Document:

Exhibit 10.3

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

	  	
Right to Purchase _____ shares of Common Stock of Wizard World, Inc. (subject to adjustment as provided herein)

SERIES A COMMON STOCK PURCHASE WARRANT

	
No. 2011-A-00_

	
Issue Date: August ___, 2011

WIZARD WORLD, INC. (formerly GoEnergy, Inc.), a corporation organized under the laws of the State of Delaware (the “Company”), hereby certifies that, for value received [Holder’s name], with an address at [Holder’s _______________________Address], or its assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company at any time after the Issue Date until 5:00 p.m., EDT on the five (5) year anniversary of the Issue Date (the “Expiration Date”), up to _______ (___) fully paid and non-assessable shares of Common Stock at a per share purchase price of $0.60.  The aforedescribed purchase price per share, as adjusted from time to time as herein provided, is referred to herein as the “Purchase Price.”  The number and character of such shares of Common Stock and the Purchase Price are subject to adjustment as provided herein.  The Company may reduce the Purchase Price for some or all of the Warrants, temporarily or permanently, provided such reduction is made as to all outstanding Warrants for all Holders of such Warrants.  Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Subscription Agreement (the “Subscription Agreement”), dated as of August __, 2011, entered into by the Company, Holder and the other signatories thereto.

As used herein the following terms, unless the context otherwise requires, have the following respective meanings:

 

(a)         The term “Company” shall mean Wizard World, Inc. (formerly GoEnergy, Inc.), a Delaware corporation, and any corporation which shall succeed or assume the obligations of Wizard World, Inc. hereunder.

 

(b)         The term “Common Stock” includes (i) the Company's Common Stock, $0.0001 par value per share, as authorized on the date of the Subscription Agreement, and (ii) any other securities into which or for which any of the securities described in (i) may be converted or exchanged pursuant to a plan of recapitalization, reorganization, merger, sale of assets or otherwise.

  

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(c)         The term “Other Securities” refers to any stock (other than Common Stock) and other securities of the Company or any other person (corporate or otherwise) which the holder of the Warrant at any time shall be entitled to receive, or shall have received, on the exercise of the Warrant, in lieu of or in addition to Common Stock, or which at any time shall be issuable or shall have been issued in exchange for or in replacement of Common Stock or Other Securities pursuant to Section 4 hereof or otherwise.

 

(d)         The term “Warrant Shares” shall mean the Common Stock issuable upon exercise of this Warrant.

 

1.           Exercise of Warrant.

 

1.1.        Number of Shares Issuable upon Exercise.  From and after the Issue Date through and including the Expiration Date, the Holder shall be entitled to receive, upon exercise of this Warrant in whole in accordance with the terms of Section 1.2 hereof or upon exercise of this Warrant in part in accordance with Section 1.3 hereof, shares of Common Stock of the Company, subject to adjustment pursuant to Section 4 hereof and Sections 12(a) and 14(p) of the Subscription Agreement.

 

1.2.        Full Exercise.  This Warrant may be exercised in full by the Holder hereof by delivery to the Company of an original or facsimile copy of the form of subscription attached as Exhibit A hereto (the “Subscription Form”) duly executed by such Holder and delivered within two (2) business day thereafter of payment, in cash, wire transfer or by certified or official bank check payable to the order of the Company, in the amount obtained by multiplying the number of shares of Common Stock for which this Warrant is then exercisable by the Purchase Price then in effect.  The original Warrant is not required to be surrendered to the Company until it has been fully exercised.

 

1.3.        Partial Exercise.  This Warrant may be exercised in part (but not for a fractional share) by delivery of a Subscription Form in the manner and at the place provided in Section 1.2 hereof, except that the amount payable by the Holder on such partial exercise shall be the amount obtained by multiplying (a) the number of whole shares of Common Stock designated by the Holder in the Subscription Form by (b) the Purchase Price then in effect.  On any such partial exercise, upon the written request of the Holder, provided the Holder has surrendered the original Warrant, the Company, at its expense, will forthwith issue and deliver to or upon the order of the Holder a new Warrant of like tenor, in the name of the Holder hereof or as such Holder (upon payment by such Holder of any applicable transfer taxes) may request, the whole number of shares of Common Stock for which such Warrant may still be exercised.

 

1.4.        Fair Market Value.  For purposes of this Warrant, the Fair Market Value of a share of Common Stock as of a particular date (the “Determination Date”) shall mean:

 

(a)           If the Company's Common Stock is traded on an exchange or on the NASDAQ Global Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New York Stock Exchange or the NYSE AMEX Equities, then the average of the closing sale prices of the Common Stock for the five (5) trading days immediately prior to (but not including) the Determination Date;

 

(b)           If the Company's Common Stock is not traded on an exchange or on the NASDAQ Global Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New York Stock Exchange or the NYSE AMEX Equities, but is traded on the OTC Bulletin Board or in the over-the-counter market or Pink Sheets, then the average of the closing bid and ask prices reported for the five (5) trading days immediately prior to (but not including) the Determination Date;

  

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(c)           Except as provided in clause (d) below and Section 3.1 hereof, if the Company's Common Stock is not publicly traded, then as the Holder and the Company shall mutually agree, or in the absence of such an agreement after good faith efforts of the Company and the Holder to reach an agreement, by arbitration in accordance with the rules then standing of the American Arbitration Association, before a single arbitrator to be chosen from a panel of persons qualified by education and training to pass on the matter to be decided; or

 

(d)           If the Determination Date is the date of a liquidation, dissolution or winding up, or any event deemed to be a liquidation, dissolution or winding up pursuant to the Company's charter, then all amounts to be payable per share to holders of the Common Stock pursuant to the charter in the event of such liquidation, dissolution or winding up, plus all other amounts to be payable per share in respect of the Common Stock in liquidation under the charter, assuming for the purposes of this clause (d) that all of the shares of Common Stock then issuable upon exercise of all of the Warrants are outstanding at the Determination Date.

 

1.5.        Company Acknowledgment.  The Company will, at the time of the exercise of the Warrant, upon the request of the Holder hereof, acknowledge in writing its continuing obligation to afford to such Holder any rights to which such Holder shall continue to be entitled after such exercise in accordance with the provisions of this Warrant. If the Holder shall fail to make any such request, such failure shall not affect the continuing obligation of the Company to afford to such Holder any such rights.

 

1.6.        Delivery of Stock Certificates, etc. on Exercise.  The Company agrees that, provided the purchase price listed in the Subscription Form is received as specified in Section 2 hereof, the shares of Common Stock purchased upon exercise of this Warrant shall be deemed to be issued to the Holder hereof as the record owner of such shares as of the close of business on the date on which delivery of a Subscription Form shall have occurred and payment made for such shares as aforesaid. As soon as practicable after the exercise of this Warrant in full or in part and the payment is made, and in any event within five (5) business days thereafter (“Warrant Share Delivery Date”), the Company, at its expense (including the payment by it of any applicable issue taxes), will cause to be issued in the name of, and delivered to, the Holder hereof, or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct in compliance with applicable securities laws, a certificate or certificates for the number of duly and validly issued, fully paid and non-assessable shares of Common Stock (or Other Securities) to which such Holder shall be entitled on such exercise, plus, in lieu of any fractional share to which such Holder would otherwise be entitled, cash equal to such fraction multiplied by the then Fair Market Value of one full share of Common Stock, together with any other stock or other securities and property (including cash, where applicable) to which such Holder is entitled upon such exercise pursuant to Section 1 hereof or otherwise.  The Company understands that a delay in the delivery of the Warrant Shares after the Warrant Share Delivery Date could result in economic loss to the Holder.  As compensation to the Holder for such loss, the Company agrees to pay (as liquidated damages and not as a penalty) to the Holder for late issuance of Warrant Shares upon exercise of this Warrant the proportionate amount of $100 per business day after the Warrant Share Delivery Date for each $10,000 of Purchase Price of Warrant Shares for which this Warrant is exercised which are not timely delivered.  The Company shall promptly pay any payments incurred under this Section in immediately available funds upon demand.  Furthermore, in addition to any other remedies which may be available to the Holder, in the event that the Company fails for any reason to effect delivery of the Warrant Shares by the Warrant Share Delivery Date, the Holder may revoke all or part of the relevant Warrant exercise by delivery of a written notice to such effect to the Company, whereupon the Company and the Holder shall each be restored to their respective positions immediately prior to the exercise of the relevant portion of this Warrant, except that the liquidated damages described above shall be payable through the date notice of revocation or rescission is given to the Company.

  

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1.7.        Buy-In.  In addition to any other rights available to the Holder, if the Company fails to deliver to a Holder the Warrant Shares as required pursuant to this Warrant, and the Holder or a broker on the Holder’s behalf, purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by such Holder of the Warrant Shares which the Holder was entitled to receive from the Company (a “Buy-In”), then the Company shall pay in cash to the Holder (in addition to any remedies available to or elected by the Holder) the amount by which (A) the Holder's total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (B) the aggregate Purchase Price of the Warrant Shares required to have been delivered together with interest thereon at a rate of 15% per annum, accruing until such amount and any accrued interest thereon is paid in full (which amount shall be paid as liquidated damages and not as a penalty).  For purposes of illustration, if a Holder purchases shares of Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to $10,000 of Purchase Price of Warrant Shares to have been received upon exercise of this Warrant, the Company shall be required to pay the Holder $1,000, plus interest.  The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In, which shall include evidence of the price at which such Holder had to purchase the Common Stock in an open-market transaction or otherwise.

