Document:

Unassociated Document

    Execution
Copy

    

    ASSET
PURCHASE AGREEMENT

     

    dated
as of

     

    July
13, 2007

     

    by
and between

     

    NuGen
Mobility, a Delaware corporation;

     

    and

     

    New
Generation Motors Corporation, a Delaware corporation

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    ASSET
PURCHASE AGREEMENT

    

    THIS
ASSET PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of the
13th
day of July, 2007, by and among NuGen Mobility, a Delaware corporation
(“Purchaser”), and New Generation Motors Corporation, a Delaware corporation
with its principal executive offices located at 44645 Guilford Drive, Suite 201,
Ashburn Virginia 20147 (“Seller”).

    

    WITNESSETH

    

    WHEREAS,
Seller is engaged in the design, manufacture, marketing, sale and licensing of
axial flux and other electric motors, including all software, controls, source
code and intellectual property relating to axial flux and other related motors
and drive-systems for all applications of the technology in all fields worldwide
(collectively, the “Business”);

    

    WHEREAS,
Seller desires to sell, and Purchaser desires to purchase, substantially all of
the assets of Seller used in the Business, on the terms set forth in this
Agreement.

    

    NOW,
THEREFORE, in consideration of the representations, warranties, covenants,
agreements and indemnities contained in this Agreement, and intending to be
legally bound, the parties agree as follows:

    

    ARTICLE
1.

    DEFINITIONS

    

    1.1         Certain Definitions. As used
in this Agreement, the following terms shall have the respective meanings
ascribed to them in this Section 1.1:

    
 

    (a)           “Action”
means all actions, claims, demands, suits, litigations, proceedings,
investigations, arbitrations or mediations.

    

    (b)           “Adverse
Consequences” means all actions, suits, proceedings, hearings, investigations,
charges, complaints, claims, demands, injunctions, judgments, orders, decrees,
rulings, damages (but specifically excluding consequential, special, enhanced,
punitive or incidental damages for claims brought by Purchaser or Seller or
damages for diminution in value and specifically including such of the foregoing
that may arise in connection with third party claims), penalties, fines, amounts
paid in settlement, Liabilities, obligations, Taxes, Liens, losses, expenses and
fees, including costs and reasonable attorneys’ fees and expenses.

    

    (c)           “Affiliate”
of any Person means any Person directly or indirectly controlling, controlled by
or under common control with such Person, or related by blood, marriage, or
adoption to such Person; provided, however, that with respect to Seller,
Affiliate shall not include Seller’s stockholders acting
individually.

    

    (d)           “Agreement”
means this Asset Purchase Agreement, as specified in the initial paragraph.

    

    (e)           “Assignment
and Assumption Agreement” means the assignment and assumption agreement between
Seller and the Purchaser whereby Seller will assign, and the Purchaser will
assume, the Assumed Liabilities in the form attached hereto as Exhibit 1.1(e).

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    (f) 
          “Assignment of
Patents” means the intellectual property assignment in the form attached hereto
as Exhibit
1.1(f).

    

    (g)           “Assumed
Liabilities” has the meaning specified in Section 2.3.

    

    (h)           “Authority”
means any court or governmental or regulatory agency or authority or
administrative authority, tribunal or commission or any judicial or arbitral
body or other governmental entity (whether foreign or domestic) or any political
subdivision thereof.

    

    (i)   
        “Bill of Sale” means the bill of
sale assigning and conveying all right and title to the Purchased Assets from
Seller to the Purchaser in the form attached hereto as Exhibit 1.1(i).

    

    (j)    
       “Business” has the meaning specified
in the recitals of this Agreement.

    

    (k)           “Claim”
has the meaning specified in Section 6.2(a).

    

    (1)           “Closing
Balance Sheet” shall mean the unaudited balance sheet of Seller for the 9 month
period ended September 30, 2006 delivered to the Purchaser as part of the
Financial Statements.

     

    (m)          “Closing
Date” has the meaning specified in Section 2.9.

    

    (n)           “Closing”
has the meaning specified in Section 2.9.

    

    (o)           “Code”
means the Internal Revenue Code of 1986, as amended.

    

    (p)           “Confidential
Information” has the meaning specified in Section 7.1.

    

    (q)           “Contracts”
has the meaning specified in Section 2.1(f).

    

    (r)     
      “Current Assets” shall mean the current
assets of the Business as of the Closing Date (excluding Excluded Assets)
determined in accordance with GAAP consistent with Seller’s past practice (but
to the extent such past practice is not consistent with GAAP, GAAP shall
apply).

    

    (s)           “Employee”
or “Employees” means any active, full-time individual employed by Seller and set
forth on Schedule
1.1(s).

    

    (t)        
   “Employment Agreements” means the intellectual property and
confidentiality agreements between Seller and, respectively, Jeffrey Yambor,
Anthony D’Andrea, Cory Davis and Anubhav Sethi.

    

    (u)           “Equipment
Leases” has the meaning specified in Section 2.1(d).

    

    (v)           “Equipment”
has the meaning specified in Section 2.1(a).

    

    (w)           “Excluded
Assets” has the meaning specified in Section 2.2.

    

    (x)           “Financial
Statements” means copies of the unaudited balance sheets and statements of
income and cash flow of Seller as of and for the 12 month and 9 month periods
ended December 31, 2005 and September 30, 2006, together with all supporting
schedules thereto.

    

    (y)           “GAAP”
means generally accepted accounting principles for financial reporting in the
United States as in effect from time to time.

    
      
         

      

      
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    (z)           “Gross
Revenues” means the aggregate amount of (i) all fees and other revenue that
Purchaser actually receives from any source following the Closing Date, (ii) the
then-current fair market value of (x) the Purchased Assets, or (y) the Business
(as a going concern) or portion thereof sold or otherwise transferred to an
Affiliate of Purchaser and/or Eric Takamura, and (iii) the proceeds from the
sale or other disposition by Purchaser to any other third party of all or any
portion of (x) the Purchased Assets and/or (y) the Business as a going concern
following the Closing Date.

    

    (aa)         “Indemnified
Party” has the meaning specified in Section 6.2(a).

    

    (bb)        “Indemnifying
Party” has the meaning specified in Section 6.2(a).

    

    (cc)         “Indemnity
Notice Period” has the meaning specified in Section 6.2(b).

    

    (dd)        “Indemnity
Notice” has the meaning specified in Section 6.2(a).

    

    (ee)         “Indemnity
Response” has the meaning specified in Section 6.2(c).

    

    (ff)           “Intellectual
Property” means: (i) all patents, patent applications and patent disclosures,
together with all reissuances, continuations, continuations-in-part, revisions,
extensions and reexaminations thereof; (ii) all trademarks, service marks, trade
dress, logos, slogans, trade names, corporate names and internet domain names
and URLs, together with all abbreviations, translations, adaptations,
derivations and combinations thereof, and all applications, registrations and
renewals in connection therewith; (iii) all copyrights and all applications,
registrations and renewals in connection therewith; (iv) all trade secrets and
confidential business information; (v) all computer software; (vi) know-how,
show-how, processes, formula, specifications and designs, databases,
documentation, and methodologies, (vii) other proprietary information owned,
controlled, created, under development or used by the Business or assigned to
Seller, whether or not registered, including rights or obligations under any
license agreement or other agreement with any other Person, (viii) web sites and
web pages and related items (and all intellectual property and proprietary
rights incorporated therein), IP addresses and email addresses, (ix) all other
intellectual property or proprietary rights, (x) all copies and tangible
embodiments of any or all of the above (in whatever form or medium), and (xi)
all contractual rights to any of the foregoing in (i) through (x).

    

    (gg)         “Inventory”
has the meaning specified in Section 2.1(b).

    

    (hh)         “Law”
means any federal, state, local or foreign statute, constitution, code,
ordinance or other law, whether foreign or domestic (including any rule,
regulation, plan, injunction, judgment, order, writ, decree, ruling, reported
decisions or charge).

    

    (ii)           “Leased
Real Property” has the meaning specified in Section 2.1(e).

    

    (jj)           “Liability”
means any liability, obligation or commitment (whether known or unknown, whether
asserted or unasserted, whether absolute or contingent, whether accrued or
unaccrued, whether liquidated or unliquidated or whether due or to become due,
disputed or undisputed, secured or unsecured, joint or several, executory,
determined, determinable or otherwise).

    

    (kk)         “Lien”
means any lien, charge, claim, security interest, conditional sale agreement,
mortgage, indenture, deed of trust, security agreement, pledge, hypothecation,
option or other encumbrance or defect of title of any kind or
nature.

    

    (ll)           “Note”
has the meaning specified in Section 2.5.

    
      
         

      

      
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    (mm)       “Permits”
means all franchises, approvals, permits, licenses, orders, registrations,
certificates, variances or similar rights necessary to lawfully conduct the
Business as presently conducted and own and operate the Purchased
Assets.

    

    (nn)        “Person”
means an individual, a corporation, a partnership, a limited liability company,
an association, an Authority, a trust or any other entity or
organization.

    

    (oo)        “Premium”
has the meaning specified in Section 2.6.

     

    (pp)       
“Purchase
Price” has the meaning specified in Section 2.5.

    

    (qq)        “Purchased
Assets” has the meaning specified in Section 2.1.

    

    (rr)          “Purchaser”
has the meaning specified in the initial paragraph of this
Agreement.

    

    (ss)         “Purchaser
Indemnified Party” or “Purchaser Indemnified Parties” has the meaning specified
in Section 6.1(a).

    

    (tt)          “Retained
Liabilities” has the meaning specified in Section 2.4.

    

    (uu)        “Seller”
has the meaning specified in the initial paragraph of this
Agreement.

    

    (vv)        “Seller
Indemnified Party” or “Seller Indemnified Parties” has the meaning specified in
Section 6.1(b).

    

    (ww)       “Tax”
or “Taxes” means all income, gross receipts, license, employment, payroll,
withholding, severance, premium, disability, excise, value-added, accumulated
earnings, net worth, alternate or add on minimum, estimated, sales, use,
transfer, registration, real property, stamp, environmental (including taxes
under Code §59A), personal property, use and occupancy, business and occupation,
maritime, mercantile, tariff, duty, capital stock, franchise, gift or estate and
all other taxes or fees of any kind, character, nature or description, whether
federal, state, local or foreign, and includes interest, penalty or addition
thereto and any similar charges in the nature of a tax including unemployment
and employment insurance payments and workers compensation premiums, together
with any installments with respect thereto and any estimated payments or
estimated taxes and whether disputed or not.

    

    (xx)         “Tax
Returns” shall mean any return, report, information return or other document
(including any related or supporting information) filed or required to be filed
with any federal, state, provincial, municipal, local or foreign governmental
entity or other Authority in connection with the determination, assessment or
collection of any Tax or the administration of any Laws, regulations or
administrative requirements relating to any Tax.

    

    (yy)        “Third
Party Claim” has the meaning specified in Section 6.2(b).

    

    (zz)         “Transaction
Documents” means this Agreement, the Note, the Bill of Sale, the Assignment and
Assumption Agreement, the Employment Agreements, the Intellectual Property
Assignment and all other documents, certificates and instruments executed and
delivered at any Closing.

    

    (aaa)       “Transfer
Taxes” has the meaning specified in Section 5.3(c).

    

    1.2         References to Dollars.
References to dollars or “$” in this Agreement shall mean United States
dollars.

    
      
         

      

      
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    ARTICLE 2.

    THE
TRANSACTION

    

    2.1   
     Sale and Purchase of Assets.
At the Closing, Seller shall sell, transfer and deliver to Purchaser and
Purchaser shall purchase from Seller, all of the assets relating to or used in
the Business (other than the Excluded Assets), including, without limitation,
the following (collectively, the “Purchased Assets”):

    

    (a)           All
machinery, equipment, fixtures, furniture, supplies, tools, dies, jigs, molds,
vehicles and other tangible personal property of Seller, wherever located,
including, without limitation, the property set forth on Schedule 2.1 (a) (collectively, the
“Equipment”);

    

    (b)           All
inventory of Seller of any kind, character, nature or description, whatever its
description and wherever located (including items in transit), including all
finished goods, work-in-process, supplies, raw materials, manufactured and
purchased parts, scrap, containers, packaging materials and spares, including
the inventory set forth on Schedule
2.1(b) (collectively, the “Inventory”);

    

    (c)           All
Intellectual Property owned by Seller and/or used in the Business, including
those set forth on Schedule
2.1(c), and all licenses, sublicenses, agreements, or permissions
relating to such Intellectual Property;

    

    (d)           All
rights to and under leases of Seller relating to Equipment, including all such
leases, set forth on Schedule
2.1(d) (collectively, the “Equipment Leases”);

    

    (e)           All
rights to and under leases and subleases of Seller relating to real property, as
set forth on Schedule 2.1(e)
(collectively, the “Leased Real Property”);

    

    (f)           All
rights to and under contracts, agreements, indentures, mortgages, instruments,
security interests, guaranties or other similar arrangements, whether written or
oral, to which Seller is a party or which are used in the Business, including,
but limited to, (i) that certain Master License Agreement for the EMS401-043
Drive System between Company and Bajaj Auto Ltd of India, (ii) all
confidentiality, employment and noncompete agreements between the Company and
any third party, including without limitation the Employment Agreements, and
(iii) the other contracts set forth on Schedule 2.1(f) (collectively, the
“Contracts”);

    

    (g)          All
trade accounts receivable, notes receivable and other receivables of
Seller;

    

    (h)          All
claims, deposits pursuant to agreements or other arrangements, prepayments,
refunds, causes of action, choses in action, rights of recovery, rights of
set-off, counterclaims and rights of recoupment, including for past, present or
future damages for the breach, infringement or misappropriation of any Purchased
Assets;

    

    (i)           All
franchises, approvals, Permits, licenses, orders, registrations, certificates,
variances and similar rights of or relating to the Business, and any
applications for the same;

    

    (j)           All
Confidential Information and all copies thereof and all research and development
then in process, books, records and other documents of Seller or which relate to
the Business, including all books of account, general, financial, accounting
records, business records, files, invoices, customers’ and suppliers’ lists,
other distribution lists, billing records, sales and promotional literature,
blueprints, specifications, material safety data sheets, designs, drawings,
operating data and all other data used exclusively in the conduct of the
Business, manuals and customer and supplier correspondence and copies of all of
the foregoing;

    
      
         

      

      
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    (k)           All
telephone and facsimile numbers and post office boxes, used in the
Business;

    

    (l)          
 All credits, prepaid expenses and security deposits relating to the
Business;

    

    (m)          All
other assets and properties included in Current Assets or used in the Business;
and

    

    (n)          All
other intangible personal property of Seller related to the Business and
all

    goodwill
of the Business.

    

    2.2         Excluded Assets. The following assets of Seller shall not constitute
Purchased Assets and shall be retained by Seller (collectively, the “Excluded
Assets”):

    

    (a)           Items
or accounts of cash, cash deposits with banks or financial institutions, the
bank accounts, certificates of deposit, savings and other similar cash or cash
equivalents of every kind, character, nature and description;

    

    (b)          Accruals,
items or accounts relating to income tax payable and deferred tax, included in
non-current liabilities;

    

    (c)           Books
and records unrelated to the Business that Seller is required to retain pursuant
to any applicable Law, provided that Seller shall provide Purchaser with access
to or copies of such books and records as provided in Section 5.2;

    

    (d)          All
defenses, rights of set-off and counterclaims arising out of or relating to any
of the Retained Liabilities;

    

    (e)           The
assets set forth on Schedule 2.2(e).

    

    2.3         Assumption of Liabilities. At
the Closing, Purchaser shall specifically assume, pay, perform or otherwise
discharge as the same shall become due in accordance with their respective
terms, only the Liabilities of Seller (collectively, the “Assumed Liabilities”)
as set forth on Schedule 2.3.

    

    2.4         Retained Liabilities. Except
for the Assumed Liabilities, Purchaser shall not assume any Liabilities of
Seller, whether arising before, on or after the Closing Date, and all such
Liabilities (collectively, the “Retained Liabilities”) shall remain the
exclusive Liabilities of Seller. Seller shall pay, perform or otherwise
discharge, as the same shall become due in accordance with their respective
terms, all of the Retained Liabilities.

    

    2.5         Purchase Price. The total
purchase price (“Purchase Price”) to be paid by the Purchaser to Seller in full
consideration for the sale, assignment, transfer, conveyance and delivery of the
Purchased Assets to the Purchaser shall be an amount equal to (a) One Million
Dollars ($1,000,000) plus (b) the Assumed Liabilities; subject to adjustment
pursuant to Section 2.5(b) below. The Purchaser’s obligation to pay the Purchase
Price shall be evidenced by the Purchaser’s promissory note in the aggregate
principal amount of One Million Dollars ($1,000,000) less credits (the
“Credits”) against the Purchase Price in an amount equal to the sum of (i) the
aggregate amount of funds advanced by Purchaser to Seller between August 17,
2006 and the date hereof and as set forth on Schedule 2.5, and (ii) the
aggregate amounts of funds received by Seller as deposits for services to be
performed under the Assigned Contracts and set forth on Schedule 2.5; and in the
form of Exhibit 2.5 hereto (the “Note”), which Note shall bear simple interest
at the rate of six percent (6%) per annum and which will be paid solely from the
Purchaser’s Gross Revenues actually received pursuant to the terms of the Note.
The Credits shall be applied against the payment of principal and interest on
the Note in accordance with the terms of the Note.

    
      
         

      

      
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    2.6         Premium.

    

    (a)           In
addition to the Purchase Price, if prior to the seventh (7th) anniversary of the
Closing Date the Purchaser shall have received sufficient Gross Revenues to
require that Purchaser pay the Note in full, the Purchaser shall make additional
payments (the “Premium”) each year from the date Purchaser has actually
collected such Gross Revenues until the seventh anniversary of the Closing Date
as follows: the Purchaser shall make quarterly payments, each in an amount equal
to the product of (A) two and one-half percent (2.5%) multiplied by (B) the
amount equal to the Gross Revenues accrued in such calendar quarter until the
seventh anniversary of the Closing Date.

    

    (b)           The
Purchaser shall make the payments of the Premium pursuant to this Section 2.6 to
Seller by wire transfer in immediately available funds within forty-five (45)
days following the end of each calendar quarter in which the applicable Gross
Revenues are actually collected in accordance with instructions provided by
Seller to the Purchaser.

    

    2.7         Payment in Full. Purchaser, at
any time after the Closing, shall be entitled to terminate its obligation to
make further payments under Sections 2.5, 2.6 and the Note by written notice,
which notice is accompanied by payment of three million dollars ($3,000,000.00)
plus all Note payments and premiums accruing prior to the date of such notice
pursuant to the formulae set forth in the Note and/or Section 2.6 and remaining
unpaid as of the date of such notice.

    

    2.8         Assignment of Contracts. Set
forth on Schedule
2.8(a) are those Contracts that are not assignable without the consent of
another Person. To the extent that the assignment of any Contract to be assigned
hereunder requires the consent of a third party, this Agreement shall not
constitute an assignment of the same if an attempted assignment would constitute
a breach thereof.  Seller agrees that it will cooperate with Purchaser to
obtain a written consent of any such other party or parties to the assignment of
all such Contracts and, if such consent is not obtained, shall be deemed to have
delegated the performance of such Contract to Purchaser and assigned to
Purchaser the right to receive all revenues and other benefits derived
therefrom, in each case as if such Contract had been assigned to Purchaser
hereunder. Set forth on Schedule 2.8(b) are
those Contracts for which Seller has not obtained the required consent and for
which Purchaser shall assume Seller’s obligations thereunder. Purchaser shall be
solely responsible for the performance and fulfillment of Seller’s obligations
with respect to any Contract set forth on Schedule 2.8(b) as
though such Contract has been assigned to Purchaser.

    

    2.9         Closing and Closing Date.  The closing of the
sale and purchase of the Purchased Assets (the “Closing”) shall take place as
soon as reasonably practicable but in no event later than the third business day
following the date on which the shareholders of Seller have approved the
Agreement and the transactions contemplated hereby (the “Closing Date”). All
transactions which are to take place at the Closing shall be considered to have
taken place simultaneously, and no delivery or payment shall be considered to
have been made until all the transactions have been completed. Title to,
ownership of, control over and risk of loss of the Purchased Assets and the
Assumed Liabilities shall pass to Purchaser effective as of 12:01 a.m. on the
Closing Date unless expressly provided otherwise herein.

    

    2.10       Deliveries to Purchaser at Closing.
At the Closing, Seller shall execute and deliver, or cause to be executed
and delivered, the following:

    

    (a)           one
or more Secretary’s Certificates in form and substance as set forth on Exhibit 2.10(a), each dated as of the Closing Date.

    

    (b)           the
Bill of Sale.

    

    (c)           the
Assignment and Assumption Agreement.

    
      
         

      

      
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    (d)           the
Assignment of Patents.

    

    (e)           evidence,
reasonably satisfactory to the Purchaser, of all consents required under
the
Contracts.

    

    (f)           evidence,
reasonably satisfactory to the Purchaser, of all material licenses, permits,
authorizations, consents and approvals of and filings with any Authority, if
any, required to be obtained or made in connection with the consummation of the
transactions contemplated by this Agreement.

    

    (g)          such
consents as may be required for the assignment to Purchaser of the contracts and
agreements described in Schedule 2.8(a) hereto.

    

    (h)          any
documents, instruments, agreements and certificates as may reasonably be needed
to carry out the transactions contemplated by this Agreement and the other
Transaction Documents, including such documents, instruments and agreement as
the Purchaser may reasonably request in connection therewith.

    

    2.11       Deliveries to Seller at Closing.
At the Closing, Purchaser shall execute and deliver, or cause to be
executed or delivered, as applicable, the following:

    

    (a)           The
Note.

    

    (b)           The
Assignment and Assumption Agreement.

    

    (c)           A
Secretary’s Certificate in form and substance as set forth on Exhibit 2.11(c), dated as of the Closing Date.

    

    (d)           Evidence,
reasonably satisfactory to Seller, of all material licenses, permits,
authorizations, consents and approvals of and filings with any Authority, if
any, required to be obtained or made in connection with the consummation of the
transactions contemplated by this Agreement.

    

    (e)           A
certificate from Eric Takamura in form and substance as set forth on Exhibit 2.11(e), dated as of the Closing Date.

    

    2.12      Conditions
to Closing.

    

    The
Closing and the obligations of the parties to consummate the transactions
contemplated by this Agreement shall be subject to: (a) the approval of this
Agreement and the transactions contemplated hereby by the shareholders of
Seller; and (b) full satisfaction or waiver of any and all obligations of the
parties required under this Agreement prior to Closing, including, without
limitation full satisfaction of the deliveries required by the parties pursuant
to Sections 2.10 and 2.11 and any consents required pursuant to Section 4.2 of
this Agreement.

    

    ARTICLE
3.

    REPRESENTATIONS
AND WARRANTIES

    OF
SELLER

    

    Seller
represents and warrants as follows:

    

    3.1         Organization and Good Standing.
Seller is duly organized, validly existing and in good standing under the
laws of the State of Delaware.

    
      
         

      

      
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    3.2         Authority and Enforceability.
Seller has full power and authority to execute, deliver and perform this
Agreement and the other Transaction Documents to which it is a party and the
execution, delivery and performance of this Agreement and the other Transaction
Documents to which it is a party by Seller has been duly authorized by all
necessary corporate action on the part of Seller. This Agreement and the other
Transaction Documents to which it is a party have been duly executed and
delivered by Seller and constitutes the valid and legally binding obligations of
Seller, enforceable in accordance with their respective terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors’ rights generally and to general principles of equity,
regardless of whether enforcement is sought in a proceeding at law or in
equity.

