Document:

Exhibit 10.3

 

Exhibit
10.3

SERVICES AGREEMENT

     This
SERVICES AGREEMENT (the “Agreement”) is entered into this
1st day of February, 2008 (the
“Effective Date”), by and between ARIZONA RESEARCH AND DEVELOPMENT, INC., an Arizona corporation
(“ARD”), and POWERVERDE, INC., a Delaware corporation (“PowerVerde”).

Recitals

	A.	 	PowerVerde has applied for certain patents and holds other intellectual property
(individually and collectively the “Intellectual Property”) created in connection with the
development of an engine which will be driven by excess heat derived from other sources (the
“Engine”). The Engine and the Intellectual Property are hereinafter called the “Technology.”
	 
	B.	 	ARD possesses certain technological, machining and engineering skills that are critical to
PowerVerde in the development of the Technology.
	 
	C.	 	George Konrad, the principal of PowerVerde, and its largest shareholder, is also the sole
shareholder of ARD.
	 
	D.	 	The purpose of this Agreement is to formally memorialize the terms and conditions under which
ARD will make its services available to PowerVerde.

Agreement

     1. Services. ARD will perform engineering, machining and other development services
in connection with the development of the Technology as PowerVerde may require. PowerVerde will
use its best commercially reasonable efforts to notify ARD in advance of its service requirements
and the time for effecting delivery of all services. Machining and other services may be performed
by ARD in accordance with the specifications furnished by PowerVerde, unless ARD is retained by
PowerVerde to provide specifications for any aspect of the Engine or the technology.

     2. Ownership of Inventions. Any inventions or innovations made or created by ARD or
any of its employees or agents while performing services for PowerVerde shall be the exclusive
property of PowerVerde and ARD hereby assigns to PowerVerde any such inventions.

     3. Rate. ARD will charge PowerVerde for the services performed by George Konrad on
behalf of ARD in connection with engineering, development, or machining of parts required for the
Technology at the rate of $60.00 per hour. ARD shall record Konrad’s time in an accurate manner in
increments no greater than one-quarter of an hour. In addition, ARD will invoice PowerVerde for
machine shop services and manufacturing services provided to PowerVerde by ARD at the going,
competitive rates for machine shop services, which rate shall not be less than $60.00 per hour, nor
more than $75.00 per hour.

     4. Space. If PowerVerde needs to occupy space within ARD’s facility for the purpose
of engineering and developing the Technology, ARD will make space available at a

 

licensed rate of $0.75 per square foot per month, which rate shall include space used for
office, storage, materials and any miscellaneous space occupied by PowerVerde.

     5. Power. PowerVerde shall be responsible for and shall reimburse ARD for the cost of
any additional electrical current used by it in the development or testing of the Technology,
including, without limitation, heaters or other equipment which are heavy users of electricity.
ARD shall develop a fair method of allocating costs of electrical usage, to the extent electric
usage for PowerVerde property is not separately metered.

     6. Expenses. PowerVerde agrees to reimburse ARD for all reasonable expenses incurred
by ARD on behalf of PowerVerde that are not reimbursed under another provision of this Agreement.
ARD shall present PowerVerde with an itemized listing of expenses (with back-up information, if
requested) in order to obtain reimbursement for such expenses.

     7. Telephone Lines. PowerVerde shall reimburse ARD monthly for the costs of all
telephone lines used by PowerVerde.

     8. Term. This Agreement shall remain in effect until terminated by either party.

     9. Termination. This Agreement may be terminated by a either party by delivering
written notice of termination to the other party; provided that termination shall not be effective
until the 61st day after written notice of termination has been delivered to the other party.

     10. PowerVerde Board Approval. Notwithstanding Section 7 above, this Agreement shall
automatically terminate 120 days after the Effective Date unless this Agreement is approved by an
independent majority of the Board of Directors of PowerVerde, exclusive of Mr. George Konrad.

     11. Amendments. This Agreement may be amended only by a writing executed by both
parties hereto.

     12. Insurance. ARD shall maintain workers’ compensation insurance. ARD shall
maintain such other general liability insurance as ARD and PowerVerde may agree from time to time.
ARD hereby discloses that its current insurance coverages may not cover liabilities or injuries
arising from operating, testing or developing high pressure devices, such as the Engine.

