Document:

exh102.htm

 

 

Exhibit 10.2 

AEDC Dealer Agreement 

THIS AGREEMENT is made this 20th day of July, 2009 by and between Alternative Energy Development Corporation a Nevada Corporation with its principal place of business at 17505 N 79th Ave Suite #309 Glendale, AZ 85308 (hereinafter referred to as “Company”)
and Dandy Enterprise LLC with its principal place of business at 2340 Charles Ave. St. Paul Minnesota 55114 (hereafter referred to as “Dealer”). 

 

BACKGROUND 

 

The Company is engaged in the development and marketing of E-3 FUEL SAVER® integrated vehicle Fuel Conservation Equipment (as hereinafter defined), along with various Products, as hereinafter defined. Dealer has requested the right to resell such Products to its customers. 

 

 

IN CONSIDERATION of the premises, the mutual covenants of the parties, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, Company and Dealer hereby agree as follows: 

1. Definitions 

The following words shall have the following meanings when used in this Agreement: 

1.1 “Prices” shall mean company’s then-current prices for Products as may be provided by Company to Dealer and its customers, and as initially set forth in  Schedule A, "Price List" attached hereto.

1.2 "Proprietary Information” shall mean all ideas and concepts relating to company’s  equipment, computer software, marketing, implementation and designs for company’s software, and other technologies including, without limitation, patents,  trade secrets, plans,    specifications, copyrights, service marks, trademarks, source code,
object code and marketing plans. 

1.3 “Purchase Order” shall mean any document received by the Company from Dealer contracting, or promising to purchase e3 FUEL SAVER ® components as set forth in Schedule C  attached hereto
and incorporated herein by reference. 

1.4 “Services” shall mean any services provided by Company or Dealer to customers  under this Agreement including, without limitation, installation and support  services as well as maintenance services. 

1.5 “Equipment” shall mean any AEDC® supplied equipment and AEDC® or e3 FUEL SAVER® derived products as described
in Company’s price list. 

1.6 “Terms and Conditions” shall mean Company’s terms and conditions which  include Company’s retail rental, lease and finance programs and all terms and conditions set forth in each and every Irrevocable Corporate Purchase Order more specifically defined in Schedule C. 

 

 

 

 

 

 

1.7 “Products” shall mean all Equipment, devices, and systems incorporating Equipment provided  or to be provided by the Company. 

1.8 “Territory” shall mean the primary sales area identified on Schedule B attached hereto and incorporated for all purposes. 

1.9 “Trademarks” shall mean the trademarks, service marks, and trade names  e3 Fuel Saver, e3 Fuel Saver 7000, e3 Solutions, e3 Fuel Saver System, Alternative Energy Development Corporation
and AEDC which Dealer hereby acknowledges are the property of Company. 

 

l.10 “Training” shall mean the educational training programs provided by Company to Dealer and Dealer’s personnel to allow Dealer to sell, install, and maintain the in-vehicle equipment. 

1.11 “Confidential Information” shall mean any information which is marked as “Confidential” or “Proprietary” by Company or otherwise intended by the Company to be maintained as confidential. The content or nature of the information shall not under any circumstance be deemed an indicator that such
information shall not be considered confidential.  Company and Company alone is the determining party as to the confidentiality of any information generated by Company. 

2. Appointment 

Subject to the terms herein, Company hereby grants Dealer the right to market and sell the Products in the Territory.  To induce Company to enter into this Agreement, Dealer represents and warrants to Company that Dealer is: 

a) qualified to resell the Products; 

b) sufficiently knowledgeable in the Products to do so; and

 

c) not competing, and will not compete during the term of this Agreement in the Territory or  any other geographic area in which the Products are, or may be, offered for license or sale by the Company or its various dealers and distributors, in any manner or form against the Company. 

3. Acceptance of Appointment 

Dealer hereby accepts appointment as a dealer of the Products on the terms and conditions provided for in this Agreement. 

4. Duties of Dealer 

In satisfaction of its duties under this Agreement, Dealer shall undertake the following duties in a professional manner to the satisfaction of Company: 

4.1 Provide installation and support services for Company's Products; 

4.2 Provide Company with quarterly sales reports setting forth Dealer’s sales goals, and performance; 

  

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4.3 Notify Company immediately of any threatened or any actual legal action against Company or Dealer regarding the Products; 

4.4 Comply with all applicable international, territorial, federal, provincial, and local laws,  ordinances, and regulations in connection with Dealer 's performance of this Agreement; 

4.5 Obtain all licenses, permits, government approvals, customs duties, and any and all other licenses pertaining to shipment of equipment to, and services in the Territory; and 

4.6 Purchase Company's products and services, in accordance with the definition found in Article 1.7; No license, right or interest in any Company trademark, trade name or service marks is granted herein, except as expressly provided for below.  Except as provided in Section 21, neither Dealer nor any of Dealer’s customers
may use any Company trademark, trade name or service mark without Company's prior written consent. Dealer shall be responsible for installation of the Equipment, resale or licensing of the Company’s Products.  Dealer shall secure the execution of documents and instruments required by the Company with respect to such resale or licensing of the Products. 

5. Prices 

Dealer shall pay Company the prices for the Products purchased under this Agreement as set forth in the Company-Published Price List.  All prices may be amended by Company in its sole discretion from time to time.  All such changes shall become effective thirty (30) days after Dealer has received written notice from
Company.  New Products, when released, will be sold to Dealer at Company's then existing price. 

 

6. Purchase Orders

Dealer shall initiate purchase of the Products by submitting an Irrevocable Corporate  Purchase Order  (ICPO) using the form set forth in Schedule C of this Agreement through their Sales Representative.  All Purchase Orders shall be in writing in a form acceptable to Company.  All Purchase Orders
must be accepted in writing by Company and are not valid or effective until accepted by Company.  Company reserves the right to reject any Purchase Order. In the event any Purchase Order contains terms which are in addition to or in conflict with the terms of this Agreement or the Terms or Conditions, the Terms and Conditions of this agreement shall apply.  After acceptance of a Purchase Order Company shall deliver to a common carrier F.O.B. Company facilities.  Dealer assumes all
risks of loss or damage upon delivery of the Equipment to Dealer’s shipping destination. Dealer agrees that acceptance of Equipment shall occur upon delivery of the Equipment by the Company to Dealer or a common carrier. 

7. Payment 

Unless Dealer is approved for credit with Company, 100% payment for all purchases shall be delivered to the Company by Dealer prior to shipment of the applicable order.  Credit will be granted to Dealer on a case by case basis, initiated with Dealer's application for credit by submission of the Company’s form of credit application.  The
amount and term of credit extended to Dealer, if any, shall be at the discretion of the Company and is subject to change as the Company may deem appropriate.  

  

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8. Delivery or Order 

After Company has accepted the Purchase Order, the Company will use reasonable efforts to fulfill any orders received from Dealer within 60 calendar days.  Company shall have no duty or obligation to deliver any Products if Dealer is in breach or default of this Agreement or any past due amount is owed by Dealer to Company. 

9. Term 

Agreement shall become effective upon its execution by duly-authorized representatives of both Dealer and Company, and after an original signed copy is delivered to the Company and remain in full force and effect for the term of five (5) years from the date of execution.  This Agreement shall automatically terminate, unless earlier
terminated by Company pursuant to this Agreement, five (5) years from the date of this Agreement. 

 

10. Marketing 

Promotional material and advertisements or any material to be released to the public, including photographs, that utilize any trademarks of the Company or depict any of the Products shall be approved by an authorized executive officer of the Company in writing prior to its public release. 

11. Reporting and Forecasting 

11.1 Dealer and Company will meet at mutually agreeable times to review Dealer- forecasted purchases each quarter.  These meetings will be conducted via telephone or email unless other arrangements are required.  In such an event, each party shall bear its own expenses to attend the meeting. 

11.2 In order to facilitate customization, production scheduling and delivery of the Products, Dealer agrees to provide Company within ninety (90) calendar days from the date of this Agreement and quarterly thereafter during the term of this Agreement and any extension herein, a non-binding forecast for the following twelve (12) months
of the Dealer-anticipated equipment.  

