Document:

Seychelle 10-KSB 2-28-06 Ex 10 L Continental Technologies Agr

    

      Exhibit
        10.L

      

      PURCHASE
        AGREEMENT 

      

      

      

      AGREEMENT
        (the
“Agreement”) dated and effective as of April 26, 2006, by and between
CONTINENTAL
        TECHNOLOGIES. INC.,
        (“CONTINENTAL”), having its principal offices at 255 Main Street, Little River,
        Kansas 67457 and SEYCHELLE
        ENVIRONMENTAL PRODUCTS INC. (“SEYCHELLE”),
        having its principal offices at 33012 Calle Perfecto, San
        Juan
        Capistrano, CA 92675.

      

      WHEREAS,
        SEYCHELLE is interested in purchasing certain assets, rights, contracts,
        EPA
        registrations and trademark use covered in EXHIBIT “A”; and

      

      WHEREAS,
        CONTINENTAL, subject to the terms and conditions hereinafter set forth, at
        the
        closing of the transaction contemplated hereby, is willing to sell, convey,
        transfer and deliver to SEYCHELLE such items identified in EXHIBIT “A.”

       

      NOW
        THEREFORE,
        in
        consideration of the mutual covenants herein contained, and for other and
        good
        and valuable consideration, the receipt and sufficiency of which are hereby
        acknowledged, the parties hereto, intending to be legally bound hereby, agree
        as
        follows:

      

      	1.  	
              Purchase
                Price

            

      

      SEYCHELLE
        agrees to purchase from CONTINENTAL those items covered in EXHIBIT “A” for
        50,000 shares of SEYCHELLE’S restricted common stock (One year maturity date) to
        be issued within ten (10) working days after closing. SEYCHELLE further warrants
        that, after the date the stock restriction is removed, for a period of six
        (6)
        months thereafter, it will purchase back from CONTINENTAL, at CONTINENAL’S
        option, some or all of the 50,000 shares of SEYCHELLE restricted common stock
        for $.75 per share.

      

      SEYCHELLE
        further agrees to pay CONTINENTAL a 10% commission on net sales (gross sales
        less cash discounts, returns or bad debts) of the existing product, or any
        new
        products sold directly by SEYCHELLE, and 10% on any product sold by CONTINENTAL
        for SEYCHELLE to their existing or new customers at SEYCHELLE’S OEM (Lowest
        volume) prices. Commissions on product (s) sold below SEYCHELLE’S OEM prices
        will be agreed upon in advance by both parties.

      

      SEYCHELLE
        shall keep all appropriate records to enable it to meet all of its obligations
        herein, and upon request by CONTINENTAL, and at their expense, such records
        may
        be audited with ten (10) days written notice.

      

      Commissions
        will be paid to CONTINENTAL on the tenth of each month for the proceeding
        months
        sales activity, and will be supported by appropriate sales reports.

      

      

       

      2.
        REPRESENTATIONS
        and WARRANTIES of PARTIES

      

      SEYCHELLE
        and CONTINENTAL hereby warrant that they have the sole right to enter into
        this
        Purchase Agreement, and there has been no act or omission by either party
        which
        would give rise to any valid claim against any of the parties hereto for
        a
        brokerage commission, finder’s fee or other like payment in connection with the
        transaction contemplated hereby.

      

      CONTINENTAL
        further warrants that it is the owner of the certain assets, rights, contracts,
        EPA registrations and trademarks covered in EXHIBIT “A”, and there are no known
        actions, activities, lawsuits or judgments pending or outstanding which would
        prohibit the sale and transfer of same to SEYCHELLE.

      

      3.
        MISCELLANEOUS PROVISIONS

      

      	A.  	
              Modification:
                No
                modification, waiver or amendment of any term or condition of this
                Agreement shall be effective unless and until it shall be reduced
                to
                writing and signed by both of the parties hereto or their legal
                representatives.

            

      

      	B.  	
              Complete
                Agreement: This
                Agreement constitutes the entire Agreement between the parties with
                respect to the subject matter hereof and supersedes in all respects
                all
                prior proposals, negotiations, conversations, discussions and agreements
                between the parties concerning the subject matter
                hereof.

            

      

      	C.  	
              Assignment:
                This
                Agreement may not be assigned, in whole or in part, by either party
                hereto
                without prior written. 

            

      

      	D.  	
              Governing
                Law: This
                Agreement shall be construed according to the laws of the State of
                California and shall not be subject to any choice of law provisions
                of
                such laws. This Agreement shall be binding upon CONTINENTAL and
                SEYCHELLE,
                and their respective successors and assigns.

            

      

      	E.  	
              Binding
                on Successors:
                The terms and provisions of the Agreement that by their sense and
                context
                to survive the performance hereof by either party or by other parties
                hereto shall so survive the completion of performance and termination
                of
                this Agreement, including without limitation the making of any and
                all
                payments due hereunder unless otherwise
                noted.

