Document:

agreement.htm

MEMBERSHIP INTEREST TRANSFER AGREEMENT

This MEMBERSHIP INTEREST TRANSFER AGREEMENT (this “Agreement”) is dated as of December 19, 2013 (the “Effective Date”), and is made by and between MVP Capital Partners, LLC (the “Seller”) and Vestin Realty Mortgage I, Inc. (the “Buyer”).

WHEREAS, prior to the Effective Date, the Seller and Vestin Realty Mortgage II, Inc. (“VRTB”) owned 60% and 40%, respectively, of the aggregate membership interests (the “Membership Interests”) of MVP Realty Advisors, LLC (the “Advisor”).

WHEREAS, the Buyer desires to purchase from the Seller 40% of the Membership Interests (the “Acquired Interests”) on the terms set forth in this Agreement.

WHEREAS, concurrently herewith, the Seller and VRTB entered into a separate membership interest purchase agreement (the “VRTB Purchase Agreement”) pursuant to which the Seller sold its remaining 20% of the Membership Interests to VRTB as of the Effective Date.

WHEREAS, as a result of the transfers of the Membership Interests hereunder and under the VRTB Purchase Agreement, the Buyer and VRTB now own 40% and 60% of the Membership Interests, respectively, as of the Effective Date.

WHEREAS, in recognition of its substantial investment in the Advisor for which it will receive no upfront consideration, Seller will retain a non-voting economic interest in the Advisor payable on the terms set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

	
1.

	
PURCHASE AND SALE.

	
  

	
1.1

	
Purchase and Sale of the Acquired Interests.  In reliance upon the representations and warranties of the parties contained herein, and on the terms and subject to the conditions herein set forth: (a) the Seller hereby sells, conveys, assigns, transfers and delivers as of the Effective Date the Acquired Interests to the Buyer and (b) the Buyer hereby purchases and agrees to pay the purchase price for the Acquired Interests (the “Purchase Price”). Buyer hereby agrees to pay as the Purchase Price Buyer’s proportionate share of all of the Advisor’s fees and expense reimbursements to be incurred from and after the Effective Date and payable by the Buyer to the Advisor.

	
  

	
1.2

	
Retained Interest.  The parties agree that the Seller shall retain a non-voting, economic interest in the Advisor (the “Retained Interest”) in an amount equal to one-third of the remaining net profits of the Advisor, if any, after the Buyer and VRTB have been repaid in full for any capital contributions to the Advisor or for any expenses advanced on its behalf (“Capital Investment”), and the Buyer and VRTB have received an annualized return on their Capital Investment of 7.5%.

	
  

	
1.2

	
Deliveries.  Simultaneously upon execution of this Agreement or as soon as practicable thereafter:

(a)           The Seller shall execute and deliver to the Buyer a certificate or certificates representing the Acquired Interests together with duly executed documents of transfer sufficient to convey the Acquired Interests to the Buyer, and such other instruments of conveyance as the Buyer or the Seller may reasonably request in order to effect the transfer of the Membership Interests to the Buyer, free and clear of all claims, liens, pledges, charges, encumbrances and security interests, other than restrictions imposed by federal and state securities laws on the transfers of the Acquired Interests (collectively, “Encumbrances”).

(b)           The parties further agree to amend the operating agreement of the Advisor and take such other actions and execute and deliver such other documents as may be necessary or deemed appropriate to reflect the Retained Interests and the other transactions contemplated by this Agreement.

	
2.

	
REPRESENTATIONS AND WARRANTIES OF THE SELLER.

	
  

	
The Seller hereby represents and warrants to the Buyer as follows:

	
  

	
2.1

	
The Seller holds good and marketable title to the Acquired Interests, free and clear of all Encumbrances.  The transfer of the Acquired Interests to the Buyer pursuant to this Agreement will vest in the Buyer full beneficial title to the Acquired Interests.

	
  

	
2.2

	
The Seller has all requisite right, power, capacity and authority to enter into, deliver and perform this Agreement and any other agreement or document necessary to perform this Agreement and to consummate the transactions contemplated hereby.  This Agreement has been duly and validly executed and delivered by the Seller pursuant to all necessary company action on the part of the Seller.

	
  

	
2.3

	
This Agreement is legal, valid and binding upon and enforceable against the Seller in accordance with its terms.

