Document:

Converted by EDGARwiz

SALES BROKER AGENCY AGREEMENT

This Sales Broker Agency Agreement ("Agreement") is made and effective this 27th day of August 2015 (“Effective Date”).

BETWEEN:

NutraFuels, Inc. (the "Principal"), a corporation organized and existing under the laws of the Florida, with its head office located at:

6601 Lyons Road, L-6 & 7

Coconut Creek, FL 33073

 

AND:

Strategic Business Systems LLC. (the "Agent/Agency"), a corporation organized and existing under the laws of the Utah, with its head office located at:

6300 Sagewood Road H373  Park City UT. 84098

 

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

1.

RECITALS

a.

WHEREAS, Principal is a manufacturer of VITAMIN SUPPLEMENTS and desires to appoint Agent/Agency as a non-exclusive sales Agent/Agency for the purpose of promoting and selling Principal’s product throughout the United States.  

b.

WHEREAS, Agent desires to accept such appointment as a non-exclusive sales Agent/Agency of Principal and agrees to abide by all the terms and conditions as set forth herein.  

2.

TERM

The term of the Agreement shall be ONE YEAR, beginning on the Effective Date above and may be renewed each year by Principal in its sole and absolute discretion, unless sooner terminated as provided herein. 

3.

TERRITORY

a.

Agent shall have the non-exclusive authorization to sell Principal’s product throughout the United States, unless otherwise specifically excluded in this Agreement. 

b.

Protected Accounts:  Upon Agent’s showing that it has received from a customer either: (1) a written proposal for the purchase of Principal’s product within 60 days of the proposal; or (2) submits a purchase order to Principal with a specific ship date and delivery destination, such customer shall become a protected account of the Agent for as long as the Customer orders products from the Principal. 

Initials:    Principal _________     Agent ____

4.

AGENT’S BEST EFFORTS

Agent agrees to use its best efforts to acquire and service Protected Accounts for the sale of Principal’s product.  Agent agrees that it shall adhere to Principal’s rules, regulations and instructions with regard to the promotion and sale of Principal’s products to customers.  Agent shall have salespersons to assist Agent, on such terms and conditions as Principal may require, in conformance with the provisions set forth in this Agreement.

5.

NONDISCLOSURE OF PRINCIPAL’S AFFAIRS

In furtherance of this Agreement, Principal may be required to disclose certain confidential and trade secret information to Agent.  Agent hereby agrees to hold such information in strict confidence, not to disclose such confidential information to any third party except as specifically authorized herein or by Principal, in writing.  Agent agrees to use all reasonable precautions, consistent with Agent’s treatment of its own confidential information of a similar nature to prevent unauthorized disclosure of the confidential information.  Agent agrees that it will not use Principal’s confidential information for any purpose other than to carry out its duties and obligations pursuant to this Agreement.  Agent further agrees not to use any of Principal’s confidential information or trade secrets or any variation thereof to compete with Principal in any capacity.     

6.
             

© Copyright Biztree Inc. 2010. All rights reserved. Protected by the copyright laws of the United States and Canada and by international treaties. IT IS ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL AUTOMATICALLY BE SUED IN A COURT OF LAW.

ASSIGNMENT OF AGENT’S INVENTIONS

Agent agrees, in view of the confidential information regarding Principal’s business affairs, plans and necessities, that Agent will be in a position to obtain from time to time, and in partial consideration of the commissions agreed to be paid to Agent under this Agreement, that Agent, on demand, will assign to Principal, or Principal’s successors or assigns, any inventions or improvements Agent may make during the agency with Principal that relate to Principal’s product. Agent also will sign any papers and do any acts that may be needed to secure to Principal, or Principal’s successors or assigns, any rights relating to such inventions and improvements, including patents in UNITED STATES OF AMERICA and foreign countries.

7.

COMMISSIONS

a.

