Document:

exhibit_10-2.htm

Exhibit 10.2

ADDENDUM TO LEASE DATED

JANUARY 28, 2011

BY AND BETWEEN

PANCAL WEST MARINE 287 LLC,

a Delaware limited liability company

(the “Landlord”)

and

WEST MARINE PRODUCTS, INC.,

a California corporation

(the “Tenant”)

This Addendum shall modify and, to the extent inconsistent with, amend that certain Industrial Real Estate Lease (Single Tenant) between PANCAL WEST MARINE 287, LLC, a Delaware limited liability company (the “Landlord”) and WEST MARINE PRODUCTS, INC., a California corporation (the “Tenant”) (the “Lease”). Except as expressly set forth in the Addendum, all capitalized terms shall have the meanings assigned to them in the Preprinted Lease, The Preprinted Lease, as modified and amended by this Addendum and all riders and exhibits attached hereto, shall be referred to as the “Lease”.

 

Section 1.05:  Options to Extend.

Landlord hereby grants to Tenant one (1) five (5) year option (“Option Term”) to extend the Lease Term (“Option to Extend”). Such Option to Extend shall be exercised in writing and delivered to Landlord no later than six (6) months prior to the expiration of the initial Lease Term. The Option Term shall commence upon the expiration of the initial Lease Term. The rent for the Option Term shall be ninety percent (90%) of “market rent”. “Market rent” shall mean that rent which is being paid by tenants in the initial year of a lease for similar property in the same geographic area. The parties shall bargain in good faith to reach agreement on “market rent”. In the event that the parties fail to agree on “market rent”, the parties shall agree on a single arbitrator who shall determine “market rent”. The arbitrator's decision shall be made in writing within ten (10) days from the date the arbitrator accepts appointment and shall specify the reasons for the decision. In the event that the parties cannot agree on an arbitrator, then either party may apply to the nearest office of the American Arbitration Association for the appointment of an arbitrator pursuant to their commercial rules of arbitration. Any arbitrator appointed herein shall be an industrial real estate broker with at least five (5) years experience in the county where the property is located. In the event the American Arbitration Association is no longer in existence, such arbitrator shall be appointed by the presiding judge of the superior court of the county in which the Property is located.

 

Section 1.09:  Commission.

Tenant warrants and represents that it has not been represented by any broker or finder in connection with this transaction except for CB Richard Ellis (“CB”). Tenant makes no representation or warranty concerning any brokers, finders, or other parties that may have represented Landlord in connection with the negotiation of this Lease. Landlord agrees to pay CB a brokerage commission pursuant to separate written agreement with Landlord.

 

  

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Section 1.13:  Landlord’s Share of Profit on assignment or Sublease.

 

If Tenant desires to sublease all or any portion of the Property or assign this Lease in a transaction requiring Landlord's consent, Tenant shall request Landlord's consent in writing. Landlord shall have ten (10) working days after the receipt of Tenant's request for Landlord's consent together with all financial information reasonably available concerning the proposed assignee or sublessee to either (i) consent to such sublease or assignment, (ii) elect to recapture the Property (or such portion thereof as is the subject of any proposed sublease), or (iii) refuse consent to the proposed assignment or sublease. If Landlord fails to elect one of the three options afforded by this Section within said ten (10) day period, such failure shall be deemed a consent to such sublease or assignment.

 

If Landlord consents to such assignment or sublease (or is deemed to have consented by Landlord's failure to timely make one of the elections provided in this section), Tenant shall be free to enter into the assignment or sublease, Landlord shall not be entitled to any portion of the assignment or sublease rental or other consideration receivable by Tenant in connection with such assignment or sublease, and Tenant shall not be released from any liability under this Lease as a result of such assignment or sublease.

 

If Landlord elects to recapture the Property (or the portion thereof that is the subject of the proposed transaction.), then this Lease shall terminate on the date Tenant surrenders possession of the Property (or the portion thereof which is to be the subject of the proposed sublease) and this Lease shall continue with respect to the remaining portion of the Property (if any) [with appropriate modifications to reflect the multi--tenant nature of the building following such a sublease and the proration of rent and operating expenses]. If Landlord elects to recapture possession of the Property (or the portion thereof that is to be the subject of the proposed sublease), Tenant shall surrender the Property (or the portion thereof that is to be recaptured) not later than ninety (90) days after Landlord exercises such recapture option. Landlord shall specify in writing the reasons for any refusal to consent to an assignment or sublease,

 

ARTICLE FOURTEEN  ADDITIONAL PROVISIONS

Section 14.01:  Audit. 

Tenant may, at any Time during the term or during the limitations period provided by law to Landlord for collection of past due rent thereafter, inspect, examine and audit Landlord's records relating to the determination of any Additional Rent or other charges imposed on Tenant for the period covered by any statement issued by the Landlord. If such inspection, examination or audit discloses an overpayment by Tenant for Additional Rent or other charges, Landlord shall promptly pay to Tenant the amount of such excess payment and (if such amount exceeds three percent of Tenant's actual liability for such charge) Landlord shall also pay Tenant for the cost of such inspection, examination, or audit. Notwithstanding, Tenant shall not audit more than once per year and such audit shall be limited to the current lease year and the prior lease year.

 

Section 14.02:  Intentionally Omitted.

