Document:

helix_8k-ex1010.htm

    
      
        
          

        
Exhibit 10.10

       

      SETTLEMENT
AGREEMENT

      AND
MUTUAL RELEASE

      

       

      This
Settlement Agreement and Mutual Release ("Agreement") is entered into as of
March 30, 2010 by and between Kenneth O. Morgan (“Morgan”), Helix Wind, Corp., a
Nevada corporation (“Helix Wind”) and Scott Weinbrandt
(“Weinbrandt”).  As used herein, the term “the Parties” shall be used
to refer to Morgan, Helix Wind and Weinbrandt jointly.

       

      RECITALS

       

      WHEREAS, Morgan and Helix Wind entered
into an Employment Agreement dated June 1, 2008 for the employment of Morgan by
Helix Wind.

       

      WHEREAS, on or about July 10, 2009
Morgan filed an action against Helix Wind. Ian Gardner and Weinbrandt in the San
Diego Superior Court, Central District, Case No. 37-2009-00093802 entitled Kenneth Morgan v. Helix Wind, et
al. alleging, inter
alia, breach of the Employment Agreement.

       

      WHEREAS, on or about November 6, 2009
Helix Wind filed a cross-complaint alleging, inter alia, breach of the
Employment Agreement, naming Morgan as cross-defendant.  Morgan’s
complaint and all amendments thereto, and Helix Wind’s related cross-complaint
in Case No. 37-2009-00093802 entitled Kenneth Morgan v. Helix Wind, et
al. shall be referred to hereunder and collectively as the
(“Action”).

       

      WHEREAS, each of the Parties desire to
fully and finally resolve all claims that they have or may have against any of
the Parties related to the Action.

       

      WHEREFORE,
in consideration of the foregoing Recitals and the agreements and promises
hereinafter set forth and for good and valuable consideration, the Parties
hereto agree as follows:

      

      1.00           PAYMENT.  Helix
Wind agrees that it will pay the sum of $150,000.00 (the “Settlement Payment”)
simultaneous with the execution of this Agreement by all parties.  The
Settlement Payment shall be made by wire transfer to “Law Office of Sean Brew
Client Trust Account” to an account furnished by Sean Brew to Helix Wind in
writing or by e-mail transmission.

       

      2.00           RELEASE. In consideration of the
Settlement Payment and the other promises and considerations set forth in this
Agreement, Morgan, Helix Wind and Weinbrandt do hereby mutually release, acquit
and forever discharge each other from any and all claims, demands, damages,
causes of action or suits in equity, of any kind whatsoever, at common law,
statutory or otherwise, which they have or may have, known or unknown, now
existing or that might arise hereafter that were or could have been asserted in
the Action, except for the promises and conditions set forth in this
Agreement.

       

      Nothing
in this Agreement shall be construed as a release in favor of Defendant Ian
Gardner, and Morgan expressly retains all rights against Gardner.

       

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      3.00           WAIVER OF
SECTION 1542. As to the matters
released herein, the Parties expressly waive any and all rights against one and
other under Section 1542 of the California Civil Code
which provides as follows:

       

      "A
GENERAL RELEASE DOES NOT EXTEND TO THE CLAIMS WHICH THE CREDITOR DOES NOT KNOW
OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM MUST HAVE MATERIALLY EFFECTED HIS SETTLEMENT WITH THE
DEBTOR."

       

      4.00           FILING OF
DISMISSALS. The Parties
agree that:

       

      A.           Within
three (3) business days of receipt of the Settlement Payment, Morgan shall cause
its attorneys to execute and file a request for dismissal with prejudice of its
complaint in the Action against Helix Wind, Gardner and Weinbrandt, and shall
provide Helix Wind and Weinbrandt a file-stamped copy of the dismissal from the
San Diego Superior Court.

