REORGANIZATION AGREEMENT
This REORGANIZATIONAGREEMENTdatedasof July 24,2014(this“Agreement”)isby andbetweenSilentCanyonProductions,Inc.,locatedat2708S.HighlandDr.,LasVegas,Nevada89109, Silent Canyon Productions is doing business as Laguna Productions, which will be the name of the merged entity, therefore, Laguna and Laguna will be collectively referred to herein as“Laguna”and/or“Seller"andEco Energy Pumps,locatedat112 North Curry Street,Carsoncity,Nevada89703referred to herein as“EEPU”and/or“Company”a publiclylistedcompanyontheOTCBB,underthesymbol “EEPU”,concerningthe acquisitionofSellerbyCompany.LagunaandEEPUarecollectivelyreferredtohereinasthe“Parties”.
WHEREAS, theboardofdirectorsofEEPUandtheshareholdersofLagunahave approvedtheacquisitionofLagunabyEEPU(the“Acquisition”)upon theterms,andsubject totheconditions,setforthinthisAgreement;
WHEREAS, itis intendedthat,for federalincometax purposes, theAcquisition shall qualifyasareorganizationundertheprovisionsofSection368(a)oftheInternalRevenue Codeof1986,asamended,andtherulesandregulationspromulgatedthereunder(the “Code”);and
WHEREAS, LagunaandEEPUdesiretomakecertainrepresentations,warranties, covenantsandagreementsinconnectionwiththisAgreement.
WHEREAS, EEPUdesires toacquire100%ofthemembershipinterestofLaguna;
WHEREAS,Uponcompletionoftheacquisition,EEPUdesirestoengageLaguna Management(“LagunaManagement”)pursuanttothetermsofaManagement Agreement;
AND WHEREAS,the BoardsofDirectorsofEEPUandLagunaManagementdeemitadvisableandintheirbestinterests(i)thatthemembersofLagunaacquirea80%interestinthe securities ofEEPU, and(ii)EEPU acquirea100% controllinginterest in thesecuritiesofLaguna,allinaccordancewiththetermsandconditionsofthisReorganizationAgreement.
NOW,THEREFORE,the partiesheretomakethefollowingpromises,covenants,representations,warrantiesandagreements:
1.Pre-Closing Actions ofEEPU. Eitherpriortoor immediatelyuponexecutionof thisAgreementandpriortotheClosingDateassetforthherein,EEPU shallundertakethefollowingactions:
(a) The BoardofDirectorsofEEPUshallunanimouslyapproveanddelivertoLanham&Lanham,LLC(“Lanham&Lanham” and/orthe"Escrow Agent")inescrowresolutionswithrespectto(a)approvingtheTransactionssetforthherein;(b)increasingordirectingthesizeoftheBoardofDirectorstobeonemembers;(c)electingDoug MamarytotheBoardofDirectors,(d)theauthorizedcapitalstockofEEPU willbethreehundred million (300,000,000) commonshares,with ten million (10,000,000) preferredshares ofstock, and (e) approving a name change of the corporation to LagunaProductions, Inc.
(b) EEPUshallprepareanddelivertocounselforLagunaforreviewaForm8-KfilingwhichreflectsthetransactionscontemplatedbythisAgreement,asrequiredtobefiledwiththeSecuritiesandExchangeCommission(the“Commission”)on theClosingDate(definedbelow)
(c) EEPUshalltakesuchactionsasarerequiredsuchthatatClosingthereshallbeatotalof65,000,000sharesofcommonstockissuedandoutstanding.
(d) EEPUshallissueanddelivertotheEscrowAgentatotalof48,000,000sharesofcommonstockofEEPU(whichatthetimeofClosingwillreflectatleast80%ofthefullydilutedissuedandoutstandingcommonstockofEEPU)fordelivery(i)sharestomembersofLagunaatClosingasdirectedbyLagunaManagement(the"EscrowedEEPU Shares").