  

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Section 14.03:  Improvement District and CC&Rs.

Notwithstanding anything to the contrary in this Lease, whenever Landlord is required to consent to or cooperate with any general or special assessments or improvement district or preparation of or modification to covenants, conditions and restrictions ('CC&Rs) to be recorded with reference to the Property, Landlord shall not do so without Tenant's prior written consent. Landlord shall not voluntarily include the Property in a general or special assessment or improvement district or agree to the recording of CC&Rs or modifications thereto unless directed to do so by Tenant. In the event Landlord breaches the covenant contained in this Section 14.03, and such breach causes the imposition of a general or special assessment or improvement district or CC&Rs, which have an adverse financial effect on Tenant, then any such assessment or cost resulting therefrom shall not be included in real property tax or other Additional Rent under this Lease.

 

Section 14.04  Direct Assessment. 

Notwithstanding anything to the contrary contained in this Lease (including, without limitation, Section 4.02), and at Tenant's option, Tenant may cause any bill or invoice relating to any Real Property tax or other assessment to be sent directly to Tenant, in which case Tenant shall pay such tax or assessment on or before the delinquency date for such tax or assessment. If Tenant does not elect to have the bill or invoice of any real property tax or assessment sent directly to Tenant, then Tenant shall pay the amount of such tax or assessment to Landlord within thirty (30) days after receipt of a demand for such amount from Landlord, which demand shall include a photocopy of such bill or invoice from the taxing authority.

 

Section 14.05:  Governmental Regulations.

Tenant shall not be required to construct or install any capital or structural improvements, alterations, modifications or additions to the Property unless the need for such capital or structural improvements, alterations, modifications or additions is the result of Tenant's particular use of the Property (and are not the result of governmental requirements imposed on buildings generally available for human occupancy) or are required in connection with the issuance of any governmental permit for Tenant's construction of any alterations, modifications, or additions .

 

Section 14.06  Hazardous Materials.

Landlord shall provide to Tenant any environmental report that it has in its possession. Tenant shall have the right to reasonably approve such report. Notwithstanding, neither Landlord nor Tenant shall cause the presence or threatened presence of Hazardous Materials in, on or about the Property, and shall comply with Section 5.03.

 

  

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Section 14.07:  Signs. 

Notwithstanding anything to the contrary contained in this Lease (including, without limitation, Section 5.04), Tenant shall have the right to construct and install the maximum building-mounted sign allowed by law. If Landlord has adopted any sign criteria, a copy thereof shall be attached to this Lease as an exhibit and Tenant's sign(s) shall comply with such criteria. If Landlord's consent to any sign is required under the Lease or under such sign criteria, Landlord's consent to any sign will not he unreasonably withheld. Any amendments to the sign criteria shall not affect any signs previously constructed and installed by Tenant.  Tenant’s current signage is approved.

 

Section 14.08:  Landlord's Indemnity. 

Notwithstanding anything to the contrary contained in this Lease (including, without limitation, Sections 6.02 and 13.02), Landlord shall indemnify, defend (with attorneys selected by Tenant) and save Tenant harmless from and against any and all claims, actions, damages, liabilities and expenses (including reasonable attorneys' fees through all trial and appellate proceedings and costs) in connection with loss of life, personal injury and/or damage to property arising from or relating to the following: (1) any negligent act or omission of Landlord, its agents, or employees; or (2) any breach of this Lease by Landlord.

 

Section 14.09  Landlord's Repair Duties.

Notwithstanding anything to the contrary contained in this Lease (including, without limitation, Section 6.04), Landlord shall (at Landlord's sole cost and expense) repair and maintain structural defects in the foundation, the subflooring, the bearing walls of the Building, and all other structural elements of the Building in good order, condition, and repair provided that any structural damage caused by Tenant's use (except reasonable wear and tear) shall be repaired by Tenant at its sole cost and expense. Landlord shall maintain and repair structural elements of the roof, and shall be responsible to replace the entire roof membrane when reasonably necessary. Landlord shall be responsible for resurfacing of the parking areas when necessary. Tenant shall be responsible for maintenance and repair of non-structural elements of the roof, including the roof membrane, and maintenance and repair of the parking lot surface, including potholes and surface cracks.

 

Section 14.10:  Repair and Offset. 

If Landlord fails to perform any item  of repair or maintenance required to be performed by Landlord under this Lease (including, without limitation, those items described under Section 14.09) within a reasonable time (not to exceed thirty (30) days) after written notice from Tenant specifying the need for same, or if such repair or maintenance would reasonably require longer than thirty (30) days, then commence such repair or maintenance within thirty (30) days and diligently prosecute the same to completion, and if the need for such repair and maintenance materially and detrimentally affects Tenant's use and enjoyment of the Property, Tenant may (as its nonexclusive remedy) perform such item of repair and maintenance and deduct the cost thereof against the next installment(s) of Monthly Base Rent, Additional Rent, or other monetary obligations payable by Tenant under this Lease.

 

  

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Section 14.11  Repair and Restoration.

