Document:

Unassociated Document

    JOINT
      VENTURE
      AGREEMENT

    

    

    This
      Joint Venture Agreement (this “Agreement”)
      is made
      and entered into this 10th day of October 2005 by and between William R.
      Jackson, PhD, with offices at P.O. 1749, Evergreen, CO or his assignee
      (“JACKSON”)
      and
      Electric Aquagenics Unlimited, Inc., a Delaware corporation with offices at
      1464
      West 40 South, Suite 100, Lindon, Utah 84042 (“EAU”).
      JACKSON and EAU are referred to herein sometimes collectively as the
“Parties”
      and
      individually as the “Party.”

    

    RECITALS:

    

    WHEREAS,
      JACKSON
      is in the business of researching, developing, manufacturing and marketing
      certain proprietary products that clean, sanitize and protect as well as
      products that minimize corrosion, mold, mildew, fungi and other microbial growth
      on interior and exterior surfaces, and have a myriad of application, including
      agricultural, all of which are more particularly described on Exhibit “A,”
attached hereto and incorporated herein by reference (the “JACKSON
      Products”);
      and

    

    WHEREAS,
      JACKSON
      markets certain of the JACKSON Products to third parties (the “Marketed
      Products”);
      and

    

    WHEREAS,
      JACKSON
      has contracted with numerous third parties to market the JACKSON Products
      domestically in multiple market sectors nationally and internationally (the
      “JACKSON
      Sales Agents”);
      and

    

    WHEREAS,
      certain
      of the JACKSON Products are in the research and development stage and have
      not
      been introduced into the market (the “Undeveloped
      Products”)
      and are
      described on Exhibit “A”; and

    

    WHEREAS,
      certain
      of the JACKSON Products are still in the a conceptual stage and are not yet
      subject to any development and are described on Exhibit “A” (the “Concept
      Products”);
      and

    

    WHEREAS,
      EAU
      designs, manufactures and sells equipment that produces electrolyzed oxidative
      water that is useful in a variety of applications, including killing and
      controlling the growth of mold (the “EO
      Products”);
      and

    

    WHEREAS,
      EAU
      manufactures products that contain proprietary stabilized oxygen known as
“Aquagen®,” (the “Aquagen
      Products”);
      and

    

    WHEREAS,
      EAU
      markets and sells many of the EO Products and the Aquagen Products in diverse
      marketing channels that include industrial, commercial and residential
      applications; and 

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    WHEREAS,
      JACKSON
      and EAU desire to establish a limited liability company as a joint venture
      company, (the “JVC”)
      for the
      purpose of developing, promoting, distributing and selling JACKSON Products,
      including the Marketing Products, the Undeveloped Products and the Concept
      Products, that may include applications with the EO Products and the Aquagen
      Products:

    

    NOW,
      THEREFORE,
      in
      consideration of the promises and mutual agreements and covenants herein
      contained, the parties hereby agree as follows:

     

    ARTICLE
      1

    NAME
      AND SCOPE OF BUSINESS; THE JACKSON SALES AGENTS

    

    1.1 Purpose
      of the JVC.
      The
      purpose and scope of the business to be engaged in by the JVC shall be to (A)
      increase the promotion, distribution and sale of JACKSON Products; and (B)
      develop, prepare to market and market the Undeveloped Products and the Concept
      Products, with or without application of the EO Products and the Aquagen
      Products.

    

    1.2 The
      JACKSON Sales Agents.
      The
      Parties shall retain certain of the JACKSON Sales Agents and empower them to
      market and sell the EO Products to their current customers; and shall establish
      direct independent sales agreements with each of the JACKSON Sales Agents to
      affect the purposes of this paragraph.

    

    ARTICLE
      2

    FORMATION
      AND CONTRIBUTIONS

    

    2.1 Formation
      and Organization.
      Promptly
      after the execution of this Agreement, the Parties shall cause “Articles of
      Organization” (the “Articles”)
      to be
      executed and filed with the Nevada Secretary of State and shall execute an
      “Operating Agreement,” (the “Operating
      Agreement”)
      to
      govern the JVC, acceptable to the Parties. In addition to the foregoing, the
      parties shall take all other actions required to form the JVC under the laws
      of
      the State of Nevada.

    

    2.2 Contributions.
      Upon
      the
      execution of this Agreement or as soon thereafter as is practicable, subject
      to
      the conditions set forth in Article 10 of this Agreement, 

    

    (A) JACKSON
      shall transfer or cause to be transferred to the JVC the non-exclusive rights
      to
      sell certain of the JACKSON Products identified on Exhibit “A” and the rights to
      sell to the Undeveloped Products and the Concept Products, pursuant to terms
      and
      price to be determined, as JACKSON contributions to the JVC in exchange for
      its
“Membership Interest” (referred as the “JACKSON
      Membership Interest”)
      therein; and 

    

    (B) JACKSON
      shall manufacture the JACKSON Products for the JVC and sell such to the JVC
      at
      the price stated for each of the respective JACKSON Products set forth on or
      attached to Exhibit “A”; and to the extent required, will manufacture the
      Undeveloped Products and the Concept Products, if any, and sell the same to
      the
      JVC at the price to be determined for each of the respective products, if any,
      that may be produced and developed by JACKSON.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (C) EAU
      shall
      do the following for its “Membership Interest” (the “EAU
      Membership Interest”);

    

    
      	·  	
              Deliver
                to JACKSON, a consulting agreement (the “JACKSON
                Consulting Agreement”),
                whereby EAU shall pay to JACKSON the sum of Ten Thousand Dollars
                ($10,000)
                per month for JACKSON’s consulting services and for further development,
                improvement or application use of the JACKSON Products, set forth
                on
                Exhibit “A”, and for management services as described in Article
                3;