    

    3.3         Brokers. Neither Seller nor
its Affiliates have any Liability to pay any fees, expenses, commissions,
compensation or costs to any broker, finder or agent with respect to the
transactions contemplated by this Agreement for which Purchaser or its
Affiliates could be liable or obligated.

    

    ARTICLE
4.

    REPRESENTATIONS
AND WARRANTIES

    OF
PURCHASER

    

    Purchaser
represents and warrants as follows:

    

    4.1         Organization and Good Standing.
Purchaser is duly organized, validly existing and in good standing under
the laws of the State of Delaware.

    

    4.2         Authority and Enforceability.
Purchaser has full power and authority to execute, deliver and perform
this Agreement and the other Transaction Documents to which it is a party and
the execution, delivery and performance of this Agreement and the other
Transaction Documents by Purchaser have been duly authorized by all necessary
action on the part of Purchaser. This Agreement and the other Transaction
Documents to which it is a party have been duly executed and delivered by
Purchaser and constitutes the valid and legally binding obligations of
Purchaser, enforceable in accordance with their respective terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors’ rights generally and to general principles of equity,
regardless of whether enforcement is sought in a proceeding at law or in equity.
Except as set forth on Schedule 4.2, Purchaser is not required to give any notice
to, make any filing with or obtain any authorization, consent or approval of any
Authority or Person in order for the parties to consummate the transactions
contemplated by this Agreement.

    

    4.3         Noncontravention. To the
knowledge of Purchaser, the execution or delivery of this Agreement, the other
Transaction Documents, or the consummation of the transactions contemplated by
hereby and thereby will not (a) violate any Law to which Purchaser is subject;
(b) violate any provision of the organizational or governance documents, as
amended, of Purchaser or any resolution adopted by Purchaser’s governing body or
applicable ownership group; or (c) conflict with, result in a breach of,
constitute a default under, result in the acceleration of, give any Person the
right to accelerate, terminate, modify or cancel, or require any notice under,
any agreement, contract, license, permit, authorization, instrument or other
arrangement to which Purchaser is a party or by which it is bound or to which
any of its assets or properties are subject or result in the imposition of a
Lien upon any of its assets.

    

    4.4         Financing. Purchaser’s
obligations under this Agreement are not in any way contingent upon or otherwise
subject to (a) Purchaser’s consummation of any financial arrangements or
Purchaser’s obtaining of any financing, or (b) the availability, grant,
provision or extension of any credit, loan or financing to
Purchaser.

    
      
         

      

      
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    4.5         Brokers. Purchaser or its
Affiliates have no Liability to pay any fees, expenses, commissions,
compensation or costs to any broker, finder or agent with respect to the
transactions contemplated by this Agreement for which Seller or its Affiliates
could be obligated.

    

    4.6         No
Additional Representations or Warranties; Disclaimer Regarding Estimates and
Projections; Opportunity to Inspect.

    

    (a)           Purchaser
acknowledges that none of Seller or any of its Affiliates or any other Person
(i) has made any representation or warranty, express or implied, including any
implied representation or warranty as to the condition, merchantability,
suitability or fitness for a particular purpose of any of the Purchased Assets,
or (ii) has made any representation or warranty, express or implied, as to the
accuracy or completeness of any information regarding Seller or any of its
Affiliates, in each case except as expressly set forth in this Agreement or as
and to the extent required by this Agreement to be disclosed on any of the
Schedules. Purchaser further agrees that none of Seller or any of its Affiliates
or any other Person and their respective stockholders, shareholders, members,
directors, officers, employees, agents or advisors, will have or be subject to
any Liability, except as specifically set forth in this Agreement, to Purchaser
or any other Person resulting from the distribution to Purchaser, for
Purchaser’s use, of any information, including any offering materials or
documentation distributed or any information, document or material made
available to Purchaser in expectation of the transactions contemplated by this
Agreement other than as set forth in this Agreement.

    

    (b)           Purchaser
has received estimates, projections and other forecasts and plans, and Purchaser
is familiar with such uncertainties associated with the same. Purchaser takes
full responsibility for making its own evaluation of the adequacy and accuracy
of all estimates, projections and other forecasts and plans so furnished to it
(including the reasonableness of the assumptions underlying such estimates,
projections and forecasts). Accordingly, Purchaser acknowledges and agrees that
no representation or warranty with respect to such estimates, projections and
other forecasts and plans is being made (including the reasonableness of the
assumptions underlying such estimates, projections and forecasts) other than as
set forth in this Agreement.

    

    ARTICLE
5.

    COVENANTS

    

    The
parties agree as follows with respect to the period as of and following the
Closing:

    

    5.1         General. In case at any time
after the Closing any further action is necessary or desirable to carry out the
purposes of this Agreement, each of the parties shall use commercially
reasonable efforts to take such further action (including the execution and
delivery of such further instruments and documents) as any other party
reasonably may request, all at the sole cost and expense of the requesting party
(unless the requesting party is entitled to indemnification therefor under
Article 6), including, as necessary for Purchaser or Seller, as the case may be,
to satisfy its obligations under this Agreement, obtain the benefits
contemplated by this Agreement, or for the purpose of assigning, transferring,
granting, conveying and confirming to Purchaser, or reducing to possession, any
or all property and assets to be conveyed and transferred by this Agreement. If
any party to this Agreement shall, following the Closing, have in its possession
any property, asset or right which under this Agreement should have been
delivered to another party, such party shall promptly deliver such property,
asset or right to the other party. Seller agrees, that in the event it receives
any proceeds derived from or assets or properties of the Business or otherwise
earned by the Business after the Closing Date, it shall promptly transfer such
proceeds to Purchaser.

    
      
         

      

      
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    5.2         Post-Closing Cooperation, Access to
Information and Retention of Records. From and after the Closing through
the later of (i) the anniversary of the date the Note is paid in full or (ii)
the ninth (9th)
anniversary of the Closing Date, the Purchaser shall:

    

    (a)           deliver
to Seller as soon as available after the end of each fiscal year during such
time period copies of the audited balance sheet of the Purchaser together with
any related statement of income for such fiscal year;

    

    (b)           preserve
all books and records of the Purchaser and the Purchaser shall preserve all
books and records relating to the Purchased Assets, Seller and the Business
received by the Purchaser, and shall not destroy or dispose of any such books
and records for a period of the longest of (A) 9 years after the Closing Date,
(B) one year after such time the Note is paid in full, or (C) such longer time
as may be required by applicable Law, and at any time thereafter prior to
destroying or disposing of any such records, the Purchaser shall notify Seller
and afford it the opportunity to take or to make copies of any such books and
records;

    

    (c)           afford
to Seller, and its counsel, accountants and other authorized agents and
representatives, at Seller’s expense, during normal business hours, reasonable
access to the Employees, books, records and other data relating to the Purchased
Assets, Seller, and the Business in its possession with respect to periods prior
to the Closing as well as relating to the Purchaser with respect to periods
after the Closing, and the right to make copies and extracts therefrom and to
discuss the affairs, finances and accounts of Purchaser with its officers,
Employees and accountants, to the extent that such access may be reasonably
required (A) to facilitate the investigation, litigation or final disposition of
any claims which may have been or may be made against Seller or any of its
Affiliates, (B) for the preparation of Tax Returns and audits, (C) to confirm
compliance with the payment terms of this Agreement and the Note or (D) for any
other reasonable business purpose; and

    

    (d)           keep
adequate records and books of accounts with respect to periods after the
Closing, in which entries will be made in accordance with US GAAP, consistently
applied, reflecting all financial transactions of the Purchaser.

    

    5.3         Tax
Matters.

    

    (a)           Subject
to Section 5.3(c) below, Seller shall be responsible for the preparation and
filing of all Tax Returns attributable to ownership or use of the Purchased
Assets or the operation of the Business on and through the Closing Date. Seller
will be responsible for and make all payments of Taxes attributable to ownership
or use of the Purchased Assets or the ownership or operation of the Business on
and through the Closing Date.

    

    (b)           Purchaser
shall be responsible for the preparation and filing of all Tax Returns
attributable to the ownership or use of the Purchased Assets or its operation of
the Business after the Closing Date. Purchaser will make all payments of Taxes
shown to be due on such Tax Returns.

    

    (c)           All
transfer Taxes (“Transfer Taxes”) which may be imposed or assessed as a result
of sales, transfers, leases, rentals, licenses, assignments and assumption of
the Purchased Assets in connection with the consummation of this Agreement shall
be paid one-half by each of Purchaser and Seller.

    

    (d)           In
the case of any real or personal property taxes (or other similar Taxes) on the
Purchased Assets which require the filing of Tax Returns covering a taxable
period beginning before and ending on or before the Closing Date, Purchaser
shall prepare such Tax Returns and make all payments required with respect to
any such Tax Returns; provided, however, that, to the extent not reflected on
the Closing Balance Sheet, Seller shall promptly reimburse Purchaser upon
receipt of a copy of the filed Tax Return to the extent of any payment made by
Purchaser related to that portion of the taxable period ending on or before the
Closing Date, which amount shall be determined and prorated on a per diem
basis.

    
      
         

      

      
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    (e)   To the extent
relevant to the Business or the Purchased Assets, each party shall (i) provide
the other with such assistance as may reasonably be required in connection with
the preparation of any Tax Return and the conduct of any audit or other
examination by any taxing Authority or in connection with judicial or
administrative proceedings relating to any Liability for Taxes; and (ii) retain
and provide the other party with all records or other information that may be
relevant to the preparation of any Tax Returns, or the conduct of any audit or
examination, or other proceeding relating to Taxes.

    

    (f)    Seller, upon
request, shall use its reasonable efforts to provide or obtain from any taxing
Authority any certificate or other document necessary to mitigate, reduce or
eliminate any Taxes (including additions thereto or interest and penalties
thereon) that otherwise would be imposed with respect to the transactions
contemplated in this Agreement. Purchaser, upon request, shall use its
reasonable efforts to provide or obtain from any taxing Authority any
certificate or other document necessary to mitigate, reduce or eliminate any
Taxes (including additions thereto or interest and penalties thereon) that
otherwise would be imposed with respect to the transactions contemplated in this
Agreement.

    

    5.4         Insurance. On or after the
Closing Date, the Seller and its Affiliates may terminate all insurance policies
currently covering the Purchased Assets and the Business, and Purchaser shall
have the sole responsibility and obligation to obtain insurance coverage for the
Purchased Assets and the Business. Seller, or its Affiliates shall be entitled
to receive and retain (a) any insurance refunds or claim payments with respect
to Seller relating to periods prior to and including the Closing Date, and (b)
any refunds or returns received on and after the Closing Date of prepayments
which were made prior to the Closing Date under insurance policies currently
covering Seller, in each case, except to the extent set forth on the Closing
Balance Sheet. Seller, its Affiliates shall be responsible for any Adverse
Consequences that arise out of the termination of such insurance policies, or in
connection with the claims or Actions under such insurance policies for events
occurring prior to the Closing Date.

    

    5.5         Use of Proceeds. Seller shall
use all proceeds received from the Purchase Price and the Premium pursuant to
Sections 2.5 and 2.6, respectively, first to pay any and all Retained
Liabilities before any other use; provided, however, that at the time of
Seller's receipt of any such proceeds, Seller shall have the right to evaluate
the Retained Liabilities as to the validity thereof and Seller may take into
consideration all defenses Seller may have to the payment of such liabilities,
including without limitation, any applicable statutes of
limitations.

    

    5.6         Allocation. Following the
Closing, Seller and Purchaser shall agree upon an allocation of the total
consideration paid by Purchaser under this Agreement among the Purchased Assets
in accordance with this Section 5.6 and with the requirements of Section 1060 of
the Code. To the extent that disclosures of this allocation are required to be
made by Purchaser and Seller under Section 1060 of the Code, or any regulations
thereunder, Purchaser and Seller will disclose such reports to the other at
least ten (10) days prior to making any such filing. The appropriate parties
shall timely file Form 8594 with their U.S. federal income Tax Returns in
accordance with such agreement. Purchaser and Seller shall cooperate in
providing all necessary information to accurately complete such form or making
any other filing. Within 90 days following the Closing Date, Purchaser will
prepare an initial allocation and present such allocation to Seller for Seller’
approval, which approval shall not be unreasonably withheld. If Seller approves
such allocation or does not object to such allocation within 30 days after
receipt thereof, Purchaser’s initial allocation will be final and binding. If
Seller objects to Purchaser’s initial allocation by delivering written notice to
Purchaser within 30 days after receipt thereof, Purchaser and Seller shall work
in good faith to agree on the allocation.

    
      
         

      

      
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    ARTICLE
6.

    INDEMNIFICATION

    

    6.1     General
Indemnification Obligations.

    

    (a)         
Subject to the terms and conditions set forth in this Agreement, Seller shall
indemnify and defend Purchaser and its employees, officers, directors,
shareholders, agents, representatives and Affiliates (individually a “Purchaser
Indemnified Party” and collectively, the “Purchaser Indemnified Parties”) and
hold Purchaser Indemnified Parties harmless from and against any and all Adverse
Consequences arising out of, resulting from, relating to, in the nature of or
caused by:

    

    (i)           
 Any misrepresentation or breach of any representation or warranty made by
Seller in this Agreement;

    

    (ii)         
  Breach of any covenant or agreement made by Seller in this
Agreement;

    

    (iii)           The
Excluded Assets; or

    

    (iv)        
  The Retained Liabilities.

    

    (b)         
Purchaser shall indemnify and defend Seller and its employees, officers,
directors, shareholders, agents, representatives and Affiliates (individually a
“Seller Indemnified Party” and collectively, the “Seller Indemnified Parties”)
and hold the Seller Indemnified Parties harmless from and against any and all
Adverse Consequences arising out of, resulting from, relating to, in the nature
of or caused by:

    

    (i)            
Any misrepresentation or breach of any representation, warranty, covenant or
agreement made by Purchaser in this Agreement;

    

    (ii)            The
Assumed Liabilities; or

    

    (iii)           Liabilities
arising on or after the Closing Date relating to Purchaser’s ownership or
operation of the Business or the Purchased Assets.

    

    6.2     General
Indemnification Procedures.

    

    (a)   In the event that
any party to this Agreement or any other Purchaser Indemnified Party or Seller
Indemnified Party reasonably believes that such party has a claim with respect
to Adverse Consequences for which indemnity may be sought by such party pursuant
to this Article 6 (each, a “Claim”), the party indemnified hereunder (the
“Indemnified Party”) shall notify Seller or Purchaser, as applicable (the
“Indemnifying Party”) by sending written notice of such Claim, to the
Indemnifying Party (each such notice, an “Indemnity Notice”). In the case of a
Claim involving a third party claim (defined below), an Indemnity Notice shall
be given of such Claim within 15 days after the discovery by an Indemnified
Party of such Claim against the Indemnifying Party; provided, however, that any
delay or failure to notify any Indemnifying Party of any Claim shall not relieve
it from any Liability except to the extent that the defense of such action is
prejudiced by such delay or failure to notify or promptly notify. Any Indemnity
Notice shall, to the extent ascertainable, (i) state (with reasonable
specificity) the basis on which indemnification is being asserted, (ii) set
forth the amount of Adverse Consequences for which indemnification is being
asserted, and (iii) if available, be accompanied by copies of all relevant
pleadings, demands and other documentation served on the Indemnified
Party.

    
      
         

      

      
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    (b)          In
the case of a third party Claim (including Claims relating to Taxes) (each, a
“Third Party Claim”), the Indemnified Party shall give the Indemnifying Party
the right (i) to control and conduct any proceedings or negotiations in
connection therewith and necessary or appropriate to defend the Indemnified
Party (provided such are pursued in a professional manner), (ii) to take all
other reasonable steps or proceedings to settle or defend any such Third Party
Claim, provided that the Indemnifying Party shall not settle any Third Party
Claim without the prior written consent of the Indemnified Party, which consent
shall not be unreasonably withheld or delayed, and (iii) to employ counsel
reasonably acceptable to the Indemnified Party, to contest any such Third Party
Claim in the name of the Indemnified Party or otherwise. The Indemnifying Party
shall, within 10 days of receipt of an Indemnity Notice of such Third Party
Claim (the “Indemnity Notice Period”), give written notice to the Indemnified
Party of its intention to assume the defense of such Third Party Claim. If the
Indemnifying Party does not deliver to the Indemnified Party within the
Indemnity Notice Period written notice that the Indemnifying Party shall assume
the defense of any such Third Party Claim, the Indemnified Party may defend
against any such Third Party Claim in such manner as it may deem appropriate, at
the expense of the Indemnifying Party, and shall have the sole power to direct
and control such defense, and the Indemnified Party shall have the authority to
resolve or settle such Claim. In the event that the Indemnifying Party does
assume the defense of such Third Party Claim as provided above, the Indemnified
Party shall have the right to fully participate in such defense (including with
counsel of its choice), at its sole expense, and the Indemnifying Party shall
reasonably cooperate with the Indemnified Party in connection with such
participation, unless there is, under applicable standards of conduct, a
conflict on any significant issues between the Indemnifying Party and the
Indemnified Party, in which case the reasonable fees and expenses of such
counsel shall be at the expense of the Indemnified Party.

    

    (c)           In
the event that the Claim does not involve a Third Party Claim, the Indemnifying
Party shall within 30 days after the date of receipt of an Indemnity Notice
respond in writing to the Indemnified Party (the “Indemnity Response”) and set
forth with reasonable specificity those items in the Indemnity Notice to which
the Indemnifying Party does not agree as well as the basis upon which such
disagreement is founded. Within 30 days following the receipt of the Indemnity
Response by the Indemnified Party, representatives of the Indemnifying Party and
Indemnified Party shall attempt to resolve through good faith negotiations the
applicable indemnification Claims.

    

    6.3     Provision
on Indemnification; Credits and Escrow; Exclusive Remedy.

    

    (a)           Any
qualification by materiality set forth in any representation or warranty shall
be eliminated and not considered for the purposes of determining whether there
has been a breach of such representation and warranty and the amount of any
Adverse Consequences arising thereunder.

    

    (b)           Except
in cases of actual fraud or willful misconduct committed by Seller, any and all
amounts owing to Purchaser under this Article 6, shall be recovered from amounts
Purchaser previously paid to Seller under this Agreement or any other
Transaction Document or as a credit against amounts subsequently payable by
Purchaser under this Agreement or any other Transaction Document. In the event
of a dispute between the parties concerning the amount of any credits to be
applied against amounts subsequently payable by Purchaser, Purchaser shall be
entitled to make such subsequent payments into escrow pending final
determination of the dispute by the parties, a court of competent jurisdiction
over such amounts in dispute, or pursuant to Section 7.7, as
applicable

    

    (c)           Each
party to this Agreement acknowledges and agrees that such party’s (and all
Indemnified Parties’) sole and exclusive remedy with respect to Adverse
Consequences and any and all other claims relating to the subject matter of this
Agreement and the transactions contemplated by this Agreement (except with
respect to the agreements entered into pursuant to this Agreement, which shall
be subject to the remedies provided for herein, or except to the extent caused
by actual fraud or willful misconduct committed by Seller or Purchaser, as
applicable) shall be in accordance with, and limited by, the indemnification
provisions set forth in Article 6.

    
      
         

      

      
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    ARTICLE
7.

    MISCELLANEOUS

    

    7.1         Confidentiality. The parties
and their respective representatives shall keep and maintain the terms of the
transactions contemplated by this Agreement and the other Transaction Documents
confidential. The parties and their respective representatives shall treat and
hold as confidential any and all information, know-how, business or research
strategies, materials, data and documents in all forms (whether written or
otherwise) relating to the Purchased Assets, Seller or the Business or any party
to this Agreement (collectively, the “Confidential Information”); provided,
however, the following items shall not constitute Confidential Information: (a)
an item that was already available to the general public at the time such item
was received; (b) an item that subsequently becomes known to the general public
through no fault or omission by any party to this Agreement; (c) an item that is
subsequently disclosed by a third party which has the bona fide right to make
such disclosure; or (d) an item that is required to be disclosed by applicable
Law, or by any Authority or for which disclosure to an Authority is appropriate
in the conduct of business. The parties and their respective representatives
shall refrain from using any such Confidential Information in any manner or for
any purpose not in connection with this Agreement or in any manner or for any
purpose detrimental to any party’s interest, and shall upon the failure to
consummate the transactions contemplated by this Agreement or the other
Transaction Documents, deliver promptly to the applicable party or destroy, at
the request and option of such party, all tangible embodiments (including
computer records) of such Confidential Information which are in its possession.
For purposes of this Section 7.1, only representatives of the parties who have a
reasonable need to know may receive or have access to Confidential Information,
and then only if all necessary and appropriate measures are taken to protect
such Confidential Information. Each party shall also take all necessary and
appropriate measures to assure that its representatives who receive or have
access to Confidential Information of the other party observe and comply with
the provisions of, and the applicable party’s obligations under, this Section
7.1. In any event, each party shall be responsible for any breach of this
provision by any of its representatives. In the event that any party to this
Agreement is requested or required (by written request for information for
documents in any legal proceeding, interrogatories, subpoena, civil
investigative demand or similar process) to disclose any Confidential
Information, said party shall notify the other parties promptly of the request
or requirement so that the nondisclosing party may seek an appropriate
protective order or waive compliance with the provisions of this Section 7.1.
If, in the absence of a protective order or the receipt of a waiver under this
Section 7.1, any party to this Agreement is, on the advice of counsel, compelled
to disclose any Confidential Information to any Authority or else stand liable
for contempt, said party may disclose the Confidential Information to the
Authority; provided, however, that the disclosing party shall use its reasonable
efforts to obtain, at the reasonable request of the nondisclosing party, an
order or such assurance that confidential treatment shall be accorded to such
portion of the Confidential Information required to be disclosed as the
nondisclosing party shall designate. Seller recognizes and agrees that all
documents and objects containing any Intellectual Property, Confidential
Information or proprietary or business information, whether developed by Seller
or by someone else for Seller, will after the Closing Date become the exclusive
property of Purchaser and its subsidiaries. Notwithstanding the foregoing,
nothing in this Section 7.1 shall prohibit Purchaser or its representatives from
disclosing Confidential Information to potential financing sources of the
Purchaser so long as such financing sources agree to keep any such disclosed
Confidential Information confidential from third parties not involved in such
potential financing.

    

    7.2         Noncompetition. Except as
provided in this Agreement, the other Transaction Documents, and the transaction
contemplated hereof and thereof, for a period of two (2) years following the
Closing Date, Seller shall not, and Seller shall cause its Affiliates not to,
directly or indirectly engage in the Business, or engage in, own, control, or
acquire interest in, manage, operate or lend money to, or act as an officer,
manager, director, partner, member or joint venturer of, any firm, company,
partnership, entity, enterprise or business that competes with the Business
anywhere in the world.

    
      
         

      

      
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    7.3         Non-Solicitation of Employees.
For a period of two (2) years following the Closing Date, Seller shall
not, and shall not permit any of its Affiliates to, encourage, solicit, induce,
or attempt to encourage, solicit or induce any Employee, or any Person who is an
independent contractor, agent or representative as of the date hereof, of
Purchaser (or any of its subsidiaries) or the Business to leave his/her
employment (or terminate his/her relationship or devote less than full time
efforts) with Purchaser (or any of its subsidiaries) or the Business for any
reason, and Seller, shall not, and shall not permit any of its Affiliates to,
hire or attempt to hire, for any position with any other business, any Employee,
or any Person who is an independent contractor, agent or representative as of
the date hereof, with Purchaser (or any of its subsidiaries) or the Business at
such time or who has been an Employee, contractor, agent or representative with
Purchaser (or any of its subsidiaries) or the Business at any time within 6
months preceding such time; provided, however that Affiliates of Seller shall
not be prohibited from employing or otherwise working with any such Person who
contacts Seller or its Affiliates in response to general solicitations through
the use of media advertisements, professional search firms or otherwise for
employment in a business which does not compete with the Business.

