Document:

Exhibit
10.5

 

WAIVER
AND CONSENT AGREEMENT

 

This
WAIVER AND CONSENT AGREEMENT (this “Agreement”) is made and entered into as of June 28, 2017 by and between Inpixon
(f/k/a Sysorex Global) (the “Company”), and the purchaser identified on the signature page hereto (the “Purchaser”).
Capitalized terms used herein but not herein defined shall have the respective meanings ascribed thereto in that certain securities
purchase agreement (the “December 2016 SPA”) dated as of December 12, 2016 by and among the Company, the Purchaser
and other purchasers party thereto (the “Other Purchasers”). The Company and the Purchaser are sometimes referred
to in this Agreement singularly as a “party” and collectively as the “parties”.

 

RECITALS

 

WHEREAS,
Section 4.12(b) of the December 2016 SPA, referred to herein as the “Variable Rate Transaction Prohibition,” states
in pertinent part:

 

“From
the date hereof until such time as no Purchaser holds any of the Warrants, the Company shall be prohibited from effecting or entering
into an agreement to effect any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents
(or a combination of units thereof) involving a Variable Rate Transaction. “Variable Rate Transaction” means a transaction
in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable or exercisable
for, or include the right to receive additional shares of Common Stock either (A) at a conversion price, exercise price or exchange
rate or other price that is based upon and/or varies with the trading prices of or quotations for the shares of Common Stock at
any time after the initial issuance of such debt or equity securities, or (B)
with a conversion, exercise or exchange
price that is subject to being reset at some future date after the initial issuance of such debt or equity security or upon the
occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the
Common Stock or (ii) enters into, or effects a transaction under, any agreement, including, but not limited to, an equity line
of credit, whereby the Company may issue securities at a future determined price. Any Purchaser shall be entitled to obtain injunctive
relief against the Company to preclude any such issuance, which remedy shall be in addition to any right to collect damages.”

 

WHEREAS,
the Company has filed a Registration Statement with the Securities and Exchange Commission, as may be amended (File No. 333-218173)
(the “Registration Statement”) in connection with an offering of the Company’s securities (the “Offering”);
and

 

WHEREAS,
in connection with the Offering, the Company will issue warrants (the “Offering Warrants”) which may contain a
price protection provision to adjust the exercise price of such Offering Warrants if, subject to certain exempt issuances, the
Company issues securities pursuant to which the holder of such securities may acquire shares of Common Stock at a price per share
that is lower than the exercise price of the Offering Warrants (the “Price Protection”).

 

WHEREAS,
in consideration for the waiver and consent set forth in Section 1 below, the parties agree to amend the warrants (the “December
2016 Warrants”) issued pursuant to the December 2016 SPA as set forth herein.

  

     

     

    

 

NOW,
THEREFORE, in consideration of the mutual covenants of the parties as hereinafter set forth and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

 

AGREEMENT

 

1.
Waiver and Consent.

 

(a)
The Purchasers hereby waive the Variable Rate Transaction Prohibition solely in connection with the issuance of the Offering Warrants
with a Price Protection provision upon the closing of the Offering.

 

(b)
This Agreement is a one-time waiver and limited to the matters expressly waived herein and should not be construed as an indication
that the Purchasers would be willing to agree to any future modifications to or waiver of any of the terms of the December 2016
SPA. Except as expressly set forth above, the terms and conditions of the December 2016 SPA shall remain in full force and effect
and each of the Company and the Purchasers reserves all rights with respect to any other matters and remedies.

 

2.
Amendment to Warrant. (a) Section 2(b) of the December 2016 Warrants is hereby amended and restated by deleting the exiting
provision and replacing it in its entirety as follows:

 

“(b)
Exercise Price. The exercise price per share of the Common Stock under this Warrant shall equal the Exercise Price (as
defined in the Warrant Agency Agreement governing the warrants (the “Offering Warrants”) to be issued pursuant to
that certain Registration Statement with the Securities and Exchange Commission, as may be amended (File No. 333-218173) in connection
with an offering of the Company’s securities), subject to adjustment hereunder (the “Exercise Price”).”

