Document:

Unassociated Document

Exhibit 10.11

 

 ESCROW AGREEMENT

ESCROW AGREEMENT, dated as of [  ], 2012 (“Agreement”), by and among Chart Acquisition Group, LLC (the “Representative”), Joseph Wright (“Wright”), and Cowen Overseas Investment LP (“CowenOverseas,” together with Wright and the Representative, the “Warrant Purchasers”), Continental Stock Transfer & Trust Company, a New York corporation (“Escrow Agent”)  and Deutsche Bank Securities, Inc. (“DB”) and Cowen and Company, LLC (“Cowen”), with DB and Cowen acting as representatives of the several Underwriters (as defined below).

WHEREAS, the Warrant Purchasers have agreed to establish an escrow account to deposit certain funds with the Escrow Agent for the benefit of the holders of warrants (the “Beneficiaries”) issued by Chart Acquisition Corporation (the “Company”) in its initial public offering (the “IPO”) being underwritten by the underwriters in connection thereof , including DB and Cowen (the “Underwriters”) , in an amount of TWO MILLION TWO HUNDRED FIFTY THOUSAND and 00/100 ($2,250,000.00) U.S. Dollars (the “Escrow Asset”), which amount shall be distributed, from time to time in accordance with the procedures set forth below;

WHEREAS, the Warrant Purchasers have collectively committed to offer to purchase up to 3,750,000 of the Company’s issued and outstanding warrants offered in the IPO (the “Warrants”) at a purchase price of $0.60 per Warrant in a proposed tender offer  as described in the Registration Statement. The Beneficiaries that have tendered Warrants purchased by the Warrant Purchasers in such tender offer are hereinafter referred to as the “Tendering Beneficiaries.”)

WHEREAS, this Agreement is being entered into in connection with the IPO, as described in the Company’s Registration Statement on Form S-1, File No. 333-177280 (“Registration Statement”), to govern the distribution of the Escrow Asset.

WHEREAS, the Warrant Purchasers desire that the Escrow Agent accept the Escrow Asset in escrow, to be held and disbursed as hereinafter provided.

IT IS AGREED:

1.           Appointment of Escrow Agent and Representative.

1.1           The Warrant Purchasers hereby appoint the Escrow Agent to act in accordance with and subject to the terms of this Agreement and the Escrow Agent hereby accepts such appointment and agrees to act in accordance with and subject to such terms.

1.2           The Warrant Purchasers hereby appoint the Representative as their representative to act on behalf of the Warrant Purchasers as their duly authorized agent with respect to all matters governed by this Agreement and the Representative hereby accepts such appointment and agrees to act in accordance with and subject to the terms hereof.

2.           Deposit of Escrow Asset.  24 hours prior to the effective date of the Registration Statement (the “Effective Date”), the Warrant Purchasers shall deliver to the Escrow Agent the Escrow Asset in the amounts set forth in Schedule 1 hereto.  The funds shall be delivered by wire transfer to a segregated non-interest bearing bank account established by the Escrow Agent at JP Morgan Chase Bank, NA  maintained by the Escrow Agent, which thereafter shall be disbursed only in accordance with the terms and conditions of this Agreement and at a brokerage institution selected by the trustee that is reasonably satisfactory to the Company;

 

  

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The Escrow Asset will be invested by the Escrow Agent only when and as directed in writing by   Representative in a form substantially similar to Exhibit D attached hereto. in United States treasuries with a maturity of 180 days or less or in money market funds that invest solely in United States treasury securities.

3.           Disbursement and Reduction of the Escrow Asset.

3.1           The Escrow Agent shall hold the Escrow Asset during the period (the “Escrow Period”) commencing on the date hereof and ending upon the earlier of (each a “Termination Event”) (i) the Company’s consummation of an initial business combination as described in the Registration Statement (“Business Combination”) or (ii) the Company’s failure to consummate a Business Combination within the required time period as described in the Registration Statement.  Upon completion of the Escrow Period, the Escrow Agent shall promptly commence the distribution of the Escrow Asset (excluding any interest or dividends earned thereon) to the Beneficiaries upon receipt of, and only in accordance with, the terms of a joint letter (the “Direction Letter”) in accordance with Sections 3.3 or 3.4, as applicable, hereof.  Notwithstanding the foregoing, during the Escrow Period, the Escrow Agent may distribute a certain portion of the Escrow Asset pursuant to Section 3.2 herein.