    

    7.4         Reasonableness of Restrictions.
Each of Seller and Purchaser recognizes that the limitations set forth in
Sections 7.1, 7.2 and 7.3 are reasonable and not burdensome, and in the event
that such limitations are deemed to be unreasonable by a court of competent
jurisdiction, then Seller and Purchaser agree to submit to a modification or
reduction of such limitations as such court shall deem reasonable.

    

    7.5         Injunctive Relief. Seller
acknowledges that its expertise in the Business is of a special, unique,
unusual, extraordinary and intellectual character, which gives such expertise a
peculiar value, and that a breach by it of the covenants contained in Sections
7.1, 7.2 or 7.3 cannot be reasonably or adequately compensated in damages in an
Action at Law and that such breach will cause Purchaser irreparable injury and
damage. Seller further acknowledges that it possesses unique skills, knowledge
and ability and that competition in violation of the covenants contained in
Sections 7.1, 7.2 or 7.3 would be extremely detrimental to Purchaser. By reason
thereof, each of Seller and Purchaser agrees that the other shall be entitled,
in addition to any other remedies it may have under this Agreement or otherwise,
to temporary, preliminary or permanent injunctive and other equitable relief to
prevent or curtail any breach of the covenants contained in Sections 7.1, 7.2 or
7.3, without proof of actual damages that have been or may be caused to Seller
or Purchaser, as applicable, by such breach or threatened breach.

    

    7.6         Publicity. No publicity
release, announcement or other disclosure to Persons other than the parties to
this Agreement or their respective legal, financial and accounting advisors and
consultants, brokers, shareholders, stockholders, members, officers, directors
or Affiliates concerning this Agreement or the transactions contemplated by this
Agreement shall be issued by any party to this Agreement (or its/their
representatives or Affiliates) without prior consent to the form and substance
thereof by Purchaser (in the case of any proposed release or announcement by
Seller or its representatives or Affiliates) or Seller (in the case of any
proposed release or announcement by Purchaser or its representatives or
Affiliates). Notwithstanding the foregoing, in the event any such press release
or announcement is required by Law to be made by the party proposing to issue
the same, such party shall use its reasonable efforts to consult in good faith
with the other party prior to the issuance of any such press release or
announcement.

    
      
         

      

      
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    7.7     Disputes.

    

    (a)           Subject
to Section 7.7(b), in the event a dispute shall arise between the parties to
this Agreement, it is hereby agreed that the dispute shall be submitted to
arbitration in Fairfax County, Virginia in accordance with the American
Arbitration Association’s rules applicable to commercial arbitration. The
arbitrator’s decision shall be final and binding and judgment may be entered
thereon. In the event a party fails to proceed with arbitration, unsuccessfully
challenges the arbitrator’s award, or fails to comply with the arbitrator’s
award, the other party is entitled of costs of suit including a reasonable
attorney’s fee for having to compel arbitration or defend or enforce the
award.

    

    (b)           Any
dispute regarding any monetary amount calculated pursuant to this Agreement or
the Note, including but not limited to the calculation of Gross Revenues or any
payment made or to be made under Sections 2.5 or2.6, shall be submitted to an
accounting firm mutually acceptable to the parties. Such accounting firm’s
decision shall be final and binding upon the parties, except that a party may
request that the applicable accounting firm reconsider its initial decision.
Seller shall be responsible for all costs and expenses associated with such
accounting firm’s investigation and decision regarding such dispute provided
that if such accounting firm finally determines that Purchaser has underpaid an
obligation by an amount equal to the greater of five percent (5%) of the amount
payable by Purchaser for the period under review or Five Thousand Dollars
($5,000), Purchaser shall pay the costs and expenses associated with the
accounting firm’s decision.

    

    7.8         Expenses. Except as otherwise
set forth in this Agreement, Seller shall be responsible for the payment of all
costs and expenses incurred by it or any of its Affiliates in the negotiation
and preparation of this Agreement and in closing and carrying out the
transactions contemplated by this Agreement and the other Transaction Documents,
including all attorneys’ fees, accountants’ fees, broker’s fees or commissions
and related costs and expenses. Except as otherwise set forth in this Agreement,
Purchaser shall be responsible for the payment of all costs and expenses
incurred or to be incurred by Purchaser or any of its Affiliates in the
negotiation and preparation of this Agreement and the other Transaction
Documents and in closing and carrying out the transactions contemplated by this
Agreement, including all attorneys’ fees, accountants’ fees, broker’s fees or
commissions and related costs and expenses. Notwithstanding the foregoing, the
Purchaser shall be responsible for any fees and expenses incurred by Seller in
enforcing its rights under Section 5.2

    

    7.9         Survival. The representations
and warranties contained in or made pursuant to this Agreement shall survive the
Closing for a period of eighteen (18) months after the Closing Date, except
representations and warranties of Seller contained Sections 3.1 (Authority and
Enforceability) and 3.3 (Brokers) and warranties of Purchaser contained in
Sections 4.2 (Authority and Enforceability) and 4.5 (Brokers) which shall
survive forever and the obligation of Seller or Purchaser, as applicable, to
indemnify the other for any Adverse Consequences relating to such
representations and warranties shall survive without any limitation other than
the express duration of the representation or warranty to which it relates, if
any.

    

    7.10       Notices. All notices,
consents, requests, instructions, approvals, demands and other communications
provided for herein shall be validly given, made or served if in writing and
delivered personally by hand, by a nationally recognized overnight courier
service (i.e., FedEx or United Parcel Service), by United States certified or
registered first class mail, postage prepaid with return receipt requested, or
by electronic or facsimile transmission. Each such notice, consent, request,
instruction, approval, demand or other communication shall be effective if
delivered (a) personally by hand or by a nationally recognized overnight courier
service, when delivered at the address specified in this Section 7.10; (b) by
United States certified or registered first class mail sent to the address
specified in this Section 7.10 on the date appearing on the return receipt
therefore; or (c) by electronic or facsimile transmission, when such electronic
or facsimile transmission is transmitted to the electronic mail address or
facsimile transmission number specified in this Section 7.10 and the appropriate
confirmation is received. In the event that a party is unable to deliver a
notice, consent, request, instruction, approval, demand, or other communication
due to the inaccuracy of the address or facsimile transmission number provided
by the other party pursuant to this Section 7.10, or the other party’s failure
to notify the party of a change of its address or facsimile transmission number
as specified pursuant to this Section 7.10, such notice, consent, request,
instruction, approval, demand, or other communication shall be deemed to be
effective upon confirmation by a nationally recognized overnight courier service
of its failure to complete delivery to the other party’s address as set forth in
this Section 7.10 (or other address duly given to the party by the other party
in accordance with this Section 7.10).

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

    Addresses
and facsimile transmission numbers for notices (unless and until written notice
is given of any other address or facsimile transmission number):

    

    If to
Purchaser, to:

    

    NuGen
Mobility

    44645
Guilford Drive, Suite 201

    Ashburn,
VA 20147

    Attention:
Eric Takamura

    Fax: [
____________________________________ ]

    Email:
[                                    ]

    

    with a
copy to:

    

    Pepper
Hamilton LLP

    600
Fourteenth Street, NW

    Washington,
DC 20005-2004

    Attention:
Steve A. Mandell

    Fax:
(202) 220-1200

    Email:
mandells@pepperlaw.com

    

    If to
Seller, to:

    

    New
Generation Motors Corporation

    c/o

    Henry,
O'Donnell, Dahnke & Walther, P.C.

    4103
Chain Bridge Road, Suite 100

    Fairfax,
Virginia 22030

    Attention:
Bruce W. Henry

    Fax:
(703) 273-6884

    Email:
bwh@henrylaw.com

    

    7.11       Construction. Any reference to
any Law shall be deemed to include any amendments thereto, and any successor
Law, unless the context otherwise requires. “Including” means “including without
limitation” and does not limit the preceding words or terms. The word “or” is
used in the inclusive sense of “and/or”. The singular shall include the plural
and vice versa. Each word of gender shall include each other word of gender as
the context may require. References to “Articles” or “Sections” or “Schedules”
or “Exhibits” shall mean Articles or Sections of this Agreement or Schedules or
Exhibits attached to this Agreement, unless otherwise expressly indicated. The
title of each Article and the headings or titles preceding the text of the
Sections are inserted solely for convenience of reference, and shall not
constitute a part of this Agreement, nor shall they affect the meaning,
construction or effect of this Agreement. The parties have each participated in
the negotiation and drafting of this Agreement.

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

    In the
event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any of the provisions of this
Agreement.

    

    7.12       Entire Agreement. This
Agreement, and the other Transaction Documents including the initial paragraph,
the recitals to this Agreement and the other Transaction Documents and all
Schedules and Exhibits attached to this Agreement, each of which are made a part
of this Agreement by this reference, constitutes the entire understanding of the
parties, supersedes any prior agreements or understandings, written or oral,
between the parties with respect to the subject matter of this Agreement and the
other Transaction Documents between Seller and Purchaser and that certain Letter
of Intent, dated September 22, 2006, between Seller and Purchaser. No
supplement, modification or amendment of this Agreement shall be binding unless
executed in writing by all of the parties to this Agreement. No waiver of any of
the provisions of this Agreement shall be deemed, or shall constitute, a waiver
of any other provision, whether or not similar, nor shall any waiver constitute
a continuing waiver. No waiver shall be binding unless executed in writing by
the party making the waiver.

    

    7.13       Invalidity. If any material
provision of this Agreement is determined to be unenforceable or otherwise
invalid, the remainder of this Agreement, or the application thereof to any
person or circumstances other than those as to which it is invalid or
unenforceable, shall not be affected thereby, and each provision of this
Agreement shall be valid and enforced to the fullest extent of the law,
provided, that the parties in good faith shall negotiate and execute an
amendment to this Agreement incorporating a new provision intended to achieve
the substantially same result as the unenforceable or otherwise invalid
provision.

    

    7.14       Rights of Parties. Nothing in
this Agreement, whether express or implied, is intended to confer any benefit,
right or remedy under or by reason of this Agreement on any Persons other than
the parties to this Agreement and their respective successors and permitted
assigns, nor is anything in this Agreement intended to relieve or discharge the
obligation or Liability of any other Person to any party to this Agreement, nor
shall any provision give any other Person any right of subrogation or action
over or against any party to this Agreement.

    

    7.15       Succession and Assignment.
This Agreement shall be binding upon, and inure to the benefit of, the
parties to this Agreement and their respective representatives, successors and
permitted assigns. None of the parties to this Agreement may assign either this
Agreement or any of the rights, interests or obligations hereunder without the
prior written approval of the other parties. Notwithstanding the foregoing,
Purchaser may, without the consent of Seller, assign all of its rights under
this Agreement in connection with the assignment of a security interest to any
lender of Purchaser, or to any Affiliate of Purchaser, provided that Purchaser
remains liable for all of its obligations hereunder.

    

    7.16       Governing Law. This Agreement shall be governed by and
construed under the laws of the Commonwealth of Virginia, notwithstanding the
conflicts of laws principles of Virginia or any other jurisdiction. Subject to
Section 7.7, no suit, action or proceeding with respect to this Agreement may be
brought in any court or before any similar authority other than in a court of
competent jurisdiction in the Commonwealth of Virginia and the parties hereby
submit to the exclusive jurisdiction of such courts for the purpose of such
suit, proceeding or judgment. Each of the parties hereto hereby irrevocably
waives any right which it may have had to bring such an action in any other
court, domestic or foreign, or before any similar domestic or foreign authority
and agrees not to claim or plead the same. Each of the parties hereto hereby
irrevocably and unconditionally waives trial by jury in any legal action or
proceeding in relation to this Agreement and for any counterclaim
therein.

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

    

    7.17       Counterparts. This Agreement
may be executed in two or more counterparts, each of which shall be deemed an
original, but which together shall constitute one and the same instrument. The
parties may execute this Agreement and all other agreements, certificates,
instruments and other documents contemplated by this Agreement and exchange on
the Closing Date counterparts of such documents by means of facsimile
transmission or electronic transmission and the parties agree that the receipt
of such executed counterparts shall be binding on such parties and shall be
construed as originals. After the Closing the parties shall promptly exchange
original versions of this Agreement and all other agreements, certificates,
instruments and other documents contemplated by this Agreement that were
executed and exchanged by facsimile transmission or electronic transmission
pursuant to this Section 7.17.

    

    [The
Remainder of This Page Intentionally Left Blank and Signature Page
Follows]

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

     

    
      Execution
Copy

      

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

      NUGEN MOBILITY

      

      By: /s/ Eric
Takamura__________________________

      Its: President /
CEO___________________________

      

      NEW GENERATION MOTORS
CORPORATION

      

      By: /s/ Siamak
Harandi________________________

      Its: ­_Secretary_______________________________

      

      

       

      

      

      

      

      Signature
page to

      Asset
Purchase Agreement

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Execution
Copy

      

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

      NUGEN MOBILITY

      

      By: _Eric Takamura
________________________________

      Its: _/s/ Eric Takamura
______________________________

      

      NEW GENERATION MOTORS
CORPORATION

      

      By: ___ ___________________________________________

      Its:
_______________________________________________

      

       

      

      

      

      

      

      

      Signature
page to

      Asset
Purchase Agreement

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Execution
Copy

      

      SCHEDULES

      

      
        
          	
                  Schedule
      1.1(r)

                	 
      	
                  Employees

                
	
                  Schedule
      2.1(a) -

                	 
      	
                  Equipment

                
	
                  Schedule
      2.1(b) -

                	 
      	
                  Inventory

                
	
                  Schedule
      2.1(c) -

                	 
      	
                  Intellectual
      Property

                
	
                  Schedule
      2.1(d) -

                	 
      	
                  Equipment
      Leases

                
	
                  Schedule
      2.1(e)

                	 
      	
                  Leased
      Real Property

                
	
                  Schedule
      2.1(f)

                	 
      	
                  Contracts

                
	
                  Schedule
      2.2(e)

                	 
      	
                  Other
      Excluded Assets

                
	
                  Schedule
      2.3

                	 
      	
                  Assumed
      Liabilities

                
	
                  Schedule
      2.5

                	 
      	
                  Credits
      From Advanced Amounts

                
	
                  Schedule
      2.8(a)

                	 
      	
                  Contracts
      Requiring Consent

                
	
                  Schedule
      2.8(b)

                	 
      	
                  Assumed
      Contract Obligations

                
	
                  Schedule
      4.2

                	 
      	
                  Purchaser’s
      Third Party
Consents

                

        

      EXHIBITS

      

      
        
          	
                  Exhibit
      1.1(e)

                	 
      	
                  Assignment
      and Assumption Agreement

                
	
                  Exhibit
      1.1(f)

                	 
      	
                  Assignment
      of Patents

                
	
                  Exhibit
      1.1(i)

                	 
      	
                  Bill
      of Sale

                
	
                  Exhibit
      2.5

                	 
      	
                  Note

                
	
                  Exhibit
      2.10(a)

                	 
      	
                  Seller’s
      Secretary’s Certificates

                
	
                  Exhibit
      2.11(c)

                	 
      	
                  Purchaser
      Secretary’s Certificate

                
	
                  Exhibit
      2.11(e)

                	 
      	
                  Certificate
      - Eric Takamura

                

        

      
        
           

        

        
          i

          
            

          

        

        
           

        

      

      

      Schedule
1.1(r)

      Employees

      

      Anthony
D’Andrea

      Corry
Davis

      Anubhav
Sethi

      Eric
Takamura

      Jeffrey
Yambor

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Schedule
2.1(a)

      Equipment

      

      
        
          
            
              	
                      Item

                      #

                    	
                      Item

                    	
                      Location

                    	
                      Description

                    	
                      Size
      (LxWxH)

                    	
                      Quantity

                    
	
                      1

                    	
                      Desk

                    	
                      Anthony

                    	
                      L-shape

                    	
                      66X75

                    	
                      1

                    
	
                      2

                    	
                      Table

                    	
                      Anthony

                    	
                      3
      Leg

                    	
                      60x32

                    	
                      1

                    
	
                      3

                    	
                      Bookshelf

                    	
                      Anthony

                    	
                      6
      shelf wood

                    	
                      3x6'

                    	
                      2

                    
	
                      4

                    	
                      Chairs

                    	
                      Anthony

                    	
                      Swival
      desk

                    	 
      	
                      2

                    
	
                      5

                    	
                      Monitor

                    	
                      Anthony

                    	
                      Gateway
      15”

                    	 
      	
                      1

                    
	
                      6

                    	
                      White
      Board

                    	
                      Anthony

                    	
                      White
      Board

                    	
                      4'x3'

                    	
                      1

                    
	
                      7

                    	
                      Eprom
      Eraser

                    	
                      Anthony

                    	
                      Spectroline
      PE-140 Ultraviolet

                    	 
      	
                      1

                    
	
                      8

                    	
                      Assorted
      Parts

                    	
                      Anthony

                    	
                      Assorted
      Electronic Parts

                    	 
      	 
      
	
                      9

                    	
                      Bookshelf

                    	
                      Engineering

                    	
                      6
      shelf wood

                    	
                      6x3

                    	
                      6

                    
	
                      10

                    	
                      Bookshelf

                    	
                      Engineering

                    	
                      3
      shelf metel

                    	
                      36"x42"

                    	
                      1

                    
	
                      11

                    	
                      Bookshelf

                    	
                      Engineering

                    	
                      3
      shelf wood

                    	
                      3'x3'

                    	
                      1

                    
	
                      12

                    	
                      Bookshelf

                    	
                      Engineering

                    	
                      5
      shelf metal

                    	
                      34x71

                    	
                      1

                    
	
                      13

                    	
                      Table

                    	
                      Engineering

                    	
                      wood

                    	
                      6'x2.5'

                    	
                      1

                    
	
                      14

                    	
                      Table

                    	
                      Engineering

                    	
                      wood

                    	
                      48"x20"

                    	
                      1

                    
	
                      15

                    	
                      Desk

                    	
                      Engineering

                    	
                      L-shape

                    	
                      64x78

                    	
                      4

                    
	
                      16

                    	
                      Dividers

                    	
                      Engineering

                    	
                      Cubical
      Dividers

                    	
                      3'x5.5'

                    	
                      13

                    
	
                      17

                    	
                      Stools

                    	
                      Engineering

                    	
                      Metal

                    	 
      	
                      2

                    
	
                      18

                    	
                      Chairs

                    	
                      Engineering

                    	
                      Swivel

                    	 
      	
                      6

                    
	
                      19

                    	
                      Chairs

                    	
                      Engineering

                    	
                      Arm
      Chairs

                    	 
      	
                      3

                    
	
                      20

                    	
                      File
      Cabinets

                    	
                      Engineering

                    	
                      4
      drawer metal

                    	
                      15"x26x52

                    	
                      1

                    
	
                      21

                    	
                      Computer

                    	
                      Engineering

                    	
                      Gateway
      GP6-333 with ext CDR

                    	 
      	
                      5

                    
	
                      22

                    	
                      Laptops

                    	
                      Engineering

                    	
                      Gateway
      Solo (old)

                    	 
      	
                      3

                    
	
                      23

                    	
                      Unix
      Workstation

                    	
                      Engineering

                    	
                      SGI
      02 R5000

                    	 
      	
                      2

                    
	
                      24

                    	
                      Unix
      Workstation

                    	
                      Engineering

                    	
                      SGI
      02 R10000 + 8GB &  18GB  Ext HD

                    	 
      	
                      1

                    
	
                      25

                    	
                      Tape
      Drive

                    	
                      Engineering

                    	
                      Legasys

                    	 
      	
                      1

                    
	
                      26

                    	
                      Computer

                    	
                      Engineering

                    	
                      Indigo
      Workstation + ext 4GB HD

                    	 
      	
                      1

                    
	
                      27

                    	
                      Laptops

                    	
                      Engineering

                    	
                      Dell
      Inspiron 2200 Mobil Proc (Jeff’s)

                    	 
      	
                      1

                    
	
                      28

                    	
                      Printer

                    	
                      Engineering

                    	
                      Xerox
      Docuprint P8 Laser

                    	 
      	
                      1

                    
	
                      29

                    	
                      Printer

                    	
                      Xerox
      Room

                    	
                      HP
      LaserJet 1320n

                    	 
      	
                      1

                    
	
                      30

                    	
                      Printer

                    	
                      Xerox
      Room

                    	
                      HP
      LaserJet 6np

                    	 
      	
                      1

                    
	
                      31

                    	
                      Fax
      Machine

                    	
                      Xerox
      Room

                    	
                      HP
      OfficeJet 590

                    	 
      	
                      1

                    
	
                      32

                    	
                      Computer

                    	
                      Xerox
      Room

                    	
                      Drectwave
      Tower P133

                    	 
      	
                      1

                    
	
                      33

                    	
                      Printer

                    	
                      Xerox
      Room

                    	
                      HP
      Deskjet 1220c

                    	 
      	
                      1

                    
	
                      34

                    	
                      Copier

                    	
                      Xerox
      Room

                    	
                      HP
      Color Coopier 290

                    	 
      	
                      1

                    
	
                      35

                    	
                      Printer
      Hub

                    	
                      Xerox
      Room

                    	
                      HP
      JetDirect EX plus

                    	 
      	
                      2

                    

            

          

           

          
            
               

            

            
               

              
                

              

            

            
               

            

          

           

          
            
              
                	
                        36

                      	
                        Lateral
      File Cabinet

                      	
                        Xerox
      Room

                      	
                        2
      Drawer

                      	
                        36"x28"

                      	
                        3

                      
	
                        37

                      	
                        Table
      Top

                      	
                        Xerox
      Room

                      	
                        Wood

                      	
                        36x19

                      	
                        1

                      
	
                        38

                      	
                        Table
      Top

                      	
                        Xerox
      Room

                      	
                        Wood

                      	
                        72"x19"

                      	
                        1

                      
	
                        39

                      	
                        Network
      Box

                      	
                        Xerox
      Room

                      	
                        Cabinet

                      	
                        23.5"x23.5x20"

                      	
                        1

                      
	
                        40

                      	
                        Office
      Router

                      	
                        Xerox
      Room

                      	
                        Belken
      2.4 Ghz Wireless

                      	 
      	
                        1

                      
	
                        41

                      	
                        Office
      Router

                      	
                        Xerox
      Room

                      	
                        Lucent
      Technologies, ISDN

                      	 
      	
                        1

                      
	
                        42

                      	
                        Hub

                      	
                        Xerox
      Room

                      	
                        10baseT,
      Unicom

                      	 
      	
                        1

                      
	
                        43

                      	
                        Switch

                      	
                        Xerox
      Room

                      	
                        Bay
      Networks, Baystack 350-hd Auto-sense

                      	 
      	
                        1

                      
	
                        44

                      	
                        Lateral
      File Cabinet

                      	
                        Xerox
      Room

                      	
                        2
      shelf wood

                      	
                        36"x29"x20"

                      	
                        1

                      
	
                        45

                      	
                        Cabinet
      Furniture

                      	
                        Nabie
      Office

                      	
                        Wood
      Split open drawer and file

                      	
                        6'x3'

                      	
                        1

                      
	
                        46

                      	
                        Cabinet
      Furniture

                      	
                        Nabie
      Office

                      	
                        Desk-Cabinet

                      	
                        6x6'x20"

