Document:

rely-ex1044_797.htm

Exhibit 10.44

CONSENT AND THIRD AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

THIS CONSENT AND THIRD AMENDMENT TO REVOLVING CREDIT AGREEMENT (this “Amendment”) is entered into as of November 1, 2016, by and among REAL ALLOY RECYCLING, INC., a Delaware corporation, formerly known as Aleris Recycling, Inc., a Delaware corporation (“Real Alloy”), in its capacities as the Borrower Representative and as a Borrower, each of the other Borrowers and Credit Parties signatory to the Revolving Credit Agreement described below, WELLS FARGO BANK, NATIONAL ASSOCIATION, for itself as a Lender, and as agent for the Lenders from time to time party to the Revolving Credit Agreement described below (in such capacity, “Agent”), and the other Lenders signatory hereto.

W I T N E S S E T H:

WHEREAS, the Borrowers, the other Credit Parties, Agent and the Lenders from time to time party thereto are parties to that certain Revolving Credit Agreement, dated as of February 27, 2015, as  amended by that certain First Amendment to Revolving Credit Agreement dated as of May 21, 2015, and as amended by that certain Second Amendment to Revolving Credit Agreement dated August 24, 2016 (collectively, as further amended, restated, supplemented or modified from time to time, the “Credit Agreement”; unless otherwise defined herein, capitalized terms used herein that are not otherwise defined herein shall have the respective meanings assigned to such terms in the Credit Agreement) pursuant to which the Lenders committed to make certain loans to the Borrowers upon the terms and conditions set forth therein; 

WHEREAS, Real Alloy has informed Agent that it intends to (a) purchase certain assets (the “Asset Purchase”) from Texas Aluminum Recycling LLC, an Ohio limited liability company (“Texas Recycling”), Wisconsin Aluminum Recycling LLC, an Ohio limited liability company (“Wisconsin Recycling”), Pennsylvania Aluminum Recycling LLC, an Ohio limited liability company (“Pennsylvania Recycling”), Beck Aluminum Alloys, Ltd., an Ohio limited liability company (“BAA”) and Beck Aluminum Corporation, an Ohio corporation (“BAC” and together with Texas Recycling, Wisconsin Recycling, Pennsylvania Recycling and BAA, the “Asset Sellers”) and (b) acquire a 49% membership interest in Beck Aluminum International, LLC, an Ohio limited liability company, from GSB Beck Holdings, Inc., an Ohio corporation (“GSB”) (the “Equity Purchase”) pursuant to the terms and conditions of that certain Asset and Securities Purchase Agreement to be entered into on or about the date hereof (the “Purchase Agreement”) by and among the Asset Sellers, GSB and Real Alloy; 

WHEREAS, Real Alloy has further informed Agent and the Lenders that the Asset Purchase will not satisfy certain of the conditions to a Permitted Acquisition (all such conditions to any Permitted Acquisition are collectively referred to herein as the “Permitted Acquisition Conditions”); and

WHEREAS, the Credit Parties have requested that Agent and the Lenders consent to the Asset Purchase and amend certain provisions of the Credit Agreement to, inter alia, consent to the Equity Purchase, and, subject to the satisfaction of the conditions set forth herein, Agent and the Lenders signatory hereto are willing to do so, on the terms set forth herein.

 

 

NOW, THEREFORE, in consideration of the premises, covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrowers, the other Credit Parties, Agent and the Lenders party hereto do hereby agree as follows:

1.Consent.  Subject to the effectiveness and the terms and conditions of this Agreement, including those set forth in Section 4 hereof, and notwithstanding anything to the contrary contained in the Credit Agreement or in any of the other Loan Documents, Agent and the undersigned Lenders hereby consent to the consummation of the Asset Purchase pursuant to the terms of the Purchase Agreement notwithstanding the failure of the Asset Purchase to satisfy the Permitted Acquisition Conditions set forth in (i) clauses (a)(i)(y) and (a)(ii) of the definition of “Permitted Acquisition” on or before fourteen (14) days prior to the consummation of the Asset Purchase (collectively, the “Pre-Closing Deliverables”) and (ii) clauses (f) and (g) of the definition of “Permitted Acquisition”; provided that (A) the Pre-Closing Deliverables shall have been delivered concurrently with or prior to the consummation of the Asset Purchase, (B) after giving effect to the Asset Purchase, Availability shall not be less than $23,500,000, (C) average Availability for the thirty (30) day period ending on the date of the Asset Purchase (giving pro forma effect to the Asset Purchase for each day in such thirty (30) day period) shall not be less than $23,500,000 and (D) the parties hereto acknowledge and agree that the Asset Purchase shall be deemed to be a Permitted Acquisition for all purposes under the Credit Agreement and each of the other Loan Documents. 

