Document:

ex10-2.htm

Exhibit 10.2

 

Conner LLP

100 PARK AVENUE

SUITE 1600

NEW YORK, NEW YORK 10017

917-860-1425

www.connercpa.com

______________________________________________________________________________

Direct Contact:

Kevin J. Conner, MST, CPA

Managing Partner

kconner@connercpa.com

23 September 2011

Mr. John Lorenz, CEO

Global Recycling Technologies, Ltd.

4802 East Ray Road

Phoenix, Arizona 85044

Dear Mr. Lorenz:

Introduction

We sincerely appreciate this opportunity to provide SEC consulting services.

Our primary goal is to develop a long-term, mutually beneficial relationship with you and the Company through earning your trust in us as a substantial member of the team of professionals that is necessary for SEC issuers and a trusted advisor as you build and grow your company.

The partners in our firm each have over 20 years experience in a myriad of SEC related matters including being M&A advisors primarily on the buy-side, management/board level consulting, officers and directors of SEC issuers for 40 Act and 34 Act companies and our affiliated firm, Conner & Associates, PC is a certified public accounting firm that performs audits of SEC issuers and is registered with the Public Company Accounting Oversight Board.  The firm recently completed its Peer Review through the AICPA’s National Peer Review Program.

We assign one partner and at least one associate to each of our client engagements in order to develop a continuity of the services being provided and to ensure the highest level of service.  All partners and associates of our firm have at least 15 years of professional, managerial and entrepreneurial experience.

In November 2011, our firm will be celebrating its 20th anniversary.

We have several SEC clients that we perform similar services as outlined in this agreement; references are available upon request.

Agreement

This agreement outlines our mutual understanding of the terms and objectives of Conner LLP’s (“the Firm”) engagement and the nature and limitations of the services the Firm will provide on behalf of Global Recycling Technologies, Inc. (“Global”) and Environmental Credits, Ltd. (“ECVL”) (collectively the Company”)

  

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Mr. John Lorenz, CEO

Global Recycling Technologies, Ltd.

23 September 2011

Page 2

__________________________________________________________________________________________________________________

Professional standards require that the Firm establishes a mutual understanding with the Company about the nature, scope and limitations of the professional services to be performed and specify that the understanding should be modified if the circumstances require a change during the engagement. The Firm reserves the right to make such modifications if the circumstances warrant.

Services

The Firm will perform the following professional services:

	
1.  

	
Assist management of the Company (post-merger) in the financial due diligence on future potential mergers and acquisitions.

	
2.  

	
Assist management of Global in its pending merger with ECVL as to its pending SEC reporting requirements.

	
3.  

	
Assist management of the Company in its SEC reporting requirements starting with the Super 8-K for the pending merger.

	
4.  

	
Assist management of the Company in drafting the Form 10-Qs and related financial statements (post-merger and acceptance of the 8-K by the SEC) through the quarterly period ending September 30, 2012.

	
5.  

	
Assist management of the Company and its SEC legal counsel in drafting the Form 10-K and related financial statements as of and for the year ending December 31, 2011.

	
6.  

	
Assist management of the Company in its post-merger period to integrate its financial reporting systems.

There are no other professional services contemplated under this agreement.

It is expressly agreed that no member of the Firm will be named the Chief Financial Officer or any other officer’s position nor will they be identified as a related party to the Company until the Company is able to secure sufficient Officers & Directors insurance.

Term

The term of this agreement is from September 23, 2011 through November 15, 2012; the filing date of the Form 10-Q as of and the nine months ending September 30, 2012.

Either party may terminate this agreement with 90 days written notice.  Only a written instrument expressing the agreement of both parties shall amend this agreement. The laws of the State of New York shall govern this agreement, without reference to its conflict of law principles.

  

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John Lorenz, CEO

Global Recycling Technologies, Ltd.

23 September 2011

Page 3

__________________________________________________________________________________________________________________

Reliance on Information

 

Regarding any information or material that the Company furnishes to the Firm in connection with the performance of professional services under this agreement, The Company acknowledges and confirms that (i) The Firm will use and rely on such information and material without independently verifying the same, (ii) The Firm does not assume responsibility for the accuracy or completeness of any of the information or material, (iii) The Firm will not make any appraisal, evaluation or determination regarding such information or material of The Company and (iv) The Firm shall not have any liability in connection with such information or material.  The Company shall promptly notify the Firm if it learns of any material inaccuracy or misstatement in, or material omission from, any information or material delivered to the Firm.