Landlord shall promptly commence and thereafter diligently prosecute the completion of any repairs or restoration work required to be performed by Landlord under Articles 7 and/or 8 of this Lease. Notwithstanding anything to the contrary contained in Articles 7 or 8 of this Lease, and subject to Section 13.12, which shall include the time period from submission of plans for issuance of a building permit, if the Landlord fails to commence such repair and restoration work within sixty (60) days after the date of Tenant's notice to Landlord of such damage or destruction (“Last Start Date”), or fails to substantially complete such repairs and restorative work within (180) days after the date of such notice of damage or destruction (“Last End Date”), Tenant shall have the right (as its non­exclusive remedy) to cancel this Lease on written notice to Landlord. If Tenant elects to cancel the Lease as provided above, such cancellation shall be effective 30 days after Tenant's notice of cancellation. Such notice must be given no later than thirty (30) days following the Last Start Date or the Last End Date.

 

Section 14.12:  Damage Near End of Term.

Notwithstanding anything to the contrary contained in Article 7 of the Lease, if Landlord gives notice of its election not to repair and restore the Property under this section and of its election to terminate the Lease, and if Tenant has any unexercised options to extend the term at the time of Landlords' notice, Tenant may annul and vacate Landlord's election to terminate this Lease by exercising its next occurring option to extend the term within thirty (30) days after Tenant's receipt of written notice from Landlord advising Tenant of Landlord's election to terminate this Lease. In the event Tenant annuls and vacates any election by Landlord to terminate this Lease based upon damage or destruction to the Property, Landlord shall repair such damage as required by Article 7.

 

Section 14.13:  Landlord’s Defaults.

Landlord shall be in default under this Lease if the Landlord fails to perform any of the terms, covenants, or conditions of this Lease within 30 days after written notice from Tenant of said failure; provided, however, that if the nature of the default is such that it cannot be reasonably cured with such 30 day period, Landlord shall not be in default if Landlord begins any performance required to cure such default within the 30 day period and thereafter diligently and uninterruptedly prosecutes such cure to completion.

 

Section 14.14:  Tenant's Remedies. 

On the occurrence of any default by Landlord, Tenant shall have all rights and remedies provided by law, in equity, or under this Lease; any conflict between rights and remedies at law or equity, and rights and remedies under this Lease shall be controlled by the language of the Lease.

 

Section 14.15:  Time of Performance.

In the event the scheduled date for the performance of any duty or obligation required to be performed by the parties under the Lease or in the event the scheduled date for the exercise of any right or option contained therein shall fall on a Saturday, Sunday, or legal holiday, such performance or exercise shall be timely if given or exercised on the next following business day.

 

  

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Section 14.16:  Limitation on Landlord's Recovery.

 

For the purpose of Section 10.03 of the Lease, all renovation and alterations costs of the Property and all real estate commissions for any replacement lease as are actually paid by Landlord shall collectively be referred to as the “Replacement Costs”. Notwithstanding anything to the contrary contained in this Lease, Landlord shall only be entitled to recover that portion of the Replacement Costs that bears the same proportion to the total Replacement Costs that the remaining term of this Lease at the time of the commencement of such replacement lease bears to the total term of such replacement lease.

 

Section 14.17:  Subordination. 

If requested by Tenant, Landlord shall use its best efforts to obtain a subordination, recognition, and non-disturbance agreement (a “Recognition Agreement”) from any ground lessors, mortgagees, beneficiaries, or other lienholders (collectively and alternatively referred to as “Mortgagee”) of any ground lease, mortgage, deed of trust, or other encumbrance presently affecting the Property (collectively and alternatively referred to as “Mortgage”).

 

Such a Recognition Agreement shall be in a form and content reasonably acceptable to Tenant and shall require the Mortgagee to recognize this Lease in the event of any foreclosure of such Mortgage, to not name Tenant in any foreclosure action relating to such Mortgage, and to not disturb Tenant's possessory rights in the Property so long as Tenant is not in default under the Lease and continues to pay the rent and perform the obligations specified under the Lease.

 

Section 14.18:  Tenant’s Attornment. 

Tenant’s obligation to attorn to and recognize any successor of Landlord, other than a. mortgagee or lender holding a deed of trust, shall (at Tenant's option) be subject to execution. and delivery of a written instrument wherein such successor expressly agrees for the benefit of Tenant to assume all of Landlord's obligations under this Lease.

 

Section 14.19:  Payments to Lender. 

If Tenant is directed in writing by any Mortgagee to pay rentals directly to such Mortgagee, its designated agent, or any court appointed receiver, Landlord agrees that Tenant may make such payments as directed by Mortgagee and may rely- upon the written notice received from Mortgagee without further investigation into the propriety of the Mortgagee’s notice or the existence of any defaults by Landlord in its obligations to the Mortgagee under the Mortgage. Landlord agrees that any payments by Tenant in accordance with the direction contained in any notice received from the Mortgagee shall not constitute an event of default under the Lease.

 

  

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Section 14.20:  Financial Statements.

Landlord will cooperate with Tenant in executing any documents reasonably required to affect any financing by Tenant of the Lease or Tenant's operations in the Property to any forfeiture, encumbrance or lien. Landlord's obligations under this section shall include (without limitation) the duty to make non-material changes in this Lease (excluding any obligation to pay Base Rent or Additional Rent and excluding any change in the length of the term), to give notices of default to Tenant's lender upon the occurrence of a default by Tenant under this Lease, to accept performance by Tenant's lender as the same as performance by Tenant, and to allow Tenant's lender to succeed to Tenant's interest in this Lease and in the Property following the foreclosure of Tenant's interest in this Lease and the Property by Tenant's lender.

