Document:

QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.20  

 
 

INVESTMENT ADVISORY AGREEMENT    
    

        This Investment Advisory Agreement (the "Agreement") is entered into as of this 24th day of July, 2006 between Clean Energy Fuels Corp., a Delaware corporation
("Client") and BP Capital LP, a Texas limited partnership ("Advisor"). 

RECITALS 

        WHEREAS,
Client executed a Trading Authorization dated July 24, 2006 in favor of Boone Pickens, the Managing Member of the general partner of Advisor ("Pickens"), pursuant to which
Client appointed Pickens to act as its agent for the purpose of entering into and executing spot and forward purchase and sales agreements, swap transactions and other derivative transactions in
natural gas ("Transactions"). 

        WHEREAS,
Client and Sempra Energy Trading Corp. ("Sempra") entered into an ISDA Master Agreement and Schedule dated March 23, 2006 to govern Transactions between Client and
Sempra, and Client may in the future enter into agreements with other counterparties to engage in Transactions from time to time. 

        WHEREAS,
Pickens executed a Guarantee dated March 23, 2006 (the "Guarantee") in favor of Sempra pursuant to which Pickens guaranteed the payment of all obligations of Client owing
to Sempra arising from any Transactions between Client and Sempra and in consideration for which Client was afforded lower margin requirements than Client could otherwise have obtained in the absence
of such Guarantee. 

        WHEREAS,
Client desires to appoint and retain Advisor to act as investment advisor in connection with Transactions entered into in accordance with Client's Natural Gas Hedging Program
dated July 24, 2006, a copy of which is attached hereto as Exhibit A (the "Hedging Program"), and Advisor is agreeable to acting in such capacity, upon the terms and conditions
hereinafter set forth. 

        NOW,
THEREFORE, it is hereby agreed as follows: 

        1.    Appointment of Investment Advisor.    Client does hereby appoint and retain Advisor to act as Client's
investment advisor in connection with Client's natural gas hedging activities and other marketing activities in the natural gas futures markets. Advisor hereby accepts the appointment and agrees to
provide such investment advisory services. 

        2.    Services of Advisor.    By execution of this Agreement, Advisor accepts the appointment as investment advisor
and agrees to advise Client with respect to its utilization of the energy derivative markets for the purpose of reducing exposure to fluctuations in the commodity price of natural gas. Advisor will
meet with Client from time to time and will advise Client as to Advisor's views with regard to the natural gas markets. Advisor will assist Client in implementing the goals and objectives of Client's
Hedging Program, provided that Advisor does not assume responsibility for establishing the policies or methods by which Client intends to carry out the goals or objectives of its hedging activities.  Advisor shall have no
discretion to enter into any Transaction for the account of Client and shall only do so upon the express direction of Client.

        3.    Limit of Liability.    Client recognizes and acknowledges the market fluctuation risks which are inherent in
Transactions. 

        (a)   Client
shall, to the fullest extent permitted by law, indemnify Advisor and each officer, director, member, partner, employee, affiliate, agent and representative of
Advisor (collectively, the "Indemnitees") against, and Client will hold harmless each Indemnitee from, any and all Losses (as defined below), including any incurred in connection with any action,
claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency, body or commission, whether
pending or 

 

threatened,
whether or not any Indemnitee is or may be a party thereto which arise out of, relate to or are in connection with the provision of any services hereunder or otherwise relate to this
Agreement except for any Losses that are found by a court of competent jurisdiction or arbitrator to have resulted primarily from the gross negligence or willful misconduct of any of the Indemnitees.
The term "Losses" shall mean all losses, claims, damages or liabilities of each Indemnitee, joint or several, and all judgments, fines, penalties, interest and charges, and all costs and expenses
incurred in connection with the investigation, defense or settlement of any pending or threatened claims (including, without limitation, attorneys' fees and expenses related thereto). In no event
shall any party to the Agreement be liable for any indirect, special or consequential damages arising out of or in connection with this Agreement. 

        (b)   The
termination of any proceeding by settlement shall not, of itself, create a presumption that the Indemnitee acted in a manner which constituted negligence, willful
misconduct or a knowing violation of law. The right of any Indemnitee to the indemnification provided herein shall be cumulative of, and in addition to, any and all rights to which such Indemnitee may
otherwise be entitled by contract or as a matter of law or equity and shall extend to his heirs, successors, assigns and legal representatives. 

