Document:

Park Place Energy Corp.: Exhibit 10.2 - Filed by newsfilecorp.com

RESTRICTED STOCK UNIT AWARD AGREEMENT 

PARK PLACE ENERGY CORP. 
2013 LONG-TERM INCENTIVE
EQUITY PLAN 

     1.     Award of
Restricted Stock Units. Pursuant to the Park Place Energy Corp. 2013
Long-Term Incentive Equity Plan (the “Plan”) for Employees (as
defined below), officers, directors and Contractors (as defined below) whose
past, present and/or potential future contributions to Park Place Energy Corp.,
an Nevada corporation (the “Company”) and its Subsidiaries, have
been, are or will be important to the success of the Company and its
Subsidiaries,

_________________________________ 
(the
“Participant”) 

has been granted an Other Stock-Based Award under the Plan of
[insert # of RSUs awarded] restricted stock units (the “Awarded
Units”) that may be converted into the number of shares of Common Stock
of the Company equal to the number of Awarded Units, subject to the terms and
conditions of the Plan and this Restricted Stock Unit Award Agreement (this
“Agreement”). The date of grant of this Other Stock-Based Award is
_____________, 20__ (the “Date of Grant”). Each Awarded Unit shall
be a notional share of Common Stock, with the value of each Awarded Unit being
equal to the Fair Market Value of a share of Common Stock at any time. 

     2.    
Subject to Plan. This Agreement is subject to the terms and conditions of
the Plan, and the terms of the Plan shall control to the extent not otherwise
inconsistent with the provisions of this Agreement. To the extent the terms of
the Plan are inconsistent with the provisions of the Agreement, this Agreement
shall control. The capitalized terms used herein that are defined in the Plan
shall have the same meanings assigned to them in the Plan unless otherwise
defined in this Agreement. This Agreement is subject to any rules promulgated
pursuant to the Plan by the Board or the Committee and communicated to the
Participant in writing.

     3.    
Vesting. Awarded Units that have become vested pursuant to the terms of
this Section 3 are collectively referred to herein as “Vested
RSUs.” All other Awarded Units are collectively referred to herein as
“Unvested RSUs.”

    
a.     Except as specifically provided in this Agreement and
subject to certain restrictions and conditions set forth in the Plan, one
hundred percent (100%) of the total Awarded Units shall vest on December 1, 2015
and become Vested RSUs, provided the Participant is a Contractor providing
services to the Company or a Subsidiary on that date. 

Notwithstanding the foregoing, upon the
occurrence of (A) a Qualified Transaction Date, (B) a Change in Control, (C) a
Termination of Service due to death or Total and Permanent Disability, or (D)
Termination of Service without Due Cause, all Unvested RSUs shall immediately
become Vested RSUs. 

    
Alternative Section 3.a (for time-vesting RSUs): 

     [a.
Except as specifically provided in this Agreement and subject to certain
restrictions and conditions set forth in the Plan, the Awarded Units shall be
vested as follows: 

     i.    
_____________percent (___%) of the total Awarded Units shall vest on the first anniversary of the Date of Grant and become Vested RSUs,
provided the Participant is employed by (or if the Participant is a Contractor,
is providing services to) the Company or a Subsidiary on that date.

     ii.    
_____________percent (___%) of the total Awarded Units shall vest on the second
anniversary of the Date of Grant and become Vested RSUs, provided the
Participant is employed by (or if the Participant is a Contractor, is providing
services to) the Company or a Subsidiary on that date. 

     iii.    
_____________percent (___%) of the total Awarded Units shall vest on the third
anniversary of the Date of Grant and become Vested RSUs, provided the
Participant is employed by (or if the Participant is a Contractor, is providing
services to) the Company or a Subsidiary on that date. 

     iv.    
_____________percent (___%) of the total Awarded Units shall vest on the fourth
anniversary of the Date of Grant and become Vested RSUs, provided the
Participant is employed by (or if the Participant is a Contractor, is providing
services to) the Company or a Subsidiary on that date. 

Notwithstanding the foregoing, upon the
occurrence of [(A) a Change in Control, (B) a Termination of Service due to
death or Total and Permanent Disability, or (C) Termination of Service without
Due Cause], all Unvested RSUs shall immediately become Vested RSUs.] 

    
b.     Within thirty (30) days following the close of the
calendar quarter in which the Awarded Units vest in accordance with Section
3.a. above, the Company shall convert the Vested RSUs into the number of
whole shares of Common Stock equal to the number of Vested RSUs, subject to the
provisions of the Plan and this Agreement and shall issue certificates for the
number of shares of Common Stock equal to the Vested RSUs in the Participant’s
name. Notwithstanding the immediately preceding sentence, in the case of a
distribution on account of the Participant’s Termination of Service, other than
death, distribution on behalf of a “specified employee,” as defined in Section
409A of the Code, shall not occur until the date which is earlier of (i) six (6)
months following the date of said employee’s “separation from service” (as such
term is defined in the Treasury Regulations promulgated under Section 409A of
the Code and any other guidance issued under Section 409A of the Code); or (ii)
the date of said employee’s death. From and after the date of receipt of such
shares, the Participant or the Participant’s estate, personal representative or
beneficiary, as the case may be, shall have full rights of transfer or resale
with respect to such stock subject to applicable state and federal
regulations.

     c.     Except as
otherwise provided in Section 3.a. above, upon the Participant’s
Termination of Service for any other reason whatsoever, the Participant shall be
deemed to have forfeited all of the Participant’s Unvested RSUs. Upon
forfeiture, all of the Participant’s rights with respect to the forfeited
Unvested RSUs shall cease and terminate, without any further obligations on the
part of the Company. 

     4.     Who
May Receive Converted Vested RSUs. During the lifetime of the Participant,
the Common Stock received upon conversion of Vested RSUs may only be received by
the Participant or his or her legal representative. If the Participant dies
prior to the date his or her Vested RSUs are converted into shares of Common
Stock as described in Section 3 above, the Common Stock relating to such
converted Vested RSUs may be received by any individual who is entitled to
receive the property of the Participant pursuant to the applicable laws of
descent and distribution. 

