Exhibit 10.1
SHARE EXCHANGE
AGREEMENT
THIS Agreement
made as of the 5 th
day of September, 2007
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BETWEEN:
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GLOBAL
BIODIESEL LTD. , a
corporation duly constituted under the laws of the state of Nevada,
USA, and having an office at 1, place Ville Marie, suite 2818,
Montreal (Quebec), H3B 4R4
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(Hereinafter
“ Global” )
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OF THE FIRST
PART
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AND:
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JOHANN
LOEWEN , residing at 405
Front ST, Cambridge, Ontario, N3H 2C5
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AND:
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HAN SWOONG
NG , residing at 20
Futura Ave. Richmond Hill, Ontario, L4S 1V2
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AND:
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ABRAHAM
DYCK, residing at 1B
Maple Ave West Beeton, Ontario, L0G 1A0
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(Hereinafter
“ Shareholders” )
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OF THE SECOND
PART
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AND:
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METHES
ENGERGIES INC., a
corporation duly formed under the laws of the Province of Ontario,
with its head office located at 19-4090 Ridgeway Drive,
Mississauga, Ontario, L5L 5X5
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(Hereinafter
“Methes”)
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The
Shareholders hold a total of Five Million (5,000,000) shares
of common stock (the “Methes Shares”
) of Methes Energies Inc. (“ METHES ”), a
corporation duly constituted under the laws of the province of
Ontario;
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Global wishes to purchase from the Shareholders
and the Shareholders wish to sell to Global, the
Methes Shares in exchange for an equal number of shares of common
stock of Global, (the “ Global
Shares ”) subject to the terms and conditions set forth
in this Agreement.
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NOW
THEREFORE in
consideration of the covenants, representations and warranties set
forth herein and as such other further consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:
A. "Affiliate",
with respect to any Person, shall mean at the time in question, any
other Person controlling, controlled by or under common control
with such Person.
B.
"Contracts" shall mean all contracts, agreements, undertakings,
indentures, notes, bonds, loans, instruments, leases, mortgages,
commitments or other binding arrangements.
C.
"Material Adverse Effect" shall mean a
material adverse effect on the assets, liabilities, business,
property, operations, prospects, results of operations or condition
(financial or otherwise) of the relevant Person.
D.
"Permits" shall mean all licenses,
permits, orders, approvals, registrations, authorizations,
qualifications and filings with and under all Federal, state, local
or foreign laws and governmental or regulatory bodies.
E.
"Person" shall mean any individual, corporation,
partnership, firm, joint venture, association, joint-stock company,
trust, unincorporated organization, governmental, judicial or
regulatory body or other entity.
On the basis of the representations and
warranties herein contained, subject to the terms and conditions
set forth herein, the Shareholders agree to exchange with Global a
total of Five Million (5,000,000) common shares of Methes no par
value per share (the "Methes Shares") Five Million (5,000,000)
shares of Global common stock, $0.001 par value (the "Global
Shares”) .
3.
REPRESENTATIONS AND WARRANTIES OF GLOBAL
Global hereby
represents and warrants to the Shareholders that:
A.
Organization. Global is a
corporation duly organized, validly existing and in good standing,
under the laws of the State of Nevada with all requisite power and
authority to enter into, and perform its obligations under this
Agreement. Global is duly qualified or otherwise
authorized as a foreign corporation to transact business and is in
good standing in each jurisdiction in which it transacts
business.
B.
Authority. This Agreement has
been duly executed and delivered by Global and constitutes a valid
and binding agreement of Global enforceable against Global in
accordance with its terms. The execution and performance
of this Agreement will not violate or result in a breach of, or
constitute a default in any agreement, instrument, judgment, order
or decree to which Global is a party or to which the Global Shares
are subject.
C.
Capitalization. Schedule 3.C sets forth the
authorized capitalization of Global. All of the
outstanding shares of common stock of Global are duly authorized,
validly issued, fully paid and non-assessable and free of
pre-emptive rights.
D.
Certificates of Incorporation and Bylaws. Global
has heretofore delivered to the Shareholders true, correct and
complete copies of the Certificates or Articles of Incorporation
(certified by the Secretary of State of the State of Nevada) and
Bylaws of Global. The minute book of Global accurately
reflects all actions taken at all meetings and consents in lieu of
meetings of its shareholders and all actions taken at all meetings
and consents in lieu of meetings of its board of
directors.
E.
Consents and Approvals. Except as
described below in this subsection 4.E, the execution, delivery and
performance of this Agreement and the consummation of the
transactions contemplated hereby in accordance with the terms and
conditions hereof do not require Global to obtain any consent,
approval or action of, or make any filing with or give any notice
to, any Person.
