Document:

ex4-1.htm

Exhibit 4.1

 

FORCE FUELS, INC.

2011 Stock Incentive Plan

  

1. Purpose. The purpose of the 2011 Stock Incentive Plan of FORCE FUELS, INC. is to further align the interests of employees, directors, and non-employee Consultants with those of the stockholders by providing incentive compensation opportunities tied to the performance of the Common Stock and by promoting increased ownership of the Common Stock by such individuals. The Plan is also intended to advance the interests of the Company and its stockholders by attracting, retaining and motivating key personnel upon whose judgment, initiative and effort the successful conduct of the Company’s business is largely dependent.

 

2. Definitions. Wherever the following capitalized terms are used in the Plan, they shall have the meanings specified below:

 

“Affiliate” means (i) any entity that would be treated as an “affiliate” of the Company for purposes of Rule 12b-2 under the Exchange Act and (ii) any joint venture or other entity in which the Company has a direct or indirect beneficial ownership interest representing at least one-third (1/3) of the aggregate voting power of the equity interests of such entity or one-third (1/3) of the aggregate fair market value of the equity interests of such entity, as determined by the Committee.

 

“Award” means an award of a Stock Option, Stock Award, or Restricted Stock Award granted under the Plan.

 

“Award Agreement” means a written or electronic agreement entered into between the Company and a Participant setting forth the terms and conditions of an Award granted to a Participant.

 

“Board” means the Board of Directors of the Company.

 

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Common Stock” means the Company’s common stock, $0.001 par value per share.

 

“Committee” means the Compensation Committee of the Board, or such other committee of the Board appointed by the Board to administer the Plan, or if no such committee exists, the Board.

 

“Company” means Force Fuels, Inc., a Nevada corporation.

 ”Consultant” means any person which is a consultant or advisor to the Company and which is a natural person and who provides bona fide services to the Company which are not in connection with the offer or sale of securities in a capital-raising transaction for the Company, and do not directly or indirectly promote or maintain a market for the Company’s securities.

“Date of Grant” means the date on which an Award under the Plan is made by the Committee, or such later date as the Committee may specify to be the effective date of an Award.

 

“Disability” means a Participant being considered “disabled” within the meaning of Section 409A(a)(2)(C) of the Code, unless otherwise provided in an Award Agreement.

 

“Eligible Person” means any person who is an employee of the Company or any Affiliate or any person to whom an offer of employment with the Company or any Affiliate is extended, as determined by the Committee, or any person who is a Non-Employee Director, or any person who is Consultant to the Company.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

  

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 “Fair Market Value” means the mean between the highest and lowest reported sales prices of the Common Stock on the New York Stock Exchange Composite Tape or, if not listed on such exchange, on any other national securities exchange on which the Company’s common stock is listed or on The Nasdaq Stock Market, or, if not so listed on any other national securities exchange or The Nasdaq Stock Market, then the average of the bid price of the Company’s common stock during the last five trading days on the OTC Bulletin Board immediately preceding the last trading day prior to the date with respect to which the Fair Market Value is to be determined.   If the Company’s common stock is not then publicly traded, then the Fair Market Value of the Common Stock shall be the book value of the Company per share as determined on the last day of March, June, September, or December in any year closest to the date when the determination is to be made.   For the purpose of determining book value hereunder, book value shall be determined by adding as of the applicable date called for herein the capital, surplus, and undivided profits of the Company, and after having deducted any reserves theretofore established; the sum of these items shall be divided by the number of shares of the Company’s common stock outstanding as of said date, and the quotient thus obtained shall represent the book value of each share of the Company’s common stock.

 

“Incentive Stock Option” means a Stock Option granted under Section 6 hereof that is intended to meet the requirements of Section 422 of the Code and the regulations thereunder.

 

“Non-Employee Director” means any member of the Board who is not an employee of the Company.

 

“Nonqualified Stock Option” means a Stock Option granted under Section 6 hereof that is not an Incentive Stock Option.

 

“Participant” means any Eligible Person who holds an outstanding Award under the Plan.

 

“Plan” means the 2011 Stock Incentive Plan of Force Fuels, Inc. as set forth herein, as amended from time to time.

“Restricted Stock Award” means a grant of shares of Common Stock to an Eligible Person under Section 8 hereof that is issued subject to such vesting and transfer restrictions as the Committee shall determine and set forth in an Award Agreement.

 

“Service” means a Participant’s employment with the Company or any Affiliate or a Participant’s service as a Non-Employee Director with the Company, as applicable.

 

“Stock Award” means a grant of shares of Common Stock to an Eligible Person under Section 7 hereof that are issued free of transfer restrictions and forfeiture conditions.

 

“Stock Option” means a contractual right granted to an Eligible Person under Section 6 hereof to purchase shares of Common Stock at such time and price, and subject to such conditions, as are set forth in the Plan and the applicable Award Agreement.

 

3. Administration.

 

3.1 Committee Members. The Plan shall be administered by a Committee comprised of one or more members of the Board, or if no such committee exists, the Board.

 

3.2 Committee Authority. The Committee shall have such powers and authority as may be necessary or appropriate for the Committee to carry out its functions as described in the Plan. Subject to the express limitations of the Plan, the Committee shall have authority in its discretion to determine the Eligible Persons to whom, and the time or times at which, Awards may be granted, the number of shares, units or other rights subject to each Award, the exercise, base or purchase price of an Award (if any), the time or times at which an Award will become vested, exercisable or payable, the performance goals and other conditions of an Award, the duration of the Award, and all other terms of the Award.  Subject to the terms of the Plan, the Committee shall have the authority to amend the terms of an Award in any manner that is not inconsistent with the Plan, provided that no such action shall adversely affect the rights of a 

 

  

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Participant with respect to an outstanding Award without the Participant’s consent. The Committee shall also have discretionary authority to interpret the Plan, to make factual determinations under the Plan, and to make all other determinations necessary or advisable for Plan administration, including, without limitation, to correct any defect, to supply any omission or to reconcile any inconsistency in the Plan or any Award Agreement hereunder. The Committee may prescribe, amend, and rescind rules and regulations relating to the Plan. The Committee’s determinations under the Plan need not be uniform and may be made by the Committee selectively among Participants and Eligible Persons, whether or not such persons are similarly situated. The Committee shall, in its discretion, consider such factors as it deems relevant in making its interpretations, determinations and actions under the Plan including, without limitation, the recommendations or advice of any officer or employee of the Company or such attorneys, consultants, accountants or other advisors as it may select. All interpretations, determinations, and actions by the Committee shall be final, conclusive, and binding upon all parties.

 

3.3 Delegation of Authority.  The Committee shall have the right, from time to time, to delegate to one or more officers of the Company the authority of the Committee to grant and determine the terms and conditions of Awards granted under the Plan, subject to the requirements of state law and such other limitations as the Committee shall determine. In no event shall any such delegation of authority be permitted with respect to Awards to any members of the Board or to any Eligible Person who is subject to Rule 16b-3 under the Exchange Act or Section 162(m) of the Code. The Committee shall also be permitted to delegate, to any appropriate officer or employee of the Company, responsibility for performing certain ministerial functions under the Plan.  In the event that the Committee’s authority is delegated to officers or employees in accordance with the foregoing, all provisions of the Plan relating to the Committee shall be interpreted in a manner consistent with the foregoing by treating any such reference as a reference to such officer or employee for such purpose.  Any action undertaken in accordance with the Committee’s delegation of authority hereunder shall have the same force and effect as if such action was undertaken directly by the Committee and shall be deemed for all purposes of the Plan to have been taken by the Committee.

 

4. Shares Subject to the Plan.

 

4.1 Maximum Share Limitations. Subject to Section 4.3 hereof, the maximum aggregate number of shares of Common Stock that may be issued and sold under all Awards granted under the Plan shall be three million (3,000,000) shares. Shares of Common Stock issued and sold under the Plan may be either authorized but unissued shares or shares held in the Company’s treasury. To the extent that any Award involving the issuance of shares of Common Stock is forfeited, cancelled, returned to the Company for failure to satisfy vesting requirements or other conditions of the Award, or otherwise terminates without an issuance of shares of Common Stock being made thereunder, the shares of Common Stock covered thereby will no longer be counted against the foregoing maximum share limitations and may again be made subject to Awards under the Plan pursuant to such limitations. Any Awards or portions thereof that are settled in cash and not in shares of Common Stock shall not be counted against the foregoing maximum share limitations.

 

4.2 Adjustments. If there shall occur any change with respect to the outstanding shares of Common Stock by reason of any recapitalization, reclassification, stock dividend, extraordinary dividend, stock split, reverse stock split or other distribution with respect to the shares of Common Stock, or any merger, reorganization, consolidation, combination, spin-off or other similar corporate change, or any other change affecting the Common Stock, the Committee may, in the manner and to the extent that it deems appropriate and equitable to the Participants and consistent with the terms of the Plan, cause an adjustment to be made in (i) the maximum number and kind of shares provided in Section 4.1 hereof, (ii) the number and kind of shares of Common Stock, or other rights subject to then outstanding Awards, (iii) the exercise or base price for each share or other right subject to then outstanding Awards, and (iv) any other terms of an Award that are affected by the event.   Notwithstanding the foregoing, in the case of Incentive Stock Options, any such adjustments shall, to the extent practicable, be made in a manner consistent with the requirements of Section 424(a) of the Code.

  

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4.3 Anti-Dilution. Notwithstanding anything contained in the Plan to cover the contrary, including any adjustments discussed in this Section 4, the maximum aggregate number of shares of Common Stock that may be issued and sold under all Awards granted under the Plan shall be anti-dilutive in the event of a reverse stock split by the Company and shall not result in any reduction in the number of shares available and authorized under the Plan at the effective time of such reverse stock split(s).

5. Participation and Awards.

 

5.1 Designations of Participants. All Eligible Persons are eligible to be designated by the Committee to receive Awards and become Participants under the Plan. The Committee has the authority, in its discretion, to determine and designate from time to time those Eligible Persons who are to be granted Awards, the types of Awards to be granted and the number of shares of Common Stock or units subject to Awards granted under the Plan.  In selecting Eligible Persons to be Participants and in determining the type and amount of Awards to be granted under the Plan, the Committee shall consider any and all factors that it deems relevant or appropriate.

 

5.2 Determination of Awards. The Committee shall determine the terms and conditions of all Awards granted to Participants in accordance with its authority under Section 3.2 hereof. An Award may consist of one type of right or benefit hereunder or of two or more such rights or benefits granted in tandem or in the alternative.  In the case of any fractional share or unit resulting from the grant, vesting, payment or crediting of dividends or dividend equivalents under an Award, the Committee shall have the discretionary authority to (i) disregard such fractional share or unit, (ii) round such fractional share or unit to the nearest lower or higher whole share or unit, or (iii) convert such fractional share or unit into a right to receive a cash payment. To the extent deemed necessary by the Committee, an Award shall be evidenced by an Award Agreement as described in Section 11.1 hereof.

 

6. Stock Options.

 

6.1 Grant of Stock Options. A Stock Option may be granted to any Eligible Person selected by the Committee.  Subject to the provisions of Section 6.8 hereof and Section 422 of the Code, each Stock Option shall be designated, in the discretion of the Committee, as an Incentive Stock Option or as a Nonqualified Stock Option.

 

6.2 Exercise Price. The exercise price per share of a Stock Option shall not be less than eighty five percent (85%) of the Fair Market Value of the shares of Common Stock on the Date of Grant, provided that the Committee may in its discretion specify for any Stock Option an exercise price per share that is higher than the Fair Market Value on the Date of Grant, except that the price shall not be less than one hundred ten (110%) of the Fair Market Value in the case of any person who owns securities possessing more than ten percent (10%) of the total combined voting power of all classes of securities of the Company.

 

6.3 Vesting of Stock Options.  The Committee shall in its discretion prescribe the time or times at which, or the conditions upon which, a Stock Option or portion thereof shall become vested and/or exercisable, and may accelerate the vesting or exercisability of any Stock Option at any time, provided, however, that any Stock Option shall vest at the rate of at least twenty percent (20%) per year over five (5) years from the date the Stock Option is granted, subject to reasonable conditions as may be provided for in the Award Agreement. However, in the case of a Stock Option granted to officers, Non-employee Directors, managers, or Consultants of the Company, the Stock Option may become fully exercisable, subject to reasonable conditions, at anytime or during any period established by the Company. The requirements for vesting and exercisability of a Stock Option may be based on the continued Service of the Participant with the Company or its Affiliates for a specified time period (or periods) or on the attainment of specified performance goals established by the Committee in its discretion.

 

6.4 Term of Stock Options. The Committee shall in its discretion prescribe in an Award Agreement the period during which a vested Stock Option may be exercised, provided that the maximum term of a Stock Option shall be ten years from the Date of Grant. Except as otherwise provided in this Section 6 or as otherwise may be provided by the Committee, no Stock Option issued to an employee or a Non-Employee Director of the Company may be exercised at any time during the term thereof unless the employee or a Non-Employee Director Participant is then in the Service of the Company or one of its Affiliates.

 

  

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6.5 Termination of Service. Subject to Section 6.8 hereof with respect to Incentive Stock Options, the Stock Option of any Participant whose Service with the Company or one of its Affiliates is terminated for any reason shall terminate on the earlier of (A) the date that the Stock Option expires in accordance with its terms or (B) unless otherwise provided in an Award Agreement, and except for termination for cause (as described in Section 10.2 hereof), the expiration of the applicable time period following termination of Service, in accordance with the following: (i) twelve months if Service ceased due to Disability; (ii) eighteen months if Service ceased at a time when the Participant is eligible to elect immediate commencement of retirement benefits at a specified retirement age under a pension plan to which the Company or any of its Affiliates had made contributions; (iii) eighteen months if the Participant died while in the Service of the Company or any of its Affiliates; or, (iv) three months if Service ceased for any other reason.  During the foregoing applicable period, except as otherwise specified in the Award Agreement or in the event Service was terminated by the death of the Participant, the Stock Option may be exercised by such Participant in respect of the same number of shares of Common Stock, in the same manner, and to the same extent as if he or she had remained in the continued Service of the Company or any Affiliate during the first three months of such period; provided that no additional rights shall vest after such three months. The Committee shall have authority to determine in each case whether an authorized leave of absence shall be deemed a termination of Service for purposes hereof, as well as the effect of a leave of absence on the vesting and exercisability of a Stock Option. Unless otherwise provided by the Committee, if an entity ceases to be an Affiliate of the Company or otherwise ceases to be qualified under the Plan or if all or substantially all of the assets of an Affiliate of the Company are conveyed (other than by encumbrance), such cessation or action, as the case may be, shall be deemed for purposes hereof to be a termination of the Service.