                      	
                        1

                      
	
                        47

                      	
                        Computer

                      	
                        Nabie
      Office

                      	
                        Tower
      - Power Max 8100-80

                      	 
      	
                        1

                      
	
                        48

                      	
                        File
      Cabinets

                      	
                        Nabie
      Office

                      	
                        Metal

                      	
                        15x26x52

                      	
                        1

                      
	
                        49

                      	
                        Workstation

                      	
                        Nabie
      Office

                      	
                        Gateway
      GP6-350 P2

                      	 
      	 
      
	
                        50

                      	
                        Desk

                      	
                        Nabie
      Office

                      	
                        L-shape

                      	
                        72"x83"

                      	
                        1

                      
	
                        51

                      	
                        Luggage
      Carrier

                      	
                        Nabie
      Office

                      	
                        Wheel
      rack

                      	 
      	
                        1

                      
	
                        52

                      	
                        Chairs

                      	
                        Nabie
      Office

                      	
                        Swivel

                      	 
      	
                        1

                      
	
                        53

                      	
                        Chairs

                      	
                        Nabie
      Office

                      	
                        Arm
      Chairs

                      	 
      	
                        1

                      
	
                        54

                      	
                        Bookshelf

                      	
                        Nabie
      Ext

                      	
                        6
      shelf wood

                      	
                        6x3

                      	
                        1

                      
	
                        55

                      	
                        Desk

                      	
                        Nabie
      Ext

                      	
                        L-shape

                      	
                        64x78

                      	
                        1

                      
	
                        56

                      	
                        keyboards

                      	
                        Nabie
      Ext

                      	
                        Gateway

                      	 
      	
                        2

                      
	
                        57

                      	
                        mouse

                      	
                        Nabie
      Ext

                      	
                        Mouse

                      	 
      	
                        2

                      
	
                        58

                      	
                        Chairs

                      	
                        Lobby

                      	
                        Arm
      Chairs

                      	 
      	
                        2

                      
	
                        59

                      	
                        Table

                      	
                        Lobby

                      	
                        Wood
      End Table

                      	
                        24x24x18

                      	
                        1

                      
	
                        60

                      	
                        Desk

                      	
                        VP
      Office

                      	
                        L-shape

                      	
                        72"x83"

                      	
                        1

                      
	
                        61

                      	
                        Cabinet
      Furniture

                      	
                        VP
      Office

                      	
                        Desk-Cabinet

                      	
                        6x6'x20"

                      	
                        1

                      
	
                        62

                      	
                        Round
      Table

                      	
                        VP
      Office

                      	
                        Wood

                      	
                        42"

                      	
                        1

                      
	
                        63

                      	
                        Workstation

                      	
                        VP
      Office

                      	
                        Gateway
      GP6-333 no Network or RAM

                      	 
      	
                        1

                      
	
                        64

                      	
                        Combind

                      	
                        VP
      Office

                      	
                        GPC
      Combind c100

                      	 
      	
                        1

                      
	
                        65

                      	
                        Chairs

                      	
                        VP
      Office

                      	
                        Swivel

                      	 
      	
                        1

                      
	
                        66

                      	
                        Chairs

                      	
                        VP
      Office

                      	
                        Arm
      Chairs

                      	 
      	
                        2

                      
	
                        67

                      	
                        Printer

                      	
                        VP
      Office

                      	
                        Cannon
      Color bubblejet 1450 (in box)

                      	 
      	
                        1

                      

              

            

             

            
              
                 

              

              
                 

                
                  

                

              

              
                 

              

            

             

            
              
                
                  	
                          68

                        	
                          Surge
      Tester

                        	
                          Shop

                        	
                          Baker
      Model D3R

                        	 
      	
                          1

                        
	
                          69

                        	
                          Band
      Saw

                        	
                          Shop

                        	
                          Victor
      Model DCM-6

                        	 
      	
                          1

                        
	
                          70

                        	
                          Belt
      Sander

                        	
                          Shop

                        	
                          Wilton
      Model 4300

                        	 
      	
                          1

                        
	
                          71

                        	
                          Bench
      Grinder

                        	
                          Shop

                        	
                          Baldor
      Cat# 623E

                        	 
      	
                          1

                        
	
                          72

                        	
                          Portable
      HiPot Tester

                        	
                          Shop

                        	
                          Yokogawa
      M&C Corp 2426A

                        	 
      	
                          1

                        
	
                          73

                        	
                          CMM
      Machin

                        	
                          Shop

                        	
                          Brown
      & Sharpe MFG Co Gage 2000

                        	 
      	
                          1

                        
	
                          74

                        	
                          MCRT
      Non-Contact TorqueMeter

                        	
                          Shop

                        	
                          S.
      Himmelstein & Co Model 2904TC (5-3)FA

                          10,000
      rpm

                          5,000
      lb-in

                        	 
      	
                          1

                        
	
                          75

                        	
                          MCRT
      Non-Contact TorqueMeter

                        	
                          Shop

                        	
                          S.
      Himmelstein & Co Model 2803TC (1-3)

                          8,500
      rpm

                          1000
      lb-in

                        	 
      	
                          1

                        
	
                          76

                        	
                          MCRT
      Non-Contact TorqueMeter

                        	
                          Shop

                        	
                          S.
      Himmelstein & Co Model 2801TC (2-2)

                          15,000
      rpm

                          200
      lb-in

                        	 
      	
                          1

                        
	
                          77

                        	
                          MCRT
      Non-Contact TorqueMeter

                        	
                          Shop

                        	
                          S.
      Himmelstein & Co Model 2904TC (1-4)FZ

                          10,000
      rpm

                          10,000
      lb-in

                        	 
      	
                          1

                        
	
                          78

                        	
                          Drill
      Press

                        	
                          Shop

                        	
                          TradesMan
      Model 8055S

                        	 
      	
                          1

                        
	
                          79

                        	
                          Hydraulic
      Press Brake

                        	
                          Shop

                        	
                          Guifil
      Model PE 6-16

                        	 
      	
                          1

                        
	
                          80

                        	
                          Hydraulic
      Shear

                        	
                          Shop

                        	
                          Guifil
      Model GH 415

                        	 
      	
                          1

                        
	
                          81

                        	
                          Soldering/Desoldering

                        	
                          Shop

                        	
                          Sensatemp
      PacMBT250 3 Iron Station and assorted tips

                        	 
      	
                          1

                        
	
                          82

                        	
                          Soldering
      Station

                        	
                          Shop

                        	
                          MetCal MN#
      MX-500P-11 2 Iron Station

                        	 
      	
                          1

                        
	
                          83

                        	
                          Circuit
      Boart Clamps

                        	
                          Shop

                        	
                          Panavis
      14” Span

                        	 
      	
                          2

                        
	
                          84

                        	
                          Circuit
      Board Clamps

                        	
                          Shop

                        	
                          Assorted
      Generic Vise Clamps

                        	 
      	
                          3

                        
	
                          85

                        	
                          Specity
      Tools

                        	
                          Shop

                        	
                          Bending
      FETS

                        	 
      	
                          3

                        
	
                          86

                        	
                          ESD
      Montitor

                        	
                          Shop

                        	
                          3m
      Work Station Monitor

                        	 
      	
                          1

                        
	
                          87

                        	
                          Mini
      Arbor Press

                        	
                          Shop

                        	
                          Panavise

                        	 
      	
                          1

                        
	
                          88

                        	
                          Mini
      Charge

                        	
                          Shop

                        	
                          Interstate
      Battery

                        	 
      	
                          1

                        
	
                          89

                        	
                          Charger

                        	
                          Shop

                        	
                          Milwakee
      Charger (screw driver)

                        	 
      	
                          1

                        
	
                          90

                        	
                          Soldering
      station

                        	
                          Shop

                        	
                          Weller
      M# WES50

                        	 
      	
                          1

                        
	
                          91

                        	
                          Soldering
      Station

                        	
                          Shop

                        	
                          METCAL
      MN# SP44

                        	 
      	
                          1

                        
	
                          92

                        	
                          Punch
      Clock

                        	
                          Shop

                        	
                          Lathem
      (Time Card)

                        	 
      	
                          1

                        
	
                          93

                        	
                          Hydraulic
      Motor

                        	
                          Shop

                        	
                          Motor/Pump

                        	 
      	
                          1

                        
	
                          94

                        	
                          Workstation

                        	
                          Shop

                        	
                          HP
      Pavilion 6635

                        	 
      	
                          1

                        
	
                          95

                        	
                          Scanner

                        	
                          Shop

                        	
                          Microtek
      36-bit color Scanmaker X6 with filmstrip scanning adaptor

                        	 
      	
                          1

                        

                

              

            

             

            
              
                 

              

              
                 

                
                  

                

              

              
                 

              

            

             

            
              
                
                  	
                          96

                        	
                          Air
      Dryer

                        	
                          Shop

                        	
                          Aero
      A-10/F-/10/20-1 (with CMM)

                        	 
      	
                          1

                        
	
                          97

                        	
                          Table

                        	
                          Shop

                        	
                          Metal
      Base for CMM 34"x34"x29

                        	 
      	
                          1

                        
	
                          98

                        	
                          Workbenches

                        	
                          Shop

                        	
                          Wood
      top lighted electric assy tables

                        	
                          6'x32x34.5

                        	
                          2

                        
	
                          99

                        	
                          Workbenches

                        	
                          Shop

                        	
                          Table

                        	
                          6'x29.5x29.5

                        	
                          1

                        
	
                          100

                        	
                          Shelves

                        	
                          Shop

                        	
                          Plastic

                        	
                          16x16x32

                        	
                          1

                        
	
                          101

                        	
                          First-Aid
      Kits

                        	
                          Shop

                        	
                          Wall
      Mount

                        	 
      	
                          2

                        
	
                          102

                        	
                          Desk

                        	
                          Shop

                        	
                          Wood

                        	
                          4'x29.5x29.5

                        	
                          1

                        
	
                          103

                        	
                          Tool
      Box

                        	
                          Shop

                        	
                          3
      Section red rollaround toolbox (Electronics Supplies)

                        	 
      	
                          1

                        
	
                          104

                        	
                          Power
      Supply

                        	
                          Shop

                        	
                          Sorenson
      DCR160-30T

                        	 
      	
                          1

                        
	
                          105

                        	
                          Oscilloscope

                        	
                          Shop

                        	
                          HP
      54645D 100 Mhz 2+16CH

                        	 
      	
                          1

                        
	
                          106

                        	
                          Multimeter

                        	
                          Shop

                        	
                          Fluke
      87

                        	 
      	
                          1

                        
	
                          107

                        	
                          Soldering
      Station

                        	
                          Shop

                        	
                          Weller
      WCC100

                        	 
      	
                          1

                        
	
                          108

                        	
                          Laptops

                        	
                          Shop

                        	
                          Toshiba
      Satellite (Broken Monitor)

                        	 
      	
                          1

                        
	
                          109

                        	
                          Monitor

                        	
                          Shop

                        	
                          MAG
      15” CRT

                        	 
      	
                          1

                        
	
                          110

                        	
                          DMM-Scope

                        	
                          Shop

                        	
                          Tekronix
      Tekscope THS720STD

                        	 
      	
                          1

                        
	
                          111

                        	
                          DC
      Power Supply

                        	
                          Shop

                        	
                          BK
      Precision 1715

                        	
                          w

                        	
                          1

                        
	
                          112

                        	
                          Dynamometer

                        	
                          Shop

                        	
                          Internally
      Built for testing motors

                        	 
      	
                          2

                        
	
                          113

                        	
                          Controller
      Test Bench

                        	
                          Shop

                        	
                          Internally
      Built for calibrating controllers

                        	 
      	
                          1

                        
	
                          114

                        	
                          All
      hand tools

                        	
                          Various

                        	 
      	 
      	 
      
	
                          115

                        	
                          All
      prototypes

                        	
                          Various

                        	 
      	 
      	 
      

                

              

            

          

        

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Schedule
2.1(b)

      Inventory

      

      Please
see attached.

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Schedule
2.1(c)

      Intellectual
Property

      

      
        
          
            
              	
                      Item
      #

                    	
                      U.S.
      Patent #

                    	
                      Title

                    	
                      Note

                    
	
                      1

                    	
                      6,348,751
      B1

                    	
                      “Electric
      Motor with active hysteresisbased control
      of winding currents and/or
      having an efficient stator winding arrangement
      and/or adjustable air gap"

                    	 
      
	
                      2

                    	
                      6,137,203

                    	
                      “Electric
      Motor with active hysteresisbased control
      of winding currents and/or
      having an efficient stator winding arrangement
      and/or adjustable air gap"

                    	 
      
	
                      3

                    	
                      6975082
      B2

                    	
                      Variable
      Speed Drive with a synchronous
      motor"

                    	
                      Assignment
      is incorrect
      and NGM must
      help to get correct
      if necessary

                    
	
                      4

                    	
                      PCT
      filing of patent
      above

                    	
                      (PCT
      filed also but no number)

                    	 
      
	
                      5

                    	
                      PCT
      822/MUM/2003

                    	
                      Compact
      Drive system for Electrically operated
      road vehicle

                    	
                      Co-Owned
      with Bajaj Auto
      Ltd.

                    

            

          

        

      

      

      
        
          
            
              	 
      	
                      All
      Intellectual Property, if any, embodied in the following:

                    	 
      
	 
      	
                      PRODUCTS

                       

                       

                    	 
      	 
      
	
                      1

                    	
                      EMS401-043

                    	
                      48V
      Integrated Motor and Controller

                    	 
      
	
                      2

                    	
                      EMS401-083

                    	
                      84V
      Integrated Motor and Controller

                    	 
      
	
                      3

                    	
                      MSF215

                    	
                      Motor,
      Single sided fixed Gap with a 215mm
      O.D. Stator

                    	 
      
	
                      4

                    	
                      MSF240

                    	
                      Motor,
      Single sided fixed Gap with a 240mm
      O.D. Stator

                    	 
      
	
                      5

                    	
                      MDF375

                    	
                      Motor,
      Dual sided Fixed Gap with a 375mm
      O.D. Stator

                    	 
      
	
                      6

                    	
                      SCM150

                    	
                      Motor,
      “Solar Car”, Single sided variable Gap
      with a 260mm O.D. Stator

                    	 
      
	
                      7

                    	
                      M401

                    	
                      Motor,
      Single sided with a 240mm O.D. Stator
      in casted housing

                    	 
      
	
                      8

                    	
                      EVC200-042

                    	
                      Controller,
      48V 200 Series Logic

                    	 
      
	
                      9

                    	
                      EVC200-092

                    	
                      Controller,
      96V 200 Series Logic

                    	 
      
	
                      10

                    	
                      EVC200-144

                    	
                      Controller,
      144V 200 Series Logic

                    	 
      
	
                      11

                    	
                      EVC200-266

                    	
                      Controller,
      312V 200 Series Logic

                    	 
      
	
                      12

                    	
                      EVC402-092

                    	
                      Controller,
      96V 402 Series Logic

                    	 
      
	
                      13

                    	
                      EVC400-043

                    	
                      Controller,
      48V 400 Series Logic

                    	 
      
	
                      14

                    	
                      EVC401-043

                    	
                      Controller,
      48V 401 Series Logic

                    	 
      
	
                      15

                    	
                      VCM440

                    	
                      Small
      Vehicle Control Module, 440 Series
      Logic

                    	 
      

            

          

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Schedule
2.1(d)

      Equipment
Leases

      

      None.

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Exhibit
2.1(e)

      Leased
Real Property

      

      None.

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Schedule
2.1(f)

      Contracts

      

      
        
          
            
              	
                      Item
      #

                    	
                      Company

                    	
                      Title

                    	
                      Note

                    
	
                      1

                    	
                      Bajaj
      Auto Ltd of
      India

                    	
                      Master
      License Agreement for the EMS401-043
      Drive System

                    	 
      
	
                      2

                    	
                      Harlan
      Global

                    	
                      Supply
      of EMS401-103 for use as a Generator

                    	
                      No
      contract just MOU

                    
	
                      3

                    	
                      Prairie
      View A&M
      Univ.

                    	
                      Sales
      Order 000677

                    	
                      $6300
      deposit received

                    
	
                      4

                    	
                      The
      Univ. of Arizona

                    	
                      Sales
      Order 000727

                    	
                      $1,850
      deposit/credit
      received

                    
	
                      5

                    	
                      The
      Univ. of Ontario
      Institute
      of Tech.

                    	
                      Sales
      Order 000741

                    	
                      $3,525
      remaining
      deposit
      received

                    
	
                      6

                    	
                      Choctaw
      Tribal Schools

                    	
                      Sales
      Order 000743 to 00746

                    	
                      $23,880
      deposit received

                    
	
                      7

                    	
                      Stanford
      Univ.

                    	
                      Sales
      Order 000749

                    	
                      $5,500
      deposit received

                    
	
                      8

                    	
                      Universidad
      Simon
      Bolivar

                    	
                      Sales
      Order 000750

                    	
                      $3,590
      deposit received

                    
	
                      9

                    	
                      Principia
      College

                    	
                      Sales
      Order 000751

                    	
                      $2,800
      deposit received

                    
	
                      10

                    	
                      Atilim
      Univ, Turkey

                    	
                      Sales
      Order 000754

                    	
                      $42,610
      deposit received

                    
	
                      11

                    	
                      Solar
      Car Univ. of
      Twente

                    	
                      Sales
      Order 000756

                    	
                      $4,992.50
      deposit
      received

                    
	
                      12

                    	
                      Principia
      College

                    	
                      Sales
      Order 000757

                    	
                      $6,000
      deposit received

                    
	
                      13

                    	
                      Choctaw
      Tribal Schools

                    	
                      Sales
      Order 000755

                    	
                      $36.00
      deposit received

                    
	 
      	 
      	
                      All
      Open Pos that may exist at time of closing provided
      any deposits received are applied

                    	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                      Contracts
      or Negotiations in process

                    	 
      
	 
      	
                      DRS-TEM

                    	
                      Supply
      of Electric Rocket Launcher system

                    	 
      
	 
      	
                      Timken

                    	
                      License
      of variable gap technology

                    	 
      
	 
      	
                      Mahindra
      & Mahindra
      of India

                    	
                      Design
      and development of a drive system for a
      Hybrid application

                    	 
      
	 
      	
                      Sikor
      of Thailand

                    	
                      Source
      and supply of drive systems for 4 wheel LEV
      and scooter application

                    	 
      

            

          

        

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Schedule
2.2(e)

      Other
Excluded Assets

      

      None.

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Schedule
2.3

      Assumed
Liabilities

      

      
        
          
            
              	 
      	 
      	 
      	
                      Amount/Principal

                    
	
                      1

                    	
                      Jardine
      Capital Corporation

                    	
                      Bridge
      Loan

                    	
                      $187,500.00

                    
	
                      2

                    	
                      Four
      M International

                    	
                      Bridge
      Loan

                    	
                      $62,500.00

                    
	
                      4

                    	
                      ICICI
      Bank Limited

                       

                    	
                      TDC/11391
      Conditional Grant Agreement,
      October 30, 2001

                    	
                      $700,000.00

                    
	
                      5

                    	
                      ICICI
      Bank Limited

                    	
                      TDC/5668
      Foreign Currency Facility Agreement
      , March 3, 2003 in Conditional
      Agreement format

                    	
                      $500,000.00

                    
	
                      6

                    	
                      Electric
      Motion Systems

                    	
                      Promissory
      note dated May 2, 20006

                    	
                      $22,000.00

                    
	
                      7

                    	
                      Electric
      Motion Systems

                    	
                      Promissory note dated May 22,
      2006

                    	
                      $22,000.00

                    
	
                      8

                    	
                      Eric
      Takamura

                    	
                      Promissory
      note

                    	
                      $79,695.00

                    
	
                      9

                    	
                      Eric
      Takamura

                    	
                      Back
      Interest Owed on Promissory Note

                    	
                      $9,850.30

                    
	
                      10

                    	
                      Eric
      Takamura

                    	
                      Back
      Salary equivalent to 44 pay periods

                    	
                      $126,923.08

                    
	 
      	 
      	
                      Federal
      Tax and FICA responsibility of back
      salary

                    	
                      $9,709.62

                    
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                      Total:

                    	
                      $1,720,178.00

                    

            

          

        

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Schedule
2.5

      Credits
From Advanced Amounts

      

      
        
          
            
              
                
                  	
                          DATE

                        	
                          DESCRIPTION

                        	
                          AMOUNT

                        
	 
      	 
      	 
      
	
                          8/18/2006

                        	
                          Operational
      Loan

                        	
                          $3,000.00

                        
	
                          8/25/2006

                        	
                          Operational
      Loan

                        	
                          $2,500.00

                        
	
                          9/8/2006

                        	
                          Operational
      Loan

                        	
                          $28,000.00

                        
	
                          9/11/2006

                        	
                          Operational
      Loan

                        	
                          $8,000.00

                        
	
                          9/22/2006

                        	
                          Operational
      Loan

                        	
                          $35,000.00

                        
	
                          10/2/2006

                        	
                          Operational
      Loan

                        	
                          $9,500.00

                        
	
                          10/3/2006

                        	
                          Operational
      Loan (Directors Acct)

                        	
                          $21,000.00

                        
	
                          10/19/2006

                        	
                          Operational
      Loan

                        	
                          $13,000.00

                        
	
                          11/3/2006

                        	
                          Operational
      Loan

                        	
                          $19,000.00

                        
	
                          11/16/2006

                        	
                          Operational
      Loan

                        	
                          $12,000.00

                        
	
                          12/1/2006

                        	
                          Operational
      Loan

                        	
                          $52,000.00

                        
	
                          12/15/2006

                        	
                          Operational
      Loan

                        	
                          $15,000.00

                        
	
                          12/29/2006

                        	
                          Operational
      Loan

                        	
                          $22,000.00

                        
	
                          1/12/07

                        	
                          Operational
      Loan

                        	
                          $19,000.00

                        
	
                          1/29/07

                        	
                          Operational
      Loan

                        	
                          $14,741.32

                        
	 
      	
                          Sub-Total

                        	
                          $273,741.32

                        

                

              

            

          

        

      

      

       

      

      

      
        
          
            
              
                
                  	
                          CREDIT DUE TO DEPOSITS NGM RECEIVED

                        	 
      	 
      
	 
      	 
      	 
      
	
                          year
      2005

                        	
                          Prairie
      View (SO 677)

                        	
                          $6,300.00

                        
	
                          10/5/2006

                        	
                          Univ.
      of Arizona (SO 727)

                        	
                          $1,850.00

                        
	
                          7/21/2006-8/30/06

                        	
                          Durham
      (Ontario)

                        	
                          $3,525.00

                        
	
                          10/3/2006

                        	
                          Choctaw
      (SO 743)

                        	
                          $12,000.00

                        
	
                          10/3/2006

                        	
                          Choctaw
      (SO 744-756)

                        	
                          $11,880.00

                        
	
                          11/29/2006

                        	
                          Universidad
      Simon Bolivar (SO750)

                        	
                          $3,590.00

                        
	
                          12/1/2006

                        	
                          Stanford
      University

                        	
                          $5,500.00

                        
	
                          12/29/06

                        	
                          Principia
      (SO 751)

                        	
                          $2,800.00

                        
	
                          2/6/07

                        	
                          Turkey
      (SO 754)

                        	
                          $42,610.0

                        
	
                          2/14/07

                        	
                          SC
      U. Twente (SO 756)

                        	
                          $4,992.50

                        
	
                          2/19/07

                        	
                          Principia
      (SO 757)

                        	
                          $6,000.00

                        
	 
      	
                          Choctaw
      (SO 755)

                        	
                          $36.00

                        
	 
      	
                          Sub-Total

                        	
                          $101,083.50

                        

                

              

            

          

        

      

      
 

      
        
          
            
              	CIT
      GUILFORD DRIVE	
                       

                    	
                      $29,067.60

                    

            

          

        

         

      

      
        
          
            	 
      	
                    TOTAL
      CREDIT

                  	
                    $
      403,892.42

                  

          

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Schedule
2.8(a)

      Contracts
Requiring Consent

      

      
        
          
            
              
                	
                        Bajaj
      Auto Ltd of India

                      	
                        Master
      License Agreement for the EMS401-043 Drive System

                         

                      
	
                        Anthony
      D’Andrea

                        Corry
      Davis

                        Anubhav
      Sethi

                        Eric
      Takamura

                        Jeffrey
      Yambor

                      	
                        Employee
      Secrecy, Invention, & Non-Competition Agreements

                         

                      

              

            

          

        

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Schedule
2.8(b)

      Assumed
Contract Obligations

      

      Obligations
of contracts and sales orders listed in Schedule 2.1(f) from the Closing
Date,

      conditioned
upon treating as “advanced amounts” to be credited against payments under the
Note

      any
deposits received.

