Document:

GervaisHeather-EmploymentLetter8612FINAL

August 6, 2012

Ms. Heather Gervais
Epocrates, Inc.
200 Princeton South Corporate Center, Suite 340
Ewing, New Jersey 08628

Re: Terms of Employment

Dear Heather:

On behalf of Epocrates, Inc. (“Epocrates” or the “Company”), I am pleased to set forth the terms of your continued employment as SVP, Commercial Operations.  The terms and conditions of your position and employment relationship with the Company are as set forth below:

		
	1.
	Position and Work Schedule.

a.You will continue to serve as SVP, Commercial Operations for the Company.  You will report directly to the Chief Executive Officer and work out of the Company’s Ewing, NJ office.  This is a full-time position.

b.You agree to the best of your ability and experience that you will at all times conscientiously perform all of the duties and obligations required of you to the satisfaction of the Company.  During the term of your employment, you further agree that you will devote your full business time and attention to the business of the Company, the Company will be entitled to all of the benefits and profits arising from or incident to all such work services and advice, you will not render commercial or professional services of any nature to any person or organization, or engage in self-employment, whether or not for compensation, without the prior written consent of the Company, and you will not directly or indirectly engage or participate in any business that is competitive in any manner with the business of the Company.  Nothing in this letter agreement will prevent you from accepting speaking or presentation engagements in exchange for honoraria or from serving on boards of charitable organizations, or from owning no more than one percent (1%) of the outstanding equity securities of a corporation whose stock is listed on a national stock exchange.

c.Of course, the Company may change your position, duties, reporting relationship and office location from time to time in its discretion.

2.Proof of Right to Work.  For purposes of federal immigration law, you will be required to provide to the Company documentary proof of your identity and eligibility for employment in the United States.  Your continued service as an employee of the Company  is contingent upon such satisfactory proof.

		
	3.
	Compensation.

a.    Base Salary.  Your initial base salary will be payable in semi monthly installments of $10,000.00 pursuant to the Company’s regular payroll policy, which equates to an annual base salary of $240,000.  Your base salary may be reviewed annually as part of the Company’s normal salary review process.  Any changes to your base salary are at the Company’s sole discretion.

b.    Bonus Compensation.  You will be eligible to participate in the 2012 Executive Bonus Plan (the “Bonus Plan”), pursuant to the terms and conditions of the Bonus Plan.  Your target bonus under the Bonus Plan will be 40% of your 2012 base salary paid by the Company, and the actual bonus paid will be based upon the Company’s performance (as determined by the 

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Company) against the Bonus Plan.  No bonus is considered earned under the Bonus Plan until the time that such bonus is scheduled to be paid as provided under the Bonus Plan.  Thus, in the event that your employment has been terminated (either by the Company or by you), you will not be entitled to any bonus which has not been scheduled to be paid prior to the termination date. Whether a bonus has been earned under the Bonus Plan, and the amount of any bonus earned, will be determined by the Company and approved by the Company’s Board of Directors (the “Board”) within its sole discretion.  Any bonus earned will be paid as soon as practicable following the approval of the Bonus Plan payouts by the Board, as provided under the Bonus Plan.

4.    Benefits.  Subject to the terms, conditions and limitations of the benefit plans, you are eligible to participate in the Company’s standard employee benefits currently consisting of short/long term disability, medical, dental, and vision insurance benefits.  Employees do not accrue vacation, sick leave, or other paid time off, and there is no set guideline on how much time off employees will be permitted to take.  Instead, under the terms of the Company’s paid time off policy for regular employees, you will be permitted to take a reasonable amount of time off with pay, as permitted by your duties and responsibilities, and as approved in advance by your manager.  Further details about benefits are available for your review.  Epocrates may modify compensation and benefits from time to time at its discretion.

5.    Employee 401(k) Plan.  You are eligible to participate in Epocrates’ 401(K) plan.  Employees who choose to participate will have pre-tax dollars deposited into their 401(K) account and the money will be directed to specified investment options.  Epocrates does not match funds or make contributions.