F.
Legal Status. The Global Shares are, or
upon issuance shall be genuine, validity issued and outstanding,
fully paid and non-assessable and are not issued in violation of
the pre-emptive rights of any person or of any agreement by which
the Global is bound.
G.
Title. Global will transfer the Global Shares to
the Shareholders with good title and no encumbrances or liens
thereon. The Global Shares shall have a restrictive
legend restricting the transfer thereof in compliance with the
United States federal securities laws.
The Global
Shares shall be endorsed thereon with a legend to the following
effect and may also be affixed with the required restrictive
legends to comply with Canadian securities laws:
“THE
SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933
ACT”) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES AND MAY BE OFFERED FOR SALE, SOLD OR OTHERWISE TRANSFERRED
OR ASSIGNED ONLY (i) TO THE COMPANY, (ii) OUTSIDE THE
UNITED STATES IN COMPLIANCE WITH REGULATION S UNDER THE
1933 ACT, (iii) IN ACCORDANCE WITH RULE 144 UNDER
THE 1933 ACT, OR (iv) IN A TRANSACTION THAT IS OTHERWISE
EXEMPT FROM REGISTRATION UNDER THE 1933 ACT AND APPLICABLE
STATE SECURITIES LAWS, PROVIDED, PRIOR TO ANY SUCH SALE, TRANSFER
OR ASSIGNMENT, THE COMPANY SHALL HAVE RECEIVED AN OPINION OF
COUNSEL, IN FORM ACCEPTABLE TO THE COMPANY, THAT NO VIOLATION OF
SUCH REGISTRATION PROVISIONS WOULD RESULT FROM ANY PROPOSED
TRANSFER OR ASSIGNMENT. HEDGING TRANSACTIONS INVOLVING
THE SECURITIES REPRESENTED HEREBY MAY NOT BE CONDUCTED UNLESS IN
COMPLIANCE WITH THE 1933 ACT.”
F.
Transfer. Global agrees further to defend, on behalf of the
Shareholders and their respective successors, heirs and assigns, as
the case may be, the title to the Global Shares.
4.
REPRESENTATIONS AND WARRANTIES OF THE
SHAREHOLDERS AND
METHES
The
Shareholders and METHES represent and warrant to Global
that:
A.
Organization.
METHES is a corporation duly
organized, validly existing and in good standing, under the laws of
the Province of Ontario with all requisite power and authority to
enter into, and perform the obligations under this
Agreement. METHES is duly qualified or otherwise
authorized as a foreign corporation to transact business and is in
good standing in each jurisdiction in which it transacts
business.
B.
Authority. This Agreement has been
duly executed and delivered by each of the Shareholders of METHES
who is a party to this Agreement and constitutes a valid and
binding agreement of each of them enforceable against them in
accordance with its terms. The execution and performance
of this Agreement will not violate or result in a breach of, or
constitute a default in any agreement, instrument, judgment, order
or decree to which any Shareholder is a party or to which the
METHES Shares are subject.
C.
Capitalization. Schedule 4.C sets forth the
authorized capitalization of METHES. All of the METHES
Shares are duly authorized, validly issued, fully paid and
non-assessable and free of pre-emptive rights
D.
Certificates of Incorporation and Bylaws. The
Shareholders have heretofore delivered to Global true, correct and
complete copies of the Certificates or Articles of Incorporation
(certified by the Province of Ontario) and Bylaws of METHES. The
minute book of METHES accurately reflects all actions taken at all
meetings and consents in lieu of meetings of its shareholders and
all actions taken at all meetings and consents in lieu of meetings
of its board of directors.
E.
Consents and Approvals. The execution,
delivery and performance of this Agreement and the consummation of
the transactions contemplated hereby in accordance with the terms
and conditions hereof do not require the Shareholders nor METHES to
obtain any consent, approval or action of, or make any filing with
or give any notice to, any Person.
F.
Legal Status. The METHES Shares are
genuine, validity issued and outstanding, fully paid and
non-assessable and are not issued in violation of the pre-emptive
rights of any person or of any agreement by which any of the
Shareholders or METHES is bound.
G.
Title. Upon delivery to Escrow, the METHES
Shares shall be delivered with good title and no encumbrances
thereon. The METHES Shares shall have a restrictive
legend restricting the transfer thereof in compliance with the
Ontario securities laws.
E.
Transfer. The Shareholders and METHES agree further
to defend, on behalf of Global and its successors and assigns, the
title to the METHES Shares.
5.
COVENANTS AND AGREEMENTS.
A.
Conduct of Business in the Ordinary Course.