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Schedule
4.2

      Purchaser’s
Third Party Consents

      

      
        
          
            
              
                	
                        Bajaj
      Auto Ltd of India

                      	
                        Master
      License Agreement for the EMS401-043 Drive System

                         

                      
	
                        Jardine
      Capital Corporation

                      	
                        Bridge
      Loan

                         

                      
	
                        Four
      M International

                      	
                        Bridge
      Loan

                      
	
                        ICICI
      Bank Limited

                      	
                        TDC/11391
      Conditional Grant & TDC/5668 Foreign Currency Facility Agreement

                      
	
                        Electric
      Motion Systems

                      	
                        Promissory
      notes dated May 2, 2006 & May 22, 2006

                         

                      

              

            

          

        

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Exhibit
1.1(e)

      

      ASSIGNMENT
AND ASSUMPTION AGREEMENT

      

      THIS
ASSIGNMENT AND ASSUMPTION Agreement (this “Agreement”)
is made on
this ___ day of August 2007 between New Generation Motors Corporation, a
Delaware corporation
(“Seller”),
and NuGen Mobility Inc., a Delaware corporation (“Purchaser”).

      

      Background

      

      Pursuant
to that certain Asset Purchase Agreement, dated the date of this Agreement,
among Purchaser, and Seller (the “Purchase
Agreement”), among other things, Seller
has agreed to assign and delegate to Purchaser and Purchaser has agreed to
assume certain obligations
of Seller, all as more fully described in Section 2.3 of the
Purchase Agreement and the
related schedules thereto. This Agreement is being executed and delivered in
connection with, and
as a condition to, the consummation of the transactions contemplated by the
Agreement.

      

      IN
CONSIDERATION of the purchase price provided for in the Purchase Agreement
and other good and valuable consideration, the receipt and sufficiency of which
are hereby
acknowledged, and intending to be legally bound, Seller and Purchaser hereby
agree as follows:

      

      
        1.   Certain Defined
Terms. Unless otherwise defined in this Agreement, capitalized
terms used in this Agreement shall have the respective meanings ascribed to such
terms in
the Purchase Agreement.

         

        2.   Assignment and
Delegation. Seller hereby assigns to Purchaser all of Seller’s
right, title and interest in and to the Assumed Liabilities set forth in Section 2.3 of
the Purchase
Agreement and the related schedules thereto and hereby delegates to Purchaser
all of such
Assumed Liabilities, in the manner and to the extent provided in the Purchase
Agreement.

         

        3.   Assumption. Purchaser
hereby accepts the foregoing assignment and delegation
and hereby undertakes, assumes, agrees to perform and otherwise pay, satisfy and
discharge
all of such Assumed Liabilities from and after the date of this Agreement and in
the manner
and to the extent provided in the Purchase Agreement. Purchaser shall, in
assuming the Assumed
Liabilities, be fully subrogated to each and every right of Seller with respect
thereto to the
fullest extent permitted by law. Notwithstanding and without derogation to the
foregoing, Purchaser
does not and will not assume or become obligated to pay or perform any of the
Retained
Liabilities, all of which shall be retained, paid, performed, discharged and
satisfied by Seller.

         

        4.   Survival. Neither the
making nor the acceptance of this Agreement shall restrict,
impair, reduce, expand or otherwise modify the terms of the Purchase Agreement
or constitute
a waiver or release by Seller or Purchaser of any liabilities, duties or
obligations imposed
upon either of them by the terms of the Purchase Agreement including, without
limitation,
the representations and warranties and other provisions thereof.

         

        5.   Governing Law; Jurisdiction
and Venue. This Agreement shall be governed
and construed in accordance with the laws of the Commonwealth of Virginia
notwithstanding
conflict or choice of laws principles of Virginia or any other
jurisdiction.

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
 

      Exhibit
1.1(e)

      

      
        6.   Binding Agreement.
This Agreement shall be binding upon, and shall inure to
the benefit of, the successors and assigns of Purchaser and
Seller.

      

      

      
        7.  Counterparts; Amendment. This
Agreement may be executed in two or more
counterparts, each of which shall constitute an original, but all of which taken
together shall
constitute one and the same instrument. This Agreement cannot be amended without
a writing
signed by each Purchaser and Seller.

      

      

      

      [Signature Page
Follows]

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, each of Purchaser and Seller have caused their respective
duly authorized representatives to execute this Agreement as of the date first
written above.

      

      PURCHASER:

      NuGen
Mobility Inc.

      By:
________________________________

      Name:
Eric Takamura

      Title:
President

      SELLER:

      New
Generation Motors Corporation

      By:
_______________________________

      Name:
_____________________________

      Title:
______________________________

      

      
 

      

      [Signature
Page for Assignment and Assumption Agreement]

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Exhibit
1.1(f)

      

      

      ASSIGNMENT
OF PATENTS

      

      

      THIS
ASSIGNMENT OF PATENTS (the “Assignment”) is made and entered into this
______ day of August 2007, by New Generation Motors Corporation, a Delaware
corporation
(“Assignor”), in favor
of NuGen Mobility, a Delaware corporation (“Assignee”).

       

      WHEREAS,
Assignor owns the United States patents and patent applications identified
and set forth in Exhibit A attached hereto (collectively, the “Patents”),
together with all
foreign counterparts thereto; and

       

      WHEREAS,
pursuant to a certain Asset Purchase Agreement between Assignor and
Assignee, dated as of July 13, 2007, as such agreement may be amended (the
“Agreement”),
Assignor
agreed to assign to Assignee its entire right, title and interest in and to the
Patents.

       

      NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Assignor hereby sells, assigns, transfers and
delivers
to Assignee the entire right, title and interest of Assignor in and to the
Patents.

       

      Assignor
hereby authorizes and requests the United States Commissioner of Patents
and Trademarks to record Assignee as the owner of, and to issue in accordance
with this instrument,
all of the Patents.

       

      This
instrument shall inure to the benefit of Assignee and its successors and
assigns
and shall be binding upon Assignor and its successors and assigns.

       

      IN
WITNESS WHEREOF, Assignor has duly executed this Assignment as of the
date
first above written.

      

      New
Generation Motors Corporation, a Delaware

      corporation

      _____________________________

      Title:
________________________

      
 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      ACKNOWLEDGMENT

      

      STATE OF
_________________)

      :
SS

      COUNTY OF
_______________)

      

      

      

      _______________________,
being duly sworn, says that he is the _______________
of New Generation Motors Corporation, a Delaware corporation, the corporation
which has executed the foregoing instrument, and acknowledges that he did sign
said instrument
on behalf of said corporation and by authority of its Board of Directors, and
that said instrument
is his free act and deed as such officer and the free and corporate act of New
Generation
Motors Corporation.

       

      Sworn to
before me and subscribed in my presence this ____ day of ______, 2007.

      

      NOTARY
PUBLIC: _________________________

      

      

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

       

      EXHIBIT
A

      

      
        
          
            
              	
                      U.S.
      Patent #

                    	
                      Title

                    
	
                      6,348,751
      B1

                    	
                      “Electric
      Motor with active hysteresis-based control of winding currents
      and/or

                      having
      an efficient stator winding arrangement and/or adjustable air
      gap"

                       

                    
	
                      6,137,203

                    	
                      “Electric
      Motor with active hysteresis-based control of winding currents
      and/or

                      having
      an efficient stator winding arrangement and/or adjustable air
      gap"

                    
	
                      6975082
      B2

                    	
                      Variable
      Speed Drive with a synchronous motor"

                    
	
                      PCT
      filing of

                      patent
      above

                    	
                      (PCT
      filed also but no number)

                       

                    
	
                      PCT

                      822/MUM/2003

                    	
                      Compact
      Drive system for Electrically operated road vehicle

                       

                    

            

          

        

      

      

      

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

       

      Exhibit
1.1(i)

      

      BILL
OF SALE

      

      BE IT KNOWN TO ALL BY THESE PRESENTS
that New Generation Motors
Corporation, a Delaware corporation (“Seller”),
pursuant to that certain Asset Purchase Agreement,
dated the date hereof, among NuGen Mobility Inc., a Delaware corporation
(“Purchaser”),
and Seller (the “Agreement”),
and for good and valuable consideration, including,
without limitation, the purchase price described in the Agreement, the receipt
and sufficiency
of which is hereby acknowledged, does hereby sell, transfer, assign and deliver
to Purchaser,
its successors and assigns, to have and to hold forever, and Purchaser does
hereby purchase,
acquire and accept from Seller, all of Seller’s right, title and interest in and
to the Purchased
Assets described in Section 2.1 of the
Agreement and the related schedules thereto in the
manner and to the extent provided in the Agreement. Unless otherwise defined in
this Bill of Sale,
capitalized terms used in this Bill of Sale shall have the respective meanings
ascribed to such
terms in the Agreement.

       

      Neither
the making nor the acceptance of this Bill of Sale shall restrict, impair,
reduce,
expand or otherwise modify the terms of the Agreement or constitute a waiver or
release by Seller
or Purchaser of any liabilities, duties or obligations imposed upon any of them
by the terms of
the Agreement including, without limitation, the representations and warranties
and other
provisions thereof.

       

      This Bill
of Sale is binding on Seller, and its successors and assigns, and will
inure to
the benefit of Purchaser, its successors and assigns, and shall be construed and
enforced in
accordance with the laws of the Commonwealth of Virginia without regard to the
conflict or choice of
laws principles of Virginia or any other jurisdiction.

       

      This Bill
of Sale may be executed in one or more counterparts, each of which shall
constitute an original, but all of which taken together shall constitute one and
the same instrument.
This Bill of Sale cannot be amended without a writing signed by each of
Purchaser and
Seller.

      

      [Signature
Page Follows]

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      IN WITNESS WHEREOF, Seller and Purchaser have
caused their respective duly
authorized representative to execute this Bill of Sale as of the ____ day of
August 2007.

      

      PURCHASER:

      NuGen
Mobility Inc.

      By:
________________________________

      Name:
Eric Takamura

      Title:
President

      SELLER:

      New
Generation Motors Corporation

      By:
_______________________________

      Name:
_____________________________

      Title:
______________________________

      

       

      

      [Signature
Page for Bill of Sale]

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Exhibit
2.5

      

      

      PROMISSORY
NOTE

      

      THIS NOTE
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “ACT”), OR
THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF ANY EFFECTIVE
REGISTRATION STATEMENT UNDER THE ACT OR AN EXEMPTION THEREFROM
UNDER THE ACT, THE RULES AND REGULATIONS THEREUNDER AND
APPLICABLE STATE LAWS.

      

      

      Issue
Date: ___________,
2007                                                                                                           Original
Principal Amount: $1,000,000

      

      FOR VALUE
RECEIVED, NuGen Mobility, a Delaware corporation with its principal place of
business at _______________________________________________ (“Maker”), hereby
promises
to pay to the order of New Generation Motors Corporation, a Delaware corporation
with its executive
offices at 44645 Guilford Drive, Suite 201, Ashburn, Virginia 20147 (“Holder”) (or such
other address
as Holder may specify by written notice to Maker), the principal amount of One
Million Dollars ($1,000,000),
together with simple interest thereon until paid in full at the rate of six
percent (6%) per

      annum.

       

      1.   Payment of Principal and
Interest. Payments of principal plus interest on the unpaid
principal balance of this Promissory Note (the “Note”) outstanding
from time to time shall be payable
in accordance with the following:

      

      
        (a)             Schedule of
Payments. Subject to
Section 1(b), Maker shall make payments
on the Note pursuant to the following schedule:

      

      

      (i)           
Beginning in the second full quarter following the Closing Date, Maker
shall make quarterly payments on the Note, each in an amount equal to the
product of (A) twohundredths (.02) multiplied by (B) the amount equal to
the Gross Revenues earned in such calendar quarter
during the remainder of calendar year 2007;

       

      (ii)           Maker
shall make quarterly payments on the Note, each in an amount
equal to the product of (A) three-hundredths (.03) multiplied by (B) the amount
equal to the Gross Revenues
earned in such calendar quarter during calendar year 2008;

       

      (iii)           
Maker shall make quarterly payments on the Note, each in an amount
equal to the product of (A) four-hundredths (.04) multiplied by (B) the amount
equal to the Gross Revenues
earned in such calendar quarter during calendar year 2009;

       

      (iv)           
Maker shall make quarterly payments on the Note, each in an amount
equal to the product of (A) five-hundredths (.05) multiplied by (B) the amount
equal to the Gross Revenues
earned in such calendar quarter during calendar year 2010;

       

      (v)           
Maker shall make quarterly payments on the Note, each in an amount
equal to the product of (A) six-hundredths (.06) multiplied by (B) the amount
equal to the Gross Revenues
earned in such calendar quarter during calendar year 2011 and subsequent
calendar years thereafter
until the final payment in full of any remaining outstanding principal and
interest under the Note.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        (b)             Minimum Amounts. Notwithstanding
anything to the contrary in Section 1(a),
Maker shall pay a minimum of $7,500 to Holder every quarter during each calendar
year in which payments
to Holder could be required under Section 1(a) of this Note; provided that to
the extent any such amounts
paid pursuant to this Section 1(b) exceed the amount that would otherwise be due
under this Note,
such amounts paid pursuant to this Section 1(b) shall be treated as an advance
against amounts payable
pursuant to Section 1(a) in respect of subsequent calendar
quarters.

         

        (c)             Timing for
Payments. Maker’s payments
under this Note shall be due and
payable on a quarterly basis within forty-five (45) days following the end of
the calendar quarter in which
Maker receives the applicable Gross Proceeds.

      

      

      (d)           Application of
Credits and Payments.

      

      (i)           The
Credits, as that term is defined in the Purchase Agreement, shall be
applied to the Maker’s first payment under this Note and any and all subsequent
payments until such time
as the aggregate amount of the Credits have been credited against payments under
this Note.

       

      (ii)           In
determining the amount of interest payable under the Note, the
amount of principle outstanding to be used in making such determination shall be
reduced by the amount of
any applicable Credits outstanding.

       

      (iii)           Notwithstanding
anything to the contrary in this Section 1, all payments
made pursuant to this Section 1 shall be applied first to earned interest and
second to the outstanding
principal under the Note and, to the extent of any amount of Credits
outstanding, as if no amount of
the Credits shall have been applied to such payments.

      (e)           Prepayment. This Note
may be prepaid at any time, without premium or penalty,
in whole or in part. Any prepayment of principal shall be accompanied by a
payment of earned and
unpaid interest in respect of the principal being prepaid.

       

      (f)           Definition of Gross
Revenues. “Gross Revenues” means the aggregate amount of
(i) all fees and other revenue that Purchaser actually receives from any source
following the Closing
Date, (ii) the then-current fair market value of (x) the Purchased Assets, or
(y) the Business (as a going
concern) or portion thereof sold or otherwise transferred to an Affiliate of
Purchaser and/or Eric Takamura,
and (iii) the proceeds from the sale or other disposition by Purchaser to any
other third party of all or
any portion of (x) the Purchased Assets and/or (y) the Business as a going
concern following the Closing
Date

      

      2.           Default and Acceleration
Provisions.

      

      (a)           Repayment
of all principal and interest under this Note will be accelerated
and shall be immediately due in full at the election of Holder by notice in
writing to Maker in the event
(an “Event of
Default”) Maker shall (i) fail to make any payment due under this note,
which failure
continues for a period of ten (10) days following Holder’ notice thereof, (ii)
apply for or consent to the
appointment of a receiver, trustee or liquidator of Maker or any of its
property, (iii) admit in writing its
general inability to pay its debts as they mature, (iv) make a general
assignment for the benefit of creditors,
(v) commence a voluntary case under the federal bankruptcy laws or file a
petition or answer seeking
reorganization or an arrangement with creditors to take advantage of any other
bankruptcy, reorganization,
insolvency, readjustment of debt, dissolution or liquidation law or statute, or
file an answer
admitting the material allegations of a petition filed against it in any
proceeding under any such law, or
(vi) take corporate action for the purpose of effecting any of the foregoing; or
an order, judgment or decree
shall be entered, without the application, approval or consent of Maker, by any
court of competent
jurisdiction, approving a petition seeking reorganization of Maker or of all or
a substantial part of the
assets of Maker and such order, judgment or decree shall continue unstayed and
in effect for a period of
sixty (60) days.

       

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

       

      (b)           In
the case of any Event of Default, Maker shall pay, on demand, all costs of
enforcement and collection of this Note incurred by Holder, including but not
limited to reasonable
attorneys’ fees, disbursements and court costs. The liability of Maker hereunder
shall be unconditional
and shall not be in any manner affected by and right of setoff of Maker or any
indulgence whatsoever
granted or consented to by Holder, including, without limitation, any extension
of time, renewal,
waiver or other modification.

      

      3.           Rights and Remedies. Upon
the occurrence of an Event of Default and at any time
thereafter, Holder shall have the rights and remedies provided herein and under
applicable law.

       

      4.           Miscellaneous.

      

      (a)           This
Note may not be amended, modified or supplemented without the express
written consent of Holder and Maker. The failure by Holder to exercise any right
hereunder shall not be
construed as a waiver of the right to exercise the same or any other right at
any time and from time to time
thereafter. This Note may not be changed or terminated orally or by estoppel or
waiver or by any alleged
oral modification regardless of any claimed partial performance referable
thereto.

       

      (b)           None
of the obligations of Maker under this Note may be assigned without
the prior written consent of Holder, and any purported assignment made without
such consent shall be
void. The provisions of this Note shall be binding upon and shall inure to the
benefit of the parties
hereto and their respective permitted transferees, successors and assigns (each
of which transferees,
successors and permitted assigns shall be deemed to be a party hereto for all
purposes hereof).

       

      (c)           Maker
hereby waives presentment, notice of dishonor, protest and notice of
protest, and any or all other notices or demands in connection with the
delivery, acceptance, performance,
default, endorsement or guarantee of this Note.

       

      (d)           All
notices, consents, requests, instructions, approvals, demands and other
communications provided for herein shall be validly given, made or served if in
writing and delivered
personally by hand, by a nationally recognized overnight courier service (i.e.,
FedEx or United Parcel
Service), by United States certified or registered first class mail, postage
prepaid with return receipt
requested, or by electronic or facsimile transmission. Each such notice,
consent, request, instruction,
approval, demand or other communication shall be effective if delivered (a)
personally by hand or
by a nationally recognized overnight courier service, when delivered at the
address specified in this
Section 4(d); (b) by United States certified or registered first class mail sent
to the address specified in this
Section 4(d) on the date appearing on the return receipt therefore; or (c) by
electronic or facsimile transmission,
when such electronic or facsimile transmission is transmitted to the electronic
mail address or
facsimile transmission number specified in this Section 4(d) and the appropriate
confirmation is received.
In the event that a party is unable to deliver a notice, consent, request,
instruction, approval, demand,
or other communication due to the inaccuracy of the address or facsimile
transmission number provided
by the other party pursuant to this Section 4(d), or the other party’s failure
to notify the party of a change
of its address or facsimile transmission number as specified pursuant to this
Section 4(d), such notice,
consent, request, instruction, approval, demand, or other communication shall be
deemed to be effective
upon confirmation by a nationally recognized overnight courier service of its
failure to complete delivery
to the other party’s address as set forth in this Section 4(d) (or other address
duly given to the party by
the other party in accordance with this Section 4(d)).

       

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

       

      Addresses
and facsimile transmission numbers for notices (unless and until written notice
is given
of any other address or facsimile transmission number):

      

      If to
Maker, to:

      

      [NuGen
Mobility]

      [Address]

      [Address]

      Attention:
[Eric Takamura]

      Fax: [
________________________________ ]

      Email:
[                                
]

      

      with a
copy to:

      

      Pepper
Hamilton LLP

      600
Fourteenth Street, NW

      Washington,
DC 20005-2004

      Attention:
Steve A. Mandell

      Fax:
(202) 220-1200

      Email:
mandells@pepperlaw.com

      

      If to
Holder, to:

      

      New
Generation Motors Corporation

      c/o
Henry, O'Donnell, Dahnke & Walther, P.C.

      4103
Chain Bridge Road, Suite 100

      Fairfax,
Virginia 22030

      Attention:
Bruce W. Henry

      Fax:
(703) 273-6884

      Email:
bwh@henrylaw.com

      

      (e)           This
Note shall be governed by and construed in accordance with the laws of
the Commonwealth of Virginia applicable to instruments made and to be performed
wholly within
Virginia. If any provision of this Note is held to be illegal or unenforceable
for any reason whatsoever,
such illegality or unenforceability shall not affect the validity of any other
provision hereof.

       

      (f)           IN ANY ACTION, SUIT OR PROCEEDING IN
RESPECT OF OR ARISING
OUT OF THIS NOTE, MAKER WAIVES TRIAL BY JURY AND ANY OBJECTION BASED
ON FORUM NON CONVENIENS OR VENUE.

       

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, Maker has duly executed and delivered this Note as of the
day and
year first above written.

      

      

      NUGEN
MOBILITY

      

      

      By:
_____________________________

      Name:

      Title:

      

      

       

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

       

      Exhibit
2.10(a)

      

      

      NEW
GENERATION MOTORS CORPORATION

      

      Secretary’s
Certificate and Certificate of Incumbency

      

      The
undersigned hereby certifies that he is the duly elected, qualified and acting
Secretary
of New Generation Motors Corporation, a Delaware corporation (the “Company”),
and, on
behalf of the Company (and not in an individual capacity), pursuant to and in
connection with the
Asset Purchase Agreement (the “Agreement”) dated as of July 13, 2007, by and
among the
Company, and NuGen Mobility Inc., a Delaware corporation, further certifies as
follows:

      

      1.           Attached
hereto as Exhibit
A is a true, complete and correct copy of the Certificate
of Incorporation of the Company, as amended to date;

      

      2.           Attached
hereto as Exhibit
B is a long form good standing certificate as of a recent date by
the Secretary of State of Delaware;

      

      3.           Attached
hereto as Exhibit C is a true,
complete and correct copy of the Bylaws of the Company, as in effect on
this date;

      

      4.           Attached
hereto as Exhibit
D-1 is a true and complete copy of all resolutions adopted by the
Board of Directors of the Company authorizing and approving the
execution, delivery and performance of the Agreement and the transactions
contemplated by the Agreement.
Attached hereto as Exhibit D-2 is a true
and complete copy of all resolutions adopted
by the Company’s stockholders authorizing and approving the transactions
contemplated by the
Agreement. Each of the resolutions set forth on Exhibits D-1 and D-2 continue in full
force and
effect at the closing on the Closing Date without modification or
amendment;

       

      5.           Set
forth below are the names and titles of the duly elected, qualified and
acting
officers of the Company who have executed documents on behalf of the Company in
connection
with the Agreement. The signature set forth opposite his or her name is
genuine.

