Document:

EXHIBIT 10.10.BB

 

DEBT CONVERSION AGREEMENT

 

THIS DEBT
CONVERSION AGREEMENT (the “Agreement”) is made and entered into effective as of
the 22nd day of July, 2003, by and between ANTHONY
M. FRANK, TTEE, ANTHONY M. FRANK DEFINED BENEFIT PENSION PLAN, UNDER AGREEMENT
DATED 12/01/98, FBO:  SHIRLEY M. PEGG,
(hereinafter referred to as “Buyer”) and ELECTROPURE, INC., a California
corporation (hereinafter referred to as “Electropure” or the “Company”).

 

R E C I T A L S

 

WHEREAS, Buyer
loaned the Company Four Hundred Thousand Dollars ($400,000) under the terms of
that certain 8% Convertible Term Note dated September 16, 2001 (the “Term
Note”).

 

WHEREAS, as of
June 30, 2003, a total of $8,000.00 in interest accrued under the above Term
Note is due and payable to Buyer by the Company.

 

WHEREAS, Buyer
wishes to convert all of the interest accrued on the Term Note through June 30,
2003 into shares of Electropure, Inc. Common Stock and the Company wishes to
issue such shares to extinguish the debt owed Buyer.

 

NOW, THEREFORE,
in consideration of the foregoing and of the mutual obligations herein
contained, it is agreed as follows:

 

1.             CONVERSION

 

(a)           On the effective date set forth
above, Buyer hereby converts all of the $8,000.00 in interest accrued on the
Term Note into Shares of Electropure, Inc. Common Stock, $0.01 par value, at an
effective conversion rate of $0.20 per share, for a total of 40,000 Shares (the
“Shares”).

 

(b)           The Shares shall have the rights,
preferences, privileges, restrictions and other terms set forth in the By-laws
of the Company.

 

(c)           Upon conversion hereby and pursuant
to the Debt Conversion Agreement previously entered into between the parties,
Buyer acknowledges that all interest accrued and due through June 30, 2003
pursuant to the terms of the 8% Convertible Term Note entered into between the
parties on September 16, 2002 has been satisfied in full and that any default
by Electropure for failure to pay interest due on the Term Note through June
30, 2003 has been cured.

 

2.             REPRESENTATIONS
AND WARRANTIES OF BUYER           Buyer represents and warrants to the Company:

 

1<PAGE>

                                                                     Exhibit 4.1

                             CERTIFICATE OF TRUST OF
                     Chase Manhattan Auto Owner Trust 2003-B

         This Certificate of Trust of Chase Manhattan Auto Owner Trust 2003-B
(the "Trust"), dated as of June 23, 2003 is being duly executed and filed by
Wilmington Trust Company, a Delaware banking corporation, as trustee, to form a
statutory trust under the Delaware Statutory Trust Act (12 Del. C. ss.3801 et
seq.).

         1. Name. The name of the statutory trust formed hereby is Chase
Manhattan Auto Owner Trust 2003-B.

         2. Delaware Trustee. The name and business address of the trustee of
the Trust in the State of Delaware is WILMINGTON TRUST COMPANY, Rodney Square
North, 1100 North Market Square, Wilmington, Delaware 19890-0001, Attn:
Corporate Trust Administration.

         3. This Certificate of Trust shall be effective as of the date filed.

         IN WITNESS WHEREOF, the undersigned, being the sole trustee of the
Trust, has executed this Certificate of Trust as of the date first above
written.

                                            WILMINGTON TRUST COMPANY, not in its
                                            individual capacity but solely as
                                            trustee of the Trust

                                            By:   /s/ Janel R. Havrilla
                                               -------------------------
                                               Name:  Janel R. Havrilla
                                               Title: Financial Services Officer<PAGE>

                                                                     Exhibit 4.2

         TRUST AGREEMENT, dated as of June 23, 2003, between Chase Manhattan
Bank USA, National Association, as Seller, and Wilmington Trust Company, a
Delaware banking corporation, not in its individual capacity but solely as Owner
Trustee (the "Owner Trustee"). The Seller and the Owner Trustee hereby agree as
follows:

         1. The trust created hereby shall be known as "Chase Manhattan Auto
Owner Trust 2003-B", in which name the Owner Trustee may engage in the
transactions contemplated hereby, make and execute contracts, and sue and be
sued.