 

2.Ratification and Incorporation of Credit Agreement and Other Loan Documents; Acknowledgments.  Except as expressly modified under this Amendment, (a) each Credit Party hereby acknowledges, confirms, and ratifies all of the terms and conditions set forth in, and all of its respective obligations under, the Credit Agreement and the other Loan Documents to which it is a party, and (b) all of the terms and conditions set forth in the Credit Agreement and the other Loan Documents are incorporated herein by this reference as if set forth in full herein.  Each Credit Party represents that as of the date of execution of this Amendment it has no offset, defense, counterclaim, dispute or disagreement of any kind or nature whatsoever with respect to the amount of the Obligations. 

 

3.Amendments. Subject to the terms and conditions of this Amendment, including, without limitation, those set forth in Section 4 hereof, the Credit Agreement shall be amended as follows:

(a)Clauses (q) and (r) of Section 4.2 (Certificates; Other Information) of the Credit Agreement are hereby amended by (i) deleting clause (q) in its entirety and substituting in lieu thereof the following new clause (q) and (ii) adding the following new clause (r):

 

(q)as soon as available, but not later than one hundred twenty (120) days after the end of each fiscal year of the Beck Trading Business Joint Venture, a copy of the unaudited balance sheet of the Beck Trading Business Joint Venture and the related statements of income or operations, shareholders’ equity and cash flows for such fiscal year, each of which shall be complete and correct and fairly present, in all material respects, in accordance with GAAP, the financial position and the results of operations 

 

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of the Beck Trading Business Joint Venture, subject to normal year-end adjustments and absence of footnote disclosures; and 

 

(r)promptly, such additional business, financial, collateral, corporate affairs, perfection certificates and other information as Agent may from time to time reasonably request.

 

(b)Clauses (h), (i) and (j) of Section 5.4 (Acquisitions; Loans and Investments) of the Credit Agreement are hereby amended by (i) deleting clauses (h) and (i) in their entirety and substituting in lieu thereof the following new clauses (h) and (i) and (ii) adding the following new clause (j):

 

(h)the Closing Date Acquisition and any Permitted Acquisitions; 

 

(i)the Investment by Real Alloy Recycling in the Beck Trading Business Joint Venture pursuant to the Purchase Agreement made on the Third Amendment Effective Date in an amount not to exceed the allocation of the Purchase Price (as defined in the Purchase Agreement) in such Investment; provided that with respect to the Beck Trading Business Joint Venture, Real Alloy Recycling shall not have any liability for the obligations of such joint venture and Real Alloy Recycling’s liability is limited to the Investment therein on the Third Amendment Effective Date; and 

 

(j)other Investments not described above in an aggregate amount not to exceed $3,000,000 at any time.

 

(c)Clause (e) (Cross-Default) of Section 7.1 (Events of Default) of the Credit Agreement is hereby amended to by adding the following new clause (e)(v):

“or (v) the occurrence and continuance of any event of default under the Beck Acquisition Term Loan Documents;”

 

(d)Section 11.1 (Defined Terms) of the Credit Agreement is hereby amended by deleting the defined terms “LIBOR” and “U.S. Borrowing Base” and the following new defined terms “LIBOR” and “U.S. Borrowing Base” shall be substituted in lieu thereof to read as follows:

“LIBOR” means, for each Interest Period for each LIBOR Rate Loan the offered rate per annum for deposits of Dollars for the applicable Interest Period that appears on Reuters Screen LIBOR01 Page as of 11:00 A.M. (London, England time) two (2) Business Days prior to the first day in such Interest Period (which shall not be less than 0.00% per annum).  If no such offered rate exists, such rate will be the rate of interest per annum, as determined by Agent at which deposits of Dollars in immediately available funds are offered at 11:00 A.M. (London, England time) two (2) 

 

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Business Days prior to the first day in such Interest Period by major financial institutions reasonably satisfactory to Agent in the London interbank market for such Interest Period for the applicable principal amount on such date of determination.

