Document:

adc_42.htm

Exhibit 4.2

    

COMMON SHARE PURCHASE WARRANT

 

CONVERTED CARBON TECHNOLOGIES CORP.

 

	
Warrant Shares: •

	
Initial Issuance Date:  •

	  	
Termination  Date:  •

 

THIS COMMON SHARE PURCHASE WARRANT (the “Warrant”) certifies that, for value received, • or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after •(the “Initial Issuance Date”) and on or prior to the close of business on •(the “Termination Date”) but not thereafter, to subscribe for and purchase from CONVERTED CARBON TECHNOLOGIES CORP., a corporation organized under the Canada Business Corporations Act (the “Company”), • common shares (the “Common Shares”) of the capital of the Company (subject to adjustment hereunder, the “Warrant Shares”). The purchase price of one Common Share under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section 1. Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings set forth in this Section 1:

 

“Business Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

“Commission” means the United States Securities and Exchange Commission.

 

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

 

“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

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

“Trading Day” means a day on which the principal Trading Market is open for trading.

 

“Trading Market” means any of the following markets or exchanges on which the Common Shares are listed or quoted for trading on the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, the OTCQB marketplace or the OTC Bulletin Board (or any successors to any of the foregoing).

 

“Transfer Agent” means initially the Company, and following the appointment of a transfer agent for the Company’s Common Shares, such transfer agent and any successor transfer agent of the Company.

All references to “Dollar” or “$” refer to the lawful currency of Canada, or at the election of the Company, to the U.S. dollar equivalent thereof.

 

  

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Section 2. Exercise of Warrant.

 

a) Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Issuance Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto as Exhibit “A”. Within three (3) Trading Days following the date of exercise as aforesaid, the Holder shall deliver or otherwise satisfy the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise in one of the manners specified in Section 2 c). No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise Form within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

b) Exercise Price. The exercise price per Common Share under this Warrant shall be $0.42 if exercised within one year of the Initial Issuance Date, and $0.56 if exercised after the first anniversary of the Initial Issuance Date and before the Termination Date, subject to adjustment hereunder (the “Exercise Price”).

  

c) Payment of Exercise Price. Payment of the Exercise Price shall be made as in accordance with either subsection (i) or (ii) below at the option of the Holder:

(i) Cash Exercise: The Holder may make the required payment due upon exercise of this Warrant in cash, cashier’s check, or wire transfer, equal to the applicable Exercise Price (a “Cash Exercise”).

(ii) Cashless Exercise: The Holder may make the required payment due upon exercise of this Warrant in a cashless exercise transaction pursuant to this subsection (ii) (a “Cashless Exercise”). In order to effect a Cashless Exercise, the Holder shall surrender this Warrant at the principal office of the Company together with a Notice of  Exercise in the form attached as Exhibit “A”, completed and executed, indicating Holder’s election to effect a Cashless Exercise, in which event the Company shall issue Holder a number of Common Shares computed using the following formula:  X = Y (A-B)/A

	
where:

	
X = the number of Common Shares to be issued to Holder;

	
  

	 	
Y = the number of Common Shares for which this Warrant is being Exercised;

	
  

	 	
A = the Market Price of one (1) Common Share (for purposes of this Section 2(c), where “Market Price,” means the VWAP (as defined herein) of one (1) Common Share during the ten (10) consecutive Trading Day period immediately preceding the date of exercise; and

	
  

	 	
B = the Exercise Price.

 

For purposes of Rule 144 under the Securities Actand sub-section (d)(3)(ii) thereof, it is intended, understood and acknowledged that the Common Shares issued upon exercise of this Warrant in a Cashless Exercise transaction shall be deemed to have been acquired at the time this Warrant was issued. Moreover, it is intended, understood and acknowledged that the holding period for the Common Shares issued upon exercise of this Warrant in a Cashless Exercise transaction shall be deemed to have commenced on the date this Warrant was issued.

 

d) Mechanics of Exercise.