         2. The Seller hereby assigns, transfers, conveys and sets over to the
Owner Trustee the sum of $1. The Owner Trustee hereby acknowledges receipt of
such amount in trust from the Seller, which amount shall constitute the initial
trust estate. The Owner Trustee hereby declares that it will hold the trust
estate in trust for the Seller. It is the intention of the parties hereto that
the Trust created hereby constitute a statutory trust under Chapter 38 of Title
12 of the Delaware Code, 12 Del. C. ss.3801 et seq., and that this document
constitutes the governing instrument of the Trust. The Owner Trustee is hereby
authorized and directed to execute and file a certificate of trust with the
Delaware Secretary of State in the form attached hereto.

         3. The Seller and the Owner Trustee will enter into an amended and
restated Trust Agreement, satisfactory to each such party, to provide for the
contemplated operation of the Trust created hereby. Prior to the execution and
delivery of such amended and restated Trust Agreement, the Owner Trustee shall
not have any duty or obligation hereunder or with respect to the trust estate,
except upon the written direction of the Seller to take such action as
determined by the Seller to be necessary to obtain prior to such execution and
delivery any licenses, consents or approvals required by applicable law or
otherwise.

         4. This Trust Agreement may be executed in one or more counterparts.

         5. The Owner Trustee may resign upon thirty days prior notice to the
Seller.

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Trust Agreement
to be duly executed by their respective officers hereunto duly authorized, as of
the day and year first above written.

                                     CHASE MANHATTAN BANK USA,
                                     NATIONAL ASSOCIATION, as Seller

                                     By:   /s/ Andrew T. Semmelman
                                         -----------------------------
                                         Name:  Andrew T. Semmelman
                                         Title: Senior Vice President

                                     WILMINGTON TRUST COMPANY, not
                                     in its individual capacity but solely as
                                     Owner Trustee

                                     By:    /s/ Janel R. Havrilla
                                         -----------------------------
                                         Name:  Janel R. Havrilla
                                         Title: Financial Services Officer<PAGE>

EXHIBIT 10.15

             AGREEMENT FOR BUSINESS DEVELOPMENT CONSULTING SERVICES

February 1, 2003

Mr. Cristino L. Perez Chief Financial Officer Resolve Staffing, Inc.
105 North Falkenburg Road, Suite B
Tampa, Florida 33619

Dear Cris:

On behalf of Pinnacle Corporate Services, LLC ("PCS"), I wish to thank Resolve
Staffing, Inc. and its owners, shareholders, and affiliates (collectively, the
"Company") for the opportunity to assist you as an outside business consultant
in connection with the Company's growth and expansion efforts. The purpose of
this letter (the "Agreement") is to set forth the terms and conditions under
which PCS agrees to serve the Company as an outside business consultant.

1.   SERVICES. PCS shall use its best efforts to perform the following services
     in a timely manner: (a) become familiar with the business and operations of
     the Company and review and analyze the Company's formal and informal
     strategic, product marketing, financial, and business plans; (b) in
     conjunction with the Company, prepare a formal strategic business plan and
     financial model and provide updates to the strategic business plan as
     needed during the term of this Agreement; (c) locate and recruit outside
     candidates for the Company's Board of Directors; (d) locate, recruit and
     secure the employment services of qualified individuals with the requisite
     staffing industry experience to permanently fill executive management and
     sales positions within the Company; (e) advise the Company in strategic
     planning matters and assist in the implementation of short- and long-term
     strategic planning and business development initiatives in order to
     increase the Company's staffing services revenues; and (f) provide advice
     to and consult with the Company concerning its management, the marketing of
     its staffing services, its corporate organization and its overall
     development, progress, needs and condition.

     PCS has agreed to devote 50 - 60 hours per month to fulfilling its
obligations under this Agreement.