“U.S. Borrowing Base” means, with respect to the U.S. Borrowers on a consolidated basis, as of any date of determination by Agent, from time to time, an amount equal to the lesser of:

(a)the Aggregate Revolving Loan Commitment at such time less the Canadian Outstandings at such time; and

(b)the sum of (x) the AR Advance Rate multiplied by the book value of Eligible Accounts of such Borrowers at such time, plus (y) the lesser of (i) 75% of the book value of Eligible Inventory of such Borrowers valued at the lower of cost or market on a first-in, first-out basis, and (ii) 85% of the book value of Eligible Inventory of such Borrowers, valued at the lower of cost or market on a first-in, first-out basis multiplied by the NOLV Factor; provided that during the Finished Goods Inventory Enhancement Period, and solely with respect to Eligible Finished Goods Inventory, the amount of Eligible Finished Goods Inventory that would otherwise be included in the calculation of clause (y) above shall be equal to the Finished Goods Inventory Advance Rate multiplied by the book value of Eligible Finished Goods Inventory of such Borrowers, valued at the lower of cost or market on a first-in, first-out basis; 

in each case less Reserves established by Agent at such time in its Permitted Discretion.

 

(e)Section 11.1 (Defined Terms) of the Credit Agreement is hereby amended by adding the following new definitions of “AR Advance Rate”, “Beck Acquisition Term Loan Documents”, “Beck Trading Business Joint Venture,” “Eligible Finished Goods Inventory”, “Finished Goods Inventory Advance Rate”, “Finished Goods Inventory Enhancement Period”, “Purchase Agreement” and “Third Amendment Effective Date” to appear in appropriate alphabetical order: 

“AR Advance Rate” means, beginning on the Third Amendment Effective Date and continuing through the end of the month in which the Third Amendment Effective Date occurs, 90%, which amount shall automatically decrease on the first day of each subsequent month by 0.5% until such amount is reduced to 85%.

“Beck Acquisition Term Loan Documents” means, collectively, (a) that certain Term Loan Agreement between Real Alloy Recycling and Wells Fargo Bank, National Association, (b) that certain Security Agreement between Real Alloy Recycling and Wells Fargo Bank, 

 

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National Association, and (c) all documents delivered in connection with any of the foregoing, in each case, as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with this Agreement.

“Beck Trading Business Joint Venture” means Beck Aluminum International, LLC, an Ohio limited liability company, a joint venture between Real Alloy Recycling and GSB Beck Holdings, Inc., an Ohio corporation.

“Eligible Finished Goods Inventory” means, without duplication of any other Inventory included in the determination of the U.S. Borrowing Base, Inventory that qualifies as Eligible Inventory and consists of finished goods held for sale in the Ordinary Course of Business of the Borrowers. Notwithstanding the above, Agent shall have the right to establish, modify, or eliminate Reserves against Eligible Finished Goods Inventory from time to time in its Permitted Discretion; provided that Agent shall provide the Borrower Representative five (5) days prior written notice before making such modifications or adjustments with respect to Reserves; provided further that notwithstanding the foregoing, no such notice shall be required if (a) Exigent Circumstances exist and are continuing or (b) if, after giving effect to such modification or adjustment, Availability is less than the greater of $16,500,000 and 15% of the Aggregate Revolving Loan Commitment.

“Finished Goods Inventory Advance Rate” means, beginning on the Third Amendment Effective Date and continuing through the end of the month in which the Third Amendment Effective Date occurs, 83%, which amount shall automatically decrease on the first day of each subsequent month by 0.67%. 

“Finished Goods Inventory Enhancement Period” means the period commencing on the Third Amendment Effective Date and ending on October 31, 2017. 

“Purchase Agreement” has the meaning provided in the Third Amendment.

“Third Amendment Effective Date” means November 1, 2016.

4.Condition Precedent to Effectiveness of Amendment.  This Amendment shall become effective as of the date upon which each of the following conditions precedent is satisfied in full in the sole discretion of Agent (such date, the “Third Amendment Effective Date”):

(a)Agent shall have received duly executed counterparts of this Amendment from each Credit Party and the Lenders and all of the other agreements, documents, instruments and other items set forth on the closing checklist attached hereto as Annex A; 

 

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(b)Agent shall have received duly executed originals of a pro forma Borrowing Base Certificate, dated as of the Third Amendment Effective Date, reflecting information concerning Eligible Accounts and Eligible Inventory of Borrower as of a date not more than seven (7) days prior to the Third Amendment Effective Date; 

(c)the truth and accuracy of the representations and warranties contained in Section 5 hereof; and

(d)the Borrowers shall have paid to Agent an amendment fee in an amount equal to $30,000, which fee shall be fully earned and non-refundable when paid and shall be distributed ratably to the Lenders in accordance with their respective pro rata shares of the Commitments. 