During the term of this Agreement, Agent shall receive a commission from the sale of Principal’s products sold for resale to Agent’s Protected Accounts, whether sold by Agent or others contracted by Agent/Agency, except as otherwise provided in this Agreement.

b.

Agent’s commission on sales made pursuant to this Agreement shall be as follows:

I.

Sales made to Agent’s Protected Accounts.

II.

Principal agrees to pay a 15% commission rate to Agent/Agency on net sales from Protected Accounts, and will be paid once net invoice(s) are paid in full and monies are received and cleared through Principal’s corporate office. 

III.

Net Sales are defined as the invoice amount of product(s) sold to the Protected Accounts minus any and all deductions taken by the accounts for unsellable, spoiled or damaged product.  This will also include placement fee deductions, rebate credits or free product offered in lieu of placement fees.

Initials:    Principal _________     Agent __

8.

WHEN COMMISSIONS ARE PAID

a.

Any commission to be received under this agreement shall not be credited to Agent’s account on Principal’s books until the purchaser has made settlement in full with Principal, either by cash or other acceptable funds. If settlement is made wholly or in part by purchaser’s funds, Principal may withhold payment of the commission in or in part until the invoice(s) are paid in full. 

b.

Agent’s account may be charged with the amount of any commission previously paid to Agent or credited to Agent’s account for the unpaid portion of the purchase price of ANY RETURNED PRODUCT, or the unpaid portion of any funds that failed to provide clear funds to Principal. 

c.

In the event Principal is required to repossess a product(s), Agent shall receive commission only on the amount of money paid by purchaser prior to repossession.

9.

COMMISSIONS ON TRADE-INS

Principal shall have the right to fix the amount to be allowed for products taken in exchange, and a commission will not be paid on the amount so allowed.

10.

SALES THROUGH OTHER SALES CHANNELS

Agent will be paid a commission on any sales made to Agent’s Protected Account list through Principal’s offices, regardless of the sales channel.

11.

SALES IN OR FROM OTHER TERRITORIES OR PROTECTED ACCOUNTS

a.

Agent agrees not to enter the territory or protected accounts of any other sales agent of Principal for the purpose of selling Principal’s product, or to endeavor, directly or indirectly, to make sales of Principal’s product for use outside of Agent’s territory or protected account list. Should a purchaser call on Agent voluntarily and purchase Principal’s product for use outside of Agent’s territory, Agent shall receive commissions as follows:

I.

Agent shall receive a split commission from the other agent/agency’s protected account for that sale.  

II.

From time to time there will be an overlap in protected accounts and based on relationships and leverage of protected account, one agent may have a stronger authority of said account.  In this case, an evaluation will be conducted and Principal will designate a lead Agent/Agency to manage and service the account.

III.

In cases where this requires both Agents/Agency’s to manage and close business, the agents/agencies shall split the commissions accordingly.  

b.

Agent further agrees that, when any other authorized sales agent/agency of Principal sells Principal’s product for use in Agent’s territory or to Agent’s Protected Account, Agent’s account shall be credited with the designated split commission, less the commission paid to agent making the sale.

Initials:    Principal _________     Agent ____

12.

DISPUTES ON COMMISSIONS

Principal shall have the right to determine, in any dispute arising between Agent and any other sales Agent of Principal, the right to commission on any sale, and Agent shall abide by and be bound by Principal’s decision as long as 15% of gross sales is paid to the Agent on time. 

13.

ON GOING COMMISSIONS

Principal agrees to pay the Agents 15% commissions of gross sales on time for as long as the Agents Protected Account List is purchasing products from the Principal regardless if this agreement is inforce or terminated.  Funds will be wired on or before the 1st and 15th of each month with an accurate sales commission receipt.  If commissions are not paid on time, then legal fees incurred in the collection process by the Agent will be paid for by the Principal. 

14.

CONTENTS OF ORDERS

a.

