Document:

mmex_ex105.htm

EXHIBIT 10.5
  
 OPTION AGREEMENT
  
 THIS AGREEMENT made as of December 11, 2018.
  
 BETWEEN:
  
 MMEX RESOURCES CORPORATION, 
 a Nevada corporation (“MMEX” or the “Company”)
  
 -and-
  
 MAPLE RESOURCES CORP, 
 a Delaware corporation (“Maple”) 
  
 - and -
  
 WHEREAS, the Company has entered into that certain Securities Purchase Agreement as of October 5, 2018 (the “SPA”), with GS Capital Partners, LLC (the “Lender”) which also included a loan advance to the Company; and 
  
 WHEREAS, in order to complete the transaction, the Lender required the Company Class B Shareholders to enter into a Pledge Agreement (the “Pledge Agreement”) to pledge 100 percent of the Class B Shares; and
  
 WHEREAS, the Pledge Agreement dated as of October 5, 2018, is made by and between (i) Maple, a Delaware corporation and related party to Jack W. Hanks (ii) the Trust, a related party to Bruce N. Lemons (Maple and Trust, each individually a “Pledgor” and together the “Pledgors”) and (iii) Lender; and 
  
 WHEREAS, the Pledgors are the registered owners of the issued Class B Common Stock or have options to purchase Class B Common Stock, (the “Pledged Shares”), holding the Pledged Shares for the benefit of the beneficial owners named on the signature page hereto; 
  
 WHEREAS, under the Pledge Agreement it is a condition precedent to the Lender making the Loan available to the Company that the Pledgors execute and deliver to Lender’s agent, as security for the obligations of the Borrower, a pledge of all of the Pledgors’ right, title and interest in and to the Pledged Shares; and
  
  	 
	1
	 
 
	 

   
 WHEREAS, as consideration for entering into the Pledge Agreement, the Company agrees to grant to Maple an option (the “Maple Option”) to purchase 1,000,000 of the Class A Shares and 1,000,000 of the Class B Shares (the “Maple Option Shares”) in exchange for the payment to the Company of a per Option Share price equal to $.08, being the weighted average trading price of a share of MMEX Class A common stock as of this date (“Exercise Price”);
  
 WHEREAS, as consideration for entering into the Pledge Agreement, Maple has agreed to grant to Trust an option (the “Trust Option”) to purchase 100,000 of the Class A Shares and 100,000 of the Class B Shares out of the Maple Option Shares (the “Trust Option Shares”) in exchange for the payment to Maple of the per Option Share Exercise Price. 
  
 WHEREAS, Maple agreed on March 6, 2017 to grant to the Trust an option to purchase 100,000,000 of the Class B Shares (the “March 6, 2017 Option”) from Maple in exchange for the payment to Maple of a per share price equal to the average trading price of a share of MMEX Class A common stock on the first trading day of MMEX’s announcement of the West Texas Project;
  
 NOW, THEREFORE, IN CONSIDERATION of the obligations under the SPA and other good and valuable consideration, the parties agree as follows:
  
  	  
	1.	Grant of Option: The Company hereby grants to Maple an option to purchase the Maple Option Shares, in whole or in part, at the Exercise Price. Maple hereby grants to the Trust an option to purchase the Trust Option Shares at the Exercise Price (both hereinafter referred to as the “Mutual Options or “Mutual Option Shares”).
	  
	  
	  

	  
	2.	Exercise Period: The Mutual Options may be exercised by either Party by giving notice to the Company or Maple at any time prior to ten years from the date hereof (the “Exercise Date”). If such notice is not given on or before the Exercise Date, the Mutual Options shall then immediately expire and terminate.
	  