 

6.6 Stock Option Exercise; Tax Withholding. Subject to such terms and conditions as shall be specified in an Award Agreement, a Stock Option may be exercised in whole or in part at any time during the term thereof by notice in the form required by the Company, together with payment of the aggregate exercise price therefore and applicable withholding tax. Payment of the exercise price shall be made in the manner set forth in the Award Agreement, unless otherwise provided by the Committee: (i) in cash or by cash equivalent acceptable to the Committee; (ii) by payment in shares of Common Stock that have been held by the Participant for at least six months (or such period as the Committee may deem appropriate, for accounting purposes or otherwise) valued at the Fair Market Value of such shares on the date of exercise; (iii) through an open-market, broker-assisted sales transaction pursuant to which the Company is promptly delivered the amount of proceeds necessary to satisfy the exercise price; (iv) by a combination of the methods described above; or, (v) by such other method as may be approved by the Committee and set forth in the Award Agreement.  In addition to and at the time of payment of the exercise price, the Participant shall pay to the Company the full amount of any and all applicable income tax, employment tax and other amounts required to be withheld in connection with such exercise, payable under such of the methods described above for the payment of the exercise price as may be approved by the Committee and set forth in the Award Agreement.

 

6.7 Limited Transferability of Nonqualified Stock Options. All Stock Options shall be nontransferable except (i) upon the Participant’s death, in accordance with Section 11.2 hereof; or, (ii) in the case of Nonqualified Stock Options only, for the transfer of all or part of the Stock Option to a Participant’s “family member” (as defined for purposes of the Form S-8 registration statement under the Securities Act of 1933), as may be approved by the Committee in its discretion at the time of proposed transfer. The transfer of a Nonqualified Stock Option may be subject to such terms and conditions as the Committee may in its discretion impose from time to time. Subsequent transfers of a Nonqualified Stock Option shall be prohibited other than in accordance with Section 11.2 hereof.

 

  

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6.8 Additional Rules for Incentive Stock Options.

(a) Eligibility. An Incentive Stock Option may only be granted to an Eligible Person who is considered an employee for purposes of Treasury Regulation §1.421-7(h) with respect to the Company or any Affiliate that qualifies as a “subsidiary corporation” with respect to the Company for purposes of Section 424(f) of the Code.

(b) Termination of Employment. An Award of an Incentive Stock Option may provide that such Stock Option may be exercised not later than three (3) months following termination of employment of the Participant with the Company and all Subsidiaries, or not later than one year following a permanent and total disability within the meaning of Section 22(e)(3) of the Code, as and to the extent determined by the Committee to comply with the requirements of Section 422 of the Code.

 

(c) Other Terms and Conditions; Nontransferability. Any Incentive Stock Option granted hereunder shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as are deemed necessary or desirable by the Committee, which terms, together with the terms of the Plan, shall be intended and interpreted to cause such Incentive Stock Option to qualify as an “incentive stock option” under Section 422 of the Code. An Award Agreement for an Incentive Stock Option may provide that such Stock Option shall be treated as a Nonqualified Stock Option to the extent that certain requirements applicable to “incentive stock options” under the Code shall not be satisfied.  An Incentive Stock Option shall by its terms be nontransferable other than by will or by the laws of descent and distribution, and shall be exercisable during the lifetime of a Participant only by such Participant.

 

(d) Disqualifying Dispositions. If shares of Common Stock acquired by exercise of an Incentive Stock Option are disposed of within two years following the Date of Grant or one year following the transfer of such shares to the Participant upon exercise, the Participant shall, promptly following such disposition, notify the Company in writing of the date and terms of such disposition and provide such other information regarding the disposition as the Company may reasonably require.

 

6.9 Repricing Prohibited. Subject to the adjustment provisions contained in Section 4.2 hereof, without the prior approval of the Company’s stockholders, evidenced by a majority of votes cast, neither the Committee nor the Board shall cause the cancellation, substitution or amendment of a Stock Option that would have the effect of reducing the exercise price of such a Stock Option previously granted under the Plan, or otherwise approve any modification to such a Stock Option that would be treated as a “repricing” under the then applicable rules, regulations or listing requirements.

 

7. Stock Awards.

 

7.1 Grant of Stock Awards. A Stock Award may be granted to any Eligible Person selected by the Committee. A Stock Award may be granted for past services, in lieu of bonus or other cash compensation, as directors’ compensation or for any other valid purpose as determined by the Committee. A Stock Award granted to an Eligible Person represents shares of Common Stock that are issued without restrictions on transfer and other incidents of ownership and free of forfeiture conditions, except as otherwise provided in the Plan and the Award Agreement. The deemed issuance price of shares of Common  Stock subject to each Stock Award shall not be less than eighty five percent (85%) of the Fair Market Value of the Common Stock on the date of the grant. In the case of any person who owns securities possessing more than ten percent (10%) of the combined voting power of all classes of securities of the issuer or its parent or subsidiaries possessing voting power, the deemed issuance price of shares of Common Stock subject to each Stock Award shall be at least one hundred percent (100%) of the Fair Market Value of the Common Stock on the date of the grant. The Committee may, in connection with any Stock Award, require the payment of a specified purchase price.

 

  

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7.2 Rights as Stockholder. Subject to the foregoing provisions of this Section 7 and the applicable Award Agreement, upon the issuance of the Common Stock under a Stock Award the Participant shall have all rights of a stockholder with respect to the shares of Common Stock, including the right to vote the shares and receive all dividends and other distributions paid or made with respect thereto.

8. Restricted Stock Awards.

 

8.1 Grant of Restricted Stock Awards. A Restricted Stock Award may be granted to any Eligible Person selected by the Committee. The deemed issuance price of shares of Common  Stock subject to each Restricted Stock Award shall not be less than 85 percent of the Fair Market Value of the Common Stock on the date of the grant. In the case of any person who owns securities possessing more than ten percent of the combined voting power of all classes of securities of the issuer or its parent or subsidiaries possessing voting power, the deemed issuance price of shares of Common Stock subject to each Restricted Stock Award shall be at least one hundred percent (100%) of the Fair Market Value of the Common Stock on the date of the grant. The Committee may require the payment by the Participant of a specified purchase price in connection with any Restricted Stock Award.

 

8.2 Vesting Requirements. The restrictions imposed on shares granted under a Restricted Stock Award shall lapse in accordance with the vesting requirements specified by the Committee in the Award Agreement, provided that the Committee may accelerate the vesting of a Restricted Stock Award at any time. Such vesting requirements may be based on the continued Service of the Participant with the Company or its Affiliates for a specified time period (or periods) or on the attainment of specified performance goals established by the Committee in its discretion. If the vesting requirements of a Restricted Stock Award shall not be satisfied, the Award shall be forfeited and the shares of Common Stock subject to the Award shall be returned to the Company.

 

8.3 Restrictions. Shares of Common Stock granted under any Restricted Stock Award may not be transferred, assigned or subject to any encumbrance, pledge, or charge until all applicable restrictions are removed or have expired, unless otherwise allowed by the Committee. Failure to satisfy any applicable restrictions shall result in the subject shares of the Restricted Stock Award being forfeited and returned to the Company. The Committee may require in an Award Agreement that certificates representing the shares granted under a Restricted Stock Award bear a legend making appropriate reference to the restrictions imposed, and that certificates representing the shares granted or sold under a Restricted Stock Award will remain in the physical custody of an escrow holder until all restrictions are removed or have expired.

 

8.4 Rights as Stockholder. Subject to the foregoing provisions of this Section 8 and the applicable Award Agreement, the Participant shall have all rights of a stockholder with respect to the shares granted to the Participant under a Restricted Stock Award, including the right to vote the shares and receive all dividends and other distributions paid or made with respect thereto. The Committee may provide in an Award Agreement for the payment of dividends and distributions to the Participant at such times as paid to stockholders generally or at the times of vesting or other payment of the Restricted Stock Award.

 

8.5 Section 83(b) Election. If a Participant makes an election pursuant to Section 83(b) of the Code with respect to a Restricted Stock Award, the Participant shall file, within 30 days following the Date of Grant, a copy of such election with the Company and with the Internal Revenue Service, in accordance with the regulations under Section 83 of the Code. The Committee may provide in an Award Agreement that the Restricted Stock Award is conditioned upon the Participant’s making or refraining from making an election with respect to the Award under Section 83(b) of the Code.

 

9. Change in Control.

 

9.1 Effect of Change in Control. Except to the extent an Award Agreement provides for a different result (in which case the Award Agreement will govern and this Section 9 of the Plan shall not be applicable), notwithstanding anything elsewhere in the Plan or any rules adopted by the Committee pursuant to the Plan to the contrary, if a Triggering Event shall occur within the 12-month period beginning with a Change in Control of the Company, then, effective immediately prior to such Triggering Event, each outstanding Stock Option, to the extent that it shall not otherwise have become vested and exercisable, shall automatically become fully and immediately vested and exercisable, without regard to any otherwise applicable vesting requirement.

 

  

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9.2 Definitions

 

(a) Cause. For purposes of this Section 9, the term “Cause” shall mean a determination by the Committee that a Participant (i) has been convicted of, or entered a plea of nolo contendere to, a crime that constitutes a felony under Federal or state law; (ii) has engaged in willful gross misconduct in the performance of the Participant’s duties to the Company or an Affiliate; or, (iii) has committed a material breach of any written agreement with the Company or any Affiliate with respect to confidentiality, noncompetition, nonsolicitation, or similar restrictive covenant. Subject to the first sentence of Section 9.1 hereof, in the event that a Participant is a party to an employment agreement with the Company or any Affiliate that defines a termination on account of “Cause” (or a term having similar meaning), such definition shall apply as the definition of a termination on account of “Cause” for purposes hereof, but only to the extent that such definition provides the Participant with greater rights.  A termination on account of Cause shall be communicated by written notice to the Participant, and shall be deemed to occur on the date such notice is delivered to the Participant.

 

(b) Change in Control. For purposes of this Section 9, a “Change in Control” shall be deemed to have occurred upon:

 

(i) the occurrence of an acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of a percentage of the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Company Voting Securities”), though excluding (1) any acquisition directly from the Company (other than an acquisition by virtue of the exercise of a conversion privilege of a security that was not acquired directly from the Company); (2) any acquisition by the Company or an Affiliate; and, (3) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate (an “Acquisition”) that is thirty percent (30%) or more of the Company Voting Securities;

 

(ii) at any time during a period of two (2) consecutive years or less, individuals who at the beginning of such period constitute the Board (and any new directors whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was so approved) cease for any reason (except for death, Disability or voluntary retirement) to constitute a majority thereof;

 

(iii) an Acquisition that is fifty percent (50%) or more of the Company Voting Securities;

 

(iv) the consummation of a merger, consolidation, reorganization or similar corporate transaction, whether or not the Company is the surviving company in such transaction, other than a merger, consolidation, or reorganization that would result in the Persons who are beneficial owners of the Company Voting Securities outstanding immediately prior thereto continuing to beneficially own, directly or indirectly, in substantially the same proportions, at least fifty percent (50%) of the combined voting power of the Company Voting Securities (or the voting securities of the surviving entity) outstanding immediately after such merger, consolidation or reorganization;

 

(v) the sale or other disposition of all or substantially all of the assets of the Company;

 

(vi) the approval by the stockholders of the Company of a complete liquidation or dissolution of the Company; or

  

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(vii) the occurrence of any transaction or event, or series of transactions or events, designated by the Board in a duly adopted resolution as representing a change in the effective control of the business and affairs of the Company, effective as of the date specified in any such resolution.

(c) Constructive Termination. For purposes of this Section 9, a “Constructive Termination” shall mean a termination of employment by a Participant within sixty (60) days following the occurrence of any one or more of the following events without the Participant’s written consent (i) any reduction in position, title (for Vice Presidents or above), overall responsibilities, level of authority, level of reporting (for Vice Presidents or above), base compensation, annual incentive compensation opportunity, aggregate employee benefits; or, (ii) a request that the Participant’s location of employment be relocated by more than fifty (50) miles. Subject to the first sentence of Section 9.1 hereof, in the event that a Participant is a party to an employment agreement with the Company or any Affiliate (or a successor entity) that defines a termination on account of “Constructive Termination,” “Good Reason” or “Breach of Agreement” (or a term having a similar meaning), such definition shall apply as the definition of “Constructive Termination” for purposes hereof in lieu of the foregoing, but only to the extent that such definition provides the Participant with greater rights. A Constructive Termination shall be communicated by written notice to the Committee, and shall be deemed to occur on the date such notice is delivered to the Committee, unless the circumstances giving rise to the Constructive Termination are cured within five (5) days of such notice.

 

(d) Triggering Event. For purposes of this Section 9, a “Triggering Event” shall mean (i) the termination of Service of a Participant by the Company or an Affiliate (or any successor thereof) other than on account of death, Disability or Cause; (ii) the occurrence of a Constructive Termination; or, (iii) any failure by the Company (or a successor entity) to assume, replace, convert or otherwise continue any Award in connection with the Change in Control (or another corporate transaction or other change effecting the Common Stock) on the same terms and conditions as applied immediately prior to such transaction, except for equitable adjustments to reflect changes in the Common Stock pursuant to Section 4.2 hereof.