	
  

	
2.4

	
No litigation, claim, administrative proceeding or other proceeding or governmental investigation is pending or, to the Seller’s knowledge, threatened which would prevent or delay the execution, delivery or performance of this Agreement or any agreement, instrument or document contemplated hereby by the Seller or the consummation by the Seller of the transactions contemplated hereby or thereby.

	
  

	
2.5

	
The Advisor is a limited liability company duly organized, validly existing and in good standing under the laws of the state of Delaware and has all requisite corporate power and authority to own and operate its properties, to carry on its business as presently conducted.  The Advisor is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business, the ownership, lease or operation of its properties or the nature of its business requires such qualification or authorization, except where the failure to so qualify will not have a material adverse effect.

 

	
  

	
2.6

	
The Advisor is not in violation or default (i) of any provision of its certificate of organization or operating agreement, (ii) in any material respect of any material contract or order to which it is a party or by which it is bound, or (iii) to the knowledge of the Seller, of any provision of any laws applicable to the Advisor. The execution, delivery and performance of the this Agreement and the consummation of the transactions contemplated by this Agreement will not result in any such violation or be in conflict with or constitute, with or without the passage of time and giving of notice, a default under any such contract or order.

 

	
  

	
2.7

	
The Advisor owns and has good title to all assets and properties used in or held for use in connection with its business (the “Assets”).  The Assets are sufficient for the Advisor to conduct its business from and after the Effective Date without interruption and in the ordinary course of business, as it has been conducted by the Advisor.

 

	
  

	
2.8

	
The Seller has made available to the Buyer all the information reasonably available to the Seller that the Buyer has requested for deciding whether to acquire the Acquired Interests. No representation or warranty of the Seller contained in this Agreement contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein or therein not misleading in light of the circumstances under which they were made.  Except as expressly set forth in this Agreement, the Seller makes no representation or warranty whatsoever to the Buyer, express or implied, concerning the Advisor, its business, assets, properties, financial condition, prospects, or the suitability of the proposed investment in the Advisor.

 

	
  

	
3.

	
REPRESENTATIONS AND WARRANTIES OF THE BUYER.

The Buyer hereby represents and warrants to the Seller as follows:

	
  

	
3.1

	
The Buyer has all requisite right, power, capacity and authority to enter into, deliver and perform this Agreement and any other agreement or document necessary to perform this Agreement and to consummate the transactions contemplated hereby.  This Agreement has been duly and validly executed and delivered by the Buyer pursuant to all necessary corporate or other action on the part of the Buyer.

	
  

	
3.2

	
This Agreement is legal, valid and binding upon and enforceable against the Buyer in accordance with its terms.

	
  

	
3.3

	
The Buyer is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated by the Securities and Exchange Commission, as currently in effect.

	
  

	
3.4

	
The Buyer represents that it is acquiring the Acquired Interests solely for investment for the Buyer’s own account not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Buyer has no present intention of selling, granting any participation in, or otherwise distributing the same.

	
  

	
3.5

	
The Buyer has received all the information it considers necessary or appropriate (to the best of Buyer’s knowledge) for deciding whether to acquire the Acquired Interests.  The Buyer further represents that it has had an opportunity to ask questions and receive answers from the Seller regarding the business, properties, prospects and financial condition of the Advisor.

	
  

	
3.6

	
The Buyer understands that the Acquired Interests and any securities issued in respect of or exchange for the Acquired Interests, may bear the following legend and any other legend required by applicable federal and state securities laws:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH A REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE ACT.”

4.           MISCELLANEOUS.

	
  

	
4.1

	
Amendments.  This Agreement may be amended only by a written agreement signed by the Seller and the Buyer.

	
  

	
4.2

	
Expenses.  Each party shall pay its own respective costs and expenses relating to this Agreement and the transactions contemplated hereby.

	
  

	
4.3

	
Assignment.  This Agreement shall not be assigned by either the Buyer or the Seller or by operation of law or otherwise.

	
  

	
4.4

	
Governing Law. This Agreement shall be construed in accordance with and governed by the internal laws of the State of Delaware without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Delaware to the rights and duties of the parties.

	
  

	
4.5

	
Counterparts.  This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all of which shall constitute one and the same agreement.