2 

     5.     No
Fractional Shares. Vested RSUs may be converted only with respect to full
shares, and no fractional share of stock shall be issued. 

     6.    
Rights as Shareholder. The Participant will have no rights as a
shareholder with respect to any shares covered by this Agreement until the
issuance of certificate for such shares in the Participant’s name with respect
to the Awarded Units. The Awarded Units shall be subject to the terms and
conditions of this Agreement regarding such shares. Except as otherwise provided
in Section 7, hereof, no adjustment shall be made for dividends of other
rights for which record date is prior to the registration of shares in the
Participant’s name. 

     7.    
Adjustment of Number of Awarded Units and Related Matters. The number of
Awarded Units shall be subject to adjustment in accordance with the terms of the
Plan, including without limitation Section 9 therein. 

     8.    
Participant’s Acknowledgments. The Participant acknowledges receipt of a
copy of the Plan, which has been furnished to the Participant and is
incorporated herein by reference for all purposes, and represents that he is
familiar with the terms and provisions thereof, and hereby accepts this Award
subject to all the terms and provisions thereof. The Participant hereby agrees
to accept as binding, conclusive, and final all decisions or interpretations of
the Board or the Committee upon any questions arising under the Plan or this
Agreement. 

     9.    
Execution of Documents. The Participant, by his execution of this
Agreement, hereby agrees to execute any documents requested by the Company in
connection with the conversion of the Awarded Units into shares of Common Stock
pursuant to this Agreement. 

     10.    
Representations, Etc. Each spouse individually is bound by, and such
spouse’s interest, if any, in any Awarded Units is subject to, the terms of this
Agreement. Nothing in this Agreement shall create a community property interest
where none otherwise exists. 

     11.    
Remedies. Each of the parties to this Agreement will be entitled to
enforce its rights under this Agreement specifically, to recover damages and
costs (including reasonable attorneys’ fees) cause by any breach of any
provision of this Agreement, and to exercise all other rights existing in its
favor. The parties hereto agree and acknowledge that money damages may not be an
adequate remedy for any breach of the provisions of this Agreement and that any
party may in its sole discretion apply to any court of law or equity of
competent jurisdiction (without positing any bond or deposit) for specific
performance and/or other injunctive relief in order to enforce or prevent any
violations of the provisions of this Agreement. 

     12.    
Participant’s Representations. Notwithstanding any of the provisions
hereof, the Participant hereby agrees that the Company will not be obligated to
issue any shares to the Participant hereunder, if the issuance of such shares
shall constitute a violation by the Participant or the Company of any provision
of any law or regulation of any governmental authority. Any determination in
this connection by the Company shall be final, binding, and conclusive. The
obligations of the Company and the rights of the Participant are subject to all
applicable laws, rules, and regulations. 

     13.    
Investment Representation. Unless the Common Stock is issued in a
transaction registered under applicable federal, provincial, and state
securities laws, by his or her execution hereof, the Participant represents and
warrants to the Company that all Common Stock which may be purchased and or
received hereunder will be acquired by the Participant for investment purposes
for his or her own account and not with any intent for resale or distribution in
violation of federal, provincial, or state securities laws. Unless the Common Stock is issued to him or her in a transaction
registered under the applicable federal, provincial, and state securities laws,
all certificates issued with respect to the Common Stock shall bear an
appropriate restrictive investment legend and shall be held indefinitely, unless
they are subsequently registered under the applicable federal, provincial, and
state securities laws or the Participant obtains an opinion of counsel, in form
and substance satisfactory to the Company and its counsel, that such
registration is not required.

3 

     14.    
Law Governing. This Agreement shall be governed by, construed, and
enforced in accordance with the laws of the State of Nevada. 

     15.     No
Right to Continue Service. Nothing herein shall be construed to confer upon
the Participant the right to continue to provide services to the Company or any
Subsidiary as a Contractor, or interfere with or restrict in any way the right
of the Company or any Subsidiary to discharge the Participant as a Contractor at
any time. 

     16.     Legal
Construction. In the event that any one or more of the terms, provisions, or
agreements that are contained in this Agreement shall be held by a court of
competent jurisdiction to be invalid, illegal, or unenforceable in any respect
for any reason, the invalid, illegal, or unenforceable term, provision, or
agreement shall not affect any other term, provision, or agreement that is
contained in this Agreement and this Agreement shall be construed in all
respects as if the invalid, illegal, or unenforceable term, provision, or
agreement had never been contained herein. 

     17.    
Covenants and Agreements as Independent Agreements. Each of the covenants
and agreements that are set forth in this Agreement shall be construed as a
covenant and agreement independent of any other provision of this Agreement. The
existence of any claim or cause of action of the Participant against the
Company, whether predicated on this Agreement or otherwise, shall not constitute
a defense to the enforcement by the Company of the covenants and agreements that
are set forth in this Agreement. 

     18.     Entire
Agreement. This Agreement together with the Plan supersede any and all other
prior understandings and agreements, either oral or in writing, between the
parties with respect to the subject matter hereof and constitute the sole and
only agreements between the parties with respect to the said subject matter. All
prior negotiations and agreements between the parties with respect to the
subject matter hereof are merged into this Agreement. Each party to this
Agreement acknowledges that no representations, inducements, promises, or
agreements, orally or otherwise, have been made by any party or by anyone acting
on behalf of any party, which are not embodied in this Agreement or the Plan and
that any agreement, statement or promise that is not contained in this Agreement
or the Plan shall not be valid or binding or of any force or effect. 

     19.    
Counterparts. This Agreement may be executed in separate counterparts,
each of which shall be deemed to be an original and all of which taken together
shall constitute one and the same agreement. 