 

9.3 Excise Tax Limit.  In the event that the vesting of Awards together with all other payments and the value of any benefit received or to be received by a Participant would result in all or a portion of such payment being subject to the excise tax under Section 4999 of the Code, then the Participant’s payment shall be either (i) the full payment; or, (ii) such lesser amount that would result in no portion of the payment being subject to excise tax under Section 4999 of the Code (the “Excise Tax”), whichever of the foregoing amounts, taking into account the applicable Federal, state, and local employment taxes, income taxes, and the Excise Tax, results in the receipt by the Participant, on an after-tax basis, of the greatest amount of the payment notwithstanding that all or some portion of the payment may be taxable under Section 4999 of the Code.  All determinations required to be made under this Section 9 shall be made by the accounting firm which is the Company’s outside auditor immediately prior to the event triggering the payments that are subject to the Excise Tax (the “Accounting Firm”). The Company shall cause the Accounting Firm to provide detailed supporting calculations of its determinations to the Company and the Participant. All fees and expenses of the Accounting Firm shall be borne solely by the Company. The Accounting Firm’s determinations must be made with substantial authority (within the meaning of Section 6662 of the Code). For the purposes of all calculations under Section 280G of the Code and the application of this Section 9.3, all determinations as to present value shall be made using 120 percent of the applicable Federal rate (determined under Section 1274(d) of the Code) compounded semiannually.

 

10. Forfeiture Events.

 

10.1 General. The Committee may specify in an Award Agreement at the time of the Award that the Participant’s rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events shall include, but shall not be limited to, termination of Service for cause, violation of material Company policies, breach of noncompetition, confidentiality or other restrictive covenants that may apply to the Participant, or other conduct by the Participant that is detrimental to the business or reputation of the Company.

  

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10.2 Termination for Cause. Unless otherwise provided by the Committee and set forth in an Award Agreement, if a Participant’s employment with the Company or any Affiliate shall be terminated for cause, the Company may, in its sole discretion, immediately terminate such Participant’s right to any further payments, vesting or exercisability with respect to any Award in its entirety. In the event a Participant is party to an employment (or similar) agreement with the Company or any Affiliate that defines the term “cause,” such definition shall apply for purposes of the Plan. The Company shall have the power to determine whether the Participant has been terminated for cause and the date upon which such termination for cause occurs.  Any such determination shall be final, conclusive, and binding upon the Participant. In addition, if the Company shall reasonably determine that a Participant has committed or may have committed any act which could constitute the basis for a termination of such Participant’s employment for cause, the Company may suspend the Participant’s rights to exercise any option, receive any payment or vest in any right with respect to any Award pending a determination by the Company of whether an act has been committed which could constitute the basis for a termination for “cause” as provided in this Section 10.2.

 

11. General Provisions.

 

11.1 Award Agreement. To the extent deemed necessary by the Committee, an Award under the Plan shall be evidenced by an Award Agreement in a written or electronic form approved by the Committee setting forth the number of shares of Common Stock or units subject to the Award, the exercise price, base price, or purchase price of the Award, the time or times at which an Award will become vested, exercisable or payable and the term of the Award. The Award Agreement may also set forth the effect on an Award of termination of Service under certain circumstances. The Award Agreement shall be subject to and incorporate, by reference or otherwise, all of the applicable terms and conditions of the Plan, and may also set forth other terms and conditions applicable to the Award as determined by the Committee consistent with the limitations of the Plan. Award Agreements evidencing Incentive Stock Options shall contain such terms and conditions as may be necessary to meet the applicable provisions of Section 422 of the Code. The grant of an Award under the Plan shall not confer any rights upon the Participant holding such Award other than such terms, and subject to such conditions, as are specified in the Plan as being applicable to such type of Award (or to all Awards) or as are expressly set forth in the Award Agreement. The Committee need not require the execution of an Award Agreement by a Participant, in which case, acceptance of the Award by the Participant shall constitute agreement by the Participant to the terms, conditions, restrictions and limitations set forth in the Plan and the Award Agreement as well as the administrative guidelines of the Company in effect from time to time.

 

11.2 No Assignment or Transfer; Beneficiaries. Except as provided in Section 6.7 hereof, Awards under the Plan shall not be assignable or transferable by the Participant, except by will or by the laws of descent and distribution, and shall not be subject in any manner to assignment, alienation, pledge, encumbrance or charge. Notwithstanding the foregoing, the Committee may provide in the terms of an Award Agreement that the Participant shall have the right to designate a beneficiary or beneficiaries who shall be entitled to any rights, payments or other benefits specified under an Award following the Participant’s death.  During the lifetime of a Participant, an Award shall be exercised only by such Participant or such Participant’s guardian or legal representative. In the event of a Participant’s death, an Award may to the extent permitted by the Award Agreement be exercised by the Participant’s beneficiary as designated by the Participant in the manner prescribed by the Committee or, in the absence of an authorized beneficiary designation, by the legatee of such Award under the Participant’s will or by the Participant’s estate in accordance with the Participant’s will or the laws of descent and distribution, in each case in the same manner and to the same extent that such Award was exercisable by the Participant on the date of the Participant’s death.

 

11.3 Deferrals of Payment. The Committee may in its discretion permit a Participant to defer the receipt of payment of cash or delivery of shares of Common Stock that would otherwise be due to the Participant by virtue of the exercise of a right or the satisfaction of vesting or other conditions with respect to an Award. If any such deferral is to be permitted by the Committee, the Committee shall establish rules and procedures relating to such deferral in a manner intended to comply with the requirements of Section 409A of the Code, including, without limitation, the time when an election to defer may be made, the time period of the deferral and the events that would result in payment of the deferred amount, the interest or other earnings attributable to the deferral and the method of funding, if any, attributable to the deferred amount.

 

  

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11.4 Rights as Stockholder. A Participant shall have no rights as a holder of shares of Common Stock with respect to any unissued securities covered by an Award until the date the Participant becomes the holder of record of such securities. Except as provided in Section 4.2 hereof, no adjustment or other provision shall be made for dividends or other stockholder rights, except to the extent that the Award Agreement provides for dividend payments or dividend equivalent rights.

 

11.5 Employment or Service. Nothing in the Plan, in the grant of any Award or in any Award Agreement shall confer upon any Eligible Person any right to continue in the Service of the Company or any of its Affiliates, or interfere in any way with the right of the Company or any of its Affiliates to terminate the Participant’s employment or other service relationship for any reason at any time.

 

11.6 Securities Laws.  No shares of Common Stock will be issued or transferred pursuant to an Award unless and until all then applicable requirements imposed by Federal and state securities and other laws, rules and regulations and by any regulatory agencies having jurisdiction, and by any exchanges upon which the shares of Common Stock may be listed, have been fully met. As a condition precedent to the issuance of shares pursuant to the grant or exercise of an Award, the Company may require the Participant to take any reasonable action to meet such requirements. The Committee may impose such conditions on any shares of Common Stock issuable under the Plan as it may deem advisable, including, without limitation, restrictions under the Securities Act of 1933, as amended, under the requirements of any exchange upon which such shares of the same class are then listed, and under any blue sky or other securities laws applicable to such shares. The Committee may also require the Participant to represent and warrant at the time of issuance or transfer that the shares of Common Stock are being acquired only for investment purposes and without any current intention to sell or distribute such shares.

 

11.7 Tax Withholding. The Participant shall be responsible for payment of any taxes or similar charges required by law to be withheld from an Award or an amount paid in satisfaction of an Award, which shall be paid by the Participant on or prior to the payment or other event that results in taxable income in respect of an Award.  The Award Agreement may specify the manner in which the withholding obligation shall be satisfied with respect to the particular type of Award.

 

11.8 Unfunded Plan. The adoption of the Plan and any reservation of shares of Common Stock or cash amounts by the Company to discharge its obligations hereunder shall not be deemed to create a trust or other funded arrangement. Except upon the issuance of Common Stock pursuant to an Award, any rights of a Participant under the Plan shall be those of a general unsecured creditor of the Company, and neither a Participant nor the Participant’s permitted transferees or estate shall have any other interest in any assets of the Company by virtue of the Plan. Notwithstanding the foregoing, the Company shall have the right to implement or set aside funds in a grantor trust, subject to the claims of the Company’s creditors or otherwise, to discharge its obligations under the Plan.

 

11.9 Other Compensation and Benefit Plans. The adoption of the Plan shall not affect any other share incentive or other compensation plans in effect for the Company or any Affiliate, nor shall the Plan preclude the Company from establishing any other forms of share incentive or other compensation or benefit program for employees of the Company or any Affiliate. The amount of any compensation deemed to be received by a Participant pursuant to an Award shall not constitute includable compensation for purposes of determining the amount of benefits to which a Participant is entitled under any other compensation or benefit plan or program of the Company or an Affiliate, including, without limitation, under any pension or severance benefits plan, except to the extent specifically provided by the terms of any such plan.

 

11.10 Plan Binding on Transferees. The Plan shall be binding upon the Company, its transferees and assigns, and the Participant, the Participant’s executor, administrator and permitted transferees and beneficiaries.

 

  

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11.11 Severability. If any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction.

 

11.12 Foreign Jurisdictions. The Committee may adopt, amend and terminate such arrangements and grant such Awards, not inconsistent with the intent of the Plan, as it may deem necessary or desirable to comply with any tax, securities, regulatory or other laws of other jurisdictions with respect to Awards that may be subject to such laws. The terms and conditions of such Awards may vary from the terms and conditions that would otherwise be required by the Plan solely to the extent the Committee deems necessary for such purpose. Moreover, the Board may approve such supplements to or amendments, restatements or alternative versions of the Plan, not inconsistent with the intent of the Plan, as it may consider necessary or appropriate for such purposes, without thereby affecting the terms of the Plan as in effect for any other purpose.

 

11.13 Substitute Awards in Corporate Transactions. Nothing contained in the Plan shall be construed to limit the right of the Committee to grant Awards under the Plan in connection with the acquisition, whether by purchase, merger, consolidation or other corporate transaction, of the business or assets of any corporation or other entity. Without limiting the foregoing, the Committee may grant Awards under the Plan to an employee or director of another corporation who becomes an Eligible Person by reason of any such corporate transaction in substitution for awards previously granted by such corporation or entity to such person. The terms and conditions of the substitute Awards may vary from the terms and conditions that would otherwise be required by the Plan solely to the extent the Committee deems necessary for such purpose.

 

11.14 Governing Law. The Plan and all rights hereunder shall be subject to and interpreted in accordance with the laws of the State of Nevada, without reference to the principles of conflicts of laws, and to applicable Federal securities laws.

11.15 Financial Statements. All Participants shall receive the financial statements of the Company at least annually.  

 

11.16 Performance Based Awards. For purposes of Stock Awards and Restricted Stock Awards granted under the Plan that are intended to qualify as “performance-based” compensation under Section 162(m) of the Code, such Awards shall be granted to the extent necessary to satisfy the requirements of Section 162(m) of the Code.

 

12. Effective Date; Amendment and Termination.

 

12.1 Effective Date. The Plan shall become effective following its adoption by the Board. The term of the Plan shall be ten (10) years from the date of adoption by the Board, subject to Section 12.3 hereof.

 

12.2 Amendment. The Board may at any time and from time to time and in any respect, amend or modify the Plan. The Board may seek the approval of any amendment or modification by the Company’s stockholders to the extent it deems necessary or advisable in its discretion for purposes of compliance with Section 162(m) or Section 422 of the Code, or exchange or securities market or for any other purpose. No amendment or modification of the Plan shall adversely affect any Award theretofore granted without the consent of the Participant or the permitted transferee of the Award.

 

12.3 Termination. The Plan shall terminate on the tenth anniversary of the date of its adoption by the Board.  The Board may, in its discretion and at any earlier date, terminate the Plan. Notwithstanding the foregoing, no termination of the Plan shall adversely affect any Award theretofore granted without the consent of the Participant or the permitted transferee of the Award.

  

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The foregoing Force Fuels, Inc. 2011 Stock Incentive Plan was adopted by the Board of Directors of the Company on the 28th day of September, 2011.

FORCE FUELS, INC.

BY: /s/ Thomas C. Hemingway         

NAME: Thomas C. Hemingway

TITLE: President and Chief Executive Officer

  

13f8k01_x101-emed.htm

Exhibit 10.1

ACQUISITION AGREEMENT

This Acquisition Agreement (“Agreement”) made this 10th day of December, 2011 among E MED FUTURE, INC., a Nevada corporation (“EMed”), SIYAR HOLDING AG, a Swiss corporation (“Siyar”), PURE EARTH HOLDINGS LTD, a Cyprus corporation (“Pure”), TOTAL INVEST INTERNATIONAL BV, a Netherlands corporation (“Total”), WISTALS INVESTMENT GROUP AG, a Swiss corporation (“Wistals”), VELA HELEEN HOLDINFG GMBH, a Swiss corporation (“Vela”), A VAN BUUREN an individual resident in the Netherlands (“van Buuren”), and SEC ATTORNEYS, LLC a Connecticut limited liability company (“Sec Attorneys”) and, collectively with Siyar, Pure, Total, Wistals, Vela, and van Buuren, “Sellers”).

 

RECITALS;

 

ACEM HOLDING AG is a Swiss company (“the Company”) which owns all of the shares of ACEM MADENCIHLIK LTD a Turkish company that acquired from the Turkish state authorities a permit to mine in the county of Merkez, in the north of the village Azikan (Yazibasi) a surface of 490 hectors for the exploration of manganese ore, which according to EMCP AG who performed an expert assessment of the manganese deposit, copy of which is attached as Exhibit D, has a present deposit value of 94.8 million Euros or about $126.4 million U.S. Dollars.

 

Sellers own and desire to sell all of the issued and outstanding shares of the Company, and EMed desires to purchase, all of the issued and outstanding shares of the Company (the “Shares”) from Sellers, for the consideration and on the terms set forth in this Agreement.

 

NOW, THEREFORE, WITNESSETH, that for and in consideration of the premises and of the mutual promises and covenants hereinafter set forth, the parties hereto agree as follows:

 

A.           PURCHASE AND PAYMENT

 

1.           Sale and Transfer of Shares.

 

Subject to the terms of this Agreement, at Closing as those terms are hereinafter defined, Sellers will sell and transfer the Shares to EMed, and EMed will purchase the Shares from Sellers.

 

 

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2.           Purchase Price.