 

2.           Cashless Exercise.

 

(a)         Payment upon exercise may be made at the written option of the Holder either in (i) cash, wire transfer or by certified or official bank check payable to the order of the Company equal to the applicable aggregate Purchase Price, (ii) by delivery of Common Stock issuable upon exercise of the Warrants in accordance with Section (b) below or (iii) by a combination of any of the foregoing methods, for the number of Common Stock specified in such form (as such exercise number shall be adjusted to reflect any adjustment in the total number of shares of Common Stock issuable to the Holder per the terms of this Warrant) and the Holder shall thereupon be entitled to receive the number of duly authorized, validly issued, fully-paid and non-assessable shares of Common Stock (or Other Securities) determined as provided herein.  Notwithstanding the immediately preceding sentence, payment upon exercise may be made in the manner described in Section 2(b) below only with respect to Warrant Shares not included for unrestricted public resale in an effective registration statement on the date notice of exercise is given by the Holder.

 

(b)         If the Fair Market Value of one share of Common Stock is greater than the Purchase Price (at the date of calculation as set forth below), in lieu of exercising this Warrant for cash, the Holder may elect to receive shares equal to the value (as determined below) of this Warrant (or the portion thereof being cancelled) by delivery of a properly endorsed Subscription Form delivered to the Company by any means described in Section 13 hereof, in which event the Company shall issue to the holder a number of shares of Common Stock computed using the following formula:

 

X=Y (A-B)

          A

	 	
Where    X= 

	
the number of shares of Common Stock to be issued to the Holder

	
  

	
Y=

	
the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being exercised (at the date of such calculation)

 

	
  

	
A=

	
Fair Market Value

 

	
  

	
B=

	
Purchase Price (as adjusted to the date of such calculation)

  

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For purposes of Rule 144 promulgated under the 1933 Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction in the manner described above shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date this Warrant was originally issued pursuant to the Subscription Agreement.

 

3.           Adjustment for Reorganization, Consolidation, Merger, etc.

 

3.1.        Fundamental Transaction.  If, at any time while this Warrant is outstanding, (A) the Company  effects any merger or  consolidation  of the Company with or into another entity, (B) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions,  (C) any tender offer or exchange offer (whether by the Company or another entity) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, (D) the Company consummates a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, or spin-off) with one or more persons or entities whereby such other persons or entities acquire more than the 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by such other persons or entities making or party to, or associated or affiliated with the other persons or entities making or party to, such stock purchase agreement or other business combination), (E) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate Common Stock of the Company, or (F) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such case, a “Fundamental  Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder, (a) upon exercise of this Warrant, the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable upon or as a result of such reorganization, reclassification, merger, consolidation or disposition of assets by a Holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such event or (b) if the Company is acquired in (1) a transaction where the consideration paid to the holders of the Common Stock consists solely of cash, (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the 1934 Act, or (3) a transaction involving a person or entity not traded on a national securities exchange, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market, cash equal to the Black-Scholes Value (as defined herein).  For purposes of any such exercise, the determination of the Purchase Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Purchase Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.  If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction.  To the extent necessary to effectuate the foregoing provisions, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions and evidencing the Holder's right to exercise such warrant into Alternate Consideration.  The terms of any agreement pursuant to which a Fundamental Transaction is effected include terms requiring any such successor or surviving entity to comply with the provisions of this Section 3.1 and insuring that this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.  “Black-Scholes Value” shall be determined in accordance with the Black-Scholes Option Pricing Model obtained from the “OV” function on Bloomberg L.P. using (i) a price per share of Common Stock equal to the Volume Weighted Average Price of the Common Stock for the Trading Day immediately preceding the date of consummation of the applicable Fundamental Transaction, (ii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of this Warrant as of the date of such request and (iii) an expected volatility equal to the 100 day volatility obtained from the HVT function on Bloomberg L.P. determined as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction.

  

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3.2.        Continuation of Terms.  Upon any reorganization, consolidation, merger or transfer (and any dissolution following any transfer) referred to in this Section 3 hereof, this Warrant shall continue in full force and effect and the terms hereof shall be applicable to the Other Securities and property receivable on the exercise of this Warrant after the consummation of such reorganization, consolidation or merger or the effective date of dissolution following any such transfer, as the case may be, and shall be binding upon the issuer of any Other Securities, including, in the case of any such transfer, the person acquiring all or substantially all of the properties or assets of the Company, whether or not such person shall have expressly assumed the terms of this Warrant as provided in Section 4 hereof.

 

3.3         Share Issuance.  Until the Expiration Date, if the Company shall issue any Common Stock, except for the Excepted Issuances (as defined in the Subscription Agreement), prior to the complete exercise of this Warrant for a consideration less than the Purchase Price that would be in effect at the time of such issuance, then, and thereafter successively upon each such issuance, the Purchase Price shall be reduced to such other lower price for then outstanding Warrants.  For purposes of this adjustment, the issuance of any security or debt instrument of the Company carrying the right to convert such security or debt instrument into Common Stock or of any warrant to purchase Common Stock shall result in an adjustment to the Purchase Price upon the issuance of the of the above-described security, debt instrument, warrant, right, or option if such issuance is at a price lower than the Purchase Price in effect upon such issuance and again at any time upon any actual, permitted, optional, or allowed issuances of shares of Common Stock upon any actual, permitted, optional, or allowed exercise of such conversion or purchase rights if such issuance is at a price lower than the Purchase Price in effect upon any actual, permitted, optional, or allowed such issuance.  Common Stock issued or issuable by the Company for no consideration will be deemed issuable or to have been issued for $0.0001 per share of Common Stock.  The reduction of the Purchase Price described in this Section 3.3 is in addition to the other rights of the Holder described in the Subscription Agreement.  Upon any reduction of the Purchase Price, the number of shares of Common Stock that the Holder of this Warrant shall thereafter, on the exercise hereof, be entitled to receive shall be adjusted to a number determined by multiplying the number of shares of Common Stock that would otherwise (but for the provisions of this Section 3.3) be issuable on such exercise by a fraction of which (a) the numerator is the Purchase Price that would otherwise (but for the provisions of this Section 3.3) be in effect, and (b) the denominator is the Purchase Price in effect on the date of such exercise.

 

4.           Extraordinary Events Regarding Common Stock.  In the event that the Company shall (a) issue additional shares of Common Stock as a dividend or other distribution on outstanding Common Stock, (b) subdivide its outstanding shares of Common Stock, or (c) combine its outstanding shares of the Common Stock into a smaller number of shares of Common Stock, then, in each such event, the Purchase Price shall, simultaneously with the happening of such event, be adjusted by multiplying the then Purchase Price by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately prior to such event and the denominator of which shall be the number of shares of Common Stock outstanding immediately after such event, and the product so obtained shall thereafter be the Purchase Price then in effect. The Purchase Price, as so adjusted, shall be readjusted in the same manner upon the happening of any successive event or events described in this Section 4.  The number of shares of Common Stock that the Holder of this Warrant shall thereafter, on the exercise hereof, be entitled to receive shall be adjusted to a number determined by multiplying the number of shares of Common Stock that would otherwise (but for the provisions of this Section 4) be issuable on such exercise by a fraction of which (a) the numerator is the Purchase Price that would otherwise (but for the provisions of this Section 4) be in effect, and (b) the denominator is the Purchase Price in effect on the date of such exercise.

  

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5.           Certificate as to Adjustments.  In each case of any adjustment or readjustment in the shares of Common Stock (or Other Securities) issuable on the exercise of the Warrants or in the Purchase Price, the Company at its expense will promptly cause its Chief Financial Officer or other appropriate designee to compute such adjustment or readjustment in accordance with the terms of the Warrant and prepare a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based, including a statement of (a) the consideration received or receivable by the Company for any additional shares of Common Stock (or Other Securities) issued or sold or deemed to have been issued or sold, (b) the number of shares of Common Stock (or Other Securities) outstanding or deemed to be outstanding, and (c) the Purchase Price and the number of shares of Common Stock to be received upon exercise of this Warrant, in effect immediately prior to such adjustment or readjustment and as adjusted or readjusted as provided in this Warrant. The Company will forthwith mail a copy of each such certificate to the Holder of the Warrant and any Warrant Agent (as defined herein) of the Company (appointed pursuant to Section 10 hereof).  Holder will be entitled to the benefit of the adjustment regardless of the giving of such notice.  The timely giving of such notice to Holder is a material obligation of the Company.

 

6.           Reservation of Stock, etc. Issuable on Exercise of Warrant; Financial Statements.   The Company will at all times reserve and keep available, solely for issuance and delivery on the exercise of the Warrants, all shares of Common Stock (or Other Securities) from time to time issuable on the exercise of the Warrant.  This Warrant entitles the Holder hereof, upon written request, to receive copies of all financial and other information distributed or required to be distributed to the holders of the Company's Common Stock.

 

7.           Assignment; Exchange of Warrant.  Subject to compliance with applicable securities laws, this Warrant, and the rights evidenced hereby, may be transferred by any registered holder hereof (a “Transferor”).  On the surrender for exchange of this Warrant, with the Transferor's endorsement in the form of Exhibit B attached hereto (the “Transferor Endorsement Form”) and together with an opinion of counsel reasonably satisfactory to the Company that the transfer of this Warrant will be in compliance with applicable securities laws, the Company will issue and deliver to or on the order of the Transferor thereof a new Warrant or Warrants of like tenor, in the name of the Transferor and/or the transferee(s) specified in such Transferor Endorsement Form (each a “Transferee”), calling in the aggregate on the face or faces thereof for the number of shares of Common Stock called for on the face or faces of the Warrant so surrendered by the Transferor.

 

8.           Replacement of Warrant.  On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity agreement or security reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation, on surrender and cancellation of this Warrant, the Company at its expense, twice only, will execute and deliver, in lieu thereof, a new Warrant of like tenor.

