Document:

exv10w28

 

Exhibit 10.28

CONSULTING AGREEMENT

     This Agreement (this “Agreement”), dated as of November 19, 2004, between Save the World Air,
Inc., a Nevada corporation (the “Company”), and London Aussie Marketing, Ltd. (the “Consultant”).

RECITALS

     WHEREAS, the Company is in the business, among other things, of supplying the goods described
on Exhibit A attached hereto (the “Goods”).

     WHEREAS, Consultant has provided services to the Company including the introduction of the
Company to a strategic partner (the “Strategic Partner”);

     WHEREAS, the Company and Consultant desire to enter into a relationship whereby Consultant
will provide services to the Company on the terms and conditions set forth herein.

AGREEMENT

     NOW THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

     1. Scope of Services to Be Provided. Consultant shall provide to the
Company, on an as needed basis, assistance, advice and support relating to the Company’s business,
as the Company may request from time to time. Without limiting the generality of the foregoing,
Consultant shall:

       (a) Shall undertake and perform the following tasks and such additional or other
responsibilities as may be reasonably assigned to Consultant from time to time by the Company’s
Chief Executive Officer, Chief Operating Officer, or Director of Research and Development:

          (i) Managing the Company’s relationship with the Strategic Partner, including
management services already provided by Consultant.

          (ii) Assisting the Strategic Partner in soliciting orders for, and generating
contracts with respect to, the Products, including assistance already provided by Consultant.

       (b) Assist in the preparation of regular monthly reports to the Company on the efforts
expended and undertaken on each project assigned to or undertaken by Consultant.

     2. Term.

       (a) This Agreement shall continue in full force for a period of  7, years unless
earlier terminated in accordance with this Section 2 or Section 6. The obligations of Consultant
upon the termination of this Agreement for any reason are described in Section 7.

       (b) This Agreement shall be automatically renewed for successive one-year

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terms unless either
party provides written notice of its election not to renew this Agreement at least 60 days prior to
the expiration of the then current term, in which case the Agreement shall terminate upon
expiration of such term.

     3. Compensation of Consultant.

       (a) Royalties. In full consideration of all rights granted herein and all services
performed and to be performed hereunder, the Company will pay to Consultant royalties from revenues
derived from contracts with customers generated by the Strategic Partner, provided that the
Strategic Partner was instrumental in generation of such contracts, subject to the Company’s
acceptance of the Strategic Partner and entry into a binding joint venture, strategic alliance or
similar agreement of Strategic Partner, as follows.

          (i) Consultant shall be paid a royalty equal to 1.25% of Gross Receipts (as defined
below) from revenues derived from contracts generated by the Strategic Partner.

          (ii) “Gross Receipts” shall mean 100% of all sums received by or credited to the
Company and its affiliates from unrelated third parties from revenues that are derived from
contracts generated by the Strategic Partner and that originate from the country in
which such contract is located. Gross Receipts shall be deemed to exclude sums received by
the Company and/or its affiliates which represent sales taxes, value added taxes, excise taxes, and
similar taxes which are collected by the Company and its affiliates as required by any requisite
taxing authorities of any government, but limited to the extent that such taxes are paid and not
returned or credited to the Company or an affiliate. Gross Receipts shall also be deemed to
exclude foreign currencies to the extent any foreign licensing society or organization collects or
withholds any portion thereof on behalf of or for the benefit of the Company. With respect to
foreign currencies received by the Company and its affiliates in connection herewith, it is agreed
and understood that such sums received shall be included in Gross Receipts hereunder, whether or
not such sums have been received in U.S. dollars in the United States, and whether or not such sums
which are capable of being remitted to the United States have yet been remitted. Gross Receipts
are not subject to retroactive adjustments for returns, refunds, credits, settlements, rebates and
discounts.

          (iii) Royalties shall be payable pursuant to this Section 8(a) during the period
beginning on the date of this Agreement and ending on the date occurring ten years thereafter.

          (iv) All amounts payable to Consultant pursuant to this Section 8(a) shall be paid
by the Company no later than 30 days after the end of each calendar quarter in respect of the
applicable Gross Receipts amounts actually received by the Company in such quarter. A statement of
account prepared by the Company shall accompany each such payment to Consultant.

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       (b) Warrants. Subject to compliance with applicable securities laws, the Company shall
issue to Mark Thornton, an individual, warrants to purchase shares of common stock of the Company
as follows:

          (i) Warrants to purchase 50,000 shares of common stock of the Company issuable upon
the date hereof in exchange for the Consultant’s introduction of the Strategic Partner to the
Company. Such warrants shall have a term of five years and have an exercise price of $1.00 per
share.