       

      B.           Within
three (3) business days after the Company receives the file-stamped copy that
the Complaint is dismissed, Helix Wind shall cause its attorneys to execute and
file a request for dismissal with prejudice of its cross-complaint against
Morgan in the Action, and shall provide Morgan, Gardner and Weinbrandt a
file-stamped copy of the dismissal from the San Diego Superior
Court.

       

      5.00           NO
ADMISSION. In entering into this
Agreement, no party herein is admitting the sufficiency of any claims,
allegations, assertions, contentions, or positions of any other party, nor the
sufficiency of the defenses to any such claims, allegations, assertions,
contentions, or positions.  The Parties hereto desire to resolve the
action in an amicable fashion, and pursuant to Code of Civil
Procedure Section 877, the Parties have entered into this Agreement in
good faith.

       

      6.00           GENERAL
TERMS AND CONDITIONS. The Parties to this
Agreement, and each of them, acknowledge and agree that:

       

      i. this
Agreement and its reduction to final form is the result of extensive good faith
negotiations between the Parties through their respective counsel;

       

      ii. said
counsel have carefully reviewed and examined this Agreement for execution by
said Parties, or any of them; and

       

      iii. any
statute or rule of construction that ambiguities are to be resolved against the
drafting party should not be employed in the interpretation of this
Agreement.

       

      iv. Paragraph
headings are for reference only and shall not affect the interpretation of any
paragraph hereto.

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      7.00           ENTIRE
INTEGRATED AGREEMENT.  This Agreement constitutes the entire
and sole agreement of the parties hereto and constitutes a written integration
of all negotiations between the parties relating to the subject matter hereof,
incorporating each and every representation, promise or warranty, whether oral
or written, between the parties with respect hereto, and supersedes any and all
previous settlement agreements entered into by the parties relating to the
Action.  No party has made any representation, promise or warranty to
the other with respect to the matters addressed herein except as expressly set
forth in this Agreement.  The parties hereto agree to execute and
deliver any and all additional papers, documents, and other assurances, and
shall do any and all acts and things reasonably necessary in connection with the
performance of their obligations hereunder and to carry out the intent of the
parties to this Agreement.

      

      8.00           REPRESENTATIONS
REGARDING OWNERSHIP OF CLAIMS.  Each party represents,
covenants and warrants that it is the sole and lawful owners of any and all
claims, matters, and causes of action which are the subject of this Agreement,
and that they have not previously assigned, hypothecated or otherwise
transferred any of the claims released herein.

      

      9.00           AUTHORITY
TO EXECUTE.  Each of the individuals who execute this Agreement
individually warrants and represents that such individual has the ability, right
and authority to execute this Agreement on behalf of the person or entity for
whom the individual executes this Agreement.

      

      10.00         ADVICE OF
COUNSEL.  The Parties represent and warrant that they have had
advice of counsel of their own choosing in the negotiations for and the
preparation of this Agreement, and that they have read this Agreement, or had
the same read to them by counsel, and that they have had this Agreement fully
explained to them by their counsel, and they are fully aware of the Agreement's
legal effect.  This Agreement is to be construed fairly and not in
favor of or against any party, regardless of which party or parties drafted or
participated in the drafting of its terms.

      

      11.00         GOVERNING
LAW.  This Agreement is made and entered into in the County of
San Diego, State of California and shall be governed by and construed in
accordance with the laws of the State of California.

      

      12.00         AMENDMENTS
IN WRITING.  It is expressly understood and agreed that this
Agreement may not be altered, amended, modified or otherwise changed in any way
whatsoever, except in writing, executed by all of the parties to this Agreement,
or their authorized representatives.

      

      13.00         COUNTERPART
SIGNATURES AND MULTIPLE ORIGINALS. The parties agree that this Agreement
may be executed in one or more counterparts and may be delivered by facsimile
transmission, all of which, taken together, shall constitute one and the same
instrument.