Indemnification

It is mutually understood that the Firm is not acting as agent or fiduciary of, and has no liabilities to the Company or any other third party in connection with this agreement or any services hereunder, all of which liabilities are expressly waived.  The Company agrees to indemnify and hold the Firm and its affiliates, control persons, directors, officers, advisors, representatives, employees and agents (each an “Indemnified Person”) harmless from and against all losses, claims, damages, liabilities, costs or expenses, including those resulting from any threatened or pending investigation, action, proceeding or dispute, whether or not the Firm or any such other Indemnified Person is a party to such investigation, action, proceeding or dispute, arising out of the Firm entering into or performing services under this agreement, or arising out of any matter including, without limitation, any material misstatement or omission of a material fact in any information provided to the Firm in this agreement.

This indemnity shall also include the Firm’s and/or any such other Indemnified Person’s reasonable attorneys’ and accountants’ fees and out-of-pocket expenses incurred in connection with such investigation, actions, proceedings or disputes, which fees and expenses shall be periodically reimbursed to the Firm and/or to any such other Indemnified Person as they are incurred; provided, however, that the indemnity set forth herein shall not apply where a court of competent jurisdiction has made a final determination that the Firm acted in a negligent manner or engaged in gross misconduct in the performance of its services hereunder which gave rise to the loss, claim, damage, liability, cost or expense sought to be recovered hereunder (but pending any such final determination, the indemnification and reimbursement provisions herein above set forth shall apply and The Company shall perform its obligations hereunder or reimburse the Firm and/or such other Indemnified Person periodically for its, his or their fees and expenses as they are incurred).

The Company also agrees that neither the Firm nor any Indemnified Person shall have any liability, whether direct or indirect, in contract or tort or otherwise, to the Company for, or in connection with, any act or omission to act by the Firm as a result of its engagement under this agreement, except for any such liability for losses, claims, damages, liabilities or expenses incurred that is found in a final determination by a court of competent jurisdiction to have resulted from the Firm’s negligence or misconduct.

  

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John Lorenz, CEO

Global Recycling Technologies, Ltd.

23 September 2011

Page 3

__________________________________________________________________________________________________________________

Fees

	
1)  

	
The Firm will provide up to a total of 75 hours from the date you sign this agreement until December 31, 2011 or when the Company closes on its first round of financing, whichever occurs first.  The Firm’s compensation for these hours will be satisfied with the grant of options for 75,000 shares of the Company’s common stock under the existing Stock Option Plan.

	
2)  

	
The options will be issued to Westrock Partners, a nominee of Conner LLP.  The options are not forfeitable should either party terminate this agreement before November 15, 2012.

	
3)  

	
If the hours exceed 75 hours during this period as stated above until December 31, 2011, the Firm will request the Company’s written pre-approval for any additional agreed-upon hours and the Firm will invoice the Company for these amounts and the Company agrees to pay the Firm, in cash.  The Firm’s hourly rates for any additional hours that exceed the 75 hours during this period will be discounted by at least 50% at discounted rates of $125-225 per hour depending on the professionals assigned to perform the work.

	
4)  

	
After the first round of financing is received or December 31, 2011, whichever occurs first, through November 15, 2012, the Firm will provide up to 20 hours per month, non-cumulative, of professional time under this agreement at a monthly set fee of $5,000, to be paid in cash in the capacity as the Chief Financial Officer contingent upon the Company securing a sufficient amount of Directors and Officers Insurance prior to the appointment as Chief Financial Officer.

	
5)  

	
If the hours exceed 20 hours during any month after the first round of financing is received or December 31, 2011, whichever occurs first, through November 15, 2012, the Firm will request the Company’s written pre-approval for any additional agreed-upon hours and the Firm will invoice the Company for these amounts and the Company agrees to pay the Firm, in cash. The Firm’s hourly rates for any additional hours that exceed the 20 hours per hour during any month will be discounted by at least 50% at discounted rates of $125-225 per hour depending on the professionals assigned to perform the work.

If there are any travel requirements during the term of this agreement outside of the Metropolitan New York Area, the Company agrees to reimburse the Firm for all out-of-pocket expenses including traveling, lodging and other expenses.