All orders for Principal’s product shall be taken on printed forms furnished by Principal, all orders will be entered into “Method CRM” by the Principal. The orders shall contain all conditions and agreements of every nature whatsoever between the parties to the sale, it being agreed that Principal shall not be responsible for promises or conditions not specified on the orders. Principal’s product shall not be sold for more or less than the list price established and published by Principal.  Principal will make all orders fully disclosed to the Agent at all times.

b.

The Principal must agree in advance with the Agent if the Principal is compelled to make any concessions to customers or incur any expense by reason of a violation of these requirements, the amount of the expense may be only be charged to Agent’s account if the Agent has agreed in advance in writing via email.  Any and all concessions must be submitted in writing or through “Method CRM” and approved in writing by Principal in advance.

15.

ACCEPTANCE OF ORDERS BY PRINCIPAL

Orders taken by Agent shall not be binding until accepted by Principal. Principal reserves the right to reject any order when, in the sole and exclusive judgment of Principal, the product ordered may not be suitable to the business of the customer.

16.

AGENT NOT TO COMPETE

Agent, having agreed to devote Agent’s time and use its best efforts for the marketing and sales of Principal’s products.  Agent is currently not representing any competing products at this time.

17.

DAMAGED PRODUCT

Agent shall promptly and properly report to Principal if any of Principal’s products in Agent’s territory or Protected Accounts are damaged beyond sellable state.  Agent shall request a call tag from Principal and Principal to pick up damaged product and replace with new product, and to cooperate with and aid Principal in making all other request by accounts, within reason in Agent’s territory, in such manner as Principal may direct.

Initials:    Principal _________     Agent __

18.

COMPROMISE AND COLLECTION OF ACCOUNTS

A. Principal shall have full control of and discretion as to the collection, adjustment or compromise of any or all accounts for Principal’s products sold by Agent. If Principal requests Agent to make any collection, or to obtain possession of Principal’s product or other property, whether the request relates to a sale made by Agent or any Agent that preceded Agent in the territory or protected account(s), Agent shall do so promptly within reason as determined by the Agent.

B. Principal shall determine whether to take a lien on Principal’s product sold by Agent. Principal shall not be liable to Agent for any loss of commission or other claim, by reason of failure to take such lien, or by reason of any compromise or adjustment of any account or accounts or notes for products sold by Agent, or any failure for any reason to collect any part of the account or notes.

19.

REMITTALS BY AGENT

Agent agrees to remit DAILY to Principal, in the manner prescribed by EDGAR WARD, CEO, of Principal or to deposit DAILY in a bank or other financial institution designated by Principal’s EDGAR WARD, CEO, all money, checks and drafts received by Agent for Principal, including any returns received for displays and POS supplies sold. In no event will Agent use any money collected for Principal to defray the expenses of the Agent/Agency, or for any other purpose, or deposit the funds in any bank or other financial institution to Agent’s own credit.

20.

AGENT’S EXPENSES

All expenses for traveling, entertainment, office, clerical, office and equipment maintenance, and general selling expenses that may be incurred by Agent in connection with this Agreement will be borne wholly by Agent. In no case shall Principal be responsible or liable for such expenses.

21.

ACCOUNTING ON TERMINATION

a.

Agent authorizes Principal, on termination of the agency created by this Agreement, to pay any outstanding indebtedness due to the Agent.

b.

On termination of this Agreement, Principal shall proceed in the customary manner to collect notes and open accounts for purchases of Principal’s product sold by Agent and shall charge against Agent’s account the commission previously credited on such amounts of notes and accounts that remain uncollected. Principal also shall charge Agent’s account with Agent’s proportion of any collection expense. 

c.

Principal is responsible to make commission payments after this agreement is terminated as outlined in section 13 above. 

22.

OBJECTIONS TO ACCOUNTING; LIMITATIONS

Agent agrees that all objections to statements of account rendered by Principal are waived, unless written notice is given by Agent and unless such notice reaches Principal within ten (10) days after rendition of the statement by Principal.

