Document:

exh101.htm

 

Exhibit 10.1

 

CONSULTING AND MEDIA AGREEMENT

THIS CONSULTING AND MEDIA AGREEMENT ("Agreement") is entered into as of January 6, 2010 by and between Green Street Capital Partners, LLC, a Florida limited liability company located at 2731 Silver Star Road, Suite 200, Orlando,
Florida 32801 (hereinafter referred to as "Consultant") and Quantum Solar Power Corporation, a Nevada corporation located at 3900 Paseo Del Sol, Santa Fe, New Mexico 87507 (hereinafter referred to as the "Company").

PREAMBLE

WHEREAS, the Consultant is in the business of assisting public companies in financial advisory, strategic business planning, corporate communications and public relations services designed to make the investing public knowledgeable about the benefits of stock ownership in the Company;
and

WHEREAS, the Consultant may, during the period of time covered by this Agreement, present to the Company one or more plans of corporate communications and broker relations and may utilize other business entities to achieve the Company's goals of making the investing public knowledgeable
about the benefits of stock ownership in the Company; and

WHEREAS, the Company recognizes that the Consultant is not in the business of stock brokerage, investment advice, activities which require registration under either the Securities Act of 1933 (hereinafter "the Act") or the Securities and Exchange Act of 1934 (hereinafter "the Exchange
Act"), underwriting, banking, is not an insurance company, nor does it offer services to the Company which may require regulation under federal or state securities laws; and

WHEREAS, the parties agree, after having a complete understanding of the services desired and the services to be provided, that the Company desires to retain Consultant to provide such assistance through its services for the Company, and the Consultant is willing to provide such services
to the Company;

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

	
1.
	
Retention.

The Company hereby retains the Consultant as from January 6, 2010 (the “Effective Date”) in order to provide the Company with the services referred to in paragraph 2 below, and the Consultant agrees, to provide such services for the term of the Agreement. The Company agrees to pay Consultant as set forth in Exhibit B hereto.

	
2.
	
Consultant’s Services.

The Company hereby engages Consultant to provide one or more plans, and for coordination in executing the agreed-upon plan, for using various corporate communications and broker relations services as agreed by both parties. The plan may include, but not by way of limitation, the following services: consulting with the Company's management
concerning marketing surveys, investor accreditation, availability to expand investor base, investor support, strategic business planning, broker relations, conducting due diligence meetings, attendance at conventions and trade shows, assistance in the preparation and dissemination of press releases and stockholder communications, review and assistance in updating a business plan, review and advise on the capital structure for the Company, propose legal counsel, assist in the development of an acquisition profile
and structure, recommend financing alternatives and sources, and consult on corporate finance and/or investment banking issues. In addition, these services may include production of a corporate profile and fact sheets, personal consultant services, financial analyst and newsletter campaigns, conferences, seminars and national tour, including, but not by way of limitation, due diligence meetings, investor conferences and institutional conferences, printed media advertising in Green Street Report, newsletter production
(“Print Media”), broker lead generation campaigns, electronic public relations campaigns, direct mail campaigns, placement in investment and financial publications and press releases. This agreement is limited to the United States. A further description of the services which may be included in the plan as described above is attached hereto as Exhibit A and included herein as if fully set out.

 

 

 

 

 

 

	
3.
	
Representations, Warranties and Covenants

	
       (a)
	
Consultant. Consultant hereby represents and warrants to the Company as follows:

	
  
	
(i)
	
Consultant shall utilize its best efforts to design the Campaign in a manner most beneficial to the Company, however, it is understood that Consultant makes no representations or warranties regarding the eventual impact of the Campaign upon the market and price for the Company's securities.

	
  
	
(ii)
	
Consultant shall, at the direction of the Company, prepare copy for publication based on information provided by the Company. Consultant shall provide the Company with a copy of all Print Media it intends to utilize; the Company shall have three (3) business days to approve such Print Media. After the expiration of three (3) business days, Consultant will make a second request for approval for response due in twenty-four
(24) hours. If no response is received to the second request within twenty-four (24) hours, then the Company shall be deemed to have approved such Print Media. It is understood that Consultant shall not be obligated to make an independent investigation of any information provided by the Company and that Consultant shall have the right to rely exclusively upon the accuracy of statements and documents provided by the Company to Consultant.

	
  
	
(iii)
	
Consultant's activities at all times will comply with all applicable laws.

	
  
	
(iv)
	
Consultant has all necessary licenses, permits, etc., to conduct its affairs and to receive compensation.

	
  
	
(v)
	
Consultant is aware of restrictions on the use and publication of material non-public information.

	
  
	
(b)
	
Company.  The Company hereby represents and warrants to Consultant that:

	
  
	
(i)
	
All information provided by the Company to Consultant: (A) shall be true, complete and accurate in all material respects; and (B) shall not omit information material to the operations of the Company which is relevant to the advertorial pieces and shall be disseminated pursuant to a press release provided to Marketwire, Incorporated prior to appearing in any Consultant’s media. Consultant shall provide a series
of guidelines, set forth in Exhibit C hereto, regarding public disclosure of information and the Company agrees to comply with such guidelines, as long as such guidelines do not conflict with any of those provided by the Financial Industry Regulatory Authority (“FINRA”), the Securities and Exchange Commission (“SEC”) or any other regulatory agency. In the event the Company fails
to comply with any of the requirements, then Consultant's obligation to conduct the Campaign and to provide potential investor leads shall be suspended until the Company is in full compliance. Upon execution of this Agreement the Company shall appoint a company representative who shall be the sole point of contact with Consultant, stockbrokers introduced by Consultant and prospective investors. The Company further represents that the Company shall provide Consultant with an immediate written update in the event
circumstances change causing information provided to Consultant to be materially inaccurate. The Company represents that it shall at all times comply in all material respects with applicable state and federal securities laws including, but not limited to complying with all notice and filing requirements. It is understood that the design and implementation of a national media campaign is an expensive endeavor requiring advanced planning, thus in the event the Company breaches this subsection, and such breach shall
continue for ten (10) business days after Company's receipt of written notice of such breach from Consultant, then Consultant shall have the right to (I) immediately terminate the Campaign; and (I) immediately demand all amounts due and owing under this Agreement.