Invoices consisting of fees and expenses will be rendered on the 25th of each month starting on January 25, 2012 or in the month that the Company closes on its first round of financing, whichever occurs first and are due upon presentation except the November 2012 invoice will be rendered on November 15, 2012.  Unpaid invoices that go beyond 30 days past due are subject to a 1.5% (18% per annum) finance charge. The Firm reserves the right to halt providing professional services should invoices go unpaid longer than 30 days unless prior arrangements are made with the managing partner.

  

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John Lorenz, CEO

Global Recycling Technologies, Ltd.

23 September 2011

Page 4

__________________________________________________________________________________________________________________

Other Services

If the Company wishes to engage the Firm to perform other services including but not limited to the following, we would be delighted to determine a mutually acceptable payment arrangement.

	
·  

	
Management and board level consulting on corporate governance issues,

	
·  

	
Personal tax work for the officers and directors of the Company.

Please sign a copy of this agreement providing your acknowledgement and acceptance of the terms of our engagement and returning it to us along with the grant of the stock options.

We look forward to working with you and should you have any questions, please contact me directly.

Very truly yours,

CONNER LLP

/s/ KEVIN J. CONNER

Kevin J. Conner, MST, CPA

Managing Partner

ACKNOWLEDGED AND ACCEPTED:

/s/ JOHN LORENZ

Mr. John Lorenz, CEO

Global Recycling Technologies, Ltd.

September 23, 2011

Date

 

  

5ex10-3.htm

 

Exhibit 10.3

Consulting Agreement

This Consulting Agreement (the “Agreement”) is entered into this 8th day of April, 2011 by and between Global Recycling Technologies, Ltd., located at 4802 East Ray Road, Suite 23-196, Phoenix, AZ 85044 (hereinafter referred to as or the “Company”) and Ventana Capital Partners, Inc., a Nevada corporation, with principal offices at 5782 Caminito Empresa, La Jolla, California 92037 (hereinafter referred to as “Consultant”).

	
A.  

	
The Company seeks to retain Consultant to provide certain consulting services to the Company upon the terms and conditions set forth in this Agreement.

	
B.  

	
The Company seeks to become a publicly traded company on the over the counter bulletin board (the “OTCBB”).  The Company wants to achieve certain corporate objectives and wishes to engage the Consultant to assist the Company in achieving its goals.  The Company has provided the Consultant with a copy of its business overview and internal financials.

	
C.  

	
Services to be provided by Consultant as described in Section 1.0 of this Agreement are contingent on the Company providing PCAOB audited financials to the Consultant.

NOW THEREFORE THE PARTIES AGREE AS FOLLOWS:

	
1.0  

	
Services. 

In consideration of the compensation paid by the Company to Consultant as described in Section 2.0 of this Agreement, Consultant shall undertake its best efforts to provide the Company with the following services for the purpose of assisting the Company in obtaining additional capital and facilitating investor relations, communications and public relations to investors and also to:

	
  

	
1.01

	
Assist the Company in coordinating documents as required by their legal counsel and to assist the Company and its officers and directors in connection with the items described in this Agreement.  In addition, Consultant shall undertake its best efforts to:

	
(a)  

	
Provide the Company with a public shell company (the “Shell”) that is currently listed on the OTCBB for the purposes of effecting a reverse merger of the Company into the Shell.

	
(b)  

	
Assist the Company with filing documents with the SEC and FINRA to gain approval for a name and symbol change to trade their stock on the OTCBB.

	
(c)  

	
Provide SEC attorney to assist Company with all Securities and Exchange and FINRA filings for a period of twelve months.

  

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(d)  

	
Assist the Company with the structure and final capitalization of the company.

	
(e)  

	
Assist the Company with third-party contractors to provide investor and public relations campaigns for awareness to the investment community.

	
(f)  

	
Assist the Company with choosing a research analyst and arranging for road shows with broker dealers and institutional investors.  (Such fees are additional and to be pre approved and paid by Company).

	
(g)  

	
Assist the Company in preparing presentations to various institutional investors at industry conferences.

	
(h)  

	
Assist the Company with guidance concerning perception and nuances of positioning their Company’s stock in the US public markets.

	
(i)  

	
Provide the Company with guidance concerning financing agreements that the company may enter into from time to time.

	
(j)  

	
Assist the Company with introductions to Investment Banking funding sources and NASD broker dealers (the “Underwriter”) of the Consultant for the purposes raising a minimum of $5,000,000 for the Company, based up a pre-money valuation of $ 23 million (a “Financing”).