     20.     Parties
Bound. The terms, provisions, and agreements that are contained in this
Agreement shall apply to, be binding upon, and inure to the benefit of the
parties and their respective heirs, executors, administrators, legal
representatives, and permitted successors and assigns, subject to the limitation
on assignment expressly set forth herein.

     21.    
Modification. No change or modification of this Agreement shall be valid
or binding upon the parties unless the change or modification is in writing and
signed by the parties; provided, however, that the Company may change or modify
this Agreement without the Participant’s consent or signature if the Company
determines, in its sole discretion, that such change or modification is
necessary for purposes of compliance with or exemption from the requirements of
Section 409A of the Code or any regulations or other guidance issued thereunder. Notwithstanding the preceding
sentence, the Company may amend the Plan to the extent permitted by the Plan.

4 

     22.    
Headings. The headings that are used in this Agreement are used for
reference and convenience purposes only and do not constitute substantive
matters to be considered in construing the terms and provisions of this
Agreement. 

     23.     Gender
and Number. Words of any gender used in this Agreement shall be held and
construed to include any other gender, and words in the singular number shall be
held to include the plural, and vice versa, unless the context requires
otherwise. 

     24.    
Notice. Any notice required or permitted to be delivered hereunder shall
be deemed to be delivered only when actually received by the Company or by the
Participant, as the case may be, at the addresses set forth below, or at such
other addresses as they have theretofore specified by written notice delivered
in accordance herewith: 

    
a.     Notice to the Company shall be addressed and
delivered as follows: 

            
Park Place Energy
Corp. 
        
    2200 Ross Ave., Suite
4500E 
       
     Dallas, TX
75201 
        
    Attn: Scott C. Larsen, President and
CEO 
            
Fax: (214)
220-4349 
          
  Email: slarsen@parkplaceenergy.com 

    
b.     Notice to the Participant shall be addressed and
delivered as set forth on the signature page. 

     25.    
Tax Requirements. The Participant is hereby advised to consult
immediately with his or her own tax advisor regarding the tax consequences of
this Agreement. Unless the Company otherwise consents in writing to an
alternative withholding method, the Company, or if applicable, any Subsidiary
(for purposes of this Section 25, the term “Company” shall be
deemed to include any applicable Subsidiary) shall withhold the number of shares
to be delivered upon the conversion of the Vested RSUs with an aggregate Fair
Market Value that equals (but does not exceed) the estimated amount of any
Federal, state, provincial, local, or other taxes required by law to be withheld
in connection with this Award. The Company, in its sole discretion and prior to
the date of conversion, may also permit the Participant receiving shares of
Common Stock upon conversion of Vested RSUs to pay the Company the amount of any
taxes that the Company is required to withhold in connection with the
Participant’s income arising with respect to this Award. Such payments shall be
required to be made prior to the delivery of any certificate representing shares
of Common Stock. Such payment, if the Company, in its sole discretion, so
consents in writing, may be made (i) by the delivery of cash to the Company in
an amount that equals or exceeds the required tax withholding obligations of the
Company; (ii) if the Company, in its sole discretion, so consents in writing,
the actual delivery by the Participant to the Company of shares of Common Stock,
other than (A) Restricted Stock, or (B) Common Stock that the Participant has
acquired from the Company within six (6) months prior thereto, which shares so
delivered have an aggregate Fair Market Value that equals or exceeds the
required tax withholding payment; or (iii) if the Company, in its sole
discretion, so consents in writing, the Company’s withholding of a number of
shares to be delivered upon the conversion of Vested RSUs, which shares so
withheld have an aggregate Fair Market Value that equals (but does not exceed)
the required tax withholding payment; or (iv) any combination of (i), (ii), or
(iii). The Company also may, in its sole discretion, withhold any such taxes
from any other cash remuneration otherwise paid by the Company to the
Participant. In addition and provided such action is consistent with applicable tax laws, and provided the
Company in its sole discretion and the Participant agree, the Company may remit
to the Participation cash in the amount that is estimated to equal any Federal,
state, provincial, local, or other taxes required by law to be withheld in
connection with this Award, and the Participant shall be solely responsible for
the remit such amounts directly to the applicable taxing authorities.

5 

     26.    
Definitions. For the purpose of this Award, unless the context requires
otherwise, the following terms shall have the meanings indicated:

     “Qualified Transaction
Date” means the first to occur of either of the following: 

     (a)     the date
on which the Company or any of its Subsidiaries, has raised an aggregate amount
of cash through the sale of equity equal to or exceeding $10 million, which
calculation shall include all funds raised through the sale of equity starting
with the sale of equity approved by the Board of Directors of the Company on and
as of June 15, 2013; OR, 

     (b)     the date
on which the Company or any of its Subsidiaries, pursuant to a transaction or
series of transactions, becomes entitled to receive proceeds or becomes entitled
to realize economic benefits in an amount of at least $20,000,000.

For purposes of this definition, a “transaction” means
any type of (i) capital raising transaction, including without limitation a
financing of debt and/or convertible equity, or (ii) farmout or similar
arrangement in which the Company agrees to exchange a portion of its interest in
an asset of the Company for funding to enable the Company to carry out work
programs on the asset of the Company. 

     “Change in Control”
of the Company occurs upon a change in the Company’s ownership, its effective
control or the ownership of a substantial portion of its assets, as follows:

     (a)    
Change in Ownership. A change in ownership of the Company that is more
particularly described in Section 9.1 of the Plan; or 

     (b)    
Change in Effective Control. Even though the Company may not have
undergone a change in ownership under paragraph (a) above, a change in the
effective control of the Company occurs on the date that Scott C. Larsen ceases
to serve as President and Chief Executive Officer of the Company; or 

     (c)    
Change in Ownership of Substantial Portion of Assets. A change in the
ownership of a substantial portion of the Company’s assets occurs on the date
that a Person acquires (or has acquired during the twelve (12) month period
ending on the date of the most recent acquisition by such Person) assets of the
Company, that have a total gross fair market value equal to at least forty
percent (40%) of the total gross fair market value of all of the Company’s
assets immediately before such acquisition or acquisitions. This provision
supersedes the provisions of Section 9.2 of the Plan. 