5.Representations and Warranties. The Borrowers and each other Credit Party hereby represent and warrant to Agent and the Lenders as follows:

(a)Representations and Warranties.(i) Each of the representations and warranties contained in the Loan Documents is true and correct in all material respects (without duplication of any materiality qualifier contained therein) on and as of the date of execution of this Amendment, except for any representation and warranty that relates by its terms only to an earlier date (in which case, it shall be true and correct in all material respects (without duplication of any materiality qualifier contained therein) on and as of such earlier date) and (ii) and after giving effect to this Amendment, no Default or Event of Default shall exist or arise therefrom.

(b)Binding Effect of Documents.  This Amendment and the other Loan Documents have been duly executed and delivered to Agent and the Lenders by the Borrowers and each of the other Credit Parties and are in full force and effect, as modified hereby.

(c)No Conflict, Etc.  The execution, delivery and performance of this Amendment by the Borrowers and each of the other Credit Parties will not violate any law, rule, regulation or order or Contractual Obligation or Organizational Document of the Borrowers or any other Credit Party and will not result in, or require, the creation or imposition of any Lien on any of its properties or revenues.

(d)Authority.  Each of the Borrowers and the other Credit Parties has the corporate or limited liability company, as applicable, power and authority to (i) enter into this Amendment and (ii) to do all acts and things as are required or contemplated hereunder to be done, observed and performed by it.

6.Provisions of General Application.

(e)Effect of this Amendment.  Nothing in this Amendment is intended (or shall be construed) to constitute the consent of Agent or any Lender to any other transaction or the waiver by Agent or any Lender of any Default or Event of Default.  Except as set forth in Section 3 of this Amendment, no other changes or modifications to the Credit Agreement or any other Loan Document are intended or implied by this Amendment and in all other respects the Loan Documents are hereby specifically ratified, restated and confirmed by all parties hereto as 

 

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of the date of execution of this Amendment.  To the extent of conflict between the terms of this Amendment and the other Loan Documents, the terms of this Amendment shall govern and control.  The Credit Agreement and this Amendment shall be read and construed as one agreement.

(f)Binding Effect.  This Amendment shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns.

(g)Survival of Representations and Warranties.  All representations and warranties made in this Amendment or any other document furnished in connection with this Amendment shall survive the execution and delivery of this Amendment and the other documents, and no investigation by Agent or any Lender or any closing shall affect the representations and warranties or the right of Agent and the Lenders to rely upon them.

(h)Severability.  Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment.

(i)Captions. The captions and headings of this Amendment are for convenience of reference only and shall not affect the interpretation of this Amendment.

(j)Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK.

(k)Counterparts.  This Amendment may be executed in any number of counterparts, but all of such counterparts shall together constitute but one and the same agreement.  Delivery of an executed signature page of this Amendment by facsimile transmission or electronic transmission shall be as effective as delivery of a manually executed counterpart hereof.

(l)Entire Agreement.  This Amendment is a Loan Document and the Credit Agreement as modified by this Amendment embodies the entire agreement between the parties hereto relating to the subject matter hereof and supersedes all prior agreements, representations and understandings, if any, relating to the subject matter hereof. 

7.Waiver, Release and Disclaimer.  IN CONSIDERATION OF THE LENDERS’ AND AGENT’S AGREEMENTS CONTAINED IN THIS AMENDMENT, EACH CREDIT PARTY HEREBY IRREVOCABLY RELEASES AND FOREVER DISCHARGES THE LENDERS AND AGENT AND THEIR AFFILIATES, SUBSIDIARIES, SUCCESSORS, ASSIGNS, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, CONSULTANTS AND ATTORNEYS (EACH, A “RELEASED PERSON”) OF AND FROM ANY AND ALL CLAIMS, SUITS, ACTIONS, INVESTIGATIONS, PROCEEDINGS OR DEMANDS, WHETHER BASED IN CONTRACT, TORT, IMPLIED OR EXPRESS WARRANTY, STRICT LIABILITY, CRIMINAL OR CIVIL STATUTE OR COMMON LAW OF ANY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH SUCH CREDIT PARTY EVER HAD OR NOW HAS AGAINST AGENT, ANY LENDER OR ANY OTHER RELEASED PERSON WHICH RELATES, DIRECTLY OR INDIRECTLY, TO ANY ACTS OR 

 

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OMISSIONS OF AGENT, ANY LENDER OR ANY OTHER RELEASED PERSON RELATING TO THE CREDIT AGREEMENT OR ANY OTHER LOAN DOCUMENT ON OR PRIOR TO THE DATE OF EXECUTION OF THIS AMENDMENT.