 

  

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9.           Maximum Exercise.  The Holder shall not be entitled to exercise this Warrant on an exercise date, in connection with that number of shares of Common Stock which would be in excess of the sum of (i) the number of shares of Common Stock beneficially owned by the Holder and its Affiliates on an exercise date, and (ii) the number of shares of Common Stock issuable upon the exercise of this Warrant with respect to which the determination of this limitation is being made on an exercise date, which would result in beneficial ownership by the Holder and its Affiliates of more than 4.99% of the outstanding shares of Common Stock on such date.  For the purposes of the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the 1934 Act and Rule 13d-3 thereunder.  Subject to the foregoing, the Holder shall not be limited to aggregate exercises which would result in the issuance of more than 4.99%.  The restriction described in this paragraph may be waived, in whole or in part, upon sixty-one (61) days’ prior notice from the Holder to the Company to increase such percentage.  The Holder may decide whether to convert the Note or exercise this Warrant to achieve an actual 4.99% or increase such ownership position as described above.

 

10.         Warrant Agent.  The Company may, by written notice to the Holder, appoint an agent (a “Warrant Agent”) for the purpose of issuing Common Stock (or Other Securities) on the exercise of this Warrant pursuant to Section 1 hereof, exchanging this Warrant pursuant to Section 7 hereof, and replacing this Warrant pursuant to Section 8 hereof, or any of the foregoing, and thereafter any such issuance, exchange or replacement, as the case may be, shall be made at such office by such Warrant Agent.

 

11.         Transfer on the Company's Books.  Until this Warrant is transferred on the books of the Company, the Company may treat the registered holder hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.

 

12.         Reserved.

13.         Notices.  All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile addressed as set forth below or to such other address as such party shall have specified most recently by written notice.  Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received), or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.  The addresses for such communications shall be:  (i) if to the Company, to Wizard World, Inc., 1350 Avenue of the Americas, 2nd Floor, New York, NY 10019, Attn: Gareb Shamus, with a copy by fax only to (which shall not constitute notice) Lucosky Brookman LLP, 33 Wood Avenue South, 6th Floor, Iselin, NJ 08830, Attn: Joseph M. Lucosky, Esq., facsimile: (732) 395-4401, and (ii) if to the Holder, to the address and facsimile number listed on the first paragraph of this Warrant, with a copy by fax (which shall not constitute notice) only to Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream, New York 11581, facsimile: (212) 697-3575.

  

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14.         Law Governing This Warrant.  This Warrant shall be governed by and construed in accordance with the laws of the State of New York without regard to its principles of conflicts of laws or of any other State.  Any action brought by either party hereto against the other concerning the transactions contemplated by this Warrant shall be brought only in the state courts of New York or in the federal courts located in the state and county of New York.  The parties to this Warrant hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens.  The Company and the Holder waive trial by jury.  The prevailing party shall be entitled to recover from the other party its reasonable attorneys’ fees and costs.  In the event that any provision of this Warrant or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform to, such statute or rule of law.  Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.  Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Warrant or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

[Signature Page Follows]

  

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IN WITNESS WHEREOF, the Company has executed this Warrant as of the date first written above.

 

	
WIZARD WORLD INC.

	  
	
By: 

	
  

	  	
Gareb Shamus

	  	
President and Chief Executive Officer

  

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Exhibit A

FORM OF SUBSCRIPTION

(to be signed only on exercise of Warrant)

 

TO:  WIZARD WORLD, INC.

 

The undersigned, pursuant to the provisions set forth in the attached Warrant (No.____), hereby irrevocably elects to purchase (check applicable box):

	
___ 

	
________ shares of the Common Stock covered by such Warrant; or

 

	
___

	
the maximum number of shares of Common Stock covered by such Warrant pursuant to the cashless exercise procedure set forth in Section 2 of the Warrant.

The undersigned herewith makes payment of the full purchase price for such shares at the price per share provided for in such Warrant, which is $___________.  Such payment takes the form of (check applicable box or boxes):

	
___ 

	
$__________ in lawful money of the United States; and/or

 

	
___

	
the cancellation of such portion of the attached Warrant as is exercisable for a total of _______ shares of Common Stock (using a Fair Market Value of $_______ per share for purposes of this calculation); and/or

	
___

	
the cancellation of such number of shares of Common Stock as is necessary, in accordance with the formula set forth in Section 2 of the Warrant, to exercise this Warrant with respect to the maximum number of shares of Common Stock purchasable pursuant to the cashless exercise procedure set forth in Section 2.

After application of the cashless exercise feature as described above, _____________ shares of Common Stock are required to be delivered pursuant to the instructions below.

The undersigned requests that the certificates for such shares be issued in the name of, and delivered to __________________________________________, whose address is ___________________________ ___________________________________________________________________________________________.

The undersigned represents and warrants that all offers and sales by the undersigned of the securities issuable upon exercise of the within Warrant shall be made pursuant to registration of the Common Stock under the Securities Act of 1933, as amended (the “Securities Act”), or pursuant to an exemption from registration under the Securities Act.

	
Dated:___________________

	
  

	  	
(Signature must conform to name of holder as

	  	
specified on the face of the Warrant)

	  	  
	  	
  

	  	
  

	  	
(Address)

  

11

  

Exhibit B

FORM OF TRANSFEROR ENDORSEMENT

(To be signed only on transfer of Warrant)

 

For value received, the undersigned hereby sells, assigns, and transfers unto the person(s) named below under the heading “Transferees” the right represented by the within Warrant to purchase the percentage and number of shares of Common Stock of WIZARD WORLD, INC. to which the within Warrant relates specified under the headings “Percentage Transferred” and “Number Transferred,” respectively, opposite the name(s) of such person(s) and appoints each such person Attorney to transfer its respective right on the books of WIZARD WORLD, INC., with full power of substitution in the premises.

	
Transferees

	  	
Percentage Transferred

	  	
Number Transferred

	  	  	  	  	  
	  	  	  	  	  
	  	
  

	  	
  

	  

	
Dated:  __________________, _______

	  	
  

	  	  	
(Signature must conform to name of holder as specified

	  	  	
on the face of the warrant)

	  	  	  
	
Signed in the presence of:

	  	  
	  	  	  
	  	  	  
	
(Name)

	  	  
	  	  	
(address)

	  	  	  
	
ACCEPTED AND AGREED:

	  	  
	
[TRANSFEREE]

	  	
  

	  	  	
(address)

	  	  	  
	  	  	  
	
(Name)Technical Assistance Agreement for

 

Light Transport Vehicle Electric Drive System

Mahindra & Mahindra Ltd., India

And

NuGen Mobility Inc., USA

Phase II & III     $726,352.00

Date:   June 09, 2009

  

  

  

This Agreement has been made and entered into on the Ninth day of June  2009  by and between  Mahindra & Mahindra Ltd., a company incorporated under the Indian Companies Act, 1913, Gateway Building,  Apollo Bunder,  Mumbai 400 001, India

(hereinafter referred to as “M&M”, which expression shall unless it be repugnant to the context or meaning thereof shall mean and include its successors and assigns) Of the One Part

and  NuGen Mobility Inc., a company incorporated under the laws of Delaware in the U.S.A having its registered office at 44645 Guilford Drive, Suite 201, Ashburn Virginia 20147, U.S.A

(hereinafter referred to as “NuGen”, which expression shall unless it be repugnant to the context or meaning thereof shall mean and include its successors and assigns) of the Other Part

(M&M and NuGen  are individually referred to as Party and collectively referred to as Parties)

WHEREAS

 

	
1

	
M&M is a manufacturer and seller, inter alia, of utility vehicles and parts and accessories thereof;

 

	
2

	
NuGen is a service provider company which provides technical services including engineering in the area of electric drive and  drive systems components;

 

	
3

	
By an agreement dated 8th January 2008 M&M has appointed NuGen for the purpose of developing a drive system for a 4-wheel Light Transport Vehicle (LTV) platform that will be converted to an all Electric drive train for evaluation purposes (Project) as per the details  mdentioned therein ;

 

	
4

	
Under the said agreement dated 8th January 2008 NuGen has completed the Phase I of the Project and the Parties are desirous of carrying out Phase II and III of the Project and for that purpose wish to enter into this agreement;

 

	
5

	
The Parties have thought it expedient to put forth in writing the terms and conditions on which NuGen shall provide the services to M&M for Phase II and II of the Project, as hereinafter appearing.

 

	
6

	
This Agreement outlines the relationship and understanding of the Project.

 

NOW IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:

 

	
1

	
Object

 

The object of the Agreement is for NuGen is to carry out the services for the Phase II and III of the Project and to support and develop a drive system for a 4-wheel Light Transport Vehicle (LTV) platform  that will be converted to an all Electric drive train for evaluation purposes (Project) as per the Proposal Annexed hereto as Annexure I.

  

2

  

 

	
2

	
Scope of this Agreement

 

	
  

	
2.1

	
The integration of a drive system into a vehicle are to be carried out in three phases as follows:

	
  

	
2.1.1

	
Phase I : System Verification and Design.

	
  

	
During this Phase a case study will be carried out whereby the initial requirements, architecture and prototype design of required components will be developed for the target platform and results typically in a prototype vehicle(s).

	
  

	
Work contemplated under this Phase I has already completed and the Parties now wish to carry out the work under Phase II and III as hereinafter appearing

	
  

	
2.1.2

	
Phase II: Validation.

	
  

	
During this phase further evaluation of the platform by practical testing and measurements of performance to ensure that the initial assumptions prove to be valid to meet the needs of the product.

	
  

	
2.1.3

	
Phase III:  Production readiness.    

	
  

	
After the validation, in this phase, the product will be ready to enter into production

This Agreement covers Phase II and Phase III of the project.