     (e)     The
provisions of this definition shall be interpreted in accordance with the
requirements of Section 409A of the Code and the Final Treasury Regulations
issued thereunder, it being the intent of the parties that this definition shall
be in compliance with the requirements of said Code Section and said
Regulations. Notwithstanding the foregoing provisions of this definition, in the
event this Award is subject to Section 409A of the Code, then, in lieu of the
foregoing definition and to the extent necessary to comply with the requirements
of Section 409A of the Code, the definition of “Change in Control” for purposes
of this Award shall be the definition provided for under Section 409A
of the Code and the regulations or other guidance issued thereunder.

6 

     “Contractor
Agreement” means the agreement under which the Participant provides
services to the Company as a Contractor. 

     “Contractor” means
any natural person, who is not an Employee, rendering bona fide services
to the Company or a Subsidiary, with compensation, pursuant to a written
independent contractor agreement between such person and the Company or a
Subsidiary, provided that such services are not rendered in connection with the
offer or sale of securities in a capital raising transaction and do not directly
or indirectly promote or maintain a market for the Company’s securities and, if
resident in Canada, the person spends or will spend a significant amount of time
and attention on the affairs and business of the Company or a Subsidiary. Where
a Contractor rendering services to the Company or a Subsidiary is not a natural
person, the Contractor Agreement may designate a natural person to be the
recipient of an award under this Agreement. 

     “Due Cause”
means any of the following events: 

     (a)     the
willful refusal by the Participant to perform his obligations under the
Contractor Agreement that is not corrected within thirty (30) days following
written notice thereof to the Participant by the Company, such notice to state
with specificity the nature of the willful refusal; 

     (b)    
Participant’s conviction of a felony; or 

     (c)     any
intentional act of fraud or embezzlement by the Participant that has a material
adverse impact on the business of the Company. 

     “Employee” means
common law employee (as defined in accordance with the Regulations and Revenue
Rulings then applicable under Section 3401(c) of the Code) of the Company or any
Subsidiary of the Company, provided, however, in the case of an individual whose
employment status, by virtue of his employer or residence, is not determined
under Section 3401(c) of the Code, “Employee” shall mean an individual treated
as an employee for local payroll tax or employment purposes by the applicable
employer for the relevant period. 

     “Person” shall have
the meaning given in Section 7701(a)(1) of the Code. Person shall include more
than one Person acting as a group as defined by the Final Treasury Regulations
issued under Section 409A of the Code. 

     “Retirement” means
any Termination of Service solely due to retirement upon or after attainment of
age sixty-five (65), or permitted early retirement as determined by the
Committee, provided, however, in the case of a Participant who resides in the
European Economic Area, “Retirement” shall mean any Termination of Service as of
a date he is eligible for mandatory retirement benefits under local law, without
regard to age. 

     “Termination of
Service” occurs when the Participant ceases to serve as a Contractor of
the Company and its Subsidiaries for any reason. Notwithstanding the foregoing
provisions of this definition, in the event that this Award is subject to
Section 409A of the Code, then, in lieu of the foregoing definition and to the
extent necessary to comply with the requirements of Section 409A of the Code,
the definition of “Termination of Service” for purposes of this Award shall be
the definition of “separation from service” provided for under Section 409A of
the Code and the regulations or other guidance issued thereunder. 

7 

     “Total and Permanent
Disability” means a Participant is qualified for long-term disability
benefits under the Company’s or Subsidiary’s disability plan or insurance policy
or under applicable non-U.S. law; or, if no such plan, policy or law is then in
existence or if the Participant is not eligible to participate in such plan or
policy, that the Participant, because of a physical or mental condition
resulting from bodily injury, disease, or mental disorder, is unable to render
his services as a Contractor for a period of six (6) continuous months, as
determined in good faith by the Committee, based upon medical reports or other
evidence satisfactory to the Committee. Notwithstanding the foregoing provisions
of this definition, in the event that this Award is subject to Section 409A of
the Code, then, in lieu of the foregoing definition and to the extent necessary
to comply with the requirements of Section 409A of the Code, the definition of
“Total and Permanent Disability” for purposes of this Award shall be the
definition of “disability” provided for under Section 409A of the Code and the
regulations or other guidance issued thereunder. 

[Signature Page to Follow] 

8 

     IN WITNESS WHEREOF, the Company
has caused this Agreement to be executed by its duly authorized officer, and the
Participant, to evidence his or her consent and approval of all the terms
hereof, has duly executed this Agreement, as of the date specified in Section
1 hereof. 

	COMPANY: 
	 
	PARK PLACE ENERGY CORP.
  
	 
	 	  
	By: 	
	Name: 	
	Title: 	
	 	  
	 	 
	PARTICIPANT: 
	 
	 	  
	Signature 	
	 Name:	
	 Addressex-10.1

 

 

 STOCK PURCHASE AGREEMENT
 

 This Stock Purchase Agreement (this “Agreement”) is made as of August 6, 2014 by and between the person set forth on Exhibit A attached hereto (the “Investor”) and B-Scada, Inc., a Delaware corporation (the “Company”).
 

 WHEREAS, upon the terms and conditions set forth in this Agreement, the Company proposes to issue and sell to the Investor the aggregate number of shares, par value $0.0001 per share, of common stock of the Company (the “Common Stock”) set forth opposite the name of such Investor on Exhibit A hereto for the aggregate purchase price set forth opposite the Investor’s name on Exhibit A hereto.
 

 NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:
 

 ARTICLE I
 

 DEFINITIONS
 1.1.
 Definitions.  
 