 

 

 

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(ii)
	
During the first thirty days of this Agreement, at all times during regular business hours, upon reasonable notice, representative(s) from Consultant will have full access to the books and records of the Company, provided such documents are "public" information, in order to insure that the Company is a suitable client, such determination as to suitability to be made by Consultant in its sole discretion.

 

After the period of thirty days has expired, the Company will, upon reasonable notice, allow representative(s) of Consultant access to books and records, provided such documents are public information, for ongoing consulting purposes. Should, during the term of this Agreement, Consultant determine in its sole discretion that the Company is an unsuitable client, the Campaign may be immediately terminated by Consultant pursuant to a written notice to the Company. In the event Consultant elects
to terminate the Campaign under this subsection, then it shall be obligated to return all unearned compensation. The amount spent will be determined by adding up all media, advertising, or other services provided as designated in Exhibit D hereto attached. Company recognizes all media or services that have been reserved for placement will also apply against dollars spent. Upon cancellation Consultant will provide proof of all media and services that have run, and that are scheduled to run.

 

	
  
	
(iii)
	
The Company agrees to indemnify and hold harmless Consultant and each of its officers, directors, and agents, employees and controlling persons (collectively "Indemnified Persons") to the fullest extent permitted by law, from any and all losses, claims, damages, expenses (including reasonable fees, disbursements, and other charges of counsel), actions, proceedings
or investigations (whether formal or informal), or threats thereof (all of the foregoing being hereinafter referred to as "Liabilities"), actually incurred by Consultant as the proximate result of the Company providing Consultant inaccurate and false information. In connection with the Company's obligation to indemnify for expenses as set forth above the Company further agrees to reimburse each Indemnified Person for all expenses (including reasonable fees,
disbursements and charges of counsel) as they are incurred by such Indemnified Person. In order to provide for just and equitable contribution in any case in which any person entitled to indemnification hereunder makes claim for indemnification pursuant hereto but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case notwithstanding
the fact that this Section provided for indemnification, then and in each such case the Company and Consultant shall contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (after any contribution from others) in such proportion taking into consideration the relative benefits received by each party in connection with this Agreement, the parties' relative knowledge and access to information concerning the matter with respect to which the claim was assessed, the opportunity
to correct and present any statement or omission and other equitable considerations appropriate under the circumstances; and provided, that, in any such case, no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities and Exchange Act of 1934) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

	
  
	
(iv)
	
The Company agrees to the following: (A) Consultant shall be notified thirty (30) business days prior to the commencement of any equity or debt raised by the Company; provided, however, the Company shall not sell any securities pursuant to Regulation S of the Securities Act of 1933 without the express written consent of Consultant, which consent may be withheld in Consultant's sole and absolute discretion; (B) the
Company agrees that during Consultant’s awareness program the Company shall not, subsequent to the date of this agreement, issue or provide any exempt shares from registration under Rule S-8, unless consent is granted from Consultant prior to issuance; (C) Consultant shall be provided copies of all filings by the Company with the Securities & Exchange Commission within three (3) business days of such filing; (D) the Company shall notify Consultant of any other activities it becomes aware of which might
materially and adversely impact upon the market for the Company's securities, including, but not limited to: trading lock-up agreements and expirations, pending registration rights and communications with the brokerage community and market-makers for the Company's securities. In the event the Company shall breach this subsection, and such breach shall continue for ten (10) business days after Company receipt of written notice of such breach from Consultant, Consultant shall have the right to: (I) terminate or
delay the Campaign; (II) retain all Restricted Securities and  (III) obtain reimbursement for all unreimbursed out-of-pocket costs.

 

 

 

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3.
	
Cooperation

To the fullest extent possible, the Company will furnish Consultant with all financial and other information and data as Consultant believes appropriate in connection with its activities on the Company's behalf, and shall provide Consultant full access to its officers, directors, and professional advisors.

	
4.
	
Confidentiality

Consultant agrees that during and after the term of its relationship with the Company, Consultant will not, directly or indirectly, disclose to any third party, or use or authorize any third party to use, any information relating to the business or interests of the Company that Consultant knows or has reason to know is regarded as confidential
and valuable to the Company. The parties acknowledge and agree that in determining whether information is confidential information and/or a trade secret, the fact that such information is not marked "confidential" shall not adversely affect the confidentiality or trade secret status of the same. Consultant agrees that if its relationship or the discussions with the Company are terminated for any reason, Consultant will immediately return to the Company all records and papers and all matter of whatever nature
to the Company (including without limitation business plans, customer lists, marketing information and all other information). Consultant shall, however, have the right to disclose trade secrets or confidential information of the Company in either of the following events: (1) with the Company's prior express written permission; or (2) under order of a judicial or administrative process in connection with any action, suit, proceeding, or claim.