            

    

    
      	·  	
              Commit
                to specific funding and other resources in order to develop marketing
                for
                the Undeveloped Products and the Concept Products, if any, for the
                JVC;

            

    

    
      	·  	
              Provide
                capital for JACKSON’s basic infrastructure, according to a budget (the
                “Budget”)
                that the Parties shall agree upon that will include the monies paid
                pursuant to the Consulting Agreement or other specified
                agreements;

            

    

    
      	·  	
              Deliver
                to JACKSON One Hundred Thousand (100,000) shares of Electric Aquagenics
                Unlimited, Inc., a Delaware corporation, restricted common
                stock;

            

    

    
      	·  	
              Provide
                resources necessary to develop marketing and sale of the Undeveloped
                Products and the Concept Products, if any that may be produced and
                developed by JACKSON. All of the above EAU expenditures are referred
                to
                herein collectively as the “EAU
                Capital Contributions”).

            

    

    

    2.3 JVC
      Exclusive Joint Ventures. The
      Parties shall initially designate certain proposed Exclusive Joint Venture
      projects as set forth on Exhibit “B”, which from time to time may be amended or
      enhanced upon mutual written agreement signed by the Parties.

    

    ARTICLE
      3

    MANAGEMENT

    

    3.1 Manager.
      Subject
      to the provisions of the Articles and the Operating Agreement as to any actions
      required to be authorized or approved by the JVC’s members, the business and
      affairs of the JVC shall be managed and all its powers shall be exercised
      jointly by JACKSON and EAU. 

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    3.2 Officers.
      Subject
      to the provisions of the Articles and the Operating Agreement, the officers
      of
      the JVC shall be a president, a secretary, and a treasurer, who shall also
      be
      the chief financial officer of the JVC. 

    

    3.3 Personnel.
      The
      Parties agree that the policy of the JVC is that it will pay no salary or fees,
      other than the JACKSON Consulting Agreement, to anyone employed by JACKSON
      or
      EAU unless such person is engaged full-time in the operation of the JVC and
      such
      salary or fee shall be commensurate with amounts generally paid for such
      services in Nevada.

    

    ARTICLE
      4

    FINANCIAL
      AND ACCOUNTING PRINCIPLES OF THE JOINT VENTURE COMPANY

    

    4.1 Books
      and Records.
      Throughout the term of this Agreement, the Parties shall ensure that the JVC
      maintains full and accurate accounting records in accordance with generally
      accepted accounting principles consistently applied, and shall prepare quarterly
      financial and operating reports. Such reports shall be in such form as JACKSON
      and EAU may from time to time agree.

    

    4.2 Right
      of Inspection.
      At all
      times after the JVC’s formation and organization, each Party shall have the
      right by its duly authorized representative or accountant to inspect and have
      full access to all properties, books of account, records and the like of the
      JVC
      and the JVC shall furnish to the requesting Party all information concerning
      the
      same which the requesting Party may reasonably require in connection with a
      complete examination thereof, and the requesting Party shall have the right
      to
      inspect and make copies from the books and records of the JVC at all reasonable
      times.

    

    ARTICLE
      5

    DISTRIBUTION
      AND APPROPRIATION OF PROFITS

    

    5.1 Sources
      of JVC Profits.
      It is
      contemplated that the initial of revenue and profit for the JVC will be revenues
      and profits derived from the sale of JACKSON Products. 

     

    (A) The
      JACKSON Products.
      The
      sales of the JACKSON Products described herein shall exclude revenues generated
      to the JACKSON Sales Agents. JACKSON shall deliver the JACKSON Products to
      the
      JVC at the price stated for each JACKSON Products on or attached to Exhibit
“A”.

    

    (B) The
      Undeveloped Products and Concept Products.
      With
      respect to the Jackson Products, the Undeveloped Products and Concept Products
      (if any), the Parties shall divide the net profits from the sale of the JACKSON
      Products, the Undeveloped Products and the Concept Products (if any), fifty
      percent (50%) to EAU and fifty percent (50%) to JACKSON, provided that JACKSON
      sells the Undeveloped Products and Concept Products (if any), to the JVC for
      the
      amount determined to be the manufacturing cost price.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    5.2 Profits
      from Other Sources.
      Any
      profits derived by the JVC from revenue sources other than those described
      in
      Sections 5.1 of this Agreement, shall be distributed as described in Section
      5.1.

    

    5.3 Accumulated
      JVC Assets. In
      the
      event that JVC accumulates assets or income, if any, which has not been subject
      of appropriation and distribution, pursuant to Sections 5.1 and 5.2 of this
      Agreement, then the Parties shall receive fifty percent (50%) appropriation
      and
      distribution of the same, periodically, per the mutual agreement of the Parties,
      otherwise, upon termination of the JVC.

    

    ARTICLE
      6

    REPRESENTATIONS
      AND WARRANTIES

    

    6.1 Representations
      and Warranties of JACKSON.
      JACKSON
      represents and warrants to EAU that:

    

    (A) Organization
      and Existence.
      JACKSON
      is an individual has full corporate power and authority to own and lease the
      properties and assets it now owns and leases and to carry on its business as
      and
      where such properties and assets are now owned or leased and such business
      is
      now conducted. JACKSON owns the formulas of the JACKSON Products and any and
      all
      rights attached to or arising from the Undeveloped Products and Concept Products
      and does not require the approval, consent or agreement from any other third
      party entity and/ or individual to enter into this Agreement and deal with
      the
      JACKSON Products and the Undeveloped Products and Concept Products.