        (c)   Promptly
after receipt by an Indemnitee hereunder of written notice of the commencement of any action or proceeding with respect to which a claim for indemnification may
be made pursuant to this Section 3, such Indemnitee will, if a claim in respect thereof is to be made against Client, promptly give written notice to Client of the commencement of such action;  provided that the failure of any Indemnitee to give notice as provided herein shall not relieve Client of its obligations under this Section 5,
except to the extent that Client is actually and materially prejudiced by such failure to give notice. In case any such action is brought against an Indemnitee, unless in such Indemnitee's reasonable
judgment a conflict of interest between Indemnitee and Client may exist in respect of such claim, Client will be entitled to participate in and to assume the defense thereof, to the extent that it may
wish, with counsel reasonably satisfactory to such Indemnitee, and after notice from Client of its election to assume the defense thereof, unless in such Indemnitee's reasonable judgment a conflict of
interest between the Indemnitee and Client arises in respect of such claim after the assumption of the defense thereof (in which case, Client shall not assume the defense thereof, but shall be
responsible for the fees and expenses of one counsel in each jurisdiction for all parties indemnified by Client, subject to the same exception as is set forth in the last sentence of this subsection
3(c)), Client will not be liable to such Indemnitee for any legal or other expenses subsequently incurred by the Indemnitee in connection with the defense thereof and Client will not be subject to any
liability for any settlement made without its consent (which consent shall not be unreasonably withheld). Client will not consent to entry of any judgment or enter into any settlement (i) which
does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnitee of a release from all liability in respect to such claim or litigation, and
(ii) that imposes any obligation on an Indemnitee (except any obligation to make payments which Client shall, and promptly does, pay). If Client elects not to assume the defense of a claim, it
will not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by Client with respect to such claim, unless in the reasonable judgment of any Indemnitee a
conflict of interest may exist between such Indemnitee and any other of such Indemnitees with respect to such claim, in which event Client shall be obligated to pay the fees and expenses of such
additional counsel or counsels. 

        (d)   Notwithstanding
any termination of this Agreement the indemnification provided under this Agreement shall remain in full force and effect for a period of
18 months after the date of termination. 

        (e)   No
Indemnitee shall be liable to Client or its subsidiaries for any error of judgment or mistake of law or for any loss incurred by Client or its subsidiaries or any of
their respective 

2

 

affiliates
in connection with the matters to which this Agreement relates, except for any damages that are found by a court of competent jurisdiction or an arbitrator to have resulted primarily from
the gross negligence or willful misconduct of an Indemnitee. In no event shall any party to this Agreement be liable for any indirect, special or consequential damages arising out of or in connection
with this Agreement. 

        4.     Compensation
and Expenses. 

        (a)   In
consideration of the services to be provided by Advisor to Client, Client shall pay Advisor a monthly fee equal to $10,000.00 (the "Monthly Fee"). The Monthly Fee
shall be due and payable on or before the tenth (10th) day of the month immediately following the month for which such fee is due and payable. 

        (b)   In
addition to the Monthly Fee, Client shall pay Advisor a performance fee equal to twenty percent (20%) of any realized gains, net of twenty percent (20%) of any
realized losses, arising from Transactions closed out at any time during a calendar year (the "Performance Fee"). Distributions of any net gains shall be made by Advisor to Client on or before the
tenth (10th) day of the month immediately following the month in which any closed Transactions occur. The Performance Fee shall be deducted from any such distribution prior to payment to Client. If at
the end of any month of a calendar year (including the last month of such calendar year), Advisor and Client mutually determine that Client incurred realized losses on Transactions closed out during
such month that would otherwise have resulted in a reduction in the amount of Performance Fees actually paid to Advisor in previous months in such calendar year (the "Excess Performance Fees"), then
Advisor shall promptly remit to Client the amount of such Excess Performance Fees. By way of example, if in the first 6 months of a calendar year Client had distributable realized gains of $20
million, the Performance Fee payable to Advisor for such 6 month period would equal $4 million (20% of $20 million). If in the seventh month of such calendar year Client had realized losses of
$10 million, the net realized gains for such seven month period would equal $10 million resulting in a Performance Fee for such period of $2 million (20% of $10 million). In that
instance, Advisor would be obligated to remit to Client Excess Performance Fees in the amount of $2 million on or before the 10th day of the eighth month of such calendar year. At no time shall
the Performance Fee for a calendar year as a whole be reduced to an amount less than zero. The Performance Fee shall be calculated as provided above based upon realized gains and losses in a calendar
year and shall not be carried forward to subsequent calendar years or carried back to previous calendar years. 

