Document:

ex10-07.htm

Exhibit 10.07

 

MEMORANDUM OF UNDERSTANDING

 

Between

 

Dominovas Energy Corporation And

Delphi Automotive Systems, LLC

Dominovas Energy Corporation, a company organized and existing under the laws of the State of Nevada, together with its affiliates ("DEC"), and Delphi Automotive Systems, LLC, a limited liability company organized under the laws of the State of Delaware together with its affiliates acting through its Powertrain Systems division, ("Delphi"), have expressed a desire to define a mutually beneficial business relationship for the joint development of new technology that will facilitate the manufacture, assembly, sale and deployment of electrical power generation equipment employing the use of fuel cell technology.

 

Delphi has developed certain fuel cell technologies that are believed to be adaptable for use in the field of electrical power generation. Delphi owns secret and substantial technology and proprietary know-how to efficiently exploit the new technologies.

 

DEC is a provider of electrical power. DEC owns certain patents and other technology in the field of electrical power generation.

 

DEC and Delphi executed a Confidential Information Agreement dated February 25, 2014 governing information  shared by the parties with respect to technologies and transactions governed by this MOU.

 

DEC and Delphi have agreed to evaluate a possible business relationship related to the viability of adaptin& and incorporating Delphi fuel cell technology (the "SOFC Stacks") to DEC's RUBICON power generation system (the "DEC System") and a role for Delphi as the exclusive manufacturer of SOFC Stacks for the DEC System.

 

This Memorandum of Understanding ("MOU") sets forth the intended framework under which a long term business relationship would develop for the mutual benefit of both parties. Upon execution of this MOU and the successful initial field demonstration described below, the parties shall, in good faith, seek to work out the details of a formal commercial agreement expressing the rights and obligations of the two parties (the "Agreement").

 

The parties expressly understand and agree that neither party shall have any obligation or commitment to enter into an Agreement or to otherwise engage in business activities with the other party unless and until the terms of such business relationship is accepted by the parties' respective management and the Agreement is executed by authorized representatives of both of the parties. The parties agree that the terms of this MOU are not legally binding.

The anticipated terms of the Agreement are the following:

 

A. Delphi and DEC will establish a collaborative relationship, working together on application of Delphi's SOFC Stacks to the DEC System for the development of electrical power generation technologies (the "Project'').

B. Delphi and DEC will work together in 2 phases:

1. Phase I .. Successfully apply and demonstrate Delphi SOFC Stacks in the DEC System ("Proof of Concept"), as more fully described below.

2. Phase II - If Proof of Concept is successful and the parties agree, then collaborate on a plan for the continuous production of SOFC Stacks for use by DEC or other designated parties, as agreed by both parties, for the sale of electrical power to their customers ("Production and Sales"), as more fully described below.

C. The current target market is power generation in developing countries, but could also include other applications where the product developed can be applied economically.

 

  

  

  

 

D. The contemplated steps and responsibilities for Proof of Concept are as follows:

	
·  

	
Delphi and DEC will cooperate on a Proof of Concept with a series of development demonstrations for a small scale (-45kW - -1OOkW) version of the DEC System.

	
·  

	
Delphi will be responsible for design1 build, and quality of the SOFC Stacks.

	
·  

	
DEC will be responsible for the overall system design and component integration, testing and validation, including product durability in application and other aspects which relate to the DEC System and environment, including the provision of appropriate production test plans, test rigs and calibration masters and procedures, but will take input from Delphi into account.

	
·  

	
The Responsibility Chart below defines the parties' respective responsibilities for the Proof of Concept phase:

Responsibility Chart

	  	 	
Responsibility

	
Tasks

	 	
DEC

	 	
Delphi

	
Over All DEC System Requirements

	 	  	 	  
	
Define Electricity Requirements

	 	
R

	 	  
	
Define Packagi ng Dimensions

	 	
R

	 	
s

	
Define Fuel Quality

	 	
R

	 	
s

	
Define Operating Duty Cycle

	 	
R

	 	
s

	
Svstem FMEA

	 	
R

	 	
s

	
Timing

	 	
T

	 	
T

	
Stack Section

	 	  
	
SOFC Stack

	 	  	 	
R

	
Overall Stack Operating Req uirements

	 	  	 	
R

	
Air and Fuel Supply Lines

	 	
s

	 	
R

	
Exhaust Lines

	 	
s

	 	
R

	
Electrical Connections

	 	
s

	 	
R

	
Insulation/ Heat Rejection

	 	
s

	 	
R

	
Stack to Manifold Connections

	 	
s

	 	
R

	
DFMEA

	 	
s

	 	
R

	
Balance of Plant

	 	  
	