     13. Settlement of Disputes. Should any disputes arise between the parties in
connection with this Agreement, the parties shall use their best efforts to resolve the dispute
through the negotiation between the parties. Any such dispute not satisfactorily settled by
negotiation, after 30 days, may be brought as a claim(s) by either party in a court of law having
jurisdiction over the subject matter hereof. The prevailing party in any such dispute shall be
entitled to recover its reasonable attorneys’ fees and costs incurred in connection with such
dispute.

     14. Entire Agreement. This Agreement shall constitute the entire and only agreement
between the parties with respect to the subject matter hereof and supersedes all negotiations or
communications between the parties prior to the execution of this Agreement concerning the subject
matter hereof

2

 

     15. Governing Law. This Agreement is entered into and shall be governed by the
substantive laws of the State of Arizona, without regard to conflict of law principles.

     16. Jurisdiction. In the event of any dispute between the parties, jurisdiction and
venue shall lie solely in the state or federal courts located in Maricopa County, Arizona, and by
executing this Agreement, each party consents to the jurisdiction and venue of such courts and
hereby waives any objection or defense such party may have thereto.

     17. Attorneys’ Fees. In the event of any dispute between the parties, the prevailing
party shall be entitled to recover its attorneys’ fees and costs of court, including any expert
witness fees.

     18. Successors and Assigns. This Agreement shall be binding on each of the party’s
and the successors and assigns of any such party.

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

	 	 	 	 	 
	 

	 	“ARD”	 	 
	 
	 	 	 	 
	 	 	Arizona Research and Development, Inc., an
	 	 	Arizona corporation
	 
	 	 	 	 
	 

	 	By:	 	/s/ George Konrad
	 

	 	 	 	 
	 

	 	Its:	 	President
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	“PowerVerde”
	 
	 	 	PowerVerde, Inc., a Delaware corporation
	 
	 	 	 	 
	 

	 	By:	 	/s/ George Konrad
	 

	 	 	 	 
	 

	 	Its:	 	President
	 

	 	 	 	 

3form8k021108ex10-1.htm

    
      

      

    

    

    

    Global
General Technologies, Inc.

    201 South Biscayne
Boulevard

    28th
Floor Miami Center

    Miami,
FLorida 33131

    1-800-936-3204

    

                                            January 23,
2008

    

    Smart
Wear Technologies Inc.

    10120 South Eastern Avenue

    Suite 200

    Henderson, Nevada 89052

    

    Attention:          Robert
Reed, President

     

    Dear Mr.
Reed:

     

    Thank you for expressing an interest in
our company.

     

    Global General Technologies, Inc.
(“GLGT”), a publicly-held Nevada corporation, is pleased to express its interest
in pursuing a merger or other business combination (the “Prospective Business
Combination”) with Smart Wear Technologies Inc. (“Smart Wear”), a privately-held
Delaware corporation.

     

    The purpose of this letter is to
summarize the preliminary discussions and negotiations we have had regarding the
Prospective Business Combination. This correspondence is not intended to be a
comprehensive recitation of the terms of the Prospective Business Combination,
nor is it intended to be conclusive as to any and all matters discussed or
omitted unless expressly noted to the contrary. This is an expression of our
mutual interest in the Prospective Business Combination only and is not in any
way to be construed as a binding agreement, unless expressly noted to the
contrary. Any agreement among the Parties shall be subject to the execution of a
definitive agreement and appropriate related documentation in forms satisfactory
to the Parties, their counsel, and their respective boards of directors, and, to
extent, required, their shareholders.

    

    
      	
               
      

            	
              Section
      1. Type of Business Combination.

            

    

    

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    The
authorized capital of Smart Wear consists of

    

    
      	
               
      

            	
              (a)

            	
              shares
      of Common Stock,

            

    

    

    (i)           of
which 50,000,000 shares are authorized; and

    

    
      	
               
      

            	
              (ii)

            	
              of
      which 24,278,832 shares are issued and outstanding as at January 14, 2007;
      and

            

    

    

    
      	
               
      

            	
              (b)

            	
              shares
      of Preferred Stock,

            

    

    

    (i)           of
which 20,000,000 shares are authorized; and

    

    
      	
               
      

            	
              (ii)

            	
              of
      which no shares are issued and outstanding as at January 14,
      2007.