 

i. Delivery of Warrant Shares Upon Exercise. The Company shall use best efforts to cause the Warrant Shares purchased hereunder to be transmitted by the Transfer Agent to the Holder by crediting the account of the Holder’s broker with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by Holder or (B) this Warrant is being exercised via Cashless Exercise, and otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is one (1) Trading Day after the latest of (A) the delivery to the Company of the Notice of Exercise and (B) surrender of this Warrant (if required) (such date, the “Warrant Share Delivery Date”). The Warrant Shares shall be deemed to have been issued, and Holder or any other Person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price (or by Cashless Exercise) and all taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(v) prior to the issuance of such shares, having been paid.

 

  

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ii. Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

iii)  Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise. In the event of such rescission, Holder shall promptly execute such documents and take such actions as may be necessary to promptly return to the Company any Warrant Shares that have been issued an delivered to the Holkder following the Warrant Share Delivery Date.

 

iv)  No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

 

v)  Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto as Exhibit “B” duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise.

 

vi) Closing of Books. The Company will not close its shareholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

 

Section 3. Certain Adjustments.

 

a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Share or any other equity or equity equivalent securities payable in Common Shares (which, for avoidance of doubt, shall not include any Common Shares issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding Common Shares into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding Common Shares into a smaller number of shares, or (iv) issues by reclassification of the Common Shares any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of Common Shares (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of Common Shares outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of shareholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

b) If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common Shares (and not to the Holder) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security, then in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of shareholders entitled to receive such distribution by a fraction of which the denominator shall be the ten-day volume-weighted average price (“VWAP”) of the Common Shares on the Trading Market determined as of the record date mentioned above, and of which the numerator shall be such VWAP on such record date less the fair market value at such record date of the portion of such assets or evidence of indebtedness or rights or warrants so distributed applicable to one outstanding Common Share as determined by the Board of Directors of the Company in good faith. In either case the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one Common Share. Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above.

 

c)  Subsequent Rights Offerings. If the Company, at any time while the Warrant is outstanding, shall issue rights, options or warrants to all holders of Common Shares (and not to the Holder) entitling them to subscribe for or purchase Common Shares at a price per share less than the VWAP on the record date mentioned below, then the Exercise Price shall be multiplied by a fraction, of which the denominator shall be the number of Common Shares outstanding on the date of issuance of such rights, options or warrants plus the number of additional Common Shares offered for subscription or purchase, and of which the numerator shall be the number of Common Shares outstanding on the date of issuance of such rights, options or warrants plus the number of shares which the aggregate offering price of the total number of shares so offered (assuming receipt by the Company in full of all consideration payable upon exercise of such rights, options or warrants) would purchase at such VWAP. Such adjustment shall be made whenever such rights, options or warrants are issued, and shall become effective immediately after the record date for the determination of shareholders entitled to receive such rights, options or warrants.

 

  

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d) Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Shares are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Shares, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Shares or any compulsory share exchange pursuant to which the Common Shares are effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding Common Shares (not including any Common Shares held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would otherwise have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of Common Shares or other securities of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of Common Shares for which this Warrant has been exercised and would have been exercisable immediately prior to such Fundamental Transaction. For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one Common Share in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Shares are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 3(d) and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the Common Shares acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the Exercise Price hereunder, adjusted as applicable in accordance with the terms of the Fundamental Transaction, to such shares of capital stock. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such Successor Entity had been named as the Company herein. 

 

e) Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of Common Shares deemed to be issued and outstanding as of a given date shall be the sum of the number of Common Shares (excluding treasury shares, if any) issued and outstanding.

 

f) Notice to Holder.

 

i. Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii. Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Shares, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Shares, (C) the Company shall authorize the granting to all holders of the Common Shares rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any shareholders of the Company shall be required in connection with any reclassification of the Common Shares, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Shares are converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant Register (as defined below) of the Company, at least 10 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Shares of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Shares of record shall be entitled to exchange their Common Shares for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein

 

  

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Section 4. Transfer of Warrant.

 

a) Transferability. Subject to compliance with any applicable law, including the Securities Act and any applicable “blue sky law” (such compliance to be demonstrated by an opinion of counsel acceptable to the Company, in form and substance satisfactory to the Company), this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant in the form attached hereto as Exhibit “B” duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date the Holder delivers an assignment form to the Company assigning this Warrant full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

b) New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the Initial Issuance Date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

c) Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the registered Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

Section 5. Miscellaneous.

 

a) No Rights as Shareholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a shareholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3.