	
  

	
2.2

	
Deliverables

The following lists of tasks of development will be covered by NuGen during Phase II and III.   A detailed list of tasks and responsibilities associated with these phases is given in the RASIC chart (Appendix I)

	
  

	
2.2.1

	
Integration: On-site support at M&M’s facilities for initial integration and testing of Infield Service Prototypes.

	
  

	
2.2.2

	
Validation of performance:  Testing and validation of platform performance to compare against original expectations and analysis that was utilized to determine requirements of various components.

	
  

	
2.2.3

	
Training:  Training for M&M personnel.  The Training will consist of basic operation and understanding of the system.

	
  

	 

  

3

  

	
  

	
2.2.4

	
Continued Support: NuGen will assist and help analyze any data accumulated through the testing and validation period and provide recommendations of “Next Step”

	
  

	
2.2.5

	
Support M&M efforts to meet CMVR certification of the vehicle and continued platform testing.

	
  

	
2.2.6

	
Iterate/Modification of design for general form, fit and function.

	
  

	
2.2.7

	
Cost Reduction:  do a full design for manufacturing (DFM) and design for assembly (DFA) analysis bringing the cost of the product down too desired targets in production.

	
  

	
2.2.8

	
Costed BOM:  Assessment of alternative parts, methods and minor design modifications without altering determined requirements will be performed to minimize the BOM count and cost of the DTS drive train.

	
  

	
2.2.9

	
Creation of Production documentation:  This would include BOMs, Testing and QC metrics and processes for this specific product.

	
  

	
2.2.10

	
Manufacturing and assembly of approximately ten (10) systems to validate various iterations and changes to the products through this phase.  It is anticipated that a minimum of five (5) of these units will be able to be provided to M&M for integration and testing on the targeted platform.

	 	
2.2.11

	
Final testing and qualification of said units

	
  

	
2.3

	
Production Systems Verification

	
  

	
2.3.1

	
To complete and verify the DFM/DFA process there will be three stages whereby systems will be manufactured and assembled in stages, to be delivered and utilized for further testing, integration and deployment purposes.

	
  

	
2.3.2

	
Validation Prototype (VP):  25 units will be manufactured and assembled based on the results of the DFM/DFA process.  The units will predominantly be assembled at NuGens facility in the USA.  To meet the target cost per unit for this state it is expected that most of the part content will be provided from selected sources in India and China utilizing tooling and targeted sources for production.

	
  

	
2.3.3

	
Production Proveout (PP):  25 units will be manufactured and assembled based on the results of the DFM/DFA process.  To meet the target costs per unit for this state and to verify the tooling and process to proceed into JOB1 phase, the units are intended to be fully assembled outside USA and validated by NuGen.  It is expected that all tooling will be in place for this stage.

  

4

  

 

	
  

	
2.3.4

	
Production (JOB1):  At least 100 units a month for a period of one (1) year will be provided to M&M by NUGEN for further market testing and evaluation.  All costs are based on a yearly projections of 1200 units

	
  

	
2.3.5

	
The above tasks to acquire completed systems are considered as part of this engagement.  Due to the complexity, timing, potential variation of costs specific details will be decided at a later date.

	
  

	
2.3.6

	
However, in order to meet the target dates of the program the decisions must be taken by the following prescribed dates;

For VP & PP systems:  September 2009      (corrp. with RASIC Line   72)

For JOB1 systems:       January 2010    (corrp. with RASIC Line  83)

As a guide line the present anticipated costs for the systems and timing of the expense are;

	
Production Systems

	 	
Cost/ea.

	 	 	
Tooling

	 	
Time

	  	 	 	 	 	 	 	  
	
25 VP units

	 	$	3,043	 	 	$	85,950	 	
Sept-Jan 2009

	  	 	 	 	 	 	 	 	 	  
	
25 PP units

	 	$	1,138	 	 	$	56,750	 	
Jan-Mar 2010

	  	 	 	 	 	 	 	 	 	  
	
JOB1

	 	$	875	 	 	$	14,270	 	
June 2010-11

Greater detail and explanation of the projected costs can be found in Appendix II

	
  

	
2.4

	
Only the deliverables that have been specifically stated above will be deemed as “Required”.  Should there be any deliverables that are missing and or desired, M&M should verify or communicate this with NuGen.

	
  

	
2.5

	
If any additional technical assistance is required for final integration and or general application use and set-up beyond what has been stated in 2.1, NuGen will make its services available to M&M. NuGen will provide these services above and beyond those specified in the proposal using section 5.5.8 as reference.

  

5

  

 

	
3

	
Time Lines

 

	
  

	
3.1

	
The Phase II and III will extend over a nine (9) month period.

	
  

	
3.2

	
However the Parties may mutually discuss and decide shorter timelines. In that event adjustments and corrections if any, in costs will be made to cover the additional expenses due to such shorter time lines.

3.3

 

	
4

	
Price & Payments

 

	
  

	
4.1

	
Fee

	
  

	
4.1.1

	
Any pricing marked as budgetary or preliminary is to be considered estimates and is not a firm quotation.

	
  

	
4.1.2

	
All prices as shown are in Net US $ and are based on a one time purchase cost with no guarantee or commitment for any further work or development from both parties involved.

	
  

	
4.1.3

	
Should there be interest for further commitment or guarantees, Parties will mutually discuss and arrive at a decision in respect of the same.

	
  

	
4.1.4

	
Prices and delivery of components are F.O.B. NuGen Mobility Inc. in Ashburn, Virginia and do not account for any custom duties, shipping costs and any applicable sales tax locally. These additional costs will be the responsibility of M&M.

	
  

	
4.2

	
Fixed Cost: Phase II and III

	

Pricing

	 	

$/Line

	 
	
NRE – Costs to Company (Labor)

	 	$	567,152	 
	
Development (DFM/DFA) Support Expenses

	 	$	120,000	 
	
Total

	 	$	687,152	 
	  	 	 	 	 
	
Anticipated/Budgetary Travel Related Expenses**

	 	$	39,200	 

	
  

	
4.2.1

	
Lead Time is assumed to be 9 months upon receipt of order and required deposit.  Some variations in schedules may apply due to other requirements and / or timing and availability of M&M’s resources to complete the required tasks

	
  

	
4.2.2

	
* To complete and verify the DFM/DFA process, upto ten DTS systems will be manufactured and assembled in stages, and atleast five will be delivered and utilized for further testing, integration and deployment purposes.

	
  

	
4.2.3

	
** Travel by NuGen personnel to and fro Washington, DC, to India will be billed at actuals and are to be reimbursed to NuGen net US Dollars

  

6

  

	
  

	
4.2.4

	
To keep travel expenses low, it is assumed that NuGen will have access to M&M’s guest house facilities and any local road travel will be provided and picked up by M&M.  All other travel related expenses to and from M&M’s facilities, external of the Mumbai / Nasik area, will be the responsibility of NuGen unless specifically requested and approved by M&M ahead of time.

	
  

	
4.3

	
Purchase Order requirements

A firm purchase order (PO) will be issued to NuGen for the deliverables listed above. The proposed contract is a FIXED COST contract net to NuGen after applicable Indian taxes and could be stated as such in one line item.

	
  

	
4.4

	
Payment Schedule

	
  

	
4.4.1

	
The Payment schedule given below has been tagged to anticipate dates and associated deliverables based on the discussions and assuming commencements on time.

	
  

	
4.4.2

	
In the event commencement of the project does not begin as assumed, the dates as proposed will be modify accordingly.

	
  

	
4.4.3

	
Upon completion of the each milestone NuGen will invoice M&M and it is expected that payment will be made using “Net 15 terms”

	
Sr.

No

	 	
Description

	 	
Anticipated

Date

	 	
Amount 

(USD Net)

	 	 	
Expected

Activity

(appx.

RASIC line)

	 
	1	 	
ARO (35%)

	 	
08 JUNE09

	 	$	240,503	 	 	6	 
	2	 	
Installment 2 (30%)

	 	
09JULY09

	 	$	206,146	 	 	58	 
	3	 	
Installment 3 (15%)

	 	
10 SEPT09

	 	$	103,703	 	 	72	 
	4	 	
Installment 4 (10%)

	 	
05 NOV09

	 	$	68,715	 	 	83	 
	5	 	
Final Payment (10%)

	 	
07 JAN10

	 	$	68,715	 	 	105	 

*Dates:  The dates reflected above are the dates as to when NUGEN must receive funds within its account

** Expected Activity represents the activity that should be substantially completed or significant effort to be applied by said date

 

	
  

	
4.5

	
The decisions and time lines associated with the Project may vary depending on internal schedules and feedback of M&M and NuGen.  The dates stated above are the best “assumed” dates and should not be construed as absolute.

 

  

7

  

	
  

	
4.6

	
In the event that a payment date has elapsed more than 30 days of the expected date, payment for that Deliverable should be considered due and paid accordingly within Net 15 terms, based on the assumption that NuGen has not shown any gross negligence or fraud, and has actively pursue all reasonable commercial efforts to meet the required dates and Deliverables.

	
  

	
4.7

	
M&M at its cost will visit NuGen at its facilities in Virginia, USA for purposes of discussions, training, design iteration and testing of the DTS

	
  

	
4.8

	
Additional Services that are requested and mutually agreed upon between NuGen and M&M that are directly related to this Phase of the Project as defined, but not covered under this Statement of Work, can be provided utilizing the following guidelines;

	
  

	
4.8.1

	
US $ 600 NET per man day

	
  

	
4.8.2

	
Any external expense incurred by NGM for such as but not limited to any approved travel, lodging, materials and external services will be remunerated at a TOTAL NET equivalent to the direct cost plus 10% for handling and processing.