      

      Name                                                      Office                                                      Signature

      

      ____________                    President/CEO/                                                     ______________________

      Secretary/Treasurer

      

      Capitalized
terms not defined herein shall have the meanings ascribed to them in the
Agreement.

      

      IN
WITNESS WHEREOF, the undersigned has executed this Secretary’s Certificate
and Certificate of Incumbency this ____ day of August, 2007.

      

      __________________________________________

      ____________,
Secretary

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Exhibit
2.10(a)

      

      Exhibit
A

      

      Certificate
of Incorporation

      

      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Exhibit
2.10(a)

      Exhibit
B

      

      Certificate
of Good Standing

      

      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Exhibit
2.10(a)

      

      Exhibit
C

      

      ByLaws

      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Exhibit
2.10(a)

      

      Exhibit
D-1

      

      Resolutions
of the Board of Directors

      

      
 

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Exhibit
2.10(a)

      

      Exhibit
D-2

      

      Resolutions
of the Stockholders

      

       

      

      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Exhibit
2.11(c)

      

      NUGEN
MOBILITY INC.

      

      Secretary’s
Certificate and Certificate of Incumbency

      

      The
undersigned hereby certifies that he is the duly elected, qualified and acting
Secretary
of NuGen Mobility Inc., a Delaware corporation (the “Company”), and, on behalf
of the
Company (and not in an individual capacity), pursuant to and in connection with
the Asset Purchase
Agreement (the “Agreement”) dated as of July 13, 2007, by and among the Company,
and New
Generation Motors Corporation, a Delaware corporation, further certifies as
follows:

      

      1.           Attached
hereto as Exhibit
A is a true, complete and correct copy of the Certificate
of Incorporation of the Company, as amended to date;

       

      2.   Attached
hereto as Exhibit
B is a long form good standing certificate as of a recent
date by the Secretary of State of Delaware;

       

      3.           Attached
hereto as Exhibit
C is a true, complete and correct copy of the Bylaws of the Company,
as in effect on this date;

       

      4.           Attached
hereto as Exhibit
D-1 is a true and complete copy of all resolutions adopted by the
Board of Directors of the Company authorizing and approving the
execution, delivery and performance of the Agreement and the transactions
contemplated by the Agreement.
Each of the resolutions set forth on Exhibit D-1 continue
in full force and effect at the
closing on the Closing Date without modification or amendment;

       

      5. Set
forth below are the names and titles of the duly elected, qualified and
acting
officers of the Company who have executed documents on behalf of the Company in
connection
with the Agreement. The signature set forth opposite his or her name is
genuine.

      

      Name                                                      Office                                                      Signature

      

      Eric
Takamura                       President/CEO/                                                     ______________________

      Secretary/Treasurer

      

      Capitalized
terms not defined herein shall have the meanings ascribed to them in the
Agreement.

      

      IN
WITNESS WHEREOF, the undersigned has executed this Secretary’s Certificate
and Certificate of Incumbency this ____ day of August, 2007.

      

      __________________________________________

      Eric
Takamura, Secretary

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Exhibit
2.11(c)

      

      Exhibit
A

      

      Certificate
of Incorporation

      

      

      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Exhibit
2.11(c)

      

      Exhibit
B

      

      Certificate
of Good Standing

      

      

      

      

      

      
 

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      Exhibit
2.11(c)

      

      Exhibit
C

      

      ByLaws

      

      

      

      

       

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Exhibit
2.11(c)

      

      Exhibit
D-1

      

      Resolutions
of the Board of Directors

      

      

      

      

      

      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Exhibit
2.11(c)

      

      

      

      

      
 

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Exhibit
2.11(e)

      

      CERTIFICATE

      

      THIS
CERTIFICATE is made by the undersigned as of the ____ day of August, 2007,
and
recites and provides the following:'

      

      Recitals

      

      
        A.   The
undersigned is the former Chief Operating Officer of New Generation Motors
Corporation
("NGMC"), having served in such position during the period June 2004 to February
27, 2007.
The undersigned also is the principal stockholder and an officer and director of
NuGen Mobility
("NuGen").

      

      

      
        B.   NGMC
and NuGen are parties to an Asset Purchase Agreement, dated as of July 13,
2007 (the "APA").

      

      

      
        C.   It
is a condition to the obligations of NGMC under the APA that the undersigned
make the
representation and warranties set forth in this Certificate, and the undersigned
understand
that NGMC and its Board of Directors are relying on such representations and
warranties
as a material inducement to NGMC's entering into and performing its obligations
under the
APA.

      

      

      NOW,
THEREFORE, in consideration of these premises and as a material inducement to
NGMC's
entering into and performing its obligations under the APA, the undersigned
hereby makes the
following representations and warranties:

      

      
        1.   To
the best of the undersigned's knowledge, information and belief, the Financial
Statements,
as defined in the APA are true, correct, and complete in all material respects
and fairly
present, in all material respects, the financial condition and results of NGMC's
operations

      

      for the
applicable periods to which such Financial Statements relate.

      

      
        2.   The
proceeds of each "Operational Loan" listed on Schedule 2.5 of the APA were
advanced
to NGMC and, so far as the undersigned is aware, used solely to pay and/or fund
NBMC
liabilities or business operations.

      

      

      
        3.   The
undersigned has disclosed to the NGMC's Board of Directors to the thencurrent
chairman
of NGM’s Board all material business opportunities that have come to the
attention
of the undersigned during the time the undersigned was an employee of
NGMC.

      

      

      IN
WITNESS WHEREOF, the undersigned has executed and delivered this Certificate as
of the
day and year first above written.

      

      _________________________[Seal]

      Erik
TakamuraTechnical
Assistance Agreement
for

    

     

    Light
Transport Vehicle Electric Drive System

    

    Mahindra
& Mahindra Ltd., India

    

    And

    

    NuGen
Mobility Inc., USA

    

    Phase II
& III     $726,352.00

    

    
      	
              Date:

            	
              June
      09, 2009

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    This
Agreement has been made and entered into on the Ninth day of
June  2009  by and between  Mahindra &
Mahindra Ltd., a company incorporated under the Indian Companies Act, 1913,
Gateway Building,  Apollo Bunder,  Mumbai 400 001,
India

    

    (hereinafter
referred to as “M&M”, which expression shall unless it be repugnant to the
context or meaning thereof shall mean and include its successors and assigns) Of
the One Part

    

    and  NuGen
Mobility Inc., a company incorporated under the laws of Delaware in the U.S.A
having its registered office at 44645 Guilford Drive, Suite 201, Ashburn
Virginia 20147, U.S.A

    

    (hereinafter
referred to as “NuGen”, which expression shall unless it be repugnant to the
context or meaning thereof shall mean and include its successors and assigns) of
the Other Part

    

    (M&M
and NuGen  are individually referred to as Party and collectively
referred to as Parties)

    

    WHEREAS

     

    
      	
              1

            	
              M&M
      is a manufacturer and seller, inter alia, of utility vehicles and parts
      and accessories thereof;

            

    

     

    
      	
              2

            	
              NuGen
      is a service provider company which provides technical services including
      engineering in the area of electric drive and  drive systems
      components;

            

    

     

    
      	
              3

            	
              By
      an agreement dated 8th
      January 2008 M&M has appointed NuGen for the purpose of developing a
      drive system for a 4-wheel Light Transport Vehicle (LTV) platform that
      will be converted to an all Electric drive train for evaluation purposes
      (Project) as per the details  mdentioned therein
    ;

            

    

     

    
      	
              4

            	
              Under
      the said agreement dated 8th
      January 2008 NuGen has completed the Phase I of the Project and the
      Parties are desirous of carrying out Phase II and III of the Project and
      for that purpose wish to enter into this
  agreement;

            

    

     

    
      	
              5

            	
              The
      Parties have thought it expedient to put forth in writing the terms and
      conditions on which NuGen shall provide the services to M&M for Phase
      II and II of the Project, as hereinafter
  appearing.

            

    

     

    
      	
              6

            	
              This
      Agreement outlines the relationship and understanding of the
      Project.

            

    

     

    NOW
IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:

     

    
      	
              1

            	
              Object

            

    

     

    The
object of the Agreement is for NuGen is to carry out the services for the Phase
II and III of the Project and to support and develop a drive system for a
4-wheel Light Transport Vehicle (LTV) platform  that will be converted
to an all Electric drive train for evaluation purposes (Project) as per the
Proposal Annexed hereto as Annexure I.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
              2

            	
              Scope
      of this Agreement  

            

    

    

    
      	
               
      

            	
              2.1

            	
              The integration of a drive
      system into a vehicle are to be carried out in three phases as
      follows:

            

    

    

    
      	
               
      

            	
              2.1.1

            	
              Phase
      I : System Verification and Design.

            

    

    

    
      	
               
      

            	
              During
      this Phase a case study will be carried out whereby the initial
      requirements, architecture and prototype design of required components
      will be developed for the target platform and results typically in a
      prototype vehicle(s).

            

    

    

    
      	
               
      

            	
              Work
      contemplated under this Phase I has already completed and the Parties now
      wish to carry out the work under Phase II and III as hereinafter
      appearing

            

    

    

    
      	
               
      

            	
              2.1.2

            	
              Phase
      II: Validation.

            

    

    

    
      	
               
      

            	
              During
      this phase further evaluation of the platform by practical testing and
      measurements of performance to ensure that the initial assumptions prove
      to be valid to meet the needs of the
product.

            

    

    

    
      	
               
      

            	
              2.1.3

            	
              Phase
      III:  Production
    readiness.    

            

    

    

    
      	
               
      

            	
              After
      the validation, in this phase, the product will be ready to enter into
      production

            

    

    

    This Agreement covers Phase II and
Phase III of the project.

    

    
      	
               
      

            	
              2.2

            	
              Deliverables

            

    

    

    The
following lists of tasks of development will be covered by NuGen during Phase II
and III.   A detailed list of tasks and responsibilities
associated with these phases is given in the RASIC chart (Appendix I)

    

    
      	
               
      

            	
              2.2.1

            	
              Integration:
      On-site support at M&M’s facilities for initial integration and
      testing of Infield Service
Prototypes.

            

    

    

    
      	
               
      

            	
              2.2.2

            	
              Validation
      of performance:  Testing and validation of platform performance
      to compare against original expectations and analysis that was utilized to
      determine requirements of various
components.

            

    

    

    
      	
               
      

            	
              2.2.3

            	
              Training:  Training
      for M&M personnel.  The Training will consist of basic
      operation and understanding of the
system.

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              2.2.4

            	
              Continued
      Support: NuGen will assist and help analyze any data accumulated through
      the testing and validation period and provide recommendations of “Next
      Step”

            

    

    

    
      	
               
      

            	
              2.2.5

            	
              Support
      M&M efforts to meet CMVR certification of the vehicle and continued
      platform testing.

            

    

    

    
      	
               
      

            	
              2.2.6

            	
              Iterate/Modification
      of design for general form, fit and
function.

            

    

    

    
      	
               
      

            	
              2.2.7

            	
              Cost
      Reduction:  do a full design for manufacturing (DFM) and design
      for assembly (DFA) analysis bringing the cost of the product down too
      desired targets in production.

            

    

    

    
      	
               
      

            	
              2.2.8

            	
              Costed
      BOM:  Assessment of alternative parts, methods and minor design
      modifications without altering determined requirements will be performed
      to minimize the BOM count and cost of the DTS drive
  train.

            

    

    
      	
               
      

            	
              2.2.9

            	
              Creation
      of Production documentation:  This would include BOMs, Testing
      and QC metrics and processes for this specific
  product.

            

    

    

    
      	
               
      

            	
              2.2.10

            	
              Manufacturing
      and assembly of approximately ten (10) systems to validate various
      iterations and changes to the products through this phase.  It
      is anticipated that a minimum of five (5) of these units will be able to
      be provided to M&M for integration and testing on the targeted
      platform.

            

    

    

    
      	
            	
              2.2.11

            	
              Final
      testing and qualification of said
units

            

    

    

    
      	
               
      

            	
              2.3

            	
              Production Systems
      Verification

            

    

    

    
      	
               
      

            	
              2.3.1

            	
              To
      complete and verify the DFM/DFA process there will be three stages whereby
      systems will be manufactured and assembled in stages, to be delivered and
      utilized for further testing, integration and deployment
      purposes.

            

    

    

    
      	
               
      

            	
              2.3.2

            	
              Validation
      Prototype (VP):  25 units will be manufactured and assembled
      based on the results of the DFM/DFA process.  The units will
      predominantly be assembled at NuGens facility in the USA.  To
      meet the target cost per unit for this state it is expected that most of
      the part content will be provided from selected sources in India and China
      utilizing tooling and targeted sources for
  production.

            

    

    

    
      	
               
      

            	
              2.3.3

            	
              Production
      Proveout (PP):  25 units will be manufactured and assembled
      based on the results of the DFM/DFA process.  To meet the target
      costs per unit for this state and to verify the tooling and process to
      proceed into JOB1 phase, the units are intended to be fully assembled
      outside USA and validated by NuGen.  It is expected that all
      tooling will be in place for this
stage.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              2.3.4

            	
              Production
      (JOB1):  At least 100 units a month for a period of one (1) year
      will be provided to M&M by NUGEN for further market testing and
      evaluation.  All costs are based on a yearly projections of 1200
      units

            

    

    

    
      	
               
      

            	
              2.3.5

            	
              The
      above tasks to acquire completed systems are considered as part of this
      engagement.  Due to the complexity, timing, potential variation
      of costs specific details will be decided at a later
  date.

            

    

    

    
      	
               
      

            	
              2.3.6

            	
              However,
      in order to meet the target dates of the program the decisions must be
      taken by the following prescribed
dates;

            

    

     

    
      
        
          	
                  For
      VP & PP systems:  

                	
                  September
      2009

                	
                  
                    (corrp.
      with RASIC Line 72)

                  

                
	 
      	 
      	 
      
	
                  For
      JOB1 systems:

                	
                  January
      2010

                	
                  (corrp.
      with RASIC
Line  83)

                

        

      

    

     

    As a
guide line the present anticipated costs for the systems and timing of the
expense are;

    

    
      
        
          
            
              
                	
                        Production Systems

                      	 	
                        Cost/ea.

                      	 	 	
                        Tooling

                      	 	
                        Time

                      	 
	 
      	 	 	 	 	 	 	 
      	 
	
                        25
      VP units

                      	 	$	3,043	 	 	$	85,950	 	
                        Sept-Jan
      2009

                      	 
	 
      	 	 	 	 	 	 	 	 	 
      	 
	
                        25
      PP units

                      	 	$	1,138	 	 	$	56,750	 	
                        Jan-Mar
      2010

                      	 
	 
      	 	 	 	 	 	 	 	 	 
      	 
	
                        JOB1

                      	 	$	875	 	 	$	14,270	 	
                        June
      2010-11

                      	 

              

            

          

        

      

    

    

    Greater
detail and explanation of the projected costs can be found in Appendix II

    

    
      	
               
      

            	
              2.4

            	
              Only
      the deliverables that have been specifically stated above will be deemed
      as “Required”.  Should there be any deliverables that are
      missing and or desired, M&M should verify or communicate this with
      NuGen.

            

    

    

    
      	
               
      

            	
              2.5

            	
              If
      any additional technical assistance is required for final integration and
      or general application use and set-up beyond what has been stated in 2.1,
      NuGen will make its services available to M&M. NuGen will provide
      these services above and beyond those specified in the proposal using
      section 5.5.8 as reference.

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	
              3

            	
              Time
      Lines

            

    

     

    
      	
               
      

            	
              3.1

            	
              The
      Phase II and III will extend over a nine (9) month
  period.

            

    

    

    
      	
               
      

            	
              3.2

            	
              However
      the Parties may mutually discuss and decide shorter timelines. In that
      event adjustments and corrections if any, in costs will be made to cover
      the additional expenses due to such shorter time
  lines.

            

    

    
      	
               

            	
              
                3.3

              

            	
               

            

    

     

    
      	
              4

            	
              Price
      & Payments

            

    

     

    
      	
               
      

            	
              4.1

            	
              Fee

            

    

    

    
      	
               
      

            	
              4.1.1

            	
              Any
      pricing marked as budgetary or preliminary is to be considered estimates
      and is not a firm quotation.

            

    

    

    
      	
               
      

            	
              4.1.2

            	
              All
      prices as shown are in Net US $ and are based on a one time purchase cost
      with no guarantee or commitment for any further work or development from
      both parties involved.

            

    

    

    
      	
               
      

            	
              4.1.3

            	
              Should
      there be interest for further commitment or guarantees, Parties will
      mutually discuss and arrive at a decision in respect of the
      same.

            

    

    

    
      	
               
      

            	
              4.1.4

            	
              Prices
      and delivery of components are F.O.B. NuGen Mobility Inc. in Ashburn,
      Virginia and do not account for any custom duties, shipping costs and any
      applicable sales tax locally. These additional costs will be the
      responsibility of M&M.

            

    

    

    
      	
               
      

            	
              4.2

            	
              Fixed Cost: Phase II and
  III

            

    

    

    
      
        
          	
                  
                    Pricing

                  

                	 	
                  
                    $/Line

                  

                	 
	
                  NRE
      – Costs to Company (Labor)

                	 	$	567,152	 
	
                  Development
      (DFM/DFA) Support Expenses

                	 	$	120,000	 
	
                  Total

                	 	$	687,152	 
	 
      	 	 	 	 
	
                  Anticipated/Budgetary
      Travel Related Expenses**

                	 	$	39,200	 

        

      

    

    

    
      	
               
      

            	
              4.2.1

            	
              Lead
      Time is assumed to be 9 months upon receipt of order and required
      deposit.  Some variations in schedules may apply due to other
      requirements and / or timing and availability of M&M’s resources to
      complete the required tasks

            

    

    

    
      	
               
      

            	
              4.2.2

            	
              *
      To complete and verify the DFM/DFA process, upto ten DTS systems will be
      manufactured and assembled in stages, and atleast five will be delivered
      and utilized for further testing, integration and deployment
      purposes.

            

    

    

    
      	
               
      

            	
              4.2.3

            	
              **
      Travel by NuGen personnel to and fro Washington, DC, to India will be
      billed at actuals and are to be reimbursed to NuGen net US
      Dollars

            

    

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              4.2.4

            	
              To
      keep travel expenses low, it is assumed that NuGen will have access to
      M&M’s guest house facilities and any local road travel will be
      provided and picked up by M&M.  All other travel related
      expenses to and from M&M’s facilities, external of the Mumbai / Nasik
      area, will be the responsibility of NuGen unless specifically requested
      and approved by M&M ahead of
time.

            

    

    

    
      	
               
      

            	
              4.3

            	
              Purchase Order
      requirements

            

    

    A firm
purchase order (PO) will be issued to NuGen for the deliverables listed above.
The proposed contract is a FIXED COST contract net to NuGen after applicable
Indian taxes and could be stated as such in one line item.

    

    
      	
               
      

            	
              4.4

            	
              Payment
      Schedule

            

    

    

    
      	
               
      

            	
              4.4.1

            	
              The
      Payment schedule given below has been tagged to anticipate dates and
      associated deliverables based on the discussions and assuming
      commencements on time.

            

    

    

    
      	
               
      

            	
              4.4.2

            	
              In
      the event commencement of the project does not begin as assumed, the dates
      as proposed will be modify
accordingly.

            

    

    

    
      	
               
      

            	
              4.4.3

            	
              Upon
      completion of the each milestone NuGen will invoice M&M and it is
      expected that payment will be made using “Net 15
  terms”

            

    

    

    
      
        
          
            
              
                
                  
                    	
                            Sr.

                            No

                          	 	
                            Description

                          	 	
                            Anticipated

                            Date

                          	 	
                            Amount

                            (USD Net)

                          	 	 	
                            Expected

                            Activity

                            (appx.

                            RASIC line)

                          	 
	
                            1

                          	 	
                            ARO
      (35%)

                          	 	
                            08
      JUNE09

                          	 	$	240,503	 	 	 	6	 
	
                            2

                          	 	
                            Installment
      2 (30%)

                          	 	
                            09JULY09

                          	 	$	206,146	 	 	 	58	 
	
                            3

                          	 	
                            Installment
      3 (15%)

                          	 	
                            10
      SEPT09

                          	 	$	103,703	 	 	 	72	 
	
                            4

                          	 	
                            Installment
      4 (10%)

                          	 	
                            05
      NOV09

                          	 	$	68,715	 	 	 	83	 
	
                            5

                          	 	
                            Final
      Payment (10%)

                          	 	
                            07
      JAN10

                          	 	$	68,715	 	 	 	105	 

                  

                

              

            

          

        

      

    

    

    *Dates:  The
dates reflected above are the dates as to when NUGEN must receive funds within
its account

    ** Expected Activity represents the
activity that should be substantially completed or significant effort to be
applied by said date

    

    
      	
               
      

            	
              4.5

            	
              The
      decisions and time lines associated with the Project may vary depending on
      internal schedules and feedback of M&M and NuGen.  The dates
      stated above are the best “assumed” dates and should not be construed as
      absolute.

            

    

    

    
      	
               
      

            	
              4.6

            	
              In
      the event that a payment date has elapsed more than 30 days of the
      expected date, payment for that Deliverable should be considered due and
      paid accordingly within Net 15 terms, based on the assumption that NuGen
      has not shown any gross negligence or fraud, and has actively pursue all
      reasonable commercial efforts to meet the required dates and
      Deliverables.

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              4.7

            	
              M&M
      at its cost will visit NuGen at its facilities in Virginia, USA for
      purposes of discussions, training, design iteration and testing of the
      DTS

            

    

    

    
      	
               
      

            	
              4.8

            	
              Additional
      Services that are requested and mutually agreed upon between NuGen and
      M&M that are directly related to this Phase of the Project as defined,
      but not covered under this Statement of Work, can be provided utilizing
      the following guidelines;

            

    

    

    
      	
            	
              4.8.1

            	
              US
      $ 600 NET per man day

            

    

    

    
      	
               
      

            	
              4.8.2

            	
              Any
      external expense incurred by NGM for such as but not limited to any
      approved travel, lodging, materials and external services will be
      remunerated at a TOTAL NET equivalent to the direct cost plus 10% for
      handling and processing.

            

    

    

    
      	
               
      

            	
              4.9

            	
              Completion
      of project is defined as delivery of all physical DTS units, documents as
      per the RASIC,

            

    

    

    
      	
               
      

            	
              4.10

            	
              Payments
      can be made via wire transfer to:

            

    

    

    
      
        	
                Bank:

              	
                Citibank,
      NA

              
	
                Local
      Branch:

              	
                Capitol
      Hill, BR# 913

              
	
                Local
      Address:

              	
                600
      Pennsylvania Ave. SE, Washington, DC, 20003 USA

              
	
                Via
      New York

              	
                (if
      necessary for international wires)

              
	
                Account:

              	
                NuGen
      Mobility

              
	
                Local
      Routing No.:

              	
                2540
      -70116

              
	
                Account
      No.:

              	
                1532
      - 0065

              
	
                Routing:

              	
                0210-00089

              
	
                SWIFT
      Code:

              	
                CITIUS33

              

      

    

     

    
      	
              5

            	
              Intellectual
      Property Rights

            

    

    

    
      	
               
      

            	
              5.1

            	
              Any
      existing ideas, know-how and patents (and applications thereof) owned by
      the Parties, prior to this Project,  not resulting from Project
      work carried out under this Agreement, but introduced into the Project,
      shall remain each Party’s exclusive
property.