 

b) Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such date of cancellation, in lieu of such Warrant or stock certificate.

 

c) Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day.

 

d) Authorized Shares.

 

The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Shares a sufficient number of shares to provide for the issuance of all of the Warrant Shares that may be issued upon the exercise of any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Shares may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment (or Cashless Exercise)for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its articles of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be necessary to enable the Company to perform its obligations under this Warrant.

 

  

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Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

 

e) Jurisdiction. This Warrant shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.

  

f) Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by provincial, state and federal securities laws.  By exercising this Warrant, the Holder consents to any restrictive legend the Company may require to ensure compliance with the provincial, state and federal securities laws, if applicable.

 

g) Notices. All notices and other communications given or made pursuant to this Warrant shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or (i) personal delivery to the party to be notified; (ii) when sent, if sent by  electronic mail or facsimile during the recipient’s normal business hours, and if not sent during normal business hours, then on the recipient’s next business day; (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt.  All communications shall be sent to the respective parties at their addresses as set forth in the Warrant Register or another address specified by the Holder in writing given pursuant to this subparagraph (h), or, if to the Company, at 4120 Ridgeway Drive, Unit 37, Mississauga, Ontario L5L 5S9, Canada.  If notice is given to the Company, a copy shall also be sent to J.P. Galda & Co., 143 Clover Hollow Road, Easton, PA, 18045.

 

h) Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Shares or as a shareholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

i) Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

 

j) Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

 

k) Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of both the Company and the Holder.

 

l) Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

 

m) Headings. The headings used in this Warrant are for convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

 

********************

 

(Signature Page Follows)

 

  

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

 

 

	  	
CONVERTED CARBON TECHNOLOGIES CORP.

	  	  	  
	  	  	  
	  	
By:  

	
                                      

	  	  	
Name:  Paul Ramsay

	  	  	
Title:  President

 

 

 

  

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EXHIBIT A

NOTICE OF EXERCISE

 

TO: CONVERTED CARBON TECHNOLOGIES CORP.

 

(1)   The undersigned hereby elects to purchase ________ Warrant Shares pursuant to the terms of the attached Warrant (only if exercised in full), and [  ] (A) tenders herewith payment of the Exercise Price in full or [  ] (B) elects to exercise this Warrant by means of a Cashless Exercise, in either case, together with a cash payment of all applicable transfer taxes, if any.

 

(2)   Payment shall take the form of in lawful money of Canada unless the Company has elected to take payment in U.S. dollars and has so notified the Holder.

 

(3)   Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

_______________________________

 

 

The Warrant Shares shall be delivered to the following DWAC Account Number:

 

_______________________________

 

_______________________________

 

_______________________________

 

 

[SIGNATURE OF HOLDER]

 

Name of Holder: ____________________________________________________

Signature of Holder: _________________________________________________

Name of Authorized Signatory of Holder (if applicable): _______________________

Title of Authorized Signatory of Holder (if applicable): ________________________

Date: _____________________________________________________________

 

 

 

  

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EXHIBIT B

 

ASSIGNMENT FORM

 

(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	
Name:

	  	  	  
	  	  	  	
(Please Print)

	  	  	  	  
	
Address:

	  	  	  
	  	  	  	
(Please Print)

	  	  	  	  
	
Dated: _______________ __, ______

	  	  
	  	  	  	  
	
Holder’s Signature:  

	  	  	  
	  	  	  	  
	
Holder’s Address:

	  	  	  

  

 

 

9adc_ex101.htm

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

THIS AGREEMENT made as of the 23 day of April 2014.

BETWEEN,

CONVERTED CARBON TECHNOLOGIES CORP. (hereinafter called “CCT” or the “Corporation”),

OF THE FIRST PART;

And

RICHARD RUSINIAK, (hereinafter called the “Executive"),

OF THE SECOND PART.

WHEREAS, CCT is engaged in the business of cultivating and distributing Algae biomass, powders, tablets and oils (the "Business”);

AND WHEREAS, CCT has agreed to continue to employ the Executive, and the Executive has agreed to accept such continued employment and additional consideration for such employment , subject to the terms, conditions and covenants herein provided;

AND WHEREAS, it is the shared objective of CCT and Executive that CCT become established as a pre-eminent player in the North American market in the Business and it is acknowledged that the Executive is being employed and compensated for the purpose of bringing this about provided that, for greater certainty, the failure to achieve such shared objective shall not constitute a default or breach by the Executive hereunder;

NOW, THEREFORE, in consideration of the mutual covenants herein contained and after good and valuable consideration, CCT and the Executive, intending to be legally bound, agree as follows:

EMPLOYMENT

	
1.  