	
5.
	
Consultant's Services to Others

The Company acknowledges that Consultant or its affiliates are in the business of providing financial public relations services to others. Nothing herein contained shall be construed to limit or restrict Consultant in conducting such business with respect to others, or in rendering such advice to others. Consultant shall perform its services
hereunder as an independent contractor and not as an employee of the Company or affiliate thereof. It is expressly understood and agreed to by the parties hereto that Consultant shall have no authority to act for, represent or bind the Company or any affiliate thereof in any manner, except as may be agreed to expressly by the Company in writing from time to time.

	
6.
	
Miscellaneous

	
  
	
(a)
	
Further Actions. At any time and from time to time, each party agrees, at its expense, to take such actions and to execute and deliver such documents as may be reasonably necessary to effectuate the purposes of this Agreement.

	
        (b)
	
Notices. Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be mailed by certified mail, return receipt requested (or by the most nearly comparable method if mailed from or to a location outside of the United States), or delivered against receipt to the party to whom it is to be given at the address if
such party set forth in the preamble to this Agreement (or to such other address as the party shall have furnished in writing in accordance with the provisions of this Section). Any notice given to any corporate party shall be addressed to the attention of such parties President. Any notice or other communication given by certified mail (or by such comparable method) shall be deemed given at the earlier of five (5) business days after certification or at the time of receipt thereof.

 

 

 

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          (c)
	
Early Termination or Interruption of Contract.

	
  
	
(i)
	
Should the Company wish to terminate the services of Consultant, without cause, during the term of this Agreement, the Company shall be required to give thirty (30) days written notice to Consultant. The Company shall pay Consultant the monthly fee specified in this Agreement that is due during the month of cancellation, and the monthly fee due during the subsequent month to cancellation. Consultant's services during
said subsequent month will be limited to winding down Campaign and providing all leads to Company.

	
  
	
(ii)
	
The Company shall have the right to immediately terminate this Agreement for "Cause" as hereinafter defined. "Cause" shall exist in the event of Consultant's: (A) malfeasance; (B) willful refusal to perform its duties under this Agreement; (C) purposeful and willful breach of the covenants contained in this Agreement; and/or (D) acts of dishonesty or the commission of any misdemeanor, felony, or other crime involving
moral turpitude. In the event this Agreement is terminated for Cause as set forth in this section, Consultant shall be obligated to return all unearned compensation. Upon cancellation Consultant will provide proof of all media and services both that have run, and are scheduled to run.

	
          (d)
	
Waiver. Any waiver by any party of a breach of any provision of this Agreement shall not operate as or be construed to be a waiver of any other breach of that provision or any breach of any other provision of this Agreement. The failure of a party to insist upon strict adherence to any term of this Agreement on one or more occasions will not be considered a
waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

	
  
	
(e)
	
Binding Effect. The provisions of this Agreement shall be binding upon and inure to the benefit of the Company and Consultant and their respective successors and assigns, provided, however, that any assignment by any party of its rights under this Agreement without the written consent of the other party shall be void.

	
  
	
(f)
	
Damages. In the event any covenant, representation, warranty or other term of this Agreement is breached by either party and such breach shall continue for a period of ten (10) business days after receipt of written notice from the other party, the non-breaching party shall be relieved of any obligations it may have hereunder, and the non-breaching party, in
addition to the rights and remedies granted hereunder, shall be entitled to all other recourse provided by applicable law.

	
          (g)
	
Severability. If any provision of this Agreement is invalid, illegal or unenforceable, the balance of this Agreement shall remain in effect, and any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to any other persons and circumstances.

	
          (h)
	
Headings.  The headings in this Agreement are solely for the convenience of reference and shall be given no effect in the construction or interpretation of this Agreement.

	
  
	
(i)
	
Counterparts:  Governing Law.  This Agreement may be executed in any number of counterparts, each of which shall be deemed original, but all of which together shall constitute one and the same instrument. It shall be governed by and construed in accordance with the laws of the State of Florida, without giving effect to conflict laws.

	
  
	
(j)
	
Dispute Resolution.  In the event of a dispute with respect to this Agreement: (A) such dispute shall be arbitrated in accordance with the rules of the State of Florida and (B) the prevailing party shall be incurred in litigating or otherwise resolving or settling such dispute.

 

 

 

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(f)
	
Facsimile Copy.  Both parties agree that upon receipt of signatures via facsimile this Agreement can be deemed as an original and is binding.

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

QUANTUM SOLAR POWER CORPORATION

a Nevada Corporation

By:   DARYL EHRMANTRAUT                                                   

 Daryl Ehrmantraut

 Chief Executive Officer

GREEN STREET CAPITAL PARTNERS, LLC

a Florida Limited Liability Company

By:  CLIFFE R. BODDEN                                                    

Cliffe R. Bodden

Managing Member

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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EXHIBIT A

FINANCIAL SCOPE OF CAMPAIGN

Consultant agrees to provide a national advertising recognition campaign with the minimum value of $60,000, calculated as set forth below. This represents the value the Company shall receive. There are no additional charges for these items other than Consultant’s travel expenses, approved in advance by the Company.  Consultant’s
compensation and fees for Media Services shall only be due and payable upon receipt of the Company of at least $200,000 in investment capital emanating directly or indirectly from Consultant’s efforts under this Agreement.

	
1.  
	
Monthly Management Fee: $2,500 monthly

	
2.  
	