    

    (B) Authority
      and Approval.
      JACKSON
      has the corporate power and authority to enter into this Agreement and to
      perform its obligations hereunder. This Agreement is a valid and binding
      obligation of JACKSON, enforceable against JACKSON in accordance with its terms.
      When executed the Operating Agreement will be a valid and binding obligation
      of
      JACKSON enforceable against JACKSON in accordance with its terms. No other
      act,
      approval or proceedings on the part of JACKSON or any other person or entity
      is
      or will be required to authorize the execution and delivery of this Agreement
      and the Operating Agreement by JACKSON or the consummation of the transactions
      contemplated by each.

    

    (C) No
      Conflict.
      This
      Agreement and the Operating Agreement and the execution and delivery of each
      by
      JACKSON do not, and the fulfillment and compliance with the terms and conditions
      of each and the consummation of the transactions contemplated by each will
      not,
      (i) conflict with any of, or require the consent of any person or entity under,
      the terms, conditions or provisions of the articles of incorporation or bylaws
      of JACKSON, (ii) violate any provision of, or require any consent, authorization
      or approval under, any law or administrative regulation or any judicial,
      administrative or arbitration order, award, judgment, writ, injunction or decree
      applicable to JACKSON, (iii) conflict with, result in a breach of, constitute
      a
      default under (whether with or without notice or the lapse of time or both),
      or
      accelerate or permit the acceleration of the performance required by, or require
      any consent, authorization or approval under, any indenture, mortgage, lien,
      lease, agreement or instrument to which JACKSON is a party or by which it is
      bound or to which any of its assets or property is subject, or (iv) result
      in
      the creation of any lien, charge or encumbrance upon the assets or property
      of
      JACKSON under any such indenture, mortgage, lien, lease, agreement or
      instrument. JACKSON is not subject to any order, judgment, decree or award
      of
      any court or other judicial administrative or regulatory body or arbitrator
      having prospective effect.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (D) Compliance.
      To the
      best of its knowledge, JACKSON has complied in all material respects with all
      laws, regulations, orders, judgments or decrees of any federal, state or local
      court or governmental authority or agency applicable to JACKSON with respect
      to
      its activities relating to the offer and sale of JACKSON Products.

    

    (E) Disclosure.
      No
      representation or warranty by JACKSON contained in this Agreement, nor any
      statement contained in the Operating Agreement or in any Schedule, Exhibit,
      certificate, list or other instrument furnished or to be furnished by JACKSON
      to
      EAU pursuant to this Agreement or the Operating Agreement or in connection
      with
      the transactions contemplated by either, contains or will contain any untrue
      statement of a material fact or omits or will omit to state a material fact
      which is necessary in order to make the statements contained herein or therein
      not false or misleading. There is no fact known to JACKSON which materially
      adversely affects, or in the future may (as far as JACKSON can now reasonably
      foresee) materially adversely affect, the condition (financial or other),
      properties, assets, business, operations or prospects of JACKSON. All documents
      delivered or to be delivered by JACKSON to EAU pursuant to this Agreement are
      or
      will be true and complete copies of what they purport to be.

    

    6.2 Representations
      and Warranties of EAU.
      EAU
      represents and warrants to JACKSON that:

    

    (A) Organization
      and Existence.
      EAU
      is a
      corporation duly organized, validly existing and in good standing under the
      laws
      of the State of Delaware. EAU has full corporate power and authority to own
      and
      lease the properties and assets it now owns and leases and to carry on its
      business as and where such properties and assets are now owned or leased and
      such business is now conducted.

    

    (B) Authority
      and Approval.
      EAU has
      the corporate power and authority to enter into this Agreement and to perform
      its obligations hereunder. This Agreement is a valid and binding obligation
      of
      EAU, enforceable against EAU in accordance with its terms. When executed the
      Operating Agreement will be a valid and binding obligation of EAU enforceable
      against EAU in accordance with its terms. No other act, approval or proceedings
      on the part of EAU or any other person or entity is or will be required to
      authorize the execution and delivery of this Agreement and the Operating
      Agreement by EAU or the consummation of the transactions contemplated by
      each.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (C) No
      Conflict.
      This
      Agreement and the Operating Agreement and the execution and delivery of each
      by
      EAU do not, and the fulfillment and compliance with the terms and conditions
      of
      each and the consummation of the transactions contemplated by each will not,
      (i)
      conflict with any of, or require the consent of any person or entity under,
      the
      terms, conditions or provisions of the articles of incorporation or bylaws
      of
      EAU, (ii) violate any provision of, or require any consent, authorization or
      approval under, any law or administrative regulation or any judicial,
      administrative or arbitration order, award, judgment, writ, injunction or decree
      applicable to EAU, (iii) conflict with, result in a breach of, constitute a
      default under (whether with or without notice or the lapse of time or both),
      or
      accelerate or permit the acceleration of the performance required by, or require
      any consent, authorization or approval under, any indenture, mortgage, lien,
      lease, agreement or instrument to which EAU is a party or by which it is bound
      or to which any of its assets or property is subject, or (iv) result in the
      creation of any lien, charge or encumbrance upon the assets or property of
      EAU
      under any such indenture, mortgage, lien, lease, agreement or instrument. EAU
      is
      not subject to any order, judgment, decree or award of any court or other
      judicial administrative or regulatory body or arbitrator having prospective
      effect.

    

    (D) Compliance.
      To the
      best of its knowledge, EAU has complied in all material respects with all laws,
      regulations, orders, judgments or decrees of any federal, state or local court
      or governmental authority or agency applicable to EAU with respect to its
      business activities relating to the offer and sale of EO Products and Aquagen
      Products.

