Document:

Exhibit 10.2

                            MEMORANDUM OF AGREEMENT
                            -----------------------

KNOW ALL MEN BY THESE PRESENTS:

     This MEMORANDUM OF AGREEMENT, mad and entered into by and between:

     The CITY GOVERNMENT OF PUERTO PRINCESA, a political subdivision existing
under the laws of the Republic of the Philippines, herein referred to as the
FIRST PARTY, and represented by its City Mayor, Hon. Edward S. Hagedorn,

                                    - and -

     LEO MOTORS, INC., with office address at (153-829)1004-12 Doksan-dong,
Geumcheon-Gu, Seoul, Korea, represented by Jung Yong'Lee and SEA MOTORS, INC.,
with office address at A 1126 Galleria Palace, Jamsil Dong, Songpa Gu, Seoul,
Korea, represented by William Wyland and Shi Chul (Robert) Kang, are herein
called as SECOND PARTY.

                              WITNESSETH:  THAT -
                              -------------------

     WHEREAS, the FIRST PARTY as a local government unit is totally committed to
the preservation of its environment and the protection of its existing ecology
as part of its primordial duty.  As such, its guiding principle in governance
and in promoting the general welfare of its people is the sustainable
development of its environment and natural resources, including the protection
of its air and water resources;

     WHEREAS, in line with the said guiding principles, and as a vital component
of its implementation of the Clean Air Act, the FIRST PARTY is intent on
replacing the existing local mode of transportation, more specifically the
motorcycles/tricycles, with environmentally friendly vehicles;

     WHEREAS, such a move if likewise proven economically feasible will as
uplift the economic life of tricycle drivers and operators in the City;

     WHEREAS, in pursuit of this goal, the Hon. Edward S. Hagedorn visited the
offices and workshops of the SECOND PARTY, and found the latter to be a leader
in the development of electric driven vehicles (EV) as well as
environment-friendly vehicle batteries;

     WHEREAS, the FIRST PARTY has requested the SECOND PARTY to develop and
Electric Vehicle ideally feasible for use in Puerto Princesa City, and in
response thereto, the SECOND PARTY has donated to the FIRST PARTY an electric
scooter prototype;

<PAGE>
     WHEREAS, the SECOND PARTY has also submitted to the FIRST PARTY its
proposal including socio-economic assessment, environmental impact study, EV
market and technology background, EV(EP) development plan, engineering design,
detailed schedule, pricing, financial plan for end-users, and battery swap
centers;

     WHEREAS, on 15 September 2008, the above-mentioned proposal was presented
to the Hon. Edward S. Hagedorn and the Sangguniang Panlungsod, which
conditionally accepted the same subject to the execution of Joint Venture
Agreement;

     WHEREAS, there is an urgent need in the meantime to execute a Memorandum of
Agreement containing the general agreements of the parties, subject to the
execution at a late date of the Joint Venture Agreement, to enable the SECOND
PARTY to immediately start development of the prototypes;

     NOW, THEREFORE, for and in consideration of the foregoing premises, the
parties hereto herby agree to the following:

                                       I
                               GENERAL PROVISIONS

     1.     The parties hereto hereby agree to execute a Joint Venture Agreement
(JVA) creating a Joint Venture Company (JVC) and embodying their commitments and
obligations relative to their agreed co-production of the EV, herein
redenominated as the EP, or Electric Princesa.

     2.     The FIRST PARTY agrees to allow the SECOND PARTY to manage the Joint
Venture Company as far as the technical aspects of the production is concerned;

     3.     The SECOND PARTY agrees to allow the FIRST PARTY to handle the
financial aspects of the Joint Venture Company;

     4.     A governing board shall be created to handle the policy directions
of the Joint Venture Company;

     5.     The parties hereto further agree to look into the possibility of
selling the EP outside the territorial jurisdiction of the FIRST PARTY, with the
latter granted exclusive selling right;

     6.     All rights and interests of the SECOND PARTY under the MOA may not
be assigned to any other entity.  It is hereby agreed that the rights granted
under this MOA are exclusive and personal to the parties;

     7.     The Joint Venture Company shall initially produce at least 2,500
EVs;

<PAGE>

                                       II
                        UNDERTAKINGS OF THE FIRST PARTY

     The FIRST PARTY shall:

8.     Undertake to allow the SECOND PARTY access to available technical and
other information required for the completion of the prototype and assembly
plant;

9.     Assist the SECOND PARTY in organizing and recruiting the needed labor
pool for the venture;

10.     Assume responsibility for all taxes of whatever kind and nature
including but not limited to real property taxes, pursuant to City Ordinance No.
331, otherwise known as the Investment Incentives Ordinance of  2007, and its
implementing rules and regulations, arising from or in connection with the
proposed Joint Venture Agreement;

11.     Provide the SECOND PARTY a suitable site for the establishment of the
assembly plant;

12.     Agree to contribute a total capital investment of Php200,000,000.00 to
the Joint Venture Company to be remitted in four (4) tranches of
Php14,000,000.00; Php75,000,000.00 and Php36,000,000.00

     These capital investments shall cover co-production expense as well as
subsidy in favor of beneficiaries who may avail of the conversion to EP on a per
unit basis;

     The first tranche shall be remitted upon receipt of the funds available for
the purpose from the Malampaya Share of the FIRST PARTY to help cover initial
production cost of the three (3) EP prototypes.