      

      14.00         INJUNCTIVE
RELIEF.  The Parties agree that a breach of this Agreement will
cause irreparable injury to the other Parties for which he would have no
adequate remedy at law.  Accordingly, the Parties agree that each of
the Parties shall be entitled to immediate injunctive relief prohibiting any
breach of those sections of this Agreement.

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, this Agreement has been executed by each of the parties on the
date shown above.

       

      
        
          	 	 	 	 
	
                  DATED:_______________,
      2010    

                	
                  By:
      

                	/s/ Kenneth
      O. Morgan	 
	 	 	Name:
      Kenneth O. Morgan 	 
	 	 	 	 

        

      

       

      
        
          	 	
                  Helix
      Wind, Corp.

                	 
	 	 	 	 
	
                  
                    DATED:_______________,
      2010    

                  

                	
                  By:
      

                	/s/  Scott
      Weinbrandt	 
	 	 	Name:  Scott
      Weinbrandt 	 
	 	 	Title:   
      Chief Executive Officer 	 
	 	 	 	 

        

      

      
         

        
          
            	 	 	 	 
	
                    DATED:_______________,
      2010    

                  	
                    By:
      

                  	/s/  Scott
      Weinbrandt	 
	 	 	Name:  Scott
      Weinbrandt 	 
	 	 	 	 

          

        

         

      

        

      
 

       

      

       

      [Signature Page to Settlement
Agreement and Release dated March 30, 2010]helix_8k-ex1011.htm

    
      
        

      
Exhibit 10.11

    

    ESCROW
AGREEMENT

    

    

    THIS
AGREEMENT made as of March 30, 2010

     

    BETWEEN:

    HELIX
WIND CORP., a Nevada corporation

    1848
Commercial Street, San Diego, California 92113

    (the
“Company”)

    

    AND:

    KENNETH
O. MORGAN

    209 South
Stephanie Street, Suite B221

    Henderson,
Nevada 89012

    (“Morgan”)

    

    AND:

    LAW
OFFICES OF WILLIAM M. AUL

    7676
Hazard Center Drive, Suite 500

    San
Diego, California 92108

    (the
“Escrowholder”)

    

    WHEREAS:

    

    A.           The
Company has entered into that certain Note and Warrant Purchase Agreement and
issued a Convertible Secured Promissory Note in the principal amount of seven
hundred seventy nine thousand five hundred dollars ($779,500), each dated March
30, 2010 (the “Financing Documents”) with St. George Investments, LLC (the
“Lender”).

     

    B.           The
Financing Documents require that as a condition to closing the financing under
the Financing Documents, that Morgan pledge four million eight hundred thousand
(4,800,000) shares (the “Pledged Shares”) of his Company common stock to the
Lender under the terms of the Stock Pledge Agreement dated March 30, 2010 (the
“Pledge Agreement”) between Morgan and the Lender, to secure the Company’s
obligations under the Financing Documents.

    

    C.           Morgan
has agreed to the terms of Stock Pledge Agreement and the deliver the Pledged
Shares in accordance with the Pledge Agreement, so long that the Company agrees
to issue Morgan an aggregate of six million (6,000,000) shares of Company’s
common stock (the “Replacement Shares”) in the event that Morgan forfeits the
Pledged Shares subject to the default provisions of the Pledge Agreement (the
“Forfeiture Event”)

    

    D.           The
Company, Morgan, and the Escrowholder agree that simultaneous with the closing
under the Financing Documents, the Company and Morgan entered into that certain
Settlement Agreement and Mutual Release dated March 30, 2010 (the “Settlement
Agreement”) pursuant to which the parties thereto agree to settle and dismiss
the Action (as defined in the Settlement Agreement) in exchange for the
Company’s payment in the amount of $150,000 to Morgan.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    E.           The
Company has issued that certain Irrevocable Instructions to Transfer Agent,
dated March 24, 2010 (the “Instructions”) wherein the Company, Morgan, and the
Lender have agreed that upon default under the Note (as defined in the
Instructions) and as set forth in the Default Notice (attached as Exhibit B to
the Instructions), the Company provides instructions to Island Stock Transfer,
the Company’s stock transfer agent, to transfer the Pledged Shares to the Lender
upon its receipt of a properly completed and executed Default Notice (the
“Default Notice”) as set forth in Section 2 of the Instructions.