          (ii) Warrants to purchase 450,000 shares of common stock of the Company, subject to
and issuable upon the Company making a formal public announcement that it has entered into a
binding joint venture, strategic alliance or similar agreement with the Strategic Partner. Such
warrants shall have a term of five years and have an exercise price of $1.00 per share. Shares
shall be in the name of London Ausie Marketing Ltd.

       (c) Form S-8 Registration. The Company agrees to file with the Securities and
Exchange Commission as soon as practicable a registration statement on Form S-8 (or other available
form) registering the resale of the shares of common stock issuable upon exercise of the warrants
to be issued pursuant to Section 3(b).

     4. Nondisclosure. Without the express prior written consent of the Company,
Consultant shall not reveal to any third party any information of the Company that is identified by
the Company as being of a confidential or proprietary nature (the “Confidential Information”).
Confidential Information may be used by Consultant only with respect to performance of its
obligations under this Agreement, and only by those employees of Consultant who have a need to know
such information for the purposes related to this Agreement. Consultant shall protect the
Confidential Information by using the same degree of care (but no less than a reasonable degree of
care) to prevent the unauthorized use, dissemination or publication of such Confidential
Information that the Company uses. Consultant’s obligation with respect to any Confidential
Information under this Section 5 shall continue after and survive the termination of this
Agreement.

     5. No Servicing by Consultant. It is understood by Consultant that it is
not authorized by this Agreement to perform servicing of any kind upon any Goods in the Territory
or elsewhere, absent the express prior written approval of the Company.

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     6. Termination.

       (a) The Company shall have the right to terminate this Agreement effective immediately by
written notice to Consultant if:

          (i) Consultant engages in any conduct which threatens injury to the good name and
reputation of the Company;

          (ii) the Company has reasonable grounds to believe that Consultant will be unable,
whether because of financial difficulty or otherwise, to fulfill satisfactorily its obligations
under this Agreement;

          (iii) Consultant fails to conduct its business in accordance with all applicable
laws or regulations.

       (b) Either party to this Agreement may terminate this Agreement effectively immediately upon
written notice if the other party becomes insolvent, discontinues its business, has a receiver
appointed for it, any petition is filed by or against it in accordance with the bankruptcy laws, or
any assignment is made by it for the benefit of creditors.

       (c) In the event either party to this Agreement shall fail to perform or fulfill any of its
responsibilities as set forth herein, the other party may notify such defaulting party of the
matter in breach and if such matter is not cured within 30 days after receipt of such notice the
complaining party may by further written notice immediately terminate this Agreement.

       (d) Either party may terminate this Agreement in its sole discretion by giving to the other
party no less than 90 days written notice thereof.

     7. Effect of Termination. Consultant shall immediately upon termination
return to the Company all Confidential Information within its possession, including any documents
of a confidential or proprietary nature concerning the Goods which it has in its possession and all
forms, brochures and samples pertaining to the Goods. Any and all amounts due to Consultant
pursuant to this Agreement in respect of orders that were placed prior to the date of termination
shall be paid to Consultant pursuant to the manner described in Section 8.

     8. Applicable Law. This Agreement shall be construed in accordance with,
and shall be governed by, the laws of the State of California.

     9. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

     10. Amendments. The provisions of this Agreement may be waived, altered,
amended or repealed in whole or in part only on the written consent of all the parties to this
Agreement.

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     11. Notice. All notices, demands, and other communications under this Agreement
shall be in writing and shall be deemed to have been duly given (i) on the date of delivery if
delivered in person to the party to whom such notice is given, (ii) on the date such notice is
posted by mail, postage prepaid, registered mail, properly addressed to the party receiving such
notice, or (iii) upon the date of telex transmission, if by telex. Any notices hereunder shall be
sent to the following addresses and telex numbers or such other addresses or telex numbers as may
be designated by a party in writing from time to time in accordance with the procedure stated
herein:

	 	 	 	 	 
	

	 	If to the Company:
	 	 
	 
	 	 	 	 
	

	 	Save the World Air, Inc.	 	 
	

	 	5125 Lankershim Boulevard	 	 
	

	 	North Hollywood, CA 91601	 	 
	

	 	Facsimile: 818-487-8003	 	 
	

	 	Attention: Eugene Eichler	 	 
	 
	 	 	 	 
	

	 	If to Consultant:	 	 
	 
	 	 	 	 
	

	 	London Aussie Marketing, Ltd.	 	 
	