2.   TERM. The term of this Agreement shall commence upon the execution of this
     Agreement by the Company and PCS (the "Effective Date") and end on the
     one-year anniversary thereafter unless terminated earlier according to
     paragraph 6. Notwithstanding the foregoing (a) paragraphs 7, 8, 9, 10, 11,
     12, and 13 shall survive any termination or expiration of this Agreement,
     and (b) PCS shall have no obligation to provide its services hereunder
     until the shares are delivered to PCS in accordance with paragraph 4 of
     this Agreement.

3.   CONSIDERATION. In consideration for the valuable advice and services to be
     provided to the Company by PCS under this Agreement, the Company agrees to
     pay PCS a fee of 950,000 restricted shares of the Company's common stock,
     $.0001 par value, (the "Shares") with the additional restrictions (the
     "Vesting Period") set forth below. All compensation due to PCS under the
     terms of this Agreement shall be deemed earned upon execution hereof. All
     fees paid to PCS are strictly NON-REFUNDABLE.

     The Company has requested that PCS accept equity consideration in lieu of
     cash to perform the services under this Agreement due to the fact that the
     Company does not currently posses the cash to pay vendors for these
     services and it has been unable to locate other suitable vendors to perform
     these services.

     The Company certifies that the Shares being issued to PCS pursuant to this
     Agreement are not in connection with any offer or sale of securities in a
     capital raising transaction and these Shares are not being issued in
     connection with any mergers or acquisitions transactions. There are no side
     agreements between the Company and PCS, whether verbally or in writing, for
     PCS to provide any services not listed in this Agreement in exchange for
     the Shares being issued.

                                   Page 1 of 5
<PAGE>

     The Company and PCS agree that at the time of the execution of this
     Agreement the cash value of the services to be performed by PCS is greater
     than the current value of the equity consideration being paid to PCS. PCS
     acknowledges that it understands that the value of the Company's equity may
     be volatile and there is a significant risk that PCS may not be able to
     realize the cash value of the services it is required to perform under this
     Agreement. Furthermore, the Company has agreed that in exchange for PCS'
     willingness to assume the risk of accepting all restricted equity
     consideration and additionally for PCS' efforts to date in recruiting and
     securing the employment of Wanda Dearth as the Company's Chief Executive
     Officer, the Company will pay a portion of PCS' compensation up front in
     the form of restricted shares.

      The Vesting Period shall commence on the Effective Date of the Agreement.

     (a)  100,000 shares will vest immediately upon the execution of this
          Agreement;
     (b)  100,000 shares will be fully vested after 30-days;
     (c)  100,000 shares will be fully vested after 60-days;
     (d)  100,000 shares will be fully vested after 120-days;
     (e)  100,000 shares will be fully vested after 180-days;
     (f)  100,000 shares will be fully vested after 210-days;
     (g)  100,000 shares will be fully vested after 270-days; and
     (h)  250,000 shares will be fully vested after 360-days.

     At the end of each such Vesting Period, PCS shall have the right to receive
     full benefit of the shares not already vested for which the Vesting Period
     has expired.

     At the time of the execution of this Agreement, the cash value of the
     shares being paid to PCS over the term of the Agreement is roughly
     $133,000.

4.   DELIVERY OF CONSIDERATION. Upon the Effective Date, the Company shall
     deliver certificates representing 950,000 restricted Shares to PCS.

5.   REPRESENTATIONS AND WARRANTIES. The Company represents and warrants to PCS
     that the statements contained in this paragraph 5 are correct and complete
     as of the Effective Date:

          (a) The Company is a corporation duly organized, validly existing and
     of active status under the laws of the State of Nevada.

         (b) The Company has full corporate power and authority to (i) conduct
     its business as now conducted and as proposed to be conducted and to own,
     use, license, and lease its assets and properties and (ii) enter into this
     Agreement and to consummate the transactions contemplated herein
     (including, without limitation, the issuance and registration of the
     Shares). Neither the execution of this Agreement nor the consummation of
     the transactions contemplated in this Agreement by the Company will
     constitute or cause a breach or violation of any covenants or obligations
     binding upon it or affecting any of its properties. No approval of or
     filing with any federal, state, or local court, authority or administrative
     agency is necessary to authorize the execution of this Agreement by the
     Company or the consummation of the transactions contemplated in this
     Agreement by the Company. There is no judgment, decree, injunction, rule,
     or order of any court, governmental department, commission, agency,
     instrumentality, or arbitrator outstanding against the Company that could
     reasonably be expected to have a material adverse effect on the ability of
     the Company to fulfill its obligations under this Agreement.