(e) EEPUwilldeliverlettersofresignationofEEPU’scurrentofficers anddirectorstobeeffectiveattheClosingDate whohaveagreedtostayonandwork withLaguna;
(f) EEPUshalluse its reasonablebest efforts to prepare and complete thedocumentsnecessarytobefiledwithlocal,stateandfederalauthoritiestoconsummatethetransactionscontemplated hereby.
2.Pre-Closing ActionsofLaguna.ImmediatelyuponexecutionofthisAgreementandpriortotheClosingDateassetforthherein,Laguna shallundertakethefollowingactions:
(a) LagunashallcauseitsBoardofDirectorstoexecuteanddeliverresolutionsapprovingtheTransactions set forth herein.Lagunashallcauseits shareholders to executeand deliverresolutionsapprovingtheTransactionssetforthherein,aswellastheincreaseinauthorizedstockandthenamechange.
(b) LagunashalldelivertoLanham&LanhamasEscrow(the“EscrowAgent”)limitedliability companyinterestswhich represents 100%oftheequity of Laguna,fordelivery toEEPUatClosing(the"EscrowedLaguna Shares").
(c) Lagunashallcompleteanauditofitsfinancialstatementsforthetwofiscalyearsended2013,andanyinterimorotherfinancialstatementsrequiredforinclusionintheForm8-KfilingtobecompletedatClosing(the“Laguna FinancialStatements”).
(d) LagunashallcooperatewithitsreasonablebesteffortstoassistEEPUtoprepareandcompletethedocumentsnecessarytobefiledwithlocal,stateandfederalauthoritiestoconsummatethetransactionscontemplatedhereby.
3.Conditions toClosing.Theparties'obligationtoclosetheproposed Acquisition willbesubjecttospecifiedconditionsprecedentincluding,butnot limitedto,thefollowing:
(a) The representationsand warrantiesofLaguna assetforthinSection6hereinshallremainaccurateasoftheClosingDateand nomaterialadversechangeinthe businessofLagunashallhaveoccurred.
(b) The representationsand warrantiesofEEPUassetforthinSection7hereinshallremainaccurate asoftheClosingDateand nomaterialadversechangeinthe businessofEEPUshallhaveoccurred.
(c) Allthedocumentsnecessary tobefiledwithlocal,stateandfederalauthorities,includingwithoutlimitation theForm8-K, areprepared.
(d) EEPU shallhaveprovided the boardandshareholderresolutionsand anyotherapproval requiredtocompletetheboardelection, authorizedshareincreaseandthe namechange.
(e) LagunashallhavecompletedanddelivereditsauditedfinancialstatementsinaformasrequiredtocompleteandfiletheForm 8-K at Closing.
(f) EEPUshall retain itsgoodstandingasapubliclycompanyquotedonthe OTCPKunderthesymbol"EEPU".
4.At and subsequent to the Closing.
(a) AttheClosing,Lanham&LanhamshallreleasefromescrowlettersofresignationandtheEEPUBoardResolutionseffectuatingtheelectionofDougMamarytotheBoardofDirectors.
(b) AttheClosing,Lanham&LanhamshalldelivertheEscrowedEEPUSharestoLagunafordeliverytoownersofLaguna.
(c) AttheClosing,Lanham&Lanham shalldelivertheEscrowedLaguna SharestoEEPU.
(d) AttheClosing,theexisting officers ofEEPUshallresignandbereplacedbythoseofficersappointedbythenewBoardofDirectors.
(e) ImmediatelysubsequenttotheClosing,thecombinedentitieswillfiletheForm8-Krequiredforthetransactionscontemplated bythisAgreement.
(f) The combinedpublic entityshall haveraised twohundred thousandUS dollars($200,000) inthe formof aprivate placement(“Private Placement”)on orbefore August 31,2014. ThePrivate Placementstock shallbe issuedfrom theauthorized butunissued capitalstock ofthe Company.The strikeprice forthe Private Placement shares shall be twenty-five cents ($0.25) or higher.