3.2   During the Escrow Period, upon written request from the Representative, which may be given from time to time pursuant to a letter (the “Earnings Reduction Letter”) in a form substantially similar to that attached hereto as Exhibit A, the Escrow Agent shall reduce the amount of the Escrow Asset and distribute to the  Warrant Purchasers by wire transfer the income collected on the Escrow Asset

 

3.3   If the Termination Event is the Company’s consummation of a Business Combination, Escrow Agent shall distribute the Escrow Asset pro-rata to the Tendering Beneficiaries upon Escrow Agent’s receipt of a Direction Letter in a form substantially similar to that attached hereto as Exhibit B, stating that that the Company has consummated its initial business combination, as set forth in the Registration Statement and a concurrent tender offer has also been consummated for up to 3,750,000 of the  Company’s Warrants issued (but not private warrants), such that each Tendering Beneficiary will receive an amount equal to $0.60 per Warrant for each Warrant validly tendered and not properly withdrawn on a pro rata basis as applicable. The Escrow Agent will distribute all validly tendered and acquired Warrants to the Warrant Purchasers on a pro rata basis.

3.4   If the Termination Event is the Company’s failure to consummate a Business Combination, Escrow Agent shall distribute the Escrow Asset pro-rata to the Beneficiaries upon Escrow Agent’s receipt of a Direction Letter in a form substantially similar to that attached hereto as Exhibit C, stating that the Company did not consummate a proposed business combination within the time period set forth in the Registration Statement, and the Warrant Purchasers must distribute the Escrow Asset such that each Beneficiary receives a  pro rated amount of the Escrow Asset per Warrant for each Warrant then held by such Beneficiary.

 

  

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4.           Concerning the Escrow Agent.

4.1           Good Faith Reliance.  The Escrow Agent shall not be liable for any action taken or omitted by it in good faith and in the exercise of its own best judgment, and may rely conclusively and shall be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel (including counsel chosen by the Escrow Agent), statement, instrument, report or other paper or document (not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained) which is believed by the Escrow Agent to be genuine and to be signed or presented by the proper person or persons.  The Escrow Agent shall not be bound by any notice or demand, or any waiver, modification, termination or rescission of this Agreement unless evidenced by a writing delivered to the Escrow Agent signed by the proper party or parties and, if the duties or rights of the Escrow Agent are affected, unless it shall have given its prior written consent thereto.

4.2           Indemnification.  The parties hereto agree to jointly and severally indemnify and hold the Escrow Agent harmless from and against any expenses, including counsel fees and disbursements, or loss suffered by the Escrow Agent in connection with any action, suit or other proceeding involving any claim which in any way, directly or indirectly, arises out of or relates to this Agreement, the services of the Escrow Agent hereunder, or the Escrow Asset held by it hereunder, other than expenses or losses arising from the gross negligence or willful misconduct of the Escrow Agent.  Promptly after the receipt by the Escrow Agent of notice of any demand or claim or the commencement of any action, suit or proceeding, the Escrow Agent shall notify the other parties hereto in writing.  In the event of the receipt of such notice, the Escrow Agent, in its sole discretion, may commence an action in the nature of interpleader in an appropriate court to determine ownership or disposition of the Escrow Asset or it may deposit the Escrow Asset with the clerk of any appropriate court or it may retain the Escrow Asset pending receipt of a final, non appealable order of a court having jurisdiction over all of the parties hereto directing to whom and under what circumstances the Escrow Asset are to be disbursed and delivered.  The provisions of this Section 4.2 shall survive in the event the Escrow Agent resigns or is discharged pursuant to Sections 4.5 or 4.6 below.

4.3           Compensation.  The Escrow Agent shall be entitled to compensation in accordance with Schedule A attached hereto from the Warrant Purchasers for all services rendered by it hereunder.  The Escrow Agent shall also be entitled to reimbursement from the Warrant Purchasers for all expenses paid or incurred by it in the administration of its duties hereunder including, but not limited to, all counsel, advisors’ and agents’ fees and disbursements and all taxes or other governmental charges. The parties further agree to promptly pay the Escrow Agent’s monthly invoices when delivered by regular mail, or by other electronic means to the following address:  Chart Acquisition Group LLC, 75 Rockefeller Plaza, 14th Floor.  Attn:  Christopher D. Brady

 

4.4           Further Assurances.  From time to time on and after the date hereof, the Warrant Purchasers shall deliver or cause to be delivered to the Escrow Agent such further documents and instruments and shall do or cause to be done such further acts as the Escrow Agent shall reasonably request to carry out more effectively the provisions and purposes of this Agreement, to evidence compliance herewith or to assure itself that it is protected in acting hereunder.