 

Section 14.21  Financial Statements. 

Notwithstanding anything to the contrary contained in this Lease (including, without limitation, the provisions of Section 11.05), Tenant's obligation to provide any reports, audits, or other information (including, without limitation, information relating to Tenant's gross sales) shall be subject to any limitations, restrictions, or prohibitions imposed by any law or regulation including (without limitation) the Securities Exchange Act of 1934 and any administrative regulations promulgated by the Securities Exchange Commission in connection therewith. Landlord agrees to receive and retain any and all financial information provided by Tenant in confidence and to not disclose same to any of Tenant's actual or potential competitors unless such disclosure is required by law. Landlord's non­disclosure obligation under this Section shall survive the expiration or earlier termination of this Lease.

 

Section 14.22  Notices by  Facsimile. 

Notwithstanding anything to the contrary contained in this Lease (including, without limitation, the provision of Section 13.06), any notice, demand or other written communication authorized or required under this Lease may be served by facsimile transmission in the manner prescribed by this Section.

 

Any facsimile transmission to Landlord shall be sent to (916) 381-7639 (or such other facsimile number as Landlord may from time to time designate) and any facsimile transmission to Tenant shall be sent to (831) 728-5926. Any service by facsimile (1) shall be accompanied by a cover sheet showing the name of the recipients, the same of the sender, the number of pages in the transmission, and a telephone number to contact in case of an incomplete transmission; (2) shall be sent by a facsimile machine capable of generating a transmission record showing the number of pages sent, the date and time of the transmission, and an indication of any errors in the transmission; and (3) shall be followed by the mailing of a duplicate copy of the notice, demand, or other written communication, the facsimile cover sheet, and the transmission record showing the transmission was sent without error (which mailing shall be sent to the recipient's address in the manner prescribed by the Lease for service by mail). Any notice by facsimile shall be deemed served and given on the first business day following transmission. Any notice by facsimile shall be deemed served and given on the first business day after transmission.

 

  

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Section 14.22:  Right of First Refusal (Purchase).

 

Landlord hereby grants a right of first refusal to Tenant to purchase the Property in accordance with the provisions of this Section. If Landlord shall receive a bona fide offer to purchase the property during the term of this Lease (as extended or renewed) that Landlord proposes to accept, Landlord shall do one of the following: (i) offer the property for purchase by Tenant on the same terms respecting the Property as are contained in the offer received by Landlord or (ii) accept such offer subject to the condition that Landlord shall not be bound to complete the sale under such offer until Landlord first offers the Property to Tenant in accordance with this Section and Tenant's right to purchase same expires. Landlord shall offer the Property to Tenant for purchase by a written notice referencing this Section and enclosing a full, true and correct photocopy of the purchase offer (the “Offer”) received by Landlord (the “Offering Notice”). Upon receipt of Landlord's Offering Notice, Tenant shall have fifteen (15) days to accept in writing the offer contained in the Offering Notice. Upon Tenant's written acceptance of the offer specified in the Offering Notice, the Offer shall thereafter constitute a contract between Landlord and Tenant (the “Contract”) and Tenant shall have the right to purchase the Property on the terms and conditions contained in the Contract; provided, however that any contingency, examination, or other periods for the exercise of any right or the performance of any obligation specified in the Contract shall commence on the date of Tenant's acceptance of the Offer. If Tenant fails to give notice of its election to purchase the property within the fifteen day period prescribed above, then Landlord may sell the Property to the offeror recited in the Offer on the terms described therein; provided, however, that if the offeror described in the offer fails to complete its purchase on the terms and conditions recited in the offer or if Landlord proposes to accept an offer to purchase the Property from some other party (whether on the same or other terms), Landlord will not sell the Property unless Landlord first offers same to Tenant in the manner prescribed by this Section.

 

Section 14.23:  Roof and HVAC Repair.

Landlord, at its sole cost and expense, agrees that it will maintain, repair and/or replace the roof system of the Building based upon consultation with, and recommendations of, roofing contractors retained by Landlord throughout the Lease Term.  Landlord shall not be responsible for repairing or replacing damage to the roof due to acts of Tenant, its agents, employees, or contractors. Tenant shall be responsible for repairing or replacing damage to the roof due to acts of Tenant, its agents, employees, or contractors. Further, Tenant shall not be responsible for costs of repair to the HVAC system in excess of One Thousand Dollars ($1,000.00) per occurrence, except for repairs due to the acts of Tenant, its agents, employees, or contractors. Landlord shall be responsible for the costs of repair to the HVAC system in excess of One Thousand Dollars ($1,000.00) per occurrence, except for repairs due to the acts of Tenant, its agents, employees, or contractors. Tenant shall perform all repairs to the HVAC and Landlord shall reimburse Tenant for the excess costs thereof within ten (10) days of presentation of invoice outlining the costs.  