 

EMed will deliver at Closing post ten to one reverse split of existing shareholders a ninety five (95%) percent interest in EMed in the form of One Hundred Twenty Million (120,000,000) newly issued common shares of EMed shares in the name of the Sellers in accordance with the schedule in Exhibit A attached hereto and incorporated herein by reference (the "EMed Shares") whereby after closing EMed shall have a total of One Hundred Twenty Six Million (126,000,000) issued and outstanding shares.  Share issued to Pure, Total, Wistals, and Vela shall be non-dilutive.

 

B.           ESCROW AGENT

 

1.           Appointment of Escrow Agent.

 

EMed, Company and Sellers do hereby appoint Jerry Gruenbaum Esq. the Escrow Agent to act in accordance with and subject to the terms of this Agreement and the Escrow Agent hereby accepts such appointment and agrees to act in accordance with and subject to the terms hereof (the “Escrow Appointment”).

 

2.           Terms.

 

This Escrow Appointment shall terminate upon Closing.  Escrow Agent shall be relieved of all liability and responsibility hereunder, upon the completion of his services as stated herein pursuant to the terms hereof.

 

3.           Duties of Escrow Agent.

 

3.1           The Escrow Agent shall not be liable for any action taken or omitted by it, or any action suffered by it to be take nor omitted, in good faith and in the exercise of its own best judgment, and may rely conclusively and shall be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel (including counsel chosen by the Escrow Agent), statement, instrument, report or other paper or document (not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained) which is believed by the Escrow Agent to be genuine and to be signed or presented by the proper person or persons. The Escrow Agent shall not be bound by any notice or demand, or any waiver, modification, termination or rescission of this Escrow Agreement unless evidenced by a

 

 

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writing delivered to the Escrow Agent signed by the proper party or parties and, if the duties or rights of the Escrow Agent are affected, unless it shall have given its prior written consent thereto.

 

3.2           The Escrow Agent shall not be responsible for the sufficiency or accuracy, the form of, or the execution, validity, value or genuineness of, any document or property received, held or delivered by it hereunder, or of any signature or endorsement thereon, or for any lack of endorsement thereon, or for any description therein, nor shall the Escrow Agent be responsible or liable in any respect on account of the identity, authority or rights of the persons executing or delivering or purporting to execute or deliver any document or property paid or delivered by the Escrow Agent pursuant to the provisions hereof.  In no event shall the Escrow Agent be liable with regard to the financial stability of any banking institution with which it deposits such funds.

 

3.3           The Escrow Agent shall have the right to assume, in the absence of written notice to the contrary from the proper person or persons, that a fact or an event by reason of which an action would or might be taken by the Escrow Agent does not exist or has not occurred, without incurring liability for any action taken or omitted, in good faith and in the exercise of its own best judgment, in reliance upon such assumption.

 

3.4           From time to time on and after the date hereof, EMed, Company and Sellers shall deliver or cause to be delivered to the Escrow Agent such further documents and instruments and shall do or cause to be done such further acts as the Escrow Agent shall reasonably request (it being understood that the Escrow Agent shall have no obligation to make any such request) to carry out more effectively the provisions and purposes of this Escrow Agreement, to evidence compliance herewith or to assure itself that it is protected in acting hereunder.

 

C.           REPRESENTATIONS AND WARRANTIES OF SELLERS AND COMPANY

 

Sellers and Company hereby represent and warrant to EMed that, as of the date hereof, the following statements are true and correct, except as to statements in Sections C.2 and C.3 which are made only by Sellers who own the Shares with respect to which the statement is made.

 

1.           Corporate Status.

 

Company is (a) duly organized, validly existing and in good standing under the laws of Switzerland; (b) has full corporate power to own all of its properties and carry on its business as it is now being

 

 

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conducted; and (c) is qualified to do business in each of the jurisdictions in which it operates and the character of the properties owned by Company or the nature of the business transacted by Company does not make qualification necessary in any other jurisdiction or jurisdictions.

 

2.           Authority to Sell.

 

Sellers have full right, power and authority to sell, transfer and deliver the Shares owned by such Seller to EMed in accordance with the terms of this Agreement, and otherwise to consummate and close the transaction provided for in this Agreement in the manner and upon the terms herein specified.

 

3.           Ownership of Shares.

 

All of the Shares of Company are owned by Siyar, Pure, Total, Wistals, Vela, van Buuren and Sec Attorneys.  Sellers hold such Shares free and clear of all liens, claims, debts, encumbrances and assessments, and any and all restrictions as to sale, assignment or transferability thereof.  Sellers have full right, power and authority to sell, transfer and deliver Shares owned by said Seller and the certificates therefor, sold hereunder, to EMed in accordance with the terms of this Agreement, and otherwise to consummate and close the transaction provided for in this Agreement in the manner and upon the terms herein specified.

 

D           REPRESENTATIONS AND WARRANTIES OF EMED

 

EMed hereby warrants and represents to Sellers and Company that, as of the date hereof, the following statements are true and correct.

 

1.           Corporate Status.

 

EMed is a duly organized, validly existing and will be in good standing under the laws of the State of Nevada on the date of Closing.  Copy of current status of EMed is attached as Exhibit B hereto and incorporated herein by reference.

 

2.           Financial Statements.

 

Prior to the date of Closing, EMed shall deliver to Company internal financial statements as of December 1, 2011, and said internal financial statements, including the related notes and explanatory notes, present fairly the financial position of EMed at the date thereof in conformity with generally accepted accounting principles.

 

 

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3.           Assets and Liabilities.

 

3.1           Assets

 

At closing EMed shall have no assets.

 

3.2           Liabilities

 

At closing EMed shall have no liabilities other those owed to governmental agencies including the U.S. Internal Revenue Services a copy of which is listed in Exhibit C attached hereto.

 

4.           Capital Structure.

 

EMed (a) is authorized by its charter and applicable law to issue Fifty Million (50,000,000) Common Stock, $0.001 par value of which Forty Two Million Five Hundred Thirteen Thousand Four Hundred Fifteen (42,513,415) Common Stock $0.001 par value are issued and outstanding among approximately Nin Hundred Eighty Four (984) shareholders all of which such shares are fully paid and non-assessable; (b) does not have authorized, issued or outstanding any preferred shares, subscription, option, warrant, conversion or other rights to the issuance or receipt of shares of its capital stock except as set forth herein; (c) has all voting rights vested exclusively in the presently issued and outstanding capital stock; and (e) does not have any outstanding bonds, debentures or other similar evidences of indebtedness.

 

5.           Litigation.

 

5.1           Emed was subject to a lawsuit titled Complete Investment Management Ltd. v. E Med Future Inc. etal in the Courts of Common Pleas for Franklin County Ohio case No. 06 CV 01119.  Said case has been settled on December 6, 2011 as part of this Acquisition Agreement for 1,000,000 newly issued shares post 10 to 1 reverse split and subject to this Acquisition Agreement closing.  Copy of said Settlement Agreement is attached as Exhibit E and incorporated herein by reference.

 

5.2           Emed was a subject to a lawsuit titled Ohio State Bureau Workers Compensation v. E Med Future, Inc. in the Courts of Common Pleas for Franklin County Ohio case No. 06 JG 027173.  Said case is active and judgment was entered on August 30, 2006.

 

 

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5.3           Emed was a subject to a lawsuit titled Ohio State Department of Taxation v. E Med Future, Inc. in the Courts of Common Pleas for Franklin County Ohio case No. 08 JG 011553.  Said case is active and judgment was entered on March 28, 2008.

 

5.4           Emed was a subject to a lawsuit titled Safe Medical Solutions LLC v. E Med Future, Inc., etal in the Courts of Common Pleas for Franklin County Ohio case No. 06 CV 009757.  Said case was dismissed by Safe Medical on April 29, 2008 as part of a settlement agreement executed on January 20, 2008 a copy of which is attached as Exhibit F and incorporated herein by reference.

 

5.5           EMed is not a party to any pending or to its knowledge threatened suit, action, proceeding, prosecution or litigation nor to the knowledge of EMed is there any threatened or pending governmental investigation involving EMed or any of its operations, including inquiries, citations or complaints by any federal, state or local administration or agency.

 

6.           Truth of Representation.

 

No representation by EMed made in this Agreement and no statement made in any certificate or schedule furnished in connection with the transaction herein contemplated contains or will contain any knowingly untrue statement of a material fact or knowingly omits or will omit to state any material fact reasonably necessary to make any such representation or any such statement not misleading to a prospective purchaser of the EMed Shares.

 

E.           CONDITIONS PRECEDENT TO CLOSING

 

All obligations under this Agreement are subject to the fulfillment of each of the following conditions, in addition to the fulfillment of any and all other conditions set forth in this Agreement:

 

1.           Reinstate EMed in the State of Nevada.

 

Prior to the Closing Date, Escrow Agent on behalf of Company and EMed shall reinstate EMed in the State of Nevada including appoint a resident agent in the State of Nevada.

 

2.           Appoint of new Transfer Agent.

 

Prior to the Closing Date, Escrow Agent on behalf of Company and EMed shall appoint Standard Registrar & Transfer Company, Inc. of Draper, Utah as the new transfer agent of EMed.

 

 

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               3.           Amend the Articles of Incorporation of EMed.

 

Prior to the Closing Date, Escrow Agent on behalf of Company and EMed shall amend its Articles of Incorporation by approving:

 

3.1           Ten to One (10:1) reverse split of all existing Shareholders.

 

3.2           Increase the authorized common shares from Fifty (50,000,000) million to Two Hundred (200,000,000) million.

 

3.3           Change the name of EMed to Acem Holdings, Inc.

 

4.           Spinoff of all existing businesses.

 

EMed shall spinoff its subsidiary E Med Sub, Inc. a Nevada corporation and any and all other existing assets and operations of EMed prior to or immediately after closing.

 

5.           Settle other existing debts.

 

Prior to the Closing Date, Escrow Agent on behalf of Company and EMed shall negotiate and settle all other existing debts of EMed for newly issued shares of EMed whereby at closing no more than Six Million (6,000,000) common shares post ten to one reverse split are issued and outstanding to all shareholders other than Sellers.

 

6.           Corporate Action.

 

Prior to the Closing Date, the Shareholders and Board of Directors of the EMed shall have duly adopted resolutions to the same effect with respect to the aforesaid matters.

 

7.           Directors and Executive Officers.

 

At Closing, Donald Sullivan and Ron Alexander shall resign, and Frans van Rijn shall be elected to the Board of Directors and serve as its Chief Executive Officer and Richard Fokker shall be elected to the Board of Directors and serve as its Chief Financial Officer.

 

F.           CLOSING

 

The closing under this Agreement (the "Closing") and all deliveries hereunder shall take place at the office of the SEC Attorneys, Two Corporate Drive, Suite 234, Shelton, CT 06484, on December 31, 2011 or such other date as shall be agreed upon by all the parties ("the Closing date").

 

 

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G.           POST CLOSING PROVSIONS

 

After Closing in accordance with Paragraph F above, Lexicon will do the following:

 

1.           Audits.

 

After closing EMed will engage an auditor to complete the audit of EMed for December 31, 2008, the reviews for March 31, 2009, June 30, 2009, and September 30, 2009, the audit for December 31, 2009, the reviews for March 31, 2010, June 30, 2010, and September 30, 2010, the audit for December 31, 2010, the reviews for March 31, 2011, June 30, 2011, and September 30, 2011, and the audit for December 31, 2011.

 

2.           SEC Filings.

 

After closing EMed will prepare and file the Form 8-K notifying the Sec of the completion of the acquisition and file upon the completion of the required financial statements by its auditors the Form 10-K for December 31, 2008, the Forms 10-Q for March 31, 2009, June 30, 2009, and September 30, 2009, the Form 10-K for December 31, 2009, the Form 10-Q for March 31, 2010, June 30, 2010, and September 30, 2010, the Form 10-K for December 31, 2010, the Form 10-Q for March 31, 2011, June 30, 2011, and September 30, 2011, and the Form 10-Q for December 31, 2011.

 

3.           FINRA Filings.

 

After closing EMed will obtain a new Symbol from FINRA, EMed shall file a Form 15c-211 to become trading on the OTC Bulletin Board.

 

G.           GENERAL PROVISIONS

 

1.           Survival of Representations, Warranties and Covenants.

 

Unless otherwise expressly provided herein, the representations, warranties, covenants, indemnities and other agreements herein contained shall be deemed to be continuing and shall survive the consummation of the transactions contemplated by this Agreement.

 

2.           Diligence.

 

The parties hereto agree that each shall with reasonable diligence proceed to take all action which may be reasonably required to consummate the transaction herein contemplated.

 

 

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3.           Waivers.

 

Each party hereto may:

 

3.1           Extend the time for performance of any of the obligations of the other party;

 

3.2           Waive in writing any inaccuracies in representations and warranties made to it contained in this Agreement or any schedule hereto or any certificate or certificates delivered by any of the other parties pursuant to this Agreement; and

 

3.3           Waive in writing the failure of performance of any of the agreements, covenants, obligations or conditions of the other parties herein set forth, or alternatively terminate this Agreement for such failure.

 

4.           Non-Waiver.

 

The waiver by any party hereto of any breach, default, inaccuracy or failure by another party with respect to any provision in this Agreement or any schedule hereto shall not operate or be construed as a waiver of any other provision thereof or of any subsequent breach thereof.

 

5.           Further Assurances.

 

Each party hereto agrees to execute such further documents or instruments, requested by the other party, as may be reasonably necessary or desirable to effect the purposes of this Agreement and to carry out its provisions, at the expense of the party requesting the same.

 

6.           Entire Agreement.

 

This Agreement constitutes a complete statement of all the arrangements, understandings and agreements between the parties, and all prior memoranda and oral understandings with respect thereto are merged in this Agreement. There are no representations, warranties, covenants, conditions or other agreements among the parties except as herein specifically set forth, and none of the parties hereto shall rely on any statement by or on behalf of the other parties which is not contained in this Agreement.

 

 

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7.           Governing Law.

 

Irrespective of the place of execution or performance of this Agreement, it shall be governed by and construed in accordance with the laws of the State of Nevada applicable to contracts made and to be performed in the State of Nevada, and cannot be changed, modified, amended or terminated except in writing, signed by the parties hereto.