 

  

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4.5           Resignation.  The Escrow Agent may resign at any time and be discharged from its duties as escrow agent hereunder by its giving the other parties hereto written notice and such resignation shall become effective as hereinafter provided.  Such resignation shall become effective at such time that the Escrow Agent shall turn over to a successor escrow agent appointed jointly by DB and Cowen, the Escrow Asset held hereunder.  If no new escrow agent is so appointed within the 60 day period following the giving of such notice of resignation, the Escrow Agent may deposit the Escrow Asset with any court it reasonably deems appropriate.

 

4.6           Discharge of Escrow Agent.  The Escrow Agent shall resign and be discharged from its duties as escrow agent hereunder if so requested in writing at any time by the other parties hereto, jointly, provided, however, that such resignation shall become effective only upon acceptance of appointment by a successor escrow agent as provided in Section 4.5.

4.7           Liability.  Notwithstanding anything herein to the contrary, the Escrow Agent shall not be relieved from liability hereunder for its own gross negligence or its own willful misconduct.

5.           Miscellaneous.

5.1           Governing Law.  This Agreement shall for all purposes be deemed to be made under and shall be construed in accordance with the laws of the State of New York, without giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction.

5.2           Third Party Beneficiaries.  Each of the Warrant Purchasers hereby acknowledges that the Beneficiaries are third party beneficiaries of this Agreement.

5.3           Entire Agreement.  This Agreement contains the entire agreement of the parties hereto with respect to the subject matter hereof and, except as expressly provided herein, may not be changed or modified except by an instrument in writing signed by the party to the charged.

5.4           Headings.  The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation thereof.

5.5           Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the respective parties hereto and their legal representatives, successors and assigns.

 

  

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5.6           Notices.  Any notice or other communication required or which may be given hereunder shall be in writing and either be delivered personally or be mailed, certified or registered mail, or by private national courier service, return receipt requested, postage prepaid, and shall be deemed given when so delivered personally or, if mailed, two days after the date of mailing, as follows:

If to the Warrant Purchasers, to the Representative:

Chart Acquisition Group LLC

75 Rockefeller Plaza, 14th Floor

Attn:  Christopher D. Brady

and if to the Escrow Agent, to:

Continental Stock Transfer & Trust Company

17 Battery Place

New York, New York 10004

Attn:  Steven G. Nelson, Chairman

And if to DB, to:

Deutsche Bank Securities Inc.

60 Wall Street, 4th Floor

New York, New York 10005

And if to Cowen, to:

Cowen and Company, LLC

599 Lexington Avenue

New York, NY 10022

Attn:  [   ]

A copy of any notice sent hereunder shall be sent to:

 

DLA Piper LLP (US)

1251 Avenue of the Americas, 27th Floor

New York, New York 10020-1104

Attn:   Jack Kantrowitz, Esq.

 

and:

Ellenoff Grossman & Schole LLP

150 East 42nd Street

New York, New York 10017

Attn:  Douglas S. Ellenoff, Esq.

 

The parties may change the persons and addresses to which the notices or other communications are to be sent by giving written notice to any such change in the manner provided herein for giving notice.

[Signature Page Follows]

 

  

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WITNESS the execution of this Agreement as of the date first above written.

WARRANT PURCHASERS:

CHART ACQUISITION GROUP, LLC

(as a Warrant Purchaser and its capacity as Representative)

 

By:           ___________________________

Name:

Title:

 

______________________________

Name:  Joseph Wright

	
  

	
COWEN OVERSEAS INVESTMENTS LP

 

By:          ______________________________

Name:

Title:

 

ESCROW AGENT:

CONTINENTAL STOCK TRANSFER

  & TRUST COMPANY

 

By:          ______________________________

Name:

Title:

 

DEUTSCHE BANK SECURITIES INC.

