Document:

SECURITY AGREEMENT

Exhibit 10.2

SECURITY AGREEMENT

This Security Agreement (this “Agreement”) is entered into as of the 24rd day of September, 2008, by Globetech Environmental, Inc, a Washington corporation, with an address of 7716 W. Rutter Parkway, Spokane, Washington 99208 (the “Debtor”), for the benefit of Globe-Tek, LLC, a Washington limited liability company, with an address of 1362 N. Vista Ct, Spokane, Washington 99212, Tech-Rock, LLC, an Alaska limited liability company, with an address of 1362 N. Vista Ct, Spokane, Washington 99212, and MedRock, LLC, an Alaska limited liability company, with an address of 1362 N. Vista Ct, Spokane, Washington 99212 (collectively the “Secured Party”). 

R E C I T A L S:

A.  The Debtor, together with other parties, is executing a Secured Promissory Note for Multiple Advances (“Note”) with a maximum advancement amount of Four Hundred Thousand and no/100 Dollars ($400,000.00)  made payable to GK-Waste, LLC.   

B.  Tech-Rock, LLC has previously purchased and paid in full Debtor for three waste sterilization machines, for a total purchase price of One Million Five Hundred Thousand and 00/100 Dollars ($1,500,000), but Debtor has not yet paid in full for the manufacture of such machines or delivered such machines to Tech-Rock, LLC.

C.  MedRock, LLC, has previously purchased and paid in full Debtor for two waste sterilization machines, for a total purchase price of One Million Three Hundred Seventy Five Thousand and 00/100 Dollars ($1,375,000), but Debtor has not yet paid in full for the manufacture of such machines or delivered such machines to MedRock, LLC.

D.  GK Waste, LLC, Tech-Rock, LLC, and MedRock, LLC each have the same members.

E.  The Debtor has agreed to grant Secured Party a security interest in all the assets of Debtor to secure (i) payment of the Promissory Note, (ii) manufacture, payment in full, and delivery of the machines to Tech-Rock, LLC, and (iii) manufacture, payment in full, and delivery of the machines to MedRock, LLC

NOW, THEREFORE, the Debtor hereby agrees with the Secured Party as follows:

ARTICLE I.  DEFINITIONS

“Collateral” means all of the Debtor’s rights, title and interest in all of the assets of Debtor both tangible and intangible, including, but not limited to all copyrights, license rights, patent applications (including, but not limited to U.S. Patent Application No. 12/236,061 to Sampson, entitled, “Bio-Waste Sterilizer,” filed September 23, 2008, PCT Patent Application No.PCT/US08/77415 to Sampson, entitled, “Bio-Waste Sterilizer,” filed 

September 24, 2008), patents (either derived from the patent applications or otherwise), patent rights, trademarks (including, but not limited to U.S. Trademark Application No. 77/456,397 to Globetech Environmental, Inc., entitled “GT Waste Sterilizer,” filed April 23, 2008), trade names, intellectual property, good will, technical assets, computer programs, engineering, engineering drawings and designs, and all rights to applications for patents or trademarks, and accounts receivable.  

“Event of Default” means any Event of Default (as defined in the Promissory Note).

“Obligations” means any and all obligations and liabilities of every nature of the Debtor to the Secured Party arising out of or in connection with the Promissory Note or this Agreement.  The Obligations shall specifically include any and all principal, interest (including without limitation interest that, but for the filing of a petition in bankruptcy, would accrue on such obligations), fees, expenses, indemnities or other obligations or liabilities, whether voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed with others, and whether or not from time to time decreased or extinguished and later increased, created, or incurred, as well as any and all of such obligations or liabilities that are paid, to the extent such payment is avoided or recovered directly or indirectly from the Secured Party as a preference, fraudulent transfer, or otherwise, together with any and all extensions or renewals of the foregoing.  

ARTICLE II.   GRANT OF SECURITY INTEREST

To secure the payment and performance of the Obligations, the Debtor hereby grants to the Secured Party a continuing security interest in the Collateral and assigns the Collateral to the Secured Party.  

ARTICLE III.   COVENANTS OF THE DEBTOR

The Debtor shall fully perform each of the covenants set forth below.