 

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SIGNATURE PAGE TO ADDENDUM TO LEASE

LANDLORD:

PANCAL WEST MARINE 287 LLC, 

a Delaware limited liability company

By:PanCal Portfolio, LLC,

	
  

	
a Delaware limited liability company,

	
  

	
Sole Member

	
  

	
By:  Panattoni PanCal, LLC,

                    a Delaware limited liability company,

                   Administrator

 

By:Panattoni PanCal Manager, LLC,

a Delaware limited liability company,

Manager

By:     /s/ Carl D. Panattoni          

Carl D. Panattoni, Manager

TENANT:

WEST MARINE PRODUCTS, INC., 

a California corporation

By:    /s/ Christopher Bolling   

Christopher Bolling, SVPUnassociated Document

Exhibit 10.1

 

 

SEPARATION AGREEMENT

THIS SEPARATION AGREEMENT (as the same may be amended, modified or supplemented from time to time, the “Agreement”) is made and entered into as of January 25, 2011 (the “Effective Date”), by and between Green EnviroTech Holdings Corp., a Nevada corporation (including its successors, the “Corporation”) and Jeffrey Chartier (“JC”).

WHEREAS, JC is: the Corporation’s President; he serves on the Board of Directors of the Corporation; and he holds 4,495,680 shares, of the Corporation’s common  stock (“Common Stock”) (the “JC Shares”);

WHEREAS, the President wishes to resign, and the Corporation will accept such resignation pursuant to the terms defined in this Agreement;

NOW, THEREFORE, in consideration of the premises and mutual covenants and agreements hereinafter contained, the parties hereto agree as follows:

1. Resignation.  The parties hereby agree that the employment arrangement between JC and the Corporation pursuant to which JC serves as the President and any other position with the Corporation is automatically and without further action resigned from his duties as of the Effective Date. Except as expressly provided in this Agreement, all rights and obligations of JC and the Corporation with respect to JC’s employment with the Corporation are duly and effectively ceased as of the Effective Date.  As of the Effective Date, JC resigns from the Corporation’s Board of Directors.  After the Effective Date, JC agrees to cooperate with the Corporation as is reasonably necessary to assist on transitional and other issues.  As of the Effective Date, JC agrees that he shall not represent to any third party that he is acting as an officer or director of the Corporation.

2. Transfer of Administrator Rights.  As of the Effective Date, all administrative authority rights held presently by JC shall be transferred to Gary M. DeLaurentiis;

3. Lock up/ Leak out.   In consideration for JC’s agreement he agrees to a six (6) month lock up of his 4,495,680 shares, and subsequent limited “leak-out” selling of no more than the lower of: 1% of the issued and outstanding shares in any 90 day period; or 100,000 shares in any 30 day period, the Company shall issue, 50,000 shares of Common Stock (the “LL Transfer Shares”);

4.  Voting Rights.  As of the Effective Date, JC relinquishes all voting rights to the JC shares, giving Gary M. DeLaurentiis the proxy to vote such shares, the consideration for which shall be an issuance of 25,000 shares of Common Stock (“Proxy Transfer Shares”).

5.  Right of First Refusal.  If JC intends to sell, assign, transfer, pledge, hypothecate or otherwise dispose of any number of the JC shares, LL Transfer Shares, Proxy Transfer Shares of Expense Reimbursement Shares (see paragraph 8)  he shall  send notice of such intention to the Corporation, which notice shall fully identify the proposed transferee and the terms and conditions of the transfer, shall contain a representation by JC that the proposed sale or transfer is a bona fide transaction, and shall offer to sell all such JC Shares to the Company at a 10% discount to the 20 day average closing price of the Corporation’s Common Stock (the "Offer and the Offered Shares").  Upon receipt of the Offer by the Corporation (the "Offer Date"), the Corporation shall have the option for a period of seventy two (72) hours to elect to purchase all or part of the Offered Shares.  If the Corporation does not elect to purchase the Offered Shares within seventy two (72) hours following the Offer Date it shall so notify JC not later than the expiration of the seventy two (72) hour period.

 

  

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6. Severance.  As severance pay, the Company shall issue, or cause the transfer of 50,000 shares of Common Stock (the “Severance Shares”);

7. Benefits.  JC will not be eligible for any compensation or employer-sponsored benefits after the Effective Date.

8. Expense Reimbursement.  JC’s outstanding expenses of approximately $30,000 shall be reimbursed as follows:  $10,000 payable over a ninety (90) day period: $5,000 within thirty (30) days of the Effective Date )(on or before February 22, 2011);  $5,000 thirty (30) days thereafter (on or before March 21,2011);, and the final payment of $10,000 thirty days thereafter (on or before April 21,2011), plus an issuance of 25,000 shares of Common Stock by the Corporation (“Expense Reimbursement Shares”).

9. Corporation Property. JC represents warrants and covenants that he has returned to the Corporation, or will return to the Corporation on or before the Effective Date, all Corporation property including, but not limited to, credit cards, cash cards, banking information, computers, telecommunications equipment and keys.