6.    Confidential Information and Invention Assignment Agreement.  You previously delivered to an officer of the Company the Company’s Confidential Information and Invention Assignment Agreement (the “Confidentiality Agreement”), a copy of which is enclosed for your reference.  You are required to abide by the Confidentiality Agreement as a condition of your employment.  In your work for the Company, you will be expected not to use or disclose any confidential information, including trade secrets or any information protected by privilege, of any former employer, client, or other person to whom you have an obligation of confidentiality.  Rather, you will be expected to use only that information which is generally known and used by persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company.  You agree that you will not bring onto Company premises, or load onto the Company’s systems, any unpublished documents, information or property belonging to any former employer or other person to whom you have an obligation of confidentiality.  You hereby represent that you have disclosed to the Company any contract you have signed that may restrict your activities on behalf of the Company and further represent and warrant that your employment by the Company does not and will not breach any agreement you have with any former employer or client, including any noncompete agreement or any agreement to keep in confidence or refrain from using information acquired by you prior to your employment by the Company.

7.    Company Policies.  As a condition of your continued employment, you are expected to abide by the Company’s policies and procedures, and acknowledge in writing that you have read and will comply with the Company’s Employee Handbook.

8.    At-Will Employment.  Your employment with the Company is on an “at will” basis, meaning that either you or the Company may terminate your employment at any time, with or without cause, and with or without advance notice.  Your employment at-will status can only be modified in a written agreement signed by you and by a duly authorized officer of the Company.

9.    Severance Benefits Not In Connection With A Change of Control.  If, at any time other than during the twelve (12) months following the consummation of a Change of Control (as defined herein), (A) the Company or any successor entity terminates your employment without Cause (as defined herein) and other than due to your death or disability, (B) such termination constitutes a “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h)) (a “Separation from Service”), and (C) on or within thirty (30) days after the termination date, you sign, date, and deliver to the Company a separation agreement that includes a general release of all known and unknown claims in the form provided to you by the Company (the “Release”) and you do not subsequently revoke the Release, then you will receive the following as your sole severance benefits (the “Severance Benefits”):  (i) severance pay equal to six (6) months of your base salary in effect as of the termination date, less required deductions and withholdings, paid in the form of salary continuation on the Company’s standard payroll dates beginning with the first payroll date following the thirtieth day after the termination date (provided that the Release has become effective by such payroll date, and the initial severance payment will be a “catch-up” payment that provides the full amount of severance pay that you would have received if the severance payments had begun as of the first payroll date following the termination date); and (ii) provided that you timely elect continued group health insurance coverage through federal COBRA law or comparable state law (collectively, “COBRA”), the Company will pay your COBRA premiums sufficient to continue your 

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group health insurance coverage at the same level in effect as of your termination date for six (6) months after your termination or until you become eligible for group health insurance coverage through a new employer, whichever occurs first (provided that you remain eligible for COBRA coverage).  Notwithstanding the preceding sentence, if the Company determines in its sole discretion that it cannot provide the foregoing COBRA payment benefit without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide to you a taxable monthly payment in an amount equal to the monthly COBRA premium that you would be required to pay to continue your group medical insurance coverage in effect on the date of your termination (which amount shall be based on the premium for the first month of COBRA coverage), which payments shall be made regardless of whether you elect COBRA continuation coverage and shall end on the earlier of (x) the date upon which you obtain other employment or (y) the last day of the sixth calendar month following the Separation from Service date.  You are required to provide prompt written notice to the Company of other employment you obtain during the six-month period following the termination date, including notice of whether you are eligible for group medical insurance coverage through your new employer.