	  
	  

	  
	3.	Exercise of Option: Maple may exercise the Maple Option by giving written (or other notice acceptable to the parties) to the Company (the “Exercise Notice”) within the period set out in Section 2. Nothing contained in this agreement shall obligate the either Party to pay for the Option Shares, except upon his exercise of the Option. At the written request of Trust, Maple agrees to exercise, in whole or in part, such amount of Maple Option Shares to satisfy any request of Trust to exercise its Trust Option. In lieu of payment of the Exercise Price in cash, Maple (or the Trust, as applicable) the Holder may elect to receive a number of shares of Class A common stock and/or Class B common stock, as applicable, equal to the value of the portion of the Option being exercised, computed using the following formula:

    
  	 
	2
	 
 
	 

      
  	  
	 X = (A - B) x C where:
              A

	  
	  
	  

	  
	 X = 
	 the number of shares to be issued to the older;

	  
	  
	  

	  
	 A = 
	 the fair market value of one share of common stock on the date of net issuance exercise, as determined by the Company’s board of directors;

	  
	  
	  

	  
	 B =
	 the Exercise Price (as adjusted to the date of such calculation); and

	  
	  
	  

	  
	 C = 
	 the number of shares as to which the holder elects to exercise.

    
  	  
	4.	Extension of March 6, 2017 Option: Maple and the Trust hereby amend and extend the March 6, 2017 Option to extend the option exercise date to the Exercise Date as provided herein.
	  
	  
	  

	  
	5.	Substitution of Other MMEX Shares; Adjustment of Number of Shares in the Event of Stock Splits, Merger, etc.: The Company may, at its option, substitute, in whole or in part, its Class A common shares or its Class B common shares (of equal number) of MMEX to deliver to Maple pursuant to the exercise of the Maple Option in lieu of the Maple Option Shares or may direct that its affiliates deliver Class A common shares or Class B shares of MMEX (of equal number) in lieu of the Maple Option Shares. In the event of stock splits, a merger or other corporate action that results in a change in the number of Mutual Option Shares, the number of Mutual Option Shares subject to this Option Agreement shall be appropriately adjusted up or down.
	  
	  
	  

	  
	6.	Closing of Share Sale: If Mutual Option Shares are exercised, the sale of the Mutual Option Shares (or MMEX common shares substituted therefor), shall be completed on the date that is no more than 10 days after the date on which the Exercise Notice is delivered or such other date as the parties may agree upon (such completion date being referred to as the “Closing Date”). The effective date of the sale of the Mutual Option Shares shall be the Exercise Date. On the Closing Date:

   
  	  
	(a)	Maple or Trust shall deliver the Purchase Price to the Company; and 
	  
	  
	  

	  
	(b)	The Company shall deliver or cause to be delivered to Maple or the Trust, respectively, the certificates or electronic book entry representing the Maple Option Shares.

   
  	  
	7.	No Assignment: Neither this agreement nor any of the rights under this agreement may be assigned without consent.
	  
	  
	  

	  
	8.	Notices: Any notice, direction or other document required or permitted to be given pursuant to this agreement shall, unless otherwise specifically provided, be given in writing and may be mailed, postage prepaid by registered mail, or personally served upon the appropriate party or may be delivered by electronic means as follows:

    
  	 
	3
	 
 
	 

       
  	  
	 (a)
	 If to MMEX:

	  
	  
	  

	  
	  
	 Maple Resources Corp.
 3616 Far West Blvd #117-321
 Austin, Texas 78731 USA
 Attn: Mr. Jack Hanks
 Email: jack.hanks@mmexresources.com

	  
	  
	  

	  
	 (b)
	 if to Maple:

	  
	  
	  

	  
	  
	 Maple Resources Corp.
 3616 Far West Blvd #117-321
 Austin, Texas 78731 USA
 Attn: Mr. Jack Hanks
 Email: jwhanks@maplecos.com

	  
	  
	  

	  
	 (c)
	 if to the Trust at:

	  
	  
	  

	  
	  
	 BNL Family Trust
 6780 West Cougar Ave.
 Las Vegas, NV 89139
 Attn: Mr. Jerry W. Slusser
 Email: jwslusser@g-tec.net

  
  	  
	9.	Additional Documents; Counterparts: Each party shall, from time to time and without additional consideration, perform all acts and execute and deliver all documents required to carry out to give full effect to the terms of this agreement. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute one and same Agreement, and each of such counterparts may be delivered electronically.
	  