 As used in this Agreement, and unless the context requires a different meaning, the following terms have the meanings indicated:
 

 “Affiliate” shall mean any Person who is an “affiliate” as defined in Rule 12b-2 of the General Rules and Regulations under the Exchange Act.  In addition, any partner or member, as the case may be, of the Investor shall be deemed to be an Affiliate of the Investor.
 

 “By-laws” means the by-laws of the Company in effect on the date hereof, as the same may be amended from time to time.
 

 “Certificate of Incorporation” means the Certificate of Incorporation of the Company in effect on the date hereof, as the same may be amended from time to time.
 

 “Claims” has the meaning set forth in Section 4.5.
 

 “Code” means the Internal Revenue Code of 1986, as amended, or any successor statute thereto.
 

 “Commission” means the United States Securities and Exchange Commission or any similar agency then having jurisdiction to enforce the Securities Act.
 

 

 

 
 

 “Condition of the Company” means the assets, business, properties, prospects, operations or condition (financial or otherwise) of the Company.
 

 “Contractual Obligations” means, as to any Person, any provision of any security issued by such Person or of any agreement, undertaking, contract, indenture, mortgage, deed of trust or other instrument to which such Person is a party or by which it or any of its property is bound.
 

 “Exchange Act” means the United States Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder.
 

 “Financial Statements” has the meaning set forth in Section 4.8.
 

 “GAAP” means United States generally accepted accounting principles in effect from time to time.
 

 “Governmental Authority” means the government of any nation, state, city, locality or other political subdivision thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, and any corporation or other entity owned or controlled, through stock or capital ownership or otherwise, by any of the foregoing.
 

 “Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, encumbrance, lien (statutory or other) or preference, priority, right or other security interest or preferential arrangement of any kind or nature whatsoever (excluding preferred stock and equity related preferences).
 

 “Orders” has the meaning set forth in Section 4.2.
 

 “Patents” means any foreign or United States patents and patent applications, including any divisions, continuations, continuations-in-part, substitutions or reissues thereof, whether or not patents are issued on such applications and whether or not such applications are modified, withdrawn or resubmitted.
 

 “Permits” has the meaning set forth in Section 4.6.
 

 “Person” means any individual, firm, corporation, partnership, trust, incorporated or unincorporated association, joint venture, joint stock company, limited liability company, Governmental Authority or other entity of any kind, and shall include any successor (by merger or otherwise) of such entity.
 

 

 

 

 2
 

 

 
 

 “Requirements of Law” means, as to any Person, any law, statute, treaty, rule, regulation, right, privilege, qualification, license or franchise or determination of an arbitrator or a court or other Governmental Authority or stock exchange, in each case applicable or binding upon such Person or any of its property or to which such Person or any of its property is subject or pertaining to any or all of the transactions contemplated or referred to herein.
 

 “Securities Act” means the United States Securities Act of 1933, as amended, and the rules and regulations of the Commission thereunder.
 

 “Stock Equivalents” means any security or obligation which is by its terms convertible into or exchangeable or exercisable for shares of Common Stock or other capital stock of the Company, and any option, warrant or other subscription or purchase right with respect to Common Stock or such other capital stock.
 

 “Shares” has the meaning set forth in Section 2.1.
 

 “Subsidiaries” means, as of the relevant date of determination, with respect to any Person, a corporation or other Person of which 50% or more of the voting power of the outstanding voting equity securities or 50% or more of the outstanding economic equity interest is held, directly or indirectly, by such Person.  Unless otherwise qualified, or the context otherwise requires, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of the Company.
 

 ARTICLE II
 

 SALE OF SECURITIES
 

 2.1
 Sale of Securities.
 

 Subject to the terms and conditions of this Agreement, at the Closing, the Investor agrees to purchase, and the Company agrees to issue and sell to the Investor, the number of shares of Common Stock (the “Shares” or the “Securities”) set forth opposite the name of such Investor on Exhibit A for the aggregate purchase price set forth opposite the Investor’s name on Exhibit A (the “Purchase Price”).  The Investor shall pay the entire Purchase Price for the Securities at the Closing by check or wire transfer of immediately available funds.
 

 ARTICLE III
 

 CLOSING DATES, DELIVERY
 

 3.1.
 Closing Date; Location.
 

 

 3
 

 

 
 

 The closing of the purchase by the Investor of the Securities under this Agreement shall be held by an exchange of documents by overnight mail and e-mail on the date of this Agreement (the “Closing”), or at such time and place upon which the parties hereto shall mutually agree. The date of the Closing is hereinafter referred to as the “Closing Date.”
 

 ARTICLE IV
 

 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
 

 The Company hereby represents and warrant to the Investor as follows:
 

 4.1.
 Corporate Existence and Power.  
 

 The Company (a) is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation; (b) has all requisite power and authority to own and operate its property, to lease the property it operates as lessee and to conduct the business in which it is currently, or is proposed to be, engaged; (c) is duly qualified as a foreign corporation, licensed and in good standing under the laws of each jurisdiction in which its ownership, lease or operation of property or the conduct of its business requires such qualification, except where the failure to be so qualified would not have a material adverse effect on the Condition of the Company and (d) has the corporate power and authority to execute, deliver and perform its obligations under this Agreement. No jurisdiction, other than those referred to in clause (c) above, has claimed, in writing or otherwise, that the Company is required to qualify as a foreign corporation or other entity therein, and the Company does not file any franchise, income or other tax returns in any other jurisdiction based upon the ownership or use of property therein or the derivation of income therefrom.  The Company does not own or lease property in any jurisdiction other than its jurisdiction of incorporation and the jurisdictions referred to in clause (c) above.
 