For purposes of this letter agreement, “Cause” means any of the following conduct by you: (i) embezzlement, misappropriation of corporate funds, or other material acts of dishonesty; (ii) the conviction, plea of guilty, or nolo contendere to any felony (not involving the operation of a motor vehicle), or of any misdemeanor involving moral turpitude; (iii) engagement in any activity that you know or should know could materially harm the business or reputation of the Company, provided that this subsection (iii) shall not apply to any activity done in a good faith belief by you that the action taken or omission was in the best interest of the Company; (iv) material violation of any statutory, contractual, or common law duty or obligation owed by you to the Company, including, without limitation, the duty of loyalty which causes demonstrable injury to the Company; (v) material breach of the Confidentiality Agreement; or (vi) repeated failure, in the reasonable judgment of the Company, to substantially perform your assigned duties or responsibilities after written notice from the Company describing the failure(s) in reasonable detail and your failure to cure such failure(s) within thirty (30) days of receiving such written notice, provided that written notice only must be provided if the failure(s) are capable of cure.

10.    Change of Control Severance Benefits.  In the event that: (A) the Company consummates a change of control transaction, whereby fifty percent (50%) or more of the voting stock of the Company changes ownership pursuant to such transaction (a “Change of Control”); and (B) within twelve (12) months after the consummation of a Change of Control, your employment with the Company is (a) either terminated by the Company or successor entity without Cause and other than due to your death or disability, or terminated by you for Good Reason (as defined in and in accordance with the paragraph below), and (b) such termination constitutes a Separation from Service; and (C) if, on or within thirty (30) days after the termination date, you sign, date, and deliver to the Company the Release and you do not subsequently revoke the Release; then you will receive the following as your sole severance benefits (the “Change of Control Severance Benefits”): (i) severance pay equal to nine (9) months of your base salary in effect as of the termination date, less required deductions and withholdings, paid in the form of salary continuation on the Company’s standard payroll dates beginning with the first payroll date following the thirtieth day after the termination date (provided that the Release has become effective by such payroll date, and the initial severance payment will be a “catch-up” payment that provides the full amount of severance pay that you would have received if the severance payments had begun as of the first payroll date following the termination date); (ii) provided that you timely elect continued group health insurance coverage through COBRA, the Company will pay your COBRA premiums sufficient to continue your group health insurance coverage at the same level in effect as of your termination date for nine (9) months after your termination or until you become eligible for group health insurance coverage through a new employer, whichever occurs first (provided that you remain eligible for COBRA coverage); and (iii) any unvested shares subject to any option grants held by you as of the employment termination date will become vested, effective as of the employment termination date.  Notwithstanding the preceding sentence, if the Company determines in its sole discretion that it cannot provide the foregoing COBRA payment benefit without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide to you a taxable monthly payment in an amount equal to the monthly COBRA premium that you would be required to pay to continue your group medical insurance coverage in effect on the date of your termination (which amount shall be based on the premium for the first month of COBRA coverage), which payments shall be made regardless of whether you elect COBRA continuation coverage and shall end on the earlier of (x) the date upon which you obtain other employment or (y) the last day of the ninth calendar month following the Separation from Service date.  You are required to provide prompt written notice to the Company of other employment you obtain during the nine-month period following the termination date, including notice of whether you are eligible for group medical insurance coverage through your new employer.

For purposes of this Section 10, “Good Reason” shall mean one or more of the following conditions that arose upon or following the consummation of the Change of Control without your written consent: (i) a relocation of your assigned office which results in an increase in your one-way commuting distance by more than thirty-five (35) miles; (ii) a material decrease in your base salary (except for salary decreases generally applicable to the Company’s other executive employees); or (iii) a material reduction in the 

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scope of your duties or responsibilities from your duties and responsibilities in effect immediately prior to the Change of Control.  Notwithstanding the foregoing, you shall not be deemed to have terminated your employment for “Good Reason” unless (i) such termination occurs within ninety (90) days following the initial existence of one or more of the conditions that constitute Good Reason (as defined herein), (ii) you provide written notice to the Company (or any successor entity) of the existence of the Good Reason condition within thirty (30) days following the initial existence of the condition, and (iii) the Company (or its successor entity) fails to cure such condition within a period of thirty (30) days following such written notice.