3.1   Further Documentation

At its own expense, the Debtor shall execute and deliver any financing statement, any renewal, substitution or correction thereof or any other document; and shall take any such further action as the Secured Party may require in obtaining the full benefits of this Agreement.

3.2   Filing Fees

The Debtor shall pay all costs of filing any financing, continuation or termination statement with respect to the security interest granted herein.

3.3   Liens

Except for any security interest granted by Debtor to its primary lender to secure bank financing, the Debtor will neither create nor permit the creation of any lien, charge, pledge, security interest, encumbrance or other claim or interest in the Collateral without the prior written consent of the Secured Party.  

3.4   Disposition of Collateral

The Debtor shall not sell, transfer or otherwise dispose of any of the Collateral without the prior written consent of the Secured Party.

3.5   Indemnification

The Debtor agrees to pay, and to indemnify the Secured Party and hold the Secured Party harmless from, all liabilities, costs and expenses (including legal fees and expenses) in connection with protecting or realizing on the Collateral, enforcing any rights or remedies of the Secured Party or otherwise arising out of this Agreement.  

3.6   Notices

The Debtor will advise the Secured Party promptly in reasonable detail (a) of any lien, charge, pledge, security interest, encumbrance or other claim or interest asserted against any of the Collateral and (b) of the occurrence of any other event that could reasonably be expected to have a material adverse effect on the Collateral.

3.7   Further Assurances 

The Debtor agrees to take all actions which the Secured Party may request to perfect or maintain the perfection of the security interest granted herein and the Debtor authorizes the Secured Party to take such actions on behalf of the Debtor, including without limitation filing (including electronic or facsimile filing) financing statements describing the Collateral, which may include descriptions broader than as set forth in this Agreement.  The Debtor agrees that where allowed by law, a carbon, photographic or other reproduction of a financing statement or this Agreement is sufficient as a financing statement.

ARTICLE IV.   REPRESENTATIONS AND WARRANTIES

The Debtor hereby makes the following representations and warranties:

4.1   Title to Collateral

Except for obligations to MAS (as defined in the Note) the Debtor has good and marketable title to all of the Collateral, free and clear of all liens, charges, pledges, security interests, encumbrances or other claims or interests except for any security interest granted to Debtor’s primary lender to secure bank financing.

4.2   No Impairment of Collateral

None of the Collateral shall be impaired or jeopardized because of the security interest granted herein.

4.3   Other Agreements

The execution and delivery of this Agreement, the consummation of the transactions provided for herein, and the fulfillment of the terms hereof will not result in the breach of any of the terms, conditions, or provisions of, or constitute a default under, or conflict with or cause any acceleration of any obligation under any agreement or other instrument to which the Debtor is a party or by which the Debtor is bound or result in the violation of any applicable law.

4.4   No Approvals

No approvals of any governmental entity or third party are required in connection with the security interest herein granted.

4.5   Authority

The Debtor has full power and authority to grant to the Secured Party a security interest in the Collateral.

ARTICLE V.   THE SECURED PARTY’S RIGHTS WITH RESPECT TO THE COLLATERAL

5.1   No Duty on the Secured Party’s Part

The Secured Party shall not be required (except at its option upon the occurrence of any Event of Default) to realize upon any Collateral; collect the principal, interest or payment due thereon or exercise any rights or options of the Debtor pertaining thereto; make presentment, demand or protest; give notice of protest, nonacceptance or nonpayment; or do any other thing for the protection, enforcement or collection of any Collateral.  The powers conferred on the Secured Party hereunder are solely to protect the Secured Party’s interests in the Collateral and shall not impose any duty upon the Secured Party to exercise any such powers.  The Secured Party shall be accountable only for amounts that the Secured Party actually receives as a result of the exercise of such powers; and neither the Secured Party nor any of its officers, directors, employees or agents shall be responsible to the Debtor for any act or failure to act hereunder.

5.2   Right to Assign

The Secured Party may assign or transfer the whole or any part of the Obligations and may transfer therewith as collateral security the whole or any part of the Collateral; and all 

obligations, rights, powers and privileges herein provided shall inure to the benefit of the assignee and shall bind the successors and assigns of the parties hereto.