    

    F.           The
Company, Morgan, and the Escrowholder hereby enter into this Escrow Agreement in
furtherance of the Pledge Agreement and the Settlement Agreement.

     

    NOW THEREFORE WITNESSETH that for and
in consideration of the covenants and agreements herein contained, the parties
hereto declare and agree as follows:

    

    
      	
              1.

            	
              The
      Company hereby delivers to the Escrowholder the following documents which
      shall be held by the Escrowholder in escrow subject to the terms and
      conditions of this Escrow
Agreement:

            

    

     

    
      	
              (a)  

            	
              Two
      Common Stock Certificates representing an aggregate of six million
      (6,000,000) Replacement Shares registered in the name of Kenneth O.
      Morgan;

            

    

     

    
      	
              (b)  

            	
              A
      copy of the following Issuance Resolutions, each signed by Kevin K.
      Claudio, the Chief Financial Officer of the Company and submitted to
      Island Stock Transfer, the Company’s duly appointed stock transfer agent
      with instructions to issue and deliver the Replacement Shares to the
      Escrowholder;

            

    

     

    
      	
              (c)  

            	
              A
      copy of the resolutions adopted by the Company’s Board of Directors
      wherein and showing that the issuance of the Replacement Shares have been
      approved at a duly constituted meeting or written action of the Company’s
      Board of Directors in conformity with the requirements of the Company’s
      By-laws and the Nevada General Corporation Law;
  and

            

    

     

    
      	
              
                (c)  

              

            	
              An opinion of Steven
      J. Davis, Esq. addressed to Morgan and opining: (i) that all of the
      Replacement Shares, have been validly issued, fully paid-for, and are
      non-assessable shares of the capital stock of the Company; and (ii) that
      in the event of a Forfeiture Event, all of the Replacement Shares are not
      and will not be subject to any claims or interests of the Company, and
      that at all times immediately following any Forfeiture Event, Morgan will
      acquire and hold the Replacement Shares free of any claims or interests of
      the Company.

            

    

     

    (which
documents are hereinafter called the “Escrow Documents”).

     

    
      	
              2.

            	
              For
      the purposes of the Pledge Agreement, the Escrowholder holds the Escrow
      Documents on behalf of Morgan and shall deliver the Escrow Documents in
      accordance with this paragraph 2.  The Escrowholder
      shall:

            

    

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (a)

            	
              deliver
      the Escrow Documents to Morgan within five (5) business days after
      Escrowholder’s receipt of: (i) a copy of the Default Notice from the
      Company or upon any reasonable notice that the Lender has exercised its
      rights and remedies (as defined in Section 11 of the Pledge Agreement)
      stating (i) there is an Event of Default under the Pledge Agreement or
      (ii) the Company has received notice from the Lender that an Event of
      Default has occurred under the Convertible Secured Promissory Note issued
      by the Company to the Lender and in the original principal amount of Seven
      Hundred Seventy-Nine Thousand Dollars ($779,000) (the “Secured Note”)
      (both, as “Written Notice”) unless then prohibited by an order of a court
      of competent jurisdiction.

            

    

     

    
      	
              3.