 

12. Training, Installation and Support Services

Dealer shall be responsible for all Product installation and maintenance.  Dealer and Company understand and agree that initial  training of Dealer's support personnel will be provided by the Company, on Company’s premises.  Dealer will be responsible for travel expenses. 

12.1 Company will provide training material, technical documentation and support as deemed appropriate by the Company to familiarize Dealer with the installation of the systems; 

12.2 Company will provide training, subject to availability of Company resources, to Dealer personnel at one of Company's facilities when reasonably requested by the Dealer.  Dealer will bear the expenses of this training; 

12.3 Subsequent to Dealer’s receipt of relevant training outlined herein, the Dealer will respond in a timely and effective manner to all inquiries of Product customers concerning the operation of any Products.  Company agrees to provide a reasonable level of technical phone support for Dealer’s customers on any
technical or operational issues that Dealer cannot resolve directly. 

 

 

 

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12.4 All products purchased from Company by Dealer at prices which are offered as “Dealer-Only” prices may not be resold by Dealer or transferred to the property or custody of any other party under any circumstance whatsoever.  

13. Documentation 

13.1 Company agrees to provide one copy of each relevant user’s manual without charge.   Amended documentation will be provided to Dealer, as is necessary and appropriate for the installation and maintenance of customers' equipment. Additional copies of such manuals will be furnished at Company’s then existing
price. To the extent that such other information (including price, data/documentation and marketing information) furnished to Dealer is Confidential Information, the Dealer agrees to keep it in strictest confidence and not to disclose the confidential information. 

13.2 Dealer shall not make any change to any documents or manuals provided by Company to Dealer. 

 

14.  Equipment Service 

14.l Repairs under Warranty.  All repairs of the equipment made under warranty shall be made or authorized by the Company under the standard warranty for the applicable Product, as provided by the Company or a third party provider of the applicable Product. 

14.2 Repairs outside of Warranty.  Dealer may repair Equipment using Company standards and using only Company authorized repair parts and procedures.  If Company deems that repairs or modifications to Equipment were made outside of Company-approved guidelines, all warranties on the applicable Equipment will become
immediately void. Such repairs will not indicate any extension of the Product warranty by the Company. 

15. Confidential Information 

15.1 Dealer, its employees and agents shall retain all Confidential Information, as defined in Article 1 and to prevent disclosure of such Confidential Information, except as expressly provided for in this Section 15.1.  Company hereby states that the Product designs constitute a valuable asset of Company, and are to be considered
Proprietary Information.  Access by Dealer to Confidential Information shall be restricted to Dealer’s employees with a need to have access to such Confidential Information, each of whom shall have signed a confidentiality agreement containing protections benefiting the Company and no less restrictive than the provisions of this Section 15.  Dealer acknowledges that by virtue of this Agreement, Dealer acquires only the right to use the Confidential Information under the terms and conditions
of this Agreement for so long as it is in effect, and does not acquire any rights of ownership, title, or disclosure of the Confidential Information. 

15.2 Dealer shall not use, make, have made, distribute or disclose any copies of the Confidential Information, in whole or in part, without the prior written authorization of Company except as defined herein. 

15.3 Dealer shall inform its employees having access to the Confidential Information of Dealer’s limitations, duties and obligations regarding nondisclosure and copying of the Confidential Information.  Dealer agrees to protect and secure the Confidential Information with the same degree of care and confidentiality that
it employs to protect its own proprietary and/or confidential information. 

 

 

 

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16. Warranties 

16.1 Unless otherwise specified by the Company, Products developed by the Company are delivered with a warranty for (1) one year.  Products supplied by third parties are subject to the  applicable
warranties provided by such third parties, and the Company makes no additional  warranties with respect to such Products.   

16.2 Dealer shall in no way imply or state to its customers that any warranties not expressly given by the Company or applicable third parties are in effect with respect to the Products. 

16.3 Products suspected to be deficient may be delivered to Company, which will, as its sole obligation hereunder and at its option, replace or repair Products that the Company finds to be deficient. In the case of shipments related to warranty actions, Company will bear shipping costs for shipments to Dealer, and Dealer will bear shipping
costs for shipments to Company.  The party bearing shipping costs has exclusive choice of the method of shipping.  An RMA # shall be required on all returns.  

17. Limitation of Liability 

17.1 COMPANY DOES NOT MAKE ANY EXPRESS OR IMPLIED WARRANTIES (EXCEPT AS STATED ABOVE) INCLUDING, BUT NOT LIMITED TO, THE WARRANTIES OF DESIGN, MERCHANTIBILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR ARISING FROM A COURSE OF DEALING, USAGE OR TRADE PRACTICE. 

17.2 IN NO EVENT WILL COMPANY BE LIABLE FOR ANY LOST REVENUES OR PROFITS, OR OTHER SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, EVEN IF COMPANY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 

17.3 NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, COMPANY'S MAXIMUM LIABILITY FOR DAMAGES SHALL BE LIMITED TO THE PAYMENTS MADE BY DEALER UNDER THIS AGREEMENT FOR THE SPECIFIC PRODUCT THAT CAUSED THE ALLEGED DAMAGES. 

18. Limitation of Intellectual Property Liability 

18.1 The Company shall have no liability for any claim of copyright, trade secret or patent infringement based on the use of the Products or the use or combination of the Products and equipment, services or other materials not provided by Company. 

18.2 THE COMPANY SHALL HAVE NO LIABLITY WITH RESPECT TO ANY ALLEGED OR PROVEN INFRINGEMENT OF PATENTS, TRADE SECRETS AND COPYRIGHTS WITH RESPECT TO THE PRODUCTS OR ANY PARTS THEREOF. 

19. Disclaimer of Partnership or Agency 

The relationship between Company and Dealer under this Agreement is solely that of independent contractors.  Each of the parties is in no way the legal representative or agent of the other party for any purpose, shall not in any way hold themselves out as such, and shall have no power to assume or create, in writing or otherwise,
any obligation or responsibility of any kind, expressed or implied, in the name of or on behalf of the other party. 

  

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20. Indemnification 

Dealer will indemnify, defend and hold Company harmless from any and all liabilities, losses, obligations, expenses (including without limitation to attorney’s fees) and costs arising in connection with any lawsuit, proceedings, or other action (i) arising out of the operation of Dealer's business or (ii) related to any claim by a
third party based, in whole or in part, on Dealer's distribution, use, or installation of Products. The activities of any of Dealer’s employees, agents of representatives will be considered activities of the Dealer for purposes of this Section.  Company will have the right, but not the obligation, to assume the defense of any such lawsuit, proceeding, or action.  Company and Dealer will 

each give the other prompt notice of any such claim, lawsuit, proceeding or action. 

21. Use of Company Trademarks and Service Marks 

21.1 During the term of this Agreement, Dealer shall have a limited license to use the Trademarks in connection with Dealer’s promotion of the Products, but only in strict compliance with such license and the policies, instructions and guidelines of Company.  This compliance shall include proper display of trademark notices
and warnings with each use of trademark (e.g. e3 Fuel saver, e3 Fuel Saver 7000, e3 Solutions, e3 Fuel Saver System, AEDC, ®, is a registered trademark of Alternative Energy Development Corporation), and any use of such Trademarks shall be subject to prior approval of the Company. 

21.2 Dealer acknowledges the exclusive right, title and interest of the Company in and to the Trademarks; 

21.3 Nothing contained in this Agreement shall be construed as conveying to Dealer any right, title of interest in or to any of the Trademarks other than an express right to a permissive use thereof in connection with the promotion of the Products; 

21.4 Dealer shall cooperate to the fullest extent possible with Company or its nominee to take such actions as Company in its sole discretion may consider necessary to protect any of the Trademarks; 

21.5 Dealer shall fully cooperate with Company in maintaining and defending the ownership and validity of each of the Trademarks against infringement and claims of infringement, Dealer will promptly notify Company of (i) any infringement or unauthorized use of any Trademark by any third party, or (ii) any assertion by any third party
that Dealer’s use of any Trademark constitutes infringement.  Company shall not be obligated to initiate or defend legal action with respect to any Trademark, and Dealer  shall not initiate or defend any such action itself without Company's prior written consent; and 

21.6 Dealer hereby agrees and warrants that Dealer will not incorporate all or any portion of the Trademarks into Dealer’s corporate name or trade names. 