	
  

	
4.9

	
Completion of project is defined as delivery of all physical DTS units, documents as per the RASIC,

	
  

	
4.10

	
Payments can be made via wire transfer to:

	
Bank:

	
Citibank, NA

	
Local Branch:

	
Capitol Hill, BR# 913

	
Local Address:

	
600 Pennsylvania Ave. SE, Washington, DC, 20003 USA

	
Via New York

	
(if necessary for international wires)

	
Account:

	
NuGen Mobility

	
Local Routing No.:

	
2540 -70116

	
Account No.:

	
1532 - 0065

	
Routing:

	
0210-00089

	
SWIFT Code:

	
CITIUS33

 

	
5

	
Intellectual Property Rights

 

	
  

	
5.1

	
Any existing ideas, know-how and patents (and applications thereof) owned by the Parties, prior to this Project,  not resulting from Project work carried out under this Agreement, but introduced into the Project, shall remain each Party’s exclusive property.

	
  

	
5.2

	
Any new ideas, know-how and inventions made by NuGen’s employees specifically as a result of the Project work carried out under this Agreement shall be the joint property of both Parties.  The Parties shall enter into a separate agreement for sharing these joint intellectual property rights which may be generated pursuant to such inventions, development carried out by the NuGen’s employees under the Project under this Agreement.

  

8

  

 

	
  

	
5.3

	
Any ideas, know-how and inventions made by M&M’s employees as a result of the Project work carried out under this Agreement shall be M&M’s exclusive property.

	
  

	
5.4

	
Any drawings and technical documents relating to the Project in any manner submitted by one Party to the other, prior or subsequent to the conclusion of this Agreement, shall remain the exclusive property of the submitting Party and shall be treated as confidential information by the receiving Party, and may be utilised only for Project work performed pursuant to this Agreement.

 

	
6

	
Third Party Patents, Trademarks, Copyright

 

	
  

	
6.1

	
Nugen shall use best efforts to ensure that design features and products designed and developed pursuant to this Agreement will not infringe any intellectual property rights of third parties. For this purpose NuGen shall conduct  patent searches.

	
  

	
6.2

	
In the event a design feature or the normal intended use of a product leads to a claim alleging infringement of a third party's intellectual property right, M&M shall give NuGen  immediate notice in writing of any such claim. NuGen shall assist M&M in the defence of any such claims. If the use of a design feature or a product is permanently enjoined by reason of an infringement of a valid third party’s intellectual property right, NuGen will use its best efforts

	
  

	
6.2.1

	
to modify the design feature or the product to render it non infringing, or

	
  

	
6.2.2

	
to get a licence from the third party who is the owner of the intellectual property right.

 

	
7

	
Warranty

 

	
  

	
7.1

	
NuGen warrants that it will execute the Project in a professional and competent manner according to state of the art. The Project and Deliverables to be supplied pursuant to this Agreement will be in compliant with Indian laws and standard practice in the electric drive system and vehicle industry, standards, and regulations as well as with those regulations in countries pertinent to M&M’s purposes to the extent they have been communicated in writing to and accepted by NuGen.

	
  

	
7.2

	
The Documentation rendered pursuant to this Agreement will be according to the existing general practice for comparable development projects in the electric drive system and vehicle industry.

	
  

	
7.3

	
M&M shall examine Project work and the Deliverables provided under this Agreement upon receipt and shall notify NuGen in writing of any defect within reasonable delay but not more than 15 (fifteen) working days.

  

9

  

 

	
8

	
Liability

 

	
  

	
8.1

	
NuGen shall be liable for damages only if it is held responsible for intent or gross negligence. Any liability for indirect and/or consequential damages, including loss of property or profit, is specifically disclaimed. Unless claims are made in writing within 6 (six) months from the date of occurrence of the damage, but not later than two years from the date of delivery, they  shall be forfeited.

 

	
9

	
Confidentiality

 

	
  

	
9.1

	
The Parties are obliged

	
  

	
9.1.1

	
not to disclose the nature, extent and objective of this Agreement to any other   party,

	
  

	
9.1.2

	
to keep all technical and other information (such as business secrets etc.) received from the other Party under this Agreement strictly confidential,

	
  

	
9.1.3

	
not to disclose or convey any such confidential information to any third party without the prior written consent of the  disclosing Party.

	
  

	
9.2

	
The confidentiality obligations under this Article shall not apply to information which

	
  

	
9.2.1

	
was already in possession of one Party and not presently subject to an obligation of confidentiality prior to its receipt from the other Party; or

	
  

	
9.2.2

	
becomes available to the general public through no fault of either Party; or

	
  

	
9.2.3

	
is rightfully disclosed to either M&M or NuGen by a third party without a present obligation of confidentiality; or

	
  

	
9.2.4

	
is explicitly approved for release by prior written authorisation of M&M and NuGen.

	
  

	
9.2.5

	
The confidentiality obligations under this clause shall not be affected by the termination of this Agreement and shall continue in full force and effect for a period of 3 (three) years after termination of this Agreement.

	
  

	
9.3

	
In addition a Non-Disclosure Agreement will have to be signed and ratified between NuGen and M&M so all variations and possibilities of incorporating newer technology may be shared openly with M&M. A copy of NuGen’s standard NDA has been included as an attachment in Appendix IV

  

10

  

 

	
10

	
Force Majeure

 

	
  

	
10.1

	
Should circumstances such as fire, flood, earthquake, military actions, trade embargo, etc. (force majeure) occur which are beyond the control of either contracting Party preventing fulfilment of their obligations of this Agreement, the time stipulated for the fulfilment of such obligations shall be postponed for the period equal to that during which the circumstances of force majeure last.

	
  

	
10.2

	
If circumstances of force majeure, as defined above, occur at an appointed Supplier on whom NuGen or M&M is dependent for the fulfilment of the Project this will also constitute force majeure conditions for NuGen or M&M.

	
  

	
10.3

	
These obligations are subject to immediate fulfilment after the cessation of the circumstances of force majeure.

 

	
  

	
10.4

	
A certificate issued by a Chamber of Commerce or another authority of competence of the respective country confirming the existence and cessation of the circumstances of force majeure will serve as proof to that effect.

	
  

	
10.5

	
Should the circumstances of force majeure continue for more than six months, either Party may terminate this Agreement by giving written notice by registered letter to the other Party.  Such termination will take effect 30 days from the receipt of the notice.

 

	
11

	
Solvency, Liability and Complete Performance

 

	
11.1

	
In case of any eventuality leading to cessation of activity at NuGen (for reasons including but not limited to bankruptcy), M&M will have the right to enforce NuGen and Eric Takamura jointly and individually for complete performance of the deliverables as defined under this contract at the same terms and conditions(including cost and timelines) mentioned in the contract.

	
 11.2 

	
NuGen will release its employees from their non-compete clause to complete the deliveries  defined  and stated under this contract without any restrictions whatsoever.

 

	
11.3

	
In  the above situation, all  the  performances  of  parts  there of  which have already been fulfilled by NuGen according to the deliverables of the contract till  the  date of filing of the bankruptcy shall be settled and paid according to the contractual provision.

 

	
12

	
Premature Termination of the Agreement

 

	
  

	
12.1

	
Either Party may immediately terminate this Agreement by giving written notice by registered letter to the other Party if any of the following occurs:

  

11

  

	
  

	
12.1.1

	
bankruptcy proceeding is instituted against either Party's assets, or such proceeding is not instituted because of insufficient assets;

	
  

	
12.1.2

	
such other Party materially breaches this Agreement and fails to remedy such breach within 60 days after written notice is given.

	
  

	
12.2

	
In addition to the circumstances set forth in Clause 11.1 M&M may terminate this Agreement at any time by giving NuGen 30 Days prior written notice by registered letter and remittance of any outstanding invoices or expenses incurred as a result of the project till the date of receiving notice by NuGen

 

	
13

	
Assignment and Subcontracting

 

	
  

	
13.1

	
Neither M&M nor NuGen shall assign or transfer to a third party any of its rights or obligations under this Agreement, neither in whole nor in part.

	
  

	
13.2

	
The Parties may employ subcontractors to such an extent that enables them to carry out their obligations under this Agreement and only for those parts of work which are customarily performed by the Parties’ respective subcontractors within similar projects.

 

	
14

	
Applicable Law and Arbitration

 

	
  

	
14.1

	
This Agreement shall be construed and interpreted according to the Indian Law

	
  

	
14.2

	
All disputes arising out of or in connection with this Agreement shall be submitted to arbitration in under the (Indian) Arbitration and Conciliation Act 1996. The arbitration decision shall be final and binding on the Parties without further recourse to courts of ordinary jurisdiction. The venue of arbitration shall be Mumbai, India. The arbitration procedure shall be in English.

 

	
15

	
Notices

 

	
  

	
15.1

	
Any notice or other information required or authorized by this Agreement to be given by either Party to other may be given by hand or sent by registered post A.D. by courier or by facsimile transmission or comparable means of communication, to the other Party at the following address:

To  M&M

Mahindra & Mahindra Ltd

Automotive Sector

Akurli Rd.,

Mumbai 400101, INDIA

Attention: Mr. Rajan Wadhera

Chief of Engineering & Development

 

e-mail: wadhera.rajan@mahindra.com

Fax:       (022) 28864211

  

12

  

 

To Nu Gen

Eric Takamura

NuGen Mobility Inc

44645 Guilford Drive, Suite 201

Ashburn, Virginia 20147, USA

 

e-mail: eric.takamura@ngmcorp.com

Fax: 703-858-0699

	
  

	
15.2

	
Any notice or other information given by post or courier shall be deemed to have been given on the tenth (10th) day after the envelope containing the same was so posted, or on the fifth (5th) day after the envelope containing the same was so sent by courier, and proof that the envelope containing any such notice or information was properly addressed, registered and posted or sent by courier and that it has not been so returned to the sender, shall be sufficient evidence that such notice or information has been duly given.