	
CCT hereby employs the Executive and the Executive agrees to be employed as CEO on the terms and conditions herein contained.

	
2.  

	
The Executive shall serve CCT with such duties and responsibilities as the Board of Directors of CCT may from time to time reasonably assign to him. These duties and responsibilities shall be commensurate with a president of a business of comparable size and type, including, without limiting the generality of the foregoing, the duty to manage, supervise and conduct the ordinary and usual business and affairs of CCT and to advise CCT in connection therewith. Unless the Executive determines otherwise, the Executive shall, throughout the term of his employment hereunder and so long as the Executive is the beneficial owner (directly or indirectly) of at least 5% of the issued and outstanding common shares of CCT, be a director of CCT. During the currency of this Agreement, the Executive shall devote the whole of his time and attention to the Business and shall not, without the consent in writing of CCT, undertake any other business or occupation or become an executive, employee or agent of any other corporation, firm or individual.

 

  

  

  

 

	
3.  

	
The Executive shall not be required to reside outside of the Greater Toronto region in connection with this employment, unless specifically agreed to by the Executive.

COMPENSATION AND BENEFITS

 

	
4.  

	
Effective as of July 1st., 2014, (the “Effective Date”), the Executive shall receive a base salary from CCT of $120,000 per annum (the “Base Salary"), less statutory deductions, payable in equal bi-weekly installments. Such compensation shall be subject to review annually provided that: (a) the Base Salary shall not be reduced; and (b) CCT shall be under no obligation to increase the Base Salary at the time of any review. Upon the Effective Date, CCT shall make, on behalf of the Executive, the maximum allowable contribution to his RRSP (not to exceed $30,000 per year) in each year, as well as providing him with a car allowance of up to $750 per month.

	
5.  

	
The Executive shall be entitled to participate in the benefits made available by CCT generally to its Executives and employees generally from time to time including, but not by way of limitation, medical, hospital, dental and extended health care benefits and life insurance and disability insurance.

	
6.  

	
The Executive shall be entitled to participate in equity and other incentive compensation plans that may be established and administered by the Board of Directors or a Compensation Committee that may be established by the Board of Directors provided, however, that nothing herein shall mandate a particular level of grant or participation.

	
7.  

	
CCT shall pay all normal business expenses as approved under CCT’s normal business practices by CCT's Chief Financial Officer, which are actually and properly incurred by the Executive in furtherance of or in connection with the business of CCT, including, but not by way of limitation, all travel and parking expenses, public relations expenses and all entertainment expenses. If any such expenses are paid in the first instance by the Executive, CCT shall reimburse him therefor, subject to the receipt by CCT of statements and vouchers in a form reasonably satisfactory to CCT’s Chief Financial Officer.

 

	
8.  

	
The Executive shall be entitled to up to five (5) weeks paid vacation in each calendar year; provided that such vacation may be taken only at such times as the Executive and CCT may from time to time reasonably determine having regard to the operations of CCT; and provided further that such vacation not taken within the year may not be carried forward into any subsequent years.

 

  

  

  

 

TERM AND TERMINATION

	
9.  

	
The term of the Executive's employment shall be three (3) years commencing on the Effective Date unless sooner terminated in accordance with the provisions of paragraphs 10 through 13.

	
10.  

	
The term of Executive’s employment and this Agreement shall terminate upon the Executive’s death or Disability.  For the purposes of this Agreement, “Disability” shall mean a physical or mental impairment which substantially limits a major life activity of the Executive and which renders the Executive unable to perform the essential functions of the Executive’s position, even with reasonable accommodation which does not impose an undue hardship on CCT, for ninety (90) days in any consecutive one-hundred eighty (180) day period. The Board reserves the right, in good faith, to make the determination of whether or not a Disability exists for purposes of this Agreement based upon information supplied by the Executive and/or his medical personnel, as well as information from medical personnel (or others) selected by CCT or its insurers.  If the Executive’s employment is terminated pursuant to this paragraph 10, the Executive, or his estate, shall be entitled to payment of accrued salary, awarded but unpaid bonuses and accrued and unused vacation pay through to the date of death or Disability.