	  
	  

	  
	10.	Headings: The insertion of headings in this agreement is for convenience of reference only and shall not affect the interpretation of this agreement.
	  
	  
	  

	  
	11.	Entire Agreement: This agreement constitutes the entire agreement between the parties with respect to the granting of the options and, except as stated in this agreement and in any documents to be executed and delivered pursuant hereto, contains all of the agreements between the parties, and there are no verbal agreements or understandings between the parties not reflected in this agreement. This agreement may not be amended or modified in any respect except by written agreement executed by both parties.
	  
	  
	  

	  
	12.	Time is of the Essence: Time shall be of the essence in this agreement.
	  
	  
	  

	  
	13.	Applicable Law: This agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws in force in the State of Texas.
	  
	  
	  

	  
	14.	Binding Effect: This agreement shall enure to the benefit of and be binding upon MMEX, Maple and the Trust and their respective heirs, legal representatives and successors.

  
  	 
	4
	 
 
	 

    
 IN WITNESS WHEREOF this agreement has been duly executed by the parties.
  
 	  
	  
	 /s/ JACK W. HANKS
	  

	  
	  
	 Jack W. Hanks, on behalf of MMEX
	  

	  
	  
	  
	  

	  
	  
	 /s/ JACK W. HANKS
	  

	  
	  
	 Jack W. Hanks, on behalf of Maple
	  

	  
	  
	  
	  

		  
	 /s/ JERRY W. SLUSSER
	  

		  
	 Jerry W. Slusser on behalf of the Trust
	  

  
  	 
	5Exhibit 10.1

 

OPTION TERMINATION AGREEMENT

 

THIS OPTION TERMINATION AGREEMENT (this
“Agreement”) is made as of ________, 2019, by and between the undersigned (the “Option Holder”)
and CAS Medical Systems, Inc., a Delaware corporation (the “Company”). Capitalized terms used herein
but not otherwise defined shall have the meaning ascribed to them in the Merger Agreement (as defined below).

 

RECITALS 

 

A. The Company granted to the Option Holder
an option to acquire shares of the Company’s common stock, par value $0.004 per share, as set forth on Exhibit A hereto
(the “Option Agreement,” with the options under such Option Agreement being the “Options”),
which Option Agreement contains an exercise price per share that is higher than $2.45.

 

B. The Company entered into that certain
Agreement and Plan of Merger (the “Merger Agreement”), dated February 11, 2019, by and among Edwards
Lifesciences Holding, Inc., a Delaware corporation (“Parent”), Crown Merger Sub, Inc., a Delaware corporation
and a wholly-owned subsidiary of Parent (“Merger Sub”), and the Company, pursuant to which Merger Sub
will be merged with and into the Company with the Company as the surviving corporation.

 

C. The date on which the Merger is consummated
is hereinafter referred to as the “Effective Time”.

 

D. In connection with the transactions
contemplated by the Merger, the Option Holder entered into that certain Voting Agreement, dated February 11, 2019, by and between
Parent and the Option Holder, pursuant to which the Option Holder agreed to terminate the Option Agreement immediately prior to
the Effective Time without further liability or obligation to the Company.

 

NOW, THEREFORE, in consideration
of the premises and covenants contained herein, and other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the Option Holder and the Company hereby agree as follows, and Parent and Merger Sub shall be entitled to
rely on the following agreements between the Option Holder and the Company:

 

1. Termination of Option Agreement.
Effective immediately prior to the Effective Time, the Options are cancelled and the Option Agreement is hereby terminated and
of no force and effect. The Option Holder hereby releases the Company, Parent and Merger Sub, and each of their respective affiliates,
from any liability with respect to the cancellation of the Options set forth hereunder.