        (c)   During
the term of this Agreement, Client shall also pay or reimburse Advisor for all its expenses, including all fees, costs and expenses reasonably incurred in the
provision of the services under this Agreement, including, without limitation: (i) all fees and expenses of legal counsel, accountants and other experts and consultants retained by Advisor in
connection with its provision of services hereunder, (ii) all travel and other out-of-pocket cost and expenses incurred by Advisor in connection herewith, and
(iii) all Losses that are the subject of indemnification pursuant to this Agreement. Client shall reimburse Advisor promptly for all expenses upon Advisor's presentation of invoices or other
documents reasonably evidencing such expenses. 

        5.    Assignment.    This Agreement shall be binding upon and inure to the benefit of the parties and their legal
representatives, heirs, administrators, executors, successors and assigns. Nothing in this Agreement, express or implied, is intended or shall be construed to give any person other than the parties to
this Agreement and their respective successors or permitted assigns, any legal or equitable right, remedy or claim under or in respect of any agreement or any provision contained herein. Without the
prior written consent of the other party, neither party shall be entitled to assign its rights and obligations under this Agreement. 

3

 

        6.    Term.    This Agreement shall commence on the date hereof and continue for a period of two (2) years
following the date hereof; provided, however, that either party hereto may terminate this Agreement at anytime upon thirty (30) days written notice to the other party. Notwithstanding the
foregoing, neither Pickens nor Advisor shall terminate the Guarantee (or any other guarantee entered into by Pickens or Advisor on behalf of Client) without 90 days prior notice to Client. 

        7.    Notices.    Any notice required or permitted by this Agreement shall be valid if personally delivered, in
writing, to the party for whom it is intended, at the address set forth on the signature page hereof or if sent to such a party at the same address by personal delivery by a nationwide delivery
service, facsimile, telegram, or certified mail, return receipt requested, postage prepaid. Notice shall be effective upon receipt thereof. 

        8.    Attorneys' Fees.    In the event of any litigation or arbitration of this Agreement, the prevailing party,
whether or not such litigation or arbitration proceeds to final judgment or determination, shall be entitled to recover all of the attorneys' fees incurred with respect to such legal efforts, in each
and every action, suit or other proceeding, including any and all appeals or petitions therefrom. As used herein, the term "attorneys' fees" shall be deemed to mean the reasonable cost of any legal
services actually performed in connection with the matters involved, calculated on the basis of usual fees charged by attorneys performing these services. 

        9.     Miscellaneous.

        (a)   This
Agreement may be amended at anytime but only by the mutual agreement of the parties, in writing. 

        (b)   This
Agreement shall be construed and interpreted in accordance with the laws of the State of Texas. 

        (c)   This
Agreement constitutes the entire agreement between the parties and supersedes in their entirety all prior agreements between the parties relating to the subject
matter hereof. 

        (d)   This
Agreement may be executed in multiple counterparts, each of which shall be considered to be an original. 

        (e)   If
any provision of this Agreement, or the application of such provision to any person or circumstance, shall be held invalid, the remainder of this Agreement, or the
application of such provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby. 

        (f)    No
provision of this Agreement shall be deemed to have been waived unless such waiver is contained in a written notice given to the party claiming such waiver, and no
such waiver shall be deemed to be a waiver of any other or further obligation or liability of the party or parties in whose favor the waiver was given. 

        (g)   This
Agreement supercedes and replaces in its entirety that certain Investment Advisory Agreement dated September 19, 2001 between PFCeFuels, Inc. (as
predecessor to Client) and BP Capital, LLC (as predecessor to Advisor). 

4

 

        EXECUTED
on the date first above written. 

	 	 	BP CAPITAL LP
	 	 	 	 	 
	 	 	 	 	 
	 	 	By TBP Management, LLC, as General Partner
	 	 	By:	 	Boone Pickens
	 	 	Title:	 	Member
	 	 	BP Capital LP

Preston Commons West

8117 Preston Road

Dallas, Texas 75225

Attention: Danny Tillett

Telephone: (214) 265-4165

Telecopy: (214) 750-9773
	 	 	 	 	 
	 	 	CLEAN ENERGY FUELS CORP.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	Andrew J. Littlefair
	 	 	Title:	 	President & Chief Executive Officer
	 	 	 	 	 
	 	 	Clean Energy Fuels Corp.

3030 Old Ranch Parkway

Suite 280

Seal Beach, California 90470

Attention: Andrew J. Littlefair

Telephone: (566) 493-2804

Telecopy: (566) 493-4532

5

 
EXHIBIT A

HEDGING PROGRAM  

CLEAN ENERGY FUELS CORP.

NATURAL GAS HEDGING POLICY

JULY 24, 2006  

Objective:  

        Utilize energy derivative markets to reduce exposure to fluctuations in the commodity price of natural gas. 