            

    

    

    
      	
               
      

            	
              5.2

            	
              Any
      new ideas, know-how and inventions made by NuGen’s employees specifically
      as a result of the Project work carried out under this Agreement shall be
      the joint property of both Parties.  The Parties shall enter
      into a separate agreement for sharing these joint intellectual property
      rights which may be generated pursuant to such inventions, development
      carried out by the NuGen’s employees under the Project under this
      Agreement.

            

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              5.3

            	
              Any
      ideas, know-how and inventions made by M&M’s employees as a result
      of   the Project work carried out under this Agreement
      shall be M&M’s exclusive
  property.  

            

    

    

    
      	
               
      

            	
              5.4

            	
              Any
      drawings and technical documents relating to the Project in any manner
      submitted by one Party to the other, prior or subsequent to the conclusion
      of this Agreement, shall remain the exclusive property of the submitting
      Party and shall be treated as confidential information by the receiving
      Party, and may be utilised only for Project work performed pursuant to
      this Agreement.

            

    

    
      

    

     

    
      	
              6

            	
              Third
      Party Patents, Trademarks,
Copyright

            

    

     

    
      	
               
      

            	
              6.1

            	
              Nugen
      shall use best efforts to ensure that design features and
      products    designed and developed pursuant to this
      Agreement will not infringe any intellectual property rights of third
      parties. For this purpose NuGen shall conduct  patent
      searches.  

            

    

    

    
      	
               
      

            	
              6.2

            	
              In
      the event a design feature or the normal intended use of a product leads
      to a claim alleging infringement of a third party's intellectual property
      right, M&M shall give NuGen  immediate notice in writing of
      any such claim. NuGen shall assist M&M in the defence of any such
      claims. If the use of a design feature or a product is permanently
      enjoined by reason of an infringement of a valid third party’s
      intellectual property right, NuGen will use its best
    efforts

            

    

    

    
      	
               
      

            	
              6.2.1

            	
              to
      modify the design feature or the product to render it non infringing,
      or

            

    

    

    
      	
               
      

            	
              6.2.2

            	
              to
      get a licence from the third party who is the owner of the intellectual
      property right.

            

    

     

    
      	
              7

            	
              Warranty

            

    

     

    
      	
               
      

            	
              7.1

            	
              NuGen
      warrants that it will execute the Project in a professional and competent
      manner according to state of the art. The Project and Deliverables to be
      supplied pursuant to this Agreement will be in compliant with Indian laws
      and standard practice in the electric drive system and vehicle industry,
      standards, and regulations as well as with those regulations in countries
      pertinent to M&M’s purposes to the extent they have been communicated
      in writing to and accepted by
NuGen.

            

    

    

    
      	
               
      

            	
              7.2

            	
              The
      Documentation rendered pursuant to this Agreement will be according to the
      existing general practice for comparable development projects in the
      electric drive system and vehicle
  industry.  

            

    

    

    
      	
               
      

            	
              7.3

            	
              M&M
      shall examine Project work and the Deliverables provided under
      this      Agreement upon receipt and shall
      notify NuGen in writing of any defect within reasonable delay but not more
      than 15 (fifteen) working days.

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	
              8

            	
              Liability

            

    

     

    
      	
               
      

            	
              8.1

            	
              NuGen
      shall be liable for damages only if it is held responsible for intent or
      gross negligence. Any liability for indirect and/or consequential damages,
      including loss of property or profit, is specifically disclaimed. Unless
      claims are made in writing within 6 (six) months from the date of
      occurrence of the damage, but not later than two years from the date of
      delivery, they  shall be
forfeited.

            

    

     

    
      	
              9

            	
              Confidentiality

            

    

     

    
      	
               
      

            	
              9.1

            	
              The Parties are
      obliged

            

    

    

    
      	
               
      

            	
              9.1.1

            	
              not
      to disclose the nature, extent and objective of this Agreement to any
      other   party,

            

    

    

    
      	
               
      

            	
              9.1.2

            	
              to
      keep all technical and other information (such as business secrets etc.)
      received from the other Party under this Agreement strictly
      confidential,

            

    

    

    
      	
               
      

            	
              9.1.3

            	
              not
      to disclose or convey any such confidential information to any third party
      without the prior written consent of the  disclosing
      Party.

            

    

    

    
      	
               
      

            	
              9.2

            	
              The
      confidentiality obligations under this Article shall not apply to
      information which

            

    

    

    
      	
               
      

            	
              9.2.1

            	
              was
      already in possession of one Party and not presently subject to an
      obligation of confidentiality prior to its receipt from the other Party;
      or

            

    

    

    
      	
               
      

            	
              9.2.2

            	
              becomes
      available to the general public through no fault of either Party;
      or

            

    

    

    
      	
               
      

            	
              9.2.3

            	
              is
      rightfully disclosed to either M&M or NuGen by a third party without a
      present obligation of confidentiality;
or

            

    

    

    
      	
               
      

            	
              9.2.4

            	
              is
      explicitly approved for release by prior written authorisation of M&M
      and NuGen.

            

    

    

    
      	
               
      

            	
              9.2.5

            	
              The
      confidentiality obligations under this clause shall not be affected by the
      termination of this Agreement and shall continue in full force and effect
      for a period of 3 (three) years after termination of this
      Agreement.

            

    

    

    
      	
               
      

            	
              9.3

            	
              In
      addition a Non-Disclosure Agreement will have to be signed and ratified
      between NuGen and M&M so all variations and possibilities of
      incorporating newer technology may be shared openly with M&M. A copy
      of NuGen’s standard NDA has been included as an attachment in Appendix
      IV

            

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	
              10

            	
              Force
      Majeure

            

    

     

    
      
        	
              	
                10.1

              	
                Should
      circumstances such as fire, flood, earthquake, military actions, trade
      embargo, etc. (force majeure) occur which are beyond the control of either
      contracting Party preventing fulfilment of their obligations of this
      Agreement, the time stipulated for the fulfilment of such obligations
      shall be postponed for the period equal to that during which the
      circumstances of force majeure
last.

              

      

    

    

    
      
        	
              	
                10.2

              	
                If
      circumstances of force majeure, as defined above, occur at an appointed
      Supplier on whom NuGen or M&M is dependent for the fulfilment of the
      Project this will also constitute force majeure conditions for NuGen or
      M&M.

              

      

    

    

    
      	
               
      

            	
              10.3

            	
              These
      obligations are subject to immediate fulfilment after the cessation of the
      circumstances of force majeure.

            

    

    

    
      
        	
              	
                10.4

              	
                A
      certificate issued by a Chamber of Commerce or another authority of
      competence of the respective country confirming the existence and
      cessation of the circumstances of force majeure will serve as proof to
      that effect.

              

      

    

    

    
      	
               
      

            	
              10.5

            	
              Should
      the circumstances of force majeure continue for more than six months,
      either Party may terminate this Agreement by giving written notice by
      registered letter to the other Party.  Such termination will
      take effect 30 days from the receipt of the
  notice.

            

    

     

    
      	
              11

            	
              Solvency,
      Liability and Complete Performance

            

    

     

    
      
        	
                 
      11.1

              	
                In
      case of any eventuality leading to cessation of activity at NuGen (for
      reasons including but not limited to bankruptcy), M&M will have the
      right to enforce NuGen and Eric Takamura jointly and individually for
      complete performance of the deliverables as defined under this contract at
      the same terms and conditions(including cost and timelines) mentioned in
      the contract.

              

      

    

    

    
      	
               
      11.2

            	
              NuGen
      will release its employees from their non-compete clause to complete
      the
      deliveries defined  and stated under this contract without any
      restrictions whatsoever.

            

    

    

    
      	
               
      11.3

            	
              In  the
      above situation,
      all  the  performances  of  parts  there
      of  which have already been fulfilled by NuGen according to the
      deliverables of the contract till  the  date of filing
      of the bankruptcy shall be settled and paid according to the
      contractual provision. 

            

    

     

    
      	
              12

            	
              Premature
      Termination of the Agreement

            

    

     

    
      	
               
      

            	
              12.1

            	
              Either
      Party may immediately terminate this Agreement by giving written notice by
      registered letter to the other Party if any of the following
      occurs:

            

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              12.1.1

            	
              bankruptcy
      proceeding is instituted against either Party's assets, or such proceeding
      is not instituted because of insufficient
  assets;

            

    

    
      	
               
      

            	
              12.1.2

            	
              such
      other Party materially breaches this Agreement and fails to remedy such
      breach within 60 days after written notice is
  given.

            

    

    

    
      	
               
      

            	
              12.2

            	
              In
      addition to the circumstances set forth in Clause 11.1 M&M may
      terminate this Agreement at any time by giving NuGen 30 Days prior written
      notice by registered letter and remittance of any outstanding invoices or
      expenses incurred as a result of the project till the date of receiving
      notice by NuGen

            

    

     

    
      	
              13

            	
              Assignment
      and Subcontracting

            

    

     

    
      	
               
      

            	
              13.1

            	
              Neither
      M&M nor NuGen shall assign or transfer to a third party any of its
      rights or obligations under this Agreement, neither in whole nor in
      part.  

            

    

    

    
      	
               
      

            	
              13.2

            	
              The
      Parties may employ subcontractors to such an extent that enables them to
      carry out their obligations under this Agreement and only for those parts
      of work which are customarily performed by the Parties’ respective
      subcontractors within similar
projects.

            

    

     

    
      	
              14

            	
              Applicable
      Law and Arbitration

            

    

     

    
      	
               
      

            	
              14.1

            	
              This
      Agreement shall be construed and interpreted according to the Indian
      Law

            

    

    

    
      	
               
      

            	
              14.2

            	
              All
      disputes arising out of or in connection with this Agreement shall be
      submitted to arbitration in under the (Indian) Arbitration and
      Conciliation Act 1996. The arbitration decision shall be final and binding
      on the Parties without further recourse to courts of ordinary
      jurisdiction. The venue of arbitration shall be Mumbai, India. The
      arbitration procedure shall be in
English.

            

    

     

    
      	
              15

            	
              Notices
      

            

    

     

    
      	
               
      

            	
              15.1

            	
              Any
      notice or other information required or authorized by this Agreement to be
      given by either Party to other may be given by hand or sent by registered
      post A.D. by courier or by facsimile transmission or comparable means of
      communication, to the other Party at the following
  address:

            

    

    

    
      	
              To

            	
              M&M

            

    

    
      	
               
      

            	
              Mahindra
      & Mahindra Ltd

            

    

    
      	
               

            	
              Automotive
      Sector

            

    

    
      	
               
      

            	
              Akurli
      Rd.,

            

    

    
      	
               
      

            	
              Mumbai
      400101, INDIA

            

    

    
      	
               
      

            	
              Attention:
      Mr. Rajan Wadhera

            

    

    
      	
               
      

            	
              Chief
      of Engineering & Development

            

    

    

    
      	
            	
              e-mail:

            	
              wadhera.rajan@mahindra.com

            

    

    
      	
            	
              Fax:

            	
              (022)
      28864211

            

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    To
Nu Gen

    

    Eric
Takamura

    NuGen
Mobility Inc

    44645
Guilford Drive, Suite 201

    Ashburn,
Virginia 20147, USA

    

    e-mail:
eric.takamura@ngmcorp.com

    Fax:
703-858-0699

    

    
      
        	
              	
                15.2

              	
                Any
      notice or other information given by post or courier shall be deemed to
      have been given on the tenth (10th) day after the envelope containing the
      same was so posted, or on the fifth (5th) day after the envelope
      containing the same was so sent by courier, and proof that the envelope
      containing any such notice or information was properly addressed,
      registered and posted or sent by courier and that it has not been so
      returned to the sender, shall be sufficient evidence that such notice or
      information has been duly
given.

              

      

    

    

    
      
        	
              	
                15.3

              	
                Any
      notice or other information sent by facsimile transmission or comparable
      means of communication should be deemed to have been duly given on the
      next day after transmission. A written confirmation to that effect shall
      be sent by post as mentioned
hereinabove.

              

      

    

    

    
      
        	
              	
                15.4

              	
                Service
      and any legal proceedings concerning or arising out of this Agreement
      shall be effected by causing the same to be delivered to the Party to be
      served at its registered office, or to such other address as may from time
      to time be notified in writing by the Party
  concerned.

              

      

    

     

    
      	
              16

            	
              Validity
      and Duration of Agreement

            

    

     

    
      
        	
              	
                16.1

              	
                This
      Agreement will become valid and come into force on June 9, 2009 (Effective
      Date).

              

      

    

    

    
      
        	
              	
                16.2

              	
                The
      duration of this Agreement will be 30 months from Effective Date on the
      condition that all Project work described in Clause 2 has been completed
      by NuGen  and all payments have been made by M&M and shall
      expire without notice of termination. An extension of the duration will
      automatically occur if the aforementioned two conditions (completion of
      Work and payment) are not met within the 30 months period until such
      conditions are fulfilled.

              

      

    

    

    
      
        	
              	
                16.3

              	
                Those
      provisions of this Agreement which by their nature should survive
      termination or expiration shall remain in effect in the event of such
      termination or expiration. These provisions include, but are not limited
      to Clauses  5, 6, 9, and
13.

              

      

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    
      	
              17

            	
              Amendments

            

    

     

    
      
        	
              	
                17.1

              	
                This
      Agreement constitutes the entire Agreement between the Parties and
      supersedes any prior agreements or understandings, whether oral or
      written. No amendments or changes to this Agreement shall be binding
      unless made in writing and signed by duly authorised officers of M&M
      and NuGen.

              

      

    

     

    
      	
              18

            	
              Invalid
      Provisions

            

    

     

    
      
        	
                
                

              	
                18.1

              	
                If
      any provision of this Agreement shall be invalid or unenforceable, it
      shall be considered deleted here from and the remainder of this Agreement
      shall be unaffected and shall continue in full force and effect. In lieu
      of such invalid or unenforceable provision, there will be added
      automatically, as part of this Agreement, a valid and enforceable
      provision as similar in terms to such invalid or unenforceable provision
      as may be possible.

              

      

    

     

    
      	
              19

            	
              Appendices

            

    

     

    
      
        	
              	
                19.1

              	
                All
      parts of this Agreement are equally binding on NuGen and M&M. However,
      in the event of a discrepancy or conflict in the interpretation of any
      part of the contractual terms and conditions and any of the appendices,
      the contractual terms and conditions shall
  prevail.

              

      

    

    

    
      
        	
                For
      & on behalf of M&M :

              	 	
                For
      & on behalf of NuGen Mobility:

              
	 	 	 
	
                Rajaj
      Wadhera

              	 	
                Eric
      Takamura

              
	
                Chief
      of Engg. & Development

              	 	
                CEO
      / President

              
	 	 	 
	
                /s/Rajaj Wadhera

              	 	
                /s/Eric Takamura

              
	 	 	 
	
                Date:
      9/06/09

              	 	
                Date:
      9/06/09

              

      

    

    

    For &
on behalf of Eric Takamura

    As an
individual

    

    
      
        	
                /s/ Eric Takamura

              
	
                Date:
      9 / Jun / 09

              

      

    

    

    
      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

    

     

    Annexure
I

    
       

      RASIC

        
          

        

      

       

    

    R – Responsible; A –
Approve; S; - Support I; - Information; C -
Consult

    
      
        	
                Tasks

              	 
      	
                NuGen

              	 
      	
                M&M

              	 
      	
                Vendor

              	 
      	
                Notes

              
	
                1

              	
                Integration
      Support

              	 
      	
                C,S

              	 
      	
                A ,
      R

              	 
      	 
      	 
      	 
      
	
                2

              	
                Base
      Line integration at M&M as provided by NuGen PHI

              	 
      	
                C,S

              	 
      	
                A ,
      R

              	 
      	 
      	 
      	 
      
	
                3

              	
                Near
      Term modifications of placement or wiring based on "Quick
      Insight"

              	 
      	
                C,S

              	 
      	
                A ,
      R

              	 
      	 
      	 
      	 
      
	
                4

              	
                Testing
      & Validation

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                5

              	
                Tests:  Range,
      Gradeability, Acceleration

              	 
      	
                C,S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                6

              	
                Training

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                7

              	
                "Concepts":  What
      matters, Things to watch out for in an EV

              	 
      	
                C,
      I, S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                8

              	
                "Good
      Habits" - conceptual on connectivity of components

              	 
      	
                C,
      I, S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                9

              	
                Vehicle
      Operation - "Driver’s Perspective"

              	 
      	
                A,
      R

              	 
      	
                S

              	 
      	 
      	 
      	 
      
	
                10

              	
                Level
      I use of NuGen VCM440 Utility:  Setup of vehicle, throttle,
      brake, switch configuration

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      	 
      	 
      
	
                11

              	
                Continued
      Support

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                12

              	
                Analyze
      Vehicle Level data

              	 
      	
                C,S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                13

              	
                Analyze
      DTS Level data

              	 
      	
                R

              	 
      	
                A,
      S

              	 
      	 
      	 
      	 
      
	
                14

              	
                Conceptual
      Layout & Modifications of platform and components

              	 
      	
                C,S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                15

              	
                Consider
      Integration of "current sensing" into controller

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                16

              	
                Modify
      thermal loading or profiles

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                17

              	
                Consider
      a higher integrated battery box

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                18

              	
                Support
      M&M efforts to;

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                19

              	
                Verify
      and validate that vehicle meets AIS standards.

              	 
      	
                C,S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                20

              	
                CMVR  certification
      of vehicle

              	 
      	
                C,S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                21

              	
                Continued
      platform testing:

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                22

              	
                Technical
      Performance – Gradeability, Acceleration, Top speed, Range

              	 
      	
                C,S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                23

              	
                “Drivability
      and Feel” -

              	 
      	
                C,S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                24

              	
                Accelerator
      and Braking sensitivity.  Feed back of system status, Ride and
      general driving characteristics

              	 
      	
                C,S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                25

              	
                Additional
      Training of M&M personnel - capability of continued adjustments and
      characterization of platform

              	 
      	
                C,S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                26

              	
                Level
      2 - NuGen VCM440 Utility:  Battery parameters - SOC, Engine
      braking

              	 
      	
                R

              	 
      	 
      	 
      	 
      	 
      	 
      
	
                27

              	
                Level
      3 - NuGen VCM440 Utility:  Data logging and primary parameters
      and information to look at

              	 
      	
                R

              	 
      	 
      	 
      	 
      	 
      	 
      
	
                28

              	
                Interaction
      and feed back within M&M

              	 
      	
                C,S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                29

              	
                Marketing

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

      

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    
      
        	
                Tasks

              	 
      	
                NuGen

              	 
      	
                M&M

              	 
      	
                Vendor

              	 
      	
                Notes

              
	
                30

              	
                Performance,
      Range, Features ( Too little, OK, Too Much)

              	 
      	
                C,S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                31

              	
                DTS
      - Impact study on cost and components based on Feedback

              	 
      	
                R

              	 
      	
                A,
      S

              	 
      	 
      	 
      	 
      
	
                32

              	
                Platform
      - Impact study on cost and components based on Feedback

              	 
      	
                S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                33

              	
                Production

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                34

              	
                Modifications
      to BASE platform - (Acceptable / Not Acceptable, desired
      Modifications)

              	 
      	
                C,S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                35

              	
                Selection
      of Components, (suspension, transmission, brakes)

              	 
      	 
      	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                36

              	
                Impact
      study on cost and components based on Feedback

              	 
      	
                C,S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                37

              	
                Define
      and set-up final Production Requirements for DFM/DFA (Phase
      III)

              	 
      	
                C,S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                38

              	
                Collate
      Information and Finalize Physical Requirements Documents

              	 
      	 
      	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                39

              	
                Platform
      Related

              	 
      	 
      	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                40

              	
                DTS
      - Related

              	 
      	
                C,
      R

              	 
      	
                A

              	 
      	 
      	 
      	 
      
	
                41

              	
                Collate
      Information and Finalise Functional Requirement Documents

              	 
      	
                C,S

              	 
      	
                A,R

              	 
      	 
      	 
      	 
      
	
                42

              	
                Platform
      Related - Parts

              	 
      	 
      	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                43

              	
                Architecture
      / Wiring

              	 
      	
                C,S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                44

              	
                DTS
      - Related (e.g. Thermal considerations and ambient temps of
      perf)

              	 
      	
                C,
      R

              	 
      	
                A,
      S

              	 
      	 
      	 
      	 
      
	
                45

              	
                Iterate/Modification
      of design for form, fit and function.

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                46

              	
                Implement
      agreed upon changes based on New Requirment documents from Phase
      II

              	 
      	
                A,
      R

              	 
      	
                S

              	 
      	 
      	 
      	 
      
	
                47

              	
                Two-Speed
      Transmission

              	 
      	
                I

              	 
      	
                A,
      R

              	 
      	
                I,
      R?

              	 
      	 
      
	
                48

              	
                Modify
      Instrument Display for VCM

              	 
      	
                I,
      C

              	 
      	
                A,
      S

              	 
      	
                R

              	 
      	 
      
	
                49

              	
                Integration
      of Motor & Controller

              	 
      	
                A,
      R

              	 
      	
                S

              	 
      	 
      	 
      	
                [1]

              
	
                50

              	
                Insert
      Current Sharing in Controller

              	 
      	
                A,
      R

              	 
      	
                 S

              	 
      	 
      	 
      	
                [1]

              
	
                51

              	
                Battery
      Box Integration

              	 
      	
                I,
      S

              	 
      	
                A,
      R

              	 
      	
                I,
      R?