	
  

	
4.6

	
Further Assurances.  Buyer and Seller shall from time to time and at all times hereafter make, do, execute, or cause or procure to be made, done and executed such further acts, deeds, conveyances, consents and assurances without further consideration, which may reasonably be required to effect the transactions contemplated by this Agreement.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written.

BUYER:                                                                      SELLER:

Vestin Realty Mortgage I, Inc.                                                                      MVP Capital Partners, LLC

                 /s/ Michael V. Shustek                                            /s/ Michael V. Shustek

By:                                                      By:                                                           

Name:Michael V. Shustek                                         Name:  Michael V. Shustekmeil_ex41.htm

Exhibit 4.1

 

FORM OF COMMON STOCK WARRANT

 

NEITHER THIS WARRANT NOR THE COMMON STOCK WHICH MAY BE ACQUIRED UPON THE EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAW, OR IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

	
Dated: _________

	
For the Purchase of _____ shares of Common Stock

 

WARRANT FOR THE PURCHASE OF

SHARES OF COMMON STOCK

OF METHES ENERGIES INTERNATIONAL LTD.

(A Nevada corporation)

Methes Energies International Ltd., a Nevada corporation (the "Company"), hereby certifies that for value received:

 

or registered assigns ("Registered Holder"), is entitled, subject to the terms set forth below, to purchase from the Company, at any time or from time to time during the period commencing six months after the date hereof, and ending at 5:00 p.m. eastern time on _______, 2018 (the “Expiration Date”), ____________ (______) shares of Common Stock (subject to adjustment as provided herein), $.001 par value, of the Company ("Common Stock"), at a per share purchase price of $4.00.  The number of shares of Common Stock purchasable upon exercise of this Warrant, and the purchase price per share, each as adjusted from time to time pursuant to the provisions of this Warrant, are hereinafter referred to as the "Warrant Shares" and the "Purchase Price", respectively.

1.           Exercise and Redemption of Warrant.  Unless this Warrant has been redeemed in accordance with this Section, the Registered Holder of this Warrant may exercise the Warrant, in whole or in part at any time or from time to time during the period commencing six months after the date hereof until the Expiration Date, at which time the Warrant shall be and become wholly void and of no value.  This Warrant may be exercised by the Registered Holder or redeemed by the Company as follows:

 

(a)           This Warrant may be exercised by Registered Holder, in whole or in part, by the surrender of this Warrant (with the Notice of Exercise Form attached hereto as Exhibit I duly executed by Registered Holder) at the principal office of the Company, or at such other office or agency as the Company may designate, accompanied by payment in full of an amount equal to the then applicable Purchase Price multiplied by the number of Warrant Shares then being purchased upon such exercise (the “Payment Required”) or, in the case of a Cashless Exercise, upon deemed surrender of Warrant Shares equal in value to the Payment Required.  "Cashless Exercise" means an exercise of Warrants in which, in lieu of Payment Required, the Registered Holder elects to receive a lesser number of Warrant Shares such that the value of the Warrant Shares that such Registered Holder would otherwise have been entitled to receive but has agreed not to receive, as determined by the closing price per share of Common Stock on the date of exercise or, if such date is not a trading day, on the last prior trading day, is equal to the Payment Required with respect to such exercise.

(b)           Payment may be made either in lawful money of the United States, by surrender of a note made by the Company and payable to the Registered Holder with a balance of principal plus accrued and unpaid interest to the date of surrender equal to the payment required or by Cashless Exercise.  Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this Warrant shall have been surrendered to the Company as provided in subsection l(a) above. At such time, the person or persons in whose name or names any certificates for Warrant Shares shall be issuable upon such exercise as provided in subsection l(c) below shall be deemed to have become the holder or holders of record of the Warrant Shares represented by such certificates.

(c)           As soon as practicable after the exercise of the purchase right represented by this Warrant, the Company at its expense will use its best efforts to cause to be issued in the name of, and delivered to, Registered Holder, or, subject to the terms and conditions hereof, to such other individual or entity as Registered Holder (upon payment by Registered Holder of any applicable transfer taxes) may direct:

(i)           a certificate or certificates for the number of full shares of Warrant Shares to which Registered Holder shall be entitled upon such exercise plus, in lieu of any fractional share to which Registered Holder would otherwise be entitled, cash in an amount determined pursuant to Section 3 hereof; and

(ii)           in case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, stating on the face or faces thereof the number of shares currently stated on the face of this Warrant (subject to adjustment as provided herein) minus the number of such shares purchased by Registered Holder upon such exercise as provided in subsection l(a) above.