Principles:  

	1.
	Clean
Energy will not speculate in energy futures markets.

	2.
	Clean
Energy will evaluate on a regular basis the merits of implementing or discontinuing futures contracts which match to its customer "fixed price" contracts and portions of its
retail customer supply values.

	3.
	Clean
Energy will honor all controls that are built into the investment advisory agreement with its hedging consultant.

	4.
	Clean
Energy will take advice on its hedging activities from its hedging consultant which is intended to minimize down side risk on its natural gas commodity exposure with the
flexibility of taking advantage of anticipated trends in natural gas pricing.

	5.
	Clean
Energy will keep its Board updated on hedging activities and generate reports to be distributed quarterly. 

6

QuickLinks

INVESTMENT ADVISORY AGREEMENTVella Productions Inc. - Exhibit 10.1

DISTRIBUTOR AND MARKETING AGREEMENT

THIS AGREEMENT made this 10th day of July, 2006

BETWEEN:

SPIKE TEA, INC. a corporation having its principal
office at Suite 700, One Executive Place 1816 Crowchild Trail N.W., Calgary,
Alberta T2M 3Y7 Canada ("Spike" or “Manufacturer”)

And

VELLA PRODUCTIONS INC. having it's principal office at
999 3rd Avenue, Suite 3800, Seattle, WA 98104 U.S.A. (“Vella” or
“Distributor”)

WHEREAS, Spike is developing a proprietary line of six
tea blends for distribution in retail and foodservice channels for launch in the
fourth quarter of 2006.

WHEREAS, Vella provides marketing and distribution
assistance.

WHEREAS, the Parties mutually desire to establish a
preferred marketing and distribution relationship with each other in order to
establish the Spike’s product as a category leader in specialty tea
category.

THIS AGREEMENT WITNESSETH THAT in consideration of the
mutual covenants and agreements set forth below, the parties covenant and agree
as follows:

1. DEFINITIONS

For the purposes of this Agreement, the following terms shall
have the meanings set forth below:

1.1 "Products" means the blends of tea and caffeine-free drinks
ready for retail sales and distribution sold under the name “Fully Loaded by
Spike Tea” (Trade Mark Spike).

1.2 "Market" mean those parties within the "Territory" who can
be identified as seeing value in the "Products" by Vella.

1.3 "Territory" means the United States of America and
Canada.

1.4 "Trade Marks" means the trademark “Fully Loaded by Spike
Tea” (Pending), together with such other trademarks, service marks, trade dress,
logos, brand names and/or trade names of Spike, as the parties may add
subsequently by mutual agreement in writing.

1.5 “Product Year” means each twelve (12) month period during
the Term commencing with the first day of the first full month in which a
commercial sale of the Products shall occur, provided, that the first Product
Year shall include any portion of the month preceding the first Product
Year.

2. MARKETING AND DISTRIBUTION

2.1 Subject to all terms and conditions set forth herein, Spike
hereby appoints Vella as a distributor of the Products to customers within the
Market in consideration of the following:

a) Cash payments as follows:

	 	i) 	
      $3,000 (three thousand dollars) upon signing of this
      Agreement;

	 	ii) 	
      $25,000 (twenty five thousand dollars) on or before
      November 30, 2006; and

	 	iii) 	
      $25,000 (twenty five thousand dollars) on or before
      February 28, 2007.

b) Vella incurring minimum marketing expenses minimum of
$250,000 USD (two hundred and fifty thousand) over the initial five year term of
this Agreement.

2.2 On or before September 30, 2006, Vella shall deliver to
Spike a written marketing plan for the Products for the first three (3) Product
Years. The Marketing Plan shall be set forth in reasonable and customary detail,
and shall include in such plans commercially reasonable descriptions of intended
pre-marketing and marketing investments, tactics and efforts, promotion and
distribution efforts and mechanisms, compilations of market research and
analysis performed for or by Vella, and any other matters relevant to marketing,
promotion and sale of the Products.

2.3 Upon receipt of marketing plan, Spike agrees to review,
amend and finalize the marketing plan proposed by Vella on or before October 31,
2006. Upon acceptance of the marketing plan by Spike and Vella, the following
obligations shall become effective:

VELLA:

	 	a) 	
      Vella shall be responsible for all aspects of planning
      and executing of the marketing plan for the duration of this Agreement,
      including payment for contract obligations and related expenses.

	 	 	 
	 	b) 	
      Vella agrees to participate, either directly or by
      retaining outside contractors in any aspect related to the execution of
      the marketing plan, including but not limited to: media buying, public
      relations, market research, search engine optimization, search engine
      marketing, viral marketing, trade show exhibits, shopping engine
      management, Web analytics, path analysis and visitor relationship
      management, print advertising, one to one marketing and direct
  mail.