 

By:          ______________________________

Name:

Title:

 

COWEN AND COMPANY, LLC

 

By:          ______________________________

Name:

Title:

  

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SCHEDULE A

 

 

  

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SCHEDULE 1

 

	
WARRANT PURCHASER

	 	
PERCENTAGE

	 	 	
AMOUNT

	 
	
Chart Acquisition Group LLC

	 	 	61.7	%	 	$	1,387,500	 
	
Joseph R. Wright

	 	 	3.3	%	 	$	75,000	 
	
Cowen Overseas Investment LP

	 	 	35.0	%	 	$	787,500	 

 

  

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 EXHIBIT A

[Letterhead of Company]

[Insert date]

 

Continental Stock Transfer

& Trust Company

17 Battery Place, 8th Floor

New York, New York 10004

Attn:  Steven Nelson and Frank DiPaolo

Re:       Escrow Account No. [    ]   -      Earnings Reduction Letter

Gentlemen:

Pursuant to Section 3.2 of the Escrow Agreement by and among Chart Acquisition Group, LLC (the “Representative”), Joseph Wright, and Cowen Overseas Investment LP (“Cowen Overseas,” and together with Joseph Wright and the Representative, the “Warrant Purchasers”), Continental Stock Transfer & Trust Company, a New York corporation (“Escrow Agent”) and Deutsche Bank Securities, Inc. and Cowen and Company, LLC, dated as of ________, 2012 (the “Escrow Agreement”), the Representative hereby requests that you deliver to it $_______ of the interest income earned on the Escrow Asset as of the date hereof as follows.

[LIST WARRANT PURCHASERS AND AMOUNTS]

 In accordance with the terms of the Escrow Agreement, you are hereby directed and authorized to transfer (via wire transfer) such funds promptly upon your receipt of this letter to the Warrant Purchasers’ operating accounts at:

[WIRE INSTRUCTION INFORMATION]

	  	
Chart Acquisition Group, LLC

	  
	  	  	  	  
	  	
By:

	  	  
	  	
Name:

	  	  
	  	
Title:

	  	  

cc           Deutsche Bank Securities, Inc.

Cowen and Company, LLC

 

  

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EXHIBIT B

[Letterhead of Company]

[Insert date]

Continental Stock Transfer

& Trust Company

17 Battery Place

New York, New York 10004

Attn:  Steven Nelson and Frank Di Paolo

Re:       Escrow Account No. [    ]   -       Direction Letter

Gentlemen:

Pursuant to Section 3.3 of the Escrow Agreement between Chart Acquisition Group, LLC (the “Representative”), Joseph Wright, and Cowen Overseas Investment LP (“Cowen Overseas,” and together with Joseph Wright and the Representative, the “Warrant Purchasers”), Continental Stock Transfer & Trust Company, a New York corporation (“Escrow Agent”) and Deutsche Bank Securities, Inc.  and Cowen and Company, LLC, dated as of ________, 2012 (the “Escrow Agreement”), this is to advise you that the Company has consummated a business combination with [       ] (the “Target Businesses”) on [         ] (the “Consummation Date”). Capitalized words used herein and not otherwise defined shall have the meanings ascribed to them in the Escrow Agreement.

 

Pursuant to Section 3.3 of the Escrow Agreement, you are hereby directed to distribute the Escrow Asset (less any interest earned thereon) pro-rata to the Tendering Beneficiaries based on the number of Warrants tendered by each Tendering Beneficiary and not properly withdrawn because the Company has consummated its initial business combination, as set forth in the Registration Statement and a concurrent tender offer has also been consummated for up to 3,750,000 of the Company’s Warrants (but not private warrants) issued, such that each Tendering Beneficiary is entitled to receive an amount equal to $0.60 per Warrant for each Warrant validly tendered and not properly withdrawn (pro rated as applicable).  The balance of the Escrow Asset, if any, should be returned to the Warrant Purchasers’ operating accounts at: [WIRE INSTRUCTION INFORMATION]

Upon the distribution of all Escrow Asset pursuant to the terms hereof, the Escrow Agreement shall be terminated.

 

	  	
Very truly yours,

	  	  
	  	  	  	  
	  	
Chart Acquisition Group, LLC

	  	  
	  	  	  	  	  
	  	
By:

	  	  	  
	  	
Name:

	  	  	  
	  	
Title:

	  	  	  
	  	 	
 

	  	  
	 	

Deutsche Bank Securities, Inc.