Start-up Strategy

	 	
R

	 	
s

	
Start-up Heating

	 	
R

	 	
s

	
Operating Strategy and Controls

	 	
R

	 	
s

	
Fuel and Air Processi ng and Supply to meet Fuel and Air Requirements

	 	
R

	 	  
	
Fuel and Air Requirements (Reformate composition, Temperature, Pressure and Flow Requirements)

	 	
s

	 	
R

	
Power Conditioning

	 	
R

	 	  
	
Module Heaters and Heat Exchangers

	 	
R

	 	
s

	
Electrical Buss Within Module

	 	
R

	 	
s

	
Plant to Module Connections

	 	
R

	 	
s

	
Component DFMEA

	 	
R

	 	
s

	
Manifolding

	 	
R

	 	
s

	
Testing

	 	  
	
Testing of 45kW Module

	 	
R

	 	
s

	
Testing of SOFC Stacks

	 	  	 	
R

	
Testing of Reformer

	 	
R

	 	  

 

R: Responsible, S: Support, T: Team jointly responsible

  

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E. The contemplated steps and responsibilities for Production and Sales are as follows:

DEC will be responsible for:

	
·  

	
Marketing and Sales of electric power

	
·  

	
Management and oversight of installation, commissioning and operation

	
·  

	
Management of services and customer service

	
·  

	
Overall power generation system design, validation and warranty (excluding SOFC Stacks)

	
·  

	
Delphi will be responsible for:

	
·  

	
Assembly of SOFC Stacks and the mounting support, current rods, and the connection mechanism for the same, including the design, manufacturing and technical support, as well as management of any necessary 3rd party contract manufacturers

	
·  

	
Testing SOFC Stacks prior to shipment based on agreed-upon specifications for the SOFC Stacks

	
·  

	
Providing a limited warranty on the materials and workmanship of the SOFC Stacks. Delphi will not be responsible for any system-related failures once the SOFC Stacks are integrated into the DEC System, nor for any consequential, indirect or incidental damages whatsoever related to or arising out of the SOFC Stacks in any way

	
·  

	
Training programs with DEC, specific to stack testing/gas manifolding and stack design

	
·  

	
On-going research and design for improvement of SOFC Stacks and for design and manufacturing changes and upgrades. Implementation of any recommended changes will be covered under further agreed upon quotations

 

F. Any inventions, including all intellectual property rights thereto, arising out of the work performed solely by Delphi under this MOU and/or the contemplated Agreement, including without limitation any related to integration of the SOFC Stacks with the DEC System, (the "Delphi Inventions") shall be owned exclusively by Delphi; provided, however, that for a period of five (5) years after the execution of this MOU, Delphi will not sell products containing the Delphi Inventions or otherwise make the Delphi Inventions available to competitors of DEC in the countries of the following emerging markets: Africa, South America and the Caribbean. DEC shall not analyze, attempt to reverse engineer, or attempt to modify the SOFC Stacks provided by Delphi, so it is not contemplated that DEC personnel would make any inventions based on or derived from the SOFC Stacks. However, in the event that DEC personnel do make any invention based on, or derived from, the SOFC Stacks, such inventions, including all intellectual property rights thereto, shall be owned exclusively by Delphi. In the event that DEC and Delphi collaborate on inventions based on, or derived from, the DEC Systems incorporating the SOFC Stacks, such inventions, including all intellectual property rights thereto, shall be jointly owned by DEC and Delphi.

G. As the scope and magnitude specific to the development, engineering and commercialization of multi-megawatt SOFC has not been attempted and as yet been achieved by Delphi, DEC and Delphi shall negotiate in good faith, based upon the parameters as described herein, at what price DEC will purchase the initial SOFC Stacks (-45kW - -100kW) for the Proof of Concept.  Delphi's prototype pricing and standard labor rates, as set forth in Delphi's previously submitted quotation to DEC, shall form the basis of the good faith negotiations on the price for the Proof of Concept SOFC Stacks.

 

H. Delphi and DEC will work together on a jointly defined work plan for the Proof of Concept phase, defining staffing, milestones, roles and responsibilities.

I. Following successful demonstrations in the Proof of Concept phase, the parties will create a comprehensive plan for production and sales of DEC Systems utilizing the Delphi SOFC Stacks.

 

  

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J. Under the terms of the Agreement, Delphi shall have the exclusive right to manufacture the SOFC Stacks required for production and sales of the DEC System, with reasonable margins for the SOFC Stacks. The exclusivity provisions would be subject to Delphi maintaining certain performance and quality parameters, which would be agreed upon by the parties.