	
  

	
15.3

	
Any notice or other information sent by facsimile transmission or comparable means of communication should be deemed to have been duly given on the next day after transmission. A written confirmation to that effect shall be sent by post as mentioned hereinabove.

	
  

	
15.4

	
Service and any legal proceedings concerning or arising out of this Agreement shall be effected by causing the same to be delivered to the Party to be served at its registered office, or to such other address as may from time to time be notified in writing by the Party concerned.

 

	
16

	
Validity and Duration of Agreement

 

	
  

	
16.1

	
This Agreement will become valid and come into force on June 9, 2009 (Effective Date).

	
  

	
16.2

	
The duration of this Agreement will be 30 months from Effective Date on the condition that all Project work described in Clause 2 has been completed by NuGen  and all payments have been made by M&M and shall expire without notice of termination. An extension of the duration will automatically occur if the aforementioned two conditions (completion of Work and payment) are not met within the 30 months period until such conditions are fulfilled.

	
  

	
16.3

	
Those provisions of this Agreement which by their nature should survive termination or expiration shall remain in effect in the event of such termination or expiration. These provisions include, but are not limited to Clauses  5, 6, 9, and 13.

 

  

13

  

 

	
17

	
Amendments

 

	
  

	
17.1

	
This Agreement constitutes the entire Agreement between the Parties and supersedes any prior agreements or understandings, whether oral or written. No  amendments  or  changes  to  this Agreement shall be binding unless made in writing and signed by duly authorised officers of M&M and NuGen.

 

	
18

	
Invalid Provisions

 

	
  

	
18.1

	
If any provision of this Agreement shall be invalid or unenforceable, it shall be considered deleted here from and the remainder of this Agreement shall be unaffected and shall continue in full force and effect. In lieu of such invalid or unenforceable provision, there will be added automatically, as part of this Agreement, a valid and enforceable provision as similar in terms to such invalid or unenforceable provision as may be possible.

 

	
19

	
Appendices

 

	
  

	
19.1

	
All parts of this Agreement are equally binding on NuGen and M&M. However, in the event of a discrepancy or conflict in the interpretation of any part of the contractual terms and conditions and any of the appendices, the contractual terms and conditions shall prevail.

	
For & on behalf of M&M :

	 	
For & on behalf of  NuGen Mobility:

	  	 	  
	
Rajaj Wadhera

	 	
Eric Takamura

	
Chief of Engg. & Development

	 	
  CEO / President

	  	 	  
	
/s/Rajaj Wadhera

	   	
/s/Eric Takamura

	  	 	  
	
Date: 9/06/09

	 	
Date: 9/06/09

	
For & on behalf of Eric Takamura

	  
	
As an individual

	  
	  	  
	
/s/  Eric Takamura

	  
	
Date: 9 / Jun / 09

	  

 

  

14

  

 

Annexure I

 

RASIC 

R – Responsible; A – Approve; S; - Support I; - Information; C - Consult

	
Tasks

	  	
NuGen

	  	
M&M

	  	
Vendor

	  	
Notes

	
1

	
Integration Support

	  	
C,S

	  	
A , R

	  	  	  	  
	
2

	
Base Line integration at M&M as provided by NuGen PHI

	  	
C,S

	  	
A , R

	  	  	  	  
	
3

	
Near Term modifications of placement or wiring based on "Quick Insight"

	  	
C,S

	  	
A , R

	  	  	  	  
	
4

	
Testing & Validation

	  	  	  	  	  	  	  	  
	
5

	
Tests:  Range, Gradeability, Acceleration

	  	
C,S

	  	
A, R

	  	  	  	  
	
6

	
Training

	  	  	  	  	  	  	  	  
	
7

	
"Concepts":  What matters, Things to watch out for in an EV

	  	
C, I, S

	  	
A, R

	  	  	  	  
	
8

	
"Good Habits" - conceptual on connectivity of components

	  	
C, I, S

	  	
A, R

	  	  	  	  
	
9

	
Vehicle Operation - "Driver’s Perspective"

	  	
A, R

	  	
S

	  	  	  	  
	
10

	
Level I use of NuGen VCM440 Utility:  Setup of vehicle, throttle, brake, switch configuration

	  	
A, R

	  	  	  	  	  	  
	
11

	
Continued Support

	  	  	  	  	  	  	  	  
	
12

	
Analyze Vehicle Level data

	  	
C,S

	  	
A, R

	  	  	  	  
	
13

	
Analyze DTS Level data

	  	
R

	  	
A, S

	  	  	  	  
	
14

	
Conceptual Layout & Modifications of platform and components

	  	
C,S

	  	
A, R

	  	  	  	  
	
15

	
Consider Integration of "current sensing" into controller

	  	  	  	  	  	  	  	  
	
16

	
Modify thermal loading or profiles

	  	  	  	  	  	  	  	  
	
17

	
Consider a higher integrated battery box

	  	  	  	  	  	  	  	  
	
18

	
Support M&M efforts to;

	  	  	  	  	  	  	  	  
	
19

	
Verify and validate that vehicle meets AIS standards.

	  	
C,S

	  	
A, R

	  	  	  	  
	
20

	
CMVR  certification of vehicle

	  	
C,S

	  	
A, R

	  	  	  	  
	
21

	
Continued platform testing:

	  	  	  	  	  	  	  	  
	
22

	
Technical Performance – Gradeability, Acceleration, Top speed, Range

	  	
C,S

	  	
A, R

	  	  	  	  
	
23

	
“Drivability and Feel” -

	  	
C,S

	  	
A, R

	  	  	  	  
	
24

	
Accelerator and Braking sensitivity.  Feed back of system status, Ride and general driving characteristics

	  	
C,S

	  	
A, R

	  	  	  	  
	
25

	
Additional Training of M&M personnel - capability of continued adjustments and characterization of platform

	  	
C,S

	  	
A, R

	  	  	  	  
	
26

	
Level 2 - NuGen VCM440 Utility:  Battery parameters - SOC, Engine braking

	  	
R

	  	  	  	  	  	  
	
27

	
Level 3 - NuGen VCM440 Utility:  Data logging and primary parameters and information to look at

	  	
R

	  	  	  	  	  	  
	
28

	
Interaction and feed back within M&M

	  	
C,S

	  	
A, R

	  	  	  	  
	
29

	
Marketing

	  	  	  	  	  	  	  	  

 

  

15

  

	
Tasks

	  	
NuGen

	  	
M&M

	  	
Vendor

	  	
Notes

	
30

	
Performance, Range, Features ( Too little, OK, Too Much)

	  	
C,S

	  	
A, R

	  	  	  	  
	
31

	
DTS - Impact study on cost and components based on Feedback

	  	
R

	  	
A, S

	  	  	  	  
	
32

	
Platform - Impact study on cost and components based on Feedback

	  	
S

	  	
A, R

	  	  	  	  
	
33

	
Production

	  	  	  	  	  	  	  	  
	
34

	
Modifications to BASE platform - (Acceptable / Not Acceptable, desired Modifications)

	  	
C,S

	  	
A, R

	  	  	  	  
	
35

	
Selection of Components, (suspension, transmission, brakes)

	  	  	  	
A, R

	  	  	  	  
	
36

	
Impact study on cost and components based on Feedback

	  	
C,S

	  	
A, R

	  	  	  	  
	
37

	
Define and set-up final Production Requirements for DFM/DFA (Phase III)

	  	
C,S

	  	
A, R

	  	  	  	  
	
38

	
Collate Information and Finalize Physical Requirements Documents

	  	  	  	
A, R

	  	  	  	  
	
39

	
Platform Related

	  	  	  	
A, R

	  	  	  	  
	
40

	
DTS - Related

	  	
C, R

	  	
A

	  	  	  	  
	
41

	
Collate Information and Finalise Functional Requirement Documents

	  	
C,S

	  	
A,R

	  	  	  	  
	
42

	
Platform Related - Parts

	  	  	  	
A, R

	  	  	  	  
	
43

	
Architecture / Wiring

	  	
C,S

	  	
A, R

	  	  	  	  
	
44

	
DTS - Related (e.g. Thermal considerations and ambient temps of perf)

	  	
C, R

	  	
A, S

	  	  	  	  
	
45

	
Iterate/Modification of design for form, fit and function.

	  	  	  	  	  	  	  	  
	
46

	
Implement agreed upon changes based on New Requirment documents from Phase II

	  	
A, R

	  	
S

	  	  	  	  
	
47

	
Two-Speed Transmission

	  	
I

	  	
A, R

	  	
I, R?

	  	  
	
48

	
Modify Instrument Display for VCM

	  	
I, C

	  	
A, S

	  	
R

	  	  
	
49

	
Integration of Motor & Controller

	  	
A, R

	  	
S

	  	  	  	
[1]

	
50

	
Insert Current Sharing in Controller

	  	
A, R

	  	
 S

	  	  	  	
[1]

	
51

	
Battery Box Integration

	  	
I, S

	  	
A, R

	  	
I, R?