            

    

     

    The authorized capital of GLGT consists
of

    

    
      	
               
      

            	
              (a)

            	
              shares
      of Common Stock,

            

    

    

    (i)           of
which 100,000,000 shares are authorized; and

    

    
      	
               
      

            	
              (ii)

            	
              of
      which 76,376,998 shares are issued and outstanding as at January 14, 2007;
      and

            

    

    

    
      	
               
      

            	
              (b)

            	
              shares
      of Preferred Stock,

            

    

    

    (i)           of
which 10,000,000 shares are authorized; and

    

    
      	
               
      

            	
              (ii)

            	
              of
      which no shares are issued and outstanding as at January 14,
      2007.

            

    

    
      	
               
      

            	
               

            

    

     

    
          It is presently
contemplated that GLGT and the Shareholders of Smart Wear will enter into
an agreement (the “Stock Exchange Agreement”) which calls for the holders
of  all of  the Issued and Outstanding shares of Common
Stock of Smart Wear (the “Former Smart Wear Shareholders) to deliver their
shares to GLGT in exchange for receipt of shares of Preferred Stock of
GLGT.

       

    

    The Share Exchange Agreement shall
provide that the Former Shareholders of Smart Wear shall be given the right to
register their GLGT Preferred Shares (or any other

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    security
into which the Preferred may be converted) for re-sale under the Securities Act
of 1993, in such respective amounts and at such times as may be agreed upon by
the Parties.

    

    Thus, Smart Wear would become a
wholly-owned subsidiary of GLGT. We have not yet determined whether or not Smart
Wear would, thereafter, merge (the “Merger”) into GLGT, with GLGT being the
surviving corporation.

    

    In addition to existing shareholders of
record of Smart Wear who, as at the date of this Letter of Intent, own duly
authorized, validly issued, and fully paid-for shares of Common Stock of Smart
Wear, you have advised us that there may exist certain persons who may have
rights to acquire shares of Common Stock of Smart Wear. In order to avoid the
uncertainty this situation may create with respect to the identity and scope of
those persons who are entitled to receive shares of Preferred pursuant to the
Share Exchange Agreement, the Parties have agreed that, prior to the Closing,
there shall be in existence (if there ever were) no persons [other than existing
shareholders of record of Smart Wear (as at the date of this Letter of Intent)
who own duly authorized, validly issued, and fully paid-for shares of Common
Stock of Smart Wear] who have rights to acquire shares of Common Stock of Smart
Wear. Furthermore, the Parties also agree that, it is in their mutual best
interests that, post Closing, there shall be no shareholder of Smart Wear other
than GLGT.

     

    GLGT is presently indebted to various
persons, who, as creditors, therefore have claims against GLGT. These claims
approximate $150,000.00. Prior to the Closing, these persons will have exchanged
those claims for 23,623,002 shares of Common Stock of GLGT pursuant to Section 3
(a) (10) of the Securities Act of 1933. Thus, pre Closing, there shall be Issued
and Outstanding 100,000,000 shares of Common Stock of GLGT.

     

    It is the intent of the Parties that,
ultimately, 70% of the then Issued and Outstanding shares Common Stock of GLGT
shall be owned by the Former Shareholders of Smart Wear (in existence as at the
date of the Closing of the Share Exchange Agreement) and 30% of the of the then
Issued and Outstanding shares Common Stock of

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    GLGT
shall be owned by those Shareholders of GLGT (in existence as at the date of the
Closing of the Share Exchange Agreement.)

     

    In order to effectuate this result, the
Parties agree that

     

    
      	
              (a)

            	
              the
      Share Exchange Agreement shall provide that, if the price of the Common
      Stock shall be at least $.50 per share, the Board of Directors of GLGT
      shall, on or after 180 and 360 days, respectively, following the
      Closing:

               

            

    

    
      	
               
      

            	
              (i)

            	
              authorize
      a reverse split of the Common Stock so that, for every five shares of the
      Common Stock held on the 180th
      and 360th,
      respectively, a shareholder would receive three
  shares;

            

    

    

    
      	
              (b)

            	
              the
      shares of Preferred Stock of GLGT to be issued to the Former Shareholders
      of Smart Wear shall provide that the shares of the Preferred may be
      exchanged for shares of the Common so in such a formula as to enable the
      Former Shareholders of Smart Wear to acquire record ownership of that
      number of shares of the Common as shall be equal to 70% of the then number
      of shares of the Common to be Issued and
  Outstanding.

            

    

    

    
      	
               
      

            	
              Section
      2. Due Diligence.