	
11.  

	
The Executive’s employment by CCT, and the term, may be terminated at any time during the term by the Executive, on no less than sixty (60) days prior written notice to CCT.  If the Executive’s employment is terminated pursuant to this paragraph 11, the Executive, shall be entitled to payment of accrued salary, awarded but unpaid bonuses and accrued and unused vacation pay through to the date of termination.  Notwithstanding any termination of this Agreement pursuant to this paragraph 11, the provisions of paragraphs 14 through 16 shall survive.

	
a.  

	
If the Executive's employment is terminated by CCT other than upon the expiry of this Agreement, death or Disability, upon a Change in Control pursuant to paragraph 13 or for Just Cause (as defined below), the Executive shall be entitled to an amount equal to twelve (12) months compensation including benefits payable hereunder which shall be increased by one month for each full year of service completed hereunder. In addition, the Executive shall be entitled to be paid the full amount owing in respect of any loans made to the Corporation by the Executive provided that if the Board of CCT determines that making such payment would not be in the best interests of CCT, CCT and the Executive shall negotiate in good faith to agree upon an acceptable repayment schedule. Such payments shall be the only entitlement of the Executive upon termination and the Executive acknowledges that it is fair and reasonable.

	
12.  

	
Notwithstanding anything to the contrary contained herein, the employment of the Executive may at the option of CCT, be terminated by CCT without notice and without pay in lieu of notice for any Just Cause. "Just Cause" shall mean:

 

  

  

  

 

	
a)  

	
The Executive’s willful and material failure to perform his duties hereunder (other than any such failure due to the Executive's physical or mental illness), or the Executive's willful and material breach of his obligations hereunder;

	
b)  

	
The Executive’s engaging in willful and serious misconduct that has caused or is reasonably expected to result in material injury to the Corporation;

	
c)  

	
The Executive’s being convicted of, or entering a plea of guilty or nolo contendre to, a crime that constitutes a felony; or

	
d)  

	
The Executive’s failure or inability to obtain or retain any license required to be obtained or retained by him in any jurisdiction in which the Corporation does or proposes to do business.

and for the purpose of this definition, no act or failure to act on the Executive's part shall be considered "willful" unless done or omitted to be done by him not in good faith and without reasonable belief that his action or omission was in the best interest of CCT. If the Executive’s employment is terminated pursuant to this paragraph 13, the Executive, shall be entitled to payment of accrued salary, awarded but unpaid bonuses and accrued and unused vacation pay through to the date of termination.  Notwithstanding any termination of this Agreement pursuant to this paragraph 12, the provisions of paragraphs 14 through 16 shall survive.

	
13.  

	
In the event of a “Change in Control” and the occurrence of a “Triggering Event" as defined herein, the Executive's employment will be deemed terminated without Just Cause and without reasonable notice and the Executive will be entitled to the payment of $250,000 together with an additional amount equal to one month’s base salary for each full year of service completed pursuant to this Agreement in lieu of such notice.  In addition, any options to purchase shares of the Corporation issued to the Executive but not fully vested on the date of such deemed termination shall vest. A Change in Control means a transaction or series of transactions whereby directly or indirectly:

	
a)  

	
any Person or combination of Persons acting jointly and in concert (other than: (i)  Connectus Inc., or an affiliate or subsidiary of Connectus Inc.; or (ii)  the Executive or a corporation controlled directly or indirectly by the Executive) acquires a sufficient number of securities of the Corporation to affect materially the control of the Corporation and for the  purposes  of  this  Agreement, a Person or combination of Persons acting jointly and in concert, holding shares or other securities in excess of the number which, directly or following the conversion of exercise thereof, would entitle the holders thereof  to cast 20% or more of the votes attached to all shares of the Corporation which may be cast to elect directors of the Corporation, shall be deemed to be in a position to affect materially the control of the Corporation, in which case the Change in Control shall be deemed to occur on the date that is the later of the date that the security representing one more than that required to cast 20% of the votes attached to all shares of the Corporation which may be cast to elect  directors  of  the Corporation  is  acquired or the date on which the persons acting jointly and in concert agree to so act;