 4.2
 Authorization; No Contravention.
 

 The execution, delivery and performance by the Company of this Agreement and the transactions contemplated hereby (a) have been duly authorized by all necessary corporate action of the Company; (b) do not contravene the terms of the Certificate of Incorporation or the By-laws; (c) do not violate, conflict with or result in any breach, default or contravention of (or with due notice or lapse of time or both would result in any breach, default or contravention of), or the creation of any Lien under, any Contractual Obligation of the Company or any Requirement of Law applicable to the Company; and (d) do not violate any judgment, injunction, writ, award, decree or order of any nature (collectively, “Orders”) of any Governmental Authority against, or binding upon, the Company.
 

 

 

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 4.3
 Governmental Authorization; Third Party Consents. 
 

 No approval, consent, compliance, exemption, authorization or other action by, or notice to, or filing with, any Governmental Authority or any other Person, and no lapse of a waiting period under a Requirement of Law, is necessary or required in connection with the execution, delivery or performance (including, without limitation, the sale, issuance and delivery of the Shares) by, or enforcement against, the Company of this Agreement or the transactions contemplated hereby.
 4.4
 Binding Effect. 
 

 This Agreement has been duly executed and delivered by the Company, and constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity relating to enforceability (regardless of whether considered in a proceeding at law or in equity).
 4.5
 Litigation.  
 

 There are no actions, suits, proceedings, claims, complaints, disputes, arbitrations or investigations (collectively, “Claims”) pending or, to the Knowledge of the Company, threatened, at law, in equity, in arbitration or before any Governmental Authority against the Company nor is the Company aware that there is any basis for any of the foregoing, that if adversely determined would be material to the Condition of the Company.  The foregoing includes, without limitation, Claims pending or, to the Knowledge of the Company, threatened or any basis therefor Known by the Company involving the prior employment of any of the Company’s employees, their use in connection with the Company’s business of any information or techniques allegedly proprietary to any of their former employers or their obligations under any agreements with prior employers.  No Order has been issued by any court or other Governmental Authority against the Company purporting to enjoin or restrain the execution, delivery or performance of this Agreement.
 

 4.6
 Compliance with Laws.
 

 (a)   The Company is in compliance with all Requirements of Law and all Orders issued by any court or Governmental Authority against the Company in all material respects.  To the Company’s Knowledge, there is no existing or proposed Requirement of Law which could reasonably be expected to prohibit or restrict the Company from, or otherwise materially adversely effect the Company in, conducting its business in any jurisdiction in which it now conducts or proposes, to conduct its business.
 

 

 

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 (b)  The Company has all material licenses, permits and approvals of any Governmental Authority (collectively, “Permits”) that are necessary for the conduct of the business of the Company; (ii) such Permits are in full force and effect; and (iii) no violations are or have been recorded in respect of any Permit.
 

 (c)   The Company has taken all action necessary to terminate the registration of its common stock under the Exchange Act and currently has no reporting obligations thereunder.
 

 4.7
 Financial Statements.
 

 The Company has made available to each Investor (a) the audited  financial statements of the Company (balance sheet and statements of operations, cash flow and stockholders’ equity, together with the notes thereto) for the fiscal year ended October 31, 2013 which contains the report of Cowan, Gunteski & Co., P.A and (b) the unaudited financial statements of the Company as of April 30, 2014 and for the three and six months then ended (collectively, the “Financial Statements”) The Financial Statements are complete and correct in all material respects and have been prepared in accordance with GAAP applied on a consistent basis throughout the periods indicated and with each other. The Financial Statements fairly present in all material respects the financial condition, operating results and cash flows of the Company as of the respective dates and for the respective periods indicated in accordance with GAAP, subject in the case of the unaudited interim statements, to normal year-end adjustments.
 

 4.8
 No Material Adverse Change; Ordinary Course of Business. 
 

 Since April 30, 2014: 
 

 (a) There has not been any material adverse change in the Condition of the Company;
 

 (b) the Company has not participated in any transaction material to the Condition of the Company or otherwise acted outside the ordinary course of business, including, without limitation, declaring or paying any dividend or declaring or making any distribution to its stockholders, except out of the earnings of the Company;
 

 (c) the Company has not increased the compensation of any of its officers or the rate of pay of any of its employees, except as part of regular compensation increases in the ordinary course of business;
 

 (d) the Company has not created or assumed any Lien on a material asset of the Company;
 

 (e) the Company has not entered into any Contractual Obligation, other than in the ordinary course of business; and
 

 

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 (f) there has not occurred a material change in the Company’s accounting principles or practice except as required by reason of a change in GAAP.
 

 4.9
 Private Offering. 
 

 No form of general solicitation or general advertising was used by the Company or its representatives in connection with the offer or sale of the Shares.  Subject to the accuracy of the representations made by the Investor in Article V of this Agreement, no registration of the Shares, pursuant to the provisions of the Securities Act or any state securities or “blue sky” laws, will be required by the offer, sale or issuance of the Shares.  The Company agrees that neither it, nor anyone acting on its behalf, shall offer to sell the Shares or any other securities of the Company so as to require the registration of the Shares pursuant to the provisions of the Securities Act or any state securities or “blue sky” laws, unless such Shares or other securities are so registered.
 

 4.10
 Broker’s, Finder’s or Similar Fees.
 

 There are no brokerage commissions, finder’s fees or similar fees or commissions payable by the Company in connection with the transactions contemplated hereby based on any agreement, arrangement or understanding with the Company or any action taken by any such Person.
 

 4.11
 Disclosure.
 

 (a) This Agreement and the documents and certificates furnished to the Investor by the Company do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained herein or therein, in the light of the circumstances under which they were made, not misleading.
 

 (b) There is no fact that the Company has not disclosed to the Investor in writing which materially adversely affects, or insofar as the Company can reasonably foresee could materially adversely affect, the Condition of the Company or the ability of the Company to perform its obligations under this Agreement or any document contemplated hereby.
 

 4.12
 Subsidiaries.
 

 The Company does not own, directly or indirectly, any capital stock, other equity securities or any other proprietary interest in any corporation, partnership, limited liability company, association or other Person. The Company is not a participant in any joint venture, partnership or similar arrangement.
 