	 	2053 8th Avenue #2C	 	 
	

	 	New York, NY 10026	 	 
	

	 	Telephone: 212-222-0440	 	 
	

	 	Attention: Mark Thornton	 	 

     12. Divisibility. If any of the terms, provisions, covenants or conditions
of this Agreement is held by a court of competent jurisdiction to be invalid, void, or
unenforceable, the remainder of the provisions shall remain in full effect and shall in no way be
affected, impaired or invalidated.

     13. Final Agreement of the Parties. This Agreement supersedes and
terminates any and all prior agreements or contracts, written or oral, entered into between the
parties hereto with respect to the subject matter hereof.

     14. Assignment. This Agreement may not be assigned by Consultant, in whole
or in part, to any other party without the express written consent of the Company.

     15. Headings. The Section headings in this Agreement are for convenience of
reference only and shall have no bearing on the enforcement or interpretation of this Agreement.

     16. Waiver. No waiver, forbearance or failure by either party of its rights
to enforce any provision of this Agreement shall constitute a waiver or estoppel of such party’s
right to enforce such provision thereafter or to enforce any other provision of this Agreement.

     17. Jurisdiction. The parties hereby unconditionally and irrevocably agree
that the state and federal courts of California and any California or federal court competent to
hear appeals therefrom shall have the exclusive jurisdiction over any and all actions arising out
of or

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in relation to this Agreement, or for the breach hereof.

     18. Relationship of the Parties. Consultant is not an employee of the
Company for any purpose whatsoever, but is an independent contractor. The parties, by this
Agreement, have not entered into any form of joint venture or any other mutual enterprise, other
than the rendering by Consultant of the services for the Company in accordance with the terms
hereof. All expenses and disbursements, including, but not limited to, those for travel and
maintenance, entertainment, office, clerical, and general selling expenses, that may be incurred by
Consultant in connection with this Agreement shall be born wholly and completely by Consultant, and
the Company shall not be in any way responsible or liable therefore. Consultant does not have, nor
shall it hold itself out as having, any right, power, or authority to create any contract or
obligation, either expressed or implied, on behalf, in the name of, or binding upon the Company.
Any and all agents and employees of Consultant shall be at Consultant’s own risk, expense and
supervision, and the agents and employees of Consultant shall not have any claim against the
Company for salaries, commissions, items of cost, or any other form of compensation. Consultant
shall indemnify and hold the Company harmless from any cost and liability caused by any
unauthorized act of Consultant, its agents or employees.

[remainder of page intentionally left blank]

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     IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first written
above.

	 	 	 	 	 	 	 
	 	 	“Company”	 	 
	 
	 	 	 	 	 	 
	 	 	SAVE THE WORLD AIR, INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Eugene Eichler	 	 
	 	 	 	 	 	 	 
	

	 	 	 	Name: Eugene E. Eichler	 	 
	

	 	 	 	Title: President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	“Consultant”	 	 
	 
	 	 	 	 	 	 
	 	 	LONDON AUSSIE MARKETING, LTD.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Mark Thornton	 	 
	 	 	 	 	 	 	 
	

	 	 	 	Name	 	 
	

	 	 	 	Title:	 	 

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Exhibit A

Description of the Goods

1. ZEFS devices

2. CAT-MATE devices

A-1exv10w29

 

Exhibit 10.29

EMPLOYMENT AGREEMENT

          AGREEMENT made as of the 1st day of September 2004 by and between SAVE THE WORLD AIR, INC.
(“STWA”), a Nevada chartered corporation, and Erin Brockovich (the “Executive”).

BACKGROUND

          A. STWA desires to employ the Executive and the Executive is willing to serve on the terms and
conditions herein provided.

          B. In order to effect the foregoing, the parties hereto desire to enter into an employment
agreement on the terms and conditions set forth below.

          NOW, THEREFORE, in consideration of the premises and the respective covenants and agreements
of the parties contained herein, and intending to be legally bound hereby, the parties hereto agree
as follows:

          1. Definitions and Special Provisions Each capitalized word and term used herein
shall have the meaning ascribed to it in the glossary appended hereto, unless the context in which
such word or term is used otherwise clearly requires further definition. Such glossary is
incorporated herein by reference and made a part hereof.

          2. Employment. STWA hereby agrees to employ the Executive, and the Executive hereby
agrees to serve STWA, on the terms and conditions set forth herein.

          3. Term of Agreement The Executive’s employment under this Agreement shall commence on
the date hereof and, except as otherwise provided herein, shall continue until July 31, 2005;
provided, however, that commencing on July 31, 2005 and each anniversary thereafter, the term of
this Agreement shall automatically be extended for one additional year beyond the term otherwise
established unless, prior to such date, STWA or the Executive shall have given a Notice of
Non-Extension.