5.3   Duties Regarding Collateral

Beyond the safe custody thereof, the Secured Party shall not have any duty as to any Collateral in its possession or control, or as to any preservation of any rights of or against other parties.

ARTICLE VI.   THE SECURED PARTY’S RIGHTS AND REMEDIES

6.1   Acceleration; Remedies

(a)  Upon the occurrence of any Event of Default, the Secured Party shall have all rights and remedies available to it under the Promissory Note and this Agreement and any other related documents or agreements or available to it at law or in equity, including without limitation the Uniform Commercial Code.  The Secured Party may proceed to enforce of such rights and remedies or realize on any or all security for the Obligations in any manner or order it deems expedient without regard to any equitable principes of marshaling or otherwise.  No failure or delay on the part of the Secured Party in exercising any right, power or privilege hereunder and no course of dealing shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any right, power or privilege.  The rights and remedies of the Secured Party are cumulative and not exclusive of any rights or remedies that the Secured Party would otherwise have.  No notice to or demand on the Debtor, in any case, shall entitle the Debtor to any other or further notice or demand in similar or other circumstances or shall constitute a waiver of the right of the Secured Party to any other or further action in any circumstances without notice or demand. 

6.2   Notice of Sale

The Debtor hereby acknowledges and agrees that written notice mailed to the Debtor at the address designated herein ten days prior to the date of public or private sale of any of the Collateral shall constitute commercially reasonable notice.

6.3   Disposition of Collateral

In addition to all other rights and remedies available to the Secured Party upon the occurrence of an Event of Default, the Secured Party may dispose of any of the Collateral at public or private sale in its then present condition or following such preparation and processing as the Secured Party deems commercially reasonable.  The Secured Party has no duty to prepare or process the Collateral prior to sale.  The Secured Party may disclaim warranties of title, possession, quiet enjoyment and the like.  Such actions by the Secured Party shall not affect the commercial reasonableness of the sale.  Further, the Secured Party may comply with any applicable state or federal law requirements in connection with a 

disposition of the Collateral and compliance will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral.

ARTICLE VII.   GENERAL PROVISIONS

7.1   Termination of Agreement

This Agreement shall remain in full force and effect until the Obligations have been fully and finally discharged.  

7.2   Severability

If any provision of this Agreement is for any reason and to any extent determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement will be interpreted so as best to reasonably effect the intent of the parties hereto.  The parties agree to use their best efforts to replace such void or unenforceable provision of this Agreement with a valid and enforceable provision which is mutually agreeable so as to achieve, to the greatest extent possible, the economic, business and other purposes of the void or unenforceable provision.

7.3  Waiver

No waiver by any party of any breach of any provision hereof shall constitute a waiver of any other breach of that or any other provision hereof.  

7.4   Assignment

The Debtor may not assign this Agreement or any of its rights, interests or obligations hereunder without the prior written approval of the Secured Party.  All rights, powers, privileges and immunities herein granted to the Secured Party shall extend to its successors and assigns and any other legal holder of this Agreement, with full right by the Secured Party to assign and/or sell the same.   

7.5   Successors

Subject to the foregoing restrictions on assignment, the rights and obligations of the parties hereto shall inure to the benefit of, and be binding and enforceable upon, the respective successors and assigns of the parties. 

7.6   Governing Law; Venue

This Agreement shall be governed by, and interpreted under, the laws of the State of Washington applicable to contracts made and to be performed therein, without giving effect to the principles of conflicts of law.  The parties hereto hereby agree that any legal suit, action or proceeding arising out of or relating to this Agreement must be instituted in a federal or state court located in the County of Spokane, State of Washington.

7.7   Notices

All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally or by commercial messenger or courier service, or mailed by registered or certified mail (return receipt requested) or sent via facsimile (with acknowledgment of complete transmission) to each party at the address (or at such other address for a party as shall be specified by like notice) set forth below provided, however, that notices sent by mail will not be deemed given until received.

“Debtor”

Globetech Environmental, Inc.

7716 W. Rutter Parkway

Spokane, WA  99208

“Secured Party”

GLOBE – TEK, LLC 

5312 N. Vista Ct.

Spokane, WA 99212

7.8   Attorney’s Fees

In any action including, without limitation, mediation or arbitration between the parties to enforce any of the terms of this Agreement, the prevailing party shall be entitled to recover expenses, including reasonable attorney’s fees.