 

8.           Benefit and Assignability.

 

This Agreement shall bind and inure to the benefit of the parties hereto and their respective legal representatives, successors and assigns, provided, however, that this Agreement cannot be assigned by any party except by or with the written consent of the others.  Nothing herein expressed or implied is intended or shall be construed to confer upon or to give any person, firm or corporation other than the parties hereto and their respective legal representatives, successors and assigns any rights or benefits under or by reason of this Agreement.

 

9.           Approval of Counsel.

 

The form of all legal proceedings and of all papers and documents used or delivered hereunder, shall be subject to the approval of counsels to EMed, ompany and Sellers.

 

10.           Costs.

 

Company shall bear the costs and expenses of the transaction.

 

11.           Counterparts.

 

This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement.

 

12.           Notices.

 

Any notices and other communications under this Agreement shall be in writing and shall be considered given if delivered personally or mailed by certified mail to the party, for whom such notice is intended, at the address indicated below (or at such other address as such party may specify by notice to the other parties hereto).

 

 

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Sellers:

Siyar Holding AG

Oberneuhofstrasse 6

6340 BAAR, Switzerland

Officer: M.C. Fokker

Pure Earth Holdings LTD

Andrea Araouzou 38

4th floor, Flat/Office 401

1076, Nicosia Cyprus

Officer: Monterey Exec. LTD

Total invest international BV

lange stammerdijk 31

1109 BL Amsterdam

Netherlands

Officer: J.M. Erkelens

Wistals Investmens Group AG

Oberneuhofstrasse 6

6340 BAAR

Switzerland

Officer: E.B.H.G. Meijers

Vela Heleen Holding GMBH

Oberneuhofstrasse 6

6340 BAAR

Switzerland

Officer: M.C. Fokker

A van Buuren

lange stammerdijk 31

1109 BL Amsterdam

Netherlands

Sec Attorney, LLC

2 Corporate Drive, Suite 234

Shelton, CT 06484

Member: Jerry Gruenbaum, Esq.

EMed:

E Med Future, Inc.

208 North Clay Street

Millersburgh, Ohio 44654

Attn; Don Sullivan

 

 

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13.           Headings.

 

The headings in this Agreement are intended solely for convenience of reference and shall be given no effect in the construction or interpretation of this Agreement.

 

14.           Further Action.

 

Any further action required or permitted to be taken under this Agreement, including giving notices, executing documents, waiving conditions, and agreeing to amendments or modifications, may be taken on behalf of a party by its Board of Directors, its President or any other person designated by its Board of Directors, and when so taken shall be deemed the action of such party.

 

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

 

E MED

E Med Future, Inc.

By: /s/Donald Sullivan___________________

Donald Sullivan, Chief Executive Officer,

Chief Financial Officer & Director

SELLERS

Siyar Holding AG

By: /s/M.C. Fokker______________________

M.C. (Richard) Fokker, Managing Director

Pure Earth Holdings LTD

By: /s/Monterey Exec_____________________

Monterey Exec. LTD

Total invest international BV

By: /s/J/M. Erkelens______________________

J.M. Erkelens

 

 

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Wistals Investments Group AG

By: /s/E.B.H.G. Meijers____________________

E.B.H.G. Meijers

Vela Heleen Holding GMBH

By: /s/M.C. Fokker_______________________

M.C. (Richard) Fokker

 

_/s/J.M. Erkelens________________________

A van Buuren

Signed by J.M. Erkelens by power of Attorney

Sec Attorneys, LLC

By:_/s/Jerry Gruenbaum____________________

Jerry Gruenbaum, Esq.

The Company

ACEM Madencihlik LTD

By:_/s/M.C. Fokker________________________

M. C. (Richard) Fokker, Managing Director

ESCROW AGENT

By:_/s/Jerry Gruenbaum_____________________

Jerry Gruenbaum, Esquire

 

 

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Exhibit A

Schedule of Company shareholders

 

	 Shareholder	 	EMed Shares	 
	 	 	 	 
	 Siyar Holding AG                                                                            	 	 	59,000,000	 
	 	 	 	 	 
	Pure Earth Holdings LTD                                                                            	 	 	14,750,000	 
	 	 	 	 	 
	Total invest International BV	 	 	14,750,000	 
	 	 	 	 	 
	Wistals Investments Group AG                                                                            	 	 	14,750,000	 
	 	 	 	 	 
	Vela Heleen Holding GMBH	 	 	14,750,000	 
	 	 	 	 	 
	A van Buuren                                                                             	 	 	1,000,000	 
	 	 	 	 	 
	Sec Attorneys, LLC                                                                             	 	 	1,000,000	 
	 	 	 	 	 
	 	 	 	 	 
	Total	 	 	120,000,000	 
	 	 	 	 	 

 

 

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Exhibit B

E MED FUTURE, INC.

 

	Business Entity Information	 	 	 
	 Status:	 Revoked	 File Date:	 3/14/1990
	 Type:	 Domestic Corporation	 Entity Number:	 C2197-1990
	 Qualifying State:	 NV	 List of Officers Due:	 3/31/2008
	 Managed By:	 	 Expiration Date:	 
	 NV Business ID:	 NV19901015007	 Business License Exp:	 

 

 

	 Registered Agent Information	 	 	 
	 Name:	 NEVADA CORPORATE SERVICES, INC.	 Address 1:	 8883 WEST FLAMINGO ROAD, SUITE 102
	 Address 2:	 	 City:	 LAS VEGAS
	 State:	 NV	 Zip Code:	 89147
	 Phone:	 	 Fax:	 
	 Mailing Address 1:	 	 Mailing Address 2:	 
	 Mailing City:	 	 Mailing State:	 
	 Mailing Zip Code:	 	 	 
	 Agent Type:	 Noncommercial Registered Agent	 	 
	 View all business entities under this registered agent	 	 	 

 

 

	 Financial Information	 	 	 
	 No Par Share Count:	 0	 Capital Amount:	 $50,000.00
	 Par Share Count:	 50,000,000.00	 Par Share Value:	 $0.001

 

 

	 Officers	 	 	 Include Inactive Officers
	 	 	 	 
	 Director -	 RONALD ALEXANDER	 	 
	 Address1:	 	 Address 2:	 
	 City:	 	 State:	 OH
	 Zip Code:	 	 Country:	 
	 Status:	 	 Email:	 
	 	 	 	 
	 Secretary -	 RONALD ALEXANDER	 	 
	 Address1:	 	 Address 2:	 
	 City:	 	 State:	 OH
	 Zip Code:	 	 Country:	 
	 Status:	 	 Email:	 
	 	 	 	 
	 Treasurer - 	 DONALD SULLIVAN	 	 

	 Address 1:	 34 SOUTH CLAY ST	 Address 2:	 
	 City:	 MILLERSBURG	 State:	 OH
	 Zip Code:	 44654	 Country:	 
	 Status:	 Active	 Email:	 
	 	 	 	 
	 President - 	 DONALD SULLIVAN	 	 
	 Address 1:	 34 SOUTH CLAY ST	 Address 2:	 
	 City:	 MILLERSBURG	 State:	 OH
	 Zip Code	 44654	 Country:	 
	 Status:	 Active	 Email:	 

 

 

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Exhibit C

Liabilities

 

 

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	 EMCP AG	 

 

 

Expert assessment of the manganese deposit

 

„Azikan/Jazibasi No. 200807985“

 

 

 

Zurich, October 2011

 

 

EMCP AG, Geigergasse 6, CH-8001 Zurich, Switzerland

 

 

 

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	 EMCP AG	 

 

 

Table of contents

1              Introduction

2              Analysis of the mining law situation

2.1              License to explore the field of raw materials

2.2              Location of the authorization field

3              Geological - mineralogical assessment

3 1              Deposit analysis

3 2              Mineralogical and geochemical characterization

4              Estimation of the deposit contents

5              Economic mining assessment of the exploration expenses for the first 12 years

5.1              Assessment of workability

5.2              Required removal of ore

5.3              Storage and quality assurance of the ore

5.4              Economic mining considerations

5.4.1              Anticipated mining revenues

5.4.2              Anticipated mining costs

5.4.2.1              Production Costs

5.4.2.2              Overhead costs

5.4.2.3              Extraordinary expenses

5.4.2.3.1  Depreciation cost of technical equipment (technical costs)

5.4.2.3.2  Amortization of the deposit-related and setup costs

5.4.2.3.3  Remediation provisions

5.4.3.              Financing of the company

5.4.4              Mining income

6              Determination of the cash value of the deposit

7              Recommendations for further deposit processing

8              Annex directory

 

 

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	 EMCP AG	 

 

1.   Introduction

Turkish company ACEM MADENCIHLIK LTD. (hereinafter “ACEM”) acquired from the Turkish state authorities a surface of 490 ha authorized for the exploration of raw materials at the location of Adiyaman - Merkez - Azikan (Yazibasi). This investigation surface obviously contains manganese stocks that the company ACEM would like to exploit.

For the preparation of the mining permit and to substantiate the basic decision how to carry out the exploration, company EMCP AG in Zurich, Switzerland, was commissioned to complete the first thorough investigation of this deposit with the following duties:

 

1. Analysis of the mining law situation

 

2. Geological surface assessment

 

3. Mineralogical investigation of bed samples

 

4. Evaluation of the deposit contents

 

5. Economic mining assessment of the first 12 years

 

6. Estimation of the cash value of the deposit

 

7. Statement about recommendations for the future deposit processing

EMCP AG started on this project in the middle of August, 2011 and completes the order with the presentation of this expert assessment.

2. Analysis of the mining law situation

2.1 Authorized field for the exploration of raw materials

Field with the registration number 3189304, mapped by the MAGGOTS ISLERI GENELMÜDÜRLÜGÜ in 1963, includes a surface of 490 ha licensed for the exploration of raw materials.

This surface lies in the district Adiyaman, in the county of Merkez, in the north of the village Azikan (Yazibasi) and has the approval number 200807985. This 5-year exploration permit was issued on August 15, 2008, and expires on August 15, 2013 (see Annexes 1 and 2).

During this period ACEM is authorized to carry out all operations connected with the exploration of raw materials, i.e. geological investigations, sampling of raw materials for laboratory analyses, mirror investigations with a bagger, exploration drillings, electromagnetic measurements, and mine surveyor measurements. A special permit from Turkish authorities is required to fly over and carry out airborne measurements.

Before the investigation permit expires ACEM has the option to request an extension of the exploration permit, or to apply for a new exploration permit for a smaller surface area and for a mining permit for the deposits found in this area.

2.2 Location of the field included in the exploration permit

The deposit is located in a mountainous area accessible via a paved road from Adiyaman to

 

Azikan / Yazibasi and from there via a mountain trail (see Annexes 3 and 4).

The permit area lies between 1’700 m and 1’990 m above sea level NN in non-forested mountainous terrain with a scree horizon characterized by very slight plant coverage and animal presence. There are very few trails in the area and during  the winter months (December through April) difficult to reach.L

 

 

 

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	 EMCP AG	 

 

The area has adequate water resources in many places and is not subjected to neighborly influences or constraints. In the next few years no restrictions related to immissions and emissions-are to be expected or feared. Neither noise nor technique-related emissions nor hydrological and ecological considerations are expected to be an obstacle to mining operations.

3. Geological and mineralogical assessment

3.1 Deposit analysis

The deposit is a classic mountain slope deposit, on the surface of which minerals are visible, probably originating from lenses. The deposit is still undisturbed.

A detailed statement regarding the underground and the ore expansions depends on the results of future supportive mirror investigations and exploratory drillings.

The deposit was examined by EMCP AG on three different dates, the GPS coordinates of

 

sites of mineral finds were mapped, handpieces collected, and composite samples prepared for further laboratory investigations. The location of those sites within the limits of the authorization field is documented in Annex 5. Representatives of ACEM were present during all three surveys (see photos in Annex 6).

The size of the deposit was mapped based on optically recognizable expansions of raw materials deposits and the expansion verified and calculated using a CAD system (see Annex 7).

The minerals found are mountain-integrated manganese ores and in one find iron ores.

These rocks and ore samples were geochemically assessed as a mixture consisting primarily of silicates associated with carbonates, showing clear signs of hydrothermal-metasomatic overprint. The high ratios of Si/Al and Mn/Fe and the average non-ferrous metal values correspond to the occurrences of hydrothermal manganese deposits from Cayirli [Öztürk, 1997]. The deposits are likely to include multiple lens-like ore bodies of small size with a depth difficult to estimate, which formed in hydrothermal discharge and circulation areas. Consequently there is a high risk premium associated with the determination of the deposit content.

 

In 1997 Öztürk classified the Anatolian hydrothermal manganese deposits as hydrogenetic and rare diagenetic manganese deposits. They come in the form of lenses and smaller ore deposits in ophiolite melanges of suture girdles and are usually associated with radiolarian pebble rocks. This description corresponds with the picture emerging for the deposits analyzed here.

3.2 Mineralogical and geochemical characterization

The samples of the manganese ore consist of half-metallic, dark gray, fine-veined, matted masses with minor amounts of bright veinstuff (whitish to pinkish-brownish). The samples were oxidic manganese ores, which occur irregularly, but often fissure-bound and with siliceous veinstuff (quartz-chalcedony-Hornstein), coalesced with sulphate (barite) and carbonate (calcite) [see Report no. 11 013 by Erz und Stein].

The average densities ranged from 3.7 to 3.9 (see Annex 8).

The determination of the manganese content showed ore grades between 38 and 72 %, with an iron content between 0.04 and 0.58 % (see Annexes 9 and 10).

 

 

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	 EMCP AG	 

 

Only sample no. 11 from the lower part of the deposit sub-area D (see Annexes 7 and 10) has low manganese levels, but an iron content of 64%. This phenomenon should be examined again during a further geological exploration and confirmed.

The XRD patterns of the ore samples for the material flow analysis (Annex 11) and the ore samples analyzed in mixture with aqua regia and as molten salts (see Annex 12) revealed higher levels of Ba, Ca and Si. The intrinsic contents of the deposit <re 2.6 % for Ba, 0.7% for Va, as well as other trace minerals and nonferrous metals of potential interest. These values await confirmation with further in-depth analyses in order to determine exploitation potentials. The low phosphorus content observed in all samples will have a positive impact on

 

the future exploitation of the ores.