              	 
      	 
      
	
                52

              	
                Modify
      based on agreed upon changes for performance

              	 
      	
                A

              	 
      	
                S

              	 
      	 
      	 
      	 
      
	
                53

              	
                Reduce
      size of thermal area for less performance at lower ambient

              	 
      	
                A,
      R

              	 
      	
                S

              	 
      	 
      	 
      	
                [1]

              
	
                54

              	
                Bearing
      Arrangements of Motor

              	 
      	
                A,
      S

              	 
      	
                R

              	 
      	 
      	 
      	 
      
	
                55

              	
                Can
      number of power devices in controller be reduced

              	 
      	
                A,
      R

              	 
      	
                S

              	 
      	 
      	 
      	
                [1]

              
	
                56

              	
                Cost
      Reduction

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                57

              	
                DFM
      & DFA Analysis 1

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                58

              	
                BOM
      Analysis

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                59

              	
                In-depth
      cost analysis of production as design Exists

              	 
      	
                A,
      R

              	 
      	
                C,
      S

              	 
      	
                I

              	 
      	 
      
	
                60

              	
                Highlight
      "High Cost components" - Part selected, Quantity

              	 
      	
                A,
      R

              	 
      	
                C,
      S

              	 
      	
                I

              	 
      	 
      
	
                61

              	
                Trade-off
      matrix: Alternative Parts & Qty vs. Performance

              	 
      	
                A,
      R

              	 
      	
                C,
      S

              	 
      	 
      	 
      	 
      
	
                62

              	
                Method
      of Manufacturing & Processes

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

      

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

    
      
        	
                Tasks

              	 
      	
                NuGen

              	 
      	
                M&M

              	 
      	
                Vendor

              	 
      	
                Notes

              
	
                63

              	
                Mechanical
      Based Items such as castings

              	 
      	
                A,
      S

              	 
      	
                R

              	 
      	
                I

              	 
      	 
      
	
                64

              	
                Electrical
      Based Items such as PCBs & Circuits

              	 
      	
                A,
      R

              	 
      	
                S

              	 
      	
                I

              	 
      	 
      
	
                65

              	
                Tradeoff
      matrix: Method and configuration vs. Performance

              	 
      	
                A,
      R

              	 
      	
                C,
      S

              	 
      	 
      	 
      	 
      
	
                66

              	
                Design
      Iteration 1

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                67

              	
                Overall
      control of design

              	 
      	
                A,
      R

              	 
      	
                C,
      S

              	 
      	 
      	 
      	 
      
	
                68

              	
                Implement,
      perform and do design modifications

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                69

              	
                Mechanical
      including FEA/ Thermal analysis

              	 
      	
                C,
      S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                70

              	
                Electrical/
      Electronics

              	 
      	
                A,
      R

              	 
      	
                C,
      S

              	 
      	 
      	 
      	 
      
	
                71

              	
                Vehicle
      Interface and integration

              	 
      	
                A,
      C

              	 
      	
                R,
      S

              	 
      	 
      	 
      	 
      
	
                72

              	
                Manufacture
      Prototype (Lot 1) based on new designs (EP)

              	 
      	
                A,
      R

              	 
      	
                C,
      S

              	 
      	 
      	 
      	 
      
	
                73

              	
                Mechanical
      Parts

              	 
      	
                A,
      S

              	 
      	
                R

              	 
      	 
      	 
      	 
      
	
                74

              	
                Electrical
      Parts (PWB's, PCB,s)

              	 
      	
                A,
      R

              	 
      	
                S

              	 
      	 
      	 
      	 
      
	
                75

              	
                Assembly
      of Prototypes Lot 1 (~3-5 units)

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      	 
      	
                May
      be scrapped

              
	
                76

              	
                Bench
      Testing and Evaluation

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      	 
      	 
      
	
                77

              	
                Testing
      on Platform

              	 
      	
                C,
      S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                78

              	
                Design
      Iteration based on feedback from Lot 1

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                79

              	
                DFM
      & DFA Analysis 2

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                80

              	
                BOM
      Analysis

              	 
      	
                A,
      R

              	 
      	
                C,
      S

              	 
      	
                I

              	 
      	 
      
	
                81

              	
                Manufacturing
      Process Analysis

              	 
      	
                A,
      R

              	 
      	
                C,
      S

              	 
      	
                I

              	 
      	 
      
	
                82

              	
                Assessment
      of Targets and Goals

              	 
      	
                C,
      S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                83

              	
                Manufacture
      Prototype (Lot 2) based on final designs (PP)

              	 
      	
                A,
      R

              	 
      	
                C,
      S

              	 
      	 
      	 
      	 
      
	
                84

              	
                Mechanical
      Parts

              	 
      	
                A,
      S

              	 
      	
                R

              	 
      	 
      	 
      	 
      
	
                89

              	
                Electrical
      Parts (PWB's, PCB,s)

              	 
      	
                A,
      R

              	 
      	
                S

              	 
      	 
      	 
      	 
      
	
                90

              	
                Assembly
      of Prototypes (5 units)

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      	 
      	 
      
	
                91

              	
                Bench
      Testing and Evaluation

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      	 
      	 
      
	
                92

              	
                Testing
      on Platform

              	 
      	
                C,
      S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                93

              	
                Life
      Cycle Testing

              	 
      	
                C,
      S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                94

              	
                Delivery
      to M&M for vehicle integration

              	 
      	
                C,
      R

              	 
      	
                A,
      S

              	 
      	 
      	 
      	 
      
	
                95

              	
                Vehicle
      Integration (EP 2)

              	 
      	
                A,S

              	 
      	
                C,R

              	 
      	 
      	 
      	 
      
	
                96

              	
                Final
      Documentation – Collation and hand over to M&M

              	 
      	
                C,
      R

              	 
      	
                A,
      S

              	 
      	 
      	 
      	 
      
	
                97

              	
                System
      model & simulation

              	 
      	
                A,
      R

              	 
      	
                C,
      S

              	 
      	 
      	 
      	 
      
	
                98

              	
                Solid
      models

              	 
      	
                A,
      R

              	 
      	
                C,
      S

              	 
      	 
      	 
      	 
      
	
                99

              	
                Drawings

              	 
      	
                A,
      R

              	 
      	
                C,
      S

              	 
      	 
      	 
      	 
      
	
                100

              	
                Design
      notes

              	 
      	
                A,
      R

              	 
      	
                C,
      S

              	 
      	 
      	 
      	 
      
	
                101

              	
                BOM

              	 
      	
                A,
      R

              	 
      	
                C,
      S

              	 
      	 
      	 
      	 
      
	
                102

              	
                Bought
      out component specification and source

              	 
      	
                A,
      R

              	 
      	
                C,
      S

              	 
      	 
      	 
      	 
      
	
                103

              	
                Production
      system Verification Stage (VP/PP)

              	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                104

              	
                Delivery
      of 25 EP Systems

              	 
      	
                A,R

              	 
      	
                C,S

              	 
      	 
      	 
      	 
      
	
                105

              	
                Integration,
      Testing and release of EP Platforms

              	 
      	
                C,
      S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                105

              	
                Delivery
      of 25 PP Systems

              	 
      	
                A,R

              	 
      	
                C,S

              	 
      	 
      	 
      	 
      

      

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

    
      
        	
                Tasks

              	 
      	
                NuGen

              	 
      	
                M&M

              	 
      	
                Vendor

              	 
      	
                Notes

              
	
                106

              	
                Integration,
      Testing and release of PP Platforms

              	 
      	
                C,
      S

              	 
      	
                A,
      R

              	 
      	 
      	 
      	 
      
	
                107

              	
                Field
      support of EP/PP platforms (upto as in Agreement)

              	
                  

              	
                C,
      S

              	
                  

              	
                A,
      R

              	
                  

              	 
      	
                  

              	 
      

      

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    CONFIDENTIAL
PORTIONS OF THIS AGREEMENT DESIGNATED BY ASTERISKS HAVE BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT.

     

    Appendix
II

    
       

      DTS
Unit Costs & Tooling Costs 

        
          

        

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            Anticipated Quantities 

                                          	 	
                                            DATE

                                          	 	
                                            Product

                                            State

                                          	 	 	
                                            Projected unit

                                            cost ($)

                                          	 	 	
                                            Tooling ($)

                                          	 	 	
                                            $/unit w-tooling

                                            amortization

                                          	 
	
                                            10
      Units for DFM/DFA support & verification

                                          	 	
                                            June
      - Sept 2009

                                          	 	
                                            C-EP

                                          	 	 	$	*	 	 	$	*	 	 	$	*	 
	
                                             50
      units

                                          	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                            25
      units EP

                                          	 	
                                            Sept-Jan
      2009

                                          	 	
                                            EP

                                          	 	 	$	*	 	 	$	*	 	 	$	*	 
	
                                             *       25
      units PP

                                          	 	
                                            Jan.
      - Mar. 2010

                                          	 	
                                            PP

                                          	 	 	$	*	 	 	$	*	 	 	$	*	 
	
                                            * 100 units per month
      for 1 year

                                          	 	
                                            June
      2010 - June 2011

                                          	 	
                                            JOB1

                                          	 	 	$	*	 	 	$	*	 	 	$	*	 
	
                                            *
      Price based on commiment of full JOB1 by SEPT 2009

                                          	 	 
      	 	 	 	 	
                                            Sub-Total

                                          	 	 	$	*	 	 	 	 	 
	 
      	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                            TOOLING & ASSEMBLY
NOTES

                                          	 	 
      	 	
                                            qty

                                          	 	 	
                                            $/ea

                                          	 	 	
                                            Extended

                                          	 	 	 	 	 
	
                                            [1]
      - Based on Manufacturing and Assembled  in USA

                                          	 	
                                            Stencils

                                          	 	 	6	 	 	$	*	 	 	$	*	 	 	
                                            Iteration
      1&2:

                                            Addressing

                                            known/found
      issues

                                          	 
	
                                            **
      Potential to get part supply support from India and reduce per unit
      costs

                                          	 	
                                            Solder
      masks

                                          	 	 	6	 	 	$	*	 	 	$	*	 	 	
                                            Iteration
      1&2

                                          	 
	 
      	 	
                                            Stamp
      Tool

                                          	 	 	1	 	 	$	*	 	 	$	*	 	 	
                                            Punch

                                          	 
	 
      	 	
                                            Machining
      Fixtures

                                          	 	 	2	 	 	$	*	 	 	$	*	 	 	
                                            Stator,
      Cases

                                          	 
	 
      	 	
                                            Soft
      Tool Coils

                                          	 	 	1	 	 	$	*	 	 	$	*	 	 	 	 	 
	 
      	 	
                                            Rotor
      assembly fixture

                                          	 	 	1	 	 	$	*	 	 	$	*	 	 	 	 	 
	 
      	 	
                                            Copper
      Tooling (Bus bars)

                                          	 	 	4	 	 	$	*	 	 	$	*	 	 	 	 	 
	 
      	 	 
      	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 
	
                                            [2]
      - Assembled in USA - Most parts from intended manufacturing processes from
      India and/or China

                                          	 	
                                            Stencils

                                          	 	 	6	 	 	$	*	 	 	$	*	 	 	
                                            Iteration
      3: Final Layout

                                          	 
	 
      	 	
                                            Solder
      masks

                                          	 	 	6	 	 	$	*	 	 	$	*	 	 	
                                            Iteration
      3:

                                          	 
	 
      	 	
                                            Castings

                                          	 	 	4	 	 	$	*	 	 	$	*	 	 	
                                            2x
      motor, 2x controller

                                          	 
	 
      	 	
                                            stamping/press

                                          	 	 	1	 	 	$	*	 	 	$	*	 	 	
                                            Motor
      (vane)

                                          	 
	 
      	 	
                                            Copper
      Tooling (Bus bars)

                                          	 	 	4	 	 	$	*	 	 	$	*	 	 	 	 	 
	 
      	 	
                                            Molds

                                          	 	 	3	 	 	$	*	 	 	$	*	 	 	
                                            Motor
      phase, 

                                            Controller
      phase & Bat

                                          	 
	 
      	 	
                                            Assembly
      jigs

                                          	 	 	3	 	 	$	*	 	 	$	*	 	 	
                                            Stator
      2x, rotor

                                          	 
	 
      	 	
                                            Misc.
      Go No-Go Gages

                                          	 	 	2	 	 	$	*	 	 	$	*	 	 	
                                            Motor
      1x, 4x controller

                                          	 
	 
      	 	
                                            Test
      fixtures

                                          	 	 	5	 	 	$	*	 	 	$	*	 	 	
                                            Motor
      1x, 4x controller

                                          	 
	 
      	 	 
      	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 
	
                                            [3]  -
      Predominantly Manufactured in China under NuGen with Final Assembly/top
      level testing in India

                                          	 	
                                            Stencils

                                          	 	 	3	 	 	$	*	 	 	$	*	 	 	
                                            Iteration
      4: Correction 

                                            of
      errors

                                          	 
	 
      	 	
                                            Solder
      masks

                                          	 	 	3	 	 	$	*	 	 	$	*	 	 	
                                            Iteration
      4:

                                          	 
	 
      	 	
                                            Castings

                                          	 	 	2	 	 	$	*	 	 	$	*	 	 	
                                            Motor
      (doghouse) & 

                                            or
      add-ons and mods

                                          	 
	 
      	 	
                                            Forging

                                          	 	 	2	 	 	$	*	 	 	$	*	 	 	
                                            rotor,
      shaft

                                          	 
	 
      	 	
                                            stamping/press

                                          	 	 	9	 	 	$	*	 	 	$	*	 	 	
                                            Motor
      (vane, phase 

                                            leads),
      Controller ( 4x 

                                            bus
      bars)

                                          	 
	 
      	 	
                                            Molds

                                          	 	 	3	 	 	$	*	 	 	$	*	 	 	
                                            Motor
      phase, 

                                            Controller
      phase & Bat

                                          	 
	 
      	 	
                                            Assembly
      jigs

                                          	 	 	1	 	 	$	*	 	 	$	*	 	 	 	 	 
	 
      	 	
                                            Misc.
      Go No-Go Gages

                                          	 	 	3	 	 	$	*	 	 	$	*	 	 	
                                            Motor
      1x, 4x controller

                                          	 
	 
      	 	
                                            Test
      fixtures

                                          	 	 	2	 	 	$	*	 	 	$	*	 	 	
                                            2x
      Controller

                                          	 
	 
      	 	 
      	 	 	 	 	 	 	 	 	 	$	*	 	 	 	 	 

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    
       

      Appendix
III

       

      Anticipated Travel
Costs

    

     

    
      
        
          
            
              
                
                  
                    
                      	
                              Description

                            	 	
                              Avg. Est. $/ea.

                            	 	 	
                              Qty

                            	 	 	
                              Extended

                            	 	
                              Notes:

                            
	
                              TRAVEL

                            	 	 	 	 	 	 	 	 	 	 
      
	
                              Travel
      to India (Mngmt)

                            	 	
                              2000

                            	 	 	 	8	 	 	$	16,000.00	 	
                              On
      average 2 every 3 months

                            
	
                              Travel
      to India (tech.)

                            	 	
                              2000

                            	 	 	 	6	 	 	$	12,000.00	 	
                              2
      people per trip, 3 criticals

                            
	
                              Travel
      to India/Manuf (QC / Process)

                            	 	
                              2000

                            	 	 	 	2	 	 	$	4,000.00	 	
                              On
      average 1 every 3 months

                            
	
                              Travel
      to vendors/sources

                            	 	
                              2600

                            	 	 	 	2	 	 	$	5,200.00	 	
                              To
      vendors for spms plus MI&E

                            
	
                              Misc.
      Domestic

                            	 	
                              500

                            	 	 	 	4	 	 	$	2,000.00	 	
                              Vendors
      & subs

                            
	 
      	 	 	 	 	 	 	 	 	 	$	39,200.00	 	 
      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    
       

      Appendix
IV

       

    

    
      NON-DISCLOSURE
AGREEMENT

       

      Nugen
Mobility, Inc.

    

    
      44645
Guilford Drive – Suite 201

    

    
      Ashburn,
Virginia 20147 – USA

    

    
      Tel:
(703) 858-0036

    

    
      Fax:
(703) 858-0699

    

    
      

    

    
      THIS
AGREEMENT, by and between NuGen Mobility, Inc. and M&M, shall have
an effective date of ____, 2009.

    

    
      

    

    
      WITNESSETH

    

    
      

    

    
      WHEREAS,
the parties are desirous of exchanging information relative to the information
and data relative to Electric Motor, Motor Controller and Aspects of Motor
Controls design, development and production, and in the performance of contracts
between the paries with regard thereto.

    

    
      

    

    
      WHEREAS,  one  party  (OWNER)  may  disclose  to  the  other  party  (RECIPIENT)
certain information pursuant to this Agreement which the owner deems
CONFIDENTIAL or PROPRIETARY.

    

    
      

    

    
      NOW,
THEREFORE, for and in consideration of the promises and mutual covenants herein
set forth, and other vauable consideration, the receipt and sufficiency of which
is hereby acknowledged, theparties hereto agree as follows:

    

    
      

    

    
      1. For a
period of ten (10) years from the time of receipt, RECIPIENT: (i) shall not
disclose any information it receives from OWNER that is marked
CONFIDENTIAL  or PROPRIETARY  (or comparable legend) or
which OWNER has otherwise indicated in writing to  RECIPIENT
is  CONFIDENTIAL or  PROPRIETARY to anyone, including any
other  individual,  person, firm or
corporation;  provided, however the  RECIPIENT will restrict
access to  CONFIDENTIAL or PROPRIETARY information to such of its
directors, officers, shareholders, members, employees, contractors, affiliates,
representatives, advisors or  agents whose access is
reasonably  necessary  for the  purpose
of  exchanging such information pursuant to this Agreement; (ii shall
not use the information for its own benefit except as provided herein; and shall
use the same  degree of care to avoid disclosure or use of such
information as RECIPIENT employs with respect to its own confidential or
proprietary information of like importance. Each person who receives
CONFIDENTIAL or PROPRIETARY infomation as permitted by this Agreement, shall be
informed by  RECIPIENT of its  CONFIDENTIAL
or  PROPRIETARY nature, shall be directed to  treat such
information confidentially, shall agree to abide by the  provisions of
this Agreement and shall be bound by the provisions and obligations of this
Agreement.

    

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    
      

    

    
      
        	
                2.

              	
                Information
      shall not be deemed CONFIDENTIAL or PROPRIETARY and RECIPIENTshall
      have no obligation with respect to such information which: is or becomes
      part of the public
      domain without a breach of this Agreement by the
  RECIPIENT:

              

      

    

    
      

    

    
      
        
          	
                	
                  a)

                	
                  was
      at the time of receipt otherwise known to the RECIPIENT as evidenced by
      written records or other writing in existence  prior to
      the   time of receipt and kept in the  ordinary
      course of business by the RECIPIENT or by actual proof of use by the
      RECIPIENT prior to the disclosure by the
OWNER;

                

        

      

    

    
      

    

    
      
        	
              	
                b)

              	
                subsequently
      is developed, independently or without reference to or use of the
      CONFIDENTIAL or PROPRIETARY information, by an employee of
      the  RECIPIENT to whom said information was not divulged either
      directly or indirctly by the
RECIPIENT;

              

      

    

    
      

    

    
      
        	
              	
                e)

              	
                becomes
      known or available to the RECIPIENT from a party or parties other than the
      OWNER without a breach of this Agreement by the RECIPIENT, provided that
      to the RECIPIENT’s knowledge after reasonable inquiry, such party is not
      and was not bound by a duty of confidentiality to OWNER regarding the
      CONFIDENTIAL or PROPRIETARY information;
or

              

      

    

    
      

    

    
      
        	
              	
                f)

              	
                is
      disclosed in accordance with the written approval of the
      OWNER.

              

      

    

    
      

    

    
      
        	
                3.

              	
                In
      the event tat the RECIPIENT is legally compelled, by subpoena, deposition,
      interrogatories, request for production of documents, court or
      administrative order, civil investigative demand or otherwise to disclose
      any CONFIDENTIAL or PROPRIETARY, the RECIPIENT shall provide OWNER with
      prompt written notice of such requirement or request so that OWNER may
      seek a protective order, other appropriate remedy and/or waive of
      compliance with the terms of this Agreement. If such protective order or
      other remedy is not obtained or if such a waiver is provided, RECIPIENT
      agrees to furnish only that portion of the CONFIDENIAL or PROPRIETARY
      information which it is legally required to furnish and to exercise best
      efforts to obtain confidential treatment of such CONFIDENTIAL or
      PROPRIETARY information.

              

      

    

    
      

    

    
      
        	
                4.

              	
                Each
      party respectively appoints the below identified person as its Data
      Control Coordinator for the receipt and dispatch, on its behalf, of all
      CONFIDENTIAL or PROPRIETARY information it receives from or discloses to
      the other party pursuant to this Agreement. Each party reserves the right
      to change its Data Control coordinator by giving the other party notice in
      writing of the name and address of its newly appointed Data Control
      Coordinator.

              

      

    

    
      

    

    
      
        On behalf
of NuGen Mobility,

      

    

    
      

    

    
      
        Eric
Takamura,   44645, Guilford Drive,Suite
201

      

    

    
      
        Ashburn,
Virginia 20147

      

    

    
      

    

    
      
        On behalf
of Mahindra and Mahindra Ltd

      

    

    
      
        Rajan
Wadhera, Head of Engineering and Development

      

    

    

      
        
           

        

        
          22

          
            

          

        

        
           

        

      

    

     

    
      
        	
                5.

              	
                In
      the event CONFIDENTIAL or PROPRIETARY information is orally disclosed, the
      OWNER thereof agrees to notify RECIPIENT of such
      oral  disclosure, and reduce same to writing or other tangible
      media within thirty (30) days of such oral disclosure, referencing the
      place and date thereof, and the names of employees of RECIPIENT to whom
      such oral disclosure was
made.

              

      

    

    
      

    

    
      
        	
                6.

              	
                All
      tangible information delivered hereunder whether written or in any other
      tangible media shall be and remain the property of OWNER and all such
      information, and any copies thereof, shall be promptly returned to OWNER
      upon written request, or destroyed at OWNER’s
  option.

              

      

    

    
      

    

    
      
        	
                7.

              	
                In
      the event any information disclosed hereunder bears a Military Security
      Classification, the provisions of the Department of Defense Industrial
      Security for Safeguarding Classified Information shall be appropriately
      complied with by each party, provided, however, that the RECIPIENT shall
      provide the OWNER evidence of its security clearance and the level thereof
      before receiving any classified
information.

              

      

    

    
      

    

    
      
        	
                8.

              	
                There
      are no understandings, agreements or representations expressed or implied,
      which are not specified herein.  This Agreement may not be
      amended except in writing signed by duly authorized representatives of
      both parties hereto.

              

      

    

    
      

    

    
      
        	
                9.

              	
                The
      parties hereto agree that this Agreement shall be governed for all
      purposes by the law of the Commonwealth of
  Virginia.

              

      

    

    
       

    

    
      
        
          	
                  10.

                	
                  Nothing
      contained in this Agreement shall be construed as granting of conferring
      any rights whatsoever to or upon the  RECIPIENT by license of
      otherwise, expressly, implicitly,  or otherwise, for any patent,
      issued or pending, invention, discovery, improvement, trade secret, or any
      other intellectual property, owned or controlled, made, conceived, or
      acquired, prior to or after the date of this
  Agreement.

                

        

      

    

    
      

    

    
      
        	
                11.

              	
                This
      Agreement may be executed in counterparts, each of which is an original
      and both  of which , taken together, constitutes a single
      instrument.

              

      

    

    
      

    

    
      
        	
                12.

              	
                This
      Agreement  shall be  binding upon and  inure
      to the benefit of the parties hereto andtheir
      successors and assigns. Notwithstanding the  foregoing,
      neither  party  shall assign any
      of its rights or obligations hereunder without the written consent of the
      other party.

              

      

    

    
      

    

    
      
        	
                13.

              	
                Either
      party may terminate this Agreement prospectively,
      by  written  notice  to  the  otherparty
      at the address indicated at the beginning of this Agreement, or at such
      other address as a party may y notice hereafter specify, without liability
      to the other party. In no event shall termination of this Agreement affect
      obligations under this Agreement already in effect. This Agreement shall
      terminate two years after the date of this Agreement. Notwithstanding such
      termination, the obligations of each of the parties concerning
      nondisclosure in this Agreement shall terminate five (5) years following
      receipt of the CONFIDENTIAL or PROPRIETARY
  information.

              

      

    

    
      

    

    
      
        	
                14.

              	
                If
      any provision of this Agreement is found unreasonable or unenforceable by
      a court or competent jurisdiction, that provision shall be severed
      therefrom to the extent consistent with the overall meaning hereof, and
      the remainder of this Agreement shall continue in
  effect.

              

      

    

    
      

    

    
      IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
duly authorized representative as of the Effective Date
hereof.

    

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    
      

    

    
      For
NuGen Mobility Inc

    

    
      

    

    
      By: Eric
Takamura

    

    
      

    

    
      
        	
                /s/Eric Takamura

              
	 
      
	
                Title:

              	
                President

              

      

    

    
      

    

    
      Date: 9/
June / 09

    

    
      

    

    
      For
Mahindra and Mahindra Ltd

    

    
      

    

    
      
        	
                By:
      /s/Rajan Wadhera

              
	 
      
	
                Title:

              	
                EVP,
      Head of Engineering &
Development

              

      

    

    
      

    

    
      Date: 
09/06/09

       

      
        
          
             

          

          
            24

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