Document:

saveair_8k-ex1001.htm

    EXHIBIT
      10.1

    

    MODIFICATION
      AGREEMENT

    

    THIS
      MODIFICATION AGREEMENT (the "Agreement") is made and entered into as of August
      29, 2007 by and between Save the World Air, Inc. (the "Company") and the
      individuals and entities whose signatures are set forth below at the end of
      this
      Agreement (the "Investors").

    

    WHEREAS,
      pursuant to the Confidential Private Placement Memorandum dated January 12,
      2007, (the "Offering Memorandum"), the Company entered into promissory notes
      (the "Notes") with the Investors pursuant to which the Company borrowed a total
      of $400,000 from the Investors; and

    

    WHEREAS,
      among other things, the Company was obligated to file a registration statement
      (the "Registration Statement") registering the Conversion Shares and Warrant
      Shares on or before July 2, 2007, and such Registration Statement was not filed
      by such date, resulting in certain consequences thereafter; and

    

    WHEREAS,
      the Company and the Investors desire to modify certain of the terms and
      provisions of the Notes as set forth in this Agreement.

    

    NOW,
      THEREFORE, in consideration of the mutual promises and covenants contained
      herein, and other good and valuable consideration, the receipt and sufficiency
      of which is acknowledged, the Company and the Investors agree as
      follows:

    

    1.
      Definitions.

    

    All
      terms
      not defined herein shall have the meaning ascribed to them in the Offering
      Memorandum.

     

    2.
      Registration Rights.

    

    Promptly,
      but no later than November 30, 2007, the Company shall file the Registration
      Statement with the Securities and Exchange Commission (the "SEC") to register
      the Conversion Shares and the Warrant Shares.

    

    3.
      Interest Rate of Notes.

    

    In
      consideration of this Agreement, effective August 1, 2007, the interest rate
      on
      the Notes shall be increased to 18% per annum until such time as the
      Registration Statement is declared effective by the SEC.

    

    4.
      Conversion Price.

    

    In
      consideration of this Agreement, the Conversion Price for all Conversion Shares
      shall be amended to be $0.45 per share.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    5.  Warrants.

    

    In
      consideration of this Agreement, each Investor shall receive, for no additional
      consideration, Warrants ("Additional Warrants") in an amount equal to an
      additional 50% of the Warrants originally issued pursuant to the terms of
      the Offering Memorandum. The Additional Warrants shall have the same
      registration rights as are described in the Offering Memorandum applicable
      to
      the Warrants, shall be exercisable immediately upon issuance, shall remain
      exercisable for a period of five years from the date of this Agreement, on
      a
      cash basis only, at an initial exercise price of $0.45 per share and shall,
      in
      all other respects, have the same terms and conditions, and be in the same
      form,
      as the Warrants.

    

    6.
Filing
      Delays.

    

    If
      the
      Company does not file the Registration Statement with the SEC by November 30,
      2007, each Investor shall receive, for no additional consideration, Warrants
      ("Delay Warrants") in an amount equal to an additional 50% of the Warrants
      originally issued pursuant to the terms of the Offering Memorandum. The Delay
      Warrants shall have the same registration rights as are described in the
      Offering Memorandum applicable to the Warrants, shall be exercisable immediately
      upon issuance, shall remain exercisable for a period of five years from the
      date
      of this Agreement, on a cash basis only, at an initial exercise price of $0.45
      per share and shall, in all other respects, have the same terms and conditions,
      and be in the same form, as the Warrants.

    

    7.
Other
      Provisions Unaffected.

    

    The
      terms
      and conditions of the Offering Memorandum, the Notes and the Warrants, to the
      extent not expressly amended in this Agreement, shall remain in full force
      and
      effect.

    

    8. Counterparts.

    

    This
      Agreement may be executed in counterpart copies, all of which taken together
      shall be deemed to be a single agreement.

    

    [rest
      of
      page intentionally left blank]

     

    
 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, each of the Company and the Investors has caused this Agreement
      to be executed as of the date first set forth hereinabove.

    

    THE
      COMPANY:

    

    SAVE
      THE
      WORLD AIR, INC.

    

    /s/
      CHARLES R. BLUM

    Name:
      Charles R. Blum

    Title:
      President and Chief Executive Officer

    

    INVESTORS:

    

    /s/
      PHILLIP A. COLE

    Name:
      Phillip A. Cole

    

    /s/
      RICHARD BINS

    Name:
      Richard Bins

    

    /s/
      LOIS A. BINS

    Name:
      Lois A. Bins

    

    /s/
      HENRY ARNEBOLD

    Name:
      Henry Arnebold

    

    /s/
      NANCY ARNEBOLD

    Name:
      Nancy Arnebold

    

    /s/
      FRANK JORDAN

    Name:
      Frank Jordan

    

    /s/
      ROBERT KATZ

    Name:
      Robert Katz

    

    /s/
      JAN FREDRIKSSON

    Name:
      Jan
      Fredriksson

    

    /s/
      EARL POMBERG

    Name:
      Earl Pomberg

     

     

     

     

    3saveair_8k-ex1002.htm

    

    EXHIBIT
      10.2

    

    SECOND
      MODIFICATION AGREEMENT

    

    THIS
      SECOND MODIFICATION AGREEMENT (the "Second Modification Agreement") is made
      and
      entered into as of November 30, 2007 by and between Save the World Air, Inc.
      (the "Company") and the individuals and entities whose signatures are set forth
      below at the end of this Second Modification Agreement (the
      "Investors").