11.    Parachute Payments.  In the event that the benefits provided for in this letter agreement or otherwise payable to you (“Payment”) would constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) and, but for this sentence, would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to the Reduced Amount.  The “Reduced Amount” shall be either (i) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax, or (ii) the largest portion, up to and including the total, of the Payment, whichever of the foregoing amounts, after taking into account all applicable federal, state and local employment taxes, income taxes and the Excise Tax (all computed at the highest applicable marginal rate), results in the receipt by you, on an after-tax basis, of the greater amount of the Payment, notwithstanding that all or some portion of the Payment may be subject to the Excise Tax.  Unless the Company and you otherwise agree in writing, the determination of your Excise Tax liability shall be made in writing by the accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the Change of Control (the “Accountants”).  If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the Change of Control, the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder.  For purposes of making the calculations required by this Section 11, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  Any good faith determinations of the Accountants made hereunder shall be final, binding, and conclusive upon the Company and you.  The Company and you shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section.  The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 11.  To the extent that any elimination in or reduction of payments or benefits is made under this Section 11, the order in which payments and benefits shall be reduced shall be made by the Accountants in a manner that shall provide you with the greatest economic benefit, but if more than one manner of reduction of payments and benefits necessary to arrive at the Reduced Amount yields the greatest economic benefit to you, then the payments and benefits shall be reduced pro rata.

12.    Deferred Compensation.  Severance payments made pursuant to Section 9 or Section 10, to the extent of payments made from the date of your termination through March 15 of the calendar year following your termination, are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations and thus payable pursuant to the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations.  To the extent such payments are made following said March 15, they are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations made upon an involuntary termination from service and payable pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations, to the maximum extent permitted by such provision, with any excess amount being regarded as subject to the distribution requirements of Section 409A(a)(2)(A) of the Code, including, without limitation, the requirement of Section 409A(a)(2)(B)(i) of the Code that payment be delayed until six (6) months after separation from service if you are a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such separation from service.  Notwithstanding anything to the contrary set forth herein, if any payments and benefits provided under this Agreement constitute “deferred compensation” within the meaning of Section 409A of the Code and the regulations and other guidance thereunder and any state law of similar effect (collectively “Section 409A”) (i) such payments and benefits shall not commence in connection with your termination of employment unless and until you also have incurred a Separation from Service, unless the Company reasonably determines that such amounts may be provided to you without causing you to incur the adverse personal tax consequences under Section 409A, and (ii) the Release required by Sections 9 and 10 above shall be considered effective only as of the latest permitted effective date for such Release if such Release could become effective in the calendar year following the calendar year in which your employment termination occurs.

13.    Complete Agreement.  This letter, together with your Confidentiality Agreement, forms the complete and exclusive statement of your employment agreement with the Company.  The terms in this letter supersede any other agreements or promises made to you by anyone, whether oral or written.  Other than those changes expressly reserved to the Company’s discretion in this letter, this letter agreement cannot be changed except in a written agreement signed by you and a duly authorized officer of the Company.

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	Very truly yours,
	 
	 

	Epocrates, Inc.
	 
	 

	

/s/ Matthew A. Kaminer
	 
	 

	 
	 
	 

	Matthew A. Kaminer
	 
	 

	General Counsel and Secretary
	 
	 

	 
	 
	 

	 
	 
	 

	UNDERSTOOD, ACCEPTED AND AGREED:
	 
	 

	 
	 
	 

	 
	 
	 

	/s/ Heather Gervais
	 
	 

	Heather Gervais
	 
	 

	 
	 
	 

	August 6, 2012
	 
	 

	Date
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	Enclosure:
	Confidentiality Agreement
	 
	 

	 
	 
	 
	 

cc:  Jay Getto, Senior Director, Human Resourcesexhibit101.htm

Exhibit 10.1

 

“DEAL FLOW” PURCHASE AGREEMENT

This “DEAL FLOW PURCHASE AGREEMENT” dated as of July 18, 2012 (this “Agreement”) is by and between Ryze Capital, N.A. LLC (“RYZE”) a Florida based Corporation (“Seller"), located at 121 South Orange Ave Suite 1230 Orlando, FL 32801 and Eco Ventures Group, Inc., located at 7432 East State Road 50, Suite 101, Groveland, FL 34736 (“EVGI” and/or the “Company”) a publicly listed company, concerning the Purchase of Seller by the Company. Seller and Company collectively referred to herein as Parties.