 

	 	 
	 	

By:

	 	 	 
	  	
Name:

	  	  
	  	
Title:

	  	  
	  	  	  	  	  
	  	
Cowen and Company, LLC

	  	  	  
	  	  	  	  	  
	  	
By:

	  	  	  
	  	
Name:

	  	  	  
	  	
Title:

	  	  	  

  

10

  

 

EXHIBIT C

 

[Letterhead of Company]

[Insert date]

Continental Stock Transfer

& Trust Company

17 Battery Place

New York, New York 10004

Attn:  Steven Nelson and Frank Di Paolo

Re:       Escrow Account No. [    ]   -       Direction Letter

Gentlemen:

Reference is made to the Escrow Agreement between Chart Acquisition Group, LLC (the “Representative”), Joseph Wright, and Cowen Overseas Investment LP (“Cowen Overseas,” and together with Joseph Wright and the Representative, the “Warrant Purchasers”), Continental Stock Transfer & Trust Company, a New York corporation (“Escrow Agent”) and Deutsche Bank Securities, Inc.  and Cowen and Company, LLC, dated as of ________, 2012 (the “Escrow Agreement”).  Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Escrow Agreement.  Pursuant to Section 3.4 of the Escrow Agreement, this is to advise you that the Company did not consummate a proposed business combination within the time period set forth in the Registration Statement, and the Warrant Purchasers must distribute the Escrow Asset such that each Beneficiary receives a pro rated amount of the Escrow Asset per Warrant for each Warrant then held by such Beneficiary.

In accordance with the terms of the Escrow Agreement, you are hereby directed to distribute the Escrow Asset on [      ] to the warrantholders. [       ] has been selected as the “record” date for the purpose of determining the warantholders entitled to receive their pro rata share of the Escrow Asset (less interest earned thereon).  You agree to be the paying agent of record and in your separate capacity as paying agent to distribute said funds directly to the Company’s warrantholders (other than with respect to the private warrants) in accordance with the terms of the Escrow Agreement.  Upon the distribution of all of the funds comprising the Escrow Asset, your obligations under the Escrow Agreement shall be terminated.

	  	
Very truly yours,

	  
	  	  	  
	  	
Chart Acquisition Group, LLC

	  
	  	  	  	  
	  	
By:

	  	  
	  	
Name:

	  	  
	  	
Title:

	  	  
	  	  	  
	  	  	  

cc:           Deutsche Bank Securities, Inc.

Cowen and Company, LLC

 

  

11

  

 

Exhibit D

October 11, 2012

Continental Stock Transfer & Trust Company

17 Battery Place, 8th Floor

New York, New York 10017

Attention: Frank A. Di Paolo, Chief Financial Officer

Dear Frank,

Regarding account  _______________ established with Morgan Stanley in the name of Continental Stock and Transfer A/A/F Chart Acquisition Group, LLC, please issue instructions to invest the escrow deposit as follows:

Investment parameters:

[ $_________________of the Escrow Asset will be invested only in United States treasuries with a maturity of 180 days or less and the remaining $______________may be invested in either United States treasuries with a maturity of 180 days or less or in money market funds that invest solely in United States treasuries.]

SELECT OPTION

[   ] Option 1:

Please purchase at market a $_________________ US T-bill maturing in 180 days and, with the remaining funds $_________________, purchase an additional US T-bill also maturing in 180 days.

Or

[   ] Option 2:

Please purchase at market a $____________ T-bill maturing in 180 days and,

with the remaining funds ($_______________), purchase Morgan Stanley 100%

US Treasury Securities Money Market Fund.

Or

[   ] Option 3:

Please purchase $____________ , of Morgan Stanley 100% US Treasury Securities Money Market Fund.

Sincerely,

CHART Acquisition Group, LLC

By: _____________________________

 

12CONSULTING
AGREEMENT 

   

 THIS CONSULTING AGREEMENT (this
"Agreement") dated this 20th day of December, 2011  

BETWEEN  

   

 HARMONIC
ENERGY INC.  3rd Floor, 207  Regent Street, London W1B 3HH. UK.

(the "Client") 

 OF THE FIRST
PART 

   

 - AND -

   

 JM TRADING
CO LTD.  of 11 Deanway, Hove, E.Sussex, UK. BN3 6DG

(the "Consultant") 

 OF THE SECOND
PART 

   

 BACKGROUND: 

 A.                 
The Client is of the opinion that the Consultant has the necessary qualifications, experience and abilities to provide
services to the Client. 

   

 B.                 
The Consultant is agreeable to providing such services to the Client on the terms and conditions set out in this Agreement. 