 

(b)
The December 2016 Warrant is hereby amended by adding the following provision as a new Section 3(g):

 

“(g)
Adjustment to Exercise Price Upon Issuance of Common Stock. From the date hereof until the date on which no Warrants remain
outstanding and except in the case of an event described in Section 3(a), if the Company shall issue or sell any Common Stock
for a consideration per share less than the Exercise Price in effect immediately prior to the time of such issue or sale, then,
immediately upon such issue or sale, the Exercise Price in effect immediately prior to such issuance or sale (or deemed issuance
or sale) shall be reduced (and in no event increased) to an Exercise Price equal to the lowest price per share at which any such
share of Common Stock has been issued or sold (or is deemed to have been issued or sold); provided, that the Exercise Price shall
not be less than $0.50. Notwithstanding the foregoing, no adjustments shall be made, paid or issued under this Section 4.5 in
respect of an Exempt Issuance. For purposes of this Section 3(g), “Exempt Issuance” means the issuance of (a) shares
of Common Stock, options or other equity-based awards to employees, consultants, officers or directors of the Company pursuant
to any agreement or stock or option plan duly adopted for such purpose, by a majority of the members of the Board of Directors,
or a committee of the Board of Directors established for such purpose, (b) securities upon the exercise or exchange of or conversion
of any Securities issued hereunder and/or other securities exercisable or exchangeable for or convertible into shares of Common
Stock issued and outstanding on the date of this Agreement, provided that such securities have not been amended since the date
of this Agreement to increase the number of such securities or to decrease the exercise price, exchange price or conversion price
of such securities (other than in connection with stock splits or combinations) or to extend the term of such securities, (c)
securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of
the Company, provided that any such issuance shall only be to a Person (or to the equityholders of a Person) which is, itself
or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of the Company
and shall provide to the Company additional benefits in addition to the investment of funds, but shall not include a transaction
in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business
is investing in securities, and (d) securities issued in connection with a loan from a commercial bank or other credit facility.”

 

    	 	2	 

     

    

 

3.
Miscellaneous.

 

(a)
This Agreement contains the entire agreement of the Company and the Purchasers with respect to the subject matter hereof and supersedes
all prior agreements and understandings, oral or written, with respect to such matters. This Agreement shall inure to the benefit
of and be binding upon the Company and the Purchasers and their respective successors and permitted assigns. This Agreement may
not be amended, modified or supplemented, and no provision of this Agreement may be waived, other than by a written instrument
duly executed and delivered by a duly authorized officer of each party hereto.

 

(b)
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal
courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any
Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding
is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service of process
and consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified mail
or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party shall commence
an Action or Proceeding to enforce any provisions of this Agreement, the prevailing party in such Action or Proceeding shall be
expenses incurred with the investigation, preparation and prosecution of such Action or Proceeding.

 

(c)
This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original
and, all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by
facsimile transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such
signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

 

(d)
The Company shall file a Current Report on Form 8-K with the Securities and Exchange Commission (the “Public Disclosure”)
disclosing the existence of this Agreement and the Other Agreements (as defined below). From and after the Public Disclosure,
the Purchaser not shall be in possession of any material, nonpublic information received from the Company, any of its Subsidiaries
or any of their respective officers, directors, employees, affiliates or agents that is not disclosed in the Public Disclosure.
In addition, effective upon the filing of the Public Disclosure, the Company acknowledges and agrees that any and all confidentiality
or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their
respective officers, directors, affiliates, employees or agents, on the one hand, and the Purchaser or any of its affiliates,
on the other hand, shall terminate. The Company shall not, and shall cause each of its Subsidiaries and its and each of their
respective officers, directors, affiliates, employees and agents, not to, provide the Purchaser with any material, nonpublic information
regarding the Company or any of its Subsidiaries from and after the date hereof without the express prior written consent of the
Purchaser. To the extent that the Company, any of its Subsidiaries or any of their respective officers, directors, affiliates
employees or agents delivers any material, non-public information to the Purchaser without the Purchaser’s consent, the
Company hereby covenants and agrees that the Purchaser shall not have any duty of confidentiality to the Company, any of its Subsidiaries
or any of their respective officers, directors, affiliates, employees or agents with respect to, or a duty to the Company, any
of its Subsidiaries or any of their respective officers, directors, affiliates, employees or agents not to trade on the basis
of, such material, non-public information. The Company understands and confirms that the Purchaser will rely on the foregoing
representations in effecting transactions in securities of the Company.