7.9   Counterparts

This Agreement may be executed in any number of counterparts, each of each of which will be an original, but all of which together will constitute one and the same instrument.

IN WITNESS WHEREOF, the Debtor and the Secured Party have caused this Agreement to be duly executed by their duly authorized officers as of the day and year first above written.

	 
	“Debtor”

	 
	Globetech Environmental, Inc

	 
	 

	 
	 

	 
	/s/ Donald Sampson

	 
	By_____________________________________

	 
	Donald Sampson, President

	 
	 

	                                                                     

	 

	 
	“Secured Party”

	 
	 

	 
	Globe-Tek, LLC

	 
	 

	 
	/s/ Gregory D. Jeffreys

	 
	___________________________________________

	 
	Gregory D. Jeffreys, Managing Member

	 
	 

	 
	Tech-Rock, LLC

	 
	 

	 
	/s/ Gregory D. Jeffreys

	 
	___________________________________________

	 
	Gregory D. Jeffreys, Manager

	 
	 

	 
	 

	 
	/s/ Kimberly R. Jeffreys

	 
	___________________________________________

	 
	Kimberly R. Jeffreys, Manager

	 
	 

	 
	MedRock, LLC

	 
	 

	 
	/s/ Gregory D. Jeffreys

	 
	___________________________________________

	 
	Gregory D. Jeffreys, Manager

	 
	 

	 
	 

	 
	/s/ Kimberly R. Jeffreys

	 
	___________________________________________

	 
	Kimberly R. Jeffreys, Managerlgahold10kfy607x101_92708.htm

     

    
      

      

    

     

    Exhibit 10.1

     

    
 

    

     

    LICENSE
AGREEMENT

     

    This License Agreement (“Agreement”) is made this 2nd
day of January, 2008 (“Effective Date”) by and
between Let’s Go Aero, Inc. a Colorado corporation located at 3380 N. El Paso
St., Suite G, Colorado Springs, Colorado (“LGA”) and Cequent Towing
Products, Inc.,  located at 47774 Anchor Court West, Plymouth MI
48170, on behalf of itself and its parent, subsidiaries, sister companies and
any current or future related companies (collectively, “Cequent”).

     

    
      	
              1.  

            	
              LGA
      has developed, will develop and will continue to develop and is the sole
      owner of all right, title and interest in and to such intellectual
      property, including certain patents, patent applications, complete designs
      and designs in process, that relate to the design, manufacture and sale of
      products specified on Exhibit A, as well as
      all future cargo management and towing products that will be added by the
      parties as a signed addendum to Exhibit A (collectively, the “Products”), all of which
      will be attached to this Agreement and made part of it in its
      entirety.

            

    

     

    
      	
              2.  

            	
              LGA
      will provide to Cequent written notification of all future cargo
      management and towing products that LGA designs, develops or continues to
      develop during the Term (as later defined), which writing will be signed
      by the parties and added to Exhibit A, as subsequent A-1, A-2,
      etc.

            

    

     

    
      	
              3.  

            	
              The
      intellectual property owned by LGA and related to the design, manufacture
      and sale of Products is collectively referred to in this Agreement as the
      “Licensed
      Technology.”

            

    

     

    
      	
              4.  

            	
              Cequent
      desires to acquire a license for the Licensed Technology, in order to
      manufacture, make, have made, use, distribute, offer to sell, import and
      sell Products utilizing the Licensed Technology, referred to in this
      Agreement as the “Licensed
      Products.”