10.  Representations by and Covenants of JC.  JC hereby represents and warrants to the Corporation that:

a. As of the Effective Date, JC shall beneficially own 4,645,680 shares of the Corporation’s Common Stock (4,495,680, along with the LL Transfer Shares, Proxy Transfer Shares, Severance Shares and Expense Reimbursement Shares).  A total of 4,495,680 of such shares shall be subject to the Lock-Up/ Leak-Out defined in Section 3.

b. As of the Effective Date and the Corporation will have 63,566,758 shares of Common Stock issued and outstanding (including the Severance Shares and the Expense Reimbursement Shares).

c. All shares of issued and outstanding Common Stock are validly issued, fully paid and nonassessable.

d. All issuances of Common Stock by the Corporation have been made in accordance with applicable federal securities laws and the state securities laws of the given states in which the securities were offered and/or sold.  Accordingly, the Corporation will not be subject to contingent liabilities which could include, without limitation, (i) rescission obligations and/or other liabilities for damages to purchasers of Common Stock who resided in the States where the Common Stock was offered and/or sold; and/or (ii) punitive damages, fines, penalties and/or other sanctions which might be imposed in connection with any enforcement actions brought by any such regulatory authorities of the States where the Common Stock was offered and/or sold.

e. The Corporation has filed all reports required to be filed by it under the Securities Act of 1933, as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including pursuant to Section 13(a) or Section 15(d) of the Exchange Act (the foregoing materials, including the exhibits thereto, being collectively referred to herein as the “SEC Reports”).  As of their respective dates,  the SEC Reports complied as to form in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the SEC promulgated thereunder, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading;

 

  

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11. [INTENTIONALLY OMITTED]

 

12. Mutual Non-Disparagement.  JC solely on behalf of himself and his estate, and the Corporation, for itself and on behalf of its officers, directors, partners, managers, members, employees, agents, and attorneys, with regard to JC and his employment with the Corporation and his service to the Corporation, expressly acknowledge, agree, and covenant that they will not make any statements, comments, or communications that could constitute disparagement of one another or that may be considered to be derogatory or detrimental to the good name or business reputation of one another.

13. Release. In exchange for the consideration provided for in this Agreement, JC irrevocably and unconditionally releases the Company, its predecessors, parents, subsidiaries, affiliates, and past, present and future officers, directors, agents, consultants, employees, representatives, and insurers, as applicable, together with all successors and assigns of any of the foregoing (collectively, the “Releasees”), of and from all Claims, demands, actions, causes of action, rights of action, contracts, controversies, covenants, obligations, agreements, damages, penalties, interest, fees, expenses, costs, remedies, reckonings, extents, responsibilities, liabilities, suits, and proceedings of whatsoever kind, nature, or description, direct or indirect, vested or contingent, known or unknown, suspected or unsuspected, in contract, tort, law, equity, or otherwise, under the laws of any jurisdiction, that the JC or his predecessors, legal representatives, successors or assigns, ever had, now has, or hereafter can, shall, or may have, against the Releasees, as set forth above, jointly or severally, for, upon, or by reason of any matter, cause, or thing whatsoever from the beginning of the world through, and including, the date of this Agreement (“Claims”).

Such release includes, but is not limited to, the violation of any express or implied contract; any federal, state or local laws, restricting an employer’s right to terminate employees, or otherwise regulating employment; workers compensation, wage and hour, or other employee relations statutes, executive orders, ordinance, or regulations, including any rights or Claims under Title VII of the Civil Rights Act of 1964, as amended the Civil Rights Act of 1991, the Americans with Disabilities Act of 1990, the Rehabilitation Act of 1973, the Family and Medical Leave Act of 1993, the Civil Rights Act of 1866, the Employee Retirement Income Security Act of 1974, the Age Discrimination in Employment Act of 1967 (“ADEA”) (29 U.S.C. § 626, as amended), the Fair Labor Standards Act, the WARN Act, or any state or local laws covering the same subject matter; tort (including, without limitation, negligent conduct, invasion of privacy and defamation); any federal, state, or local laws providing recourse for retaliation, wrongful discharge, dismissal or other obligations arising out of public policy, physical or personal injury, fraud, negligent misrepresentations, and similar or related Claims. The laws referred to in this section include statutes, regulations, other administrative guidance, and common law doctrines. Any and all Claims and/or disputes arising out of or relating to any of the foregoing shall be, and are, finally compromised, released and settled.

 

Notwithstanding the foregoing, this release does not include JC’s right to enforce the terms of this Agreement.  JC understands that this Agreement releases Claims that he may not know about. This is JC’s knowing and voluntary intent, even though JC recognizes that someday he might learn that some or all of the facts that he currently believes to be true are untrue and even though he might then regret having signed this Agreement.

 

Except to enforce this Agreement, JC agrees that he will not pursue, file or assert or permit to be pursued, filed or asserted any civil action, suit or legal proceeding seeking equitable or monetary relief (nor will he seek or in any way obtain or accept any such relief in any civil action, suit or legal proceeding) in connection with any matter concerning his employment relationship with the Corporation and/or the termination thereof with respect to all of the Claims released herein arising from the beginning of the world up to and including the date of execution of this Agreement (whether known or unknown to him and including any continuing effects of any acts or practices prior to the date of execution of this Agreement). Except for the payments and benefits set forth herein, JC acknowledges that he has been paid all wages and other amounts due to him and that he is not entitled to any other payments or benefits of any kind.

 

If JC should bring any action arising out of the subject matter covered by this Agreement, except to enforce this Agreement, he understands and recognizes that he will, at the option of the Company, be considered in breach of this Agreement and shall be required to immediately return any and all funds received pursuant to this Agreement.  Furthermore, if the Corporation should prevail concerning any or all of the issues so presented, JC shall pay to the Corporation all of the costs and expenses of defense, including attorney’s fees.