(g) If, $200,000is notraised by August 31,2014 thanthe ownershipof theCompany shalladjust inaccordance with thefollowing schedule:if zerodollars ($0)raised, thanFrank andRandall shallgive back80% oftheir holdings;if fiftythousand dollars($50,000) raised,than Frank andRandall shallgive back60% oftheir holdings;if onehundred thousand dollars($100,000) raised,than Frank andRandall will give back 40% of their holdings, and; if one hundred and fiftythousand dollars($150,000)raised,FrankandRandallwillgiveback20%oftheirholdings.
5.TimingofClosing.The Closingisanticipatedtooccurwithin60daysofthisAgreement,butshalloccuruponthesatisfactionoftheconditionssetforthinthisAgreementanduponinstructionsfromthepartiesheretototheEscrowAgent.TheClosingDate shallbemutuallyagreed uponbytheparties,butshalloccurassoonaspossibleaftertheexecutionofthisAgreementanduponcompletionoftheamendment totheArticlesofIncorporationandcompletionof the auditedLagunafinancialstatements, unless the EscrowAgentreceives instructions otherwise from the parties or notice from a party that the conditionssetforth hereinhavenotoccurred.IntheeventtheClosingdoesnotoccuronorbeforeDecember31, 2014 or upon mutualwritteninstructions from theParties hereto,(i) the EscrowAgentshallreturn the EscrowedLagunaSharestoLagunaand (ii) the EscrowAgent shall return the EscrowedEEPU SharestoEEPU.
6.Representations ofLaguna.ExceptassetforthintheLagunaFinancial StatementsdeliveredassetforthinSection2(c)above,Lagunarepresentsandwarrantsasfollows:
(a)Ownershipof Shares.As ofthe ClosingDate,EEPU will becomethe recordand beneficial ownerof the EscrowedLagunaShares.The EscrowedLagunaShareswill be freefromclaims,liensorotherencumbrances,exceptasprovidedunderapplicablefederalandstatesecuritieslaws.TheEscrowedLaguna Sharesshallreflect100%oftheownershipequityofLaguna.
(b)Fully paidandNonassessable.TheEscrowedLaguna SharesconstitutedulyandvalidlyissuedownershipinterestsofLaguna,andarefullypaidandnonassessable,andLaguna further represents that it has the powerand the authorityto execute thisAgreement andtoperformtheobligationscontemplatedhereby;
(c)OrganizationofLaguna;Authorization.Lagunaisacompanydulyorganized,validlyexistingandin goodstandingunderthe lawsoftheState ofNevada withfullcorporatepowerandauthoritytoexecuteanddeliverthisAgreementandtoperformitsobligationshereunder.LagunaisqualifiedtodobusinessintheStateofNevada. Theexecution, delivery and performance of thisAgreement have been duly authorized by allnecessary corporate action and thisAgreement constitutes a valid and binding obligation ofLaguna;enforceable against it in accordancewith its terms.Lagunahas nosubsidiaries.
(d)Capitalization.AsoftheClosingDate, Laguna shallhaveatotalof1,000sharesissuedandoutstanding.AlloftheissuedandoutstandingshareinterestsofLagunaarevalidlyissued,fullypaidandnon-assessableandthereisnotandasoftheClosingDatetherewillnotbeoutstandinganywarrants,optionsorotheragreementsonthepartofanyofLagunaobligatingsuch entity to issue any additionalshares of commonor preferredstock,anyownership interest or any of itssecurities of any kind
(e)NoConflict asto Laguna.Neither the executionanddeliveryof thisAgreementnortheconsummationoftheexchangeoftheEscrowedLagunaShares will(a)violateanyprovisionofthemembershipagreementorby-laws(orothergoverninginstrument)ofLagunaor(b)violate,orbeinconflictwith,orconstituteadefault(oraneventwhich,withnoticeorlapseof timeor both,would constitute a default)under,or result in thetermination of, or acceleratethe performance required by, or excuse performance by anyPerson of any of its obligations under, or cause the acceleration of the maturity of any debt or obligation pursuant to,or resultin thecreation orimpositionofany Encumbranceupon anyproperty orassetsofLaguna under, any material agreement orcommitment towhichLaguna is a party or bywhich its property or assetsis bound, or towhichany of the property or assetsofLaguna issubject,or (c) violate anystatute or law or any judgment, decree, order, regulation or rule of any court or otherGovernmental Body applicable toLagunaexcept, in the case of violations, conflicts, defaults, terminations,accelerationsor encumbrances described in clause (b) of thisSectionforsuchmatterswhicharenotlikelytohaveamaterialadverseeffectonthebusinessorfinancial condition ofLaguna.