            

    

     

    The
parties agree that the recitals above are binding on the Parties and further
agree as follows:

     

    1. License
Grant

     

    1.1           LGA
grants to Cequent a worldwide limited exclusive license for the Licensed
Technology and all improvements thereto developed, owned or controlled by LGA to
make, manufacture, have made, use, import, offer for sale and sell the Licensed
Products set forth on Exhibit A under Cequent trademarks or trade names or such
other brands as Cequent may determine in its sole discretion, for a period
beginning as of the Effective Date and ending December 31, 2009 (the “Exclusive
License”).  The Parties acknowledge and agree that should LGA
develop or design a Product during the Term (as defined below), LGA will grant
to Cequent a worldwide limited exclusive license as stated in this paragraph 1
for the new Licensed Product, which two year period will begin upon the
execution of the signed addendum to Exhibit A and the exclusivity will end two
years thereafter, which license will also be designated as the “Exclusive
License” as the term is used throughout this Agreement.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

     

    1.2           Upon
expiration of any Exclusive License period, LGA grants to Cequent a worldwide
nonexclusive license for the Licensed Technology and all improvements thereto
owned or controlled by LGA to make, manufacture, have made, use, import, offer
for sale and sell the Licensed Products under Cequent trademarks or trade names
or such other brands as Cequent may determine in its sole discretion, for a
period beginning as of the expiration of any Exclusive License period through
the expiration or cancellation of any patents (the “Non-Exclusive Period”)
covering the Licensed Technology and Products (the “Non-Exclusive
License”).  The Exclusive License(s) and the Non-Exclusive
License(s) are collectively referred to in this Agreement as the “License”.

     

    1.3           Cequent
shall have the right to grant sublicenses under this Agreement to third parties
for the manufacture of the Licensed Product on behalf of Cequent, provided that
Cequent requires such third party to enter into a nondisclosure agreement
protecting the confidentiality of the Licensed Technology and the
License.  For a two year period beginning upon the expiration of any
Exclusive License period for Licensed Products and for a period not greater than
the first two years of any Non-Exclusive period, should LGA solicit direct sales
of Licensed Products, LGA agrees to purchase exclusively from Cequent all
required parts to manufacture and assemble the Licensed Products at the lowest
price that Cequent gives to any other customer.  All rights not
specifically granted to Cequent under this Agreement shall be reserved to
LGA.

     

    2.           Term &
Termination   Unless earlier terminated by Cequent, this
Agreement will be effective as of the Effective Date or the date of execution by
the parties of any written Addendum(s) to Exhibit A and shall expire
simultaneously with the cancellation or expiration of the patents covering the
Licensed Technology for the Licensed Products (the “Term”).   Cequent
shall have the right to terminate this Agreement without penalty or
consideration of any kind.  LGA may terminate this Agreement only upon
Cequent’s failure to cure a material breach of the Agreement within 60 days
after receipt of written notice of the material breach from LGA.

     

    3.           Royalties
and Other Payments

     

    3.1           Within
30 days from the date of this Agreement, Cequent shall pay a $400,000 fee to
LGA, which fee will include payment for the transition of existing Product sales
to current customers from LGA to Cequent and services related to the
commercialization and transition of the Products to
Cequent.  Additionally, as further consideration for the License
during the Term, Cequent will pay to LGA a royalty in the amount of 7% of the
Net Sales Price for the Licensed Products, as sold by Cequent to its customers,
except for a maximum of three customers specifically set forth in Exhibit B attached to this
Agreement and made part of it in its entirety (the “Special
Customers”).  Cequent will pay to LGA a royalty in the amount of 5% of
the Net Sales Price for the Licensed Products sold by Cequent to the Special
Customers.  All Special Customers shall be mass-market retailers
unrelated to Cequent, and shall be mutually agreed upon in writing by Cequent
and LGA.  Cequent and LGA may amend Exhibit B, Special
Customers  by mutual written consent of Cequent and LGA, which consent
will not be unreasonably withheld.    As used in this
Agreement, “Net Sales Price” means Cequent’s invoice price for the Licensed
Product as sold independently as a stand alone product to third parties,
exclusive of freight, packaging and delivery charges and sales or other taxes,
sales incentives and commissions, rebates, returns and warranty related expenses
and also excluding import or export duties shown on the invoice.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

     

    3.2           The
Royalties shall be paid in US dollars, on or before the 30th day following the
end of each calendar quarter (being the 30th day of January, April, July and
October, respectively) of each year.

     

    3.3           A
report of all sales made during the quarter shall accompany the Royalties
payment; however Cequent need not list the names of the customers, except for
the Special Customers.