 

2. Representations and Warranties.
By virtue of the execution and delivery of this Agreement by the Option Holder, the Option Holder hereby represents and warrants
to the Company that: (a) the Option Holder is a competent adult and/or has full and complete power, legal right and authority
to execute and deliver this Agreement and to carry out its provisions; (b) the execution, delivery and performance of this Agreement
by the Option Holder does not and will not result in a violation of any law applicable to the Option Holder or result in a breach
of, conflict with or default under, any term or provision of any note, mortgage, bond, security agreement, loan agreement, guaranty,
pledge or other instrument or agreement to which the Option Holder is a party; (c) the Option Holder is the legal, record
and beneficial owner of the Options and owns good, valid, legal and marketable title to such Options, free and clear of all pledges,
security interests, liens, claims, encumbrances, agreements, rights of first refusal and options of any kind whatsoever, other
than spousal interest or such restrictions arising under the Securities Act of 1933, as amended, state securities laws or any of
the documents and other agreements executed as of the date hereof in connection with the consummation of the Merger; and (d) the
Option Holder has had access to or the opportunity to review sufficient written and oral information about the Company and the
Merger Agreement to allow the Option Holder to make an informed decision prior to executing this Agreement. The Option Holder further
acknowledges and agrees that neither the Company nor any other party has made any oral or written representation, inducement, promise
or agreement to the Option Holder in connection with the buyout of the Options, other than as expressly set forth in this Agreement
or in the Merger Agreement.

 

     

     

    

 

3. Binding Effect; Benefits. This
Agreement shall be binding upon and inure to the benefit of the parties to this Agreement and their respective successors and assigns.
If the Option Holder is married and the Options to be terminated hereunder constitute community property or otherwise need spousal
or other approval for the termination to be legal, valid and binding, this Agreement is being contemporaneously herewith executed
and delivered by the Option Holder’s spouse. Nothing in this Agreement, express or implied, is intended or shall be construed
to give any person other than the Option Holder or the Company or their respective successors or assigns any legal or equitable
right, remedy or claim under or in respect of any agreement or any provision contained herein; provided that Parent and
Merger Sub shall be entitled to rely upon the acknowledgements and agreements set forth in this Agreement in consummating the Merger.

 

4. Entire Agreement. This Agreement
contains the entire agreement of the parties hereto relating to the subject matter hereof and supersedes all prior agreements and
understandings between the parties with respect to the subject matter hereof, and there are no written or oral terms or representations
made by either party other than those made herein.

  

5. Amendment; Termination. No amendment
or modification of this Agreement shall be valid or binding unless made in writing and duly executed by the party against whom
enforcement of any such amendment or modification is sought and making specific references to this Agreement. This Agreement shall
expire upon termination of the Merger Agreement.

 

6. Governing Law. This Agreement
and the rights and obligations of the parties hereunder shall be governed by the laws of the State of Delaware, without regard
to its conflicts of laws principles.

 

7. Counterparts. This Agreement
may be executed in any number of counterparts (including by facsimile or other electronic transmission), each of which shall be
deemed to be an original and all of which together shall be deemed to be one and the same instrument.

 

8. Taxation. The Option Holder shall
be solely responsible for any personal tax consequences arising from this Agreement and the holding and termination of the Options.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

     

     

    

  

IN WITNESS WHEREOF, the Company
and the Option Holder have each executed this Agreement as of the date and year first above written.

 

CAS MEDICAL SYSTEMS, INC.

 

 

By:_____________________________

Name:

Title:

 

 

OPTION HOLDER:

  

 

________________________________

Name:

 

[Signature Page to Option Termination Agreement]

     

     

    

  

Exhibit A

 

Options 

	 	 	 	 	 	 	 
	Option Grant Date	 	Option Plan	 	Number of Options	 	Exercise Price Per Option

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