 

    	 	3	 

     

    

 

(e)
The obligations of the Purchaser under this Agreement are several and not joint with the obligations of any Other Purchaser under
substantially identical agreements (the “Other Agreements”), and the Purchaser shall not be responsible in any way
for the performance of the obligations of any Other Purchaser under any Other Agreement. Nothing contained herein or in any Other
Agreement, and no action taken by the Purchaser pursuant hereto, shall be deemed to constitute the Purchaser and Other Purchaser
as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchaser and
Other Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated
by this Agreement or any Other Agreement and the Company acknowledges that the Purchasers are not acting in concert or as a group
with respect to such obligations or the transactions contemplated by this Agreement or any Other Agreement. The Company and the
Purchaser confirm that the Purchaser has independently participated in the negotiation of the transactions contemplated hereby
with the advice of its own counsel and advisors. The Purchaser shall be entitled to independently protect and enforce its rights,
including, without limitation, the rights arising out of this Agreement or, any Other Agreements, and it shall not be necessary
for any Other Purchaser to be joined as an additional party in any proceeding for such purpose.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	4	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Waiver and Consent Agreement to be duly executed on the day and year first
above written.

 

	 	COMPANY:
    
	 	 
	 	INPIXON
	 	 
	 	By:	/s/
    Nadir Ali 
	 	 	Name:
    Nadir Ali 
	 	 	Title:
      CEO

  

 

[SIGNATURE
PAGE OF COMPANY TO WAIVER AND CONSENT]

 

    	 	5	 

     

    

 

	PURCHASER:	 
	 	 
	|Purchaser
    Name]	 
		 
	 	 
	By:		 
	Name:		 
	Title: 		 

  

 

[SIGNATURE
PAGE OF PURCHASERS TO WAIVER AND CONSENT]

 

    	 	6meec_ex101.htm

EXHIBIT 10.1

 

CLOSING AGREEMENT

 

Reference is made to a certain Exclusive Patent and Know-How License Agreement including Transfer of Ownership, dated January 15, 2009 by and between RLP Energy, Inc., as predecessor in interest to MES (as defined below), and Energy & Environmental Research Center Foundation (the “Licensor”), a North Dakota nonprofit entity, as amended by Amendments 1, 2, 3, 4 and 5 prior hereto (as amended by Amendments 1, 2, 3, 4, and 5, the “License Agreement”) by and among the Licensor, MES, Inc. (“MES”), a successor to all the rights, titles and interests of RLP Energy, Inc., and Midwest Energy Emissions Corp. (“ME2C” and, together with MES, the “Company”). The License Agreement provides that under certain conditions the Company shall have the option to acquire the Patent Rights upon the payment of certain cash consideration and additional shares of its common stock, which option the Company has elected to exercise pursuant to a letter dated January 5, 2017, as amended on March 23, 2017 and April 12, 2017 (as amended, the “Election Letter”), between the Company and the Licensor. All capitalized terms used herein which are not defined herein, but which are defined in the License Agreement, shall have the respective meanings ascribed thereto in the License Agreement. This Agreement is hereinafter referred to as the “Closing Agreement”.

 

The undersigned parties hereby agree and acknowledge as follows:

 

1. The undersigned parties hereby confirm that as of April 21, 2017 (the “Closing Date”), the Company has paid the Licensor $2,500,000 by wire transfer in immediately available funds. Within twenty four (24) business hours of the receipt by Licensor of the wire transfer of $2,500,000 as referred to in the preceding sentence, Licensor shall execute and deliver to ME2C an Assignment of the Patent Rights (the “Assignment”) in the form attached as Exhibit 1 hereto. Conditioned upon consummation of the transactions contemplated in the preceding two sentences, within 30 days of the date of the Assignment, the Company will issue (i) 628,998 shares of its common stock to the Licensor and (ii) 296,002 shares of its common stock directly from ME2C to the Inventors in the quantities set out in the table immediately below, subject to receipt by the Company from the Licensor and each of the Inventors of a properly executed Recipient Agreement in the form attached as Exhibit 2 hereto, provided that no delay in delivery of an executed Recipient Agreement shall relieve ME2C from the obligation to deliver the shares to the respective Recipient upon receipt of the applicable executed Recipient Agreement. 