	
b)  

	
the Corporation shall consolidate or merge with or into, amalgamate with or enter into a statutory arrangement with, any other Person (other than a corporation controlled directly or indirectly by the Executive) and, in connection therewith, all or part of the outstanding shares of the Corporation which have voting rights attached thereto shall be changed in any way, reclassified or converted into, exchanged or otherwise acquired for shares or other securities of the Corporation or any other Person or for cash or any other property, in which case the Change in Control shall be deemed to occur on the date of closing of the consolidation, merger, amalgamation or statutory arrangement, as the case may be; or

 

  

  

  

 

	
c)  

	
the Corporation shall sell or otherwise transfer, including by way of the grant of a leasehold Interest (or one or more subsidiaries of the Corporation shall sell or otherwise transfer, including without limitation by way of the grant of a leasehold interest) property or assets (A) aggregating more than 50% of the consolidated assets (measured by either book value or fair market value) of the Corporation and its subsidiaries as at the end of the most recently completed financial year of the Corporation or (B) which during the most recently completed financial year  of  the  Corporation  generated, or  during the  then  current  financial year of the Corporation are expected to generate, more than 50% of the consolidated operating income or cash flow of the Corporation and its subsidiaries, to any other Person or Persons, in which case the Change in Control shall be deemed to occur on the date of transfer of the assets representing one dollar more than 50% of the consolidated assets in the case of clause (A) or 50% of the consolidated operating income or cash flow in the case of clause (B),as the case may be:

	
d)  

	
other than a transaction  or series of  transactions  which involves a sale of securities or assets of the Corporation with which the Executive is involved as a purchaser in any manner, whether  directly  or  indirectly, and  whether by way of participation in  a corporation or partnership that is a purchaser or by provision of debt, equity or purchase leaseback financing, but excluding where the Executive's sole involvement with such a purchase is the ownership of an equity interest of less than 5% of the acquirer where the acquirer is a public entity, and the  Executive and persons acting jointly  and in concert with the Executive hold securities of the acquirer which, directly, or following the conversion or exercise thereof, would entitle the holders thereof to cast 5% or more of the votes attached to all shares or other interests of the acquirer which may be cast to elect directors or the management of the acquirers;

"Triggering Event" means any one of the following events which occurs without the express agreement in writing of the Executive:

	
a)  

	
an adverse change in any of the duties, powers, rights, discretion, salary or  benefits of the Executive as they exist immediately prior to the Change of Control;

	
b)  

	
 a diminution of the title of the Executive as it exists immediately to the Change of Control;

	
c)  

	
a change in the person or body to whom the Executive reports immediately prior to the Change of Control, except if such person or body is of equivalent rank or stature or such change is as a result of the resignation or removal of such person or the persons comprising such body, as the case may be, provided that this shall not include a change resulting from a promotion in the normal course of business: or,

	
d)  

	
 a change in the location at which the Executive is regularly required immediately prior to the Change of Control to carry out the terms of his employment with the Corporation.

  

  

  

 

CONFIDENTIALITY AND NON-COMPETITION

	
14.  

	
All confidential records, material, information and all trade secrets concerning the business or affairs of CCT obtained by the Executive in the course of his employment shall remain the exclusive property of CCT.  During the Executive's employment or at any time thereafter, the Executive shall not divulge the contents of such confidential records, material, information or trade secrets to any person, firm or corporation other than to CCT or CCT’s qualified employees and advisors and the Executive shall not, following the termination of his employment hereunder for any reason, use the contents of such confidential records, material, information or trade secrets for any purpose whatsoever. This paragraph shall not apply to any confidential  records, material, information or trade secrets which:

	
a)  

	
 is or becomes publicly known through the lawful action of any third party;

	
b)  

	
  is disclosed  without restriction to the Executive by a third party;

	
c)  

	
  has been made available by CCT directly or indirectly to a third party without obligation of confidentiality; or

	
d)  

	
 the Executive is obligated to produce as a result of a court order or pursuant   to governmental action, provided that CCT shall have been given written notice of such court order or governmental action and an opportunity to appear and object.

	
15.  