         (c) The Shares to be issued pursuant to this Agreement will be duly
     authorized, validly issued fully paid and nonassessable, and no stockholder
     of the Company has preemptive rights with respect to the Shares. The Shares
     will be delivered free and clear of all liens, encumbrances, and other
     claims or restrictions, except as provided herein.

                                   Page 2 of 5
<PAGE>

         (d) Neither the Company nor any person acting on its behalf has taken
     any action (including, without limitation, any offering of any securities
     of the Company under circumstances that would require, under the Securities
     Act of 1933, as amended (the "Act"), the integration of such offering with
     the offering, issuance, and sale of the Shares) that might reasonably be
     expected to subject the offering, issuance, or sale of the Shares to the
     registration requirements of Section 5 of the Act.

6. TERMINATION. This Agreement may be terminated at any time:

          (a) by mutual written agreement of the parties;

          (b) by the Company (i) upon a willful breach by PCS of any of
     provisions of this Agreement if such breach results in material injury to
     the Company or (ii) upon 30 days' prior written notice to PCS; (c) by PCS
     (i) if any representation or warranty of the Company is not true and
     correct in all material respects as of the Effective Date, (ii) if the
     Company does not fully comply with any covenant or agreement in this
     Agreement, (iii) upon a Change of Control (as defined below) in the
     Company, or (iv) upon 30 days' prior written notice to the Company. This
     Agreement shall not be terminated by either party for the reasons set forth
     in 6(b)(i) or 6(c)(i)-(iii), without the terminating party (a) giving
     notice to the other party setting forth in reasonable detail the reasons
     for the terminating party's intention to terminate and (b) providing an
     opportunity to cure, if capable of being cured, within 15 days after the
     non-terminating party's receipt of such notice.

7.   EFFECT OF TERMINATION. Without limiting any other remedies available to the
     terminating party for any willful or intentional breach of this Agreement,
     (a) if (i) the Company shall terminate this Agreement pursuant to paragraph
     6(b)(i) or (ii) PCS shall terminate this Agreement pursuant to paragraph
     6(c)(iv), then PCS shall return to the Company any Shares that have not yet
     vested as described in paragraph 3 on the date of such termination and (b)
     if (i) the Company shall terminate this Agreement pursuant to paragraph
     6(b)(ii) or (ii) PCS shall terminate this Agreement pursuant to paragraphs
     6(c)(i), (ii), or (iii), then all restrictions on the Shares as described
     on Schedule A shall terminate. If the Company terminates the Agreement
     before the end of the term as defined in paragraph 2 for any reason, then
     the Company agrees to pay PCS a termination fee of an 100,000 shares of its
     common stock in additional to any fees already earned by PCS.

8.   EXPENSES. In addition to the consideration set forth in paragraph 3, the
     Company shall reimburse PCS and its affiliates, upon request, for all
     reasonable out-of-pocket expenses incurred in connection with the
     performance by PCS of its obligations under this Agreement. Out-of-pocket
     expenses may include necessary out-of-town travel agreed to by the Company
     (including meals and lodging), database services, courier charges, and fees
     and expenses of third parties such as legal counsel, etc. The Company shall
     approve such expenses in advance.

9.   REGISTRATION. The Company shall prepare and file a registration statement
     on or before December 31, 2003, providing for the sale of all the Shares
     paid to PCS that are not subject to the Vesting Period described in
     paragraph 3. The Company will pay all expenses in connection with the
     registration of the Shares pursuant to paragraph 3, including, without
     limitation, all Securities and Exchange Commission registration and filing
     fees, costs, fees and expenses of compliance with securities or blue sky
     laws, and fees and expenses of the Company's counsel.