13.      Approve and audit transactions

14.     Identify battery swap centers;

                                      III
                        UNDERTAKINGS OF THE SECOND PARTY

The SECOND PARTY SHALL:

15.     Develop the project prototype EP;

16.     Supply semi-complete knockdown or disassembled parts;

<PAGE>
17.     Conduct trainings for qualified residents of Puerto Princesa City to
ensure proper technological transfer in assembling the EP;

18.     Remit the amount of US$300,000.00 as equity capital to the proposed
Joint Venture Company, the same to be utilized in the same manner as that of the
FIRST PARTY;

19.     Operate and produce/make available the batteries for the batter swap
centers;

20.     Set up and operate the assembly plant.

                                       IV
                            MISCELLANEOUS PROVISIONS

21.     The SECOND PARTY hereby undertakes that all necessary approval and
permits from the appropriate agencies of the Government of the Republic of the
Philippines shall be secured by them including, but not limited to authority to
do business in the Philippines and all environmental requirements;

22.     The failure of the FIRST PARTY to insist upon a strict performance of
any of the terms, conditions and covenants hereof shall be not deemed a
relinquishment or waiver of any right or remedy that FIRST PARTY may have, nor
shall it me construed as waiver of any subsequent breach or default of the
terms, conditions and covenants herein contained, which shall be deemed in full
force and effect.  No waiver by FIRST PARTY shall be deemed to have been made
unless expressed in writing and signed by FIRST PARTY;

23.     This agreement, except for the actual Joint Venture Agreement, contains
the entire understanding and agreement between the parties, and all prior
written or oral understanding or arrangements are merged herein. No amendment or
modification hereof shall be binding upon either party unless in writing and
signed by the party to be charged therewith;

24.     The parties agree to revise or amend the pertinent portions of this
Agreement whenever necessary in the interest of public service;

25.     The interpretation, validity and performance of this Agreement shall be
governed in all respects by the laws of the Philippines;

26.     Any dispute between the parties whether resulting from claim in
contract, tort otherwise, or any claim or controversy which may arise out or in
connection with this Agreement or the application, implementation, validity,
breach or termination of this Agreement, any provision thereof or any agreement
shall be solely and exclusively filed with the proper courts or tribunals of
Puerto Princesa City.

<PAGE>
     IN WITNESS WHEREOF, the parties have hereunto set their hands this ____day
of ____ 2008, at Puerto Princesa City, Philippines.

                   FOR THE CITY GOVERNMENT OF PUERTO PRINCESA
                          FIRST PARTY REPRESENTED BY:

                               EDWARD S. HAGEDORN
                                   City Mayor

                 FOR THE LEO MOTORS, INC. AND SEA MOROTS, INC.
                          SECOND PARTY REPRESENTED BY:

JUNG YONG LEE          WILLIAM WYLAND     SHI CHUL KANG
-------------          --------------------------------
LEO MOTORS, INC               SEA MOTORS, INC

                                   WITNESSES:

___________________                    _________________

                                ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)
CITY OF PUERTO PRINCESA        )S.S

     BEFORE ME, A Notary Public for and in the City of Puerto Princesa,
personally appeared:

      CTC NUMBER/
NAME  PASSPORT NO.  ISSUED ON  ISSUED AT
----  ------------  ---------  ---------
----  ------------  ---------  ---------
----  ------------  ---------  ---------
----  ------------  ---------  ---------

     All are known to me and known to be the same persons who executed the
foregoing Memorandum of Agreement and they acknowledged to me that the same is
their free and voluntary act and deed.Filed by Bowne Pure Compliance

Exhibit 10.72

QAD INC.

100 Innovation Place

Santa Barbara, CA 93108

USA

Tel: +1.805.566.6000

Fax: +1 805.566.4202

http://www.qad.com

Human Resources

CA Fax + 805 566 6091

October 10, 2008

Daniel Lender

40 Alston Place

Santa Barbara, CA 93108

Dear Daniel:

We are pleased to offer you the position of Chief Financial Officer (CFO) for QAD. This full time
exempt position will report to Karl Lopker, Chief Executive Officer (CEO). You will be working out
of our corporate QAD office located in Santa Barbara, CA. Your primary job responsibilities will
be discussed with you in more detail after you have commenced employment. We anticipate your date
of hire to be on or before November 15, 2008.