            

      

      	F.  	
              Best
                Efforts:
                Seychelle warrants that it put forth its “best efforts” to increase the
                sales of the business, and will not circumvent any independent efforts
                of
                CONTINENTAL. 

            

      

      	G.  	
              Closing
                Date:
                The date of closing will be April 26,
                2006.

            

      

      	H.  	
              Confidentiality:
                CONTINENTAL agrees
                to the terms and conditions set forth in the Confidentiality Agreement
                set
                forth in EXHIBIT “B.

            

      

      	I.  	
              Term
                of Agreement:
                This Agreement will be in force for the life of the company, and
                binding
                on acquirers should the company be sold.

            

      

      	J.  	
              Non-Circumvent:
                SEYCHELLE
                agrees not to circumvent any of CONTINENTALS present or future customers
                as identified in SEYCHELLE’S Contract Exclusivity
                Form.

            

      

      	K.  	
              Other
                Stipulation:
                In the event that CONTINENTAL is dissolved or otherwise becomes inactive,
                the residual commissions and royalty payments revert to the three
                principals as follows: Loretta M. Teeters - 20%, Donald L. Teeters
                - 40%,
                and Leland M. Young - 40%.

            

      

      4.
        Non-Compete

      

      CONTINENTAL
        management and officers agree not to compete with SEYCHELLE directly or
        indirectly in the Chlorine tablet business for a period of five (5) years
        after
        the close of this transaction other than the exception covered in Section
        1,
        above.

      

       

      

      ACCEPTED
        AND AGREED BY:

      

      CONTINENTAL
        TECHNOLOGIES INC.

      

      By:
        ________________________    Date
        ___________________

      Don
        Teeters, President

      

      

      SEYCHELLE
        ENVIRONMENTAL PRODUCTS INC.

      

      By:
        _________________________   Date:
        ___________________

      Carl
        Palmer, President and CEO

      

      

      

      

      

      EXHIBIT
        “A”

      

      The
        following items are covered under this Purchase Agreement: 

      

      	A.  	
              Use
                of EPA Registration Number 55304-4-71426.

            

      	B.  	
              Name
                of Chlorine supplier and contract, if
                any.

            

      	C.  	
              Use
                of Redi Chlor Brand name and Trademark.

            

      

      EXHIBIT
        “B”

      

      

      SEYCHELLE

      Confidentiality
        Agreement

      

      WHEREAS,
        Seychelle Environmental Technologies, Inc., (hereinafter referred to as
“Purchaser”) is interested in the possibility of purchasing certain assets,
        rights, contracts, registrations, and trademarks (hereinafter referred to
        as
“Confidential Information”); and

      

      WHEREAS,
        Continental Technologies Inc., (hereinafter referred to as “Discloser”), is
        desirous of selling said Confidential Information to Purchaser and is willing
        to
        proceed with discussions with Purchaser related thereto, and Discloser is
        willing to disclose the Confidential Information to Purchaser for this purpose,
        subject to the terms of this Agreement. 

      

      NOW,
        THEREFORE, in consideration of the mutual promises and covenants herein
        contained, the parties agree as follows:

      

      	1.  	
              Upon
                the execution if this Agreement, Discloser agrees to disclose to
                Purchaser
                certain of the Confidential Information.

            

      

      	2.  	
              Purchaser
                agrees to hold said Confidential Information, and any Confidential
                Information previously disclosed to Purchaser, in confidence, and
                not to
                use the Confidential Information for anyone accept Purchaser. Purchaser
                agrees to limit dissemination of, and access to, the Confidential
                Information to within Purchaser’s organization, and then only to those
                personnel or associates who have a need for access to the information
                for
                the above-described purpose, and who have entered into a restrictive
                agreement prohibiting such personnel from doing anything with respect
                to
                the Confidential Information that Purchaser would itself be prohibited
                from doing under this Agreement. 

            

      

      	3.  	
              It
                is agreed that the obligations of confidentiality and non-use imposed
                hereunder will not in any way apply with respect to any of the following
                information:

            

      

      	a.  	
              Information
                which Purchaser reasonably demonstrates is a part of the public domain
                at
                the time the information is received by Purchaser and is not otherwise
                a
                protect able trade secret; and;

            

      	b.  	
              Information
                that Purchaser reasonably demonstrates was already known to Purchaser
                at
                the time of disclosure of the Confidential Information to Purchaser
                by
                Discloser, as evidenced by presently existing written
                documentation.

            

      

      

      	4.  	
              With
                regard to the interpretation of paragraph 3, Purchaser agrees that
                the
                fact that Purchaser had prior knowledge of a particular item of
                Confidential Information, or that such particular item is generally
                known
                to the public, at the time of it’s receipt, shall not permit Purchaser’s
                disclosure to others of such item of Confidential Information, or
                use of
                the same, in connection with one or other known items disclosed to
                Purchaser by Discloser, unless the particular combination itself,
                as well
                as it’s advantages and operability, were previously known to and not
                abandoned by the Purchaser, or the public generally, for the same
                specific
                purposes and uses disclosed to Purchaser by
                Discloser.