     

    3.4           LGA
shall have the right to conduct an audit of such sales no more than once per
year.  Such audit shall be made by an independent auditor, be made no
sooner than after one week’s notice and shall be conducted in such a manner as
not to disrupt Cequent’s business.  If discrepancies amounting to more
than 5% of the amount due are discovered, then Cequent shall bear the cost of
the audit.

     

    4.           Warranties  LGA
represents and warrants that:  (i) it is the sole and exclusive owner
of the Licensed Technology; (ii) it has the right to grant the rights and
licenses granted herein; (iii) that the royalty rates specified in paragraph 3.1
above are no less favorable than the royalty rates provided to any other future
licensee of the Licensed Technology, (iv) that during the Non-Exclusive
Period(s), no other licensee of the Licensed Technology will be charged a
royalty rate less than 10.5% of the Net Sales Price and (v) as of the Effective
Date, there are no threatened or pending actions, suits, investigations, claims
or proceedings in any way relating to the Licensed Technology or the Licensed
Products and there are no actions for infringement against LGA or Cequent with
respect to items it manufactures and sells embodying the Licensed Technology
anywhere in the world.   In the event that the Licensed
Technology shall be found to infringe upon the rights of a third party, LGA
shall (i) find a suitable replacement, or (ii) design a suitable non-infringing
substitute.

     

    5.           Indemnification   
LGA will indemnify Cequent and hold Cequent harmless against, any claims for
loss, liability, damage or expenses (including, without limitation, reasonable
attorneys' fees, court costs and costs of investigation) arising in connection
with the manufacture, marketing, sale and use or warranty (express or implied)
related to the Licensed Technology for Licensed Products manufactured by LGA and
unmodified by Cequent, as well as infringement of patent(s), trademark(s) or
other intellectual property rights owned or possessed by a third party and
related to the Licensed Technology.  Cequent  will indemnify
LGA and hold LGA harmless against any claims for loss, liability, damage or
expenses (including, without limitation, reasonable attorneys' fees, court costs
and costs of investigation) arising in connection with the manufacture,
marketing, sale and use or warranty (express or implied) related to the Licensed
Technology for Licensed Products manufactured by Cequent or a third party under
the direction of Cequent and unmodified by LGA.  In the event Cequent
becomes aware of a third party's infringement of any rights of LGA with respect
to the Licensed Technology, Cequent will immediately notify LGA in writing. If
LGA chooses to bring suit against the allegedly infringing party, Cequent agrees
to provide LGA with such assistance and cooperation as may be reasonably
necessary in connection therewith. LGA will reimburse Cequent’s reasonable costs
associated with any such assistance, (including any legal costs), provided that
such assistance was specifically requested by LGA.  Should LGA
determine that it will not bring suit against the allegedly infringing party
within 60 days after receipt of notice of the alleged infringement, Cequent
reserves the right to bring suit on its behalf.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

     

    

     

    

    6.           Governmental Approvals /
Compliance    LGA will take all actions necessary to
obtain approvals from the proper governmental authorities or agencies for all
obligations and undertakings of LGA under this Agreement, if required, and must
keep Cequent apprised of the status and approvals received.  The
parties will comply with any and all applicable laws, regulations and standards
in force in the country of manufacture and sale, including those may relate to
quotations, pricing, manufacture, labeling, transportation, importation,
exportation, licensing, approval, performance and/or certification of the
Licensed Product, and those relating to environmental matters, wages, hours and
conditions of employment, discrimination, occupational health/safety and such
other laws, regulations and standards as may be applicable.

     

    7.           Ownership  As
between the parties, LGA will retain ownership of the Licensed Technology, and
any improvements, modifications or enhancements made thereto by
LGA.      Any improvements, modifications or
enhancements made to the Licensed Products or Licensed Technology by Cequent
shall be owned by Cequent.  LGA shall have the right to utilize the
improvements, modifications or enhancements made by Cequent in the Licensed
Products.

     

    8.           Confidential
Information  Either party may disclose confidential and/or
proprietary information from time to time to the other party in order to further
their business relationship.  Each party agrees to maintain such
disclosed information as confidential and not to use such information except to
the benefit of the disclosing party and in furtherance of this
Agreement.  The parties agree that the terms and conditions of the
Nondisclosure Agreement executed by the parties will apply to this Agreement in
their entirety, nonwithstanding any expiration of the Nondisclosure
Agreement.