Initials:    Principal _________     Agent __

23.

SURETY BOND OF AGENT

Agent does NOT agree to furnish Principal with a fidelity bond . 

24.

EXAMINATION OF AGENT’S ACCOUNTS

Both parties agrees that officers or authorized representatives of Principal or the Agent shall have, on demand, access to and the right to examine and make copies of all books of accounts, vouchers and papers of either the Principal or the Agent, in order to ascertain whether the business of Agent and Principal is being conducted in a manner satisfactory to the Principal and or the Agent.

25.

DISPOSITION OF PRODUCTS; CONSIGNMENT

a.

Principal agrees to send out “samples” and other items it deems necessary to gain the new business.

b.

The Agent will not be billed for any samples. 

26.

INSURANCE PREMIUMS; TAXES

Principal shall insure against loss by fire all products delivered on consignment to Agent, charging the premium paid for the insurance to Agent’s account. Agent shall pay all personal property taxes levied on consigned products, or shall pay such tax as may be levied in lieu of a personal property tax.

27.

COMPLIANCE WITH LAWS

Agent agrees, for the benefit of Agent’s employees and subagents, to comply in all respects with the workers’ compensation laws of any state or states of which Agent’s territory may be a part, and to pay the premiums and other costs and expenses incident to such coverage.

28.

CUSTOMER LIST; SALES CALLS

a.

Agent agrees to keep a list of probable purchasers, and also a list of users, resellers and distribution accounts of Principal’s products in Agent’s territory or Protected Accounts. Both lists shall show the name, nature and address of each business concern listed. The customer list shall also show the style and factory number of Principal’s product in use or on shelves.

b.

Agent agrees to send to Principal, on the form furnished by Principal, a list of all persons called on by Agent or Agent’s employees in connection with Principal’s business. The list shall show the name, nature and address of each business concern called on, and the object and results of the call.  In addition Agent/Agency and its authorized representatives agree to enter all accounts and pertinent information on said accounts into NutraFuels’ management software, “Method CRM.”  Furthermore, Agent/Agency agrees to keep information on protected accounts and prospects up to date with most current information.

c.

Agent agrees that the customer lists either provided to Agent or created by Agent in connection with the performance of its obligations under this Agreement, are the sole and exclusive property of Principal and Agent is strictly prohibited from keeping a company of Principal’s customers and potential customers for its own use.  

Initials:    Principal _________     Agent __

29.

EMPLOYMENT OF SUBAGENTS

Agent will have sales people who it contracts with directly to share commissions. Principal will have access to contact these sales people at any time.

30.

MODIFICATION AND TERMINATION

At any time, Principal in its sole and absolute discretion may not revise, protected accounts of the Agent.   The agency created by this Agreement may be terminated by either party by 30-day written notice mailed or delivered to the last known address of the other party. This Agreement covers all agreements between Agent and Principal relating to the contracting of Agent for the sale of Principal’s product(s).

31.

GOVERNING LAW, JURISDICTION AND ATTORNEY’S FEES

This Agreement shall be governed by and construed in accordance with the laws of the State of Florida, excluding its conflict of law provisions. Each party hereby irrevocably submits to the personal jurisdiction of the 15th Judicial Circuit Court for Palm Beach County, Florida, in any action or proceeding arising out of or relating to this Agreement, and each party hereto hereby irrevocably agrees that all claims in respect of any such action or proceeding may be heard and determined in such court. In the event any litigation, arbitration or other similar proceeding is brought by any party under this Agreement to enforce any of its terms or provisions, or in any appeal therefrom, it is agreed that the prevailing party shall be entitled to reasonable attorneys’ fees to be fixed by the trial court, appellate court and/or arbitrator.

32.

SUCCESSORS AND ASSIGNS 

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, administrators, executors, successors and assigns. 

33.