10.  CHANGE OF CONTROL. In the event of a Change of Control, all of the Shares
     described in paragraph 3 shall immediately vest to PCS. "Change of Control"
     means: (a) the adoption of a plan of reorganization, merger, share
     exchange, or consolidation of the Company with one or more other
     corporations or other entities as a result of which the holders of the
     Company's common stock as a group would receive less than 50% of the voting
     power of the capital stock or other interests of the surviving or resulting
     corporation or entity (unless such plan is subsequently abandoned); (b) the
     adoption by the Company's shareholders of a plan of liquidation or the
     approval of the dissolution of the Company (unless such liquidation or
     dissolution is subsequently abandoned); (c) the approval by the Company's
     shareholders of an agreement providing for the sale of all or substantially
     all the assets of the Company (unless such sale is subsequently abandoned);
     (d) the acquisition of more than 30% of the outstanding shares by any
     person within the meaning of Rule 13(d)(3) under the Act if such
     acquisition is not preceded by a prior expression of approval by the Board;
     or (e) one-third or more of the Company's Board of Directors are not
     Continuing Directors. A "Continuing Director" means any member of the Board
     of Directors who was a member on the Effective Date and any director who
     was recommended for election or is elected to fill a vacancy as a director
     by a majority of the Continuing Directors then on such Board.

                                   Page 3 of 5
<PAGE>

11.  INDEMNITY. The Company agrees to indemnify, defend, and hold harmless PCS
     and its affiliates, directors, officers, counsel, employees, agents,
     members, managers, successors, assigns, and controlling persons (as defined
     in the Act) (each, an "Indemnified Party") from and against any and all
     losses, claims, damages, costs, expenses, and liabilities (including any
     investigatory, legal, and other expenses incurred as they are incurred by
     an Indemnified Party in connection with preparing for or defending any
     action, claim, or proceeding, whether or not resulting in any liability)
     (collectively, "Indemnifiable Losses") to which any Indemnified Party may
     become subject or liable relating to or arising out of (a) the Agreement or
     the services to be performed under the Agreement or any agreement between
     the parties to this Agreement, (b) any transactions referred to in the
     Agreement or any transactions arising out of the transactions contemplated
     by the Agreement, (c) any inaccuracy in or breach in the representations
     and warranties of the Company contained in this Agreement, and (d) any
     failure of the Company to perform its obligations under this Agreement,
     provided that the Company shall not be liable to an Indemnified Party in
     any such case to the extent that any such Indemnifiable Loss is found in a
     final, nonappealable judgment by a court of competent jurisdiction to have
     resulted as a direct and proximate cause from the willful misconduct or
     gross negligence of an Indemnified Party. No Indemnified Party shall be
     liable, responsible, or accountable in damages and costs and expenses
     (including attorneys' fees) under this Agreement except for any liability
     for losses, claims, damages, or liabilities finally judicially determined
     to have resulted solely and exclusively from actions taken or omitted to be
     taken as a direct result of such Indemnified Party's gross negligence or
     willful misconduct. If for any reason, except as specifically provided
     herein, the foregoing indemnity for Indemnifiable Losses is unavailable to
     an Indemnified Party or insufficient to fully hold any Indemnified Party
     harmless, then the Company agrees to contribute to the amount paid or
     payable by such Indemnified Party as a result of such Indemnifiable Losses
     in such proportion as is appropriate to reflect the relative benefits
     received by and fault of the Company, on the one hand, and the relative
     benefits received by and fault of PCS, on the other hand. The Company
     agrees that it will not settle, compromise, or consent to the entry of any
     judgment in any pending or threatened claim, action, or proceeding in
     respect of which indemnification could be sought under the indemnification
     provision of this Agreement (whether or not PCS or any other Indemnified
     Party is an actual or potential party to such claim, action, or
     proceeding), unless such settlement, compromise, or consent includes an
     unconditional release of each Indemnified Party from all liability arising
     out of such claim, action, or proceeding.