[Remainder of page intentionally blank; 
signature pages follow]

 

 

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Exhibit 10.44

IN WITNESS WHEREOF, the parties have caused this Consent and Third Amendment to Revolving Credit Agreement to be duly executed by their respective officers thereunto duly authorized, as of the date first above written.

BORROWERS:

 

REAL ALLOY RECYCLING, INC.

	
 
	
 
	
 
	
/s/ Michael J. Hobey

 

	
 
	
 
	
 
	
Michael J. Hobey

	
 
	
 
	
 
	
Vice President and Treasurer 

	
 
	
 
	
 
	
 

REAL ALLOY BENS RUN, LLC

 

	
 
	
 
	
 
	
/s/ Michael J. Hobey

 

	
 
	
 
	
 
	
Michael J. Hobey

	
 
	
 
	
 
	
Vice President and Treasurer 

	
 
	
 
	
 
	
 

REAL ALLOY SPECIALTY PRODUCTS, INC.

	
 
	
 
	
 
	
/s/ Michael J. Hobey

 

	
 
	
 
	
 
	
Michael J. Hobey

	
 
	
 
	
 
	
Vice President and Treasurer 

 

REAL ALLOY SPECIFICATION, INC.

	
 
	
 
	
 
	
/s/ Michael J. Hobey

 

	
 
	
 
	
 
	
Michael J. Hobey

	
 
	
 
	
 
	
Vice President and Treasurer 

 

ETS SCHAEFER, LLC

	
 
	
 
	
 
	
/s/ Michael J. Hobey

 

	
 
	
 
	
 
	
Michael J. Hobey

	
 
	
 
	
 
	
Vice President and Treasurer 

 

REAL ALLOY CANADA LTD.

	
 
	
 
	
 
	
/s/ Michael J. Hobey

 

	
 
	
 
	
 
	
Michael J. Hobey

	
 
	
 
	
 
	
Vice President and Treasurer 

 

 

 

 

CONSENT AND THIRD AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

 

 

CREDIT PARTIES:

 

REAL ALLOY INTERMEDIATE HOLDING, LLC

	
 
	
 
	
 
	
/s/ John A. Miller

 

	
 
	
 
	
 
	
John A. Miller

	
 
	
 
	
 
	
Executive Vice President 

 

REAL ALLOY HOLDING, INC.

	
 
	
 
	
 
	
/s/ Michael J. Hobey

 

	
 
	
 
	
 
	
Michael J. Hobey

	
 
	
 
	
 
	
Vice President and Treasurer 

 

RA MEXICO HOLDING, LLC

	
 
	
 
	
 
	
/s/ Michael J. Hobey

 

	
 
	
 
	
 
	
Michael J. Hobey

	
 
	
 
	
 
	
Vice President and Treasurer 

 

 

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AGENT AND LENDER:

 

WELLS FARGO BANK, NATIONAL ASSOCIATION, AS Agent and as a Lender

	
 
	
 
	
 
	
/s/ Matthew Howe

 

	
 
	
 
	
 
	
Matthew Howe

	
 
	
 
	
 
	
Vice President 

 

 

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LENDER:

 

WINTRUST BANK

	
 
	
 
	
 
	
/s/ Michael Bragg

 

	
 
	
 
	
 
	
Michael Bragg

	
 
	
 
	
 
	
Vice President 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNEX A

 

Closing Checklist

 

 

 

 

 

 

 

 

 

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ECOLOCAP SOLUTIONS, INC.

COMMON STOCK PURCHASE AGREEMENT

This Common Stock Purchase Agreement (this "Agreement") is made and entered into as of March 10, 2017 (the "Agreement Date"), by and between Ecolocap Solutions, Inc., a Nevada corporation (the "Company"), and Tonaquint, Inc., a Utah corporation (the "Purchaser").