   

 IN CONSIDERATION OF 
the matters described above and of the mutual benefits and obligations set forth in this Agreement, the receipt and sufficiency
of which consideration is hereby acknowledged, the parties to this Agreement agree as follows: 

   

 Subject only to the authority and
direction of the Board of Directors of Harmonic Energy Inc.(the "Board"), the Consultant, through its principal, Jamie
Mann, shall serve the Client and shall perform on behalf of the Client, and/or subsidiaries of the Client, such reasonable duties
consistent with the position of CEO as may from time to time be required or authorized by the Board, which duties, without restricting
the generality of the foregoing, shall include: 

   

 (a) the development, direction,
co-ordination and monitoring of the fundamental policies. Strategic goals, prioritize and targets of the Client and its subsidiaries
in keeping with their corporate objectives including management and supervision over and director of the operations of the Client
and its subsidiaries and all officers and Employees of the Client and its subsidiaries. The Consultant shall have responsibility
for and authority to conduct the day-to-day operations of the Client and its subsidiaries; 

 (b) general administration; 

 (c) overseeing accounting and personal
management for the Client and its subsidiary; 

 (d) fundraising; and 

 (e) generally using his best efforts
to promote the interests and goodwill of the Clients business. 

   

 The Consultant shall also have
such powers as may be usually exercised by a CEO and such further powers as may from time to time be conferred upon or a signed
to him by the Board. These duties and responsibilities may be varied by the Board from time to time. 

    	1

    	 

    

 1.2 Services 

 1.                  
The Client hereby agrees to engage the Consultant to provide the Client with professional services (the "Services")
summarized above. The Services will also include any other tasks which the parties may agree on from time to time. The Consultant
hereby agrees to provide such Services to the Client. 

   

 Term of Agreement 

 2.                  
The term of this Agreement will begin on the date of this Agreement and will continue for a two (2) year period. 

 3.                  
Except as otherwise provided in this Agreement, the obligations of the Consultant will terminate at the end of this Agreement. 

   

 Performance 

 4.                  
The parties agree to do everything necessary to ensure that the terms of this Agreement take effect. 

   

 Remuneration 

 5.                  
For the services rendered by the Consultant as required by this Agreement, the Client will pay to the Consultant fees totaling
USD $60000 per year. Payments will be made in equal installments of USD $5000 each calendar month on receipt of invoice. Fees
are exclusive of sales tax at prevailing rate if applicable. At the client’s expense, a car shall be made available to the
consultant for business and personal use. Fuel, insurance and servicing shall be at the clients cost. 

   

 Reimbursement of Expenses

 6.                  
The Consultant will be fully reimbursed for all expenses associated with the provision of the Services hereunder. This
shall include all travel of behalf of client, communications, IT services, IT hardware, subsistence, entertainment. The Consultant
will furnish receipts, invoices and documentation to the Client for all such expenses. 

   

 Payment Penalties 

 7.                  
No late payment penalty will be charged if the Client does not comply with the rates, amounts or dates of pay provided
in this Agreement. 

   

 Non-Solicitation 

 8.                  
Any attempt on the part of the Consultant to induce to leave the Client's engagement, or any effort by the Consultant to
interfere with the Client's relationship with its employees or other consultants would be harmful and damaging to the Client. 

 9.                  
The Consultant agrees that during the term of this Agreement and for a period of 1 year after the termination of the Agreement,
the Consultant will not in any way directly or indirectly: 

 a.                                          
induce or attempt to induce any employee or other consultant of the Client to quit employment or retainer with the Client; 

 b.                                          
otherwise interfere with or disrupt the Client's relationship with its employees or other consultants; 

 c.                                           
discuss employment opportunities or provide information about competitive employment to any of the Client's employees or
other consultants; or 

 d.                                          
solicit, entice, or hire away any employee or other consultant of the Client. 

    	2

    	 

    

 Ownership of Materials 

 10.               
All IP, materials developed, produced, or in the process of being so under this Agreement, will be the property of the
Client. The use of the mentioned materials by the Client will not be restricted in any manner. 

   

 Return of Property 

 11.               
Upon the expiry or termination of this Agreement, the Consultant will return to the Client any property, documentation,
records, or confidential information which is the property of the Client. 

   

 Assignment 

 12.               
The Consultant will not voluntarily or by operation of law assign or otherwise transfer its obligations under this Agreement
without the prior written consent of the Client. 