          4. Position and Duties The Executive shall serve as Vice President of Environmental
Affairs of STWA and she shall have such responsibilities, duties and authority as may, from time to
time, be generally associated with such position and or as specifically detailed in the company’s
official “Position Description.” In addition, the Executive shall serve in such capacity, with
respect to each Subsidiary or affiliated company, as the Board of Directors of each such Subsidiary
or affiliated company shall designate from time to time. During the term of this Agreement, she
shall devote such working time and efforts to the business and affairs of STWA, it’s Subsidiaries
and affiliated companies as directed from time to time by her supervising officer. Not
withstanding, nothing herein shall be construed as precluding her from devoting a reasonable amount
of time to her other business activities with Masry & Vititoe and Erin Brockovich, Inc. provided
they do not represent conflicts with her assigned responsibilities in this section and are not
otherwise in any way detrimental to STWA.

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5. Compensation and Related Matters.

Base Compensation. During the period of the Executive’s employment hereunder,
STWA shall pay to her annual base compensation of not less than $60,000.00;

The Board(s) of Directors of STWA shall periodically review the Executive’s employment
performance, in accordance with policies generally in effect from time to time, for
possible merit or cost-of-living increases in such base compensation. Except for a
reduction, should such reduction occur, which is proportionate to a company-wide
reduction in executive pay, the annual base compensation paid to the Executive in any
period shall not be less than the annual base compensation paid to her in any prior
period. The frequency and manner of payment of such base compensation shall be in
accordance with STWA’s executive payroll practices from time to time in effect

Incentive Compensation. During the period of the Executive’s employment
hereunder, she shall be eligible to participate in certain incentive plans, stock
option plans, and similar arrangements in accordance with her supervisor’s
recommendation at award levels consistent and commensurate with her position and
duties hereunder.

     (a) Employee Benefit Plans and Other Plans or Arrangements  The
Executive shall be entitled to participate in all Employee Benefit Plans of STWA that
either, are in effect at present or that may be adopted in the future. In addition,
she shall be entitled to participate in and enjoy any other plans and arrangements
which provide for sick leave, vacation, or personal days, provided to or for the
officers of STWA from time to time. Notwithstanding the foregoing, Executive shall be
entitled to at least four (4) weeks vacation per calendar year during each year of
employment. Such vacation shall be prorated during the year 2004 based on the date of
this Agreement.

     (b) Expenses. During the period of the Executive’s employment hereunder,
she shall be entitled to receive prompt reimbursement for all reasonable and customary
expenses, including transportation expenses, incurred by her in performing services
hereunder in accordance with the general policies and procedures established by STWA.
Not withstanding, such expenses require the Executive’s supervisor approval prior to
their expenditures.

6. Termination By Reason of Disability

     (a) In General. In the event the Executive becomes unable to perform her
duties on a basis as required by reason of the occurrence of her Disability and,
within 30 days after a Notice of Termination is given, she shall not have returned to
perform such duties, her employment may be terminated by STWA.

     (b) Compensation During any period of disability during which Executive
is unable to perform the services required of Executive hereunder and remains
employed, her salary hereunder shall be payable only to the extent of, and subject to,
Employer’s policies and practices then in effect with regard to sick leave and
disability benefits.

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7. Termination By STWA for Cause

     (a) In General. STWA may terminate Executive’s employment for gross
negligence, conviction of a felony or any other conviction reflecting dishonesty, or
breach of this Agreement, and in any such event, all obligations of Employer hereunder
shall immediately terminate.

     (b) Compensation. Within 30 days after the Executive’s termination under
Subparagraph (a), STWA shall pay her, in one lump sum, her accrued but unpaid base
compensation and vacation compensation earned through the Date of Termination.

8. Termination By STWA Without Disability or Cause

     (a) In General. In the event STWA intends to terminate the Executive’s
employment for any reason other than Disability or Cause, it shall deliver a Notice of
Termination to her which specifies a Date of Termination not less than 30 days
following the date of such notice.

     (b) Compensation and Benefits During Remaining Term of Agreement. In the
event of the termination of the Executive’s employment under Subparagraph (a), STWA
shall pay or provide the compensation and benefits described in Paragraph 6(b), except
that all such compensation and benefits shall be for the remaining term of this
Agreement determined in accordance with Section 3 hereof, unless a change in control
has occurred prior to such termination of employment, in which case all such
compensation and benefits shall be for a term of one (1) year from the Date of
Termination and the term of this Agreement shall continue until all such compensation
and benefits are paid to Executive in full.