K. The initial term of the Agreement is expected to be five (5) years with extensions in three (3) year increments if agreed by the parties. If a party chooses not to extend the Agreement, that party will grant the other party a license to use the non-extending party's intellectual property related to the SOFC Stacks and Project, as applicable, on commercially reasonable terms.

L. This MOU as well as the Agreement shall be governed and construed in accordance with the laws of the State of Michigan, excluding any conflicts of laws provisions.

M. Either party has the right to terminate discussions at any time and for any reason prior to entering into the definitive Agreement contemplated by this MOU, with no liability to the other party.

 

IN WITNESS WHEREOF, the parties have executed this MOU as of the day and year first above written.

 

 

	DOMINOVAS ENERGY CORPORATION	 	
DELPHI AUTOMOTIVE SYSTEMS,

LLC, acting through its

Powertrain Systems division

	 	 	 
	 	 	 
	By: /s/ Neal Allen	 	By: /s/ Mary Gustanski
	Name: Neal Allen	 	Name: Mary Gustanski
	Position: President & CEO	 	Position: VP Engineering, Launch
	 	 	Readiness & Program Management
	Date: 10/8/2014	 	 
	 	 	Date: Oct. 7, 2014

 

 

  

4ex10-10.htm

Exhibit 10.10

NEITHER THIS SECURITY NOR THE SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE OR UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES ARE RESTRICTED AND MAY NOT BE OFFERED, RESOLD, PLEDGED OR TRANSFERRED EXCEPT AS PERMITTED UNDER THE ACT PURSUANT TO REGISTRATION OR EXEMPTION OR SAFE HARBOR THEREFROM.

 

ISSUE DATE: OCTOBER 27th, 2014 PRINCIPAL AMOUNT: $165,000.00

 

DOMINOVAS ENERGY CORPORATION PROMISSORY NOTE DUE OCTOBER 27th, 2015

 

THIS Note is a duly authorized issuance of up to $165,000.00 of DOMINOVAS ENERGY CORPORATION, a Nevada corporation (the "Company") designated as its Note.

 

FOR VALUE RECEIVED, the Company promises to pay to KODIAK CAPITAL GROUP, LLC, the registered holder hereof (the "Holder"), the principal sum of one hundred sixty five thousand and 00/100 Dollars (US $165,000.00) on October 27th, 2015 (the “Maturity Date”). The principal of this Note is payable in United States dollars, at the address last appearing on the Note Register of the Company as designated in writing by the Holder. The Company will pay the outstanding principal amount of this Note in cash on the Maturity Date to the registered holder of this Note. The forwarding of such wire transfer shall constitute a payment hereunder and shall satisfy and discharge the liability for principal on this Note to the extent of the sum represented by such check or wire transfer plus any amounts so deducted.

This Note is subject to the following additional provisions:

1. The Note is exchangeable for an equal aggregate principal amount of Note of different authorized denominations, as requested by the Holder surrendering the same. No service charge will be made for such registration or transfer or exchange.

 

2. The Holder of this Note is entitled any time after April 28th, 2015, subject to the following provisions, to convert all or a portion of the principal amount of this Note into shares (the “Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”) at a conversion price for each share of Common Stock equal to the Current Market Price multiplied by fifty percent (50%) (the “Conversion Price”). “Current Market Price” means the lowest closing bid price for the Common Stock as reported by Bloomberg, LP for the thirty (30) trading days ending on the trading day immediately before the relevant Conversion Date (as defined below). The amount of shares issuable pursuant to a conversion shall equal the principal amount (or portion thereof) of the Note to be converted, divided by the Conversion Price.

Conversion shall be effectuated by surrendering the Note to the Company, accompanied by or preceded by email or other delivery to the Company of the form of conversion notice attached hereto as Exhibit A, executed by the Holder evidencing such Holder's intention to convert a specified portion hereof. No fractional shares of Common Stock or scrip representing fractions of shares will be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share. The date on which notice of conversion is given (the "Conversion Date") shall be deemed to be the date on which the Holder emails or otherwise delivers the conversion notice ("Notice of Conversion"), substantially in the form annexed hereto as Exhibit A, duly executed, to the Company. Certificates representing Common Stock upon conversion will be delivered within one (1) business days from the Conversion Date (“Delivery Date”).