 

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 4.13
 Capitalization. 
 

 On the Closing Date, immediately prior to giving effect to the transactions contemplated by this Agreement, the authorized capital stock of the Company shall consist of (i) 100,000,000 shares of Common Stock, $.0001 par value per share, of which 24,819,172 shares are issued and outstanding, and (ii) 2,000 shares of Preferred Stock, $.0001 par value per share, of which no shares are issued and outstanding. On the Closing Date there will be no options, warrants, conversion privileges, subscription or purchase rights or other rights presently outstanding to purchase or otherwise acquire (i) any authorized but unissued, unauthorized or treasury shares of the Company’s capital stock, (ii) any Stock Equivalents or (iii) any other securities of the Company and there are no commitments, contracts, agreements, arrangements or understandings by the Company to issue any shares of the Company’s capital stock or any Stock Equivalents or other securities of the Company.  The Shares are duly authorized, and when issued and sold to the Investors after payment therefor, will be validly issued, fully paid and non-assessable, will be issued in compliance with the registration and qualification requirements of all applicable federal, state and foreign securities laws and will be free and clear of all other Liens.  All of the issued and outstanding shares of Common Stock are all duly authorized, validly issued, fully paid and non-assessable, and were issued in compliance with the registration and qualification requirements of all applicable federal, state and foreign securities laws. 
 

 ARTICLE V
 

 REPRESENTATIONS AND WARRANTIES OF THE INVESTOR
 

 The Investor hereby represents and warrants to the Company with respect to the purchase of the Securities by such Investor as of the date of this Agreement as follows:
 

 5.1
 Experience.
 

 The Investor has such knowledge and experience in financial, tax, and business matters so as to enable Investor to evaluate the risks and merits of an investment in the Common Stock.
 

 5.2
 Investment.
 

 The Investor is acquiring the Securities for investment for Investor’s own account, not as a nominee or agent, and not with the view to, or for resale in connection with, any distribution thereof, nor with any present intention of distributing or selling such Securities.  Investor is aware of the limits on resale imposed by virtue of the transaction contemplated by this Agreement and is aware that the certificates representing the Securities will bear restrictive legends.
 

 

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 5.3
 No Public Market.
 

 The Investor understands that only a limited public market now exists for the common stock issued by the Company and that there is no assurance that a public market will ever exist for the Shares.
 

 5.4
 Risk of Loss.
 

 The Investor is financially able to bear the economic risk of an investment in the Securities, including a total loss of investment. Investor has adequate means of providing for the Investor’s current needs and has no need for liquidity in its investment in the Company and has no reason to anticipate any material change in its financial condition in the foreseeable future. The Investor understands that neither the Commission nor any other U.S. federal or state agency has reviewed the proposed offering of the Securities or made any finding or determination of fairness of the offering of the Securities or any recommendation or endorsement of such investment.
 

 5.5
 No Advertising.
 

 The Investor acknowledges that it has not received any information regarding the offering of the Securities or any invitation to attend any seminar or meeting held by the Company, through any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio.
 

 5.6
 Governmental Consents.
 

 No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority on the part of Investor is required in connection with (i) the execution, delivery and performance of this Agreement, (ii) the purchase of the Securities, and (iii) the consummation by the Investor of the transactions contemplated by this Agreement.
 

 5.7
 Broker’s Fees and Commissions.
 

 Neither the Investor nor any of the Investor’s officers, directors, employees, stockholders, agents or representatives has employed any investment banker, broker, or finder in connection with the transactions contemplated by this Agreement.
 

 5.8
 Accredited Investor. 
 

 The Investor is an accredited investor as such term is defined in Rule 501(a) promulgated by the Commission under the Securities Act.
 

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 ARTICLE VI
 

 CONDITIONS TO CLOSING OF THE COMPANY
 

 The Company’s obligation to issue the Securities to the Investor at the Closing is, at the option of the Company, subject to the fulfillment or waiver as of the Closing Date of the following conditions:
 

 6.1
 Correct Representations and Warranties.
 

 The representations and warranties made by the Investor in Article V shall be true and correct in all material respects (except for any such representations and warranties which are qualified by their terms by a reference to materiality or material adverse effect, which representation as so qualified shall be true and correct in all respects) when made and at and on the Closing Date with the same force and effect as if they had been made at and on such date.
 

 6.2
 Delivery of Purchase Price.
 

 The Company shall receive, by check or wire transfer of immediately available funds to an account designated in writing by the Company the entire Purchase Price for the Securities purchased by the Investor.
 

 ARTICLE VII
 

 CONDITIONS TO CLOSING
 

 The Investor’s obligation to purchase the Securities at the Closing is, at the option of such Investor, subject to the fulfillment or waiver as of the Closing Date of the following conditions:
 

 7.1
 Condition of the Investor.
 

 The representations and warranties made by the Company in Article IV shall be true and correct in all material respects (except for any such representations and warranties which are qualified by their terms by a reference to materiality or material adverse effect, which representation as so qualified shall be true and correct in all respects) when made and at and on the Closing Date with the same force and effect as if they had been made at and on such date. The Company shall deliver to the Investor certificates for the Securities purchased by such Investor.
 

 

 

 

 

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 7.2
 Condition of the Company.
 

 The representations and warranties made by the Investor in Article V shall be true and correct in all material respects (except for any such representations and warranties which are qualified by their terms by a reference to materiality or material adverse effect, which representation as so qualified shall be true and correct in all respects) when made and at and on the Closing Date with the same force and effect as if they had been made at and on such date. The Investor shall deliver to the Company the Purchase Price for the Securities purchased by the Investor. 
 