WHEREAS, the board of directors of EVGI and the managers of RYZE have approved the purchase of RYZE’s “Deal Flow” by EVGI (the “Purchase”) upon the terms, and subject to the conditions, set forth in this Agreement;

 

WHEREAS, it is intended that, for federal income tax purposes, the Purchase shall qualify as a reorganization under the provisions of Section 368(a) of the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated there under (the “Code”); and

 

WHEREAS, RYZE and EVGI desire to make certain representations, warranties, covenants and agreements in connection with this Agreement.

 

WHEREAS, EVGI desires to purchase RYZE’s “Deal Flow”; “Deal Flow” is hereby defined as:  the transaction with Energiepark Süptitz GmbH and Advance Biofuel Project/License for Suptiz, Germany and Groveland, Florida.

NOW, THEREFORE, the parties hereto make the following promises, covenants, representations, warranties and agreements:

1.           Pre-Closing Actions of EVGI.  Either prior to or immediately upon execution of this Agreement and prior to the Closing Date as set forth herein, EVGI shall undertake the following actions:

(a) The Board of Directors of EVGI shall unanimously approve and deliver to Cutler Law Group, P.C. (“Escrow Agent”) resolutions with respect to approving the Transactions set forth herein and share certificates issued in accordance with the below schedule (“Escrowed Shares”):

 

(b) Ryze Capital N.A. LLC – Seventeen million, nine hundred thousand shares (17,900,000);

 

(c) Adobe International, Inc. – Nine million shares (9,000,000);

 

(d) Summit Trading, LLC. – One million, eight hundred and fifty thousand shares (1,850,000);

 

(e) It is hereby agreed that the Chairman of the Board of EVGI shall have the right to vote the stock until such time as the Energiepark Süptitz GmbH and EVGI business combination is complete (“EPS – EVGI Transaction”).

 

(f) EVGI shall prepare a Form 8-K filing which reflects the transactions contemplated by this Agreement, as required to be filed with the Securities and Exchange Commission (the “Commission”).

 

(g) Upon closing of EPS-EVGI Transaction, Ryze shall have one board seat on the EVGI Board.

 

  

  

  

 

2.           Pre-Closing Actions of RYZE.  Immediately upon execution of this Agreement and prior to the Closing Date as set forth herein, RYZE shall undertake the following actions:

(a)           RYZE shall cause its Managing Directors to execute and deliver resolutions approving the Transactions set forth herein.

(b)           RYZE shall deliver a list of all Deals including, but not limited to, any transaction that has been completed within thirty (30) days of the date of this agreement, any transaction currently being negotiated and any transaction from the date of this agreement until the end of time.

(d)           RYZE shall cooperate with its reasonable best efforts to assist EVGI to prepare and complete the documents necessary to be filed with local, state and federal authorities to consummate the transactions contemplated hereby.

3.           Conditions to Closing.  The parties' obligation to close the proposed transaction will be subject to specified conditions precedent including, but not limited to, the following:

(a)           The representations and warranties of RYZE as set forth in Section 6 herein shall remain accurate as of the Closing Date and no material adverse change in the business of RYZE shall have occurred.

(b)           The representations and warranties of EVGI as set forth in Section 7 herein shall remain accurate as of the Closing Date and no material adverse change in the business of EVGI shall have occurred.

(d)           EVGI shall have provided the board and shareholder resolutions and any other approval required for approval of the terms and conditions of this Agreement.

(e)           EVGI shall retain its good standing as a publicly company quoted on the OTCBB maintained by the OTC Markets Group under the symbol "EVGI".

4.           At and subsequent to the Closing.

(a)           Upon closing of the EPS – EVGI Transaction, the Escrow Agent shall deliver the Escrowed Shares in accordance with the instructions of Ryze, Adobe and Summit.