 

	
Inventor name
	
 
	
Number of Inventor Shares 
	
 
	
 
	
Percentage of Inventor Shares 
	
 

	
John Pavlish
	
 
	
 
	97,958	
 
	
 
	
 
	33.09	%
	
Ed Olson
	
 
	
 
	97,958	
 
	
 
	
 
	33.09	%
	
Mike Holmes
	
 
	
 
	89,540	
 
	
 
	
 
	30.24	%
	
Ye Zhang
	
 
	
 
	7,770	
 
	
 
	
 
	2.62	%
	
Steve Benson
	
 
	
 
	1,388	
 
	
 
	
 
	0.46	%
	
Jason Laumb
	
 
	
 
	1,388	
 
	
 
	
 
	0.46	%

 

The number of shares issuable hereunder to EERC Foundation and to each Inventor, as applicable, shall be adjusted proportionately to reflect any stock dividend, stock split, reverse stock split, or similar event with respect to the outstanding shares of common stock of ME2C occurring subsequent to or concurrently with the Closing Date and prior to or concurrently with the issuance of the shares to the applicable Recipient.

 
	 
	1
	

 
	 

 

2. As of the Closing Date, the Company has paid the Licensor $12,500 representing the prorated License Maintenance Fee as set forth in the Election Letter. Following the Closing Date, no additional License Maintenance Fees shall be due and owing to the Licensor. In addition, other than the Running Royalties for the calendar year 2016 which were paid within 30 days after the end of the calendar year 2016, no additional Running Royalties are due with respect to 2017 or otherwise, which additional Running Royalties are deemed waived. To the extent any such expenses were not paid previously, ME2C agrees to pay all patent prosecution expenses incurred by the EERC Foundation for patent prosecution or patent application preparation and filing of any patent application set forth in the Assignment prior to the Closing Date upon presentation by the EERC Foundation of appropriate documentation of such expenses.

 

3. The Licensor hereby represents and warrants that (i) it is the sole owner of the entire right, title and interest in and to the Patent Rights transferred in accordance with the Assignment, (ii) it has the full and legal right and authority to assign to the Company the Patent Rights transferred in accordance with the Assignment, and (iii) no third party has or has ever had any license, option, lien or other rights or interest in or to the Patent Rights, except as otherwise set forth herein and in the License Agreement. 

 

4. Within thirty (30) days after the Closing Date, Licensor shall provide the Company with all documents in its actual possession or as received from its patent counsel with respect to the filing, prosecution or infringement of the Patent Rights (including inventorship and patentability analyses) or the conception, reduction to practice or assignment by the inventors, of the inventions disclosed or claimed in the Patent Rights, including without limitation all files concerning the Patent Rights, as such files are maintained by Licensor. Licensor shall have the right to retain copies of all documents so delivered to the Company hereunder.

 

5. The Licensor retains a nontransferable, royalty-free, nonexclusive right for the University of North Dakota Energy & Environmental Research Center to practice all inventions under the Patent Rights and Know How (as defined in the License Agreement) for research and development purposes. 

 

6. Licensor hereby acknowledges that the Company, and any lawful successor and assigns, hereby has succeeded to all of the Licensor’s right, title and standing to receive all rights and benefits pertaining to the Patent Rights, institute and prosecute all suits and proceedings, and take all actions that the Company, and any lawful successor and assigns, in its sole discretion, may deem necessary or proper to collect, assert, or enforce any claim, right or title of any kind under any and all of the Patent Rights, whether arising before or after the execution of the Assignment, defend and compromise any and all such actions, suits or proceedings relating to such transferred and assigned rights, title, interest and benefits and do all other such acts and things in relation thereto as the Company, and any lawful successor and assigns, in its sole discretion, deems advisable.

 

7. The Company acknowledges that the U.S. federal government retains a nontransferable, royalty-free, nonexclusive right to practice any government-funded inventions claimed on any Patent Rights as set forth in 35 U.S.C. § 200-211, and the regulations promulgated thereunder, as amended, or any successor statutes or regulations. 