 

  

  

  

The Company shall pay any payments incurred under this Section in immediately available funds upon demand as the Holder’s remedy for such delay. Furthermore, in addition to any other remedies which may be available to the Holder, in the event that the Company fails for any reason to effect delivery of the Shares by close of business on the Delivery Date, unless such failure is due to causes beyond the Company’s reasonable control or that of its Transfer Agent, the Holder will be entitled to revoke the relevant Notice of Conversion by delivering a notice to such effect to the Company, whereupon the Company and the Holder shall each be restored to their respective positions immediately prior to delivery of such Notice of Conversion; provided, however, that an amount equal to any payments contemplated by this Section which have accrued through the date of such revocation notice shall remain due and owing to the Converting Holder notwithstanding such revocation.

If, by the relevant Delivery Date, the Company fails, unless such failure is due to causes beyond the Company’s reasonable control or that of its Transfer Agent, for any reason to deliver the Shares and after such Delivery Date, the Holder of the Note being converted (a “Converting Holder”) purchases, in an arm’s-length open market transaction or otherwise, shares of Common Stock (the “Covering Shares”) in order to make delivery in satisfaction of a sale of Common Stock by  the Converting Holder (the “Sold Shares”), which delivery such Converting Holder anticipated to make using the Shares to be issued upon such conversion (a “Buy-In”), the Converting Holder shall have the right, to require the Company to pay to the Converting Holder, in addition to and not in lieu of the amounts due hereunder (but in addition to all other amounts contemplated in other provisions of the Transaction Agreements, and not in lieu of any such other amounts), the Buy-In Adjustment Amount (as defined below). The “Buy-In Adjustment Amount” is the amount equal to the excess, if any, of (x)  the Converting Holder's total purchase price (including brokerage commissions, if any) for the Covering Shares over (y) the net proceeds (after brokerage commissions, if any) received by the Converting Holder from the sale of the Sold Shares. The Company shall pay the Buy-In Adjustment Amount to the Company in immediately available funds immediately upon demand by the Converting Holder. By way of illustration and not in limitation of the foregoing, if the Converting Holder purchases shares of Common Stock having a total purchase price (including brokerage commissions) of $11,000 to cover a Buy-In with respect to shares of Common Stock it sold for net proceeds of $10,000, the Buy-In Adjustment Amount which Company will be required to pay to the Converting Holder will be $1,000.

In lieu of delivering physical certificates representing the Shares issuable upon conversion, provided the Company’s Transfer Agent is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer program, upon request of the Holder and its compliance with the provisions contained in this paragraph, so long as the certificates therefore do not bear a legend and the Holder thereof is not obligated to return such certificate for the placement of a legend thereon, the Company shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission system.

The Holder of the Note shall be entitled to exercise its conversion privilege with respect to the Note notwithstanding the commencement of any case under 11 U.S.C. §101 et seq. (the “Bankruptcy Code”). In the event the Company is a debtor under the Bankruptcy Code, the Company hereby waives, to the fullest extent permitted, any rights to relief it may have under 11 U.S.C. §362 in respect of such holder’s conversion privilege. The Company hereby waives, to the fullest extent permitted, any rights to relief it may have under 11 U.S.C. §362 in respect of the conversion of the Note. This Note has been issued subject to investment representations of the original purchaser hereof and may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended (the "Act"), and other applicable state and foreign securities laws. In the event of any proposed transfer of this Note, the Company may require, prior to issuance of a new Note in the name of such other person, that it receive reasonable transfer documentation including legal opinions that the issuance of the Note in such other name does not and will not cause a violation of the Act or any applicable state or foreign securities laws. Prior to due presentment for transfer of this Note, the Company and any agent of the Company may treat the person in whose name this Note is duly registered on the Company's Note Register as the owner hereof for the purpose of receiving payment as herein provided and for all other purposes, whether or not this Note be overdue, and neither the Company nor any such agent shall be affected by notice to the contrary.

  

2

  

4. No provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of this Note at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct obligation of the Company.

 

5. The Holder of the Note, by acceptance hereof, agrees that this Note is being acquired for investment and that such Holder will not offer, sell or otherwise dispose of this Note or the shares of Common Stock issuable upon conversion thereof except under circumstances which will not result in a violation of the Act or any applicable state Blue Sky or foreign laws or similar laws relating to the sale of securities.

6. This Note shall be governed by and construed in accordance with the laws of the State of New York. Each of the parties consents to the jurisdiction of the federal courts whose districts encompass any part of the City of New York or the state courts of the State of New York sitting in the City of New York in connection with any dispute arising under this Note and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum non coveniens, to the bringing of any such proceeding in such jurisdictions. Each of the parties hereby waives the right to a trial by jury in connection with any dispute arising under this Note.