SPIKE:

	 	c) 	
      Spike agrees to review and evaluate Vella’s activities
      pertaining to execution of the marketing plan. Spike agrees that Vella
      shall make the final decision and have final approval pertaining to each
      individual contract and opportunity with the understanding of achieving
      the goals set out in the marketing plan.

	 	 	 	 
	 	d) 	
      Spike agrees to support Vella’s activities by
      providing:

	 	 	 	 
	 		i) 	
      Best possible delivery time on stock;

	 		ii) 	
      Any information available to Spike describing the
      competitive market in the category;

	 		iii) 	
      Information and training in the specialty tea product
      category; and

	 		iv) 	
      Assistance and guidance with directing the marketing
      efforts to reach the target audience.

2.4 Vella will contact and market the Products to distributors,
retail and foodservice locations in the Territory on behalf of Spike. Vella will
initiate sales contracts, negotiate terms and draft initial sales agreements and
purchase orders. Vella will submit first draft of any sales agreement 

and purchase order to Spike for review and approve. The final transaction will take place between Spike and the third party.

3 RIGHT TO USE TRADE MARKS

3.1 Spike hereby grants to Vella for the term of this Agreement, and subject to the terms and conditions herein, a non-exclusive, non-transferable right to use the Trade Marks within the Territory in connection with the Products sold by Vella in the
Territory in accordance with the terms of this Agreement, in the manner as approved by Spike in writing by an authorized officer of Spike prior to each type of usage (e.g., co-branding, advertising, Packaging). Such approval shall not be
unreasonably withheld.

     3.2 Vella shall use the Trade Marks only in the Territory and only in connection with the marketing, use, sale and distribution of the Products. Vella acknowledges Spike's right, title and interest in and to the Trade
Marks and agrees to make no use of any of the Trade Marks except as herein specifically provided. Vella shall use or display the Trade Marks only in conjunction with such words as indicate that the Trade Marks are the property of Spike. Vella
acquires no right, title or interest in or to the Trade Marks hereunder and any and all goodwill associated with the Trade Marks will inure exclusively to the benefit of Spike and its licensors. During the term of this Agreement and after
termination hereof, Vella shall not dispute or contest, for any reason whatsoever, directly or indirectly, the validity, ownership or enforceability of any of the Trade Marks. Vella shall execute such documents and do all such acts and things as may
be necessary in Spike's reasonable opinion to establish ownership of any rights in and to the Trade Marks.

3.3 Vella agrees that if it is notified or otherwise obtains knowledge of any alleged infringement of the Trade Marks, Vella will promptly notify Spike. No legal proceedings shall be instituted by Vella against any third party in respect of any such
alleged infringement without the prior written consent of Spike.

4 OTHER RIGHTS

4.1 Rights of Vella. Subject to Section 2 hereof, Vella shall have the right to market, distribute or sell the Products within the defined Territory, including, without limitation (a) the right to market, distribute or sell the Products, on a
stand-alone basis in packages as approved in writing by SPIKE, and (b) the right to market, distribute or sell the Products in combination with (i) products the right to use of which has been obtained by Vella from third parties (ii) products
developed or provided directly by Vella subject to Spike prior written approval in each instance and/or (iii) any other product mutually agreed upon by the parties to this Agreement. Distributor will not modify Product or Product packaging in any
way without prior written approval by Spike.

4.2 Vella cannot make any changes to the Products or their packaging without the prior written consent of Spike.

5 TERM

5.1 This agreement shall be effective on the date first set forth above and shall continue in effect until the fifth anniversary of the date hereof, unless earlier terminated in accordance with the provisions of Section 20 hereof. The terms and
conditions of this Agreement shall continue to apply to any purchase order issued under the normal course of business hereunder ("Purchase Order") until final delivery is made even if such delivery is made after this Agreement terminates.

5.2 This Agreement will be renewed automatically for the period of one year unless terminated by the parties. 

6 PAYMENT TERMS

6.1 In consideration of the obligations undertaken by Vella hereunder, Spike shall pay Vella commission at the rate of 7.5% of gross sales resulting from the sale of the Products. Payment will be made to Vella within 45 days of a quarter end. 

7 TITLE AND RISK OF LOSS

Title to all Products belongs to Spike. 

8 EXPENSES

Vella shall pay all costs and expenses incurred by its organization and/or its employees, agents and representatives.

9 CONFIDENTIAL INFORMATION

9.1 Vella shall not utilize or disclose any confidential information, knowledge, or data concerning inventories, improvements, business, production methods, and/or trade secrets of SPIKE (the "Confidential Information"), except as SPIKE may
otherwise consent to in writing or unless the same information has become public knowledge through no fault by Vella.