 

	 
	2
	

 
	 

 

8. Each of ME2C and MES represents and warrants that (i) it is a corporation validly existing and in good standing in its respective jurisdiction of incorporation; (ii) execution of this Closing Agreement and the consummation of the transactions contemplated herein shall not (a) be forbidden or result in a breach of the articles of incorporation, bylaws, or other governing documents of either ME2C or MES, or (b) give rise to a breach or an event of default under any instrument or certificate to which either ME2C or MES is party, or (c) cause or result in the acceleration of any debt owed by either ME2C or MES; (iii) it has the requisite power and authority to enter into and perform its obligations under this Closing Agreement and the consummation of the transactions contemplated herein, and, in the case of ME2C, to issue the shares of common stock set forth herein in accordance with the terms hereof; (iv) each of the transactions (including issuance of the shares herein) has been authorized by all necessary and appropriate corporate action on the part of ME2C or MES, as the case may be; (v) each person executing this Closing Agreement has, and will have in connection with the execution of the Recipient Agreement, on behalf of ME2C or MES, as the case may be, all necessary power and authority to do so, and by so doing, shall bind its respective principal; and (vi) upon issuance, the shares to be issued hereunder shall be authorized, fully paid, and non-assessable and upon issue shall be validly issued and free of all taxes and encumbrances thereon, except with respect to each recipient’s own tax liability that may arise as a result of the issuance of the shares hereunder. 

 

9. From and after the date hereof, the Company shall indemnify, defend and hold harmless Licensor and its officers, employees and agents, and their respective successors, heirs and assigns (the “Indemnitees”), against any liability, damage, loss or expense (including reasonable attorney fees and expenses) incurred by or imposed upon any of the Indemnitees in connection with any claim, counter- or cross- third-party claims, suits, actions, demands or judgments arising out of any theory of liability (including within limitation actions in the form of tort, warranty or strict liability) concerning any manufacture, sale, service or lease of product or process by the Company under any of the Patent Rights, or in connection with any third party infringement claim brought by the Company. 

 

10. Each of the parties agrees to perform any and all acts and execute and deliver such other documents as may be necessary and proper under the circumstances in order to accomplish the intents and purposes of the transactions contemplated by this Closing Agreement and the Assignment.

 

11. This Closing Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute a single agreement. The counterparts may be delivered by facsimile transmission or by electronic mail in portable document format (.pdf). 

 

12. Upon execution and delivery of the Assignment pursuant to the provisions hereof, the License Agreement shall be deemed terminated and of no further effect and neither party hereto shall have any further obligations to the other except for the obligations set forth herein and in Articles 13 and 14 and Sections 2.3, 2.5, 11.1 and 11.2 of the License Agreement. Notwithstanding the foregoing, all representations, warranties, covenants and agreements made by each of the parties hereto in this Closing Agreement and in Article 1 of the License Agreement shall survive the Closing Date. 

 

13. This Closing Agreement, the Assignment, the License Agreement and the Exercise Letter supersede all other prior oral or written agreements between the parties with respect to the matters discussed herein and therein, and this Closing Agreement, the Assignment, the License Agreement and the Exercise Letter contain the entire understanding of the parties with respect to the matters covered herein and therein. This Closing Agreement may not be changed orally, but only by an agreement in writing signed by the party against whom enforcement of any change, modification, extension or discharge is sought.

 
	 
	3
	

 
	 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the Closing Date. 

 

	 	
MIDWEST ENERGY EMISSIONS CORP. AND MES, INC.
	
	 	 	 	 
		By:	/s/ Richard H. Gross	
	
 
	
Name:
	Richard H. Gross 	 
	 	Title:	Chief Financial Officer	 
	 	 	 	 
	
 
	
 
	
 
	
 

	
 
	
ENERGY & ENVIRONMENTAL RESEARCH CENTER FOUNDATION
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Ron Ness
	
 

	
 
	
Name:
	
Ron Ness
	
 

	
 
	
Title:
	
President
	
 

 

	 
	4
	

 
	 

 

Exhibit 1

Assignment

 

 

 

 

 

 

	 
	
	

 
	 

 

Exhibit 2

Form of Recipient Agreement

 

Undersigned is to be a recipient of shares of common stock of Midwest Energy Emissions Corp. (“ME2C”) pursuant to the Closing Agreement by and between Energy & Environment Research Center Foundation, a North Dakota nonprofit entity (“EERCF”), and the Company (as defined therein). 

 

The Closing Agreement (the “Amendment”) was finalized effective as of April 21, 2017. 

 

I. To facilitate the receipt of the shares of common stock of ME2C (the “ME2C Stock”) by Undersigned pursuant to and as set out in the Closing Agreement, Undersigned represents and warrants to ME2C as follows:

 

(a) Undersigned is capable of evaluating the merits and risks of ownership of ME2C Stock and has the capacity to protect Undersigned’s financial interests.