WAIVER

Failure of the Company to require performance of any provision of this Agreement shall not limit the Company’s right to enforce the provision, nor shall the Company’s waiver of any breach of any provision be a waiver by the Company of any succeeding breach of any provision or a waiver of the provision itself or any other provision.

34.

CONSTRUCTION. 

Neither this Agreement nor any Section hereof shall be construed against any party due to the fact that said Agreement or any Section hereof was drafted by said party or said party’s legal representative.

35.

HEADINGS

All Section titles or captions contained in this Agreement are for convenience only and shall not be deemed part of the context nor affect the interpretation of this Agreement.

36.

SAVINGS CLAUSE

If any provision of this Agreement, or the application of such provision to any person, entity or circumstance, shall be held invalid, the remainder of this Agreement, or the application of such provision to persons, entities or circumstances other than those as to which it is held invalid, shall not be affected thereby.

Initials:    Principal _________     Agent ____

37.

 PERSONAL INJURY AND PROPERTY DAMAGE CLAIMS

.

Principal shall defend Agent against all claims for personal injury and property damage or loss asserted by users of the products.  Further, Principal shall hold all Agents harmless against any such claims not the result of the negligence or other legal fault of Agents.  Such obligations are expressly conditioned on Principal receiving prompt notice of any claim for which the obligation applies; and Principal having exclusive control (including retaining counsel of its choosing) or an investigation, litigation, and settlement of any claim to which obligation applies.

The parties have executed this agreement the day and year first above written:

NutraFuels, Inc.

Strategic Business Systems LLC..

/s/Edgar Ward

/s/Michael Perog

Edgar Ward, CEO

Michael Perog, Managing MemberConverted by EDGARwiz

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE PROVISIONS OF ANY APPLICABLE STATE SECURITIES LAWS. THE SECURITIES THAT MAY BE ACQUIRED UPON CONVERSION MAY NOT BE SOLD, PLEDGED, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER PROVISIONS OF SUCH SECURITIES LAWS AND, IN THE CASE OF ANY EXEMPTION, ONLY IF THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION OF THE SECURITIES.

1,791,369 shares

August 25th, 2015

STOCK PURCHASE WARRANT

NUTRAFUELS, Inc., a Florida corporation (the "Company"), hereby certifies that, for services rendered, Edward and Patricia Sullivan  residing in the state of Florida ("Holder"), is entitled, subject to the terms set forth below, to purchase from the Company at any time or from time to time, on or after the date hereof and prior to the two year anniversary of the date hereof (the "Expiration Date"), 1,791,369 shares fully paid and non-assessable shares of Common Stock (as defined in Section 1.1 below) equal to the Initial Warrant Number at a cashless purchase price per share equal to the Initial Exercise Price, subject to adjustment both as to such number of shares and as to such price as hereinafter set forth (such price per share as so adjusted from time to time being herein called the "Exercise Price").

1.

DEFINITIONS.  As used herein the following terms have the following respective meanings:

1.1.

The term “Stock” includes (a) the Company's Common Stock, par value [$.001] per share, and (b) any other securities into which or for which any of the securities described in clause (a) above have been converted or exchanged pursuant to the Certificate of Determination of Preferences applicable to such securities, or any plan of recapitalization, reorganization, merger or consolidation, or otherwise.

1.2.

The term “Company” shall mean NUTRAFUELS, Inc. 

1.3.

The term “Initial Exercise Price” shall mean cashless ($0. 00 USD) per share.

1.4.

The term “Person” shall mean an individual, partnership, limited liability company, corporation, association, trust, joint venture, unincorporated organization or any government, governmental department or agency or political subdivision thereof.

1.5.

The term “Warrant Exercise Period” shall mean the period beginning on the date hereof and ending on the Expiration Date.

2.