            

    

     

    During the period of time commencing
with (i) the date of this Letter of Intent and (ii) continuing through the
“Closing” as the term shall be defined in the Stock Exchange Agreement (the “Due
Diligence Period”), each of the Parties, together with its attorneys,
accountants, and representatives shall be permitted to make a full and complete
investigation of the business of the other and have full access to all of the
books, records, contracts, and assets of the other during reasonable business
hours. Each of the Parties and its representatives shall also have access to
customers, suppliers and employees of the other for the purpose of gaining
information, subject to the condition that at least one officer of each Party
shall participate in such discussions.

     

    During the Due Diligence Period, the
Parties shall consult with each other

    with a
view toward identifying, negotiating, and memorializing the Stock Exchange
Agreement and various sundry agreements, such as by way of example, but
not

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    limitation:

    
      	
              (a)

            	
              No-Shop Covenant. During
      the Due Diligence Period, and for a period of one year following the
      Closing, Smart Wear and its principals shall not directly or indirectly
      through any director, officer, employee, agent, representative (including,
      without limitation, investment bankers, attorneys and accountants) or
      otherwise,

               

            

    

    
      	
               
      

            	
              (i)

            	
              solicit,
      initiate or encourage submission of proposals or offers from any third
      party, relating to any acquisition or purchase of all or a material
      portion of the assets of Smart Wear or any equity interest in Smart Wear,
      or any transaction, consolidation or business combination with Smart Wear,
      or

               

            

    

    
      	
               
      

            	
              (ii)

            	
              participate
      in any discussions or negotiations regarding, or furnish to any person any
      information with respect to, or otherwise cooperate in any way with, or
      assist or participate in, facilitate or encourage, any effort or attempt
      by any person to do or seek any of the foregoing; and, in that
      connection,

               

            

    

    
      	
               
      

            	
              (A)

            	
              Smart
      Wear and its principals represent that neither they nor any of their
      subsidiaries or affiliates are a party to or bound by any agreement with
      respect to any such transaction other than as contemplated by this Letter
      of Intent.

               

            

    

    
      	
              (b)

            	
              Confidentiality. All
      information communicated between the Parties with regards to

               

            

    

    
      	
               
      

            	
              (i)

            	
              the
      contemplated Stock Exchange Agreement;

               

            

    

    
      	
               
      

            	
              (ii)

            	
              the
      Parties respective business; and

               

            

    

    
      	
               
      

            	
              (iii)

            	
              all
      information exchanged at all times during the negotiations, is
      confidential and will not be disclosed to anyone other than their
      respective advisors and internal
      staff of the parties and necessary third parties, such as lenders
      approached for financing.  No
      press or other publicity release will be issued to the general
      public

            

    

    
    

    
    

    
    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              concerning
      the proposed transaction without mutual written consent unless required by
      law, and then only upon prior written notice to the other
      Party.

            

    

    
      	
               
      

            	
               

               

            

    

    
      	
              (c)

            	
              Non-competition
      Agreements. GLGT and its principals shall execute non-competition
      agreements containing non-circumvention and non-interference provisions
      respecting the Merger.

            

    

    

    Section
3.  Audits and SEC Filings.

     

    Smart Wear’s Audit

     

    Smart Wear is presently undergoing an
audit of its financial statements and elated statements of income and retained
earnings for the periods ending 12/31/05, 12/3/06, and 12/31/07 (the “Audited
Financial Statements”). It is anticipated that the Audited Financial Statements
will be completed within 30 to 45 days from the date of this Letter of
Intent.

     

    The Audited Financial Statements shall
be prepared in accordance with generally accepted accounting principles
consistently followed by Smart Wear throughout the periods indicated. The
Audited Financial Statements shall fairly present the financial condition of
Smart Wear at the dates indicated and the results of its operations and cash
flows for the periods then ended and, except as indicated therein, reflect all
claims against, debts and liabilities of Smart Wear, fixed or contingent, and of
whatever nature. The Audited Financial Statements shall be an exhibit to the
Stock Exchange Agreement.

     

    In the meantime, Smart Wear will
provide GLGT with interim, unaudited financial statements and elated statements
of income and retained earnings for the periods ending 12/31/05, 12/31/06, and
12/31/07 (the “Unaudited Financial Statements”). The Audited Financial
Statements shall fairly present the financial condition of Smart Wear at the
dates indicated and the results of its operations and cash flows for the periods
then ended and, except as indicated therein, reflect all claims against, debts
and liabilities of Smart Wear, fixed or contingent, and of whatever nature;
provided, however, that
GLGT acknowledges that the Unaudited Financial Statements have not been audited
and may be subject to revision pending receipt of the Audited Financial
Statements for the same periods. Accordingly, by way of example, and not
limitations, such items as the Share Exchange Ratio may be adjusted before the
Closing of the Stock Exchange Agreement.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    GLGT’s SEC Filings.