Inclusion of the Company in the Consultant’s Green Street Report shall be valued at $28,600 with a minimum distribution of 25,000 to Consultant’s subscribers.

	
3.  
	
Website Design shall be provided at the cost of $3,000 as shown in Exhibit D hereto attached.

	
4.  
	
Internet Media, bookmarking, social media, search engine optimization and monitoring shall be provided at the cost of $500 per month as shown in Exhibit D hereto attached.

	
5.  
	
Consultant represents that during the term of the Campaign it shall provide at least 5,000 qualified leads regarding prospective investors during the term of the contract and in which time the Campaign is in effect. In the event that the Campaign does not generate, or Consultant can not provide, the required number of names or leads, Consultant shall be
required to continue the Campaign without additional compensation or expense to the Company until the required number of leads has been provided.

	
6.  
	
The Consultant shall produce a video of 10 - 15 minutes in length profiling the company with management interviews at a cost of $10,000.

	
7.  
	
All other services including attendance at investor and trade conference, corporate brochure and other services shall be provided at the cost mutually agreed by Company and Consultant.

	
5.
	
The term of the advertising and media program shall be six (6) months and this term may be extended by mutual written agreement.

 

 

 

 

 

 

  

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EXHIBIT B

CONSULTANT COMPENSATION

In consideration for the services rendered by Consultant pursuant to the Agreement to which this is Exhibit B, the Company shall pay Consultant as set forth below. Consultant’s compensation shall be due and payable upon receipt of the Company of at least $200,000 in investment capital emanating directly or indirectly from Consultant’s
efforts under this Agreement.

	
i.  
	
The Company shall pay the Consultant a monthly Management Fee of $2,500 due at the first day of each calendar month.

	
ii.  
	
As additional compensation hereunder, the Company shall remit to Consultant 50,000 options at the strike price determined by the closing bid price on the date of issuance, of which (i) 25,000 shall be payable upon receipt by the Company of $2,500,000 in investment capital emanating directly or indirectly from Consultant’s efforts under this Agreement
within three (3) months from the Effective Date; and (ii) 25,000 shall be payable upon receipt by the Company of $5,000,000 in investment capital emanating directly or indirectly from Consultant’s efforts under this Agreement within six (6) months from the Effective Date (the “Performance Fee”). All options shall have a term of two (2) years. It is understood the shares underlying these options will have piggy back registration rights; however such shares will not be tradable until the Campaign
is terminated.

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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EXHIBIT C

GREEN STREET REPORT

GUIDELINES FOR PROVIDING MATERIAL

ON BEHALF OF YOUR COMPANY'S ADVERTORIAL

Green Street Capital Partners, LLC (“Consultant”) can not review all documents provided by the Company, so it is important to provide Consultant with information about your Company using the following guidelines. Consultant's
staff writer will construct an advertorial piece (to be used in all regional and national media) based on the information provided by the Company.

The basic prohibitive in all of the important statutes and rules that will create a liability under the federal and state securities laws is directed against making false and misleading statements. The following are general guidelines to be used when providing Consultant with material for the purposes of writing Company advertorial pieces.

	
1.
	
The best information to use will be all materials that will provide factual and truthful information on the Company’s history, operations, technology, research and development and products.

	
2.
	
Financial information which is audited and public. Example:  "For fiscal year end 2007 the Company revenues were $XXXX.XX.”

	
3.
	
Names of outside persons, companies or products may not be used without the express, written permission of the "entity". This involves providing the "entity" with a copy of the proposed statement specifying where it will be printed and obtaining written consent of the "entity".

	
4.
	
All references must have verifiable sources. Example:  "The market of this technology has been estimated to be in excess of $50 million.  (See Forbes Magazine pg. xx, Aug., 2007).”

	
5.  
	
   Projections, whether of financials, sales, or otherwise are dangerous as they may be relied upon as fact. If not met, they can be the basis of law suits. All projections must be pre-released in a Company press release prior to any Consultant publishing.

	
6.  
	
   Exaggerations and exclamations are to be avoided at all times.

	
7.  
	
  An omission of material fact is also considered misleading if not fully disclosed. Example:  "The Company received a large order for their product - however, the Company failed to state the order was given at a 60% discount off the Company's regular prices. The statement could then be fraudulent and misleading.”

 

 

 

 

 

 

 

  

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EXHIBIT D

GREEN STREET REPORT

PRICE LIST FOR MEDIA SERVICES

There are no additional charges for these items set forth in paragraph one of the Agreement and those set forth in Exhibit B.

PRINT MEDIA:

Cover and 4 Page Advertorial in Green Street Report: $28,600

WEBSITE DESIGN:

$3,000

BOOKMARKING VIDEO AND SOCIAL NETWORKING:

$500 monthly

VIDEO PRODUCTION:

$10,000 (full corporate profile with management interviews)

CONFERENCES AND OTHER MEDIA SERVICES:

To be agreed between Company and Consultant on a case by case basis.

 

 

 

 

 

 

 

 

 

  

10exh102.htm

 

Exhibit 10.2

LEASE FOR PREMISES AT

SANTA FE BUSINESS INCUBATOR, INC.

Santa Fe, New Mexico

Office Space

THIS LEASE is made at Santa Fe, New Mexico this 19th day of January 2010, by and between Santa Fe Business Incubator, Inc., a New Mexico no1nprofit corporation (“Landlord”), and Quantum
Solar Power Corp. (“Tenant”).