    

    WHEREAS,
      pursuant to the Confidential Private Placement Memorandum dated January 12,
      2007, (the "Offering Memorandum"), the Company entered into promissory notes
      (the "Notes") with the Investors pursuant to which the Company borrowed a total
      of $400,000 from the Investors; and

    

    WHEREAS,
      among other things, the Company was obligated to file a registration statement
      (the "Registration Statement") registering the Conversion Shares and Warrant
      Shares on or before July 2, 2007, and such Registration Statement was not filed
      by such date, resulting in certain consequences thereafter; and

    

    WHEREAS,
      the Company and the Investors on August 29, 2007 entered into a Modification
      Agreement (the "Modification Agreement") which extended the date to file the
      Registration Statement to November 30, 2007; increased the interest rate to
      18%
      effective August 1, 2007; reduced the Conversion Price to $0.45 per share and
      provided for the issuance of Additional Warrants and Delay Warrants each in
      an
      amount equal to 50% of the Warrants originally issued. The Additional Warrants
      and the Delay Warrants are exercisable immediately upon issuance, shall remain
      exercisable for a period of five years from the date of issuance at an exercise
      price of $0.45 per share. The Company and the Investors now desire to modify
      further certain of the terms and provisions of the Notes as set forth in this
      Second Modification Agreement.

    

    NOW,
      THEREFORE, in consideration of the mutual promises and covenants contained
      herein, and other good and valuable consideration, the receipt and sufficiency
      of which is acknowledged, the Company and the Investors agree as
      follows:

    

    1.
      Definitions.

    

    All
      terms
      not defined herein shall have the meaning ascribed to them in the Offering
      Memorandum and the Modification Agreement dated August 29, 2007.

     

    2.
      Waved Interest.

    

    In
      consideration of this Second Modification Agreement, the Investors agree to
      forgive all accrued interest on their Notes, from the date of issuance through
      December 14, 2007.

    

    3.
      Note Repayment.

    

    On
      December 14, 2007, the Company shall pay all Investors 50% of the principal
      amount of their original Notes which equals to a total cash repayment of
      $200,000.00. Additionally, in repayment of the other 50% of the principal amount
      of the original Notes, on December 14, 2007 the Company shall issue to Investors
      a total of 1,060,000 shares of the Company's Common Stock, $0.001 par value
      (the
      "Conversion Shares").

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
 

    4. Note
      Cancellation.

    

    Concurrently
      with the cash payment and the Conversion Share issuance in accordance with
      section 3 above, the original of the Notes shall be delivered to the Company,
      whereupon they shall be marked and deemed cancelled and of no further force
      or
      effect.

    

    5.
No
      Registration Rights.

    

    The
      Company shall not be required to, and shall not, file a Registration Statement
      with the Securities and Exchange Commission (the "SEC") or any state securities
      agency to register or qualify the Notes, the Warrants, the Conversion Shares
      or
      the Warrant Shares. Conversion Shares and Warrant Shares when issued will be
      deemed restricted securities and bear appropriate legends.

    

    6.
      Warrants Provisions Unaffected.

    

    The
      terms
      and conditions of the Warrants, to the extent not expressly amended in this
      Second Modification Agreement, shall remain in full force and effect. More
      specifically, besides the original Warrant and the Additional Warrants, the
      Company shall also issue the Delay Warrants as described in the Modification
      Agreement dated August 29, 2007.

    

    7.
      Conflict.

    

    In
      the
      event of any conflict between the terms and conditions of the Modification
      Agreement and the Second Modification Agreement, this Second Modification
      Agreement shall control.

    

    8.
      Counterparts.

    

    This
      Second Modification Agreement may be executed in counterpart copies, all of
      which taken together shall be deemed to be a single agreement.

    

    [rest
      of
      page intentionally left blank]

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, each of the Company and the Investors has caused this Second
      Modification Agreement to be executed as of the date first set forth
      hereinabove.

    

    THE
      COMPANY:

    

    SAVE
      THE
      WORLD AIR, INC.

    

    

    /s/CHARLES
      R. BLUM

    Name:
      Charles R. Blum

    Title:
      President and Chief Executive Officer

    

    

    INVESTORS:

    

    /s/
      Phillip A. Cole

    Name:
      Phillip A. Cole

    

    /s/
      Richard Bins

    Name:
      Richard Bins

    

    /s/
      Lois Bins

    Name:
      Lois A. Bins

    

    /s/
      Henry Arnebold

    Name:
      Henry Arnebold

    

    /s/
      Nancy Arnebald

    Name:
      Nancy
      Arnebold

    

    /s/
      Frank Jordan

    Name:
      Frank Jordan

    

    /s/
      Robert Katz

    Name:
      Robert Katz

    

    /s/
      Jan
      Fredriksson

    Name:
      Jan
      Fredriksson

    

    /s/
      Earl Pomberg

    Name:
      Earl Pomberg

     

     

     

     

    3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00133-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00133-of-00352.parquet"}]]