            	
              The
      Company agrees that in furtherance of the intent and purposes of this
      Escrow Agreement, it shall, upon receipt of any notice from the Lender,
      the Transfer Agent, or any third party that the Lender has exercised its
      rights to the Collateral or that an Event of Default has occurred under
      the Secured Note, promptly and within one (1) business day give written
      notice to the Escrowholder of the same and include in said notice
      reasonable additional details together a copy of all documents it has
      received relating to or arising out of any said exercise of the Lender’s
      rights, the occurrence of an Event of Default, or both of them. If Morgan
      receives the Escrow Documents under the provisions of paragraph 2 hereof,
      Morgan shall acquire and hold all rights to the Replacement Shares as the
      sole and exclusive stockholder of all the Replacement
      Shares.  If Morgan receives
      the Escrow Documents under the provisions of paragraph 2 hereof, Morgan
      shall be deemed to have assigned to the Company, without the requirement
      of any further action by any party, any and all rights Morgan may have in
      the Pledged Shares or any proceeds from the Pledged Shares which may inure
      to Morgan under the Pledge Agreement.  Morgan agrees to execute any
      and all documents reasonably required by the Company to evidence such
      assignment.

            

    

     

    
      	
              4.

            	
              In
      the event that the Escrowholder does not receive any Default Notice or
      Written Notice, and Escrowholder receives reasonable written notice from
      the Company that the Secured Note and all obligations to the Lender under
      the terms of the Secured Note have been satisfied then the Escrowholder
      shall return the Replacement Shares to the Company.  All of the
      parties hereto agree that any notice to be given under this Escrow
      Agreement shall be deemed to have been duly and sufficiently given if
      mailed by prepaid registered mail, telexed or telecopied to, or delivered
      at, the address of the other party as hereinafter set
    forth:

            

    

     

    (a)           To
Morgan: (then to the address on the first page above)

    

    (b)           To
the Company: (then to the address on the first page above)

    

    (c)           To
the Escrowholder: (then to the address on the first page above)

    

    or at
such other address as the other party may from time to time direct in writing,
and any such notice shall be deemed to have been received, if mailed, telexed or
telecopied, 48 hours after the time of mailing, telexing or telecopying, and, if
delivered, upon the date of delivery.  If normal mail service, telex
service or telecopy services is interrupted by strike, slowdown, force majeure
or other case, a notice send by the impaired means of communication will not be
deemed to be received until actually received, and the party sending the notice
shall utilize any other such services which have not been so interrupted or
shall deliver such notice in order to ensure prompt receipt
thereof.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

     

    
      	
              5.

            	
              Morgan
      shall pay from time to time the reasonable fees and expenses of the
      Escrowholder in connection with the performance of its duties hereunder,
      and the Company and Morgan shall jointly and severally indemnify and save
      harmless the Escrowholder of and from all other claims, demands, damage,
      loss and expense arising out of its performance of its duties
      hereunder.

            

    

     

    
      	
              6.

            	
              The
      Escrowholder will incur no liability hereunder except for its willful
      misconduct or gross negligence so long as it has acted in good
      faith.  The Escrowholder shall have no responsibility in respect
      of loss of the Escrow Documents except the duty to exercise such care in
      the safekeeping thereof as it would exercise if the Escrow Documents were
      the property of the Escrowholder.

            

    

     

    
      	
              7.

            	
              The
      Escrowholder will not be required to defend any legal proceedings which
      may be instituted against it in respect of or arising out of anything
      herein contained unless requested to do so by a party hereto and
      indemnified to its reasonable satisfaction against the costs and expense
      of such defense.

            

    

     

    
      	
              8.

            	
              The
      Escrowholder may seek and obtain the advice of legal counsel in the event
      of any question or dispute as to any of the provisions hereof or its
      duties hereunder, and it shall incur no liability and shall be fully
      protected in acting in good faith in accordance with the opinion, advice
      and instructions of such legal counsel (the reasonable costs of such legal
      services shall be added to and be part of the Escrowholder’s expenses
      hereunder).

            

    

     

    
      	
              9.