WITNESSETH:

That in consideration of the mutual promises, covenants, conditions, and terms to be kept and performed, it is agreed between the parties hereto as follows:

	
 
	

1.   Business Assistance Program 

The Landlord and Tenant understand that Landlord desires to assist and encourage Tenant’s business by providing certain extraordinary business assistance services in addition to the Lease of the Premises.  These services are described in the materials provided to Tenant prior to the time of Tenant’s acceptance of this
Lease, which materials (as may be amended from time to time by Landlord) are incorporated into this Lease by reference.  In addition, Tenant has received, prior to the execution of this Lease, materials regarding eligibility and hiring practices and employment and financial reporting requirements.  The parties agree that no default, defect, or omission by Landlord in the providing and performance of such services shall be deemed to be a default by Landlord under this Lease.

	
 
	

2.   Description 

Landlord leases to Tenant, and Tenant shall pay rent for the Premises identified as office space C09 (“Premises”), at 3900 Paseo del Sol, Santa Fe, New Mexico.

	
 
	

3.   Term 

Tenant shall lease the Premises for a term of one (1) year commencing the 1st day of February 2010, and ending on the 31st day of January
2011.  Landlord and Tenant shall each have the right to terminate this Lease upon giving the other at least thirty (30) days written notice of their intent to terminate, such termination to be at the end of such thirty (30) day period or at such later date as is indicated in the notice to terminate, but not prior to the end of one complete billing cycle.

	
 
	

4.   Rent / Additional Rent / Utilities 

For the Premises and Term set forth above, the Tenant agrees to pay a total rent of Eight Thousand Four Hundred and no/100 Dollars ($8,400.00). Rent to be paid in equal monthly
installments of Seven Hundred and no/100 Dollars ($700.00) in advance on the first day of each calendar month.  In the event possession is taken on a date other than the first day of the month, the rent shall be pro-rated for the period between the date of possession and the first of the next calendar month in order to place the rental payments on the foregoing schedule.

 

 

 

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Tenant agrees to pay any and all charges incurred under separate agreement or otherwise for services furnished by Landlord as well as any other amounts due Landlord as additional rent which shall be paid along with the monthly installment of rent.

Subject to the provisions in Section 1 and the materials relating to extraordinary utilities and trash removal, the rent in the office space shall include the following: real property taxes and assessments, gas, water, and electricity.

	
 
	

5.   Insurance Costs of Lessor 

Tenant shall pay, as additional rent, any increase in premiums for insurance against direct loss that may be charged during the term of this Lease on the amount of insurance now carried by the Landlord on the Premises and on the improvements situated on the Premises resulting from the business carried on therein by the Tenant or from the character
of its occupancy, even if the Landlord has consented thereto.

	
 
	

6.   Security Deposit 

As additional security for the faithful performance of its obligations hereunder, Tenant shall pay to Landlord the sum of Seven Hundred and no/100 Dollars ($700.00). Unless
otherwise agreed by landlord and tenant in advance, in writing, Tenant shall pay the security deposit in one payment on or before the 1st day of February 2010.  The security deposit may be applied by Landlord for the purpose of curing any default or defaults of Tenant under this Lease, in which event Tenant shall replenish said deposit in full by promptly paying to Landlord the amount so applied.  If
Tenant has not defaulted or Landlord has applied the deposit to cure a default and Tenant has replenished same, then the deposit, or such applicable portion thereof, shall be repaid in Cash to Tenant promptly after the termination of this Lease.  The deposit shall not be deemed an advance payment of rent or a measure of Landlord’s damages for and default by Tenant. No interest shall be paid on Tenant’s security deposit.

	
 
	

7.   Late Charges 

Tenant agrees to pay a surcharge of fifteen percent (15%) on any amount ten (10) or more days past due, and a surcharge of twenty-five percent (25%) on any amount fifteen (15) or more days past due. All payments received shall be first applied to any past due amounts and then to current charges.  No payment by Tenant or acceptance
by Landlord of a lesser amount than the basic rent, additional rent, or other payments to Landlord due hereunder shall be deemed to be other than part payment of the full amount due.  Landlord may accept such part payment without prejudice to Landlord’s right to recover the balance due and payable or to pursue any other remedy provided in this Lease.

	
 
	

8.   Place of Payment 

Any payment due from the Tenant to the Landlord under this Lease shall be made the Landlord’s office at 3900 Paseo del Sol, Santa Fe, New Mexico, or at such other place the Landlord designates from time to time in writing.

 

 

 

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9.   Holding Over 

In the event that Tenant holds over after expiration of this Lease without a written agreement between the parties to renew, extend, or otherwise renegotiate the leasehold such holding over shall be construed as a month-to-month tenancy on the terms and conditions, so far as applicable, of this Lease.

	
 
	

10.   Condition of Premises at Time of Leasing 

The Tenant acknowledges that it has examined the Premises prior to the making of this Lease and knows its condition, and that no representations as to its conditions or state of repair has been made by the Landlord or its agents that are not expressed in this Lease.  The Tenant hereby accepts the Premises in its present condition
at the date of the execution of this Lease.

	
 
	

11.   Delay in Obtaining Possession 

If the Tenant cannot take possession of the Premises at the time provided above because the Premises are not ready, or because another tenant is holding over, or because of any cause beyond the control of the Landlord, the Landlord shall not be liable in damages to the Tenant; but rent shall fully abate during the period of any such delay.
Landlord shall not be liable for failure to deliver the Premises to Tenant on the beginning date of this Lease for reasons beyond the Landlord’s control.