 

  

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14. Confidentiality. The parties hereto agree that the terms and conditions of this Agreement are confidential and further agree that they shall not divulge the terms of this Agreement to third parties generally, except as required by applicable law or to enforce this Agreement or to defend against a claim related thereto; provided, however, that the parties may reveal such terms to their respective accountants, legal counsel and other professional advisors. In the event this covenant of confidentiality is breached, the Corporation and JC may pursue legal remedies for any damage arising from a breach of this Section 14. The parties agree that any press release or other public disclosure relating to the contents of this Agreement shall be mutually acceptable to both parties hereto. Notwithstanding the foregoing, the Corporation shall be under no obligation to reach agreement with JC on the contents of any such public announcement or disclosure required by applicable law, rule or regulation, including, but not limited to, any public announcement or disclosure required by federal or state securities laws, rules or regulations.  Notwithstanding anything provided elsewhere in this Section 14, the parties may make any disclosure required by law, subpoena, regulation or governing authority, including disclosure required by a self-regulatory organization such as the Financial Industry Regulatory Authority (“FINRA”) or the Securities and Exchange Commission (the “SEC”) and to their respective lawyers and accountants.  JC hereby authorizes the Corporation to disclose the terms and conditions of this Agreement in any filings it makes with the SEC and authorizes the Corporation to file this Agreement as an exhibit to any filings it makes with the SEC.

15. Cooperation.

a.   JC agrees to give reasonable cooperation, at the Corporation's request, in any pending or future litigation, regulatory proceeding or arbitration brought against the Corporation or any of its affiliates and in any investigation the Corporation or any of its affiliates may conduct. The Corporation shall reimburse JC for all expenses reasonably incurred by him in compliance with this Section 15(a) but shall not reimburse JC for his time spent in compliance with this Section 15(a).  Furthermore, JC agrees, in the event he receives a court or administrative order, subpoena, request for interview or similar demand regarding the Corporation, including, but not limited to, from a regulatory or law enforcement agency, he shall, except to the extent he is advised not to do so by his legal counsel, immediately inform the Corporation in writing of his receipt of such subpoena request or similar demand.

b. The Corporation agrees to cause its employees, officers, directors, agents and other representatives to give reasonable cooperation, at JC’s request, in any threatened, pending or completed action, suit or proceeding (whether civil, criminal, administrative, formal or informal investigative or other), whether instituted by the any governmental agency, FINRA, the New York Stock Exchange, SEC, stockholder of the Corporation, or any other party, or any inquiry or investigation that JC  in good faith believes might lead to the institution of any such action, suit or proceeding brought against JC.

16. Acknowledgement of Consideration. JC  acknowledges that the only consideration that he has received for executing this Agreement is the consideration set forth in this Agreement and that no other promise, inducement, threat, agreement or understanding of any kind or description has been made with or to JC by the Corporation to cause him to agree to the terms of this Agreement.  JC acknowledges that other than as specifically set forth herein he has no Claims for money due from the Corporation.

 

  

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17. Notices.  All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given (i) on the date of service if served personally on the party to whom notice is to be given; (ii) on the day of transmission if sent via facsimile transmission to the facsimile number given below, and telephonic confirmation of receipt is obtained promptly after completion of transmission; (iii) on the day after delivery to Federal Express or similar overnight courier or the Express Mail service maintained by the United States Postal Service; or (iv) on the fifth (5th) day after mailing, if mailed to the party to whom notice is to be given, by first class mail, registered or certified, postage prepaid and properly addressed, to the party as follows:

If to the Corporation to:

Attn:  Gary M. DeLaurentiis

Phone:  209-863-9000

Fax: 209-863-9900

With a copy to:

Andrea Cataneo, Esq.

Sichenzia Ross Friedman Ference LLP

61 Broadway, 32nd Floor

New York, NY 10006

Phone: (212) 930-9700

Fax: (212) 039-9725

 

 

If to Jeffrey Chartier

227 Mott Street, Apt South Suite

New York, NY 10013

 

 

or at such other place as may be designated by a party in writing by like notice.

18. Further Assurances  Each of the parties hereto shall execute and deliver any and all additional papers, documents, and other assurances, and shall do any and all acts and things reasonably necessary in connection with the performance of their obligations hereunder and to carry out the intent of the parties hereto.

 

  

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19. Headings The section headings contained herein are for convenience only and shall not be deemed to control or affect the meaning or construction of any provision of this Agreement.

20. Counterparts.  This Agreement may be executed in counterparts, it being understood that such counterparts, taken together, shall constitute but one and the same agreement.  A facsimile signature shall constitute an original signature.

21. Governing Law, Venue, Waiver of Jury Trial   This Agreement shall be governed by and construed solely and exclusively under and pursuant to the laws of the State of California as applied to agreements among California residents entered into and to be performed entirely within California.  Each of the parties hereto expressly and irrevocably (1) agrees that any legal suit, action or proceeding arising out of or relating to this Agreement will be instituted exclusively in the California State Superior Court, or in the United States District Court in the appropriate local district to Gary M. DeLaurentiis (2) waives any objection they may have now or hereafter to the venue of any such suit, action or proceeding, and (3)  consents to the jurisdiction of either the California Superior State Court, or the United States District Court for the appropriate district in CA in any such suit, action or proceeding.  The Parties agree, however, that should any dispute arise in the administration of this Agreement, that the dispute shall be resolved through arbitration under the rules of the American Arbitration Association, with its location in California.