	  	  
	
52

	
Modify based on agreed upon changes for performance

	  	
A

	  	
S

	  	  	  	  
	
53

	
Reduce size of thermal area for less performance at lower ambient

	  	
A, R

	  	
S

	  	  	  	
[1]

	
54

	
Bearing Arrangements of Motor

	  	
A, S

	  	
R

	  	  	  	  
	
55

	
Can number of power devices in controller be reduced

	  	
A, R

	  	
S

	  	  	  	
[1]

	
56

	
Cost Reduction

	  	  	  	  	  	  	  	  
	
57

	
DFM & DFA Analysis 1

	  	  	  	  	  	  	  	  
	
58

	
BOM Analysis

	  	  	  	  	  	  	  	  
	
59

	
In-depth cost analysis of production as design Exists

	  	
A, R

	  	
C, S

	  	
I

	  	  
	
60

	
Highlight "High Cost components" - Part selected, Quantity

	  	
A, R

	  	
C, S

	  	
I

	  	  
	
61

	
Trade-off matrix: Alternative Parts & Qty vs. Performance

	  	
A, R

	  	
C, S

	  	  	  	  
	
62

	
Method of Manufacturing & Processes

	  	  	  	  	  	  	  	  

  

16

  

	
Tasks

	  	
NuGen

	  	
M&M

	  	
Vendor

	  	
Notes

	
63

	
Mechanical Based Items such as castings

	  	
A, S

	  	
R

	  	
I

	  	  
	
64

	
Electrical Based Items such as PCBs & Circuits

	  	
A, R

	  	
S

	  	
I

	  	  
	
65

	
Tradeoff matrix: Method and configuration vs. Performance

	  	
A, R

	  	
C, S

	  	  	  	  
	
66

	
Design Iteration 1

	  	  	  	  	  	  	  	  
	
67

	
Overall control of design

	  	
A, R

	  	
C, S

	  	  	  	  
	
68

	
Implement, perform and do design modifications

	  	  	  	  	  	  	  	  
	
69

	
Mechanical including FEA/ Thermal analysis

	  	
C, S

	  	
A, R

	  	  	  	  
	
70

	
Electrical/ Electronics

	  	
A, R

	  	
C, S

	  	  	  	  
	
71

	
Vehicle Interface and integration

	  	
A, C

	  	
R, S

	  	  	  	  
	
72

	
Manufacture Prototype (Lot 1) based on new designs (EP)

	  	
A, R

	  	
C, S

	  	  	  	  
	
73

	
Mechanical Parts

	  	
A, S

	  	
R

	  	  	  	  
	
74

	
Electrical Parts (PWB's, PCB,s)

	  	
A, R

	  	
S

	  	  	  	  
	
75

	
Assembly of Prototypes Lot 1 (~3-5 units)

	  	
A, R

	  	  	  	  	  	
May be

scrapped

	
76

	
Bench Testing and Evaluation

	  	
A, R

	  	  	  	  	  	  
	
77

	
Testing on Platform

	  	
C, S

	  	
A, R

	  	  	  	  
	
78

	
Design Iteration based on feedback from Lot 1

	  	  	  	  	  	  	  	  
	
79

	
DFM & DFA Analysis 2

	  	  	  	  	  	  	  	  
	
80

	
BOM Analysis

	  	
A, R

	  	
C, S

	  	
I

	  	  
	
81

	
Manufacturing Process Analysis

	  	
A, R

	  	
C, S

	  	
I

	  	  
	
82

	
Assessment of Targets and Goals

	  	
C, S

	  	
A, R

	  	  	  	  
	
83

	
Manufacture Prototype (Lot 2) based on final designs (PP)

	  	
A, R

	  	
C, S

	  	  	  	  
	
84

	
Mechanical Parts

	  	
A, S

	  	
R

	  	  	  	  
	
89

	
Electrical Parts (PWB's, PCB,s)

	  	
A, R

	  	
S

	  	  	  	  
	
90

	
Assembly of Prototypes (5 units)

	  	
A, R

	  	  	  	  	  	  
	
91

	
Bench Testing and Evaluation

	  	
A, R

	  	  	  	  	  	  
	
92

	
Testing on Platform

	  	
C, S

	  	
A, R

	  	  	  	  
	
93

	
Life Cycle Testing

	  	
C, S

	  	
A, R

	  	  	  	  
	
94

	
Delivery to M&M for vehicle integration

	  	
C, R

	  	
A, S

	  	  	  	  
	
95

	
Vehicle Integration (EP 2)

	  	
A,S

	  	
C,R

	  	  	  	  
	
96

	
Final Documentation – Collation and hand over to M&M

	  	
C, R

	  	
A, S

	  	  	  	  
	
97

	
System model & simulation

	  	
A, R

	  	
C, S

	  	  	  	  
	
98

	
Solid models

	  	
A, R

	  	
C, S

	  	  	  	  
	
99

	
Drawings

	  	
A, R

	  	
C, S

	  	  	  	  
	
100

	
Design notes

	  	
A, R

	  	
C, S

	  	  	  	  
	
101

	
BOM

	  	
A, R

	  	
C, S

	  	  	  	  
	
102

	
Bought out component specification and source

	  	
A, R

	  	
C, S

	  	  	  	  
	
103

	
Production system Verification Stage (VP/PP)

	  	  	  	  	  	  	  	  
	
104

	
Delivery of 25 EP Systems

	  	
A,R

	  	
C,S

	  	  	  	  
	
105

	
Integration, Testing and release of EP Platforms

	  	
C, S

	  	
A, R

	  	  	  	  
	
105

	
Delivery of 25 PP Systems

	  	
A,R

	  	
C,S

	  	  	  	  

 

  

17

  

	
Tasks

	  	
NuGen

	  	
M&M

	  	
Vendor

	  	
Notes

	
106

	
Integration, Testing and release of PP Platforms

	  	
C, S

	  	
A, R

	  	  	  	  
	
107

	
Field support of EP/PP platforms (upto as in Agreement)

	  	
C, S

	  	
A, R

	  	  	  	  

 

  

18

  

Appendix II

 

DTS Unit Costs & Tooling Costs

 

	
Anticipated Quantities

	 	
DATE

	 	
Product

State

	 	 	
Projected unit

cost ($)

	 	 	
Tooling ($)

	 	 	
$/unit w-tooling

amortization

	 
	
10 Units for DFM/DFA support & verification

	 	
June - Sept 2009

	 	
C-EP

	 	 	$	10,517	 	 	$	14,550	 	 	$	11,972.07	 
	
50 units

	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
25 units EP

	 	
Sept-Jan 2009

	 	
EP

	 	 	$	3,043	 	 	$	85,950	 	 	$	6,481.24	 
	
*       25 units PP

	 	
Jan. - Mar. 2010

	 	
PP

	 	 	$	1,138	 	 	$	56,750	 	 	$	3,407.50	 
	
* 100 units per month for 1 year

	 	
June 2010 - June 2011

	 	
JOB1

	 	 	$	875	 	 	$	14,270	 	 	$	886.89	 
	
* Price based on commiment of full JOB1 by SEPT 2009

	 	  	 	 	 	 	
Sub-Total

	 	 	$	171,520	 	 	 	 	 
	  	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
TOOLING & ASSEMBLY NOTES

	 	  	 	
qty

	 	 	
$/ea

	 	 	
Extended

	 	 	 	 	 
	
[1] - Based on Manufacturing and Assembled  in USA

	 	
Stencils

	 	 	6	 	 	$	500	 	 	$	3,000	 	 	
Iteration 1&2: Addressing known/found issues

	 
	
** Potential to get part supply support from India and reduce per unit costs

	 	
Solder masks

	 	 	6	 	 	$	200	 	 	$	1,200	 	 	
Iteration 1&2

	 
	  	 	
Stamp Tool

	 	 	1	 	 	$	1,500	 	 	$	1,500	 	 	
Punch

	 
	  	 	
Machining Fixtures

	 	 	2	 	 	$	1,000	 	 	$	2,000	 	 	
Stator, Cases

	 
	  	 	
Soft Tool Coils

	 	 	1	 	 	$	350	 	 	$	350	 	 	 	 	 
	  	 	
Rotor assembly fixture

	 	 	1	 	 	$	500	 	 	$	500	 	 	 	 	 
	  	 	
Copper Tooling (Bus bars)

	 	 	4	 	 	$	1,500	 	 	$	6,000	 	 	 	 	 
	  	 	  	 	 	 	 	 	 	 	 	 	$	14,550	 	 	 	 	 
	
[2] - Assembled in USA - Most parts from intended manufacturing processes from India and/or China

	 	
Stencils

	 	 	6	 	 	$	500	 	 	$	3,000	 	 	
Iteration 3: Final Layout

	 
	  	 	
Solder masks

	 	 	6	 	 	$	200	 	 	$	1,200	 	 	
Iteration 3:

	 
	  	 	
Castings

	 	 	4	 	 	$	15,000	 	 	$	60,000	 	 	
2x motor, 2x controller

	 
	  	 	
stamping/press

	 	 	1	 	 	$	750	 	 	$	750	 	 	
Motor (vane)

	 
	  	 	
Copper Tooling (Bus bars)

	 	 	4	 	 	$	1,500	 	 	$	6,000	 	 	 	 	 
	  	 	
Molds

	 	 	3	 	 	$	500	 	 	$	1,500	 	 	
Motor phase, Controller phase & Bat

	 
	  	 	
Assembly jigs

	 	 	3	 	 	$	1,000	 	 	$	3,000	 	 	
Stator 2x, rotor

	 
	  	 	
Misc. Go No-Go Gages

	 	 	2	 	 	$	1,500	 	 	$	3,000	 	 	
Motor 1x, 4x controller

	 
	  	 	
Test fixtures

	 	 	5	 	 	$	1,500	 	 	$	7,500	 	 	
Motor 1x, 4x controller

	 
	  	 	  	 	 	 	 	 	 	 	 	 	$	85,950	 	 	 	 	 
	
[3]  - Predominantly Manufactured in China under NuGen with Final Assembly/top level testing in India

	 	
Stencils

	 	 	3	 	 	$	500	 	 	$	1,500	 	 	
Iteration 4: Correction of errors

	 
	  	 	
Solder masks

	 	 	3	 	 	$	200	 	 	$	600	 	 	
Iteration 4:

	 
	  	 	
Castings

	 	 	2	 	 	$	15,000	 	 	$	30,000	 	 	
Motor (doghouse) & or add-ons and mods

	 
	  	 	
Forging

	 	 	2	 	 	$	5,000	 	 	$	10,000	 	 	
rotor, shaft

	 
	  	 	
stamping/press

	 	 	9	 	 	$	750	 	 	$	6,750	 	 	
Motor (vane, phase leads), Controller ( 4x bus bars)

	 
	  	 	
Molds

	 	 	3	 	 	$	500	 	 	$	1,500	 	 	
Motor phase, Controller phase & Bat

	 
	  	 	
Assembly jigs

	 	 	1	 	 	$	1,000	 	 	$	1,000	 	 	 	 	 
	  	 	
Misc. Go No-Go Gages

	 	 	3	 	 	$	1,500	 	 	$	4,500	 	 	
Motor 1x, 4x controller

	 
	  	 	
Test fixtures

	 	 	2	 	 	$	1,500	 	 	$	3,000	 	 	
2x Controller

	 
	 	 	 	 	 	 	 	 	 	 	 	 	$ 	
56,750

	 	 	 	 

 

  

19

  

 

Appendix III

 

Anticipated Travel Costs

 

	
Description

	 	
Avg. Est. $/ea.

