Exhibit 10.8
EQUITYPURCHASEAGREEMENT
ForthePurchaseoftheMembershipInterestsof
STERALL,LLC
byandamong
HANNAHSVALUEINVESTORS,LLC
asSeller
and
STRATEGICENVIRONMENTAL&ENERGYRESOURCES,INC.,
asBuyer
asofSeptember 12,2014
EQUITYPURCHASEAGREEMENT
ThisEquityPurchaseAgreement(this"Agreement")ismadeasofSeptember 12,2014, byandamongStrategicEnvironmental&Energy Resources, Inc., a corporation organized and existing underthe lawsofthe State ofNevada("SEER" or "Buyer"), Hannahs Value Investors, LLC("Seller") an entity formed underthelawsof the State of Delaware and Sterall, LLC, an entity formedunderthe laws of the state of Delaware("Sterall"). Buyerand Seller aresometimes referred to hereinindividually, asa "Patty"and collectively,as the"Parties."
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WHEREAS,theSEERandSterallhaveenteredintothatcertainExclusiveUseLicense &JointOperationsAgreementdatedSeptember 12, 2013, and
WHEREAS,Sterallhasandcontinuestoexpendsignificantcapitalandresourcesforthe developmentofthemedicalwastecollectionand treatment business inFlorida and elsewhere,and
WHEREAS,Sterallhasordered 10CoronaLux™systemsforlicensedusetodestroymedicalwaste,and
WHEREAS,Sterallhastakendeliveryoftwooftheorderedunits,and
WHEREAS,SEERhasandcontinuestoexpendsignificant capital and resources to assistSterallinitseffortstodevelopthemedicalwastecollectionadtreatmentbusiness inFlorida andelsewhere, and
WHEREAS,thePartiesdesiretocontinuetoworktogetherinordertomostefficiently andeffectivelyestablishcommercial operations,and
WHEREAS,Sellerdesirestosell,andBuyerdesirestopurchase,fortheconsideration andonthetermssetforthin this Agreement,membership interestsof Sterall, whichconstitutes fifteen percent (15%) of theissued andoutstanding Sterall MembershipInterests(the "Purchased Interests").
NOWTHEREFORE,forandinconsiderationofthepremises,themutualpromises, covenantsandagreementscontainedherein,andothergoodandvaluableconsideration,the receiptand sufficiency of which are hereby acknowledged,each ofthe Parties, intendingto be legallybound, hereby agreesasfollows:
| 1. | SALEANDPURCHASEOFPURCHASEDUNITS;CLOSING |
| 1.1 | PURCHASEOFPURCHASEDUNITS |
SubjecttothetermsandconditionsofthisAgreement,ontheClosingDateSelleragrees tosell,irrevocablytransferanddeliverthePurchasedMembership Interests to Buyer, and Buyer will purchase and assumefull ownershipandcontrol of the PurchasedMembershipInterests from Seller, free andclear of anyand all Encumbrances.
SubjecttothetermsandconditionsofthisAgreement,inconsiderationofthesale, transferanddeliveryto Buyer of the Purchased Membership Interests, Buyer will onthe Closing Datetransfer, assignanddeliver toSeller, or its assign, designee, or agent,one millionfive hundred thousand(1,200,000) shares (the "ConsiderationShares") of restricted common stock in Buyer (OTC:SENR).Forpurposes ofthis Agreement, the Partiesagreethat thevalue of the Purchased Units is at least equivalent to the value of the ConsiderationShares.Upon the consummation of theContemplated Transactions, there willbe atotalof150 outstanding membership interests inSterall, and Buyer willbeissued andown22.5membership interests, which shallconstitute fifteen percent (15%) ofthe totalissued andoutstandingmembership interests of Seller.
(a) Subjectto thesatisfactionand/orwaiverofallconditionstoClosingsetfo1thinArticle6hereof (other than thoseconditions which can be satisfied only bythedeliveryof documentsat Closing), the purchase and sale of the Purchased Membership Interests provided for inthis Agreement will be consummatedat a closing (the "Closing") on September 9,2014, or atsuch other time and placeas the Patties may agree inwriting.
(b) Anyrepresentationsorwarrantiesmadebyeitherpartyaremadetothebestofthat party'sknowledgethatare known, or couldor shouldhave beenknown based uponreasonable efforts or due diligence.