	
 
	

12.   Use and Occupancy 

The Premises shall be used during the term of this Lease for the business of Tenant described as Quantum Solar Power Corp. and for no other purpose.  The Premises shall not be used, occupied, or kept in violation of any law, municipal ordinance, or regulation.

	
 
	

13.   Unlawful or Dangerous Activity 

Tenant shall neither use nor occupy the demised Premises or any part thereof for any unlawful, disreputable, or ultrahazardous business purpose, nor operate or conduct business in a manner constituting a nuisance of any kind.  Tenant shall immediately, on discovery of any unlawful, disreputable, or ultrahazardous use, take action
to halt such activity.  Tenant agrees to comply with all applicable laws, ordinances, and regulations of the City of Santa Fe, the State of New Mexico, and the United States Government,  and to conform to all reasonable rules and regulations which Landlord may establish; not to damage any part of the premises; and not to permit any employee, agent, customer, or visitor to be in violation of any obligation of Tenant under this Lease.

	
 
	

14.   Care of Premises 

The Tenant shall not perform any act or carry on any practices that may injure the Building or be a nuisance to other tenants in the Building and shall keep the Premises clean and free from rubbish and dirt at all times.

 

 

 

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15.   Casualty 

Subject to the conditions set forth in Section 15, if the Premises are damaged or destroyed, in whole or in part, during the Term of this Lease, the Landlord shall repair and restore them to good and tenable condition with reasonable dispatch.  If the Premises are untenable in whole, the rent shall abate in full until they are restored
to good and tenable condition.  If the premises are untenable in part, rent shall abate pro rata until they are restored to good and tenable condition.  Provided that:

	
  
	
(A)
	
If delay in repair or restoration is caused by the Tenant failing to adjust its own insurance or to remove its damaged goods, wares, equipment, or other property within a reasonable time, the rent shall not abate during the period of such delay;

	
  
	
(B)
	
If casualty damage is caused by the negligent or willful acts of the Tenant, its agents or employees, there shall be no rent abatement;

	
(C)  
	
If during the time of repair, the Tenant uses a portion of the Premises for storage, Tenant shall be liable for a reasonable storage fee;

	
(D)  
	
In the event the Premises or the Building are destroyed to the extent of more than one-half its value, the Landlord may terminate the Lease by a written notice to Tenant.

	
 
	

16.   Loss Caused by Other Tenants 

The Landlord shall not be liable to the Tenant for damages occasioned by the acts or omissions of persons occupying adjoining Premises or any part of its Building of which the Premises are a part, or for any loss or damage resulting to the Tenant of its property from bursting, stoppage, or leaking of water, gas, or sewer pipes.

	
 
	

17.   Insurance to be Obtained by Tenant 

The Tenant shall carry the following minimum amounts of insurance during the life of this Lease with the Landlord listed as additional insured:

	
  
	
(A)
	
Comprehensive General Liability insurance issued by a reputable insurance company licensed to do business in New Mexico for bodily injuries, including those resulting in death, and property damage in an amount not less than a combined single limit of Three Hundred Thousand Dollars ($ 300,000), and an additional Fifty Thousand Dollars ($50,000) for Fire Legal Liability.

	
  
	
(B)
	
At the sole discretion of the Tenant, insurance for all contents, and Tenant’s trade fixtures, machinery, equipment, furniture, furnishings, and inventory in the leased Premises. Tenant must be advised the Landlord is not responsible for loss of business contents or business income of the Tenant.

	
  
	
(C)
	
Insurance for any leasehold improvements made by Tenant upon the Premises against all risks of direct physical loss, including water pipe and sprinkler breakage and damage.  The insurance coverage shall be for not less than One Hundred Percent (100%) of the then current full replacement cost of such improvements with all proceeds of insurance payable to Landlord provided, however, that such proceeds shall
be used to restore the improvements.

The insurance shall be in companies and in form, substance, and amount (where not stated above) satisfactory to the Landlord.  The insurance shall not be subject to cancellation except after at least thirty (30) days prior written notice to the Landlord.  Certificate of insurance together with satisfactory evidence of payment
of the premiums thereon, shall be deposited with Landlord at the commencement date of this Lease and renewals thereof not less than thirty (30) days prior to the end of the term of such coverage.

 

 

 

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Should Landlord receive notice of cancellation of said insurance, it shall notify the Tenant to cease operations immediately and not to start again until Landlord receives new copies evidencing that insurance describe above is in full force and effect.

	
 
	

18.   Indemnification 

The Tenant shall indemnify and save the Landlord, and the President of Santa Fe Business Incubator, Inc. harmless from all claims or liabilities of any type of nature or any person, firm, or corporation, including any agents or employees of the Tenant, arising in any manner from the Tenant’s performance of operations and business covered
by this Lease.

Landlord shall not be liable to the Tenant, or to any other person, for any damage to any person or property caused by act, omission or neglect of Tenant.  Tenant agrees to indemnify or hold Landlord harmless from any such liability or claim of liability against Landlord, including attorney’s fees.

	
 
	

19.   Repairs and Alterations by Tenant 

Tenant shall, at its own expense, keep the Premises in good repair, and will, at the expiration of this Lease, deliver the Premises to the Landlord in like condition as when taken, reasonable use and wear thereof and damage by the elements excepted.  The Tenant shall not make any alterations, additions, or improvements to the Premises
without the Landlord’s prior written consent.  All alterations, additions, and improvements made by either party upon the Premises during the Term hereof, except movable office furniture and trade fixtures put in at Tenant’s expense, shall become property of the Landlord at the expiration of the Term.  Tenant covenants to pay as they become due all just claims for labor and materials used in making any such additions, alterations, or improvements and to indemnify and save Landlord
and the Premises harmless of and from all costs, expenses, and damages, including reasonable attorney’s fees and costs of suit arising out of or connected with any statutory or other liens against the Premises, the Building, or the Property for or on account of such labor and materials.