(f)Consents and ApprovalsofGovernmentalAuthorities. Noconsent,approvalorauthorizationof,ordeclaration,filingorregistrationwith,anyGovernmentalBodyisrequiredtobemadeorobtainedbyLagunainconnectionwiththeexecution,deliveryandperformanceof thisAgreement byLagunaor theconsummationof thesale ofthe EscrowedLaguna Shares.
(g)OtherConsents. NoconsentofanyPersonisrequiredtobeobtainedby Lagunatotheexecution,deliveryandperformanceofthisAgreementortheconsummationofthesaleoftheEscrowedLaguna Shares,including,butnotlimitedto,consentsfrompartiestoleasesorotheragreementsorcommitments,exceptforanyconsentwhichthefailuretoobtainwouldnotbe likelytohaveamaterial adverseeffect onthebusinessandfinancial conditionofLagunaasawhole.
(h)Litigation.There isnoaction,suit,inquiry,proceedingorinvestigationbyorbeforeanyCourtor Governmental bodypendingor threatenedin writingagainst orinvolvingLagunawhichislikelytohaveamaterialadverseeffectonthebusinessorfinancialconditionofLagunaasawhole,orwhichquestionsorchallengesthevalidityofthisAgreement.Lagunaisnotsubjecttoanyjudgment,orderordecreethatislikelytohaveamaterialadverseeffecton the business or financial condition ofLaguna as awhole.
(i).Absense of Certain Changes. Laguna has not:
1. sufferedthedamageordestructionofanyofitspropertiesorassets(whetherornotcoveredbyinsurance)whichismateriallyadversetothebusinessorfinancialcondition,ormadeanydispositionofanyofitsmaterialpropertiesorassetsotherthanintheordinarycourseofbusiness;
2. made anychangeoramendmentinitscertificateofincorporationor by-laws,orothergoverninginstruments;
3. other thantheLagunaEscrowedShares,issuedorsoldanyEquitySecuritiesorothersecurities,acquired,directlyorindirectly,byredemptionorotherwise,anysuchEquitySecurities,reclassified,split-uporotherwisechangedanysuchEquitySecurity,orgrantedorenteredintoanyoptions,warrants,callsorcommitmentsofanykindwithrespectthereto;
4. organized anynewSubsidiaryoracquiredanyEquitySecuritiesofanyPersonoranyequityorownershipinterestinanybusiness;
5. borrowed anyfundsorincurred,orassumedorbecomesubjectto,whetherdirectlyorbywayofguaranteeorotherwise,anyobligationorliabilitywithrespecttoanysuchindebtednessforborrowedmoney.
6. paid, dischargedorsatisfiedanymaterialclaim,liabilityorobligation(absolute,accrued,contingent orotherwise),otherthanintheordinarycourseofbusiness;
7. prepaid anymaterialobligation having amaturity of morethan90days fromthedatesuchobligationwasissuedorincurred;
8. cancelled anymaterialdebtsorwaivedanymaterialclaimsorrights,exceptintheordinarycourseofbusiness;
9. disposed oforpermittedtolapseanyrightstotheuseofanymaterial patentorregisteredtrademarkorcopyrightorotherintellectualpropertyownedor usedbyit;
10. sold,transferredorotherwisedisposedofanymaterialassets,includingwithoutlimitationtechnology andintangibleassets;
11. granted anygeneralincreaseinthecompensationofofficersor employees(includinganysuchincreasepursuanttoanyemployeebenefitplan);
(j)Compliance withLaw.TheoperationsofLagunahavebeenconductedinaccordancewithallapplicablelawsandregulationsofallGovernmentalBodieshavingjurisdictionoverthem,exceptforviolationsthereofwhicharenotlikelytohaveamaterialadverseeffectonthebusinessorfinancialconditionofLagunaasawhole.Lagunahasnotreceivedanynotificationofanyassertedpresentorpastfailurebyittocomplywithanysuch applicable laws or regulations.Laguna has all material licenses, permits, orders or approvals from theGovernmentalBodies required for the conduct of its business, and is not in material violation of anysuchlicenses, permits, orders and approvals.Allsuchlicenses, permits,orders and approvals are in full force and effect, and nosuspension or cancellation of any thereof has been threatened.