	
(k)  

	
Assist Company with the negotiations, transaction terms, conditions and structure of contractual agreements as required by the Company.

	
(l)  

	
Assist the CEO of the Company with all matters concerning the future growth and direction of the Company.

	
2.0  

	
Compensation to Consultant.

In consideration for the services provided by Consultant described in this Agreement, together with other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Company agrees that it shall pay Consultant the following compensation:

 

  

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2.01

	
Stock Compensation.

	
The Company agrees that the Consultant shall receive 7,000,000 common shares (the “Shares”) of the Company’s stock based upon a total of  23,000,000  common shares of the Company’s stock on a fully-diluted, as converted, basis (i.e., including issued and outstanding shares and any options, warrants, or convertible securities that have not yet been exercised or converted) .  The Shares shall be issued either (a) directly from the Shell prior to closing on the reverse merger or (b) from the Company post closing of the Shell transaction.  The Shares shall be issued in the name of the Consultant or its designee.

 

	
  

	
2.02

	
Third Party Contractors.  

	Consultant will provide a list of third-party contractors to the Company.  Such contractors may be compensated with common Shares of the Company’s stock.  Such stock will be issued directly by the Company and deducted from the total number of Shares to be issued to the Consultant, subject to compliance with any applicable securities laws and exemption qualification requirements.  The Shares delivered to Consultant are non dilutive for the Term of this agreement except for shares issued from any future capital raises provided such raise is issued at no less than $.50 USD per share and shall not take into account the shares issued pursuant to the exercise of any options, warrants, or convertible securities referenced in Section 2.01 above totaling no more than 23,000,000 common shares of the Company’s stock.

 

	
  

	
2.03

	
Cash Compensation.

	
No monthly cash compensation to be paid to Consultant.

	
  

	
2.04

	
Financings.

	
For Financing transactions the Company agrees to pay a fee of ten percent (10%) of the transaction plus ten percent (10%) warrant coverage equal to the total amount of the funding plus a three percent (3%) non accountable expense allowance (the “Financing Fee”.  The Financing Fee may be in the form of a finder’s fee, consulting fee, financers’ fee or brokerage fee paid to a licensed NASD broker dealer, subject to compliance with any applicable securities regulatory requirements and will be further evidenced by a separate Placement Agent Agreement between the broker dealer and Company.  “Financing” as described in this section can include any combination of committed senior term or subordinated debt, preferred or common equity or their equivalents, exercise of warrants or options (except for employees of the Company or its affiliate companies), relief or assumption of debt or debt guarantees, renegotiations of debt or debt guarantees, a restructuring, earn outs or similar transaction(s). The Company has the sole discretion to accept or reject any transaction proposed for a “Financing.” Issuance of shares for mergers or acquisitions (“M&A candidate”) are exempt from Financing Fee if Consultant did not introduce M&A candidate to the Company.

   

	
  

	
2.05

	
Non Performance and Break Up Fee.  Should the Consultant be unable to provide a Shell acceptable to the Company, SEC attorney or Underwriter to the Company within six months from the date that the Company completes its PCAOB auditedfinancials (the “Financials”) and delivers such Financials to the Consultant then the Company may cancel this Agreement.  If the Company does not produce the Financials within six months from the date of this Agreement or decides not to move forward with services as outlined in this Agreement, for any reason other than a failure of Consultant to perform its obligations, then the Consultant shall receive 3,500,000 shares as a “break up” fee. 

 

	
  

	
2.06

	
Expenses.  Company will reimburse Consultant and his associates for all Travel and Entertainment Expenses. The Company shall provide business class or first class reservation seating for air travel that exceeds six hours.  Aggregate monthly expenses in excess of $5,000.00 USD must be pre-approved by an Officer or Director of the Company.

  

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2.07

	
Due Diligence Review.   Consultant and the Company agree that the parties will cooperate in conducting a due diligence review of the Company, its officers, directors, and affiliates to ensure that the Company is able to conduct an offering and sale of its securities in a private equity financing. The parties hereto agree to take all prudent actions to further the purposes of this provision.

	
3.0

	
Term of Agreement.  Subject to the cancellation provisions above, the term of this Agreement is for 24 months (the “Term”).