  

1

  

(d)           In case the Registered Holder shall exercise this Warrant for fewer than all of the Warrant Shares evidenced by this Warrant, the Company shall promptly countersign and deliver to the Registered Holder, or to his duly authorized assigns, a new Warrant evidencing the remaining number of Warrant Shares.

(e)           Each person in whose name any certificate for securities is issued upon the exercise of this Warrant shall for all purposes be deemed to have become the holder of record of the securities represented thereby as of, and such certificate shall be dated, the date upon which this Warrant was duly surrendered in proper form with the Payment Required (and of any applicable taxes or other governmental charges) was made; provided, however, that if the date of such surrender and payment is a date on which the stock transfer books of the Company are closed, such person shall be deemed to have become the record holder of such shares as of, and the certificate for such shares shall be dated, the next succeeding business day on which the stock transfer books of the Company are open (whether before, on or after the Expiration Date) and the Company shall be under no duty to deliver the certificate for such shares until such date.  The Company covenants and agrees that it shall not cause its stock transfer books to be closed for a period of more than 10 consecutive business days except upon consolidation, merger, sale of all or substantially all of its assets, dissolution or liquidation or as otherwise provided by law.  The Company shall pay all documentary, stamp or other transactional taxes attributable to the issuance or delivery of the Warrant Shares.

(f)           All of the outstanding Warrants issued by the Company on the date hereof may be redeemed in whole but not in part upon 30 days’ written notice at the option of the Company, commencing six months after the date hereof, if, at the time notice of such redemption is given by the Company as provided in Paragraph (g), below, the average Daily Price has exceeded 150% of the then Purchase Price for the twenty consecutive trading days immediately preceding the date of such notice, at a price equal to $.05 per Warrant (the "Redemption Price"), provided, however, the Company shall not redeem any Warrants if the underlying shares are not then covered by an effective Registration Statement under the Securities Act of 1933, as amended.  For the purpose of the foregoing sentence, the term "Daily Price" shall mean, for any relevant day, the closing price on that day (or if there is no closing price the last bid price) as reported by the principal exchange or quotation system on which prices for the Common Stock are reported.  On the redemption date the holders of record of redeemed Warrants shall be entitled to payment of the Redemption Price upon surrender of such redeemed Warrants to the Company at its principal office.

(g)           Notice of redemption of Warrants shall be given at least 30 days prior to the redemption date by mailing, by registered or certified mail, return receipt requested, a copy of such notice to all of the holders of record of Warrants at their respective addresses appearing on the books or transfer records of the Company or such other address designated in writing by the holder of record to the Company.

(h)           From and after the redemption date, all rights of the Registered Holders (except the right to receive the Redemption Price) shall terminate.

2.           Adjustments.

(a)           Split, Subdivision or Combination of Shares.  If the outstanding shares of the Common Stock at any time while this Warrant remains outstanding and unexpired shall be subdivided or split into a greater number of shares, or a dividend in Common Stock shall be paid in respect of Common Stock, the Purchase Price in effect immediately prior to such subdivision or at the record date of such dividend, simultaneously with the effectiveness of such subdivision or split or immediately after the record date of such dividend (as the case may be), shall be proportionately decreased. If the outstanding shares of Common Stock shall be combined or reverse-split into a smaller number of shares, the Purchase Price in effect immediately prior to such combination or reverse split, simultaneously with the effectiveness of such combination or reverse split, shall be proportionately increased. When any adjustment is required to be made in the Purchase Price, the number of shares of Warrant Shares purchasable upon the exercise of this Warrant shall be changed to the number determined by dividing (i) an amount equal to the number of shares issuable upon the exercise of this Warrant immediately prior to such adjustment, multiplied by the Purchase Price in effect immediately prior to such adjustment, by (ii) the Purchase Price in effect immediately after such adjustment.