5.           Timing of Closing.  The Closing of this transaction shall occur upon the delivery of the Escrowed Shares.

6.           Representations of RYZE.  RYZE represents and warrants as follows:

(a)           Ownership of Deals.  As of the Closing Date, EVGI will become the record and beneficial owner of the RYZE Deals.  The RYZE Deals will be free from claims, liens or other encumbrances.

(b)           Power to enter Agreement.  RYZE further represents that it has the power and the authority to execute this Agreement and to perform the obligations contemplated hereby;

  

  

  

 

(c)           Organization of RYZE; Authorization.  RYZE is a duly organized, validly existing and in good standing under the laws of Florida with full corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. The execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate action and this Agreement constitutes a valid and binding obligation of RYZE; enforceable against it in accordance with its terms.  RYZE has no subsidiaries.

(d)           No Conflict as to RYZE.  Neither the execution and delivery of this Agreement nor the consummation of the exchange of the RYZE Deals will (a) violate any provision of the membership agreement or bylaws (or other governing instrument) of RYZE or (b) violate, or be in conflict with, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, or excuse performance by any Person of any of its obligations under, or cause the acceleration of the maturity of any debt or obligation pursuant to, or result in the creation or imposition of any Encumbrance upon any property or assets of RYZE under, any material agreement or commitment to which RYZE is a party or by which its property or assets is bound, or to which any of the property or assets of RYZE is subject, or (c) violate any statute or law or any judgment, decree, order, regulation or rule of any court or other Governmental Body applicable to RYZE except, in the case of violations, conflicts, defaults, terminations, accelerations or encumbrances described in clause (b) of this Section for such matters which are not likely to have a material adverse effect on the business or financial condition of RYZE.

(e)           Consents and Approvals of Governmental Authorities. No consent, approval or authorization of, or declaration, filing or registration with, any Governmental Body is required to be made or obtained by RYZE in connection with the execution, delivery and performance of this Agreement by RYZE or the consummation of the sale of the RYZE Deals.

(h)           Other Consents. No consent of any Person is required to be obtained by RYZE to the execution, delivery and performance of this Agreement or the consummation of the sale of the RYZE Deals, including, but not limited to, consents from parties to leases or other agreements or commitments, except for any consent which the failure to obtain would not be likely to have a material adverse effect on the business and financial condition of RYZE as a whole.

(i)           Litigation.  There is no action, suit, inquiry, proceeding or investigation by or before any Court or Governmental body pending or threatened in writing against or involving RYZE which is likely to have a material adverse effect on the business or financial condition of RYZE as a whole, or which questions or challenges the validity of this Agreement.  RYZE is not subject to any judgment, order or decree that is likely to have a material adverse effect on the business or financial condition of RYZE as a whole.

(j)           Compliance with Law. The operations of RYZE have been conducted in accordance with all applicable laws and regulations of all Governmental Bodies having jurisdiction over them, except for violations thereof which are not likely to have a material adverse effect on the business or financial condition of RYZE as a whole.  RYZE has not received any notification of any asserted present or past failure by it to comply with any such applicable laws or regulations.  RYZE has all material licenses, permits, orders or approvals from the Governmental Bodies required for the conduct of its business, and is not in material violation of any such licenses, permits, orders and approvals.  All such licenses, permits, orders and approvals are in full force and effect, and no suspension or cancellation of any thereof has been threatened.

 

 

  

  

  

9.           Representations of EVGI. EVGI for its respective rights and interests represents and warrants as follows:

(a)           Organization; Authorization.  EVGI is a corporation duly organized, validly existing and in good standing under the laws of Nevada with full corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. The execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate action of EVGI and this Agreement constitutes a valid and binding obligation; enforceable against in accordance with its terms.  EVGI has no subsidiaries.

(b)           Capitalization.  The authorized capital stock of EVGI consists of 750,000,000 shares of common stock, par value $0.001 per share, and 100,000,000 shares of preferred stock, authorized.  As of the date of this Agreement, EVGI has approximately 2,250,648 shares of common stock issued and outstanding and 75,000 shares of preferred stock issued and outstanding.  The Common Stock of EVGI is presently quoted on the over-the-counter bulletin board under the symbol “EVGI”.  EVGI is current in all of its required filings with the US Securities and Exchange Commission.  EVGI is not a “shell” corporation as defined by Rule 405 promulgated by the US Securities and Exchange Commission.