            	
              The
      Escrowholder is not responsible or liable for the sufficiency, form or
      manner of making any notice or demand or direction provided for under this
      Escrow Agreement or of the identity of the persons executing the same, but
      it shall be sufficient in any writing purporting to be such a notice,
      demand, protest or direction is served under the Escrowholder in any
      manner sufficient to bring it to its attention.  The
      Escrowholder shall not be liable for any error of judgment, for any act
      done or omitted by it in good faith, or for anything which it may in good
      faith do or refrain from doing in connection
  herewith.

            

    

     

    
      	
              10.

            	
              Nothing
      contained herein shall be construed as limiting the duties of the
      Escrowholder to Morgan in its capacity as counsel to
    Morgan.

            

    

     

    
      	
              11.

            	
              This Escrow Agreement shall be
      governed by and construed in accordance with the laws of the state of
      California as if this Agreement were fully performed and fully executed
      within the State of California. Any dispute or claim arising to or
      in any way related to this Agreement shall be settled by binding
      arbitration in San Diego, California.  All arbitration shall be
      conducted in accordance with the rules and regulations of the American
      Arbitration Association ("AAA"). AAA shall designate an arbitrator from an
      approved list of arbitrators following both parties' review and deletion
      of those arbitrators on the approved list having a conflict of interest
      with either party.  Each party shall pay its own expenses
      associated with such arbitration. A demand for arbitration shall be made
      within a reasonable time after the claim, dispute or other matter has
      arisen and in no event shall such demand be made after the date when
      institution of legal or equitable proceedings based on such claim, dispute
      or other matter in question would be barred by the applicable statutes of
      limitations.  The decision of the arbitrators shall be rendered
      within 60 days of submission of any claim or dispute, shall be in writing
      and mailed to all the parties included in the arbitration.  The
      decision of the arbitrator shall be binding upon the parties and judgment
      in accordance with that decision may be entered in any court having
      jurisdiction thereof.

            

    

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

     

    
      	
              12.

            	
              This
      Escrow Agreement, after full execution, acknowledgment and delivery,
      memorializes and constitutes the entire agreement and understanding
      between the parties and supersedes and replaces all prior negotiations and
      agreements of the parties, whether written or unwritten.  Each
      of the parties to this Escrow Agreement acknowledges that no other party,
      nor any agent or attorney of any other party has made any promises,
      representations, or warranty whatsoever, express or implied, which is not
      expressly contained in this Escrow Agreement; and each party further
      acknowledges that he or it has not executed this Escrow Agreement in
      reliance upon any belief as to any fact not expressly recited
      hereinabove.

            

    

    

    
      	
              13.

            	
              This
      Escrow Agreement shall enure to the benefit of and be binding upon the
      parties hereto and their respective heirs, successors, administrators and
      assigns.

            

    

     

    
      	
              14.

            	
              Time
      shall be of the essence of this Escrow
  Agreement.

            

    

     

    
      	
              15.

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

            

    

     

    
      	
              16.

            	
              The
      obligations of the Escrowholder shall terminate at the earlier of: (a) the
      delivery of the Escrow Documents to Morgan; or (b) the return of the
      Replacement Shares to the Company.  At all times hereunder, the
      Escrowholder shall be entitled to reasonably rely upon the information and
      documents it receives in exercising its obligations under this Escrow
      Agreement.

            

    

     

    

    [The
remainder of this page has been left intentionally blank.]

    

    

    

    

    

    

    

    

    

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

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

    

    

    KENNETH
O. MORGAN

    

    By:  /s/   Kenneth O.
Morgan                                           

    Kenneth
O. Morgan

    

    

    HELIX
WIND CORP.

    

    

    By:  /s/  Kevin K.
Claudio                                                 

      
Kevin K. Claudio, Chief Financial Officer

    

     

    LAW
OFFICES OF WILLIAM M. AUL

    

    

    Per:  /s/  William M.
Aul                                                    

    William
M. Aul

    

    

    

    

    

    [SIGNATURE PAGE TO ESCROW
AGREEMENT]

    

    
      
         

      

      
        6

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