Compensation:

Your gross base salary per pay period (24 periods per year) will be $14,583.33 (equates to $350,000
annually). You will also be eligible to participate in the QAD Bonus Plan at $200,000 potential
which is based on achievement of specific objectives. Complete details of the plan will be
discussed and provided to you following your hire. Your on-target earning goal, base plus bonus,
will be $550,000.00 per annum.

Sign-on Bonus: 

You will also receive a $50,000 sign-on bonus contingent on your being able to commence employment
on or before November 15, 2008. The bonus will be paid out on the first paycheck following your
hire date (or within 30 days of your hire date) and will be subject to all laws of taxation and
income reporting. You agree to repay this amount in full, in the event you resign from QAD during
the first 12 months of employment.

Stock-settled stock appreciation rights (“SARs”) and Restricted Stock Units (RSUs):

A 100,000-share initial-hire grant of stock-settled stock appreciation rights (“SARs”) has been
submitted for approval to the Board of Directors. The share price for the SARs will be based on
the fair market value of QAD stock on the later of your start date or the date of approval by the
Board of Directors. Your SARs will vest over a four-year period, one-fourth of the grant (25%) on
each of the first four anniversaries of the grant date.

Also, a 210,000-share initial-hire grant of restricted stock units (RSUs) has been submitted for
approval to the Board of Directors. Your RSUs will vest over a four-year period, one-fourth of the
grant (25%) on each of the first four anniversaries of the grant date.

 

 

 

Daniel Lender

October 10, 2008

Page 2 of 3

In addition, at the next annual grant period, 40,000-share grant of restricted stock units (RSUs)
will be submitted for approval to a representative of the Board of Directors.

Benefits:

As a full-time employee, you are eligible to participate in the following current benefits:
health, dental, life, short term and long term disability insurance, flexible spending accounts,
and a 401(K) plan. All insurance benefits and the flexible spending account eligibility begin on
your date of hire. Voluntary life insurance is available on the first day of the month following
your date of hire.

In addition to the benefits noted above, you will be eligible to participate in other company
benefits currently being offered. As a rehire, your PTO accrual rate will be reinstated at rate
consistent with no break in service. Your new-hire package will contain detailed information
pertaining to the benefits and programs listed above.

Termination:

Should you be terminate for reasons other than for cause, you will be offered a Separation and
Release of All Claims agreement with payment terms equal to 12 months base salary.

Change in Control:

QAD will offer you a Change in Control Agreement consistent with Board approval for the position of
CFO.

Other:

Pursuant to Federal law, you will need to provide evidence of your eligibility to work in the
United States within three days from your initial hire date. Examples of acceptable documentation
commonly used include a Passport or Driver’s License AND a Social Security card (see “List of
Acceptable Documents” attached to the I-9 document.) For Payroll purposes, we require a copy of
your social security card. If you do not have your social security card available, please provide
verification from your local Social Security office that a replacement card has been requested.
Please be prepared to provide this documentation at your new hire orientation.

Except as expressly noted in this letter, your employment with QAD will be subject to all of the
Company’s usual policies and practices. Consistent with these policies and practices, employment
with QAD, Inc. is ‘at-will’ and you or the Company may terminate employment at any time for any
reason.

You represent and warrant that you are free to accept this offer of employment and that you doing
so does not breach any contract or agreement which you have with any other entity and is not in
violation of any legal duty you have to any other entity.

Please sign this letter in the space provided as an indication of your acceptance of this offer and
return it to Murray Ray, 100 Innovation Place, Santa Barbara, CA 93108.

 

 

 

Daniel Lender

October 10, 2008

Page 3 of 3

Daniel, we look forward to your re-joining the QAD team. We believe you will enjoy the challenges
and opportunities that lie ahead in our dynamic business and that you have the skills and talent
necessary to be a strong contributor to our mutual growth.

Sincerely,

	 	 	 	 
	 	 	 
	/s/ Murray Ray	 	/s/ Karl Lopker	 
	Murray Ray
Chief People Officer
QAD Inc.	 	Karl Lopker
CEO
QAD Inc.	 
	 

	 	 	 	 	 	 
	I, 	/s/ Daniel Lender 	accept the position as offered above on: 	10 October, 2008. 	I will commence employment on: 	20 October, 2008. 
	 	Signature 	 	Acceptance Date 	 	Hire Date 

If you
accept this offer of employment, please let us know exactly how you want your name listed on
QAD internal phone and e-mail lists.
Please state one primary name and one last name.

	 	 
	DANIEL LENDER	 
	Please Print

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