(c)           No Conflict as to EVGI and Subsidiaries.  Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated herein will (a) violate any provision of the articles of incorporation or organization of EVGI or any of its Subsidiaries or (b) violate, or be in conflict with, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, or excuse performance by any Person of any of its obligations under, or cause the acceleration of the maturity of any debt or obligation pursuant to, or result in the creation or imposition of any Encumbrance upon any property or assets of any of EVGI or any of its Subsidiaries under, any material agreement or commitment to which any of EVGI, any of its Subsidiaries is a party or by which any of their respective property or assets is bound, or to which any of the property or assets of any of EVGI or any of its Subsidiaries is subject, or (c) violate any statute or law or any judgment, decree, order, regulation or rule of any court or other Governmental Body applicable to EVGI or any of its Subsidiaries except, in the case of violations, conflicts, defaults, terminations, accelerations or Encumbrances described in clause (b) of this Section for such matters which are not likely to have a material adverse effect on the business or financial condition of  EVGI and its subsidiaries, taken as a whole.

(d)           Consents and Approvals of Governmental Authorities. Except with respect to a Form 8-K and a proposed Registration Statement on Form S-1 filing with the US Securities and Exchange Commission, no consent, approval or authorization of, or declaration, filing or registration with, any Governmental Body is required to be made or obtained by EVGI in connection with the execution, delivery and performance of this Agreement by EVGI or the consummation of the transactions contemplated herein.

(e)           Other Consents. No consent of any Person is required to be obtained by EVGI to the execution, delivery and performance of this Agreement or the consummation of the transactions contemplated herein, including, but not limited to, consents from parties to leases or other agreements or commitments, except for any consent which the failure to obtain would not be likely to have a material adverse effect on the business and financial condition of EVGI.

  

  

  

 

 (f)           Litigation.  There is no action, suit, inquiry, proceeding or investigation by or before any court or Governmental Body pending or threatened in writing against or involving EVGI or any of its Subsidiaries which is likely to have a material adverse effect on the business or financial condition of EVGI and any of its Subsidiaries, taken as whole, or which would require a payment by EVGI or its subsidiaries in excess of $10,000 in the aggregate or which questions or challenges the validity of this Agreement. Neither EVGI nor any or its Subsidiaries is subject to any judgment, order or decree that is likely to have a material adverse effect on the business or financial condition of EVGI or any of its Subsidiaries, taken as a whole, or which would require a payment by EVGI or its Subsidiaries in excess of $10,000 in the aggregate.

 (h)           Compliance with Law. The operations of EVGI and its Subsidiaries have been conducted in accordance with all applicable laws and regulations of all Governmental Bodies having jurisdiction over them, except for violations thereof which are not likely to have a material adverse effect on the business or financial condition of EVGI and its Subsidiaries, taken as a whole, or which would not require a payment by EVGI or its Subsidiaries in excess of $2,000 in the aggregate, or which have been cured. Neither EVGI nor any of its Subsidiaries has received any notification of any asserted present or past failure by it to comply with any such applicable laws or regulations.  EVGI and its Subsidiaries have all material licenses, permits, orders or approvals from the Governmental Bodies required for the conduct of their businesses, and are not in material violation of any such licenses, permits, orders and approvals. All such licenses, permits, orders and approvals are in full force and effect, and no suspension or cancellation of any thereof has been threatened.

10.           Notices.  Any notice which any of the parties hereto may desire to serve upon any of the other parties hereto shall be in writing and shall be conclusively deemed to have been received by the party at its address, if mailed, postage prepaid, United States mail, registered, return receipt requested, to the following addresses:

If to Seller at:

 

RYZE Capital, N.A. LLC

121 South Orange Ave.

Suite 1230

Orlando, FL 32801

ATTN: Owais Khanani

If to Company at:

Eco Ventures Group Inc.

ATTN: Randall Lantham, Esq.