   

 Capacity/Independent Contractor

 13.               
It is expressly agreed that the Consultant is acting as an independent contractor and not as an employee in providing the
Services under this Agreement. The Consultant and the Client acknowledge that this Agreement does not create a partnership or
joint venture between them, and is exclusively a contract for service. The Consultant is free to consultant with any other individuals
or companies during the term of this agreement that are not associated with the Client. 

   

 Modification of Agreement

 14.               
Any amendment or modification of this Agreement or additional obligation assumed by either party in connection with this
Agreement will only be binding if evidenced in writing signed by each party or an authorized representative of each party. 

   

 Notice 

 15.               
All notices, requests, demands or other communications required or permitted by the terms of this Agreement will be given
in writing and delivered to the parties of this Agreement as follows: 

   

 HARMONIC ENERGY INC. 

 3rd Floor,
207 Regent Street 

 London 

 W1B 3HH 

 U.K. 

   

 JM TRADING COMPANY LTD
 

 t/a ProSource    

 11 Deanway 

 Hove 

 E.Sussex 

 BN3 6DG 

   

 or to such other address as to
which any Party may from time to time notify the other. 

   

 Costs and Legal Expenses

 16.               
In the event that legal action is brought to enforce or interpret any term of this Agreement, the prevailing party will
be entitled to recover, in addition to any other damages or award, all reasonable legal costs and fees associated with the action. 

   

 Time of the Essence 

 17.               
Time is of the essence in this Agreement. No extension or variation of this Agreement will operate as a waiver of this
provision. 

    	3

    	 

    

   

 Entire Agreement 

 18.               
It is agreed that there is no representation, warranty, collateral agreement or condition affecting this Agreement except
as expressly provided in this Agreement. 

   

 Implied Obligations 

 19.               
It is the intention of both parties that any implied obligations referenced or defined in The Supply of Goods and Services
Act 1982 or The Sale of Goods Act 1979 as amended, are expressly excluded for the purposes of this Agreement. 

   

 Limitation of Liability 

 20.               
It is understood and agreed that the Consultant will have no liability to the Client or any other party for any loss or
damage (whether direct, indirect, or consequential) which may arise from the provision of the Services. 

   

 Indemnification 

 21.               
The Client will indemnify and hold the Consultant harmless from any claims against the Consultant by any other party, arising
directly or indirectly out of the provision of the Services by the Consultant. 

   

 Enurement 

 22.               
This Agreement will enure to the benefit of and be binding on the parties and their respective heirs, executors, administrators,
successors and permitted assigns. 

   

 Currency 

 23.               
Except as otherwise provided in this Agreement, all monetary amounts referred to in this Agreement are in US Dollars 

   

 Third Party Rights 

 24.               
Third parties cannot benefit from this Agreement under The Contracts (Rights of Third Parties) Act 1999. 

   

 Titles/Headings 

 25.               
Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement. 

   

 Gender 

 26.               
Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine
and vice versa. 

   

 Governing Law 

 27.               
This Agreement will be construed in accordance with and governed by the laws of England and the parties submit to the exclusive
jurisdiction of the English Courts. 

   

 Dispute Resolution 

 28.               
In the event a dispute arises out of or in connection with this Agreement the parties will attempt to resolve the dispute
through friendly consultation. 

    	4

    	 

    

 29.               
If the dispute is not resolved within a reasonable period then any or all outstanding issues may be submitted to mediation
in accordance with any statutory rules of mediation. If mediation is not successful in resolving the entire dispute or is unavailable,
any outstanding issues will be submitted to final and binding arbitration in accordance with the laws of the United Kingdom of
Great Britain and Northern Ireland. The arbitrator's award will be final, and judgment may be entered upon it by any court having
jurisdiction within the United Kingdom of Great Britain and Northern Ireland. 

   

 Severability 

 30.               
In the event that any of the provisions of this Agreement are held to be invalid or unenforceable in whole or in part,
all other provisions will nevertheless continue to be valid and enforceable with the invalid or unenforceable parts severed from
the remainder of this Agreement. 

   

 Waiver 

 31.               
The waiver by either party of a breach, default, delay or omission of any of the provisions of this Agreement by the other
party will not be construed as a waiver of any subsequent breach of the same or other provisions. 

 

IN WITNESS WHEREOF the parties have duly executed this Service Agreement this 20th day of Dec, 2011.

 

	 

 	 JM Trading Company Ltd 

         

        

        

        

         Per: /s/ Jamie Mann 

		   

         Harmonic Energy Inc 

         

        

        

           

         

        Per: /s/ Jamie Mann 

           

   

    	5

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