(b)           Reclassification, Reorganization, Consolidation or Merger.  In the case of any reclassification of the Common Stock (other than a change in par value or a subdivision or combination as provided for in subsection 2(a) above), or any reorganization, consolidation or merger of the Company with or into another corporation (other than a merger or reorganization with respect to which the Company is the continuing corporation and which does not result in any reclassification of the Common Stock), or a transfer of all or substantially all of the assets of the Company, or the payment of a liquidating distribution then, as part of any such reorganization, reclassification, consolidation, merger, sale or liquidating distribution, lawful provision shall be made so that Registered Holder shall have the right thereafter to receive upon the exercise hereof, the kind and amount of shares of stock or other securities or property which Registered Holder would have been entitled to receive if, immediately prior to any such reorganization, reclassification, consolidation, merger, sale or liquidating distribution, as the case may be, Registered Holder had held the number of shares of Common Stock which were then purchasable upon the exercise of this Warrant. In any such case, appropriate adjustment (as reasonably determined by the Board of Directors of the Company) shall be made in the application of the provisions set forth herein with respect to the rights and interests thereafter of Registered Holder such that the provisions set forth in this Section 2 (including provisions with respect to the Purchase Price) shall thereafter be applicable, as nearly as is reasonably practicable, in relation to any shares of stock or other securities or property thereafter deliverable upon the exercise of this Warrant.

  

2

  

(c)           Price Adjustment.  No adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease in the Purchase Price of at least $0.01, provided, however, that any adjustments which by reason of this paragraph are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 2 shall be made to the nearest cent or to the nearest 1/l00th of a share, as the case may be.

(d)           No Impairment.  The Company will not, by amendment of its charter 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 to be observed or performed hereunder by the Company but will at all times in good faith assist in the carrying out of all the provisions of this Section 2 and in the taking of all such actions as may be necessary or appropriate in order to protect against impairment of the rights of Registered Holder to adjustments in the Purchase Price.

(e)           Notice of Adjustment.  Upon any adjustment of the Purchase Price, number of Warrant Shares the Warrants are exercisable for, or extension of the Warrant exercise period, the Company shall forthwith give written notice thereto to Registered Holder describing the event requiring the adjustment, stating the adjusted Purchase Price and the adjusted number of shares purchasable upon the exercise hereof resulting from such event, and setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based.

3.           Fractional Shares.  The Company shall not be required upon the exercise of this Warrant to issue any fractional shares, but shall make an adjustment thereof in cash on the basis of the last sale price of the Warrant Shares on the over-the-counter market as reported by Nasdaq or on a national securities exchange on the trading day immediately prior to the date of exercise, whichever is applicable, or if neither is applicable, then on the basis of the then fair market value of the Warrant Shares as shall be reasonably determined by the Board of Directors of the Company.

4.           Limitation on Sales.  Each holder of this Warrant acknowledges that this Warrant and the Warrant Shares, as of the date of original issuance of this Warrant, have not been registered under the Securities Act of 1933, as amended ("Act"), and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Warrant or any Warrant Shares issued upon its exercise in the absence of (a) an effective registration statement under the Act as to this Warrant or such Warrant Shares or (b) an opinion of counsel, satisfactory to the Company, that such registration and qualification are not required. The Warrant Shares issued upon exercise thereof shall be imprinted with a legend in substantially the following form:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS OR IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.”

5.           Certain Dividends.  If the Company pays a dividend or makes a distribution on the Common Stock ("Dividend"), other than a cash dividend or a stock dividend payable in shares of Common Stock, then the Company will pay or distribute to Registered Holder, upon the exercise hereof, in addition to the Warrant Shares purchased upon such exercise, the Dividend which would have been paid to such Registered Holder if it had been the owner of record of such Warrant Shares immediately prior to the date on which a record is taken for such Dividend or, if no record is taken, the date as of which the record holders of Common Stock entitled to such Dividend are determined.

6.           Notices of Record Date.

In case:

(a)           the Company shall take a record of the holders of its Common Stock (or other stock or securities at the time deliverable upon the exercise of this Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of any class or any other securities, or to receive any other right, or

(b)           of any capital reorganization of the Company, any reclassification of the capital stock of the Company, any consolidation or merger of the Company with or into another corporation (other than a consolidation or merger in which the Company is the surviving entity), or any transfer of all or substantially all of the assets of the Company, or

(c)           of the voluntary or involuntary dissolution, liquidation or winding-up of the Company;

then, and in each such case, the Company will mail or cause to be mailed to Registered Holder a notice specifying, as the case may be, (i) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up is to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock (or such other stock or securities at the time deliverable upon the exercise of this Warrant) shall be entitled to exchange their shares of Common Stock (or such other stock or securities) for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up.  Such notice shall be mailed at least twenty (20) days prior to the record date or effective date for the event specified in such notice, provided that the failure to mail such notice shall not affect the legality or validity of any such action.