 

7. The following shall constitute an "Event of Default":

a. The Company shall default in the payment of principal on this Note and same shall continue for a period of five (5) days; or

b. Any of the representations or warranties made by the Company herein, in any certificate or financial or other written statements heretofore or hereafter furnished by the Company in connection with the execution and delivery of this Note shall be false or misleading in any material respect at the time made; or

c. The Company shall fail to perform or observe, in any material respect, any other covenant, term, provision, condition, agreement or obligation of any Note and such failure shall continue uncured for a period of five (5) days after written notice from the Holder of such failure; or

 

d. The Company fails to authorize or to cause its Transfer Agent to issue the Shares upon exercise by the Holder through a Notice of conversion in accordance with the terms of this Note, fails to transfer or to cause its Transfer Agent to transfer any certificate for Shares issued to the Holder upon conversion of this Note and when required by this Note, and such transfer is otherwise lawful, or fails to remove any restrictive legend on any certificate or fails to cause its Transfer Agent to remove such restricted legend, in each case where such removal is lawful, as and when required by this Note, and any such failure shall continue uncured for five (5) business days; or

 

e. The Company shall (1) make an assignment for the benefit of creditors or commence proceedings for its dissolution; or (2) apply for or consent to the appointment of a trustee, liquidator or receiver for its or for a substantial part of its property or business; or

f. A trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without its consent and shall not be discharged within sixty (60) days after such appointment; or

g. Any governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or control of the whole or any substantial portion of the properties or assets of the Company and shall not be dismissed within sixty (60) days thereafter; or

h. Any money judgment, writ or warrant of attachment, or similar process in excess of One Hundred Thousand ($100,000) Dollars in the aggregate shall be entered or filed against the Company or any of its properties or other assets and shall remain unpaid, unvacated, unbonded or unstayed for a period of thirty

(30) days or in any event later than five (5) days prior to the date of any proposed sale thereunder; or

  

3

  

i. Bankruptcy, reorganization, insolvency or liquidation proceedings or other proceedings for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Company and, if instituted against the Company, shall not be dismissed within sixty (60) days after such institution or the Company shall by any action or answer approve of, consent to, or acquiesce in any such proceedings or admit the material allegations of, or default in answering a petition filed in any such proceeding; or

j. The Company shall have its Common Stock suspended or delisted from an exchange from trading for in excess of fifteen trading days.

Then, or at any time thereafter, and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder's sole discretion, the Holder may consider all obligations under this Note immediately due and payable within five (5) days of notice, without presentment, demand, protest or notice of any kinds, all of which are hereby expressly waived, anything herein or in any note or other instruments contained to the contrary notwithstanding, and the Holder may immediately enforce any and all of the Holder's rights and remedies provided herein or any other rights or remedies afforded by law.

8. The Holder may not convert this Note to the extent such conversion would result in the Holder, together with any affiliate thereof, beneficially owning (as determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder) in excess of 9.999% of the then issued and outstanding shares of Common Stock held by such Holder after application of this Section. Since the Holder will not be obligated to report to the Company the number of shares of Common Stock it may hold at the time of a conversion hereunder, unless the conversion at issue would result in the issuance of shares of Common Stock in excess of 9.99% of the then outstanding shares of Common Stock without regard to any other shares which may be beneficially owned by the Holder or an affiliate thereof, the Holder shall have the authority and obligation to determine whether the restriction contained in this Section will limit any particular conversion hereunder and to the extent that the Holder determines that the limitation contained in this Section applies, the determination of which portion of the principal amount of Note are convertible shall be the responsibility and obligation of the Holder. If the Holder has delivered a Conversion Notice for a principal amount of Note that would result in the issuance of in excess of the permitted amount hereunder, without regard to any other shares that the Holder or its affiliates may beneficially own, the Company shall notify the Holder of this fact and shall honor the conversion for the maximum principal amount permitted to be converted on such Conversion Date and, at the option of the Holder, either retain any principal amount tendered for conversion in excess of the permitted amount hereunder for future conversions or return such excess principal amount to the Holder. The provisions of this Section may be waived by a Holder (but only as to itself and not to any other Holder) upon not less than thirty (30) days prior notice to the Company. Other Holders shall be unaffected by any such waiver.

9. Nothing contained in this Note shall be construed as conferring upon the Holder the right to vote or to receive dividends or to consent or receive notice as a shareholder in respect of any meeting of shareholders or any rights whatsoever as a shareholder of the Company, unless and to the  extent converted in accordance with the terms hereof.

  

4

  

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by an officer thereunto duly authorized.

 

Dated:  October 27th, 2014

DOMINOVAS ENERGY CORPORATION

 

By:

 

 

ATTESTOR

By: Neal Allen, CEO

  

5

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