    

    (E) Disclosure.
      No
      representation or warranty by EAU contained in this Agreement, nor any statement
      contained in the Operating Agreement or in any Schedule, Exhibit, certificate,
      list or other instrument furnished or to be furnished by EAU to JACKSON pursuant
      to this Agreement or the Operating Agreement or in connection with the
      transactions contemplated by either, contains or will contain any untrue
      statement of a material fact or omits or will omit to state a material fact
      which is necessary in order to make the statements contained herein or therein
      not false or misleading. There is no fact known to EAU which materially
      adversely affects, or in the future may (as far as EAU can now reasonably
      foresee) materially adversely affect, the condition (financial or other),
      properties, assets, business, operations or prospects of EAU. All documents
      delivered or to be delivered by EAU to JACKSON pursuant to this Agreement are
      or
      will be true and complete copies of what they purport to be.

    

    ARTICLE
      7

    ADDITIONAL
      AGREEMENTS AND COVENANTS

    

    7.1 Conformity
      to Representations.
      From the
      date hereof to and including the Closing Date, neither JACKSON nor EAU will
      take
      any action that would cause any of the representations and warranties made,
      with
      respect to JACKSON or EAU, respectively, in this Agreement or with the Operating
      Agreement not to be true and correct in all material respects on and as of
      the
      Closing Date with the same force and effect as if such representations and
      warranties had been made on and as of the date of this Agreement. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    7.2 Survival.
      The
      provisions, covenants, rights, responsibilities, promises, pledges and titles
      accruing to and imposed upon JACKSON and EAU under this Agreement shall survive
      the reorganization, merger, acquisition, sale and/or change in management of
      either Party, so long as either Party is not in default under the terms and
      conditions of this Agreement at the time of such reorganization, merger,
      acquisition, sale and/or change in management.

    

    ARTICLE
      8

    TERMINATION

    

    8.1 Termination.
      This
      Agreement shall be terminated and the JVC dissolved accordingly upon the
      occurrence of any of the following events to the JVC:

     

    (A) liquidation,
      bankruptcy or insolvency;

    

    (B) termination
      of business by decision of the Members;

    

    (C) the
      appointment of any trustee, receiver or liquidator for substantially all of
      the
      assets of the JVC

    

    (D) the
      attachment, sequestration, execution or seizure of substantially all of the
      assets of the JVC, which attachment, sequestration, execution or seizure is
      not
      vacated within thirty (30) days from the institution thereof; or

    

    (E) judicial,
      governmental or any sale other than a voluntary sale of substantially all of
      the
      assets of the JVC by its Manager.

    

    8.2 Sale
      of Any Membership Interests by One of the Parties.
      This
      Agreement may be terminated by either JACKSON or EAU on not less than ten (10)
      days’ written notice to the other Party hereto, if either JACKSON or EAU shall
      cease to be the owner of all of the Membership Interests of the
      JVC.

    

    8.3 Termination
      for Cause.
      This
      Agreement may be terminated by either JACKSON or EAU, and the JVC dissolved
      accordingly, in the event that the other Party hereto shall default in the
      performance of any of its undertakings in this Agreement and such default shall
      not be remedied to the reasonable satisfaction of the non-defaulting Party
      within sixty (60) days next after written notice of such default shall have
      been
      given to the defaulting Party, in which case such termination shall take place
      on the sixtieth (60th)
      day.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    8.4 Insolvency
      or Merger.
      This
      Agreement may be terminated by either JACKSON or EAU, and the JVC dissolved
      accordingly, on not less than ten (10) days' written notice to the other Party
      hereto, effective upon the date stated in such notice, if the other Party shall
      file a petition in bankruptcy or for a receiver for all or any substantial
      portion of its property and assets, or if such petition shall be filed against
      the other Party and shall not be dismissed with thirty (30) days from its
      filing, or if the other Party shall file a petition for reorganization or to
      effect a composition with its creditors or such a petition shall be filed
      against the other Party and shall not be discharged within ninety (90) days
      after the date of its filing, or if the other Party shall make a general
      assignment for the benefit of creditors, and in the case of any such
      termination, all of the rights and obligations under and pursuant to this
      Agreement shall cease and terminate, except such as shall have accrued prior
      to
      termination, including but not limited to, any and all claims and demands for
      damages for any breach of any covenant contained in this Agreement, and except
      for the continuing obligations of JACKSON and EAU contained in this Agreement
      with respect to the confidential treatment of technical, economic and marketing
      information.

    

    8.5 Effectiveness
      of the Relative Agreements.
      The
      termination of this Agreement shall not affect the effectiveness of any
      agreement executed by the Parties hereto and/or the JVC pursuant to this
      Agreement and such relative agreements shall continue to be effective until
      such
      relative agreements will be terminated in accordance with the terms
      thereof.

    

    ARTICLE
      9

    NATURE
      AND SURVIVAL OF REPRESENTATIONS; INDEMNIFICATION

    

    9.1 Nature
      and Survival of Representations, Warranties and
      Covenants.
      All
      representations, warranties and covenants made by JACKSON or EAU in this
      Agreement and in any schedules, certificates or other documents delivered in
      connection with the transactions contemplated hereby shall survive the Closing
      and any investigation at any time made or any knowledge received by or on behalf
      of JACKSON or EAU; provided, however, that in the case of indemnification
      arising under Section 9.2(A) below, no Party shall have any liability unless
      it
      is given notice on or before the expiration of twelve (12) months after this
      Agreement’s execution Date asserting a claim with respect thereto and specifying
      the factual basis of such claim in reasonable detail to the extent
      known.