9.2 SPIKE shall not utilize or disclose any confidential information, knowledge, or data concerning inventories, improvements, business, production methods, customer information and/or data and/or trade secrets of Vella, except as Vella may
otherwise consent to in writing or unless the same information has become public knowledge through no fault by SPIKE.

10 DISTRIBUTOR'S DUTIES

10.1 Vella will use its best efforts to actively promote the marketing, sales, and distribution of Products.

10.2 Vella will provide prompt and effective service to customer orders, questions, and problems.

10.3 Vella will uphold Spike's image by handling claims, complaints, and customer service issues expeditiously and professionally so that Spike’s Trade-marks will retain their value in the market place.

10.4 On a quarterly basis, Vella will submit to Spike a comprehensive sales forecast covering the next six (6) month period for all Products.

10.5 On a quarterly basis, Vella will supply Spike with information summarizing significant marketing activity, trends and conditions.

10.6 Vella will use best efforts to promote the Products through media advertising, trade shows, internet, seminars, public relations activities, direct sales or any other means designed to bring them to the attention of potential customers.

10.7 Vella will keep Spike informed regarding conditions in the Territory relevant to the sale of the Products, including marketing trends, competing products, rules and regulations affecting the sale or use of the Products and all extraordinary
events relating to the Products.

10.8 Vella will refer to Spike all inquiries regarding the sale or use of the Products outside the Territory.

10.9 Except with the prior written approval of Spike, Vella shall not proceed with negotiation of sales contracts or purchase orders with purchasers who are located outside the Market or the Territory unless otherwise agreed by Spike. Spike will
allow Distributor to make sales to other territories so long as there is no exclusive distributor with marketing or sales activities being implemented in those territories.

10.10 Vella hereby represents and warrants to and covenants with Spike that Vella is and shall be for so long as the Agreement is in effect, in compliance with all federal, state and local laws, regulations, orders, decrees, rulings and judgments
applicable to Vella's ability to perform its obligations hereunder.

11 MANUFACTURER RESPONSIBILITIES

11.1 Spike will provide the Products to Vella upon request.

11.2 Spike will provide support to Vella during normal business hours of Spike.

11.3 Spike will use reasonable efforts to provide assistance to Vella in special customer situations, when so requested, subject to the availability of Spike's own resources.

11.4 Spike will support Vella by assisting in sales and marketing through joint calls and literature, at times reasonably satisfactory to Spike.

11.5 Spike hereby represents and warrants to and covenants with Vella that Spike is and shall be for so long as this Agreement is in effect, in compliance with all federal, state and local laws, regulations, orders, decrees, rulings and judgments
applicable to Spike's ability to perform its obligations hereunder.

12 RESTRICTIONS ON AUTHORITY

12.1 Vella has no authority, under any circumstances, either expressed or implied, to incur any liability or obligations on behalf of Spike, including, but not limited to:

12.2 Making any quotations on any special Products, modifications to standard Products without a written quotation from Spike;

12.3 Binding Spike to any contract of employment. Vella is solely responsible for its own sales persons and its representatives, and for their actions. Vella has no authority to endorse checks or commercial papers, or to carry any accounts in the
name of Spike;

 12.4 Making any warranties or representations to third parties
  with regard to the Products without Spike's prior written approval.

13. INSPECTION BY MANUFACTURER

Vella agrees that Spike shall have the right to inspect the manner of use of the Trade Marks and Confidential Information (as herein defined) by Vella and the quality of distribution of the Products in connection with which the Trade marks and the
Confidential Information are used. Vella also agrees that Spike shall have the right to review any documents or items which are to be made available to the public which contain the Trade Marks and Confidential Information, including, without
limitation, advertising, promotional materials and devices and contract forms. Spike agrees to designate an employee to review all such documents or items. Vella shall consult regularly with Spike's designated representative on the proper and
appropriate use of the Trade Marks and Confidential Information in all such documents or items and shall submit representative samples thereof for written approval.

14 INDEMNIFICATION BY VELLA AND BY SPIKE

14.1 Vella agrees, during and after the term of this Agreement, to indemnify and to hold Spike harmless from and against any and all loss, damage, liability and costs and expenses (including reasonable attorney's fees and expenses) in connection
therewith incurred by Spike as a result of any breach of this Agreement by, or any act of omission or commission on the part of, Vella or any of its agents, servants or employees, from all claims, damages, suits or rights of any persons, firms or
corporations arising from the operation of the business of Vella.