     

    9.           Notices  Any notice
required to be given pursuant to this Agreement must be in writing and mailed by
certified or registered mail, return receipt requested or delivered by a
national overnight air courier service, to the party’s address provided
above.  Notices will be consi­dered to have been given three (3)
business days after deposit in the mail or one (1) day after delivery to an
overnight air courier service at the addresses provided above or to such other
address as may be furnished by the recipient in writing to the other parties
hereto.

     

    10.           Limitation of Liability IN NO
EVENT WILL LGA OR CEQUENT BE LIABLE FOR LOST PROFITS, OR ANY SPECIAL, INDIRECT,
INCIDENTAL OR CONSEQUENTIAL DAMAGES, HOWEVER CAUSED AND ON ANY THEORY OF
LIABILITY, ARISING IN ANY WAY IN CONNECTION WITH THIS AGREEMENT. THIS LIMITATION
WILL APPLY EVEN IF LGA AND CEQUENT HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES AND NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED
REMEDY.

     

    11.           Governing Law  This
Agreement shall be governed by and interpreted and enforced in accordance with
the laws of the state of Colorado without regard to its conflicts of laws
principles.  Any action or proceeding brought by either party against
the other party arising out of or related to this Agreement shall be brought
exclusively in a state or federal court of competent jurisdiction located in the
state of Colorado.

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

     

    12.           Misc.  No waiver by
either party of any default will be deemed as a waiver of any prior or
subsequent default of the same or other provisions of this
Agreement.  If a court of competent jurisdiction hereof holds any
provision invalid or unenforceable, such invalidity shall not affect the
validity or operation of any other provision and such invalid provision will be
deemed to be severed from the Agreement.  Cequent may not assign the
License granted hereunder except as specified in this Agreement without prior
written consent of LGA which will not be unreasonably
withheld.    This Agreement will be binding upon and shall
inure to the benefit of the parties hereto, their heirs, administrators,
successors and assigns.

     

    13.           Entire
Agreement.  This Agreement represents the entire understanding
of the parties with respect to its subject matter and supersedes all previous
representations, understandings or agreements, oral or written including any
prior license agreements between the parties.  Any amendment of this
Agreement must be in writing.  For purposes of the validity and
enforcement of this Agreement, any party’s facsimile signature to the Agreement
or signatures sent electronically via PDF format shall be considered original
signatures.

     

    The parties have caused this
Agreement to be executed as of the Effective Date.

     

    
      	
               “LGA”

            	
              “Cequent”

            
	
              By:    /s/ Marty L.
      Williams                                                            

            	
              By:   /s/ Paul C.
      Caruso                                                             

            
	
              Print
      Name: Marty L.
    Williams

            	
              Print
      Name: Paul C.
  Caruso

            
	
              Title:  President &
    CEO

            	
              Title: VP New Business
  Development

            
	 
      	 
      

    

     

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

     

    EXHIBIT
A

     

    Name
of Product / Patent No., Patent Pending

     

    
      	
              1.  

            	
              Pixie:  11/697294

            

    

     

    
      	
              2.  

            	
              Silent
      Hitch Pin:  Patent No.
      6,409,203---6,609,725---6,945,550---10/604805
  (CamLok)

            

    

     

    
      	
              3.  

            	
              Gear
      Cage:  11/767166

            

    

     

    
      	
              4.  

            	
              Gear
      Deck:  11/160087---6,042,175---6,213,539—6,398,290---6,910,609

            

    

     

    
      	
              5.  

            	
              Gear
      Space:  6,042,175---6,213,539—6,398,290---6,910,609

            

    

     

    
      	
              6.  

            	
              Twin
      Tube:  09/788299

            

    

     

    
      	
              7.  

            	
              Juice
      Box:  11/160087

            

    

     

          8.  Gear
Bed:  10/605776 (C-channel no-drill drop-in cargo management system
for pickups.  2003 GMC Product of the Year award winner.)

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

     

    EXHIBIT
B

     

    SPECIAL
CUSTOMERS

     

    5%
Royalty

     

    Target

     

    WalMart

     

    KMart

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]