	 	 	
Qty

	 	 	
Extended

	 	
Notes:

	
TRAVEL

	 	 	 	 	 	 	 	 	 	  
	
Travel to India (Mngmt)

	 	
2000

	 	 	 	8	 	 	$	16,000.00	 	
On average 2 every 3 months

	
Travel to India (tech.)

	 	
2000

	 	 	 	6	 	 	$	12,000.00	 	
2 people per trip, 3 criticals

	
Travel to India/Manuf (QC / Process)

	 	
2000

	 	 	 	2	 	 	$	4,000.00	 	
On average 1 every 3 months

	
Travel to vendors/sources

	 	2600	 	 	 	2	 	 	$	5,200.00	 	
To vendors for spms plus MI&E

	
Misc. Domestic

	 	500	 	 	 	4	 	 	$	2,000.00	 	
Vendors & subs

	  	 	 	 	 	 	 	 	 	$	39,200.00	 	  

  

20

  

 

Appendix IV

 

NON-DISCLOSURE AGREEMENT

Nugen Mobility, Inc.

44645 Guilford Drive – Suite 201

Ashburn, Virginia 20147 – USA

Tel: (703) 858-0036

Fax: (703) 858-0699

THIS AGREEMENT, by and between NuGen Mobility, Inc. and M&M, shall have an effective date of ____, 2009.

WITNESSETH

WHEREAS, the parties are desirous of exchanging information relative to the information and data relative to Electric Motor, Motor Controller and Aspects of Motor Controls design, development and production, and in the performance of contracts between the paries with regard thereto.

WHEREAS,  one  party  (OWNER)  may  disclose  to  the  other  party  (RECIPIENT) certain information pursuant to this Agreement which the owner deems CONFIDENTIAL or PROPRIETARY.

NOW, THEREFORE, for and in consideration of the promises and mutual covenants herein set forth, and other vauable consideration, the receipt and sufficiency of which is hereby acknowledged, theparties hereto agree as follows:

1. For a period of ten (10) years from the time of receipt, RECIPIENT: (i) shall not disclose any information it receives from OWNER that is marked CONFIDENTIAL  or PROPRIETARY  (or comparable legend) or which OWNER has otherwise indicated in writing to  RECIPIENT is  CONFIDENTIAL or  PROPRIETARY to anyone, including any other  individual,  person, firm or corporation;  provided, however the  RECIPIENT will restrict access to  CONFIDENTIAL or PROPRIETARY information to such of its directors, officers, shareholders, members, employees, contractors, affiliates, representatives, advisors or  agents whose access is reasonably  necessary  for the  purpose of  exchanging such information pursuant to this Agreement; (ii shall not use the information for its own benefit except as provided herein; and shall use the same  degree of care to avoid disclosure or use of such information as RECIPIENT employs with respect to its own confidential or proprietary information of like importance. Each person who receives CONFIDENTIAL or PROPRIETARY infomation as permitted by this Agreement, shall be informed by  RECIPIENT of its  CONFIDENTIAL or  PROPRIETARY nature, shall be directed to  treat such information confidentially, shall agree to abide by the  provisions of this Agreement and shall be bound by the provisions and obligations of this Agreement.

  

21

  

	
2.

	
Information shall not be deemed CONFIDENTIAL or PROPRIETARY and RECIPIENT shall have no obligation with respect to such information which: is or becomes part of the public domain without a breach of this Agreement by the RECIPIENT:

	 	
a)

	
was at the time of receipt otherwise known to the RECIPIENT as evidenced by written records or other writing in existence  prior to the   time of receipt and kept in the  ordinary course of business by the RECIPIENT or by actual proof of use by the RECIPIENT prior to the disclosure by the OWNER;

	 	
b)

	
subsequently is developed, independently or without reference to or use of the CONFIDENTIAL or PROPRIETARY information, by an employee of the  RECIPIENT to whom said information was not divulged either directly or indirctly by the RECIPIENT;

	 	
e)

	
becomes known or available to the RECIPIENT from a party or parties other than the OWNER without a breach of this Agreement by the RECIPIENT, provided that to the RECIPIENT’s knowledge after reasonable inquiry, such party is not and was not bound by a duty of confidentiality to OWNER regarding the CONFIDENTIAL or PROPRIETARY information; or

	 	
f)

	
is disclosed in accordance with the written approval of the OWNER.

	
3.

	
In the event tat the RECIPIENT is legally compelled, by subpoena, deposition, interrogatories, request for production of documents, court or administrative order, civil investigative demand or otherwise to disclose any CONFIDENTIAL or PROPRIETARY, the RECIPIENT shall provide OWNER with prompt written notice of such requirement or request so that OWNER may seek a protective order, other appropriate remedy and/or waive of compliance with the terms of this Agreement. If such protective order or other remedy is not obtained or if such a waiver is provided, RECIPIENT agrees to furnish only that portion of the CONFIDENIAL or PROPRIETARY information which it is legally required to furnish and to exercise best efforts to obtain confidential treatment of such CONFIDENTIAL or PROPRIETARY information.

	
4.

	
Each party respectively appoints the below identified person as its Data Control Coordinator for the receipt and dispatch, on its behalf, of all CONFIDENTIAL or PROPRIETARY information it receives from or discloses to the other party pursuant to this Agreement. Each party reserves the right to change its Data Control coordinator by giving the other party notice in writing of the name and address of its newly appointed Data Control Coordinator.

On behalf of NuGen Mobility,

Eric Takamura,   44645, Guilford Drive,Suite 201

Ashburn, Virginia 20147

On behalf of Mahindra and Mahindra Ltd

Rajan Wadhera, Head of Engineering and Development

  

22

  

	
5.

	
In the event CONFIDENTIAL or PROPRIETARY information is orally disclosed, the OWNER thereof agrees to notify RECIPIENT of such oral  disclosure, and reduce same to writing or other tangible media within thirty (30) days of such oral disclosure, referencing the place and date thereof, and the names of employees of RECIPIENT to whom such oral disclosure was made.

	
6.

	
All tangible information delivered hereunder whether written or in any other tangible media shall be and remain the property of OWNER and all such information, and any copies thereof, shall be promptly returned to OWNER upon written request, or destroyed at OWNER’s option.

	
7.

	
In the event any information disclosed hereunder bears a Military Security Classification, the provisions of the Department of Defense Industrial Security for Safeguarding Classified Information shall be appropriately complied with by each party, provided, however, that the RECIPIENT shall provide the OWNER evidence of its security clearance and the level thereof before receiving any classified information.

	
8.

	
There are no understandings, agreements or representations expressed or implied, which are not specified herein.  This Agreement may not be amended except in writing signed by duly authorized representatives of both parties hereto.

	
9.

	
The parties hereto agree that this Agreement shall be governed for all purposes by the law of the Commonwealth of Virginia.

	
10.

	
Nothing contained in this Agreement shall be construed as granting of conferring any rights whatsoever to or upon the  RECIPIENT by license of otherwise, expressly, implicitly,  or otherwise, for any patent, issued or pending, invention, discovery, improvement, trade secret, or any other intellectual property, owned or controlled, made, conceived, or acquired, prior to or after the date of this Agreement.

	
11.

	
This Agreement may be executed in counterparts, each of which is an original and both of which , taken together, constitutes a single instrument.

	
12.

	
This Agreement  shall be  binding upon and  inure to the benefit of the parties hereto and their successors and assigns. Notwithstanding the  foregoing, neither  party  shall assign any of its rights or obligations hereunder without the written consent of the other party.

	
13.

	
Either party may terminate this Agreement prospectively, by written notice to the other party at the address indicated at the beginning of this Agreement, or at such other address as a party may y notice hereafter specify, without liability to the other party. In no event shall termination of this Agreement affect obligations under this Agreement already in effect. This Agreement shall terminate two years after the date of this Agreement. Notwithstanding such termination, the obligations of each of the parties concerning nondisclosure in this Agreement shall terminate five (5) years following receipt of the CONFIDENTIAL or PROPRIETARY information.

	
14.

	
If any provision of this Agreement is found unreasonable or unenforceable by a court or competent jurisdiction, that provision shall be severed therefrom to the extent consistent with the overall meaning hereof, and the remainder of this Agreement shall continue in effect.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representative as of the Effective Date hereof.

  

23

  

	
For NuGen Mobility Inc

	  
	
By: 

	
Eric Takamura

	  
	
/s/Eric Takamura

	  
	Title:  	
President

	  
	
Date: 9/ June / 09

	  
	
For Mahindra and Mahindra Ltd

	  
	By:  	/s/Rajan Wadhera
	  
	
Title: EVP, Head of Engineering & Development

	  
	
Date:  09/06/09

  

24

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