     (c) Death During Remaining Term of Agreement In the event of Executive’s
death during the term of his employment, this Agreement shall terminate and Employer
shall only be obligated to pay Executive’s estate or legal representative accrued
salary and benefits to the extent earned by Executive prior to her death.

9. Termination By the Executive 

     (a) In General. In the event the Executive intends to terminate her
employment, she shall deliver a Notice of Termination to STWA which specifies a Date
of Termination not less than 30 days following the date of such notice.

     (b) Compensation Within 30 days after the Executive’s termination under
Subparagraph (a), STWA shall pay her, in one lump sum, her accrued but unpaid base
compensation and vacation compensation earned through the Date of Termination.

10. Withholding Taxes. All compensation and benefits provided for herein
shall, to the extent required by law, be subject to federal, state, and local tax
withholding.

11. Confidential Information. The Executive agrees that subsequent to her
employment with STWA, she will not, at any time, communicate or disclose to any
unauthorized person,

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without the written consent of the STWA, any proprietary or other confidential
information concerning STWA or any Subsidiary of STWA; provided, however, that the
obligations under this paragraph shall not apply to the extent that such matters (i)
are disclosed in circumstances where the Executive is legally obligated to do so, or
(ii) become generally known to and available for use by the public otherwise than by
her wrongful act or omission; and provided further, that she may disclose any
knowledge of insurance, financial, legal and economic principles, concepts and ideas
which are not solely and exclusively derived from the business plans and activities of
STWA.

12. Covenants Not to Compete or to Solicit.

     (a) Noncompetition. During the period in which she is employed by STWA
and, if the Executive’s employment terminates under Paragraphs 6, for a period of 12
months after the Date of Termination (the “Noncompetition Period”), the Executive
shall not, without the written consent in writing of the Board of Directors of STWA,
become an executive officer, partner, consultant, director, or a four and nine-tenths
percent or greater shareholder or equity owner of any entity engaged in any similar
activity as STWA it’s Subsidiaries and affiliated companies. If at the time of the
enforcement of this paragraph a court holds that the duration, scope, or area
restrictions stated herein are unreasonable under the circumstances then existing and,
thus, unenforceable, STWA and the Executive agree that the maximum duration, scope, or
area reasonable under such circumstances shall be substituted for the stated duration,
scope, or area.

     (b) Nonsolicitation. During her employment and the Noncompetition
Period, the Executive shall not, whether on her own behalf or on behalf of any other
individual or business entity, solicit, endeavor to entice away from STWA, a
Subsidiary or any affiliated company, or otherwise interfere with the relationship of
STWA, a Subsidiary or any affiliated company with any person who is, or was within the
then most recent 12 month period, an employee or associate thereof; provided, however,
that this subparagraph shall not apply following the occurrence of a Change in
Control.

     (c) Extension of Noncompetition Period The Non-Competition Period shall
be automatically extended by the length of time (if any) in which the Executive is in
violation of any of the terms of this Section 19.

13. Arbitration. To the extent permitted by applicable law, any controversy
or dispute arising out of or relating to this Agreement, or any alleged breach hereof,
shall be settled by arbitration in Los Angeles, California in accordance with the
commercial rules of the American Arbitration Association then in existence (to the
extent such rules are not inconsistent with the provisions of this Agreement), it
being understood and agreed that the arbitration panel shall consist of three
individuals acceptable to the parties hereto. In the event that the parties cannot
agree on three arbitrators within 20 days following receipt by one party of a demand
for arbitration from another party, then the Executive and STWA shall each designate
one arbitrator and the two arbitrators selected shall select the third arbitrator.
The arbitration panel so selected shall convene a hearing no later than 90 days
following the selection of the panel. The arbitration award shall be final and
binding upon the parties, and judgment may be entered thereon in the California
Superior Court or in any other court of competent jurisdiction.

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14. Additional Equitable Remedy The Executive acknowledges and agrees that
STWA’s remedy at law for a breach or a threatened breach of the provisions of
Paragraphs 18 and 19 would be inadequate; and, in recognition of this fact and
notwithstanding the provisions of Paragraph 20, in the event of such a breach or
threatened breach by her, it is agreed that STWA shall be entitled to request
equitable relief in the form of specific performance, temporary restraining order,
temporary or permanent injunction, or any other equitable remedy which may then be
available. Nothing in this paragraph shall be construed as prohibiting STWA from
pursuing any other remedy available under this Agreement for such a breach or
threatened breach.