7432 East State Road 50, Suite 101,

Groveland, FL 34736 

Email: rjlanham@mac.com

 

  

  

  

 

With a copy to:

Cutler Law Group

3355 West Alabama, Suite 1150

Houston, TX 77098

Attn:  M. Richard Cutler

Telephone:  (713) 888-0040

Facsimile:  (800) 836-0714

11.           Successors.  This Agreement shall be binding upon and inure to the benefit of the heirs, personal representatives and successors and assigns of the parties.

12.           Choice of Law.  This Agreement shall be construed and enforced in accordance with the laws of the State of Nevada, and the parties submit to the exclusive jurisdiction of the courts of Nevada in respect of all disputes arising hereunder.

13.           Counterparts.  This Agreement may be signed in one or more counterparts, all of which taken together shall constitute an entire agreement.

14.           Confidential Information.  Each of RYZE and EVGI hereby acknowledges and agrees that all information disclosed to each other whether written or oral, relating to the other’s business activities, its customer names, addresses, all operating plans, information relating to its existing services, new or envisioned products or services and the development thereof, scientific, engineering, or technical information relating to the others business, marketing or product promotional material, including brochures, product literature, plan sheets, and any and all reports generated to customers, with regard to customers, unpublished list of names, and all information relating to order processing, pricing, cost and quotations, and any and all information relating to relationships with customers, is considered confidential information, and is proprietary to, and is considered the invaluable trade secret of such party (collectively “Confidential Information”).  Any disclosure of any Confidential Information by any party hereto, its employees, or representatives shall cause immediate, substantial, and irreparable harm and loss to the other.  Each party understands that the other desires to keep such Confidential Information in the strictest confidence, and that such party’s agreement to do so is a continuing condition of the receipt and possession of Confidential Information, and a material provision of this agreement, and a condition that shall survive the termination of this Agreement.  Consequently, each party shall use Confidential Information for the sole purpose of performing its obligations as provided herein.

15.           Entire Agreement.  This Agreement sets forth the entire agreement and understanding of the Parties hereto with respect to the transactions contemplated hereby, and supersedes all prior agreements, arrangements and understandings related to the subject matter hereof.  No understanding, promise, inducement, statement of intention, representation, warranty, covenant or condition, written or oral, express or implied, whether by statute or otherwise, has been made by any Party hereto which is not embodied in this Agreement or the written statements, certificates, or other documents delivered pursuant hereto or in connection with the transactions contemplated hereby, and no party hereto shall be bound by or liable for any alleged understanding, promise, inducement, statement, representation, warranty, covenant or condition not so set forth.

16.           Costs and Expenses.  Except as otherwise specifically set forth herein, each party will bear its own attorneys, brokers, investment bankers, agents, and finders employed by, such party.  The parties will indemnify each other against any claims, costs, losses, expenses or liabilities arising from any claim for commissions, finder's fees or other compensation in connection with the transactions contemplated herein which may be asserted by any person based on any agreement or arrangement for payment by the other party.

 

  

  

  

 

17.           Attorney’s Fees.  Should any action be commenced between the parties to this Agreement concerning the matters set forth in this Agreement or the right and duties of either in relation thereto, the prevailing party in such Action shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as and for its Attorney’s Fees and Costs.

18.           Finders.  RYZE and EVGI represents and warrants that there are no finders or other parties which have represented RYZE or EVGI in connection with this transaction which have not received appropriate compensation.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

	
Dated:

	
ECO VENTURES GROUP, INC.

	  
	  	  	  	  	  
	  	  	  	  	  
	  	
By:  Randall Lanham, CEO

	  	  
	  	  	  	  	  
	
Dated:

	
RYZE CAPITAL N.A. LLC

	  
	  	  	  	  	  
	  	  	  	  	  
	  	
By:   Owais Khanani

	
 

	  	  
	  	  	  	  	  
	  	
Acceptance By Escrow Agent:

	  
	  	
Cutler Law Group

	  	  
	  	
 

	  	  	  
	  	
M. Richard Cutler

	  	  	  
	 	Date:

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