(k)TitletoProperties. Lagunaownsallthematerialpropertiesandassetsthatitpurportstoown(real,personalandmixed,tangibleandintangible),including,withoutlimitation,allthematerialpropertiesandassetsreflectedintheLagunaFinancial Statements. Allpropertiesand assets,includingwithoutlimitationtechnologyandintangibleassets,arefree and clear of all material encumbrances and are not, in the case of real property,subjectto any material rights ofway, building use restrictions, exceptions, variances, reservations or limitations ofanynaturewhatsoeverexcept,withrespecttoallsuchpropertiesandassets,(a) mortgages orsecurity interestsshownon theLagunaFinancialStatementsassecuringspecified liabilities or obligations,with respect towhich nodefault (or eventwhich,withnotice orlapseof time or both,would constitutea default)exists, (b) mortgagesorsecurityinterestsincurred in connectionwiththe purchase of property or assets after the date ofsuch financialstatements (suchmortgages andsecurityinterestsbeing limitedto theproperty or assetsso acquired),with respect towhich no default (or eventwhich,with notice or lapse of time orboth,wouldconstitute a default) exists,(c) as to real property, (i)imperfectionsof title, ifany, noneofwhichmateriallydetractsfromthe valueorimpairs theuseofthepropertysubject thereto,or impairsthe operationsofLaguna asawholeand(ii) zoninglaws thatdo not impair the present or anticipated use of the propertysubject thereto, and (d) liens for current taxes not yet due.The properties and assets ofLagunainclude all rights,properties and otherassetsnecessary to permitLaguna toconduct business in allmaterial respects in thesamemanner as it is conducted on the date of thisAgreement.
7.Representations ofEEPU.EEPUforitsrespectiverightsandinterestsrepresentsandwarrantsasfollows:
(a)Organization;Authorization. EEPUis acorporationduly organized,validlyexistingandingoodstandingunderthelawsofNevadawithfullcorporatepowerandauthoritytoexecuteanddeliverthis Agreementandtoperformitsobligationshereunder.Theexecution,deliveryandperformanceofthisAgreementhavebeendulyauthorizedbycorporateactionofEEPUandthisAgreementconstitutesavalidandbindingobligation; enforceable against in accordancewithits terms.EEPUhasnosubsidiaries.
(b)Capitalization. Theauthorized capitalstockofEEPUconsistsofthe three hundred million (300,000,000) common shares, with ten million (10,000,000) preferred shares of stock.AsofthedateofthisAgreement,EEPUhasapproximately2,519,820sharesofcommonstockissuedandoutstandingandnosharesofpreferredstockissuedandoutstanding.AsoftheClosingDate, EEPUshallhavenomorethan65,000,000sharesofcommonstockoutstanding(notincludingtheEEPUEscrowedShares).No shareshave otherwise been registered understate orfederalsecuritieslaws.Asof the ClosingDate, allof theissuedandoutstandingsharesofcommonstockofEEPUarevalidlyissued,fullypaid and non-assessableand, there is not and as of the ClosingDate therewillnot be outstanding anywarrants, options or other agreements on the part ofEEPU obligating any ofEEPU to issue any additionalsharesof commonor preferredstockor any ofitssecurities ofany kind, except forsuchshares orsecurities called for in thisAgreement.The CommonStock ofEEPUis presently quoted on the over-the-counter bulletin board under thesymbol“EEPU”.EEPU is current in all of its required filingswith theUS Securities and Exchange Commission.EEPU isnot a “shell” corporationas defined by Rule 405 promulgated by theUSSecurities and Exchange Commission.