22. Force Majeure 

22.1 If the performance of Company is made impossible by reason of any circumstances beyond Company's reasonable control, including without limitation vendor delay, fire, explosion, power failure, acts of God, war, revolution, civil commotion, or acts of public enemies, any law, order, regulation, ordinance, or requirement of any
government or legal body or any representative of any such government or legal body, labor unrest, including without limitation, strikes, slowdowns, picketing or boycotts, then Company shall be excused from such performance on a day-to-day basis to the extent of such interference, provided that Company shall use reasonable efforts to remove such causes of nonperformance. Under no circumstances shall economic considerations, economic impracticability or inefficiencies delay or excuse Dealer’s performance
or be considered an event of "Force Majeure." 

 

 

 

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23. Termination 

23.1 Company may at its option forthwith terminate this Agreement hereunder by giving a thirty (30) days advance written notification to the other party, signed by the same person who originally signed the agreement (or that person's authorized representative). If no reply is received, termination occurs anyway (if the receiving party
refuses to answer or otherwise fails to reply within thirty (30) days) in accordance with Section 29 of this Agreement. 

23.2 Dealer may not at its option forthwith terminate this Agreement hereunder prior to the end of the Term as defined in Section 9 of this Agreement. b

23.3 Company shall have the right to immediately terminate this Agreement without prior notice or penalty if Dealer, its employees, or agents shall materially breach this Agreement. 

24. Effect of Termination and/or Expiration 

24.1 Upon termination or expiration of this Agreement for whatever reason, Dealer waives the applicability and protection of all laws, regardless of jurisdiction, giving to Dealer any rights of indemnity or other compensation in lieu of notice or otherwise arising upon termination of this Agreement or any other relationship between Company
and Dealer.  Company will not be required to indemnify or pay any amount to Dealer, whether as compensation, balancing, relief or otherwise, as a result of the termination of this Agreement. 

24.2 Upon the expiration or termination of this Agreement for whatever reason, Dealer shall promptly return to Company all Confidential Information furnished hereunder together with all copies made therefrom and shall not retain copies hereafter except for those necessary for the use, operation and maintenance of the Equipment by Dealer’s
employees or contractors. 

24.3 Upon the expiration or termination of this Agreement for whatever reason, Dealer will immediately cease all use of the Trademarks and deliver to Company or destroy all materials bearing the Trademarks, including all advertising and promotional materials.  Dealer shall also take all actions necessary to transfer and assign
to Company or its nominee any right, title or interest in or to any of the Trademarks which Dealer may have acquired in any manner as a result of its activities under this Agreement. 

25. Entire Agreement 

This Agreement, the schedules hereto attached and the documents referenced herein supersede any and all prior agreements, discussions and negotiations between Dealer and Company.  They set forth the entire agreement and understandings between the parties as to the subject matter of this Agreement.  Neither of the parties
shall be bound by any terms, conditions, definitions, waivers, warranties or representations with respect to the subject matter of this Agreement, other than as expressly provided in this Agreement or duly set forth on or subsequent to the date hereof in a writing signed by a proper and duly authorized representative of whichever of the parties is to be bound hereby. 

 

 

  

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26. Assignment 

This Agreement and the Dealer’s obligations hereunder are unassignable and nontransferable by the Dealer to any other party without the prior written consent of an authorized executive officer of Company.  For purposes of this Section 26, any transfer of a controlling interest in Dealer shall be considered an assignment. 

27. Governing Law 

This Agreement shall be deemed to have been entered into in the County of Maricopa, State of Arizona, and all questions concerning the validity, interpretation or performance of any of the terms, conditions and provisions of this Agreement or of any of the rights or obligations of the parties shall be governed by, and resolved in accordance
with, the laws of the State of Arizona.  Any and all actions or proceedings, at law or in equity, to enforce or interpret the provisions of this Agreement shall be litigated in courts having situs within the State of Arizona, and each party hereby consents expressly to the jurisdiction of any local, state or federal court located within the County of Maricopa, State of Arizona and consents that any service of process in such action or proceeding may be made by personal service upon such party wherever
such party may be then located, or by certified or registered mail directed to such party at such party’s last known address. The parties hereby irrevocably commit to the jurisdiction and venue of such courts and waive any claims of forum non conveniens or other causes for change of venue.

28. Waiver 

Any failure of Company to enforce, at any time or for any period of time, any of the provisions under this Agreement shall not be construed as a waiver of the right of Company to enforce such provisions unless said waiver is in writing, and signed by an authorized executive officer of Company. 

29. Notices 

Any notice or other communications required or permitted to be given under or in connection with this Agreement shall be in writing and shall be deemed to have been duly given or made when personally delivered on the fifth (5th) day following the date it is sent, if sent by United States registered or certified mail, postage prepaid, return
receipt requested, to the following addresses: 

 

	 If to Company:	If to Dealer: 
	 	 
	 President	President
	 Alternative Energy Development Corporation	Dandy Enterprises, LLC 
	 17505 N 79th Ave Suite #309	2340 Charles Ave.
	 Glendale, AZ  85308	St Paul Minnesota, 55114

 

 

Either party may change its address for notices hereunder by giving notice of such change in writing to the other party. 

  

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30. Severability of Provisions 

Each provision of this Agreement shall be considered severable and if for any reason any provision or provisions herein are determined to be invalid or contrary to any existing or future law, such invalidity shall not impair the operation of this Agreement or affect those portions of this Agreement which are valid. 

31. Background, Enumeration, and Headings 

The Background, enumeration and headings contained in this Agreement are for convenience of reference only and are not intended to have any substantive significance in interpreting this Agreement. 

32. Survival 

Dealer recognizes and agrees that its obligations under this Agreement shall survive the termination of the Agreement, and Dealer shall be bound by such obligations after termination hereof. 

33. Captions and Interpretation 

Captions of the paragraphs of this Agreement are for convenience and reference only, and the words contained in those captions shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this Agreement.  The language in all parts to this Agreement, in all cases,
shall be construed in accordance with the fair meaning of that language as if that language was prepared by all parties and not strictly for or against any party.

 

34. Further Assurances 

Each party shall take any and all action necessary, appropriate or advisable to execute and discharge such party’s responsibilities and obligations created by the provisions of this Agreement and to further effectuate, perform and carry out the intents and purposes of this Agreement and the relationship contemplated by the provision
of this Agreement.

35. Number and Gender 

Whenever the singular number is used in this Agreement, and when required by the context, the same shall include the plural, and vice versa; the masculine gender shall include the feminine and neuter genders, and vice versa; and the word ‘person’ shall include corporation, firm, trust, association, governmental authority, municipality,
association, sole proprietorship, joint venture, association, organization, estate, joint stock company, partnership, or other form of entity.

 

 

  

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36. Execution in Counterparts 

This Agreement may be prepared in multiple copies and forwarded to each of the parties for execution.  This Agreement shall become effective when the Corporation receives a copy or copies of this Agreement executed by the parties in the names as those names appear at the end of this Agreement. All of the signatures of the parties
may be affixed to one copy or to separate copies of this Agreement and when all such copies are received and signed by all the parties, those copies shall constitute one agreement which is not otherwise separable or divisible.  The Corporation shall keep all of such signed copies and shall conform one copy to show all of those signatures and the dates thereof and shall mail a copy of such conformed copy to each of the parties within thirty (30) days after the receipt by such counsel of the last signed
copy, and shall cause one such conformed copy to be filed in the principal office of the Corporation. 

37. Successors and Assigns 

This Agreement and each of the provisions of this Agreement shall obligate and inure to the benefit the heirs, executors, administrators, successors and assigns of each of the parties; provided, however, nothing specified in this paragraph shall be a consent to the assignment or delegation by any party of such party’s respective rights
and obligations created by the provisions of this Agreement.