15. Related Agreements. Except as may otherwise be provided herein, to the
extent that any provision of any other agreement between STWA and the Executive shall
limit, qualify, duplicate, or be inconsistent with any provision of this Agreement,
the provision in this Agreement shall control and such provision of such other
agreement shall be deemed to have been superseded, and to be of no force or effect, as
if such other agreement had been formally amended to the extent necessary to
accomplish such purpose.

16. No Effect on Other Rights. Except as otherwise specifically provided
herein, nothing contained in this Agreement shall be construed as adversely affecting
any rights the Executive may have under any agreement, plan, policy or arrangement to
the extent any such right is not inconsistent with the provisions hereof.

17. Exclusive Rights and Remedy. Except for any explicit rights and remedies
the Executive may have under any other contract, plan or arrangement with STWA, the
compensation and benefits payable hereunder and the remedy for enforcement thereof
shall constitute her exclusive rights and remedy in the event of her termination of
employment.

18. Notices. Any notice required or permitted under this Agreement shall be
sufficient if it is in writing and shall be deemed given (i) at the time of personal
delivery to the addressee, or (ii) at the time sent certified mail, with return
receipt requested, addressed as follows:

	 	 	 	 	 
	

	 	If to the Executive:
	 	Erin Elizabeth Brockovich
	

	 	 	 	29365 Castlehill Drive
	

	 	 	 	Agoura Hills, CA 91301
	 
	 	 	 	 
	

	 	If to STWA
	 	5125 Lankersham Boulevard
	

	 	 	 	North Hollywood, CA 91601
	 
	 	 	 	 
	

	 	 	 	Attention: Chairman of the Board of Directors

The name or address of any addressee may be changed at any time and from time to time by notice
similarly given.

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19. No Waiver. The failure by any party to this Agreement at any time or
times hereafter to require strict performance by any other party of any of the
provisions, terms, or conditions contained in this Agreement shall not waive, affect,
or diminish any right of the first party at any time or times thereafter to demand
strict performance therewith and with any other provision, term, or condition
contained in this Agreement. Any actual waiver of a provision, term, or condition
contained in this Agreement shall not constitute a waiver of any other provision,
term, or condition herein, whether prior or subsequent to such actual waiver and
whether of the same or a different type. The failure of STWA to promptly terminate
the Executive’s employment for Cause or the Executive to promptly terminate her
employment for Good Reason shall not be construed as a waiver of the right of
termination, and such right may be exercised at any time following the occurrence of
the event giving rise to such right.

20. Survival. Notwithstanding the nominal termination of this Agreement and
the Executive’s employment hereunder, the provisions hereof which specify continuing
obligations, compensation and benefits, and rights (including the otherwise applicable
term hereof) shall remain in effect until such time as all such obligations are
discharged, all such compensation and benefits are received, and no party or
beneficiary has any remaining actual or contingent rights hereunder.

21. Severability. In the event any provision in this Agreement shall be held
illegal or invalid for any reason, such illegal or invalid provision shall not affect
the remaining provisions hereof, and this Agreement shall be construed, administered
and enforced as though such illegal or invalid provision were not contained herein.

22. Binding Effect and Benefit. The provisions of this Agreement shall be
binding upon and shall inure to the benefit of the successors and assigns of STWA and
the executors, personal representatives, surviving spouse, heirs, devisees, and
legatees of the Executive.

23. Entire Agreement. This Agreement embodies the entire agreement among the
parties with respect to the subject matter hereof, and it supersedes all prior
discussions and oral understandings of the parties with respect thereto.

24. No Assignment. This Agreement, and the benefits and obligations
hereunder, shall not be assignable by any party hereto except by operation of law.

25. No Attachment. Except as otherwise provided by law, no right to receive
compensation or benefits under this Agreement shall be subject to anticipation,
commutation, alienation, sale, assignment, encumbrance, charge, pledge, or
hypothecation, or to set off, execution, attachment, levy, or similar process, and any
attempt, voluntary or involuntary, to effect any such action shall be null and void.

26. Captions. The captions of the several paragraphs and subparagraphs of
this Agreement have been inserted for convenience of reference only. They constitute
no part of this Agreement and are not to be considered in the construction hereof.

27. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed one and the same instrument which may be
sufficiently evidenced by any one counterpart.

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28. Number. Wherever any words are used herein in the singular form, they
shall be construed as though they were used in the plural form, as the context
requires, and vice versa.

29. Applicable Law. Except to the extent preempted by federal law, the
provisions of this Agreement shall be construed, administered, and enforced in
accordance with the domestic internal law of the State of California without reference
to its laws regarding conflict of laws.