AttheClosingorassoonthereafterasmaybereasonable:
(a) SellerwilldelivertoBuyer:
(i) AnupdatedoperatingagreementrepresentingthePurchasedmembership interestsownedbyBuyer,dulyendorsedwithsuchotherformalitiesasmaybe required under applicable Legal Requirements andotherwisein formreasonably acceptabletoBuyer for valid transferof full title of the Purchasedmembershipintereststo Buyer and for Buyerto assume full ownership andcontrolof the Purchased membership interests;
(ii) copiesofanyConsents(orwaiversinlieuthereof)requiredofSellerand theCompanyinordertoconsummatetheContemplatedTransaction;
(iii) suchotherdocuments,instrumentsandcertificatesasmayberequiredor theBuyermayreasonablyrequest.
| (b) | BuyerwilldelivertoSeller,fordeliveryofthePurchasedUnits: |
(i) theConsiderationShares,dulyendorsed(oraccompaniedbyduly executedpowers)withsuchotherformalitiesasmayberequiredunderapplicablelegal requirements and otherwise informreasonably acceptable toSeller for validtransfer of full title of the Consideration Shares to Seller and for Seller to assume full ownership and control of the Consideration Shares;
(ii) suchotherdocuments,instrumentsandcertificatesasmayberequiredor Sellermayreasonablyrequest.
2REPRESENTATIONS ANDWARRANTIES OFSELLER
SellerherebyrepresentsandwarrantstoBuyer,asoftheClosingDateandthedatethe PurchasedMembershipinterestsare delivered to Buyer, asfollows:
2.1 ORGANIZATIONANDGOODSTANDING
(a) TheCompanyisalimitedliabilitycompanydulyorganized,validlyexistingand ingoodstandingunderthelaws of the State of Delaware, withcorporate power and authority to conductits businessasit is now beingconducted,and to own or use the properties andassets that it purportsto ownor use.
(b) SterallshalldelivertoBuyertrueandcorrectcopiesoftheOrganizational DocumentsoftheCompany,includingtheOperatingAgreementamong themembers.
2.2 AUTHORITY;NOCONFLICT
(a) SellerhasthecorporatepowerandauthoritytoconsummatetheContemplated Transactions.TheContemplatedTransactionshavebeen duly authorizedby the Seller andby the Managing Member(s) ofthe Company and no other corporateaction onthe part of Seller is necessary to consummate the ContemplatedTransactions.
(b) TheContemplatedTransactionsarelegal,validandbindingtransactions that,totheknowledgeofSeller,arenotandwillnotbecome subject toanyclaimsofany creditors ofanySeller for any reason.
(c) Theexecution,deliveryandperformanceofthisAgreementandthe consummationoftheContemplatedTransactionswillnot:
(i) conflictwithorresultinabreachofanyprovisionoftheOrganizational DocumentsoftheSeller;
(ii) conflictwithorresultinabreachof,orgiveanygovernmentalbodyor otherpersontherighttoexerciseanyremedy or obtain anyrelief under, any legalrequirementor any orderor material agreementto whichSeller maybesubject;
(iii) requireanyconsentobtainedfrom,approvalof,authorization of,or qualificationwithanyshareholder,sponsororcreditorof Seller, oranyother person or governmental body, by Seller whichhas not beenobtainedas of the date of this Agreement.
2.3 CAPITALIZATION
(a) Upontheclosingofthistransactiontherewillbeatotalof150membership interestsoutstandinginSterall.Noneof theSterall Units wereissued in violation of any legal requirementorin violation of thepreemptive rights of anyperson, andtheSterall Units were duly authorized and validly issued andarefully paid and non-assessable.
2.4 LEGALPROCEEDINGS; ORDERS
(a) Therearenopendingproceeding,andtotheknowledgeofSeller,anythreatened proceedingthatcouldreasonablybeexpectedtohaveamaterialadverse effectand the Selleris notsubject to any order that relates to the Purchased Units, the facilities, thebusinessorthe contemplated transactions.
2.5 BROKERS ORFINDERS
Sellerhasnotenteredintoanyagreementorarrangemententitlinganyagent,broker, investmentbanker,financialadvisororother firm or person to any broker'sor finder'sfeeor any other commission or similar fee in connection with the Contemplated Transactions.
2.6 COMPLIANCE WITHLAWS
Exceptaswouldnot,individuallyorintheaggregate,bereasonablyexpectedtohavea materialadverseeffect,theSelleris,andatalltimeshas been,in full compliance withalllegal requirementsand all orders of any governmentalbody applicable to it andits assets.
2.7 PERMITS
Exceptaswouldnot,individually orintheaggregate,bereasonablyexpectedtohavea materialadverseeffecttheSellerholds, has received or reasonablyexpects to receive all permits, registrations,notifications, licenses, ce1tificates, andotherauthorizations, consents and approvalsof all governmental bodies requiredof itinorder fortheSeller toown,operate and maintain its facilitiesandto operateits business (collectively, "Permits");
| (a) | theCompanyis,andat alltimeshasbeen,infullcompliancewithallsuch Permits;and |
| (b) | Allstatements,asse1tionsandcalculationsinanyapplicationforaPermitwereandremaintrueandaccurateinallmaterialrespects. |
2.8 LITIGATION
(a) Exceptaswouldnot,individuallyorintheaggregate,bereasonablyexpectedto haveamaterialadverseeffect,there is noclaim,action, proceeding orinvestigation orinquiry pending or, toSellers' knowledge, threatened, against or relating toSeller beforeany arbitrator or governmentalbody,and no orderof any court,arbitrator or governmentalbody; and
(b) ToSellers'knowledge,noeventhasoccurredorcircumstanceexiststhatmay giverisetoorserveasabasisforthecommencementofany suchclaim,action,proceeding, investigationor inquiry.