    

    9.2 Indemnification.
      The
      Parties shall indemnify and hold harmless each other and the JVC, against all
      damage, loss, liability, diminution of value, or expense, including without
      limitation reasonable attorneys’ fees and costs related thereto, suffered or
      incurred by the other Party or the JVC arising from or in connection
      with:

    

    (A) any
      misrepresentation or breach of representation or warranty by the indemnifying
      Party set forth in this Agreement or in any exhibit, schedule or certificate
      delivered pursuant hereto;

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (B) any
      breach or non-fulfillment by the indemnifying Party of any covenant, agreement
      or other obligation set forth in this Agreement or in any exhibit, schedule
      or
      certificate delivered pursuant hereto;

    

    (C) the
      failure of the indemnifying Party to pay, perform or discharge any obligation
      or
      liability which arises out of, or is attributable or relates to, the business
      conducted by the indemnifying Party on or prior to this Agreement’s execution
      and not expressly assumed by the JVC; or

    

    (D) any
      claim, lawsuit or proceeding which arises out of, or is attributable or relates
      to, the business conducted by the indemnifying Party on or prior to this
      Agreement’s execution.

    

    9.3 Indemnification
      Procedure.
      JACKSON
      or EAU, as the case may be, shall notify the Party against whom indemnification
      is sought promptly of any claim by any third party coming to its attention
      which
      may result in any liability hereunder on the other’s part. The indemnifying
      Party shall be entitled at its own expense to conduct the defense of any such
      third party claim with counsel of its own choosing, subject to approval by
      the
      party seeking indemnification (whose approval shall not be unreasonably
      withheld), but the Party seeking indemnification shall be entitled to
      participate in such defense with counsel of its own choosing and at its own
      expense, provided that control of the defense will remain with counsel for
      the
      indemnifying Party if the indemnifying Party has acknowledged unequivocally
      in
      writing its obligation to indemnify the other in regard to the claims to be
      defended against. Failure to give notice as provided herein shall not relieve
      the indemnifying Party of its obligations hereunder, except to the extent that
      the defense of any claim is prejudiced by such failure to give notice. The
      indemnifying Party shall have the right to compromise or settle for money
      damages only any claim giving rise to an obligation for indemnification
      hereunder; any claim compromised or settled by the indemnified Party shall
      not
      be subject to indemnification hereunder.

    

    ARTICLE
      10

    CONFIDENTIALITY

    

    10.1 Confidential
      Obligations.
      JACKSON
      and EAU each covenants and agrees, during the term of this Agreement and for
      a
      period of five (5) years thereafter, on behalf of its directors, officers,
      employees and agents to maintain in strict confidence and not to make any
      unauthorized use of any confidential information (the “Confidential
      Information”)
      received from the other Party and the JVC, as the case may be, pursuant to
      this
      Agreement. The Confidential Information shall be (A) disclosed in writing or
      in
      other tangible form and clearly marked as confidential at the time of
      disclosure, or (B) disclosed orally or in other intangible form and clearly
      indicated as confidential at the time of disclosure and, within thirty (30)
      days
      after such disclosure, followed up with a written notice stating the content
      and
      nature of such Confidential Information. 

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    10.2 Exceptions.
      The
      obligations in this Section 10 will not apply to any information which (A)
      is or
      becomes available to the public other than by breach of this Agreement by the
      receiving Party, or (B) is or has been rightfully received by the receiving
      party from a third party, or disclosed by the disclosing Party to a third party,
      without any restrictions as to its use or disclosure, or (C) is or has been
      independently developed by the receiving Party.

    

    ARTICLE
      11

    GENERAL
      PROVISIONS

    

    11.1 Entire
      Agreement.
      This
      Agreement and related agreements executed concurrently herewith supersede all
      negotiations, commitments and writings prior to the date hereof pertaining
      to
      the subject matter of this Agreement and such related agreements. This Agreement
      shall not be changed or modified in any manner, except by mutual consent in
      writing of subsequent date signed by duly authorized representatives of both
      Parties hereto.

    

    11.2 Binding
      Effect.
      This
      Agreement shall be binding upon and inure to the benefit of the Parties hereto
      and their respective successors and assignees.

    

    11.3 Notices.
      All
      notices and other communications hereunder shall be in writing and shall be
      deemed duly given and delivered if delivered by messenger, or mailed by
      registered mail postage prepaid, return receipt requested, to the Parties at
      the
      lat known address of each Party (or at such other address for a Party as such
      Party shall from time to time specify by like notice). Such notice shall be
      deemed given on the date on which so delivered by messenger or on the third
      business day following the date on which so mailed. 

    

    11.4 Interpretation
      and Governing Law.
      This
      Agreement shall be interpreted in accordance with the plain English meaning
      of
      its terms and the construction thereof shall be governed by the laws of the
      State of Delaware. 

    

    11.5 Arbitration
      of Any Dispute.
      Except
      as expressly otherwise provided in this Agreement, any dispute arising out
      of or
      relating to the interpretation of any provisions of this Agreement or the
      failure of any Party to perform or comply with any obligations or conditions
      applicable to such Party pursuant to this Agreement (“Arbitral Claim”) shall be
      settled by binding arbitration, according to the Federal Arbitration Act, 9
      U.S.C., Section 1 et
      seq,
      and the
      related Federal case law, inasmuch as this Agreement concerns transactions
      involving interstate commerce. Arbitral Claims shall include, but are not
      limited to, contract (express or implied) and tort claims of all kinds, as
      well
      as all claims based on any federal, state, or local law, statute, or regulation.
      The Parties hereby waive any rights they may have to trial by jury in regard
      to
      arbitral claims. All arbitration matters shall be held and decided in accordance
      with the
      Commercial Arbitration Rules of the American Arbitration Association
      (“AAA”),
      but
      without the administration, cost or supervision of AAA. In any arbitration,
      the
      burden of proof shall be allocated as provided in applicable law, and the
      arbitrator(s) shall have the authority to award or grant legal, equitable and
      declaratory relief to the same extent as if the case were brought in a civil
      court.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (A) The
      place
      of arbitration of any dispute shall be Salt Lake City, Utah. The arbitrator(s)
      shall be selected as follows: The Parties shall jointly select one impartial
      arbitrator in the event the dispute is less than $50,000.
      In the event the Parties cannot agree on one arbitrator within ten (10) days,
      or
      the dispute is $50,000
      or
      greater, then each Party shall select an impartial arbitrator within the
      following fourteen (14) days, and those two selected arbitrators shall select
      the third arbitrator who will comprise a three-person panel for arbitration.
      EAU
      and JACKSON shall instruct such arbitrator(s) to render a determination of
      any
      such dispute within four (4) months (earlier, if possible) after the appointment
      of the third arbitrator.