14.2 Spike agrees, during and after the term of this Agreement, to indemnify and to hold Vella harmless from and against any and all loss, damage, liability and costs and expenses (including reasonable attorneys' fees and expenses) in connection
therewith incurred by Vella as a result of any breach of this Agreement by, or any act of omission or commission on the part of, Spike or any of its agents, servants or employees, from all claims, damages, suits or right of any persons, firms or
corporations arising from the operation of the business of Spike.

15 RESERVATION OF RIGHTS BY MANUFACTURER

Spike reserves the right, in its sole discretion and without thereby incurring any liability to Distributor, to modify the Products as it sees fit during the term of the Agreement. Modification of the "Products" may be implemented for many reasons
including improving flavor, packaging appeal, changing ingredients and other components of the tea blends.

16 FORCE MAJEURE

Spike and Vella shall not be liable for delays or failure to fulfill the terms of this Agreement due to causes beyond their reasonable control. Such causes may include, but are not restricted to Acts of God, fires, floods, strikes, accidents, riot,
war, government interference, rationing allocations and embargoes. In the event of a delay, the date or dates for performance of this Agreement shall be extended for a period equal to the time lost by reason of delay, provided that either party who
is not affected by any of such causes may terminate the Agreement immediately upon written notice to the other party should any of such causes last over 60 days.

17 INDEMNITY

17.1 Spike agrees to defend Vella in any suit brought against it alleging that the Products sold hereunder, uncombined with non-Spike equipment directly infringe United States Patent, United States Trademark, United States Copyright or other United
States intellectual property right owned by others, provided Spike is promptly notified, given assistance required and permitted to direct the defense. Further, Spike will pay any judgment based on such infringement, rendered in 

such by final judgment of a court of last resort, but shall have no liability for settlements or costs incurred without its written consent.

17.2 The foregoing constitutes the entire liability of Spike for any infringement of any intellectual property of a third party. 

18 CONSEQUENTIAL DAMAGES

18.1  In no event shall Spike be liable to Vella or to Vella's employees, officers, directors, shareholders, customers or affiliates for any incidental or consequential damages, including, without limitation, or any loss, damage, claim, liability or
expense, of any kind or nature, caused directly or indirectly by the furnishing of Products or marketing materials pursuant to this Agreement, or by any interruption of service, or loss of use thereof or for any loss of business or damage to Vella
or end user whatsoever and however caused, even Spike is aware of the risk of such damages.

20.2 In no event shall Vella be liable to Spike or to Spike's employees, officers, directors, shareholders, customers or affiliates for any incidental or consequential damages, including, without limitation, or any loss, damage, claim, liability or
expense, of any kind or nature, caused directly or indirectly by the furnishing of Products pursuant to this agreement, or by any interruption of service, or loss of use thereof or for any loss of business or damage to Spike or end user whatsoever
and however caused, even if Distributor is aware of the risk of such damages.

19 TERMINATION OR CANCELLATION

The term of this agreement shall be for an initial period of five (5) years from its Effective Date as the date appears on the first page, and in the event that Vella faithfully performs its entire obligation required hereby. At any time during the
initial term or any extended term of this Agreement either party shall have termination right except for the reason as stated in Section 19.1

19.1 Termination by Vella. Vella may, upon ten (10) days prior written notice to Spike, terminate this Agreement if:

19.1.1 Spike fails to perform any material provision of this Agreement for thirty (30) days after written notice of such failure has been provided by Vella to Spike and fails to cure such failure within such thirty (30) day period; or

19.1.2 Any receiver of any property of Spike shall have been appointed; Spike shall have made an assignment for the benefit of creditors; Spike shall have made any assignment or have had a receiving order made against it under the applicable
bankruptcy laws; Spike shall have become bankrupt or insolvent; Spike shall have made application for relief under the provisions of any statute now or hereafter in force concerning bankrupt or insolvent debtors; or any action whatever, legislative
or otherwise, shall have been taken with a view to the winding up, dissolution or liquidation of Spike.

19.2 Termination by Spike. Spike may, by ten (10) days prior written Notice to Vella, terminate this Agreement if Vella fails to:

19.2.1 Perform any material provision of this Agreement for thirty (30) days after written notice of such failure has been provided by Spike to Vella; or

19.3 Any receiver of any property of Vella shall have been
appointed; Vella shall have made an assignment for the benefit of creditors;
Vella shall have made any assignment or have had a receiving order made against
it under the applicable bankruptcy laws; Vella shall have become bankrupt or
insolvent; Vella shall have made application for relief under the provisions of
any statute now or hereafter in force concerning bankrupt or insolvent debtors;
or any actions whatever, legislative or otherwise, shall have been taken with a
view to the winding up, dissolution or liquidation of Vella.