	
The Executive covenants and agrees with CCT that he will not (without the prior written consent of CCT) directly or indirectly, in any manner whatsoever, including without limitation, either individually or in partnership or jointly or in conjunction with  any other  person or  persons, firm, association, syndicate, company or corporation, as principal, agent, shareholder, Executive or in any other manner whatsoever during the term of his employment  hereunder and for a period ending two  (2) years following the date of the termination of his employment (for any reason) carry on or be engaged in a business which is competitive with the business then carried on by CCT (a “Competitive Business” includes the business of the cultivation and distribution of Algae biomass, powders, tablets and oils in any metropolitan area in the world where CCT is carrying on such business, now or in the future, or where CCT was contemplating carrying on such business, without limitation, as discussed in CCT's business plan in existence, at the time of the termination of the executive’s employment, or be concerned with or interested  in or  lend  money  to, guarantee  the  debts or obligations of or permit his name or any part thereof to be used by any person, persons, firm, association, syndicate, company or corporation  engaged  or  concerned  with or interested in a Competitive Business.

	
16.  

	
Notwithstanding the provisions of paragraph 16, the Executive may invest in stocks, bonds or other securities of any Competitive Business (but without participating in such Competitive Business) if:

	
a)  

	
the stocks, bonds or other securities of the Competitive Business are listed on any national or regional securities exchange or are publicly traded over the counter;

 

  

  

  

 

	
b)  

	
his investment  in the  Competitive  Business does not exceed, in the case of any class of capital stock five percent (5%) of the issued and outstanding shares, or in  the case of  bonds or other securities, five percent (5%) of the aggregate principal amount hereof issued and outstanding; and

	
c)  

	
such investment would not prevent, directly or indirectly, the transaction of business by CCT with any province of Canada or any governmental subdivision,  agency or instrumentality thereof by virtue of any statute, law, regulation or administrative practice.

MISCELLANEOUS

	
17.  

	
Except for any matters for which this Agreement expressly provides otherwise, any matter in dispute under or relating to this Agreement shall, unless settled in the manner provided by paragraph 18(a), be finally resolved by binding arbitration.

	
a)  

	
The parties wish to foster a mutually beneficial relationship under this Agreement and to encourage an informal mechanism for the resolution of disputes.  Either party may at any time notify the other party of an intention to discuss or dispute any matter connected with this Agreement. Within 5 days of receiving such notification, the parties shall each appoint a representative knowledgeable on the topic at issue and such representatives shall meet within the following 5 days in an attempt to settle the matter at issue. If the representatives of the parties are unable to resolve the matter at issue within 5 days of their first meeting, then either party may refer the matter at issue to binding arbitration in accordance with this paragraph 18.

	
b)  

	
 In the event that the parties are unable to resolve a disagreement or dispute pursuant to section 16(a), either party may serve a notice on the other party of its  intention to formally arbitrate, pursuant to the provisions  of  the  Arbitration  Act  1991  (Ontario)  stating  with  reasonable particularity the subject matter of such dispute. Within 15 days of service of such notice the parties shall appoint a single Arbitrator. Should the parties be unable to agree upon a single arbitrator within such 15 day period, then either party may at any time thereafter select its own arbitrator and may serve notice upon the other party to select an arbitrator.  Upon receipt of such notice the other party shall have 5 days in which to appoint an arbitrator. The two arbitrators thus selected shall appoint a third arbitrator within 5 days of the appointment of the second arbitrator, and the three arbitrators shall constitute a board of arbitrators (herein referred to as called the “Board of Arbitrators”) which shall determine the matter. If either party shall fail to name an arbitrator within 5 days at receipt of a demand to do so upon application by the party that has appointed an arbitrator the second arbitrator shall be appointed by any Judge of the Ontario Superior Court of Justice. If the two arbitrators shall fail to appoint the third arbitrator, then upon application by either party such third arbitrator shall be appointed by any Judge of the Ontario Superior Court of Justice. The arbitrator or arbitrators selected to act hereunder shall be qualified by education and training to pass upon the particular question in dispute. Unless otherwise agreed by the parties, each party shall bear the costs it incurs in connection with the arbitration and all other costs of the arbitration shall be borne equally by the parties hereto.

	
c)  