IN WITNESS WHEREOF, the parties have executed this Agreement, or caused it to be
executed, as of the date first above written.

	 	 	 	 	 
	 
	 	 	 	/s/ ERIN E. BROCKOVICH 
	 	 	 
	

	 	 	 	Erin Elizabeth Brockovich
	 
	 	 	 	 
	 	 	SAVE THE WORLD AIR, INC.
	 
	 	 	 	 
	

	 	By:	 	/s/ EUGENE E. EICHLER 
	

	 	 	 
	

	 	 	 	Eugene E Eichler, President
	 
	 	 	 	 
	

	 	Attest:	 	 
	

	 	 	 	 
	

	 	 	 	Janice Holder

Corporate Secretary

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GLOSSARY

“Board of Directors” means the board of directors of the relevant corporation.

“Cause” means (i) a documented repeated and willful failure by the Executive to
perform her duties, but only after written demand and only if termination is effected
by action taken by a vote of (A) prior to a Change in Control, at least a majority of
the directors of STWA then in office, or (B) after a Change in Control, at least 80%
of the non-officer directors of STWA then in office, (ii) her final conviction of a
felony, (iii) conduct by her which constitutes moral turpitude which is directly and
materially injurious to STWA or any Material Subsidiary, (iv) willful material
violation of corporate policy, or (v) the issuance by the regulator of STWA or any
Subsidiary or affiliated company of an unappealable order to the effect that she be
permanently discharged.

For purposes of this definition, no act or failure to act on the part of the Executive
shall be considered “willful” unless done or omitted not in good faith and without
reasonable belief that the action or omission was in the best interest of STWA or any
of its Subsidiaries or affiliated companies.

“Change in Control” means the occurrence of any of the following events:

     (a) any Person (except (i) STWA or any Subsidiary or prior affiliate of STWA, or
(ii) any Employee Benefit Plan (or any trust forming a part thereof) maintained by
STWA or any Subsidiary or prior affiliate of STWA) is or becomes the beneficial owner,
directly or indirectly, of STWA’s securities representing 19.9% or more of the
combined voting power of STWA’s then outstanding securities, or 50.1% or more of the
combined voting power of a Material Subsidiary’s then outstanding securities, other
than pursuant to a transaction described in Clause (c);

     (b) there occurs a sale, exchange, transfer or other disposition of substantially
all of the assets of STWA or a Material Subsidiary to another entity, except to an
entity controlled directly or indirectly by STWA;

     (c) there occurs a merger, consolidation, share exchange, division or other
reorganization of or relating to STWA, unless—

          (i) the shareholders of STWA immediately before such merger, consolidation, share
exchange, division or reorganization own, directly or indirectly, immediately
thereafter at least two-thirds of the combined voting power of the outstanding voting
securities of the Surviving Company in substantially the same proportion as their
ownership of the voting securities immediately before such merger, consolidation,
share exchange, division or reorganization; and

          (ii) the individuals who, immediately before such merger, consolidation, share
exchange, division or reorganization, are members of the Incumbent Board continue to
constitute at least two-thirds of the board of directors of the Surviving Company;
provided, however, that if the election, or nomination for election by STWA’s
shareholders, of any new director was approved by a vote of at least two-thirds of the
Incumbent Board, such director

G-8

 

 

shall, for the purposes hereof, be considered a member of the Incumbent Board;
and provided further, however, that no individual shall be considered a member of the
Incumbent Board if such individual initially assumed office as a result of either an
actual or threatened Election Contest or Proxy Contest, including by reason of any
agreement intended to avoid or settle any Election Contest or Proxy Contest; and

          (iii) no Person (except (A) STWA or any Subsidiary or prior affiliate of STWA,
(B) any Employee Benefit Plan (or any trust forming a part thereof) maintained by STWA
or any Subsidiary or prior affiliate of STWA, or (C) the Surviving Company or any
Subsidiary or prior affiliate of the Surviving Company) has beneficial ownership of
19.9% or more of the combined voting power of the Surviving Company’s outstanding
voting securities immediately following such merger, consolidation, share exchange,
division or reorganization;

     (d) a plan of liquidation or dissolution of STWA, other than pursuant to
bankruptcy or insolvency laws, is adopted; or

     (e) during any period of two consecutive years, individuals who, at the beginning
of such period, constituted the Board of Directors of STWA cease for any reason to
constitute at least a majority of such Board of Directors, unless the election, or the
nomination for election by STWA’s shareholders, of each new director was approved by a
vote of at least two-thirds of the directors then still in office who were directors
at the beginning of the period; provided, however, that no individual shall be
considered a member of the Board of Directors of STWA at the beginning of such period
if such individual initially assumed office as a result of either an actual or
threatened Election Contest or Proxy Contest, including by reason of any agreement
intended to avoid or settle any Election Contest or Proxy Contest.