The manganese ore samples reported here can be characterized as well suited for

 

metallurgical uses. An average grade of over 40 % and a density of 3.75 g/cc can be assumed.

4. The estimation of the reservoir contents

Based on the sites of finds depicted in Annexes 5 and 7 the deposit was divided into areas (see Annex 13) and the ore content in each area was determined. The multiplication of the surface area with the apparent power of the visible portion of the expansion in height/depth yielded

 

the volume of ore-enriched raw materials in the rock mass. Based on the geological- mineralogical analysis and on comparison with other Anatolian occurrences of manganese deposits the calculation of contents for the estimated ore volume was corrected with a 90 % risk deduction. Multiplication by the average density value of 3.75 g/cc yields the estimated quantity of ore expected in the subfields A through D and of the entire field (see Annex 7):

 

- Sub-area A1                                     432.0 Tt

 

- Sub-area B                                  1’606.5 Tt

 

- Sub-area C                                  8’550.0 Tt

 

- Part D area                                  2’246.4 Tt

 

- Total field                                12’834.9 Tt.

 

Based on an annual production of 60 Tt this corresponds to a duration of operation of around 214 years.

5.  Economic evaluation of the exploration expenses for the first 12 years

5.1 Assessment of workability

For the future economic mining model EMCP AG started from an assumption for the average monthly production of 5’000 t per month, i.e. 60,000 tons per year.

The hillside situation of the deposit allows open pit mining (see Annexes 3 and 13).

The minig waste to ore relationship was estimated to be 3:1. Therefore, the resulting required device configuration has to be laid out for a total yearly volume of 100’000-120’000 m3 (mining waste and ore) (Annex 14)

The preparatory work for the mining operations requires expansion of the route from the mine to the nearest paved road (about 8 km length) and of the road to Yasibasi (length 5.7 km) (Annexes 15 and 16).

 

 

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	 EMCP AG	 

 

5.2 Required removal of ore

The transport of the extracted ore by truck requires the expansion of routes to the paved road and from there to the location of storage, entry of quantities, and delivery (EXW site).

Ore trading will be carried out from there, either with container-trucks or by rail for shipment to Mersin and Iskenderun (FOB locations). The transport of the ore requires:

- 10 truck loads of 23 tonnes each on 22 working days per month.

To determine the freight routes the location of paved roads and of mining roads was investigated. The nearest railway stations are either in Gölbasi or in Dogansehir.

The transport route from the mine to Yasibasi (5.7 km-distance offroad), then to Adiyaman (distance 28.4 km on paved road) and then to Gölbasi (distance 63 km on paved road) is 97.1 km long (see Annexes 15, 16 and 17).

 

The transport route from the mine to Sarikaya (8.0 km-distance offroad), thento Dogansehir (distance 37 km on paved road) is 45 km long. Here the 8 km offroad portion has to be expanded to a mining road (see Annex 15, 16 and 18).

The transport route from the mine to Uzunköy (6.4 km-distance offroad), then to Dogansehir (distance 35.3 km on paved road) is 41.7 km long. Here there are only 6.4 km offroad to expand to a mining road (see Annexes 15, 16 and 19).

It is advisable to expand the transport route via Uzunköy to Dogansehir and to transport the ore to the storage location there by container trucks.

 

The length of the road transport from Adiyaman to Mersin amounts to 437 km, the one from Dogansehir to Mersin 425 km, and toe one from Gölbasi to Mersin 359 km. Although the roads are suitable for those transports and enough gas stations can be found along the way, the high fuel prices clearly favor railway transport.

5.3 Storage and quality assurance of the ore

The situation in the Iskenderun port only allows for storage and shipment of bulk ore, while the port in Mersin offers a container-based ship-loading facility. Due to the high storage costs and the low storage security on the one hand, and due to the requirement to deliver to customers a guaranteed ore quality, on the other hand, it is essential to set up a controlled and monitored storage location.

Therefore, ACEM rented a separate stockpile in Dogansehir, near the railway loading station, can be rented, where the ore quality can be checked and the different qualities sorted and, after review by an independent, internationally accredited ore examiner, loaded in containers, sealed, and conveyed.

 

This site is to be enclosed within a security fence, equipped with a central monitoring system and video cameras, and supervised by security personnel (two persons, 3 shifts per day).

In addition to a chemist and laboratory, the facility must be manned with two warehouse workers and a logistician. The operations require a container crane, a wheel loader with high- performance blade and balance system, a shunting truck, a basic set of containers and a truck scale at the entrance.

Furthermore, a computer network for the sales of ore and for inventory monitoring, and a laboratory for qualitative ore analyses are required (see Annexes 14, 20 and 21).

 

 

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	 EMCP AG	 

 

In the storage area it would make sense to set up the sales division and the central laboratory, both of them including staff.

5.4 Economic mining considerations

5.4.1 Anticipated mining revenues

During the first year the following steps will be carried out: (i) completion of the mining plan, (ii) acquisition of mining rights for at least 20 years, (iii) road building to an from the deposit location, (iv) preparation of the company grounds, and then (v) disposal of the waste materials from the ore extraction.

Since these operations will require about 6 months, the annual output of the first year was calculated with 30’000 tons of ore.

During the second year, the annual output was calculated with 45’000 tonnes of ore, taking into account a 3-month tailings disposal period, chiefly during winter time. The full planned annual production of 60’000 tonnes will be reached during the third year of production and remain at this level the following years.

The price of manganese ore is not yet traded on international markets. The current customers/ clients are mainly the processing and smelting works, and prices are subject to case-by-case negotiations.

As experience has shown, ore prices correspond to approximately 25 to 30 % of the goods prices and last year’s price of bullion ferromanganese amounted to about 1’050 to 1’100  €/t (see Annex 22). Therefore, with 45% Mn content, ore prices from 260, €/t can be assumed. Based on those figures for price and volume, revenue expectations for 12 years were calculated (see Annex 22).

5.4.2 Anticipated mining costs

The revenue situation was confronted with the costs for a concession period of 12 years

 

(Annex 23).

The costs were divided into three cost groups: "production costs", "overhead costs" and "extraordinary expenses". This assignment was made from the perspective of cost efficiency and not from a business economic perspective.

Considerations about the influence of price increases due to inflation and of increases of wage costs were left aside in this assessment, in view of the fact that shortages on ore markets in the near future will drive ore prices upwards. In a period of unstable markets, future prices of commodities can no longer be derived from tendencies in the past.

5.4.2.1 Production Costs

The production costs include:

 

- The costs of transporting waste, amounting to 12 €/m3, including dredging costs of € 2.50

 

€/m3, 4,50 €/m3 crushing jobs, € 2.50 €/3mfor bulldozer works and 2.50 €/m3 for mass transportation.

 

	
  

	
- The fuel costs for 8 extraction devices at a diesel price per liter between 1.80 € and 2.20 € (current Turkish market prices).

 

- Personnel costs, which are listed in Annex 20. The monthly wages and salaries, based on the

 

Turkish market prices which include pension and health insurance costs as a surcharge of

 

 

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20 %. A wage increase over the years was not taken into account for the reasons mentioned above.

 

	
  

	
- The production costs also include the annual mining rate, which is to pay to the former owners and to the government for the mining rights and their renewal. These costs were included as rent deposit, valued at € 5,000 per motnh.

 

- Repair and maintenance costs, which were set at 2 % of annual profit.

 

	
  

	
- The surveillance and security costs, which were valued at 6’000 € per month, including all the security measures during transportation from the mine to the port and monitoring of safe shipments.

 

	
  

	
- Costs of quality control by certification bodies to ensure that customer requirements are met, at 8,000 € per month including costs of external lbaoratories. The internal laboratory costs are included in the personnel costs (see Annex 20) and in the investment costs, respectively (see Annex 14). The costs of the ore storage location (rental and maintenance) are included in the production costs (see Annex 23) and in the third-party costs, respectively (see Annex 21).

 

	
  

	
- The transport costs of Adiyaman to Mersin by truck currently amount to 28 €/t, and are roughly equivalent to those from Doganzehir to Mersin. Container loading by the Turkish State Railways, or negotiating with local logistics companies will lead to savings, because currently many empty trips to Mersin take place to carry the goods from the port into the country. To add to this price are the transport costs come from the mine to the storage location. Overall, transportation costs were calculated with 50 €/t FOB.

 

	
  

	
- Insurance costs, as the sum of all insurance costs, including those to insure the value of goods, were valued at € 10,000 per month.

 

	
  

	
- Freight charges, including fuel and costs for car insurance were calculated for the imputed vehicle fleet of 3 pickup and 2 Jeep, at € 5’250 pre month.

 

- Port storage costs and handling fees in Mersin, at 8 €/t.

5.4.2.2 Overhead costs

 

To be added to this cost group are (see Annexes 21 and 23:

 

- Office expenses

 

- Auditing and accounting costs

 

- Contractors costs

 

- Travel expenses

 

Remark: As ACEM representatives pointed out that they would hand over the extraction operations and also the transport operations to the storage location in Dogansehir to one mining contractor, were the corresponding contractors and travel costs included in Annex 23, together with travel expenses of ACEM.

5.4.2.3 Extraordinary expenses

The group of “Extraordinary expenses” include the following three types of costs:

5.4.2.3.1 Depreciation costs of technical equipment (technical costs)

The depreciation of machinery inventory was made according to Central European standards, although international depreciation calculations assume a longer service life. The former method of calculation was selected to conform to a conservative approach and to ensure faster capital repayment.

 

 

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Amortization of the deposit-related and setup costs

Economic mining rules hold the amortization of a deposit to be one of the key duties of planning mining provisions. Other provisions include those for reclamation and for restoration

/ rehabilitation of mining sites.

While in ordinary business processes factory buildings and workshops can be reused after stopping one line of production, operations in the mining business definitively stop after all

 

the raw materials were extracted. Therefore, provisions must be accrued during the lifetime of a mining deposit to enable the purchase of a new deposit, ideally as a reserve deposit even during the lifetime of the first deposit.

The acquisition of the ACEM deposit, due to its size and ore contents, was booked with a purchase price of € 1 million with an amortizationtime of more than 25 years (in line with standard mining calculations).

Setup costs include those for the construction of mining roads required to reach the pit area, for the preparation/organization of the mine shape, and the initial costs of the mining plan.

Construction of mining roads was budgeted with 35,000 €/km of new track, i.e. a total of €

 

500,000 for the project, with depreciation over 3 years. In later years the road maintenance costs were included in the ongoing maintenance costs.

The cut of the mine shape with mine tailings and the removal of the overburden was estimated at 500 T€ (about 27’000 m3), with amortization over5 years.

Mining planning, in contrast to regular business processes, is a process which monitors not only the usual forward planning, but also accompanies the permanently control of this plan in the operational process according to current legal regulations. This control regarding

operating plans and future “recultivation” has to extend over the term of the deposit’s lifetime

 

to include reclamation and rehabilitation of the site. This multi-layered "continuous planning" process has to be submitted at the beginning of mining operations and the ensuing costs were therefore included in setup costs. This complex planning is estimated at about 8% of the total investment and was calculated here with 400’000 € nad amortization over 10 years.

5.4.2.3.3 Remediation provisions

Remediation provisions are a legal obligation in all modern countries with a mining industry. They are used to restore mining sites to become reusable and reintegrated into the landscape as natural environments.

In this project they were calculated at 1.5 % of annual revenues and are an essential pillar of the community provision, when the flow of revenues stops at the end of the mining

 

operations, but landscape restoration work starts on a large scale and must be paid for. Since a mining company can go into bankruptcy for a variety of reasons, these provisions have to be accrued from the beginning and kept in separate custody. In an insolvency case they are transferred to the company liquidator, who has to keep the remediation process going on and cannot use the money as part of the bankruptcy assets. If mining operations continue under a different company, then this money has to be transferred into their remediation provisions. In Germany, for example, the federal mining law takes that course and also identifies the managing director of the company as the person responsible for the provisions, even after he has left the company.

 

 

 

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5.4.3. Financing of the company

Since the client is a company with multiple shareholders, and investments (see Annex 14) must be financed by borrowed capital, it was assumed that the investments, after a first, debt service- exempt year, will be repaid over 11 years in equal installments. It was also assumed that an annual interest of 8 % be levied on the borrowed capital remaining in the company and paid to the lender.

 

5.4.4 Mining income

With an annual production of 60’000 tons and taking into account the assumptions mentioned above, yearly mining income is expected to range between 3.9 and 4.7 million € before tax and cash flow between 5.0 and 5.3 million € (see Anex 23).

With an assumed tax rate of 25.0 % a net profit from 2.9 to 3.5 million € / year after taxes and an internal cash flow from 4.0 to 4.1 million € / eyar can be inferred (see Annex 23).

Calculation of the investment payback period based on the profit after tax gives 39 months, or 30 months based on cash flow (see Annex 23).

 

6. The determination of the cash value of the deposit

The evaluation of the deposit, based on the present moment, depends on the maturity of the deposit (the availability of the ore) and the respective annual returns achievable from the mining business. In order to assess today future payments, it is necessary to apply discounting of the future payments at the time they are due.

Offsetting the sum of all annually discounted earnings against all annually discounted expenses determines the annual revenues, the sum of which consitutes the cash value of a deposit.

In the present case the term of the deposit at 60 Tt annual production is about 214 years. Assuming a current discount rate of 5.5 % per year, then the imputed income, as well as the imputed costs are to be discounted until the time of their future occurrence, either until the deposit is exhausted, or until the discounting produces values so low that they become meanigless.

In the present case (see Annex 24) the deposit was discounted over 90 years, assuming a recurring forward projection as from the 11th to the 12th year of the economic mining calculation as described under 5.4 (see Annex 23).

The result is a deposit value of 94.8 Mio. €.

On the basis of this result it becomes clear that a reasonable deposit amortization should end after the 40th year, as the cash value of the deposit has already reached € 83.1 Mio. Both the future price trends for sales and for costs are unknowns which do not permit to issue a more detailed and meaningful prediction.