 

22. Entire Agreement   This Agreement sets forth the entire agreement among the parties with respect to the subject matter hereof and supersedes all prior agreements or understandings among the parties pertaining to the subject matter hereof, whether oral, implied or written.  There are no warranties, representations or other agreements between the parties in connection with the subject matter hereof except as specifically set forth or incorporated herein.

23. Interpretation. The division of this Agreement into Sections, and subsections and the insertion of headings are for convenience of reference only and will not affect its construction or interpretation. Terms of gender will be deemed interchangeable, as will singular and plural terms, in each case, unless the context otherwise requires.

24. No Amendment/Waiver.  This Agreement may not be amended or modified in any manner nor may any of its provisions be waived except by written amendment executed by the parties expressly indicating the parties’ intention to so amend or modify this Agreement.  Any such amendment, modification or waiver shall be effective only in the specific instance and for the purpose for which it was given.

25. Non-Assignability.  The obligations of JC and the Corporation hereunder are personal and may not be assigned or transferred in any manner whatsoever, nor are such obligations subject to involuntary alienation, assignment or transfer.

 

  

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26. Severability.  The various Sections of this Agreement are severable, and if any Sections or an identifiable part thereof is held to be invalid or unenforceable by any court of competent jurisdiction, then such invalidity or unenforceability shall not affect the validity or enforceability of the remaining Sections or identifiable parts thereof in this Agreement, and the parties hereto agree that the portion so held invalid, unenforceable or void shall, if possible, be deemed amended or reduced in scope, or otherwise be stricken from this Agreement, to the extent required for the purposes of the validity and enforcement hereof.

27. No Strict Construction.  The parties hereto have participated jointly in the negotiation and drafting of this Agreement.  In the event any ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by all parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement.

28. Third Party Beneficiaries.   JC’s estate and heirs are intended third party beneficiaries of JC’ rights and the Corporation’s obligations hereunder.

29.  Fee Tail.  In the event that any financing closes with any of the sources listed on Schedule A, JC shall receive, through his brokerage firm, up to 5% commission in cash immediately upon closing, to be negotiated with the Company, for a three (3) years.

 

30.  Binding Effect. This Agreement will be deemed binding and effective immediately upon its execution by JC; provided, however, that in accordance with the ADEA, JC’s waiver of ADEA Claims under this Agreement is subject to the following: JC may consider the terms of his waiver of Claims under the ADEA for seven (7) days before signing it and may consult legal counsel if JC so desires. JC may revoke his waiver of Claims under the ADEA within seven (7) days of the day he executes this Agreement. JC’s waiver of Claims under the ADEA will not become effective until the eighth (8th) day following JC’s signing of this Agreement. JC may revoke his waiver of ADEA Claims under this Agreement by delivering written notice of his revocation, via facsimile and overnight mail, before the end of the seventh (7th) day following JC’s signing of this Agreement to: Andrea Cataneo at Sichenzia Ross Friedman Ference LLP(fax: 212 930-9700).  In the event that JC revokes his waiver of ADEA Claims under this Agreement prior to the eighth (8th) day after signing it, the remaining portions of this Agreement shall remain in full force in effect, except that the obligation of the Corporation to provide the payments and benefits set forth in  Sections 3-8 of this Agreement shall be null and void. JC further understands that if JC does not revoke the ADEA waiver in this Agreement within seven (7) days after signing this Agreement, his waiver of ADEA Claims will be final, binding, enforceable, and irrevocable.

 

EMPLOYEE UNDERSTANDS THAT FOR ALL PURPOSES OTHER THAN HIS WAIVER OF CLAIMS UNDER THE ADEA, THIS AGREEMENT WILL BE FINAL, EFFECTIVE, BINDING, AND IRREVOCABLE IMMEDIATELY UPON ITS EXECUTION.

 

31. Acknowledgement.     JC acknowledges that he: (a) has carefully read this Agreement in its entirety; (b) has been presented with the opportunity to consider it for at least three  (3) days; (c) has been advised to consult and has been provided with an opportunity to consult with legal counsel of his choosing in connection with this Agreement; (d) fully understands the significance of all of the terms and conditions of this Agreement and has discussed them with his independent legal counsel or has been provided with a reasonable opportunity to do so; (e) has had answered to his satisfaction any questions asked with regard to the meaning and significance of any of the provisions of this Agreement; and (f) is signing this Agreement voluntarily and of his own free will and agrees to abide by all the terms and conditions contained herein.

 

 

[SIGNATURE PAGE FOLLOWS]

  

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on and as of the day and year first above written.

 

	 	 
GREEN ENVIROTECH HOLDINGS CORP INC.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Gary DeLaurentiis	 
	 	Name:	Gary DeLaurentiis	 
	 	Title: 	Chief Executive Officer	 
	 	 	 	 
	 	 	/s/ Jeffrey Chartier	 
	 	 	Jeffrey Chartier	 

 

 

  

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SCHEDULE A

	
1.  

	
Any funding resulting from Alan Stone conferences or Alan Stone directly;

	
2.  

	
Kodiak Capital;

	
3.  

	
Status Group International Corporation;

	
4.  

	
Legend Securities, Inc.

	
5.  

	
Canaccord Capital Corp.

	
6.  

	
MUNC Media, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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