(c)NoConflict asto EEPUand Subsidiaries. Neither theexecutionand deliveryofthisAgreementnortheconsummationofthetransactionscontemplatedhereinwill(a)violateanyprovisionofthearticlesofincorporationororganizationofEEPUoranyofitsSubsidiariesor(b)violate,orbeinconflictwith,orconstituteadefault(oraneventwhich,withnotice or lapse of time or both,would constitute a default) under, or result in theterminationof, or accelerate the performance required by, or excuse performance by anyPerson ofany ofitsobligations under,orcause theaccelerationof thematurityof anydebtor obligation pursuant to,or resultin the creationor imposition of any Encumbrance upon any property or assets of any ofEEPU or any of itsSubsidiariesunder, any material agreement or commitment towhich any ofEEPU,any of itsSubsidiaries is a party or bywhichany of their respective propertyor assetsis bound,or to whichanyof theproperty orassets of anyofEEPU or any ofits Subsidiaries issubject,or (c) violateanystatute or law or any judgment, decree, order, regulation or rule of any court or otherGovernmentalBody applicable toEEPUoranyofitsSubsidiariesexcept,inthecaseofviolations, conflicts,defaults, terminations, accelerations orEncumbrances describedinclause(b)ofthisSectionforsuch matterswhichare not likely to have a material adverse effect on the business or financial conditionofEEPUanditssubsidiaries,takenasawhole.
(d)Consentsand Approvalsof GovernmentalAuthorities. ExceptwithrespecttoaForm8-KfilingwiththeUSSecuritiesandExchangeCommission,aswellasa14CInformationStatementtocompleteanincreaseinauthorizedstockandanamechange,noconsent,approvalorauthorizationof,ordeclaration,filingorregistrationwith,anyGovernmentalBodyisrequiredtobemadeorobtainedbyEEPUinconnectionwiththeexecution, delivery and performance of thisAgreement byEEPUor the consummation of the transactions contemplated herein.
(e)OtherConsents.Noconsent ofanyPersonisrequiredto beobtainedbyEEPUto the execution, delivery and performance of thisAgreement or the consummation of the transactionscontemplated herein, including, but not limited to, consents from parties to leases orotheragreements orcommitments,exceptforanyconsentwhichthefailureto obtainwouldnot be likely to have a material adverse effect on the business and financial condition ofEEPU.
(f)Litigation. There isnoaction,suit,inquiry,proceedingorinvestigationbyorbeforeany court orGovernmentalBody pendingor threatenedinwritingagainst or involvingEEPUoranyofitsSubsidiarieswhichislikelytohaveamaterialadverseeffectonthebusinessorfinancialconditionofEEPUandanyofitsSubsidiaries,takenaswhole,orwhichwouldrequireapaymentbyEEPUoritssubsidiariesinexcessof$10,000inthe aggregate orwhichquestionsorchallenges the validity of thisAgreement. NeitherEEPUnor any oritsSubsidiaries issubject to anyjudgment, orderor decree that is likely to have amaterialadverseeffectonthebusinessorfinancialconditionofEEPUoranyofitsSubsidiaries, taken as awhole,orwhichwould require a payment byEEPUor itsSubsidiaries in excess of $10,000 in the aggregate.