EXERCISE OF WARRANT.  Subject to the limitations set forth in Section 3, this Warrant may be exercised (in whole and not in part) by Holder at any time during the Warrant Exercise Period by surrender of this Warrant to the Company at its principal office, together with (a) the Form of Subscription at the end hereof duly executed by Holder, (b) such other documents, statements, subscription agreements or other items as may be reasonably requested by the Company in furtherance of the requirements set forth in Section 3 and (c) payment, by certified check payable to the order of the Company or by wire transfer to its account, in the amount obtained by multiplying the number of shares of Stock for which this Warrant is then being exercised by the Exercise Price then in effect.

3.

RESTRICTIONS ON TRANSFER. 

3.1.

Securities Law Restrictions.  Holder hereby acknowledges that neither this Warrant nor any of the securities that may be acquired upon exercise of this Warrant have been registered under the Securities Act of 1933, as amended, or under the securities laws of any state. Holder acknowledges that, upon exercise of this 

Warrant, the securities to be issued upon such exercise may become subject to applicable federal and state securities (or other) laws requiring registration, qualification or approval of governmental authorities before such securities may be validly issued or delivered upon notice of such exercise.  With respect to any such securities, this Warrant may not be exercised by, and securities shall not be issued to, Holder in any state in which such exercise would be unlawful.  Holder agrees that the Company may place such legend or legends on certificates representing securities issued upon exercise of this Warrant as the Company may reasonably deem necessary to comply with applicable state and federal securities laws for the issuance of such securities.

3.2.

Representations by Holder.  By acceptance of this Warrant as set forth below, Holder represents and warrants to the Company that Holder is acquiring this Warrant, and will acquire any shares of Stock issued upon exercise of this Warrant, for Holder’s own account and for investment and without any present intention of selling or otherwise disposing of this Warrant or any such shares of Stock.

3.3.

Warrant Non-Transferable.  This Warrant is not transferable by Holder without the express prior written consent of the Company, which consent may be withheld at the Company’s sole discretion unless Holder establishes to the Company’s satisfaction that the transfer is in compliance with all federal and state securities laws and that the transferee will be bound by the terms of this Warrant and the Company’s Shareholders Agreement of even date.

4.

DELIVERY OF STOCK CERTIFICATES ON EXERCISE.

4.1.

Delivery.  Subject to the terms and conditions of this Warrant, as soon as practicable after the exercise of this Warrant, and in any event within ten (10) days thereafter, the Company at its expense (including the payment by it of any applicable issue taxes) will cause to be issued in the name of and delivered to Holder a certificate or certificates for the number of fully paid and non-assessable shares of Stock to which such Holder shall be entitled upon such exercise, together with any other stock or other securities and property (including cash, where applicable) to which Holder is entitled upon such exercise.

4.2.

Fractional Shares. This Warrant may not be exercised as to fractional shares of Stock.  In the event that the exercise of this Warrant, in full or in part, results in the issuance of any fractional share of Stock, then in such event Holder shall be entitled to cash equal to the fair market value of such fractional share as determined by the Company's Board of Directors.

5.

ADJUSTMENT FOR DIVIDENDS, DISTRIBUTIONS AND RECLASSIFICATIONS.  In case at any time or from time to time the holders of Stock shall have received, or (on or after the record date fixed for the determination of shareholders eligible to receive) shall have become entitled to receive, without payment therefore: (a) other or additional stock or other securities or property (other than cash) by way of dividend; or, (b) other or additional (or less) stock or other securities or property (including cash) by way of automatic conversion, spin-off, split-up, reclassification, recapitalization, combination of shares or similar corporate restructuring; other than additional shares of Stock issued as a stock dividend or in a stock split (adjustments in respect of which are provided for in Section 7), then and in each such case Holder on the exercise hereof as provided in Section 2 above shall be entitled to receive the amount of stock and other securities and property (including cash in the case referred to in subsection (b) of this Section 5) which Holder would have held on the date of such exercise if, on the date of the events described in subsections (a) and (b) above, Holder had been the holder of record of the number of shares of Stock subject to such exercise and had thereafter, during the period from the date of such events to and including the date of such exercise, retained such shares and all such other or additional stock and other securities and property (including cash in the case referred to in subsection (b) of this Section 5) receivable by Holder as aforesaid during such period, giving effect to all further adjustments called for during such period by Sections 6 and 7.