Recitals

Whereas, the Company desires to issue and sell common stock of the Company, par value $0.00001 (the "Common Stock"), on the terms and conditions set forth herein, and has authorized such sale and issuance; and

Whereas, the Purchaser desires to purchase such Common Stock on the terms and conditions set forth herein.

Agreement

Now, Therefore, in consideration of the foregoing recitals and the mutual promises, representations, warranties, and covenants hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.         Agreement To Sell And Purchase.

The Purchaser hereby agrees to purchase, and the Company hereby agrees to sell and issue to the Purchaser, a number of shares (the "Shares") of newly issued restricted Common Stock of the Company determined pursuant to the following formula for an aggregate purchase price of $50,000.00 (the "Purchase Price"): the total number of Shares being purchased hereunder shall equal the Purchase Price divided by 80% multiplied by the closing price of the Common Stock for the trading day immediately preceding the date that is six (6) months from the Agreement Date (the "Per Share Purchase Price"). In the event of any stock split, stock combination, recapitalization, stock dividend, or similar transaction that occurs prior to the Company's delivery of any Shares pursuant to the terms hereof, the number of Shares and the Per Share Purchase Price shall be adjusted accordingly based on such stock split, stock combination, recapitalization, stock dividend, or similar transaction.

2.         Closing, Delivery And Payment.

The closing of the sale and purchase of the Shares under this Agreement (the "Closing") will take place simultaneously with the execution of this Agreement or at such other time as the parties may otherwise agree. At the Closing, the Purchaser will pay the entire Purchase Price for all of the Shares by wire transfer of immediately available funds to such account as may be designated by the Company. Notwithstanding the foregoing, the Company will not issue or

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otherwise put in the Purchaser's name any Shares until the satisfaction of each of the following conditions (the "Share Delivery Conditions"): (a) no Shares shall be delivered prior to the date that is six (6) months from the date hereof; (b) the Purchaser shall have delivered to the Company written notice specifying the number of Shares to be delivered (a "Share Delivery Notice"); and (c) such delivery of Shares will not be in violation of the ownership limitation set forth in Section 6 below. Upon satisfaction of the Share Delivery Conditions, the Company will deliver the number of Shares specified in the applicable Share Delivery Notice within three (3) days of the Purchaser's delivery of the applicable Share Delivery Notice. Upon execution of this Agreement, the Company will cause to be executed and delivered to the Purchaser a fully executed secretary's certificate and written consent of directors evidencing the Company's approval of this Agreement substantially in the forms attached hereto as Exhibit A.

3.         Representations, Warranties, And Covenants Of The Company.

The Company hereby represents, warrants and covenants to the Purchaser that as of the Closing and each date Shares are delivered to the Purchaser pursuant to the terms hereof:

		(a)	
The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has all necessary corporate power and authority to (i) own, operate and occupy its properties and to carry on its business as presently conducted, and (ii) enter into this Agreement and the other agreements, instruments and documents contemplated hereby, and to consummate the transactions contemplated hereby and thereby. The Company is qualified to do business and is in good standing in each jurisdiction in which the failure to so qualify would have a material adverse effect.

		(b)	
All necessary corporate proceedings, votes, resolutions, and approvals relating to the issuance and sale of the Shares will have been completed by the Company.  Upon execution, this Agreement will constitute a valid and legally binding obligation of the Company, enforceable in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors' rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

		(c)	
The Shares purchased pursuant to this Agreement will be, upon issuance and payment by the Purchaser in accordance with this Agreement, duly authorized, validly issued, fully paid, non-assessable, and free of all liens, claims and encumbrances.

		(d)	
In order to allow for, as of the relevant date of determination, the purchase of all of the Shares to be purchased hereunder, the Company shall take all action necessary from time to time to reserve for the benefit of the Purchaser the number of authorized but unissued shares of Common Stock equal to the number of Shares set forth in Section 1 above (such calculated amount is referred to as the "Share Reserve"). If at any time the Share Reserve is less than required herein, the Company shall immediately increase the Share Reserve in an amount equal to no less than the deficiency. If the Company does not

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have sufficient authorized and unissued shares of Common Stock available to increase the Share Reserve, the Company shall call a special meeting of the stockholders as soon as practicable after such occurrence, but in no event later than thirty (30) calendar days after such occurrence, and hold such meeting as soon as practicable thereafter, but in no event later than sixty (60) calendar days after such occurrence, for the sole purpose of increasing the number of authorized shares of Common Stock. The Company's management shall recommend to the Company's stockholders to vote in favor of increasing the number of authorized shares of Common Stock. Management shall also vote all of its shares in favor of increasing the number of authorized shares of Common Stock. The Company shall use its best efforts to cause such additional shares of Common Stock to be authorized so as to comply with the requirements of this subsection.