38. Reservation of Rights 

The failure of any party at any time hereafter to require strict performance by any other party of any of the warranties, representations, covenants, terms, conditions and provisions specified in this Agreement shall not waive, affect or diminish any right of such failing party to demand strict compliance and performance therewith and with
respect to any other provisions, warranties, terms and conditions specified in this Agreement.  Any waiver of any default not waive or affect any other default, whether prior or subsequent thereto, and whether the same or of a different type.  None of the representations, warranties, covenants, conditions, provisions and terms specified in this Agreement shall be deemed to have been waived by any act or knowledge of either party or such party’s agents, officers or Representatives, and
any such waiver shall be made only by an instrument in writing, signed by the waiving party and directed to each non-waiving party specifying such waiver.  Each party reserves such party’s rights to insist upon strict compliance with the terms, conditions, warranties, obligations, representations, covenants  and  provisions of this Agreement at all times.

39. Concurrent Remedies 

No right or remedy specified in this Agreement conferred on or reserved to the parties is exclusive of any other right or remedy specified in this Agreement or by law or equity provided or permitted; but each such right and remedy shall be cumulative of, and in addition to, every other right and remedy specified in this Agreement or now
or hereafter existing at law or in equity or by statute or otherwise, and may be enforced concurrently therewith or from time to time.  The termination of this Agreement for any reason whatsoever shall not prejudice any right or remedy which either party may have, either at law, in equity or pursuant to the provisions of this Agreement.

40. Consent to Agreement 

By executing this Agreement, each party, for itself, represents such party has read or caused to be read this Agreement in all particulars, and consents to the rights, conditions, duties and responsibilities imposed upon such party as specified in this Agreement.

 

 

  

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41. Authority of Signers 

The parties represent and warrant that the person whose signature is set forth  below on behalf of a party is fully authorized to execute this Agreement on behalf of that party.   

42. Fair Meaning

The parties agree that the wording of this Agreement shall be construed as a whole according to its fair meaning, and not strictly for or against any of the parties to this Agreement, including the party responsible for the drafting of this document.  

43. Mutual Drafting  

The parties hereto acknowledge and agree that they are sophisticated and have been represented by attorneys who have carefully negotiated the provisions of this Agreement.  As a consequence, the parties also agree that they do not intend that the presumptions of any laws or rules relating to the interpretation of contracts against
the drafter of any particular clause should be applied to this Agreement and therefore waive their effect.

44. Amendment

The parties agrees that no amendment of this Agreement shall be effective unless it shall be in writing and signed by each of the parties hereto.

45. Terms and Conditions of License Grant 

All licenses of Trademarks granted to Dealer under this Agreement or otherwise, shall be subject to and in conformance with Company’s terms and conditions, and the failure to do so constitutes a material breach of this Agreement allowing Company to immediately terminate this Agreement without notice or penalty. 

IN WITNESS WHEREOF, and intending to be legally bound, the parties have executed this Dealer Agreement under seal, effective the date first written above. 

Company: 

Alternative Energy Development Corporation

 

 By:   JERRY ALVAREZ 

          Jerry Alvarez, President 

  

 

Dealer:  (must be officer or owner)  

  

 Signature: DARYLE R. DARNELL 

 Printed name: Daryle R. Darnell        

 Title: President

 

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Schedule A- Price List

DARYLE DARNEL AUTHORIZES DANDY ENTERPRISES TO ENTER PURCHASE ORDER TERMS AND SCHEDUAL THE FOLLOWING PRODUCT(S) ON THE TERMS AND CONDITIONS HEREUNDER.

 

PRODUCT:

E3 FUEL SAVER DEVICE (“UNIT”)

SPECIFICATIONS:

CAR ACCESSORY

QUANTITY:

5,000 UNITS

PACKING:

N/A

SHIPPING TERMS:

UPS GROUND

 

DEPOSIT:

$15,000.00 TO BE DEDUCTED FROM SUBTOTAL OF $1,000,000.00 (USD)

PRICE PER UNIT: 

$200.00 (USD) FOB CALIFORNIA

MINIMUM SHIPPMENT OF 200 UNITS PER MONTH OVER THE DURATION OF TWENTY – FOUR MONTHS FOLLOWING THE FIRST SHIPPMENT FOR FIFTY UNITS

INSPECTIONS:

10 DAY RETURN POLICY TO CUSTOMER FOR ANY DAMAGED GOODS FOR EXCHANGE ONLY

PAYMENT TERMS:

C.O.D. OR CREDIT CARD PAYMENT DUE UPON DELIVERY OF GOODS BILLED BY COMMERCIAL INVIOCE 

CONTRACT PERIOD:

START DATE OF JULY 20, 2009 AND ENDING SEPTEMBER 26, 2011

 

2340 Charles Ave. St. Paul Minnesota 55114 

___________________________________________________

COMPANY ADDRESS

888-376-0777 

___________________________________________________

COMPANY TELEPHONE NUMBER 

___________________________________________________

COMPANY FAX NUMBER 

IN ACCORDANCE WITH THE TERMS AND CONDITIONS SET FORTH IN THE DEALERS AGREEMENT BETWEEN DANDY ENTERPRISES AND ALTERNATIVE ENERGY CORPORATION, DO HEREBY SUBMIT THIS IRREVOCABLE CORPORATE PURCHASE ORDER (ICPO) AS SCHEDUAL A

 

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Schedule B- Territory 

 

Company offers the following territorial rights to Dealer: 

 

 

1. Non-Exclusive Territory 

 

 

The following geographical regions shall be considered the Territory for purposes of this Agreement (Must List Counties for web look up, limited to 100 Counties): 

 

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

The foregoing definition is subject to the following exclusions; 

___________________________________________________________________________________

___________________________________________________________________________________

 

Dealer’s right to distribute Products in the Territory, unless earlier terminated as provided for herein, will be valid for a period of five (5) years, beginning on the executed date of this Agreement. 

 

	 Company:	Dealer: 
	 	 
	 Alternative Energy Development Corporation	 
	 	 
	 By:  JERRY ALVAREZ	By: DARYLE R. DARNELL
	 Printed Name: Jerry Alvarez	Printed Name: Daryle R. Darnell
	 Title: President	Title: President

 

 

 

  

 

 

 

  

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RESELLER CERTIFICATE 

 

Name of Purchaser: Dandy Enterprise LLC 

Address of Purchaser: 2340 Charles Ave. St. Paul Minnesota 5511

I HEREBY CERTIFY: That I hold valid Sales and Use Tax Permit No. 90 039 9884 

 

 

issued pursuant to the Sales and Use Tax Law; that I am engaged in the business of selling: 

 

_____________________________________________________________________________ 

 

I certify that the tangible personal property described herein which I shall purchase from Alternative Energy Development Corporation will be resold by me in the form of tangible personal property, provided, however, that in the event any of such property is used for any purpose other than retention, demonstration, or display while holding
it for sale in the regular course of business, it is understood that I am required by Sales and Use Tax Law to report and pay tax, measured by the purchase price of such property or other authorized amount. 

Description of property to be purchased:  

E-3 FUEL SAVER

 

Date ______________20__   

 

Printed name of Purchaser (Company name): Dandy Enterprises LLC

 

Phone:  (     )_________________

 

By and Title:       DARYLE R. DARNELL 

             (Signature of Purchaser or Authorized Agent) 

 

Printed name of signer: Daryle R. Darnell

  

15ehx103.htm

Exhibit 10.3

EMPLOYMENT AGREEMENT

 

 

This Employment Agreement (the "Agreement") is entered into as of the 10th day of November, 2009 between Sam Messina III ("Employee") and Alternative Energy Development Corporation, a Nevada Corporation, it’s affiliates,
predecessors and subsidiaries (the "Company”).

 

WHEREAS, Employee and the Company desire to enter into this Agreement setting forth the terms and conditions for the employment relationship of Employee with the Company during the Employment Term (as defined below).