            

      

      	5.  	
              Nothing
                in this Agreement may be deemed a commitment of any kind, by either
                Purchaser or Discloser, to enter into any further agreement with
                the
                other.EX-10.1

Exhibit 10.1

EXECUTION VERSION

AMENDMENT NO. 3

TO 4/04 AMENDED AND RESTATED

SENIOR SECURED CREDIT AGREEMENT

Amendment No. 3, dated as of June 13, 2006 (this “Amendment”), by and between JPMorgan
Chase Bank, N.A. (the “Lender”), Fieldstone Investment Corporation (“FIC” and a
“Borrower”) and Fieldstone Mortgage Company (“FMC” and a “Borrower” and
together with FIC, the “Borrowers”).

RECITALS

The Lender and the Borrowers are parties to that certain 4/04 Amended and Restated Senior
Secured Credit Agreement, dated as of April 21, 2004, as amended by the 4/05 Amendment to Credit
Agreement, dated as of April 20, 2005 and Amendment No. 2, dated as of April 10, 2006 (the
“Existing Credit Agreement”; as amended by this Amendment, the “Credit Agreement”).
Capitalized terms used but not otherwise defined herein shall have the meanings given to them in
the Existing Credit Agreement.

The Lender and the Borrowers have agreed, subject to the terms and conditions of this
Amendment, that the Existing Credit Agreement be amended to reflect certain agreed upon revisions
to the terms of the Existing Credit Agreement.

Accordingly, the Lender and the Borrowers hereby agree, in consideration of the mutual
promises and mutual obligations set forth herein, that the Existing Credit Agreement is hereby
amended as follows:

SECTION 1. Definitions. Section 1.2 of the Existing Credit Agreement is hereby amended
by deleting the definition of “Maturity Date” in its entirety and replacing it with the
following:

“Maturity Date” means July 14, 2006, or the earlier date (the “Acceleration
Date”), if any, when the Lender accelerates maturity of the Senior Credit Note pursuant to this
Agreement, or the maturity of the Senior Credit Note is effectively accelerated by order of any
Governmental Authority or by operation of law.

SECTION 2. Conditions Precedent. This Amendment shall become effective on the date
hereof (the “Amendment Effective Date”) subject to the satisfaction of the following
conditions precedent:

2.1 Delivered Documents. On the Amendment Effective Date, the Lender shall have
received the following documents, each of which shall be satisfactory to the Lender in form and
substance:

(a) this Amendment, executed and delivered by duly authorized officers of the Lender
and the Borrowers; and

(b) such other documents as the Lender or counsel to the Lender may reasonably request.

SECTION 3. Representations and Warranties. Each Borrower hereby represents and
warrants to the Lender that it is in compliance with all the terms and provisions set forth in the
Existing Credit Agreement on its part to be observed or performed, and that no Event of Default has
occurred or is continuing, and hereby confirms and reaffirms the representations and warranties
contained in Section 9 of the Existing Credit Agreement.

SECTION 4. Limited Effect. Except as expressly amended and modified by this
Amendment, the Existing Credit Agreement shall continue to be, and shall remain, in full force and
effect in accordance with its terms.

SECTION 5. Fees. The Borrowers agree to pay as and when billed by the Lender all of
the reasonable fees, disbursements and expenses of counsel to the Lender in connection with the
development, preparation and execution of, this Amendment or any other documents prepared in
connection herewith and receipt of payment thereof shall be a condition precedent to the Lender
entering into any Transaction pursuant hereto.

SECTION 6. GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

SECTION 7. Counterparts. This Amendment may be executed in one or more counterparts
and by different parties hereto on separate counterparts, each of which, when so executed, shall
constitute one and the same agreement.

SECTION 8. Conflicts. The parties hereto agree that in the event there is any
conflict between the terms of this Amendment, and the terms of the Existing Credit Agreement, the
provisions of this Amendment shall control.

[SIGNATURE PAGE FOLLOWS]

1

IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their
respective officers thereunto duly authorized as of the day and year first above written.

Lender: JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as Lender

By: /s/ Mark A. Wegener

Name: Mark A. Wegener

Title: Senior Vice President

Borrower: FIELDSTONE INVESTMENT CORPORATION, as a Borrower

By: /s/ Mark C. Krebs

Name: Mark C. Krebs

Title: Sr. Vice President & Treasurer

Borrower: FIELDSTONE MORTGAGE COMPANY, as a Borrower

By: /s/ Mark C. Krebs

Name: Mark C. Krebs

Title: Sr. Vice President & Treasurer

2

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