 ARTICLE VIII
 

 MISCELLANEOUS
 

 8.1
 Governing Law; Jurisdiction.
 

 This Agreement shall be governed in all respects by the laws of the State of Florida without giving effect to the conflicts of laws principles thereof. All suits, actions or proceedings arising out of, or in connection with, this Agreement or the transactions contemplated by this Agreement shall be brought in any court of competent subject matter jurisdiction sitting in Florida.  Each of the parties hereto by execution and delivery of this Agreement, expressly and irrevocably (i) consents and submits to the exclusive personal jurisdiction of any such courts in any such action or proceeding; (ii) consents to the service of any complaint, summons, notice or other process relating to any such action or proceeding by delivery thereof to such party as set forth in Section 8.5 hereof; and (iii) waives any claim or defense in any such action or proceeding based on any alleged lack of personal jurisdiction, improper venue, forum non conveniens or any similar basis.
 

 8.2
 Survival.
 

 All of the representations and warranties made herein shall survive the execution and delivery of this Agreement until July 31, 2015.
 

 8.3.
 Successors and Assigns.
 

 The provisions of this Agreement shall inure to the benefit of, and be binding upon, the permitted successors and assigns of the parties to this Agreement.
 

 8.4.
 Entire Agreement; Amendment.
 

 

 

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 This Agreement and the other documents delivered pursuant to this Agreement at the Closing constitute the full and entire understanding and agreement between the parties with regard to the subject matter hereof and thereof and supersede all prior agreements and merge all prior discussions, negotiations, proposals and offers (written or oral) between them, and no party shall be liable or bound to any other party in any manner by any representations, warranties, covenants or agreements except as specifically set forth herein or therein. Except as expressly provided in this Agreement, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the party against whom enforcement of any such amendment, waiver, discharge or termination is sought.
 

 8.5
 Notices, etc.
 

 All notices and other communications required or permitted under this Agreement shall be sent by registered or certified mail, postage prepaid, overnight courier, confirmed telex or facsimile transmission or otherwise delivered by hand or by messenger, addressed to the parties as follows (or at such other address as any such party shall have furnished to the other parties hereto in writing):
 

 	 	
	 If to the Company:
 

 B-Scada, Inc. 
 9030 West Fort Island Trail
 Building 9
 Crystal River, Florida 34429
 Attention: Ron DeSerranno
 e-mail:rdeserranno@b-scada.com
	 With a copy to:
 

 Jay Weil, Esq., 27 Viewpoint Road
 Wayne, New Jersey 07470
 Facsimile: 973-633-5072

	  
	  

	 If to the Investor:
 

 The address of the Investor set forth on Exhibit A attached hereto
	  

 

 Each such notice or other communication shall for all purposes of this Agreement be treated as effective or having been given (i) when delivered if delivered personally, (ii) if sent by registered or certified mail, at the earlier of its receipt or three business days after registration or certification thereof, (iii) if sent by overnight courier, on the next business day after the same has been deposited with a nationally recognized courier service, or (iv) when sent by confirmed telex or facsimile, on the day sent (if a business day) if sent during normal business hours of the recipient, and if not, then on the next business day.
 

 

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 8.6
 Delays or Omissions.
 

 Except as expressly provided in this Agreement, no delay or omission to exercise any right, power or remedy accruing to the Company or any other parties hereto or their respective successors or assigns, upon any breach or default by another party hereto under this Agreement shall impair any such right, power or remedy of the Company or such other party or their respective successors or assigns, as the case may be, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of a waiver of or acquiescence in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring; provided, however, that this Section 8.6 shall not be interpreted to extend the date or time for any right, privilege or option beyond that expressly set forth elsewhere in this Agreement. Any waiver, permit, consent or approval of any kind or character on the part of any holder of any breach or default under this Agreement, or any waiver on the part of any holder of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any holder shall be cumulative and not alternative.
 

 8.7
 Counterparts.
 

 This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties actually executing such counterparts, and all of which together shall constitute one instrument. This Agreement may be delivered by facsimile, and facsimile signatures shall be treated as original signatures for all applicable purposes.
 

 8.8
 Severability.
 

 In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision; provided that no such severability shall be effective if it materially changes the economic benefit of this Agreement to any party.
 

 8.9
 Titles and Subtitles.
 

 The titles and subtitles used in this Agreement are used for convenience only and are not considered in construing or interpreting this Agreement.
 

 8.10
 Construction.
 

 

 

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 The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. Any reference to any federal, state, local or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder and any applicable common law, unless the context requires otherwise. The word “including” shall mean including without limitation and is used in an illustrative sense rather than a limiting sense. Terms used with initial capital letters will have the meanings specified, applicable to singular and plural forms, for all purposes of this Agreement. Reference to any gender will be deemed to include all genders and the neutral form.
 

 8.11
 Incorporation of Exhibits and Schedules.
 

 The Exhibits and Schedules, if any, identified in this Agreement are incorporated herein by reference and made a part hereof.
 

 8.12
 Further Assurances.
 

 The parties agree (a) to furnish upon request to each other such further information, (b) to execute and deliver to each other such other documents, and (c) to do such other acts and things, all as they other party may reasonable request for the purpose of carrying out the intent of this Agreement and the documents referred to in this Agreement.
 

 

 

 

 

 

 

 

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 14
 

 

 
 The foregoing Securities Purchase Agreement is hereby executed as of the date first above written.
 

 B-SCADA, INC.
 

 By:___/s/ Allen R. DeSerranno
 Name: Allen R. DeSerranno
 Title: Chief Executive Officer
 

 

 

 YORKMONT CAPITAL PARTNERS, L.P.
 

 By:__/s/ Graeme P. Rein
 Name: Graeme P. Rein
 Title: Managing Member of Yorkmont
 Capital Management, LLC, General Partner
 To Yorkmont Capital Partners, L.P.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 EXHIBIT A
 

 

 INVESTOR
 

 	 	 	
	 Investor
	 Purchase Price
	 Shares Purchased

	 Yorkmont Capital Partners, L.P
 2313 Lake Austin Blvd.,
 Suite 209
 Austin, Texas 78703
	 $800,000
	 2,424,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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