7. Recommendations for further deposit processing

On the basis of geological and mineralogical studies, the deposit consists of manganese ore with about 40 % manganese, at a density of about 3.75 g/cc.

The estimated content of the deposite will be 12.83 million tons manganese ore after correction. With an annual production of 60’000 T, the lifetime reaches ca. 214 years. It is

 

 

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already now advisable, after reaching a stable annual production of 60’000 t ore, to increase the production and purchase additional extraction devices.

The total investment required for the exploitation of the deposit at an annual production of 60’000 t amounts to 5.4 million €, of which 3.0 million € for technical investments, 500’000 € for road construction, 500’000 € for the mine fac ilty and 400,000 € for the accompanying mine planning, as well as a deposit price of 1 million €.

It is proposed to construct a storage facility in Dogansehir at the train station and to transport the ore from the mine to Uzunköy.

In the vicinity of this deposit there are reserve fields of manganese and iron fields, which are calculated in Annex 25 and depicted in Annex 26. It is recommended to take a closer look at those reserve fields, to request an exploration permit or a sign joint-use contract, and if necessary to secure those fields for mining.

The strategic demand for manganese ore for the high-grade finishing of steels and alloys is expected to increase. Therefore, the results of this first study support a continuation of the mining operations.

The next recommended steps include an in-depth exploration using mirror investigations with a bagger, electromagnetic measurements of the field areas, and exploratory drillings.

The present results underscore that an extensive mine survey of the mapped areas should be carried out, followed by the generation of a geologic mining model of the deposit.

In parallel a mining permit for the first area should be requested.

It is also recommended to start preparing for ore trading after establishing a storage location in Dogansehir. Independently from the mining operations, but in addition to them, ore trading through purchases from other producers should be developed.

 

 

 

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8. Table of Annexes

Annex 1 copy of the award certificate

Annex 2 Location of the approval field in the region Annex 3 Grants field position in the mountains Annex 4 Accessibility of the authorization field Annex 5 Exploration field sample locations

 

Annex 6 Photo documentation with samples taken

Annex 7 Table coordinates with the deposit

Annex 8 Density determinations of UVR-FIA Institute, Freiberg

Annex 9 Determination of the Mn - content from 06.07.2011; Inst Eurofins, Freiberg Annex 10 Determination of the Mn - content from 29.09.2011; Inst Eurofins, Freiberg Annex 11 X-ray diffraction determination; 11 013, UVR-FIA Freiberg

 

Annex 12 Mn ore analysis using aqua regia; 11105920.4.1; UVR-FIA Freiberg

Annex 13 Presentation of the ore - part of the deposit areas

Annex 14 List of extraction machines needed Annex 15 Table of distances for the ore transports Annex 16 Transport route from the mine

 

Annex 17 Transport route from Adiyaman to Gölbasi Annex 18 Transport route from Sarikan to Dogansehir Annex 19 Transport route  fromUzunköy to Dogansehir Annex 20 Table with personnel costs

 

Annex 21 Table of costs for special services and third party services

Annex 22 Table of the ferro-manganese prices from 2010 to 2011

Annex 23 Table of revenue and cost calculation for the first 12 years of operation

Annex 24 Cash value calculation of the deposit

Annex 25 Calculation of areas and contents of the reserve areas

Annex 26 Presentation of the reserve areas

 

 

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IN THE COURT OF COMMON PLEAS

FOR FRANLIN COUNTY, OHIO

 

	COMPLETE INVESTMENT                                                                	 :	 
	  MANAGEMENT, LTD                                                                	 :	 
	 	 :	 
	 Plaintiff, 	 :	   Case No. 06 CV 010019
	 	 :	 
	 v.	 :	 
	 	 :	 
	 EMED FUTURE, INC., et al,  	 :	 Judge Frye
	 	 :	 
	 Defendants.	 :	 

 

SETTLEMENT AGREEMENT AND RELEASE

THIS SETTLEMENT AGREEMENT AND RELEASE ("Settlement Agreement'') is entered into between the Plaintiff, and E Med Future, Inc., one of the above Defendants (hereinafter "EMed'').

RECITALS

	
A.  

	
On or about August 6, 2006, Plaintiff filed the above titled action against the Defendants seeking the appointment of a receiver and the repayment of a loan made by the Plaintiff to the Defendant in the amount of $548,000.

	
B.  

	
Plaintiff obtained a judgment against Kenneth A. Jackson d/b/a PR Market Research, one of the Defendants for $381,339.

	
C.  

	
On November 22, 2006 Martin Management Services, Inc. was appointed as receiver for EMed (hereinafter “Receiver”).

	
D.  

	
On May 31, 2011, the Receiver filed the Receiver’s Seventh Report and Motion for Authority to Make Final Distribution and Terminate Receivership.

	
E.  

	
On June 16, 2011, the Court signed an Order Authorizing Final Distribution and Terminating Receivership.

	
F.  

	
On July 15, 2011, Plaintiff filed a Motion for Default Judgment against EMed in the amount of $612,592.88 plus 12% interest from July 1, 2006, plus the costs of this proceeding.

	
G.  

	
To date, the Court has not ruled on Plaintiff’s Motion for Default Judgment against EMed.

 

 

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H.  

	
On July 19, 2011 the above referenced case was terminated by the Court.

	
I.  

	
EMed currently has numerous liabilities and no marketable assets.

	
J.  

	
EMed as a publicly traded company stopped reporting with U.S. Securities and Exchange Commission on September 30, 2009 and is currently delinquent in its filings.

	
K.  

	
On September 2, 2011, the U.S. Securities and Exchange Commission obtained a temporary restarting order and other relief in a civil injunctive action in the United States District Court for the District of Utah against National Stock Transfer, Inc. (hereinafter “National”), its owner and its President.

	
L.  

	
National has recently been physically locked out of its office by its creditor, Woodward Capital Partners, LLC, as part of a private state court case.

	
M.  

	
National is the transfer agent for EMed, and as a consequence EMed shares are currently blocked by law from being tradable.

	
N.  

	
EMed desires to become a publicly reporting and trading company by acquiring Acem Madencihlik Ltd, a manganese mining company located in Adiyaman-Merkez-Azikan (Yazibasi), Turkey in a 95% reverse merger whereby the owners of Acem would own 95% of EMed after a 10 for 1 reverse stock split.

	
O.  

	
Plaintiff and EMed desire to enter into this Settlement Agreement in order to provide for full settlement and discharge of all claims between them upon the terms and conditions set forth herein.

AGREEMENT

The parties hereto agree as follows:

1. Release and Discharge

In consideration of EMed's agreement to issue shares in EMed and subject to EMed acquiring Acem as stated above, the Plaintiff completely releases and forever discharge EMed, of and from any and all past, present or future claims, demands, obligations, actions, causes of action, rights, damages, royalties, costs, loss of services, expenses and compensation which the Plaintiff now has, or which may hereafter accrue or otherwise be acquired by plaintiff, that is and was the subject of this action between the parties.

 

 

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2. Consideration

In consideration of the release set forth above, Defendant hereby agrees to issue to Plaintiff one million newly issued shares (1,000,000) in EMed after the above referenced 10 for 1 reverse stock split.

3. Attorneys' Fees

Each party hereto shall bear its own attorneys' fees and costs arising from the actions of its own counsel in connection with the Demand and this Settlement Agreement and incurred prior to the date of execution of the Agreement.

4. Warranty of Capacity to Execute Agreement

The Plaintiff represents and warrants that no other person or entity has or has had any interest in the claims, demands, obligations, or causes of action referred to in this Settlement Agreement, except as otherwise set forth herein, and that it has not sold, assigned, transferred, conveyed or otherwise disposed of any of the claims, demands, obligations, or causes of action referred to in this Settlement Agreement.

5. Entire Agreement and Successors in Interest

This Settlement Agreement contains the entire agreement between the Plaintiff and EMed with regard to the matters set forth herein and shall be binding upon and inure to the benefit of the executors, administrators, personal representatives, heirs, successors and assigns of each.

6. Representation of Comprehension of Document

In entering into this Settlement Agreement, the Plaintiff represents that it has relied upon the legal advice of its attorneys, who are the attorneys of its own choice and that the terms of this Settlement Agreement have been completely read and explained to it by its attorneys, and that those terms are fully understood and voluntarily accepted by it.

7. Governing Law

This Settlement Agreement shall be construed and interpreted in accordance with the laws of the State of Ohio.

8. Additional Documents

All parties agree to cooperate fully and execute any and all supplementary documents and to take all additional actions which may be necessary or appropriate to give full force and effect to the basic terms and intent of this Settlement Agreement.

 

 

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9. Effectiveness

This Settlement Agreement shall become effective on execution.

Dated: _12/6/2011_________                                                          __/s/Charles O. Mbanefo_________________

Dr. Charles O. Mbanefo

CEO of Complete Investment Management, Ltd.

Plaintiff

Dated: __12/6/211__________                                                         __/s/Don Sullivan_____________________

 Don Sullivan

CFO of E Med Futures, Inc.

Sec Attorneys, LLC

Dated: __12/6/2011_________                                                            By: _/s/Jerry Gruenbaum_________________

       Jerry Gruenbaum, Esq.

      Attorney for:

     Acem Madencihlik Ltd.

 

 

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CERTIFICATE OF SERVICE

The undersigned hereby certifies that a true and accurate copy of the foregoing Settlement Agreement and Release has been served via ordinary United States Mail, postage prepaid on this 7th day of December, 2011 upon:

Mr. Reg Martin                                                                               Barry Waller, Esquire

Martin Management Services, Inc.                                              Fry, Waller & McCann Co. LPA

180 East Broad Street, 8th Floor                                                    35 E. Livingston Ave.

Columbus, OH 43215                                                                      Columbus, OH 43215

As Receiver                                                                                      Attorney for Plaintiff

David N. Haring, Esquire                                                                Dennis R. Newman, Esquire

Brown, Bemiller, Murray,                                                                Isaac Brant Ledman & Teetor LLP

McIntyre, Vetter & Heck, LLP                                                       250 East Broad Street, Ste. 900

70 Park Avenue West                                                                     Columbus, OH 43215-3742

Mansfield, Ohio 44902                                                                   Attorney for Dane Donohue & Robert

Attorney for Jackson and Safe Medical                                                                Ochsendorf

Solutions LLC

A.C. Strip, Esquire                                                                        Aaron C. Firstenberger, Esquire

Strip, Hoppers, Lithart, McGrath                                                Strip, Hoppers, Lithart, McGrath

& Terlecky Co., L.P.A.                                                                & Terlecky Co., L.P.A.

575 South Third Street                                                                575 South Third Street

Columbus, Ohio 43215                                                                Columbus, Ohio 43215

Attorneys for Receiver                                                                Attorneys for Receiver

 

_/s/Don Sullivan_______________

Don Sullivan

E Med Future, Inc.

 

 

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RELEASE AND SETTLEMENT AGREEMENT

This  Release and  Settlement Agreement (the  "Agreement") is  made  to  be  effective January_, 2008 and entered into as of               day of January, 2008, between the following parties: (a) Martin Management Services, Inc., as court-appointed Receiver forE  Med Future, Inc., (herein "Receiver''); E Med Future, Inc. (herein collectively "E Med"); Kenneth Jackson and Safe Medical Solutions, LLC, its members, and managers, and agents individually (herein collectively "Jackson/Safe Med");

 

WHEREAS, each of the parties have made claims of rights and/or ownership to U.S. Patent No. 7,034,243 (herein "Patent"), U.S. Trademark No. 2,620,168 (herein "Trademark"), and all other intellectual property rights of a certain product called "NeedleZap"; and

 

WHEREAS, these claims have led to litigation as between the parties, including, but not limited  to,  Case  No.  06  CVH  9757,  Franklin C mnty  Court  of  Common  Pleas  involving Jackson/Safe Med and E Med (J. Brown); and Case No. 06 CVH 10019, Franklin County Court of Common Pleas (J. Frye); and

 

WHEREAS, on or about the Receiver was appointed by Judge Frye as Receiver for all the assets and rights ofE Med Future, Inc.; and

 

WHEREAS, on or about June 22, 2007, Judge Frye entered a Preliminary Injunction Order against Jackson/Safe Med, prohibiting them from holding themselves out as having rights or ownership in the Patent and Trademark or otherwise interfering with the Receiver's business while specifically allowing Jackson/Safe Med to pursue cancellation of the Trademark in the US Patent and Trademark office, and allowing Jackson/Safe Med to commercialize any NeedleZap products lawfully obtained, and

 

WHEREAS, the parties may hold certain other claims as against the other which have not been asserted in any litigation to date; and

 

 

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WHEREAS, the parties now mutually desire to settle and resolve all litigation and claims as between them, except as specifically provided for herein;

 

NOW THEREFORE,  in consideration of the foregoing and the mutual promises and covenants contained herein, it is hereby agreed between the Receiver, E Med and Jackson/Safe Med:

 

1)        Jackson/Safe Med releases, surrenders, waives, and irrevocably assigns to  the Receiver and E Med, any and all rights and claims of ownership or license each or any of them may have, or ever had, in the Patent, Trademark, and all intellectual property rights in the Needlezap product, including any other patents or trademarks of the NeedleZap product, and that said release, surrender, and waiver to be binding upon their employees, agents, heirs, successors, assigns; Notwithstanding the foregoing, Jackson/Safe Med do not surrender, waive or assign any other device invented by Jackson and/or Safe Med or which may be invented which does not infringe on the NeedleZap Patent or TradeMark referred to above.

 

2)        All Parties to this agreement shall consent to the filing of an Agreed Order of Permanent Injunctive Relief in Franklin County Court of Common Pleas Case No. 06 CVH 10019, in the form and language as set forth in Exhibit A hereto.

