Investor is not an entity created or used solely to purchase or hold the Units in the category of Accredited Investor described in Section (d) above.

 

	 
	10

	

	 

 

EXECUTED by the Investor at _____________________, this ________ day of __________ , 2015.

 

	
If a corporation, partnership or other entity:
	
 
	
If an Individual:
	
 

	
  
	
 
	
 
	
 

	 	
 
	
 
	
 

	
Signature of Authorized Signatory
	
 
		
 

	
 
	
 
	
Signature 
	
 

	 	
 
	
 
	
 

	
Name and Position of Signatory
	
 
	 	
 

	
 
	
 
	
Print Name
	
 

	 	
 
	
 
	
 

	
Name of Purchasing Entity
	
 
	 	
 

	
 
	
 
	
Jurisdiction of Residence
	
 

	 	
 
	
 
	
 

	
Jurisdiction of Residence
	
 
	
 
	
 

 

 

11

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