  

3

  

7.           Due Authorization.  The Warrant Shares that may be issued upon exercise of this Warrant shall, at the time of issuance, be duly authorized, fully paid and non-assessable.

8.           Replacement of Warrants.  Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably required) in an amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor.  This Warrant is exchangeable for new Warrants (containing the same terms as this Warrant) each representing the right to purchase such number of shares as shall be designated by Registered Holder at the time of surrender (but not exceeding in the aggregate the remaining number of shares of Common Stock which may be purchased hereunder.

9.           No Rights as Stockholder.  Until the exercise of this Warrant, Registered Holder shall not have or exercise any rights by virtue hereof as a stockholder of the Company.

10.           Successors.  The rights and obligations of the parties to this Warrant will inure to the benefit of and be binding upon the parties hereto and their respective heirs, successors, assigns, pledgees, transferees and purchasers.

11.           Change or Waiver.  Any term of this Warrant may be changed or waived only by an instrument in writing signed by the party against which enforcement of the change or waiver is sought.

12.           Headings.  The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect the meaning of any provision of this Warrant.

13.           Governing Law.  This Warrant shall be governed by and construed in accordance with the laws of the State of Nevada as such laws are applied to contracts made and to be fully performed entirely within that state between residents of that state.

14.           Mailing of Notices, etc.  All notices and other communications under this Warrant (except payment) shall be in writing and shall be sufficiently given if delivered to the addressees in person, by electronic mail (email), Federal Express or similar receipt delivery, facsimile, postage prepaid mail, or certified mail, return receipt requested, as follows:

to Registered Holder:                                           

Email:

Fax:

to the Company:                                   Methes Energies International Ltd.

3651 Lindell Road, Suite D-272

Las Vegas, Nevada 89103

Attention: Michel G. Laporte, CEO

Email: mlaporte@methes.com

Fax: (702) 943-0233

with a copy to:                                      Morse, Zelnick, Rose & Lander LLP

405 Park Avenue, Suite 1401

New York, New York 10022

Attention: John C. Hui, Esq.

Email: jhui@mzrl.com

Fax: (212) 838-9190

or to such other address as any of them, by notice to the other may designate from time to time.

 

  

4

  

 

IN WITNESS WHEREOF, the parties hereto have caused this Warrant to be duly executed, all as of the day and year first above written.

 

METHES ENERGIES INTERNATIONAL LTD.

By:                                                                           

Name: Michel G. Laporte

Title: Chairman and Chief Executive Officer

 

  

5

  

EXHIBIT I

NOTICE OF EXERCISE

TO:           Methes Energies International Ltd.

3651 Lindell Road, Suite D-272

Las Vegas, Nevada 89103

Attention: Michel G. Laporte, CEO

1.           The undersigned hereby elects to purchase________shares of the Common Stock of Methes Energies International Ltd., pursuant to terms of the attached Warrant, and

[Check the applicable box]

o tenders herewith the Payment Required in full, together with all applicable transfer taxes, if any.

o elects to pay the Payment Required together with all applicable transfer taxes, if any, by Cashless Exercise in accordance with Section 1(a) of the attached Warrant.

2.           Please issue a certificate or certificates representing said shares of the Common Stock in the name of the undersigned or in such other name as is specified below.  If the attached Warrant is exercisable for a greater number of shares than the number set forth in paragraph 1, then please issue another Warrant in the name of the undersigned or in such other name as is specified below exercisable for the remaining number of shares.

3.           The undersigned represents that it will sell the shares of Common Stock pursuant to an effective Registration Statement under the Securities Act of 1933, as amended, or an exemption from registration thereunder.

(Name)

	
  

	
(Address)

	
  

	
(Taxpayer Identification Number)

	
  

	 

[print name of Registered Holder]

By:

Title:

Date:

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}]]