4.         Representations And Warranties Of The Purchaser.

The Purchaser hereby represents and warrants to the Company that as of the Closing hereunder:

		(a)	
The Purchaser has full power and authority to enter into this Agreement.  Upon execution, this Agreement will constitute a valid and legally binding obligation of the Purchaser, enforceable in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors' rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

		(b)	
The Shares will be acquired for investment for the Purchaser's own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and the Purchaser has no present intention of selling, granting any participation in or otherwise distributing the same except in compliance with applicable U.S. securities laws.

		(c)	
The Purchaser is an "accredited investor" within the meaning of Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended (the "Securities Act").

		(d)	
The Purchaser is an experienced investor in securities of companies in the development stage, can bear the economic risk of its investment, including a total loss, and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Shares.  The Purchaser has conducted its own due diligence review of the Company and received copies or originals of all documents it has requested from the Company.

		(e)	
The Purchaser understands that the issuance of the Shares has not been, and will not be, registered under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Purchaser's

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representations as expressed herein.  The Purchaser understands that the Shares are characterized as "restricted securities" under applicable U.S. federal and state securities laws and that, pursuant to these laws, the Purchaser must hold the Shares indefinitely unless subsequently registered for resale with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification requirements is available.

5.         Legends.

The parties understand and agree that the Shares will not be registered at the time of issuance, and the certificates evidencing the Shares may bear the following legends (or a substantially similar legend) and such other legends as may be required by applicable laws of any state or foreign jurisdiction:

"THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR UNLESS SUCH TRANSACTION IS EXEMPT FROM REGISTRATION UNDER APPLICABLE FEDERAL AND STATE SECURITIES LAWS."

6.         Ownership Limitation.

Notwithstanding anything to the contrary contained in this Agreement, if at any time the Purchaser shall or would be issued shares of Common Stock hereunder, but such issuance would cause the Purchaser (together with its affiliates) to own a number of shares exceeding 9.99% of the number of shares of Common Stock outstanding on such date (the "Maximum Percentage"), the Company must not issue to the Purchaser shares of the Common Stock which would exceed the Maximum Percentage. The shares of Common Stock issuable to the Purchaser that would cause the Maximum Percentage to be exceeded are referred to herein as the "Ownership Limitation Shares". The Company will reserve the Ownership Limitation Shares for the exclusive benefit of the Purchaser. From time to time, the Purchaser may notify the Company in writing of the number of the Ownership Limitation Shares that may be issued to the Purchaser without causing the Purchaser to exceed the Maximum Percentage. Upon receipt of such notice, the Company shall be unconditionally obligated to immediately issue such designated shares to the Purchaser, with a corresponding reduction in the number of the Ownership Limitation Shares.

7.         Miscellaneous.

7.1       Governing Law; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Utah for contracts to be wholly performed in such state and without giving effect to the principles thereof regarding the conflict of laws. Each party consents to and expressly agrees that exclusive venue for the resolution of any dispute arising out of or relating to any this Agreement or the relationship of the parties or their affiliates shall be in

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Salt Lake County or Utah County, Utah. For any litigation arising in connection with this Agreement, each party hereto hereby (i) consents to and expressly submits to the exclusive personal jurisdiction of any state or federal court sitting in Salt Lake County, Utah, (ii) expressly submits to the exclusive venue of any such court for the purposes hereof, and (iii) waives any claim of improper venue and any claim or objection that such courts are an inconvenient forum or any other claim or objection to the bringing of any such proceeding in such jurisdictions or to any claim that such venue of the suit, action or proceeding is improper.

7.2       Entire Agreement; Amendments.  This Agreement constitutes the full and entire understanding and agreement between the parties with regards to the subjects hereof and thereof.  Except as otherwise expressly provided herein, neither this Agreement nor any term hereof may be amended, waived, discharged, or terminated, except by a written instrument signed by the Company and the Purchaser.

7.3       Notices.  Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to be effective upon delivery when delivered (a) personally; (b) by facsimile, provided a positive transmission report is received and a copy is mailed no later than the next business day through a nationally recognized overnight delivery service; (c) by overnight delivery with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications will be,

in the case of the Purchaser:

Tonaquint, Inc.