    

    (B)Any
      Award
      rendered by the arbitrators shall be final and binding upon the Parties.
      Confirmation and enforcement of the decision and award rendered by the
      arbitrator or panel of arbitrators shall be binding and may be entered in any
      court having jurisdiction thereof for confirmation and enforcement. Each Party
      shall pay its own expenses of arbitration, and the expenses of the arbitrators
      shall be equally shared between EAU and JACKSON, save and except, the
      arbitrator(s), in addition to declaratory relief, preliminary and permanent
      injunctive relief and compensatory damages, may award to the prevailing Party
      reasonable, expenses, fees and costs of attorneys.

     

    (C)This
      Section 11.5 shall not prohibit a Party that may desire to seek and obtain
      such
      injunctive or other provisional remedies to prevent an anticipatory, threatened
      or continued breach of this Agreement, through the arbitration procedure stated
      herein or from seeking such injunctive relief from a court of competent
      jurisdiction in the event such breach would cause irreparable harm to that
      Party.

     

    

      11.6 Severability.
      In case
      any one or more of the provisions or portions of provisions, of this Agreement
      shall be deemed by any governmental authority or by the selected arbitrator(s)
      to be invalid, illegal or unenforceable in any respect, the validity, legality
      and enforceability of the remaining provisions, or portions of provisions
      contained herein shall not be in any way affected or impaired
      thereby.

    

    11.7 Force
      Majeure.
      If the
      performance of this Agreement or any obligation hereunder is prevented,
      restricted or interfered with by reason of force majeure, the Party so affected,
      upon giving prompt notice to the other Party, shall be excused from such
      performance to the extent of such prevention, restriction or interference;
      provided, that the Party so affected shall use its best efforts to avoid or
      remove such causes of non-performance and shall continue performance hereunder
      with the utmost dispatch whenever such causes are removed; and provided,
      further, that whenever it appears advisable to a Party hereto to consent or
      stipulate to the entry of an arbitration Award or a judgment against it by
      a
      court of competent jurisdiction rather that incur substantial expense or great
      inconvenience, the entry of such arbitration Award or judgment shall excuse
      such
      Party from performance hereunder to the extent that such arbitration Award
      or
      judgment forbids or restrains such performance.

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    11.8 Assignment
      and Succession.
      This
      Agreement shall inure to the benefit of and be binding upon the Parties hereto
      and their respective successors and assigns, but shall not be assignable by
      any
      Party other than a Person acquiring substantially all of its business and
      assuming all of its obligation and liabilities, except with the written consent
      of the other Party. In the event of any such assignment the transferor or
      assignor shall remain obligated to perform its own obligations and in addition
      shall be jointly and severally liable for the proper performance of the
      obligations of the transferee or assignee pursuant to this
      Agreement.

    

    11.9 Section
      Headings.
      The
      section headings contained in this Agreement are for reference purposes only
      and
      shall not affect in any way the meaning or interpretation of this
      Agreement.

    

    IN
      WITNESS WHEREOF,
      the
      Parties hereto, intending legally to be bound have caused this Agreement to
      be
      duly executed as of the day and year first hereinabove written.

    

    

    WILLIAM
      R. JACKSON, PhD

    

    By: /s/
      William
      R. Jackson, PhD       

    William
      R. Jackson, PhD

    Title: President

     

    

    ELECTRIC
      AQUAGENICS UNLIMITED, INC.

    

    

    By:
      /s/ John
      Hopkins

    John
      Hopkins

    Title:
       President

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    EXHIBIT
      “A”

    The
      JACKSON Products

    

    The
      Marketed Products.
      The
      Marketed Products are described by name as follows:

    

    The
      Bio-N-Liven Answer®

    The
      Carbon Answer®

    The
      Cleaner Answer®

    The
      Disinfectant Answer®

    The
      Livestock Answer®

    Mineral
      Electrolyte Answer®

    

    The
      six
      (6) above-listed Products are valued and priced at a minimum of Twenty-Four
      Dollars ($24) per gallon and JVC shall not sell said Products for less than
      Forty-Eight Dollars ($48) per gallon, wholesale.

    

    The
      Undeveloped Products.
      The
      Undeveloped Products are described as follows:

    

    Remediation
      Products

    Cleaning
      (household) Products

    Small
      Animal or Pet Products

    

    The
      Concept Products.
      The
      Concept Products are described as follows:

    

    Human
      Cleaning Products

    Human
      Health Products

    

    IN
      WITNESS WHEREOF,
      the
      Parties hereto, intending legally to be bound have caused this Agreement to
      be
      duly executed as of the day and year first hereinabove written.

    

    WILLIAM
      R. JACKSON, PhD

    

    By:
      /s/ William
      R. Jackson, PhD

    William
      R. Jackson, PhD

    Title: President

     

    

    ELECTRIC
      AQUAGENICS UNLIMITED, INC.