 

NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties to this Agreement hereby agree as follows:

 

1.         Services

 

1.1           Employment. During the Employment Term (as defined below), the
Company hires Employee to perform such services as the Company may from time to time reasonably request consistent with Employee's position with the Company (as set forth in Section 1.1 and 1.5 hereof) and Employee's stature and experience as a Certified Public Accountant(the "Services"). The Services and authority of Employee shall include, but not necessarily be limited to, management and supervision of (A) the general accounting, reporting, financial
management and regulatory compliance of the of the Company, (B) the general accounting, reporting, financial management and regulatory compliance of future acquisitions and Affiliates.  For purposes of this Agreement, "Affiliates" shall mean, as to any person, any other person controlled by or under common control with (or, where applicable, controlling), directly or indirectly, such person; and "person" shall
mean any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization or government or other agency or political subdivision thereof, or any other entity; whereas such person in the normal course of business shall be deemed an affiliate of the Company.

 

1.2           Location. During the Term, Employee's Services shall be performed in the Phoenix, Arizona area or any other area of Employee’s
convenience which permits regular communication via telephone, Internet or other popular medium with employees, officers, directors, customers and other affiliates as needed to effectively carry out duties as described herein.  Employee acknowledges and understands that the Company’s current headquarters are located in Glendale, Arizona and that officers and other participants critical to the Company’s business are dispersed nationally and internationally, and that such dispersion will increase
substantially as the Company grows. The parties therefore acknowledge and agree that the nature of Employee's duties hereunder may require domestic and international travel from time to time.

 

           1.3            Term. The
term of Employee's employment under this Agreement (the "Employment Term") shall commence on the 10th day of November, 2009 (the "Effective Date") and shall end on November 9th 2011 unless sooner extended or terminated in accordance with the provisions of this Agreement.

 

 

 

 

For purposes of this Agreement, "Employment Year" shall mean each twelve-month period during the Term commencing on November 10th,  and ending on November 9th,
of the following year. In the event the parties decide to extend this Agreement for an additional one year Employment Term, any extension agreed upon must be done so in writing and executed by the Company and Employee no later than 5 p.m. Eastern Standard Time on August  10th, 2011.

 

1.4           Exclusive Employment; Non-Competition.  Employee agrees that his employment
hereunder is on an exclusive basis, and that as long as Employee is employed by the Company, Employee will not engage in any other business activity which is in conflict with Employee’s duties and obligations hereunder.  Employee agrees that during the Employment Term, Employee shall not directly or indirectly engage in or participate as an owner, partner, shareholder, officer, employee, director, agent of or consultant for any business that competes with any of the principal activities of the
Company.  Provided however, that Employee may acquire and/or retain, as an investment, and take customary actions (including the exercise or conversion of any securities or rights) to maintain and preserve Employee's ownership of any one or more of the following (provided such actions, other than passive investment activities, do not unreasonably interfere with Employee's Services hereunder): (i) securities of any corporation that are registered under Sections 12(b) or 12(g) of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), and that are publicly traded as long as Employee is not part of any control group of such corporation and, in the case of public corporations in competition with the Company, such securities do not constitute more than five percent of the voting power of that public corporation; (ii) any ownership interest in a partnership, trust, corporation or other person so long as Employee remains a passive investor in
that entity and so long as such entity is not, directly or indirectly, in competition with the Company, (iii) securities or other interests now owned or controlled, in whole or in part, directly or indirectly, by Employee in any corporation or other person and which are identified on Schedule 1.4 hereto; and (iv) securities of the Company or any of its Affiliates. Nothing in this Agreement shall be deemed to prevent or restrict Employee's ownership interest in the Company and any of its Affiliates or Employee’s
ability to render charitable or community services not in competition with the Company.

 

1.5       Power and Authority.

 

1.5.1        During the Employment Term, Employee shall be Employed as Chief Financial Officer of the Company, Employee shall report directly to the President, Chief Executive Officer and Company’s
Board of Directors. Employee shall be a member of the Board of Directors of the Company (the "Board") and a member of the executive or supervisory committee(s) or comparable committee(s), (the "Executive Committee").

 

1.5.2        During the Employment Term, all accounting officers and employees of the Company shall report to Employee (directly or through such channels as Employee and the Board may designate).

 

1.5.3        The Company may from time to time during the Term appoint Employee to one or more additional offices of the Company. Employee agrees to accept such offices if consistent with Employee's stature and experience and position with the
Company.

 

 

 

 

1.6           Indemnification. The Company shall indemnify Employee to the fullest extent allowed by applicable law. Without limiting the foregoing,
Employee shall be entitled to the benefit of the indemnification provisions contained on the date hereof in the Bylaws of the Company and any applicable Bylaws of any Affiliate, notwithstanding any future changes therein.

 

2.         Compensation.

 

As compensation and consideration for the Services provided by Employee during the Term pursuant to this Agreement, the Company agrees to pay to Employee the compensation set forth below.

 

2.1           Fixed Annual Compensation. The Company shall pay to Employee salary
("Fixed Annual Compensation") at the rate of 120,000.00 per annum beginning on November 10th, 2009, and continuing for the term of this agreement, with stated salary for the first year of the Employment Term to be paid as follows: Fixed Annual Compensation payable to Employee by the Company hereunder shall be paid beginning November 10th of each year during the Employment Term and at such times and in such amounts as the Company may designate in accordance
with the Company’s usual salary practices, but in no event less than twice monthly.

 

2.2           Stock. The Company shall grant to Employee One Million (1,000,000) shares of the Company’s common stock or equivalent within
ninety days subsequent to the effective date of this agreement.  The total amount of the Company’s common stock or equivalent to be issued in accordance with this Section 2.2 shall be One Million Share (1,000,000) and shall be vested 100% at the end of the first year of the Term. If the Executive voluntarily terminates his employment with the company within 12 months of the date of this agreement, all shares granted under this section shall be returned to the Company.

 

2.3           Bonus. Under this Agreement, Employee shall be entitled to participate in the highest bonus incentive program (hereafter “BIP”)
set up by the Board. While the specific structure and trigger mechanisms for the BIP are at the sole discretion of the Board, the BIP shall afford Employee the opportunity to earn a cash bonus through the Employee’s accomplishment of specific pre-identified reasonable milestones in the development of the Company’s business. Any payments under the BIP shall be paid annually to Employee and shall be paid no later than the end of the first quarter following the Company’s fiscal year-end. In addition
to the BIP, Employee shall also be entitled to such additional bonus, if any, as may be granted by the Board (with Employee abstaining from any vote thereon) or compensation or similar committee thereof in the Board's (or such committee's) sole discretion based upon Employee's performance of his Services under this Agreement.

 

2.4           Signing Bonus. Upon the execution of this Agreement, Employee shall be entitled to receive a Signing
Bonus of Ten Thousand US Dollars ($10,000.00) which shall be payable to Employee within the first quarter of the Employment Term.

 

 

 

 

3.         Expenses; Additional Benefits

 

3.1           Vacation. Employee shall be entitled to an aggregate of two weeks of paid vacation during each year of the Employment Term. Employee
may take vacation at times determined by the Employee and approved by the Chief Executive Officer, however, subject the Company’s business needs. In addition, Employee shall be entitled to holidays generally observed in the United States and the State of Arizona.

 

3.2           Employee Business Expense Reimbursement.
Employee shall be entitled to reimbursement of all business expenses for which Employee makes a submission for and provides an adequate accounting to the Company beginning on the effective date of this Agreement. The determination of the adequacy of the accounting of the foregoing expenses shall be within the reasonable discretion of the Company’s independent certified accountants taking into consideration the substantiation requirements of the Internal Revenue Code of 1986, as amended (the "Code").
Employee shall be entitled to cash reimbursement for expense items, including extended travel. Employee shall be entitled to cash or stock reimbursement for ordinary expenses, including phone and local travel, as approved in advance by the Board. Such reimbursement of business expenses shall be payable to Employee at the end of each calendar month for the business expenses incurred by the Employee for the month prior for each specific submission for reimbursement during the Term of this Agreement,

 

3.3           Stock Option Plan and Agreement.
Concurrently with the execution of this Agreement and in consideration for the execution thereof, Employee and the Company shall develop, implement and enter into the Alternative Energy Development Corporation 2009 Stock Option Plan and Agreement, which represents a material inducement to Employee's willingness to enter into this Agreement.