Tenant covenants both for itself and its servants, agents, and employees, to observe and keep all necessary rules and regulations of the Building which affect said Premises and will at its own cost and expense make any and all necessary alterations or changes in the Premises which may be necessary because of any act of the Tenant, its servants,
agents, and employees, in violation of any law, ordinance, rule or regulation of any city, state, or government body.  Upon the failure of the Tenant to make or proceed to make, any such changes or alterations within thirty (30) days after being required to by any other rule, regulation, or ordinance above referred to within ten (10) days of the receipt of said order or notice, then Landlord may enter the Premises at its option and do and perform said alterations or make such changes at the cost and
expense of the Tenant, which said expense shall be deemed as rent and added to the next monthly installment of rent then accruing and be collectible as such.

 

 

 

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20.   Access to Premises and Common Areas 

Landlord may enter the Premises at any reasonable time for any reasonable purpose.  If the Landlord deems any repair necessary for which the Tenant is responsible, Landlord may demand that the Tenant perform the repair.  If Tenant refuses or neglects to make the repair in a reasonable time, the Landlord may make the repair
and charge the Tenant in accordance with Section 6.  The Landlord may enter the premises at reasonable times to install or repair pipes, wires, or other appliances or to make any repair the Landlord deems essential to the use and occupancy of the other parts of the Building.  Landlord shall give reasonable advance notice to Tenant of its intention to make non-emergency repairs.

In addition to the Premises, the Tenant shall have a non-exclusive right to access to such common areas as Landlord determines to be necessary to the use of the Premises as appropriate.

	
 
	

21.   Advertising Displays 

No sign or advertising shall be displayed upon the Premises unless approved in writing by the Landlord.

	
 
	

22.   Nondiscrimination 

The Tenant agrees not to discriminate against any client, employee, or applicant for employment or for services because of race, creed, color, national origin, sex, sexual orientation, or age, with regard to, but not limited to, the following: employment upgrading; demotion or transfer, recruitment or recruitment advertising; layoffs or termination;
rates of pay or other forms of compensation; selection for training; rendition of services.

	
 
	

23.   Assignment 

The Tenant shall not assign, transfer, or mortgage this lease or sublet the Premises in whole or in part without the Landlord’s prior written consent.  Any assignment or subletting shall not relieve Tenant of any of its obligations under this lease.

	
 
	

24.   Trash Service 

Landlord agrees to provide at its cost a suitable trash receptacle and regularly scheduled pick-up sufficient to service Tenant in order to prevent the unsightly accumulation of trash and other debris.  Tenant shall be responsible for trash collection charges that exceed a normal service minimum Charge.  Tenant will dispose
of all hazardous waste according to local laws and ordinances.

	
 
	

25.   Default 

It is expressly understood and agreed that if the rents above, or any part thereof, shall be in arrears, or if default shall be made in any of the covenants of agreements herein contained to be kept by Tenant, Landlord may, at Landlord’s election, give Tenant ten (10) days written notice of Landlord’s intent to terminate said Lease;
provided however, that during said ten (10) day period, Tenant may correct defaults as set forth in said notice and avoid forfeiture thereof.

 

 

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Upon termination of this Lease pursuant to the preceding paragraph, Tenant shall peacefully surrender the premises to Landlord, and Landlord may upon such termination or at any time after such termination, without further notice, rent the Premises. If Tenant fails to peacefully surrender the Premises, the Landlord may repossess it by force,
summary proceedings, ejectment, or otherwise and may dispossess Tenant and remove Tenant and all other persons and property from the Premises.  At any time after such termination, Landlord may relet the Premises or any part thereof in the name of Landlord or otherwise for such term (which may be greater or lesser than the period which would otherwise have constituted the balance of the term of this Lease) and on such conditions (which may include concessions or free rent) as Landlord, in Landlord’s
discretion may determine and may collect and receive the rents therefor.  Landlord shall in no way be responsible for or liable for any failure to relet the Premises or any part thereof or for any failure to collect any rent due upon such reletting.

No such termination of this Lease shall relieve Tenant of Tenant’s liability and obligations under this Lease, and such liability and obligations shall survive any such termination.  In the event of any such termination, whether or not the Premises or any part thereof shall have been relet, Tenant shall pay to Landlord the
rent required to be paid up by Tenant up to the time of such termination, and thereafter, Tenant, until the end of what would have been the term of this Lease in the absence of such termination shall be liable to Landlord for, and shall pay to Landlord as and for liquidated and agreed damages for Tenant’s default;

	
  
	
(A)
	
The equivalent of the amount of rent which would be payable under this Lease by Tenant if this Lease were still in full force and effect, Less

	
(B)  
	
The net proceeds of any reletting effected pursuant to the provisions of the preceding subparagraph, after deducting all of Landlord’s reasonable expenses in connection with such reletting, including, but not limited to, all repossession costs, brokerage commissions, legal expenses, attorneys’ fees, alteration costs and expenses of preparation
for such reletting.