12.  LEGAL MATTERS. This Agreement shall be interpreted under and governed by
     the laws of the State of Florida. Any controversy, dispute, or claim
     between the parties relating to this Agreement shall be resolved by binding
     arbitration in Hillsborough County, Florida, in accordance with the rules
     of the American Arbitration Association. The parties agree that in the
     event that any controversy, dispute, or claim between the parties relating
     to this Agreement, is resolved by binding arbitration, the prevailing
     party, as determined by the arbitrator's award, shall be entitled to
     reimbursement of all expenses including reasonable attorney's fees;
     provided that in no event shall the arbitrator have the authority to award
     punitive damages.

13.  REPRESENTATION. PCS makes no representations, whether expressed or implied,
     and does not guarantee that it will be able to secure the employment
     services of qualified executive management personnel and/or outside
     directors on the Company's behalf as a result of the services furnished
     under this Agreement. The Company acknowledges that PCS has informed it
     that neither PCS nor any of its members, managers or employees provides any
     legal advice or counsel. The Company also specifically acknowledges that it
     has been given notice by PCS that PCS is not a licensed securities
     broker-dealer and PCS is not required under this Agreement or any side
     agreements, whether verbally or in writing, to sell securities on behalf of
     the Company or any issuer affiliated with the Company. Furthermore, PCS
     does not intend to perform services that are defined in the Securities
     Exchange Act of 1934 as being exclusive to licensed broker-dealers.
     Moreover, the Company acknowledges that PCS does not intend to negotiate
     raising of capital transactions, does not intend to directly solicit
     purchasers of the Company's common stock, will not hold any funds or
     securities in a capital raising transaction, and the compensation due to
     PCS is not based on a specified percentage of any actual or proposed funds
     raised or any mergers or acquisitions transactions. PCS is not required
     under this Agreement or any side agreement, whether verbally or in writing,
     to promote or maintain a market for the Company's securities. The duties of
     PCS shall not include accounting, appraisal, computer network design or
     valuation

                                   Page 4 of 5
<PAGE>

     services, which shall be procured by the Company at its own expense. The
     Company shall fully cooperate with any company affiliated with PCS and
     shall furnish to PCS and such affiliated company complete and accurate
     current and historical business information. The Company represents and
     warrants to PCS that all information to be provided to PCS will not contain
     any untrue statements of a material fact or omit to state a material fact
     necessary to make the statements therein not misleading. The Company shall
     promptly inform PCS of any changes or events that may materially affect the
     Company's business.

14.  INDEPENDENT CONTRACTOR. PCS is an independent contractor and may engage in
     other business activities. Since PCS is an independent contractor, nothing
     in this Agreement shall be interpreted to constitute that PCS is an agent
     of, employee of, or partner of the Company, nor shall either party have any
     authority to bind the other. In its capacity as an independent contractor,
     PCS agrees, and the Company agrees, that PCS has the sole right to control
     and direct the means, manner, and method by which the services required by
     this Agreement will be performed and the Company shall not withhold from
     PCS's compensation any amount that would normally be withheld from an
     employee's pay.

15.  ENTIRE AGREEMENT. This Agreement and the schedules and exhibits to this
     Agreement constitute the entire agreement between the parties pertaining to
     the subject matter hereof and supersedes and cancels any prior
     communications, representations, understandings, and agreements between the
     parties. No modifications of or changes to this Agreement shall be binding,
     nor can any of its provisions be waived, unless agreed to in writing by the
     parties. There are no side agreements between PCS and the Company, whether
     verbally or in writing, for PCS to provide any other services to the
     Company.

16.  CONFIDENTIALITY. The parties agree that the terms and all of the
     encompassing components of this Agreement shall be kept confidential,
     unless this information is required to be disclosed pursuant to any
     inquiries by federal, state, or local law enforcement or pursuant to
     paragraph 9.

If the foregoing is acceptable to you, please execute this Agreement in the
place provided below.

Very Truly Yours,

By:/s/ Christopher D. Gilcher
       -------------------------------------
      Christopher D. Gilcher
      Managing Partner

ACCEPTED AND AGREED TO THIS _________ DAY OF ______________, 2003.

Resolve Staffing, Inc.

By: /s/ Cristino L. Perez
        ------------------------------------
      Cristino L. Perez,
      Chief Financial Officer and Member of the Board

                                   Page 5 of 5

<PAGE>

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