	
The decision of the single arbitrator or the Board of Arbitrators or the majority thereof shall be communicated to the parties not later than 30 days after the close of argument in the arbitration, subject to any reasonable delay due to unforeseen circumstances. The decision of the single arbitrator or of the majority of the Board of Arbitrators, as the case  may be, shall be drawn up in writing and signed and shall, notwithstanding anything to the contrary contained in the Arbitration Act of the Province of Ontario and subject to the specific  provisions of  and limitations in this Agreement, be final and binding upon the parties hereto and all persons claiming through or under them as to any question or questions so submitted to arbitration, and the parties shall perform the terms and conditions thereof.  Judgment upon the award rendered by the single arbitrator or the majority of the Board of Arbitrators, as the case may be, may be entered in any Court having jurisdiction and thereupon execution or other legal process may issue thereon.

 

  

  

  

 

	
d)  

	
The obligations of the patties under this Agreement shall continue to be performed during the dispute resolution proceedings contemplated by this section.

	
18.  

	
In the event that any clause or option of any covenant herein should be unenforceable or be declared invalid for any reason whatsoever, such enforceability or invalidity shall not affect the enforceability or validity of the remaining portions of the covenants and such unenforceable or invalid portions shall be severable from the remainder of this Agreement. The Executive hereby acknowledges and agrees that all restrictions contained in this Agreement are reasonable and valid and all defenses to the strict enforcement thereof by CCT are hereby waived by him.

	
19.  

	
Subject to the provisions of the Business Corporations Act (Ontario), CCT agrees to indemnify and save the Executive harmless from and against all costs,  charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by him in respect of any civil, criminal or administrative action or proceeding to which the Executive is made a party by reason of having been a director or officer of CCT, if the Executive acted honestly and in good faith with a view to the best interests of CCT.

	
20.  

	
CCT covenants and agrees to obtain, as soon as possible after the Effective Date appropriate and commercially reasonable liability insurance for the Executive with respect to his being a director and officer of CCT.

	
21.  

	
This Agreement constitutes and expresses the whole agreement of the parties hereto with reference to the employment of the Executive by CCT, and with reference to any matters or things herein provided for or hereinbefore discussed or mentioned with reference to such employment. All promises, representations, collateral agreements and understandings relative thereto not incorporated herein are hereby superseded and cancelled by this Agreement.

	
22.  

	
All notices, request, demands or other communications by the terms hereof required or permitted to be given by one party to the other shall be given in writing by personal delivery or by registered mail, postage prepaid, addressed to the other party or delivered to the other party as follows:

  

  

  

 

to CCT at:

4120 Ridgeway Drive, Unit 37

Mississauga ON L5L 5S9

Attention: Paul Ramsay

Facsimile No.: (416) 352-5712

to the Executive at:

2285 Lakeshore Drive West, Suite 1601

Toronto ON M8V 3X9

or such other addresses as may be given by either of them to the other in writing from time to time, and such notices, requests, demands, acceptances or other communications shall be deemed to have been received when delivered or, if mailed, on the second business day after mailing thereof; provided that if any such notice, request, demand, acceptance or other communication shall have been mailed and if regular mail service shall be interrupted by strikes or other irregularities before the second business day after the mailing thereof, such notice, request, demand, acceptance or other communication shall be deemed not to have been received unless the same has been personally delivered and served on the party to whom the same is addressed.

	
23.  

	
This Agreement shall be governed by and interpreted under the laws of the Province of Ontario.

	
24.  

	
All dollar amounts referred to in this Agreement are expressed in US funds.

	
25.  

	
This Agreement is personal to the Executive and may not be assigned by him. Upon notice to the Executive, this Agreement may be assigned to an affiliate of the Corporation, provided that notwithstanding such assignment, the Corporation continues to guarantee the performance by such assignee of its obligations hereunder and provided that the person to which the Executive is assigned is within 50 miles of the boundaries of Metropolitan Toronto.

	
26.  

	
Except as aforesaid, this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assignees, including, in the case of the Executive, his heirs, executors and administrators.

	
27.  

	
Time shall be of the essence of this Agreement and of every part hereof.

 

 

  

  

  

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

 

Converted Carbon Technologies Corp.

 

 

 

By: 

 

Paul Ramsay, Director

 

 

 

Executive

 

                        

 

Richard Rusiniak,

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