 

3.5           Medical and Dental Insurance. In the event that the Company, with the approval of the Board of Directors, elects to establish a
Medial Insurance Benefit Plan for the benefit of the Company’s employment staff, Employee shall be entitled to participate in such plan which shall include comprehensive medical and dental insurance (from a reputable and financially-sound insurance carrier of national standing) for himself and his immediate family. Such insurance shall cover at the minimum 100% of all hospitalization costs after payment of deductibles and 80% of other medical costs, with the annual deductible not exceeding $500 per person.
There shall be no cap on benefits for the medical insurance, and the annual cap for dental insurance benefits shall not be less than $3,000. The Company may either provide these benefits directly to Employee or promptly reimburse Employee for the cost of such benefits, at the Company’s election.

 

3.6           Other Agreements. Concurrent with the execution of this Agreement, Employee and the Company shall enter into other Transaction Documents
that have not been previously executed.

 

3.7           General. Employee shall be entitled to participate in any profit-sharing, pension, health, sick leave, holidays, personal days,
insurance or other plans, benefits or policies (not duplicative of the benefits provided hereunder) available to the employees of the Company or its Affiliates on the terms generally applicable to such employees.

 

3.8           No Reduction of Benefit or Payment. No payment or benefit made or provided under this Agreement shall be deemed to constitute payment
to Employee or his legal representative or guardian in lieu of, or in reduction of, any benefit or payment under an insurance, pension or other benefit plan, and no payment under any such plan shall reduce any payment or benefit due under this Agreement except as set forth in Section 5.3 of this Agreement.

 

 

 

 

3.9           Covenant Not To Solicit.  Employee agrees that for a period of two (2) years following any termination of the employment
of the Employee with the Company, Employee will not, directly or indirectly, without the prior written consent of the Company:  solicit, entice, persuade or induce any employee, consultant, agent or independent contractor of the Company or of any of its subsidiaries or Affiliates to terminate his or her employment by the Company or such subsidiary or Affiliate to become employed by any person, corporation or other entity other than the Company or such subsidiary or Affiliate,  or approach
any such employee, consultant, agent or independent contractor for any of the foregoing purposes, or hire any such employee, consultant, agent or independent contractor or authorize or assist in the taking of any such actions by any third party.

 

3.10         Confidentiality.  During the Term of Employment and continuously thereafter, Employee
shall keep secret and retain in strictest confidence and not use or disclose, furnish or make accessible to anyone outside the Company and any of its Affiliates, directly or indirectly, or use for the benefit of Employee or others except in conjunction with the business of the Company and the business of any of its subsidiaries or Affiliates, any Protected Information.  The term “Protected Information” shall mean trade secrets, confidential or proprietary information and all other knowledge,
technology, know-how, information, documents or materials owned, developed or possessed by the Company or any of its subsidiaries or Affiliates, whether in tangible or intangible form, pertaining to the business of the Company or any of its subsidiaries or Affiliates, including, but not limited to, research and development, operations, systems, databases, computer programs and software, designs, models, operating procedures, knowledge of the organization, products and services (including prices, costs, sales
or  content), processes, techniques, contracts, financial information or measures, business methods, future business plans, details of consultant contracts, new personnel acquisition plans, business acquisition plans, customers and suppliers (including identities of customers and prospective customers and suppliers, identities of individual contacts at business entities which are customers  or prospective customers or suppliers, preferences, businesses or habits), and business relationships.  Provided
however, that Protected Information shall not include information that shall become generally known to the public or the trade without violation of this Section 1.6.

 

3.11         Company Ownership.  The results and proceeds of Employee’s services hereunder, including, without limitation, any works of
authorship resulting from Employee’s services during his employment with the Company or any of the Company’s Affiliates and any works in progress, shall be works-made-for-hire, and the Company shall be, and shall be deemed, the sole owner throughout the universe of any and all rights of whatsoever nature therein, whether or not now or hereafter known, existing, contemplated, recognized or developed, with the right to use the same in perpetuity in any manner the Company determines in its sole discretion
without any further payment to Employee whatsoever.  If, for any reason, any of such results and proceeds shall not legally be a work-for-hire and/or there are any rights which do not accrue to the Company under the preceding sentence, then Employee hereby irrevocably assigns and agrees to assign any and all of Employee’s right, title and interest thereto, including, without limitation, to any and all copyrights, patents, trade secrets, trademarks and/or other rights of whatsoever nature therein,
whether or not now or hereafter known, existing, contemplated, recognized or developed to the Company, and the Company shall have the right to use the same in perpetuity throughout the universe in any manner the Company determines without any further payment to Employee whatsoever.  Provided however, that if the Company elects not to utilize any work(s) of authorship resulting from Employee’s services during his Employment Term, the Company shall wave and release all rights to said work(s) and
assign all rights thereto to Employee.

 

 

 

 

Employee shall, from time to time, as may be requested by the Company, do any and all things which the Company may deem useful or desirable to establish or document the Company’s exclusive ownership of any and all rights in any such results and proceeds, including, without limitation, the execution of appropriate copyright and/or
patent applications or assignments.  To the extent Employee has any rights in the results and proceeds of Employee’s services that cannot be assigned in the manner described above, Employee unconditionally and irrevocably waives the enforcement of such rights.  This Section 3.11 is subject to, and shall not be deemed to limit, restrict, or constitute any waiver by the Company of any rights of ownership to which the Company may be entitled by operation of law by virtue of the Company’s
being the employer of Employee.

 

3.12         Litigation.  Employee agrees that, during the Employment Term, for two (2) year thereafter and, if longer, during the pendency of
any litigation or other proceeding, (i) Employee shall not communicate with anyone (other than his personal attorney(s) and/or tax advisor(s)) and, except to the extent necessary in the performance of Employee’s duties hereunder, with respect to the facts or subject matter of any pending or potential litigation, or regulatory or administrative proceeding involving the Company or any of its Affiliates, or any of their officers, directors, shareholders, representatives, agents, employees, suppliers or customers,
other than any litigation or other proceeding in which Employee is a party-in-opposition, without giving prior notice to the Company’s Board of Directors or General Counsel and receiving a response, and (ii) in the event that any other party attempts to obtain information or documents from Employee with respect to matters possibly related to such litigation or other proceeding, Employee shall promptly so notify the Company’s Board of Directors  or General Counsel and await any response .

 

3.13         No right to Give Interviews or to Write Books, Articles, etc.    Employee agrees that during the   Employment
Term and for a period of two (2) years thereafter, except with the Company’s prior written authorization, Employee shall not (i) give any interviews or speeches, or (ii) prepare or assist any person or entity in the preparation of any books, articles, television or motion picture productions or other creations, in either case, concerning the Company or any of its Affiliates, or any of their officers, directors, shareholders, representatives, agents, employees, suppliers or customers.

 

3.14         Return of Property.  All documents, date books, recordings, or other property, whether tangible or intangible, including all information
stored in electronic form, obtained or prepared by or for Employee and/or utilized by Employee in the course of Employee’s employment with the Company shall remain the exclusive property of the Company.  In the event of the termination of Employee’s employment for any reason, the Company reserves the right, to the extent permitted by law and in addition to any other remedy the Company may have, to deduct from any monies otherwise payable to 

 

 

 

 
Employee by the Company the following:  (i) the full amount of any debt Employee owes to the Company or to any of the Company’s Affiliates at the time of or subsequent to the termination of Employee’s employment with the Company;  and (ii) the value
of the Company’s property which is retained in Employee’s possession after the termination of Employee’s employment with the Company.  In the event that the law of any state or other jurisdiction requires the consent of an employee for such deductions, this Agreement and the Employee’s signature hereon shall serve, and be deemed to serve, as such consent. Employee acknowledges and agrees that the foregoing remedy shall not be the sole and/or exclusive remedy of the Company with
respect to a breach of this Section 3.14.