4.0           Confidentiality.

    4.01           Protection of Confidential Information.   Consultant acknowledges that it will be provided with information about, and Consultant’s engagement by the Company will throughout the Term bring Consultant into close contact with, the confidential affairs of the Company, including proprietary information about the business of the Company including, without limitation, costs, finances, internal financial statements, projections, markets, sales, customers, vendors, products, key personnel, operational methods, formulas, methods of production, technical processes and methods, plans for future developments, software, data bases, computer programs, specifications, documentations, designs, trade secrets, technology, know-how, research and development, inventions, patents and copyrights (and any renewals, reissues, extensions,  divisions, continuations and continuations in part thereof and registrations, applications, patents of addition and investor certificates) and other information not available to the public (collectively “Confidential Information”), all of which are highly confidential and proprietary and all of which were or will be developed by the Company at great effort and expense.

	
4.02  

	
The Company and Consultant further acknowledge that the services to be performed by Consultant under this Agreement are of a special unique, unusual, extraordinary and intellectual character and that the nature of the relationship of Consultant with the Company is such that Consultant is capable of competing with the Company. In recognition of the foregoing, and as a specific inducement for Company to enter into this Agreement, Consultant covenants and agrees that during the Term and thereafter Consultant will:

	
(a)  

	
Keep secret all Confidential Information of the Company and not disclose the same to anyone outside of the Company, either during or after the Term, except with the Company’s prior written consent;

	
(b)  

	
Not make use of any of such Confidential Information for its own purposes or the benefit of anyone other than the Company;

	
(c)  

	
Deliver promptly to the Company on termination of this Agreement, or at any time the Company may so request, all Confidential Information including but not limited to memoranda, notes, records, computer software discs, reports and other confidential documents (and all copies thereof) relating to the Company and its business, that Consultant may then possess or have under or its control.

 

	
(d)  

	
Notwithstanding the foregoing, information shall not be considered to be Confidential Information if it is required to be disclosed by law or by any government, regulatory or self-regulatory agency or body (unless Consultant is advised in writing by Company’s counsel that the information is not required to be disclosed); or if it becomes generally available to the public other than as a result of Consultant’s acts or omissions.

 

  

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5.0           Miscellaneous.

5.01           Further Assurances.  Each of the parties shall hereafter execute all documents and do all acts reasonably necessary to affect the provisions of this Agreement.

	
  

	
5.02

	
Successors.  The provisions of this Agreement shall be deemed to obligate, extend to and inure to the benefit of the successors, assigns, transferees, grantees, and indemnities of each of the parties to this Agreement.

	
  

	
5.03

	
Independent Counsel.  Each of the parties to this Agreement acknowledges and agrees that it has been represented by independent counsel of its own choice throughout all negotiations which preceded the execution of this Agreement and the transactions referred to in this Agreement, and each has executed this Agreement with the consent and upon the advice of said independent counsel.  Each party represents that he or it fully understands the provisions of this Agreement, has consulted with counsel concerning its terms and executes this Agreement of his or its own free choice without reference to any representations, promises or expectations not set forth herein.

5.04           Integration. This Agreement, after full execution, acknowledgment and delivery, memorializes and constitutes the entire agreement and understanding between the

parties and supersedes and replaces all prior negotiations and agreements of the

parties, whether written or unwritten.  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 hereinabove.

5.05           Counterparts.  This Agreement may be executed in any number of counterparts.

	
  

	
5.06

	
Expenses Associated With This Agreement.  Each of the parties hereto agrees to bear its own costs, attorney’s fees and related expenses associated with this Agreement.

5.07           Arbitration.  Any dispute or claim arising to or in any way related to this Agreement shall be settled by arbitration in the state where the Company maintains its US headquarters at the time such dispute arose, in accordance with that state’s laws, and without effect to that state’s choice of law.  All arbitration shall be conducted in accordance with the rules and regulations of the American Arbitration Association ("AAA").  AAA shall designate an arbitrator from an approved list of arbitrators located in Phoenix, Arizona, 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 expenses associated with such arbitration.  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 conclusion of the arbitration, 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.

 

  

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

For the “Company”:                                                                           For the “Consultant”:

  

Date:  April 8, 2010                                                                         Date:  April 8, 2010

 Global Recycling Technologies, Ltd                                               Ventana Capital Partners,

/s/ JOHN LORENZ                                                                           /s/ Ralph Amato

John Lorenz – CEO                                                                           Ralph Amato - President

 

 

  

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