	
 
	

26.   Landlord’s Lien for Rent 

Tenant hereby grants a lien to Landlord on Tenant’s interest in all improvements, fixtures, or personal property, including inventory on the Premises.  In the event Tenant fails to cure a default under this Lease, Tenant authorizes Landlord to take possession of the property free and clear of Tenant’s interest therein.

	
 
	

27.   Cumulative Remedies 

Remedies, rights, and benefits of this Lease are cumulative and shall not be exclusive of any other remedy, right, or benefit contained herein or of any remedy, right, or benefit allowed by law.

	
  
	
28.   Jurisdiction and Attorney’s Fees

The prevailing party is entitled to any and all attorney fees or other costs incurred in enforcing the provisions set forth in this Lease.  This paragraph shall also apply to any court action or appeals therefrom.

 

 

 

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29.   Waiver 

One of more waivers by the Landlord or Tenant of any of this Lease’s provisions shall not be construed as a waiver of a further breach of the same provision.

	
 
	

30.   Bankruptcy and Insolvency 

The Landlord may cancel this Lease in the event that the estate created hereby is taken in execution or by other process of law; or, if the Tenant is declared bankrupt or insolvent according to law; or if any receiver is appointed for the business and property of the Tenant; or if any assignment is made of the Tenant’s property for the
benefit of creditors.

	
 
	

31.   Rules and Regulations 

Tenant, its agents, employees, and invitees will use the common areas of the Building (reception area, conference rooms, halls, steps, passageways, toilet rooms, delivery area, parking area, and so forth) subject to rules as the Landlord may make from time to time for the general safety and convenience of the occupants and tenants of the Building.

	
 
	

32.   Substitute Space 

It is understood that Landlord may substitute space within the Building of similar quality for the Premises leased to the tenant.  Landlord shall be responsible for all expenses in moving Tenant to the new Premises.

	
 
	

33.   Quiet Enjoyment 

Upon performing the foregoing covenants, the Landlord agrees that the Tenant shall and may peaceably and quietly have, hold, and enjoy the Premises of the Term herein.

	
 
	

34.   Partial Validity 

If any provision of this Lease shall be invalid, the remainder of this Lease shall not be affected thereby.

	
 
	

35.   Notice 

Whenever this Lease requires notice to be served on Landlord or Tenant, notice shall be effective the day after mailing, and shall be sufficient if mailed by first-class mail with postage fully paid, to the following address:

Tenant:                                                                           Landlord:

Quantum Solar Power Corp                                         Santa Fe Business Incubator

3900 Paseo del Sol                                                        3900
Paseo del Sol

Santa Fe, New Mexico 87507                                       Santa Fe, New Mexico 87507

	
 
	

36.   Amendments and Modifications 

Except for the provisions in Section 1 relating to the Business Assistance Program, Landlord and Tenant agree that this Lease contains the entire agreement, express or implied, of the parties hereto.  There shall be no amendments or modifications to this Lease, unless agreed to in writing, signed by Landlord and Tenant.

 

 

 

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37.   Binding Successors 

This Lease is binding on the respective heirs, successors, representatives, and assigns of the parties.

	
 
	

38.   Applicable Law 

This Lease shall be constructed according to the laws of the State of New Mexico.

IN WITNESS WHEREOF, the parties have signed this Lease in Santa Fe, New Mexico, the day and year written below.

	
LANDLORD: Santa Fe Business Incubator, Inc.
	
TENANT: Quantum Solar Power Corp.

 

	 Dated: 02/03/2010	Dated: 02/01/2010
	 	 
	 	 
	 By: MARIE LONGSERRE	By:  DARYL EHRMANTRAUT
	        Marie Longserre	        Daryl Ehrmantraut 
	        President/CEO	        CEO 
	 	 

 

 

 

 

 

 

 

 

  

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DISCLAIMER

THIS AGREEMENT of understanding is prepared for the benefit of the INCUBATOR PROGRAM, hereinafter referred to as “Program,” and Quantum Solar Power Corp. hereinafter referred to as “Business,” both parties which
desire to clearly understand the relationship developed for the benefit of promoting and assisting in this limited arrangement.

Program and Business are neither a partnership nor a venture of any description, in fact or law, but rather are independent entities forming a voluntary arrangement wherein Program is a general business advisor of Business.  Business is under no compulsion or constraint to accept or
implement the suggestions and advisement of Program.

Business specifically acknowledges and agrees that Program has no liability, past, present, or future, as to the final and ultimate decisions of Business, nor is Business compelled in any fashion to accept the advisement and suggestions of Program.

Program neither assumes nor authorizes Business to assume any liability of behalf of Program or suggest to third parties, either expressly or implied, that Program is in any way a principal, agent, or associated entity of Business, and

Business specifically acknowledges its responsibility for all decisions and business matters related to its operation and control.

The Business shall indemnify and save the Program; the Landlord; the President of the Santa Fe Business Incubator, Inc.; and any of the programs’ agents, advisors, representatives, and employees harmless from all claims or liabilities of any type of nature or any person, firm, or corporation,
including any agents or employees of the Business, arising in any manner from the Business’s performance of operations and business covered by this Lease and this disclaimer.

Program and Business agree herein to represent accurately the relationship between Program and Business and to abide by these provisions.

Executed this 1 day of February, 2010, in Santa Fe, New Mexico.

	
Incubator Program
	
Business: Quantum Solar Power Corp.

	 	 
	 MARIE LONGSERRE	DARYL EHRMANTRAUT
	 Marie Longserre	Daryl Ehrmantraut 
	 President/CEO	CEO 
	 	 

 

                                                                                                                             

                                                  

                                                              

  

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