    

    By: 
      /s/ John
      Hopkins

    John
      Hopkins

    Title:
       President

    
      
        1

        

        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      “B”

    

    EXCLUSIVE
      JVC Joint Venture Projects

    

    

    

    
      	1.  	
              Silver
                application to EO and Aquagen
                equipment

            

    

     

    
      	2.  	
              Blood
                Dialysis machines (Dr Stafford - Hospital Rena Group, US &
                Europe

            

    

     

    
      	3.  	
              Poultry,
                Beef, Dairy and Pork facilities (excluding processing
                plants)

            

    

     

    
      	4.  	
              Remediation
                (products only)

            

    

     

    
      	5.  	
              Agriculture
                - all field treatment such as filed fungal treatment and
                control

            

    

     

    
      	6.  	
              Jackson
                - Human products including use for Buildings, Cleaning &
                Sanitation

            

    

     

    
      	7.  	
              Wal-Mart
                & Sam’s Club -- Buildings, Cleaning &
                Sanitation

            

    

     

    
      	8.  	
              Proton
                - family-size EO Water Equipment

            

    

     

    
      	9.  	
              Additional
                subjects to be considered

            

    

    
 

    IN
      WITNESS WHEREOF,
      the
      Parties hereto, intending legally to be bound have caused this Agreement to
      be
      duly executed as of the day and year first hereinabove written.

    

    

    WILLIAM
      R. JACKSON, PhD

    

    By:
      /s/    William R. Jackson,
      PhD              

    William
      R. Jackson, PhD

    Title: President

     

    

    ELECTRIC
      AQUAGENICS UNLIMITED, INC.

    

    

    By: /s/    John
      Hopkins                                     

    John
      Hopkins

    Title:
       President

     

     

    
      
        
        

      

      
        15Exhibit
      10.3

    

    Stock
      Transaction Agreement

    

    This
      agreement is signed at March 5,2005 in Harbin, People’s Republic of China
      (“PRC”)

    

    The
      seller: Xiqun Yu ( Party A)

    Nationality:
      PRC

    Legal
      Address: No.42, Jiankang Road, Dongli Distric, Harbin City, People’s Republic of
      China

    IC
      No.:23010719670523123x

    

    The
      seller:Yuzhong Wu (Party B)

    Nationality:
      PRC

    Legal
      Address:No.37, Shengping Street, Daowai District, Harbin City, People’s Republic
      of China

    IC
      No.:
      230104650317331

    

    The
      Seller: Yanzhi Liu (Party C)

    Nationality:
      PRC

    Legal
      Address:No.91,Jiankang Road, Dongli District, Harbin City, People’s Republic of
      China

    IC
      No.:230107670602101

    

    The
      Buyer: China Education Alliance, Inc. (Party D)

    Legal
      Address: 21311 W. Catawba Avenue Cornelius, NC28021

    Legal
      representative: Xiqun Yu

    

    	1.  	
            Party
              A, Party B, Party C, they hold 100% shares of Harbin Zhonghelida
              Educational Teconology Co.,Ltd and they have civil right capability
              of
              PRC.

          

    	2.  	
            Party
              D is a company registered in North Carolina of USA and continues in
              effect.

          

    	3.  	
            Harbin
              Zhonghelida Educational Technology Co.,Ltd also continues in effect
              according to Chinese Law. Party A holds 70% shares of Harbin Zhonghelida
              Educational Techonology Co., Ltd, Party B holds 25% shares and Party
              C
              hold 5% shares.

          

    Party
      A,
      Party B, Party C and Party D reached to the agreements after friendly
      negotiation.

    

    Clause
      1:
      Definition

     

    The
      words
      and phases are defined in this agreement as following unless other stipulated
      in
      this agreement or regulations, documents, orders and notice having legal effect
      as well as the regulations not included in Chinese Law.

    

    
      	1.1	
              Stockholder
                right: Chinese Law endows the Sellers with the stockholder rights
                includes
                but not restricted to invest in the companyôenjoy benefits from assets,
                have the right to make important decision and choose decision
                makers.

            

    

    

    
      	1.2	
              The
                rights and interests, opinions and all rights under law related to
                stockholder rights: The sellers have any rights and interests besides
                the
                stockholder right according to law because of their stockholder
                qualification.

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Clause
      2:
      Transfer stockholder right

    

    
      	2.1	
              Party
                A , Party B and Party C agrees to transfer all the stockholder right
                and
                relative rights and responsibilities of Harbin Zhonghelida Educational
                Technology Co., Ltd to Party D according to this
                agreement

            

      	 	 

    

    
      	2.2	
              Party
                D is the legal stockholder of Harbin Zhonghelida Educational Technology
                Co., Ltd according to this agreement which takes effect from the
                date of
                regulated in the agreement. Party D has the stockholder right, the
                rights
                and interests, opinions, and all other rights under law related to
                stockholders. Party A, Party B and Party C will not have any rights
                related to stockholder right and also will not undertake any
                responsibilities for the transaction of the stockholder right of
                Harbin
                Zhonghelida Educational Technology Co., Ltd. Party A , Party B and
                Party C
                has the obligation to help Party D in the process of alteration
                registration and other necessary legal
                procedures.

            

    

    

    Clause
      3:
      Exchange rate and payment method in the transaction

    

    	3.1  	
            Party
              A transfers 70% ( RMB350,000.00 exchange to USD 42,300.00 at the exchange
              rate of 1:8.28 according to Heilongjiang Province 2005B13 audit report)
              registered capital of Harbin Zhonghelida Educational Technology Co.,
              Ltd
              to Party D; Party B transfers 25% ( RMB125,000.00 exchange to USD15,100.00
              at the exchange rate of 1:8.28 according to Heilongjiang Province 2005B13
              audit report) registered capital of Harin Zhonghelida Educational
              Technology Co., Ltd to Party D; Party C transfers 5% ( RMB25,000.00
              exchange to USD 3,000.00 at the exchange rate of 1:8.28 according to
              Heilongjiang Province 2005B13 audit report) registered capital of Harbin
              Zhonghelida Educational Technology Co., Ltd to Party
              D.