(g) Absense of Certain Changes. Neither EEPU nor any of its Subsidiaries has:
1. sufferedthedamageordestructionofanyofitspropertiesorassets(whetherornotcoveredbyinsurance)whichismateriallyadversetothebusinessorfinancialconditionofEEPUanditsSubsidiaries,takenasawhole,ormadeanydispositionofanyofitsmaterialpropertiesorassetsotherthanintheordinarycourse of business;
2. not madeanychangeoramendmentinitscertificateofincorporation orby-laws,orothergoverninginstruments;
3. paid, dischargedorsatisfiedanymaterialclaim,liabilityorobligation(absolute,accrued,contingent orotherwise),otherthanintheordinarycourseof business;
4. prepaid anymaterialobligation havingamaturity of morethan90days fromthedatesuchobligationwasissuedorincurred;
5. cancelled anymaterialdebtsorwaivedanymaterialclaimsorrights,exceptintheordinarycourseofbusiness;
6. disposed oforpermittedtolapseanyrightstotheuseofanymaterial patentorregisteredtrademarkorcopyrightorotherintellectualpropertyownedorusedbyit;
7. granted anygeneralincreaseinthecompensationofofficersor employees(includinganysuchincreasepursuanttoanyemployeebenefitplan);
8. purchased orenteredintoanycontractorcommitmenttopurchaseany materialquantityofrawmaterialsorsupplies,orsoldorenteredintoanycontractorcommitmenttosellanymaterialquantityofpropertyorassets,except(i)normalcontracts orcommitments forthe purchaseof,and normalpurchasesof,rawmaterials orsupplies,madeintheordinarycoursebusiness,(ii)normalcontractsorcommitmentsfor thesaleof, andnormalsalesof, inventory in the ordinary course of business, and (iii) other contracts, commitments, purchases orsalesin the ordinarycourse of business;
9. writtenofforbeenrequiredtowriteoffanynotesoraccountsreceivableinanaggregateamountinexcessof$2,000;
10. writtendownorbeenrequiredtowritedownanyinventoryinanaggregateamountinexcessof$2,000;
11. entered into any collective bargaining or union contract or agreement; or
12. other thantheordinarycourseofbusiness,incurredanyliability required bygenerally acceptedaccountingprinciplestobereflectedonabalancesheetandmaterialtothebusinessorfinancialconditionofEEPUandtheirsubsidiariestakenasawhole.
(h)Compliance withLaw.TheoperationsofEEPUanditsSubsidiarieshavebeenconductedinaccordancewithallapplicablelawsandregulationsofallGovernmentalBodieshavingjurisdictionoverthem,exceptforviolationsthereofwhicharenotlikelytohaveamaterialadverseeffectonthebusinessorfinancialconditionofEEPUanditsSubsidiaries,taken as awhole,orwhich would notrequire a payment byEEPUor itsSubsidiaries in excess of $2,000 in the aggregate, orwhichhave been cured.NeitherEEPU norany of itsSubsidiaries hasreceived any notification of any asserted presentor past failurebyittocomplywithanysuchapplicablelawsorregulations.EEPUanditsSubsidiarieshave all material licenses, permits, orders or approvals from theGovernmental Bodiesrequired for the conduct of their businesses, and are not in material violation of anysuchlicenses, permits, orders andapprovals.Allsuchlicenses, permits, orders and approvals are in full force and effect, and nosuspensionor cancellation of any thereof has been threatened.
8.Notices.Anynoticewhichanyofthepartiesheretomaydesiretoserveuponanyoftheotherpartiesheretoshallbeinwritingandshallbeconclusivelydeemedtohavebeenreceivedbythepartyatitsaddress,ifmailed,postageprepaid,United Statesmail,registered,returnreceiptrequested,tothefollowingaddresses:
| If to Laguna: | Doug Momary | |
| Creative Director | ||
| Silent Canyon Productions, Inc. | ||
| 2708 S. Highland Dr. | ||
| Las Vegas, Nevada 89109 | ||
| Studio: | (702) 731-5600 | |
| Cell: | (702) 596-7759 | |
| Fax: | (702) 731-9342 | |
| If to EEPU: | c/o Randall J. Lanham, Esq. | |
| 28562 Oso Parkway | ||
| Unit D | ||
| Rancho Santa Margarita, CA 92688 | ||
| Telephone: | (949) 858-6773 | |
| Facsimile: | (949) 858-6774 | |
11.Successors.ThisAgreementshallbebindinguponandinuretothebenefitoftheheirs,personalrepresentativesandsuccessorsandassignsoftheparties.