 

3.15         Non-Disparagement.  Employee agrees that he shall not, during the Employment Term and for a period of two (2) years thereafter, criticize,
ridicule or make any statement which disparages or is derogatory of the Company or any of its Affiliates, or of any of their officers, directors, shareholders, representatives, agents, employees, suppliers or customers.

 

3.16         Injunctive Relief/Specific Enforcement. The Company has entered into this Agreement in order to obtain the benefit of Employee’s unique
skills, talent, and experience.  Employee acknowledges that the services to be rendered by Employee are of a special, unique and extraordinary character and, in connection with such services, Employee will have access to confidential or proprietary information or trade secret vital to the Company’s business and the businesses of its subsidiaries and Affiliates.  By reason of this, Employee acknowledges, consents and agrees that any violation of Sections 1.4 and 3.10 – 3.16 of this
Agreement will result in irreparable harm to the Company and its subsidiaries or Affiliates, and that money damages will not provide adequate remedy to the Company, and that the Company shall be entitled to have those sections specifically enforced by any court having competent jurisdiction. Accordingly, Employee agrees that the Company may obtain injunctive and/or other equitable relief for any breach or threatened breach of those sections, in addition to any other remedies, including the recovery of money damages
from Employee available to the Company.

 

3.17         Non-Renewal Notice.  The
Company shall notify Employee in writing in the event that the Company elects not to extend or renew this Agreement.  If the Company gives Employee such notice less than three (3) months before the end of the Employment Term, or Employee’s employment terminates pursuant to Section 4.1 hereof during the three (3) months of the Employment Term, Employee shall be entitled to receive his Salary as provided in Section 2.1, payable in accordance with the Company’s then-effective payroll practices,
subject to applicable withholding requirements, for the period commencing after the end of  the Employment Term which, when added to the portion of the Employment Term, if any, remaining when the notice is given or the termination occurs, equals three (3) months.  The payments provided for in this Section 3.17 are in lieu of any severance or income continuation or protection under any Company plan that may now or hereafter exist.  Employee shall be required to mitigate the amount
of any payment provided for in this Section 3.17 by seeking other employment or otherwise, and the amount of any such payment provided hereunder shall be reduced by any compensation earned by Employee from any third person.

 

3.18           The provisions of Sections 1.4 and 3.11-3.18 shall, without any limitation as to time, survive the expiration of Employee’s employment hereunder, irrespective
of the reason for any termination.

 

 

 

 

4.         Termination:

 

4.1           Voluntary Termination.   Employee
may voluntarily terminate his employment with the Company at any time upon at least ninety (90) days prior written notice, in which case this Agreement shall terminate on the 90th day from such notice, or such longer period as may be consented to in writing by the Company.  Upon such termination, the Company shall have no further obligations
under this Agreement, except to pay all amounts of Base Salary accrued, but unpaid, at the effective date of voluntary termination, and all reasonable unreimbursed business-related expenses, if any.

 

4.2           Disability.  In the event of the permanent disability (as hereinafter defined) of Employee during the Term of Employment,
the Company shall have the right, upon written notice to Employee, to terminate Employee’s employment under this Agreement, effective upon the 30th calendar day following the giving of such notice (or such later day as shall be specified in such notice).  Upon the effectiveness of such termination, (i) the Company shall have no further obligations under this Agreement, except as to pay and to provide, subject to applicable
withholding, (A) all amounts of Base Salary accrued, but unpaid, at the effective date of termination, (B) a lump sum amount equal to Employee’s then annual Base Salary, (C) a pro rata portion of Employee’s Quarterly Bonus or Target Bonus, as applicable, and (D) all reasonable unreimbursed business-related expenses, and (ii) Employee shall have no further obligations hereunder other than those provided for in Sections 1.4 and 3.18  of this Agreement.

 

All amounts payable to Employee pursuant to this Section 4.2 shall be payable within thirty  (30) days following the effective date of the termination of Employee’s employment.  For purposes of this Section, “permanent disability” shall be defined as any physical or mental disability or incapacity which
renders Employee incapable in any material respect of performing the services required of him in accordance with his obligations under Sections 1.1 and 1.5 for a period of one hundred and twenty (120) days, consecutive or otherwise, in any three hundred and sixty (360) day period.

 

4.3           Death.  In the event of the death of Employee during the Term of Employment, this Agreement shall automatically terminate
and the Company shall have no further obligations hereunder, except as to pay and provide to Employee’s beneficiary or other legal representative, subject to applicable withholding, (A) all amounts of Base Salary accrued but unpaid, at the date of death, (B) a pro rata portion of Employee’s Quarterly bonus or Target Bonus, as applicable, and (C) all reasonable unreimbursed  business-related expenses.  All amounts payable to Employee pursuant to this Section 4.3 shall be payable
within thirty (30) days following the Companies receipt of notice of date of death.

 

4.4           Cause.  The Company shall have the right, upon written notice to Employee, to terminate Employee’s employment under
this Agreement for Cause (as hereinafter defined);  In the event of a termination for cause, this Agreement shall terminate and the Employee shall be removed from office effective as of the date specified by the Company in the notice, and (i) the Company shall have no further obligations hereunder, except to pay all amounts of Base Salary, reimburse all reasonable unreimbursed business-related expenses and pay and provide all other benefits accrued to the date of termination and (ii) Employee shall
have no further obligations hereunder, except for those provided in Sections 1.4 and 3.18 hereof;  provided, however, that nothing contained in this Section 4.4 shall constitute a waiver or release by the Company of any rights or claims it may have against Employee for actions or omissions which give rise to a termination under this Section  4.4.

 

 

 

 

    For purposes of this Agreement, the term “Cause” shall mean:

 

	 	
(i)  
	
any act of fraud, embezzlement or dishonesty on the part of Employee with respect to the Company or any of its subsidiaries or Affiliates; or

 

	 	
(ii)  
	
any material breach by Employee of his obligations under this Agreement;  or

 

	 	
(iii)  
	
conviction of Employee of any felony; or

 

	
  
	
(iv)
	
a material breach of, or the failure or refusal by Employee to perform and discharge Employee’s duties, responsibilities or obligations under this Agreement (it being understood that no action or failure to act by Employee shall be considered to be Cause if such action or failure to act shall have been taken by Employee in good faith).

 

4.6                 Plan Benefits.  Upon any termination of Employee’s employment hereunder, the Company
shall pay Employee the amounts and shall provide all benefits generally available upon termination under any employee benefit plans, policies and practices of the Company, determined in accordance with the applicable terms and provisions of such plans, policies and practices.

 

5.         General

 

5.1           Governing Law. Venue The
laws of the State of Arizona shall govern the interpretation, construction and applicability of this Agreement in any arbitration or judicial proceeding.

 

5.2           Attorneys’ Fees. In the event that any legal (judicial or arbitral) proceeding
is instituted in connection with any controversy arising out of this Agreement or the enforcement of any rights hereunder, the prevailing party (as defined by the courts of Arizona) shall be entitled to recover, in addition to court and other costs, such sums as the court or arbitrator may decide are reasonable as attorneys’ fees.

 

5.3           Indemnification.  In the event Employee is made, or threatened to be made,
a witness or party to any civil, criminal or administrative action, proceeding or investigation of the fact that Employee is or was a director or officer of the Company, or serves on the Board of another corporation fifty percent (50%) or more owned by the Company in any capacity at the Company’s request, or serves or served as a director of any other corporation at the request, or serves as a fiduciary of any ERISA plan at the Company’s request, Employee shall be indemnified by the Company for all
amounts paid as a fine or settlement, including the cost of defense.

 

5.4           Waiver.  Neither party shall, by mere lapse of time, without giving notice
be deemed to have waived any breach by the other party of any of this Agreement.  Further, the waiver by either party of a particular breach of this Agreement shall be construed or deemed as a continuing waiver of such breach.

 

 

 

 

 

5.5           Entire Agreement. The parties agree that this instrument constitutes and contains the entire agreement between the parties concerning
the subject matter and contents of this Agreement, and that this instrument supersedes all prior negotiations, proposed agreement, or understandings, if any, between the parties concerning any of the provisions or contents of this Agreement.  No amendment to this Agreement shall be effective unless it is in writing and signed by a duly authorized representative of each of the parties to this Agreement.