From the date hereof through the Closing Date, METHES
shall, and the Shareholders shall cause METHES to, conduct the
business of METHES in a reasonably prudent and professional
manner.
B.
Permits and Services. From the date
hereof through the Closing Date, METHES shall use, and the
Shareholders shall cause METHES to use, its best efforts to
preserve any Permits in full force and effect and to keep available
the services of its present officers, employees, consultants and
agents, maintain its present suppliers and customers and preserve
its goodwill.
C.
Litigation. From the date hereof through the
Closing Date, the Shareholders shall notify Global promptly of any
actions or proceedings that are threatened again METHES or
against any officer, director, employee, properties or
assets of METHES.
D.
Due
Diligence. Prior to the Closing Date, Global
shall be entitled, through its employees and representatives, to
make such investigation of the assets, liabilities, properties,
business and operations of METHES and such examination of the
books, records, tax returns, results of operations and financial
condition of METHES as Global wishes.
E.
Acquisition Proposals. From the date hereof through the
Closing Date, neither any of the Shareholders, nor METHES, nor any
of the officers, directors, employees, representatives or agents of
METHES, shall, directly or indirectly, solicit, initiate or
participate in any way in discussion or negotiations with, or
provide any information or assistance to, or enter into any
contract with any person or entity or group of persons or entities
(other than Global) concerning any merger, consolidation,
liquidation, dissolution, or disposition of assets of METHES or any
transfer of any of the outstanding securities of METHES (other than
the pursuant to the transactions contemplated by this Agreement)
(each an "Acquisition Proposal"), or assist or participate in,
facilitate or encourage any effort or attempt by any other Person
to do or seek to do any of the foregoing. The
Shareholders and/or METHES shall promptly communicate to Global the
terms of any Acquisition Proposal, which he or any such other
Person may receive.
F.
Further Assurances. Each of the parties shall
execute such documents and other papers and take such further
actions as may be reasonably required or desirable to carry out the
provision hereof and the transactions contemplated
hereby. Each such party shall use its best efforts to
fulfill or obtain the fulfillment of the conditions to the Closing
as promptly as practicable.
6.
CONDITIONS PRECEDENT TO THE OBLIGATION OF GLOBAL TO
CLOSE.
The obligation
of Global to enter into and complete the Closing is subject, at
Global's option acting in accordance with the provisions of this
Agreement with respect to the termination hereof, to the
fulfillment on or prior to the Closing Date of the following
conditions, any one or more of which may waived by it, to the
extent permitted by law.
A.
Representations and Covenants . The
representations and warranties of the Shareholders and METHES
contained in this Agreement shall be true and correct on and as of
the Closing Date and all subsequent closing dates with the same
force and effect as though made on and as of the Closing Date,
except that any of such representations and warranties that are
given as of a particular date and relate solely to a particular
date or period shall be true as of such date or
period. The Shareholders and METHES shall have preformed
and complied with all covenants and agreements required by this
Agreement to be performed or complied with by the Shareholders
and/or METHES on or prior to the Closing Date. The
Shareholders and METHES shall have delivered to Global a
certificate of the Shareholders and METHES, dated the Closing Date,
and signed by the Shareholders and an officer of METHES to the
foregoing effect.
B.
Third Party Consents. All
consents, Permits, and approvals from parties to Contracts with
METHES or the Shareholders that may be required in connection with
the performance by the Shareholders of METHES of their respective
obligations under this Agreement or the continuance of such
Contracts with the Shareholders or METHES in full and effect after
the Closing shall have been obtained.
C.
Lack of Litigation. No action, suit
or proceeding shall have been instituted and be continuing or be
threatened by any Person to restrain, modify or prevent the
carrying out of the transactions contemplated hereby, or to seek
damages in connection with such transactions, or those have or
could have a Material Adverse Effect on METHES.
D.
No Change in Capitalization. On the
Closing Date, the capitalization of METHES shall be as represented
in Schedule 4.C.
E.
Material Information. This Agreement, the
Schedules attached hereto and all other information provided, in
writing, by METHES or the Shareholders, taken as a whole, do not
contain any untrue statement of a material fact or omit to state a
material fact necessary to make any statement contained herein or
therein not misleading. There are no facts or conditions
which have not been disclosed to Global in writing which,
individually or in the aggregate, could have a material adverse
effect on Methes or a material adverse effect on the ability of
Methes to perform any of its obligations pursuant to this
Agreement.
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METHES
unaudited financial statements as appended hereto as Schedule
6.F(a) for the years ended November 30 th 2006 and
November 30 th
2005 as filed are true,
correct and complete in all material respects and fairly present
the financial condition of METHES and the results of its
operation
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