12.Choice ofLaw.ThisAgreementshallbeconstruedandenforcedinaccordance withthelawsoftheStateofNevada,andthepartiessubmittotheexclusivejurisdictionofthecourtsofNevadainrespectofalldisputesarisinghereunder.
13.Counterparts.ThisAgreementmaybesignedinoneormorecounterparts,allofwhichtakentogethershallconstituteanentireagreement.
14.Confidential Information.Each ofLagunaandEEPUherebyacknowledgesandagreesthatallinformationdisclosedtoeachotherwhether writtenororal,relatingtotheother’sbusinessactivities, itscustomernames,addresses,alloperatingplans,information relatingtoitsexistingservices,neworenvisionedproductsorservicesandthedevelopmentthereof,scientific, engineering, ortechnicalinformation relating to the others business, marketingor product promotional material,includingbrochures, product literature,plansheets, and any and all reports generated to customers,with regard to customers, unpublishedlist of names, and all information relating to order processing, pricing, cost and quotations, and any and all information relating to relationshipswith customers, is considered confidential information, and is proprietary to, and is considered the invaluable tradesecret ofsuchparty (collectively “Confidential Information”).Anydisclosure of any ConfidentialInformationbyanypartyhereto,itsemployees,orrepresentativesshallcauseimmediate,substantial, and irreparable harm and loss to the other. Each party understands that the other desires to keepsuchConfidential Information in thestrictest confidence, and thatsuchparty’sagreement to doso is a continuing condition of the receipt and possession of Confidential Information,and a material provision of thisagreement, and a condition thatshall survive thetermination ofthisAgreement. Consequently,each partyshalluse ConfidentialInformationfor thesole purpose of performing its obligations as provided herein.
15.EntireAgreement.ThisAgreement setsforththeentireagreementandunderstandingofthePartiesheretowithrespecttothetransactionscontemplatedhereby, andsupersedesallprioragreements,arrangementsandunderstandingsrelatedtothesubjectmatterhereof.Nounderstanding,promise,inducement, statementofintention,representation,warranty,covenant or condition,written or oral,express orimplied,whetherbystatute or otherwise,has been made by anyParty heretowhichis not embodied in thisAgreement or thewritten statements, certificates, or other documents delivered pursuant hereto or in connectionwiththetransactionscontemplatedhereby,andnopartyheretoshallbeboundbyorliableforanyalleged understanding, promise,inducement,statement,representation, warranty,covenantorconditionnotsosetforth.
16.Costs and Expenses. Exceptasotherwisespecificallysetforthherein,eachpartywill bearitsownattorneys,brokers,investmentbankers, agents,andfindersemployedby,suchparty.Thepartieswillindemnifyeachotheragainst anyclaims,costs,losses,expenses orliabilitiesarisingfromanyclaimforcommissions, finder's feesor other compensation in connectionwith the transactions contemplated hereinwhichmaybe asserted byany personbasedonany agreement orarrangementforpaymentbytheotherparty.
17.Attorney’sFees. ShouldanyactionbecommencedbetweenthepartiestothisAgreementconcerningthe matterssetforth inthisAgreementorthe rightand dutiesof either inrelationthereto, theprevailingpartyinsuch Actionshallbeentitled,inadditiontosuchotherreliefasmaybegranted,toareasonablesumasandforitsAttorney’sFeesandCosts.
18.Finders.LagunaandEEPUrepresentsandwarrantsthattherearenofindersorotherpartieswhichhaverepresentedLagunaorEEPUinconnectionwiththistransactionwhichhavenotreceivedappropriatecompensation.
INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreementasofthedatefirstabovewritten.
| For and on behalf of: | Silent Canyon Productions, Inc. | ||
| By: | /s/ Doug Mamary | ||
| Doug Mamary | |||
| President | |||
| For and on behalf of: | EEPU, Inc. | ||
| a Nevada corporation | |||
| By: | /s/ Matthew J. Zouvas | ||
| Matthew J. Zouvas | |||
| Chief Executive Officer | |||