Notwithstanding the foregoing, a Change in Control shall not be deemed to have
occurred if a Person becomes the beneficial owner, directly or indirectly, of
securities representing 19.9% or more of the combined voting power of STWA’s then
outstanding securities solely as a result of an acquisition by STWA of its voting
securities which, by reducing the number of shares outstanding, increases the
proportionate number of shares beneficially owned by such Person; provided, however,
that if a Person becomes a beneficial owner of 19.9% or more of the combined voting
power of STWA’s then outstanding securities by reason of share repurchases by STWA and
thereafter becomes the beneficial owner, directly or indirectly, of any additional
voting securities of STWA, then a Change in Control shall be deemed to have occurred
with respect to such Person under Clause (a).

Notwithstanding anything contained herein to the contrary, if the Executive’s
employment is terminated and she reasonably demonstrates that such termination (i) was
at the request of a third party who has indicated an intention of taking steps
reasonably calculated to effect a Change in Control and who effects a Change in
Control, or (ii) otherwise occurred in connection with, or in anticipation of, a
Change in Control which actually occurs, then for all purposes hereof, a Change in
Control shall be deemed to have occurred on the day immediately prior to the date of
such termination of her employment.

“STWA” means Save The World Air, Inc.

G-9

 

 

“Date of Termination” means:

     (a) if the Executive’s employment is terminated for Disability, 30 days after the
Notice of Termination is given (provided that she shall not have returned to the
performance of her duties on a full-time basis during such 30-day period);

     (b) if the Executive’s employment terminates by reason of her death, the date
of her death;

     (c) if the Executive’s employment is terminated by STWA for Cause, the date of
termination specified in the Notice of Termination and determined in accordance with
Section 8(a);

     (d) if the Executive’s employment is terminated by her without Good Reason, the
date of termination specified in the Notice of Termination and determined in
accordance with Section 9(a);

     (e) if the Executive’s employment is terminated by STWA for any reason other than
for Disability or Cause, the date specified in the Notice of Termination and
determined in accordance with Section 10(a); or

     (f) if the Executive’s employment is terminated by her for Good Reason, the
termination date specified in the Notice of Termination and determined in accordance
with Section 11(a);

provided, however that the Date of Termination shall mean the actual date of
termination in the event the parties mutually agree to a date other than that
described above.

“Defined Benefit Plan” has the meaning ascribed to such term in Section 3(35) of ERISA.

.“Disability” has the meaning ascribed to the term “permanent and total disability” in
Section 22(e)(3) of the IRC.

“Employee Benefit Plan” has the meaning ascribed to such term in Section 3(3) of ERISA.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended and as
the same may be amended from time to time.

“Excise Tax” means the tax imposed by Section 4999 of the IRC (or any similar tax that
may hereafter be imposed by federal, state or local law).

“Executive” means NAME OF EXECUTIVE, an individual residing in ADDRESS, California.

“Incumbent Board” means the Board of Directors of STWA as constituted at any relevant
time.

G-10

 

 

“IRC” means the Internal Revenue Code of 1986, as amended and as the same may be
amended from time to time.

“Notice of Non-Extension” means a written notice delivered to or by the Executive
which advises that the Agreement will not be extended as provided in Paragraph 3.

“Notice of Termination” means a written notice that (i) indicates the specific
termination provision in this Agreement relied upon, (ii) sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated, and (iii) gives the required
advance notice of termination.

“Person” has the same meaning as such term has for purposes of Sections 13(d) and
14(d) of the 1934 Act.

“Subsidiary” means any business entity of which a majority of its voting power or its
equity securities or equity interests is owned, directly or indirectly by STWA.

“Successor” means any Person that succeeds to, or has the practical ability to control
(either immediately or with the passage of time), STWA’s business directly, by merger
or consolidation, or indirectly, by purchase of STWA’s voting securities or all or
substantially all of its assets.

“Surviving Company” means the business entity that is a resulting company following a
merger, consolidation, share exchange, division or other reorganization of or relating
to STWA.

“Total Payments” means the compensation and benefits that become payable under the
Agreement or otherwise (and which may be subject to an Excise Tax) by reason of the
Executive’s termination of employment, less the federal, state and local income tax
(but not any Excise Tax) on such compensation and benefits, in each case determined
without regard to any Gross-Up Payments that may also be made.

G-11

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