     

    Smart Wear understands that GLGT will have to amend
certain of its filings with, and submit additional filings to, the SEC (“GLGT’s
SEC Filings”), and, in order to induce GLGT to enter into and deliver this
Letter of Intent to Smart Wear, Smart Wear is willing to, and within 5 days upon
the execution of this Letter of Intent, Smart Wear will advance to GLGT the sum
of $15,000.00 to enable GLGT to make these SEC Filings.

    

    Section 4. Conduct of
Business.

     

    During the Due Diligence Period, the
Parties shall continue to operate their respective business as
usual.

    

    Section 5. Costs.

     

    Except as set
forth in Section 4. concerning GLGT’s SEC Filings, the Parties shall each bear
their own costs and expenses, including without limitation, fees of legal
counsel, accountants, and other consultants or representatives incurred in
connection with the transactions contemplated hereby, whether or not they are
consummated.

    

    Section
6. Governing Law; Jurisdiction.

    
      

      (a)           This
Letter of Intent shall be interpreted, construed and enforced according to the
laws of the State of New York, without regard to the conflicts of law rules or
principles except as required by mandatory provisions of law.

       

      (b)           The
Parties to the full extent permitted by law, hereby knowingly, intentionally
and voluntarily, with and upon the advice of competent
counsel,

       

      (i)            submit
to personal jurisdiction in the State of New York over any suit, action or
proceeding by any person arising from or relating to this
agreement,

       

      (ii)            agree
that any such action, suit or proceeding may be brought in any state or federal
court of competent jurisdiction sitting in the County of New York, State of New
York,

       

      (iii)   submit to the
jurisdiction of any federal or state court of competent jurisdiction located in
the County of New York, State of New York

       

      (c)           the
Parties, to the full extent permitted by law, hereby knowingly, Section
6. Governing Law; Jurisdiction.

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    intentionally
and voluntarily, with and upon the advice of competent counsel, waive,
relinquish, and forever forgo, the right to a trial by jury in any action or
proceeding

     

    
      (i)           based
upon, arising out of, or in any way relating to this Letter of Intent;
or

       

      (ii)          any
conduct, act or omission of any Party hereto (or any of its members, managers,
employees, agents or attorneys, or any other persons associated with such
party), in each of the foregoing cases, whether sounding in contract, tort or
otherwise.

    

     

    
      	
              (ii)

            	
              any
      conduct, act or omission of any Party hereto (or any of its members,
      managers, employees, agents or attorneys, or any other persons associated
      with such party), in each of the foregoing cases, whether sounding in
      contract, tort or otherwise.

            

    

    

    Section
7. Conditions to Closing.

     

    The transactions contemplated hereby
shall be subject to the fulfillment of

    the
following conditions:

     

    (a)           Satisfactory
completion of due diligence by the Parties;

     

    (b)           Shareholder
and director approval of each respective Party, as required.

     

    (c)           The
negotiation and execution of definitive documentation containing customary terms
and conditions for transactions similar to Stock Exchange Agreement transactions
involving similar parties.

    

    Section
8. Miscellaneous.

     

    This Letter of Intent constitutes the
entire understanding among the Parties and supersedes all prior communications,
agreements, and understandings, written or oral, with respect to the Proposed
Business Combination.

    This Letter of Intent may be signed in
counterparts, all of which shall constitute the same agreement and shall bind
and inure to the benefit of the Parties and their respective successors and
assigns.

     

    If the foregoing is in accordance with
your understanding, please sign this Letter of Intent in the space indicated
below and return it to us for receipt not later than 5:00 p.m. (Easter Daylight
Time) on January 23, 2008.

    The proposal contained herein will
expire unless we have received this letter signed within this time period or if
sooner rejected.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    Very truly yours,

    Global General Technologies,
Inc.

    

    By:  _/s/_________________________________

    

    The foregoing is hereby agreed to and
accepted by Smart Wear Technologies Inc. this 23rd day of January
2008

     

    Smart Wear Technologies
Inc.

    

    By:  _/s/_________________________________

    Robert Reed, President

    

     

    9

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