2.9 TAXMATTERS
Exceptforthemattersthatwouldnot,individuallyorintheaggregate,bereasonably expectedtohaveamaterialadverseeffect:
(a) forallperiodsendingpriortoorontheClosingDate,alltaxreturnsrequiredto befiledbyorwithrespect toSterall havebeen orwillbe timelyfiledwiththeappropriatetaxing authorities in alljurisdictions in which suchtax returns are required to befiled, regardlessof when such taxreturns are requiredto befiled;
(b) forallperiodsendingpriortoorontheClosingDate,suchtaxreturnsareorwill betrueandcorrectin all material respects, and allTaxes legally due onor prior totheClosing
Datehavebeenor willbetimelypaid;and
(b) therearenoaudits,disputes,claims,assessments,deficiencynotices,levies, administrativeproceedings,orlawsuitspending,ortotheknowledge of Seller, threatened against orwithrespect toSeller byany taxing authority.
ThefacilitiesandthetangibleassetsoftheSellerareorwillbecoveredbyinsurance policiesandwithreasonablecoverages, limits anddeductibles inaccordance with industry standards.Suchcoverages,limits anddeductibles will continue to be infull force and effect for all periods subsequent to Closing Date.
SellerisacquiringtheConsiderationSharesforitsownaccount,forinvestmentpurposes onlyandnotwithaviewtothedistribution (as such termis used inSection2(11)oftheSecurities Act of 1933,as amended (the "SecuritiesAct"). Seller understands that the Consideration Shares havenot beenregistered underthe Securities Act, andcannot be soldunless subsequently registered undertheSecuritiesAct oran exemptionfromsuchregistration is available.
3 REPRESENTATIONS ANDWARRANTIES OFBUYER
BuyerrepresentsandwarrantstoSellers,asofthedatehereofandasoftheClosingDate, asfollows:
3.1 ORGANIZATIONANDGOODSTANDING
Buyerisacorporationdulyorganized,validlyexistingand ingoodstandingunderthe lawsoftheStateof Nevada,with corporate powerand authority toconductitsbusinessas it is now being conducted, and to own or use the properties and assets that itpurports to own or use.
3.2 AUTHORITY;NOCONFLICT
| (a) | BuyerhasthecorporatepowerandauthoritytoconsummatetheContemplated Transactions.TheContemplatedTransactionshavebeendulyauthorized bythe Board of Directors of Buyer and no other corporate actionon thepart of Buyeris necessary to consummate the Contemplated Transactions. |
| (b) | ThisAgreementhasbeendulyandvalidlyexecutedanddeliveredbyBuyerand, assumingthedueandvalidauthorization,executionanddeliverythereof bySellers,isa validand binding obligation of Buyer, enforceable against Buyer inaccordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors'rights, generalequitable principles (regardless of whethersuch enforceability is consideredina proceeding inequityoratlaw). |
| (c) | Theexecution,deliveryandperformanceofthisAgreementandthe consummationoftheContemplatedTransactionswillnot: |
(i) conflictwithorresultinabreachofanyprovision oftheOrganizationalDocumentsofBuyer;
(ii) conflictwithorresultinabreachof, orgiveanyGovernmentalBodyor otherPersontherighttoexerciseanyremedyor obtainanyreliefunder, any LegalRequirement or any Order or materialagreement to which Buyer maybe subject; or
(iii) requireanyConsentobtainedfrom,approvalof,authorizationof,or qualificationwithanyshareholder,sponsororcreditorBuyer,or any other Personor Governmental Body, by Buyer.
ThereisnopendingProceedingthatcouldreasonablybeexpectedto haveaMaterial AdverseEffectonBuyeroranyofthe Contemplated Transactions andto the knowledge of Buyer, no such Proceeding has been Threatened.
| 3.4 | INVESTIGATIONBYBUYER;SELLERS'LIABILITY |
Buyerhasconducteditsownindependentinvestigation,reviewandanalysisofthe business,operations,assets,liabilities,resultsofoperations,financialcondition,technology and prospectsof theSeller,which investigation, review and analysis wasdone byBuyer and,to the extent Buyer deemed appropriate, by Buyer'sRepresentatives based on information made available bySellertothe Buyer. Buyer acknowledges that it anditsrepresentatives havebeen providedadequateaccess to the personnel,properties, premises and recordsof the Seller forsuch purpose.