Attention: John Fife

303 East Wacker Drive, Suite 1040

Chicago, Illinois   60601

jfife@chicagoventure.com

with a copy to (which copy shall not constitute notice):

Hansen Black Anderson Ashcraft PLLC

Attention: Jon Hansen

3051 West Maple Loop Drive

Suite 325

Lehi, Utah   84043

jhansen@hbaalaw.com

and in the case of the Company:

Ecolocap Solutions, Inc.

Attn: Michael Siegel

1250 S. Grove Avenue, Suite 308

Barrington, Illinois   60010

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or at such other address and facsimile number as the receiving party will have furnished to the sending party in writing.

7.4       Survival. The representations, warranties, covenants and agreements made and incorporated by reference herein will survive any investigation made by or on behalf of the Purchaser or the Company, and will survive until the date that is two (2) years following the date of the final Closing that occurs hereunder.

7.5       Successors and Assigns. Except as otherwise expressly provided herein, the provisions hereof will inure to the benefit of, and be binding upon, the respective successors, assigns, heirs, executors and administrators of the parties hereto. The Purchaser may transfer or assign all or any portion of its rights under this Agreement to any person or entity permitted under applicable securities laws.

7.6       Interpretations. All pronouns and any variations thereof will be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons or entity or entities may require. All references to "$" or dollars herein will be construed to refer to United States dollars. The titles of the Sections and subsections of this Agreement are for convenience or reference only and are not to be considered in construing this Agreement. All references to "including" shall be deemed to mean "including, without limitation."

7.7       Severability.  In case any provision of this Agreement is determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired thereby.

7.8       Attorneys' Fees.  In the event of any action at law or in equity to enforce or interpret the terms of this Agreement or collect any amounts owed hereunder, the parties agree that the party who is awarded the most money shall be deemed the prevailing party for all purposes and shall therefore be entitled to an additional award of the full amount of the attorneys' fees and expenses paid by such prevailing party in connection with the litigation, collection and/or dispute without reduction or apportionment based upon the individual claims or defenses giving rise to the fees and expenses. Nothing herein shall restrict or impair a court's power to award fees and expenses for frivolous or bad faith pleading.

7.9       Counterparts. This Agreement may be executed in counterparts, each of which when so executed and delivered will constitute a complete and original instrument but all of which together will constitute one and the same agreement, and it will not be necessary when making proof of this Agreement or any counterpart thereof to account for any counterpart other than the counterpart of the party against whom enforcement is ought.

7.10     No Reliance. The Company acknowledges and agrees that neither the Purchaser nor any of its officers, directors, members, managers, representatives or agents has made any representations or warranties to the Company or any of its officers, directors, representatives, agents or employees except as expressly set forth in this Agreement and, in making its decision to enter into the transactions contemplated by this Agreement, the Company is not relying on any

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representation, warranty, covenant or promise of the Purchaser or its officers, directors, members, managers, agents or representatives other than as set forth in this Agreement.

7.11     Waiver of Jury Trial.  EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS SUCH PARTY MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANYWAY RELATED TO THIS AGREEMENT OR THE RELATIONSHIPS OF THE PARTIES HERETO BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING SUCH PARTY'S RIGHT TO DEMAND TRIAL BY JURY.

7.12     Voluntary Agreement.  The Company has carefully read this Agreement and has asked any questions needed for the Company to understand the terms, consequences and binding effect of this Agreement. The Company has had the opportunity to seek the advice of an attorney of the Company's choosing and is executing this Agreement voluntarily and without any duress or undue influence by the Purchaser or anyone else.

[Signatures On Following Page]

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In Witness Whereof, the parties hereto have executed this Common Stock Purchase Agreement as of the date set forth in the first paragraph hereof.

	
COMPANY:

	 
	 	 
	
ECOLOCAP SOLUTIONS, INC.

	 
	 	 	 
	 	 	 
	 	 	 
	
By:

	
MICHAEL SIEGEL

	 
	 	
Michael Siegel, CEO

	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
PURCHASER:

	 
	 	 
	
TONAQUINT, INC.

	 
	 	 	 
	 	 	 
	 	 	 
	
By:

	
JOHN M. FIFE

	 
	 	
John M. Fife, President

	 

[Signature page to Common Stock Purchase Agreement]

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Exhibit A

SECRETARY'S CERTIFICATE

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