19.4 Continuing Obligations

19.4.1 In the event of the termination of this Agreement for
any reason, all rights and interest granted to Vella by Spike under the terms of
this Agreement shall immediately revert to Spike and Vella shall within thirty
(30) days after said termination return to Spike, at Vella's expense, all
written documents of Spike of whatever kind including drawings and copies of any
kind made thereof by anybody, relating to the Products or the sale thereof.
Vella agrees that, in the event of such termination it will immediately
discontinue and no longer use in any manner whatsoever any of Spike's documents
or Confidential Information received hereunder relating to the Products and that
it will immediately discontinue the use of the Trade Marks of Spike.

19.4.2 In the event of the termination of this Agreement, all
rights and interest granted to SPIKE by Vella under the terms of this Agreement
shall immediately revert to Vella.

19.5 Survival of Provisions. The following provisions shall
survive the termination of this Agreement for whatever reasons: Sections 1, 8,
9, 12, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26 and 27.

20 GENERAL CONDITIONS

20.1 No amendment, change or revision, or discharge of this
agreement shall have any Force or effect unless set forth in writing and signed
by duly authorized representatives of both parties.

20.2 ILLEGAL PAYMENTS; Vella certifies, and will certify each
year, that Distributor does not make payments which are illegal in the USA or in
the country in which such payments are made in connection with the political
contributions which are illegal in the USA or in the country in which such
contributions are made, to any Government, Government official, political party,
political candidate, or other political organization.

21 COMPLETE AGREEMENT

21.1 This Agreement, including all attachments, constitutes the
entire agreement between the parties with respect to the subject matter hereof,
and supersedes all previous communications, representation, understanding, and
agreements, either oral or written between the parties or any official or
representative thereof. This Agreement shall be modified only by the instrument
in writing and signed by duly authorized representatives of both parties.

22 NOTICES

22.1 All notifications, reports, requests for changes, or
additions to this Agreement shall be in writing and addressed as follows:

	VELLA: 	 	Vella Productions, Inc. 
	  	 	999 3rd Avenue, Suite
      3800 
	  	 	Seattle, WA 98104 
	  	 	U.S.A. 
	  	 	  
	SPIKE: 	 	Spike Tea, Inc. 
	  	 	Suite 700, One Executive Place
  
	  	 	1816 Crowchild Trail N.W. 
	 	 	Calgary, Alberta
  
	  	 	T2M 3Y7 
	  	 	Canada 

22.2 Addresses may be modified at any time by written
notification from one party to the other party. Any such notice or other
communication shall be deemed given and effective when delivered personally or
by e-mail or three (3) days after the postmark date if mailed by certified or
registered mail, postage prepaid, return receipt requested, addressed to a party
as stated above.

23 SEVERABILITY

If any provision herein shall be held to be invalid or
unenforceable for any reason, such provision shall, to the extent of such
invalidity or unenforceability, be severed, but without in any way affecting the
remainder of such provisions or any other provision contained herein, all of
which shall continue in full force and effect.

24 ASSIGNMENT

The delegation or assignment by either party hereto of any or
all of its duties, obligations or rights hereunder, without the prior written
consent of the other party hereto, shall be void. However, nothing herein shall
be construed to prevent SPIKE from assignment its right to receive payments due
it under the terms of this Agreement.

25 GOVERNING LAW

This Agreement and all disputes and suits related thereto shall
be governed by and construed and interpreted in accordance with the laws of the
Province of British Columbia without regard to any conflicts of law rules.

26 NO WAIVER

No delay or failure by either party to exercise or enforce at
any time any right or provision of this Agreement shall be considered a waiver
thereof or of such party's right thereafter to exercise or enforce each and
every right and provision of this Agreement. A waiver to be valid shall be in
writing, but need not be supported by consideration.

27 MISCELLANEOUS

27.1 Unless otherwise specified herein, all payments required
to be made hereunder shall be made in United States funds.

27.2 Time shall be of the essence of this Agreement and of each
and every part hereof.

IN WITNESS WHEREOF the parties hereto have caused this
Agreement to be executed by their duly authorized representatives as of the date
first above written.

	SPIKE TEA, INC. 	 	VELLA PRODUCTIONS INC. 
	  	 	  
	  	 	  
	  	 	  
	By: /s/ Olga Lenova	 	By: /s/ Olga Lenova
		 	
	OLGA LENOVA, President 	 	 OLGA LENOVA, President 
	  	 	  
	  	 	  
	  	 	  
	Date: July 10, 2006             
      	 	Date: July 10, 2006

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]