 

5.6           Fair Meaning. The parties agree that the wording of this Agreement shall be construed as a whole according to its fair meaning, and not
strictly for or against the party that drafted this Agreement.

 

5.7           Counterparts.  This Agreement may be executed in any number of counterparts which shall be deemed an original, and all of which
taken together constitutes one and the same Agreement.

 

5.8           Severability.  The parties agree that if any provision of this Agreement should ever be declared or determined by any court
of competent jurisdiction to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby, and said illegal or invalid part, term or provision shall be automatically conformed to the law, if possible, or if not possible, be deemed to be stricken from this Agreement.

 

5.9           Waiver/Estoppel. Any party hereto may waive the benefit of any term, condition or covenant in this Agreement or any right or remedy
at law or in equity to which any party may be entitled, but only by an instrument in writing signed by the parties to be charged. No estoppel may be raised against any party except to the extent the other parties rely on an instrument in writing, signed by the party to be charged, specifically reciting that the other parties may rely thereon. The parties' rights and remedies under and pursuant to this Agreement or at law or in equity shall be cumulative and the exercise of any rights or remedies under any provision
hereof or rights or remedies at law or in equity shall not be deemed an election of remedies; and any waiver or forbearance of any breach of this Agreement or remedy granted hereunder or at law or in equity shall not be deemed a waiver of any preceding or succeeding breach of the same or any other provision hereof or of the opportunity to exercise such right or remedy or any other right or remedy, whether or not similar, at any preceding or subsequent time.

 

5.10         Notices. Any notice that the Company is required to give or may desire to give to Employee hereunder shall be in writing and may be served
by delivering it to Employee, or by sending it to Employee by certified mail, return receipt requested (effective five days after mailing) or overnight delivery of the same by delivery service capable of providing verified receipt (effective the next business day), or facsimile (effective twenty-four hours after receipt is confirmed by person or machine), at the address set forth below, or such substitute address as Employee may from time to time designate by notice to the Company. Any notice that Employee is
required or may desire to serve upon the Company hereunder shall be in writing and may be served by delivering it personally or by sending it certified mail, return receipt requested or overnight delivery, or facsimile (with receipt confirmed by person or machine) to the address set forth below, or such other substitute address as the Company may from time to time designate by notice to Employee. Such notices by Employee shall be effective at the same times as specified in this Section 5.10 for notices by the
Company.

 

 

 

 

 

5.11         Captions. The paragraph headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation
of this Agreement.

 

5.12         No Partnership or Joint Venture. Nothing herein contained shall constitute a partnership between or joint venture by the parties hereto.

 

5.13         Assignability.  Successors.

 

          (a)  The obligations of employee may not be delegated and, except as expressly
provided in this Section 5.13 relating to the designation of beneficiaries, Employee may not, without the Company’s prior written consent thereto, assign, transfer, convey, pledge, encumber, hypothecate or otherwise dispose of this Agreement or any interest herein.  Any such attempted delegation or disposition shall be null and void and without effect.  Provided however, that Employee may assign all or any portion of his rights to receive compensation hereunder to any corporation of
which at least fifty percent (50%) of the capital stock of which is owned or controlled by Employee, to any other entity in which Employee owns or controls at least fifty percent (50%) of the total ownership interests, to trusts for the benefit of the family of Employee, to charitable trusts or to trusts for the benefit of any charitable purpose, or to any charity or non-profit organization. Notwithstanding any other provision hereof, Employee shall not be permitted to establish loan-out companies to provide
his services to the Company and assign this Agreement thereto.

 

     (b) The Company and Employee agree that this Agreement and each of the Company’s rights and obligations
hereunder may be assigned or transferred by the Company to, and shall be assumed by and be binding upon, any Successor to the Company.  The term “Successor” shall mean any corporation or other business entity which succeeds to the assets or conducts the business of the Company, whether directly or indirectly, by purchase, merger, consolidation or otherwise.  In the event another corporation or other business entity becomes a Successor of the Company, then the Successor shall expressly
assume and agree to perform this Agreement in the same manner and to the same extent as the Company is required to perform if there had been no merger.

 

 

 

 

5.14         No Mitigation; No Offset. Without limiting any other provision hereof, the Company agrees that any income and other employment benefits received
by Employee from any and all sources (other than as set forth in Section 5.2) before, or during this Agreement shall in no way reduce or otherwise affect the Company's obligation to make payments and afford benefits hereunder.

 

6.         Arbitration.

 

    (a)            In the event of any controversy arising from or concerning the interpretation of this Agreement or its subject matter (including, without limitation, the interpretation, application, or enforceability of this Agreement or the arbitrability of the controversy),
the parties agree that such controversy shall be resolved exclusively by binding arbitration before a single neutral arbitrator selected jointly by the parties.  The Company and Employee shall each be responsible for 50% of the fees and expenses of the arbitrator.  Each party shall be responsible for its own attorneys’ fees and any other costs arising from the arbitration, without regard to which party thereto prevails.  Provided however, that the arbitrator may award attorneys’
fees and costs to the prevailing party.  The parties to the arbitration shall have all rights, remedies, and defenses available to them in a civil action before a court.  If, for any legal reason, a controversy arising from or concerning the interpretation, application, or enforceability of this Agreement requires judicial intervention, the parties agree that the controversy shall be brought in the Maricopa County Superior Court or the U.S. District Court for the District of Arizona.

 

    (b)           The parties hereby waive and agree not to assert (by way of motion, as a defense or otherwise) (a) any and all objections to jurisdiction that they may have under the laws of the State of Arizona or the United States, and (b) any claim (i) that it or
[he/she] is not subject personally to jurisdiction of such court, (ii) that such forum is inconvenient, (iii) that venue is improper, or (iv) that this Agreement or its subject matter may not for any reason be arbitrated or enforced as provided in this Section 6.0 (b).

 

    (c)           Within ten (10) business days after receipt of the notice submitting a dispute or controversy to arbitration, the parties shall attempt in good faith to agree upon an arbitrator to whom the dispute will be referred and on a joint statement of contentions.
Each party hereby agrees that service of process in such action will be deemed accomplished and completed when a copy of the documents is sent in accordance with the notice provisions in Section 5.10 hereof.

 

    (d)           The arbitration shall be held within sixty (60) days of the appointment of the arbitrator.  Discovery shall be conducted in accordance with the Arizona Rules of Civil Procedure regarding discovery. The arbitrator shall establish the discovery
schedule promptly following submission of the joint statement of contentions (or the filing of the answer to the demand for arbitration) which schedule shall be strictly adhered to. To the extent the contentions of the parties relate to custom or practice in the Company’s business model, or the technical industry generally, or to accounting matters, each party may select an independent expert or accountant (as applicable) with substantial experience in the industry segment involved to render an expert opinion
or opinions. All decisions of the arbitrator shall be final and in writing.  The arbitrator shall make all rulings in accordance with Arizona law and shall have authority equal to that of a Superior Court judge, to grant equitable relief in an action pending in Superior Court in which all parties have appeared.

 

 

 

 

7.             Contractual Nomenclature. All references herein to "Dollars" or "$" shall
mean Dollars of the United States of America, its legal tender for all debts public and private. Wherever used herein and to the extent appropriate, the masculine, feminine or neuter gender shall include the other two genders, the singular shall include the plural, and the plural shall include the singular.

 

8.             Publicity. Neither party shall issue any press release or announcement of or relating to the execution of, or any terms, provisions
or conditions contained in this Agreement without the other party's prior approval of the content and timing of any such announcement or announcements.

 

9.             Proof of Right to Work.  For purposes of federal immigration law,
Employee will be required to provide the Company with documentary evidence of his identity and eligibility for employment in the United States within three (3) business days of Employee’s date of hire; otherwise, the Company may terminate the employment relationship and this Agreement.

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

 

Alternative Energy Development Corporation, a Nevada Corporation

 

 

By: JERRY ALVAREZ

      Jerry Alvarez, President, Director

 

 

Employee

 

By: SAM MESSINA III

      Sam Messina III, an Individual

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