6.

ADJUSTMENT FOR REORGANIZATION, CONSOLIDATION, MERGER, ETC.

6.1.

Certain Adjustments.  In case at any time or from time to time the Company shall (a) consolidate with or merge into any other person or (b) transfer all or substantially all of its properties or assets to any other 

Person under any plan or arrangement contemplating the dissolution of the Company, then in each such case on the exercise hereof as provided in Section 2 at any time after the consummation of such consolidation or merger or transfer of assets (and prior to the effective date of such dissolution), as the case may be, Holder shall receive, in lieu of the Stock issuable on such exercise prior to such consummation, the stock and other securities and property (including cash) to which Holder would have been entitled upon such consummation or in connection with such dissolution, as the case may be, if Holder had so exercised this Warrant immediately prior thereto, all subject to further adjustment thereafter as provided in Sections 5 and 7.

6.2.

Continuation of Terms.  Upon any consolidation or merger referred to in Section 6.1(a), this Warrant shall continue in full force and effect and the terms hereof shall be applicable to the shares of Stock and other securities and property receivable upon the exercise of this Warrant after the consummation of such merger or consolidation, and shall be binding upon the issuer of any such Stock or other securities whether or not such person shall have expressly assumed the terms of this Warrant.  Upon any partial exercise of this Warrant, this Warrant shall continue in full force and effect and the terms hereof shall be applicable to the remaining unexercised shares of Stock covered hereby.  Anything herein to the contrary notwithstanding, in the event of a transfer of assets as described in Section 6.1(b), this Warrant shall expire and be of no further force or effect upon the dissolution of the Company, as and to the extent the Warrant is not properly exercised prior to the effective date of such dissolution.

7.

STOCK SPLITS AND STOCK DIVIDENDS.  If at any time there shall occur any stock split, stock dividend, reverse stock split or other subdivision of Stock (a "Stock Event"), then the number of shares of Stock to be received by the Holder of this Warrant shall be appropriately adjusted such that the proportion of the number of shares issuable hereunder immediately prior to such Stock Event to the total number of shares of the Company outstanding immediately prior to such Stock Event is equal to the proportion of the number of shares issuable hereunder immediately after such Stock Event to the total number of shares of the Company outstanding immediately after such Stock Event.  The Exercise Price shall be proportionately decreased or increased upon the occurrence of any Stock Event.

8.

CERTAIN OBLIGATIONS OF THE COMPANY.  The Company covenants that it will at all times reserve and keep available out of its authorized and unissued Stock, solely for the purpose of issuance upon exercise of this Warrant, a number of shares of Stock equal to the number of shares of Stock issuable upon exercise of this Warrant in effect from time to time.  The Company will from time to time, in accordance with the laws of the State of Florida, take action to increase the authorized amount of its Stock if at any time the number of shares of Stock authorized but remaining unissued and unreserved for other purposes shall be insufficient to permit the exercise of this Warrant in full.  The Company will maintain an office where presentations and demands to or upon the Company in respect of this Warrant may be made. The Company will give notice in writing to Holder, at the address of the Holder of this Warrant appearing on the books of the Company, of each change in the location of such office.

9.

CERTIFICATE AS TO ADJUSTMENTS.  In case of any event that may require any adjustment or readjustment in the shares of Stock issuable on the exercise of this Warrant, the Company at its expense will promptly prepare and send to Holder a certificate setting forth such adjustment or readjustment, including a statement of (a) the number of shares of Stock then outstanding on a fully diluted basis, (b) the number of shares of Stock to be received upon exercise of this Warrant, as in effect immediately prior to such adjustment or readjustment and as adjusted and readjusted (if required by Section 7) on account thereof, and (c) a calculation of the new Exercise Price in case of any adjustment of the Exercise Price.