3)     Jackson/Safe Med agree to  take the  necessary steps to file  a  dismissal with prejudice of the certain Cancellation of Trademark action filed before the U.S. TTAB, Cancellation No. 92045999 if permitted by the Patent and Trademark office;

 

4)        Jackson/Safe Med  agree to  dismiss with prejudice Franklin County Court of Common Pleas Case No. 06 CVH 9757 (J. Brown);

5)     Except for  the  rights and obligations created or  reserved by  this  Agreement, Jackson/Safe Med, on  its/his/their own behalf,   and on behalf of  its/his/their predecessors, successors, assigns, attorneys, agents, employees, administrators, trustees, executors and heirs,

 

 

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hereby releases, discharges, remises, and forever releases and discharges the Receiver and E Med, its/his/their executors and heirs, successors, assigns, affiliates, administrators, executives, directors, officers, shareholders, employees, agents, attorneys, trustees, and predecessors, from any and all claims, demands, payments, rights, obligations, losses, judgments, awards, attorney fees, costs, interest, damages, liabilities or causes of action of any kind, whether known or unknown that Jackson/Safe Med has asserted or might have asserted in connection with, arising out of, or in any way relating directly or indirectly to the Patent, Trademark, and all intellectual  property rights in the NeedleZap  product, including  any other patents or trademarks of the NeedleZap  product, or the present litigation;

6)      Jackson/Safe  Med,  and for  its/his/their predecessors, successors, assigns, attorneys, agents, employees, administrators, trustees, executors and heirs, agree to forebear from the re-sale of  any  Needlezap  units  not  already  in  their  possession  for  a  period  of  twelve  (12)  months. Jackson/Safe   Med  shall  not  be  liable  for  the  resale  or  potential  resale  of  NeedleZap   units previously sold to its customers.

 

7)      Jackson/Safe Med agree to cooperate in permitting the Receiver's agents immediate access  to its current  inventory  of  Needlezap  product  for the  purposes  of  recording  the  serial numbers of the units for FDA compliance purposes;

 

8)     Jackson/Safe  Med agree to hereinafter  plainly and openly identify  E Med  Future, Inc., as the owner of the Patent, Trademark, and all intellectual property rights in the Needlezap product, including  any other patents or trademarks  of the Needlezap product, in any marketing, advertising,  public  relations,  contract,  or other  commercial  endeavor  they  may enter  into that refers to NeedleZap, including, but not limited to, the now existing Safe Medical website, or any website under their control, now or hereinafter;

 

 

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9)     Jackson/Safe Med, jointly and severally, and their successors and assigns, shall indemnify and hold harmless the Receiver and E Med, its/his/their successors, and assigns, as against  any  competing  claims  of  ownership  of  the  Patent, Trademark, and  all  intellectual property rights in the Needlezap product, to the extent said third-party claims flow from the prior claims of ownership made by Jackson/Safe Med and only where valid patent protection exists for the Receiver and E Med. Said indemnification shall include liability for any fees, costs, and expenses of defending or litigating in areas where valid patent protection is in effect, against said third-party claimants, and any damages incurred by, or assessed against Receiver and E Med, its successors, and assigns, as a result of such claims;

 

10)   The Receiver and E Med, jointly and severally, their successors and assigns, hereby indemnify and hold harmless Jackson/Safe Med and its/his/their members, heirs and assigns, against any claims, causes of action, suits, damages, complaints, expenses of any type including attorneys fees that arise directly or indirectly out of the Receiver and/or E Med's use or sale of the NeedleZap units and/or the Patent, Trademark, including any other patents or trademarks of the NeedleZap product, and intellectual property rights of the NeedleZap product.

 

11)   Jackson/Safe Med agree to cooperate with Receiver and E Medin executing and filing such documents relative to the issued Patent, Trademark, and all intellectual  property rights in the Needlezap product, including any other patents or trademarks of the Needlezap product, as Receiver, or its successors, may require to eliminate any question or confusion as to ownership and title to same, and to perfect title and ownership in the name of the Receiver or E Med, and/or its/his/their successors and assigns.   This shall include, but not be limited to, the procurement of authorization and signature of Dane Donohue and Robert Ochsendorf where required.

 

 

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12)   Jackson/Safe  Med   shall   retain   their   claims   and   rights   as   creditors   in   the receivership,  to the  extent  same  do  not conflict  with  provisions  of this  Agreement,  and  shall further  retain its right to receive royalties to be paid at least quarterly, on the sale ofNeedlezap units, from Receiver and E Med, its successors, or assigns, except that any royalties claimed due based upon sales ofNeedlezap units prior to the appointment  of the Receiver shall be included as general, unsecured  claims in the receivership. Jackson/Safe Med shall further retain the right to object  to  any  recommended distribution  of the  Receiver,  so  long  as  said  objection  shall  not conflict with any provision of this Agreement;

 

13)   As consideration for the foregoing,  Receiver  agrees  to dismiss  with prejudice  all claims asserted against Jackson/Safe Med within Franklin County Court of Common Pleas Case No. 06 CVH 10019 (J. Frye);

14)   Except for the rights and obligations created or reserved by this Agreement, Receiver and  E Med,  jointly and severally, on its/his/their own behalf,  and on behalf of their predecessors, successors, members, officers, directors, shareholders, assigns, attorneys, agents, employees, administrators,  trustees,  executors  and  heirs,  hereby  releases,  discharges,  remises,  and  forever releases and discharges Jackson/Safe Med, their executors and heirs, successors, assigns, affiliates, administrators, executives, members, directors, officers, shareholders, employees, agents, attorneys, trustees, and predecessors, from any and all claims, demands, payments, rights, obligations, losses, judgments, awards, attorney fees, costs, interest, damages, liabilities or causes of action of any kind, that the Receiver and/or E Med has asserted or might have asserted in the present litigation, or in the litigation currently pending before Judge Brown, being Case No. 06 CVH 9757, whether known or unknown at execution  of this Agreement, and/or arising out of or in any way related directly or

 

indirectly to the Patent, Trademark  and all intellectual property rights in the NeedleZap product, including any other patents or trademarks of the Needlezap  product,   and the marketing and sale

 

of the same, save and except  any claim that arises out of a breach of this Agreement;

 

 

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15)  Receiver further agrees that, within one hundred fifty (150) days of the date of this Agreement, it will either enter into a contract for the sale of the assets of E Med Future, Inc. including, but not limited to, the Patent, Trademark, all intellectual property rights in the NeedleZap product, any other patents or trademarks of the Needlezap product, all inventory, furniture, fixtures, equipment, other tangible assets, and contracts, of E Med Future, Inc. (the "Assets"), or hold a public sale for same, unless otherwise extended by mutual agreement, pursuant to the following provisions:

 

	
  

	
a.  Receiver may sell the aforementioned either at private sale or public sale to the highest and best bid, as the Receiver may determine, and as approved or confirmed by the Court. If the Receiver elects to sell the Assets by public sale then he shall promptly notify Jackson/Safe Med of the date, time and location of the sale at least ten (10) days prior to the sale and Jackson/Safe Med shall be entitled to participate in the public sale as a bidder.

 

	
  

	
b.  Any private sale contract will include a provision that Jackson/Safe Med shall be granted fifteen (15) days from application to the Court for approval of sale, to file appropriate notice with the Court that Jackson/Safe Med elects to exercise its/his/their limited option to purchase (as set forth herein), and that Jackson/Safe Med consents to the terms of the purchase contract entered into by the Receiver with the third party, except that the payment of the purchase price shall be immediately due and payable. In order to perfect and elect the limited purchase option, Jackson/Safe Med shall also, at that time, and not later than fifteen (15) days from the date of application to the Court for

 

approval of sale, deposit with the Clerk of Courts the entire purchase price

 

 

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     called for in the purchase contract or provide the Receiver with a certified letter  of   credit   in   the   full   amount  of   the   Purchase   Price,   or   other documentation which demonstrates the immediate availability of the Purchase Price, to the reasonable satisfaction of the Receiver.

 

	
  

	
c.   If Jackson/Safe Med elects the limited purchase option, timely provides said notice and deposit, Receiver will immediately request that the Court schedule a hearing for the purpose of the sale of assets as set forth in the Receiver's purchase contract. The Receiver will request that at hearing:

 

	
  

	
(i)        both the party with whom the Receiver has contracted, and Jackson/Safe Med, have the opportunity to purchase the Assets, pursuant to the terms ofthe Receiver's  contract, except that the Purchase Price shall be opened for bid with the opening bid to be no  less  than $10,000.00  in  excess  of  the  contract's  purchase price;

 

              (ii)      all subsequent bids to proceed in increments of not less than $10,000.00;

	
  

	
(iii)      all funds bid above and beyond the contract Purchase Price must be immediately available funds, at the hearing;

 

	
  

	
(iv)      If Jackson/Safe Med is not the successful purchaser at hearing, its post of the Purchase Price shall be returned to them.

 

	
  

	
d.  Receiver reserves the right to determine such other terms upon which a sale will be made so long as those terms will not be in derogation to the rights reserved to Jackson/Safe Med as expressly set forth herein;

 

 

 

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16)   As further consideration, Receiver agrees that it will file with the Court within fourteen (14) days of the execution of this Agreement a Motion or other appropriate pleading with the Court asking it to cancel the three and one half million shares received by Donald Sullivan in the summer of 2006 on the grounds that they were obtained without adequate consideration and for an illegal and/or improper purpose and any such other grounds that the Receiver deems appropriate.  The Receiver shall use its best efforts to achieve a favorable ruling from the Court cancelling the shares and shall prepare for and participate in any hearing or any other process requested by the Court on this matter using its best efforts. Receiver shall notify Jackson/Safe Med of any hearing on this matter and allow them to participate in the same if necessary.  Receiver shall have no duty to appeal any adverse decision from the Court on this issue.

In the event Donald Sullivan files a claim for wages or other compensation related to his work with E Med Future, or his position as director or officer, for any time period preceding the appointment of the Receiver agrees that it will file a Motion or other appropriate pleading with the Court asking that Sullivan's  claim be denied as a priority claim or limited as much as possible. The Receiver agrees that it shall use its best efforts to achieve a favorable ruling from the Court and meaningfully participate in any hearing or any other process requested by the Court on this matter. Receiver shall notify Jackson/ Safe Med of any hearing on this matter and allow them to participate in the same if necessary.

 

With regard to any wages or other compensation related to Sullivan's work withE Med Future, or his position as director or officer, for the receivership time period, the Receiver agrees to aggressively negotiate the amount of this claim with Sullivan.  However, with regard to the

 

receivership claim of Sullivan, the Receiver shall not be bound to reject same in total, nor shall

 

 

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the consent of Jackson/Safe Med be required.  The parties acknowledge that pursuant to Ohio law, wages incurred during the receivership period are entitled to an administrative priority. The Receiver shall have no duty to appeal any decision of the Court with regard to priority of claims. Jackson/Safe Med acknowledge that, in addition to a sale of the assets as set forth in Section 15, it is also the intention of the Receiver to liquidate the "corporate shell" of E Med Future, Inc. so as to bring additional dispensation to the receivership creditors, so long as the Receiver has the legal right take such corporate action as would be required to liquidate the "corporate shell". Jackson/Safe Med, for themselves, their members, agents, employees, and all related entities, pledge  their  cooperation  toward  these  efforts,  and  shall  not  impede  or  interfere  with  the Receiver's  efforts to that end. Jackson/Safe Med shall be entitled to  purchase the "corporate shell" at either public sale or private sale pursuant to the same rights, terms and conditions as afforded Jackson/Safe Med in Paragraph 15 of this Agreement for the purchase of Assets. The Receiver shall enter into a contract for the sale of the corporate shell and/ or hold a public sale of the same within one hundred fifty (150) days of date of this Agreement.

 

18)      The parties acknowledge and agree that all terms of this Agreement are subject to, and contingent upon, the approval of the Franklin County Court of Common Pleas through its Orders. Each of the aforementioned parties shall use best efforts to procure said approval.

 

19)      This Agreement is made and executed by each of the parties of such party's own free will and in accordance with such party's own  judgment and upon advice of  counsel or after opportunity to consult counsel.  No party has been influenced, coerced, or induced to make this compromise settlement by any representation of law or fact or by any improper action taken by any other party.

 

20)           The parties to this Agreement understand and agree that this Agreement constitutes a

compromise, resolution, and settlement of the disputes and claims to avoid the uncertainty, time,

 

 

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trouble, and expense of litigation, and that such compromise, resolution and settlement does not constitute and shall not be taken or construed as an admission of liability on the part of any party, but rather, such liability has been denied and is expressly denied by all parties to this Agreement

 

21)      This Agreement constitutes the entire Agreement among the parties with respect to the subject matter hereof and supersedes all prior oral or written agreements with respect to the matters provided herein.

 

22)           This Agreement shall not be amended, altered, or modified except by an instrument

in writing, signed by the party against whom enforcement of the amendment, alteration, or modification is sought.

 

23)      This Agreement shall be interpreted, construed, and enforced in accordance with the laws of the State of Ohio.

 

24)           Each party agrees to bear its own expenses for legal counsel retained in this action.

25)      All press releases or public statements intended to be disseminated into the public regarding the settlement or the underlying lawsuits between the parties shall be by joint agreement between the Receiver and Jackson/Safe Med as to the language used in such statements until such time as the Receiver has sold all Assets and/ or the Shell or the Receivership has been terminated.

(THIS SPACE INTENTIONALLY LEFT BLANK)

 

 

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IN WITNESS WHEREOF, the undersigned have duly executed this Agreement or have caused this Agreement to be duly executed on their behalf effective as of the first date set forth in this Agreement.

 

Martin Management Services, Inc.,

As court-appoin.1ed Receiver forB Med Fu1:ute, Inc.

 

_/s/Reg Martin_______________________________

By: Court Receiver

       Reg Martin

 

Safe Medical Solutions, LLC

 

__________________________________________

By _______________________________________

Print Name:_________________________________

Its: _______________________________________

 

 

__________________________________________

Kenneth Jackson, individually

 

 

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IN WITNESS WHEREOF, the 1.1Ddersiined have duly executed this Agreement or have caused this Agreement to be duly executed on their behalf effective as of the first date set forth in tbis Agreement.

 

Martin Management Services, Inc.,

As court-appoin.1ed Receiver forB Med Fu1:ute, Inc.

 

___________________________________________

By:

 

Safe Medical Solutions, LLC

 

/s/Kenneth A. Jackson_________________________

By Kenneth A. Jackson________________________

Print Name:_________________________________

Its: C.O.O.__________________________________

 

 

/s/Kenneth A. Jackson_________________________

Kenneth Jackson, individually

 

 

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