 

(b) Undersigned understands that the ME2C Stock being issued pursuant to the Closing Agreement has not been, and will not be, registered under the Securities Act of 1933 (the “Act”) or the securities laws of any country, state or other jurisdiction by reason of a specific exemption from the registration provisions of the Act and other applicable securities laws, the availability of which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of Undersigned’s representations as expressed herein.

 

(c) Undersigned acknowledges and understands that the ME2C Stock being acquired by the Undersigned pursuant to the Closing Agreement is being acquired for investment purposes and not with a view to distribution or resale, nor with the intention of selling, transferring or otherwise disposing of all or any part of the ME2C Stock, except selling, transferring, or disposing of the ME2C Stock made in full compliance with all applicable provisions of the Act, the rules and regulations promulgated by the Securities and Exchange Commission thereunder, applicable state securities laws; and that the ME2C Stock is not a liquid investment. ME2C has no obligation to register the ME2C Stock for resale in any jurisdiction nor has it made any representations, warranties, or covenants regarding the registration of the ME2C Stock or any other exemption under the Act.

 

(d) Undersigned acknowledges that the ME2C Stock must be held indefinitely unless subsequently registered under the Act or unless an exemption from such registration is available. Undersigned is aware of the provisions of Rule 144 promulgated under the Act (“Rule 144”), which permit investors who have satisfied a certain holding period to resell under certain conditions such securities. 

 

(e) Undersigned recognizes that no U.S. federal, state or foreign agency has recommended or endorsed the issuance or ownership of the ME2C Stock.

 

(f) Undersigned is aware that the ME2C Stock is and will be, when issued, “restricted securities” as that term is defined in Rule 144.

 
	 
	1
	

 
	 

 

(g) Undersigned understands that any and all certificates representing the ME2C Stock and any and all securities issued in replacement thereof or in exchange therefor shall bear the following legend or one substantially similar thereto, which Undersigned has read and understands:

 

“The securities represented by this certificate have not been registered under the Securities Act of 1933. The securities have been acquired for investment and may not be sold, transferred or assigned in the absence of an effective registration statement for these securities under the Securities Act of 1933 or an opinion of ME2C’s counsel that registration is not required under said Act.”

 

(h) Undersigned acknowledges that Undersigned has such knowledge and experience in financial and business matters that Undersigned is capable of evaluating the merits and risks of an investment in the ME2C Stock.

 

(i) Undersigned represents that Undersigned has not received any general solicitation or general advertising regarding the issuance of the ME2C Stock.

 

(j) Undersigned further represents that the U.S. social security number or U.S. taxpayer identification set forth below is correct.

 

II. Covenants of ME2C

 

(a) ME2C shall raise no objection to the transfer of the ME2C Stock and shall remove and direct its transfer agent to remove any restrictive legend placed upon the ME2C Stock as soon as practicable following the receipt by ME2C of an opinion of counsel stating that such legend is not required under applicable requirements of the Act. The Undersigned shall provide ME2C with a customary Rule 144 certification necessary for ME2C to satisfy the foregoing requirement. 

 

(b) ME2C shall cooperate with counsel to Undersigned in preparing the opinion referenced in Item II (a) above and shall cooperate with counsel, any broker or market maker in otherwise enabling Undersigned to confirm that Undersigned has satisfied the conditions required for resale of the ME2C Stock under Rule 144.

 

(c) ME2C covenants to file timely all reports required to be filed by ME2C under the Sections 13 or 15(d) (as applicable) of the Securities Exchange Act of 1934 and the rules promulgated thereunder.

 

III. General. Each of ME2C and the Undersigned shall be responsible for its own costs, fees and expenses, including fees of the counsel of its choice, in performing the transactions contemplated herein.

 

[signature page follows]

 
	 
	2
	

 
	 

 

IN WITNESS WHEREOF, the parties hereto have executed this Recipient Agreement as of the dates indicated below.

   

 

	
The Undersigned:
	
 
	
 
	
 

	
 
	
Print Name
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
Signature and Title (if applicable)
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
Number of Shares
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
Soc. Sec. or Tax ID No.
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
Address
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
Date
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
The Company:
	
MIDWEST ENERGY EMISSIONS CORP.
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name:
	
 
	
 

	
 
	
Title:
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
Date
	
 

 

	
 

	
3

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