          

    

    
      	3.2	
              Party
                D should obtain the approval from relative government department
                for this
                transaction. Harbin Zhonghelida Educational Technology Co., Ltd will
                make
                payment to Party A, Party B and Party C within three months after
                the
                company received the foreign invested company license from Business
                Management Deparment.

            

    

    

    Clause
      4:
      Expenditure and taxation

    

    
      	4.1	
              Party
                A , Party B and Party C should fulfill all kinds of registration
                work for
                performing the this agreement and the expenditure occurred should
                be paid
                by Party A , Party B and Party C.

            

      	 	 

    

    
      	4.2	
              The
                taxation to perform this agreement will be undertaken by each party
                according to the current taxation regulation. As to the taxation
                not
                stipulated by the current taxation regulation will be undertaken
                by
                sellers and buyer evenly.

            

    

    

    Clause
      5:
      Agreement become effective

     

    This
      agreement signed and chopped by each party which goes into effect at the date
      after the approval from authority department.

    

    Clause
      6:
      Termination condition

     

    
      	6.1	
              Party
                A , Party BôParty C and Party D has the right to terminate this agreement
                unilaterally if any thing happened under the
                following:

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
            	A.	
              Chinese
                government does not approve Party D to purchase the stockholder right
                of
                Harbin Zhonghelida Educational Technology Co., Ltd held by Party
                A , Party
                B and Party C.

            

    

    
      	
            	B.	
              Chinese
                government does not approve Harbin Zhonghelida Educational Technology
                Co.,
                Ltd to convert to foreign solely invested
                company.

            

    

    

    
      	6.2	
              If
                the situations happened on the above 6.1, Party A , Party B and Party
                C
                has the right to terminate this agreement and no need to compensate
                Party
                D unless Party D made extra expenditure according to the unreasonable
                instruction from Party A , Party B and Party C. If Party D asks for
                the
                compensation from Party A , Party B and Party C he should provides
                the
                prove for those expenditure and the compensation is within this amount
                only.

            

    

    

    
      	6.3	
              Party
                A , Party B and Party C decide to terminate the agreement under the
                condition of 6.1 should issue an written notice to Party
                D.

            

    

    

    Clause
      7:
      Assertion, Assurance and Undertakings

    

    
      	7.1	
              Party
                A , Party B and Party C makes the assertion and assurance to Party
                D.

            

    

     

    
      	
            	A.	
              Have
                the right to sign and perform this
                agreement;

            

    

    
      	
            	B.	
              Have
                the right to transfer Harbin Zhonghelida Educational Technology Co.,
                Ltd
                which will not violate Chinese Law.

            

      	 	 	 

    

    
      	7.2	
              Party
                C makes the assertion and undertakings to Party A , Party B and Party
                C.

            

    

     

    
      	
            	A.	
              Incorporated
                according to North Carolina of USA and continues in
                effect;

            

    

    
      	
            	B.	
              Have
                the right and capability to make and perform the responsibilities
                belongs
                to Party D under this agreement. Party D will perform his obligations
                under this agreement when the agreement goes into
                effect.

            

    

    
      	
            	C.	
              Have
                the right and authority to sign and perform the obligations under
                this
                agreement.

            

    

    
      	
            	D.	
              The
                representative is to sign on this agreement being authorized according
                to
                effective authorization letter and decision made by Board of
                Director.

            

    

    

    Clause
      8:
      Breach Liability

     

    Both
      party should obey their assertion, assurance and undertakings under this
      agreement and assures one party will not make a loss because of other party
      violate this agreement. If one party makes a loss (financial loss and
      expenditure) because of other party’s conduct, the other party should take the
      responsibility and compensate in full amount.

    

    Clause
      9:
      Dispute settlement

     

    Dispute
      occurred because of performing this agreement or related to this agreement,
      two
      parties should solve the dispute through friendly negotiation. If they can
      not
      solve it through negotiation, any party has the right to submit the dispute
      to
      court with jurisdiction.

    

    Clause
      10: Apply law

     

    This
      agreement and its explanation applies PRC Law.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Clause
      11: Others

     

    
      	11.1	
              All
                the notices or communication under this agreement must be in the
                form of
                written format and (a) to submit by using person specially assigned
                for
                this task, or (b) to transmit in the form of fax, telegraph or telex,
                or
                (c) to mail through post office or express (postage in advance) to
                the
                legal address of other party deemed as effective
                notice.

            

    

     

    Any
      party
      has right to change the mailing address and must notify the other party in
      written format.

    

    
      	11.2	
              One
                party does not have the right to transfer the rights and obligations
                under
                this agreement to third party without the other party’s written
                permission.

            

    

     

    
      	11.3	
              Any
                amendment to this agreement needs the agreement of both party and
                goes
                into effect after signed written
                paper.

            

    

     

    
      	11.4	
              Other
                matters concerned should sign supplement agreement by two parties
                after
                negotiation. This supplement has the same legal effect with this
                agreement
                and goes into effect at the date of approved by the
                authority.

            

    

     

    
      	11.5	
              This
                agreement is written in Chinese, six copy in uniformity, every party
                holds
                one copy and the others submit to the authority department which
                has the
                same legal effect.

            

    

    

    Party
      A:
      Xiqun Yu

    Signature:

    

    Party
      B:
      Yuzhong Wu

    Signature:

    

    Party
      C:
      Yanzhi Liu

    Signature:

    

    Party
      D:
      China Education Alliance, Inc.

    Singature:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]