Buyerhas notenteredintoanyagreementorarrangemententitlinganyagent,broker, investmentbanker,financialadvisororother firm or Personto any broker's or finder's fee or any other commission or similar fee in connectionwith the Contemplated Transactions.
4.1 EXPENSES
ExceptasotherwiseexpresslyprovidedinthisAgreement, eachPartytothisAgreement willbearitsrespectiveexpensesincurredin connectionwith the preparation,executionand performance ofthisAgreementandthe Contemplated Transactions, including allfeesand expensesofagents,representatives, counselandaccountants. Sellers willcause theCompanynot toincur any out-of-pocket expenses in connectionwith this Agreement.
4.2 FURTHER ASSURANCES
BuyerandSellersagree(a)tofurnishuponrequesttoeachother such further information,(b)toexecuteanddelivertoeach other such otherdocuments,and(c) todo suchother acts and things, in each case, allas the other Party or Parties may reasonably request for the purpose of carrying out the intent ofthis Agreement and theContemplated Transactions.
4.3 ENTIREAGREEMENT ANDMODIFICATION
ThisAgreementsupersedesallprioragreements(whetheroralorin writing) by and amongthe Partieswith respectto itssubjectmatterand constitutes (alongwith the documents referredto in this Agreement)a complete and exclusivestatement of the termsof the agreement among theParties withrespectto its subject matterand is notintended to confer anyrightsor remedies upon any Personother than theParties. This Agreement may not beamendedexcept by a written agreement executedbyBuyer and Sellers.
4.4 ARBITRATION
BuyerandSellersherebyagreethatalldisputesarisingoutoforinconnectionwiththis AgreementortheBreach,terminationorvaliditythereof("Dispute")shall be finallysettled under the Rules of Arbitration of the AmericanArbitration Association("AAA"),then in effect (the "Rules") byone(1)arbitrator. The hearingshall take placein Denver,Colorado. The award may include anaward of interest, legalfees and costsofthe arbitration.The award shall be final, bindingand conclusive upon the Parties. Each Partyshall have the right to have the award enforced by any court ofcompetent jurisdiction.
4.5 ASSIGNMENTS,SUCCESSORS,ANDNOTHIRD-PARTYRIGHTS
NeitherBuyernorSellersmayassignanyofitsrightsunderthisAgreementwithoutthe priorwrittenconsentofthe otherPartyor Patties,except thatBuyermayassign any ofitsrights underthis Agreement to any Affiliate or Subsidiary of Buyer without such consent of Sellers. Subject to thepreceding sentence, thisAgreement willapplyto,be bindinginall respects upon, and inure to the benefitof the successorsand permitted assigns of, the Parties.Nothing expressed or referred to inthis Agreement willbe construedtogiveany Person otherthanthe Pattiesany legal or equitable right,remedyor claim under or with respectto this Agreement or any provision ofthisAgreement. This Agreement and all ofitsprovisions and conditionsarefor the sole and exclusive benefitof the Parties and theirpermitted successorsandassigns.
4.6 SEVERABILITY
IfanyprovisionofthisAgreementisdeterminedtobevoid,illegal,invalid, unenforceableorcontrarytopublic law or policy, the other provisionsof this Agreementshall remainin full force andeffect. Any provision of this Agreement so determined to be void, illegal, invalid, unenforceable or contrary to public law or policyonly inpartor degreeshallnot affect the validity or enforceability of the remaining provisions of this Agreement.
4.7 GOVERNING LAW
ThisAgreementwillbegovernedbythelawsoftheStateofColoradowithoutregardto conflictsoflawsprinciples.
4.8 COUNTERPARTS
ThisAgreementmaybeexecutedinoneormorecounterparts,eachofwhichwillbedeemedtobeanoriginal copy ofthis Agreement and all of which, whentakentogether, will be deemed to constitute one and the sameagreement.
4.9 CONFLICTBETWEENAGREEMENT ANDATTACHMENTS, ETC.
IntheeventofconflictbetweenthisAgreementandtheExhibitsandSchedulesattached tothisAgreement,thisAgreementshallprevail.
4.10 EXHIBITSANDSCHEDULES
All Exhibits and Schedules to this Agreement, if any, form part of this Agreement.
INW1TNESSWHEREOF,thePartieshaveexecutedanddeliveredthisAgreementas of thedatefirst abovewritten.
"Buyer":
STRATEGIC ENVIRONMENTAL & ENERGY RESOURCES, INC.
By: /s/ J John Combs III
Name:J.JohnCombs III
Title:ChiefExecutiveOfficer
"Sellers"
Hannahs Value Investors LLC
By: /s/ Gerald Hannahs
Name: Gerald Hannahs
Title: Managing Member
STERALL,LLC