10.

NOTICES OF RECORD DATE.  In the event of:  (a) any taking by the Company of a record of the holders of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend or other distribution, or any right to subscribe for, purchase or otherwise acquire any shares of stock of any class or any other securities or property, or to receive any other right; (b) any automatic conversion of the Stock into any other securities of the Company; (c) any capital reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company or any transfer of all or substantially all the assets of the 

Company to or any consolidation with or merger of the Company into any other Person; or (d) any voluntary or involuntary dissolution, liquidation or winding up of the Company, then, and in each such event, the Company will mail or cause to be mailed to Holder a notice specifying (i) the date on which any such record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, and (ii) the estimated date on which any such conversion, reorganization, reclassification, recapitalization, transfer, consolidation, merger, dissolution, liquidation or winding up is to take place, and the time, if any is to be fixed, as of which the holders of record of Stock shall be entitled to exchange their shares of Stock for securities or other property deliverable on such conversion, reorganization, reclassification, recapitalization, transfer, consolidation, merger, dissolution, liquidation or winding up. Such notice shall be mailed at least 15 days prior to the date specified in such notice on which any such action is expected to be taken.

11.

NOTICES.  All notices and other communications from the Company to the Holder of this Warrant shall be mailed by first class registered or certified mail, postage prepaid, or sent by facsimile machine to such address or facsimile number set forth on the signature page hereof, unless and until Holder furnishes to the Company a different address or facsimile number.

12.

MISCELLANEOUS.  In case any provision of this Warrant shall be invalid, illegal or unenforceable, or partially invalid, illegal or unenforceable, the provision shall be enforced to the extent, if any, that it may legally be enforced and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.  This Warrant and any term hereof may be changed, waived, discharged or terminated only by a statement in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought.  Holder shall have no rights as a shareholder of the Company until the date of the issuance to Holder of stock certificates for Stock upon the exercise of the Warrant in accordance with the terms hereof.  This Warrant shall be governed by and construed in accordance with the domestic substantive laws (and not the conflict of law rules) of Florida.  The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect any of the terms hereof.

IN WITNESS WHEREOF, the Company has caused this Stock Purchase Warrant to be executed by its duly authorized officer as of the date first above written.

ACKNOWLEDGED AND AGREED:

                NUTRAFUELS, Inc.

By:

/s/Edgar Ward

Edgar Ward

FORM OF SUBSCRIPTION

(To be signed only upon exercise of

Stock Purchase Warrant)

TO:  NUTRAFUELS, INC. 

The undersigned, the Holder of the within Stock Purchase Warrant, hereby irrevocably elects to exercise this Stock Purchase Warrant for, a cashless sum and to receive there under ____________________* shares of Common Stock of NutaFuels, Inc. (the "Company"), therefore and requests that the certificates for such shares be issued in the name of and delivered to the undersigned, whose address is set forth below.  The undersigned agrees to deliver to the Company such additional documentation as may be requested by the Company in accordance with the Stock Purchase Warrant.

Dated: ______________________

__________________________________________

(Signature must conform in all respects to the name 

of Holder as specified on the face of the 

Stock Purchase Warrant)

__________________________________________

__________________________________________

__________________________________________

(Address)

*Insert here the number of shares (all or part of the number of shares called for in the Stock Purchase Warrant) as to which the Stock Purchase Warrant is being exercised, without making any adjustment for any other stock or other securities or property or cash which, pursuant to the adjustment provisions of the Stock Purchase Warrant, may be deliverable on exercise, it being understood that the exercise of the Stock Purchase Warrant with respect to the number of shares set forth herein is deemed also to be the exercise of the Stock Purchase Warrant with respect to such other stock, securities, cash or property.

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