Document:

AMENDED AND RESTATED SUPPLEMENTAL EXECUTIVE RETIREMENT PROGRAM

AMERICAN AXLE & MANUFACTURING,
INC.

SUPPLEMENTAL
EXECUTIVE RETIREMENT PROGRAM

AMENDED
AND RESTATED PLAN DOCUMENT

EFFECTIVE
JANUARY 1, 2005

 

 

TABLE
OF CONTENTS

                                                                                                Page

ARTICLE
I INTRODUCTION
...........................................................................................................................................................................................................................................................................1

        1.1 Purpose
of Plan
........................................................................................................................................................................................................................................................................................1

1.2 Top Hat
Pension Benefit Plan
................................................................................................................................................................................................................................................................1

1.3 Funding
......................................................................................................................................................................................................................................................................................................1

1.4 Effective
Date
...........................................................................................................................................................................................................................................................................................1

ARTICLE
II DEFINITIONS
.................................................................................................................................................................................................................................................................................2

2.1 Average
Monthly Base Salary
...............................................................................................................................................................................................................................................................2

2.2 Average
Monthly Incentive Compensation
........................................................................................................................................................................................................................................2

2.3 Average
Total Direct Compensation
....................................................................................................................................................................................................................................................2

2.4 Base
Salary
................................................................................................................................................................................................................................................................................................2

2.5 Board of
Directors
....................................................................................................................................................................................................................................................................................3

2.6 Cash
Balance Plan
....................................................................................................................................................................................................................................................................................3

2.7 Code
...........................................................................................................................................................................................................................................................................................................3

2.8 Compensation
Committee
.......................................................................................................................................................................................................................................................................3

2.9 Corporation
...............................................................................................................................................................................................................................................................................................3

2.10 Credited
Service
.....................................................................................................................................................................................................................................................................................3

2.11 Disability
or Disabled
............................................................................................................................................................................................................................................................................4

2.12 Employee
.................................................................................................................................................................................................................................................................................................4

2.13 Health
Care Program
..............................................................................................................................................................................................................................................................................5

2.14 Joint and
Survivor Annuity
..................................................................................................................................................................................................................................................................5

2.15 Management
Benefits Committee
........................................................................................................................................................................................................................................................5

2.16 Specified
Employee
................................................................................................................................................................................................................................................................................5

2.17 Spouse
.....................................................................................................................................................................................................................................................................................................5

2.18 SRP
...........................................................................................................................................................................................................................................................................................................5

ARTICLE
III PARTICIPATION
AND ELIGIBILITY
......................................................................................................................................................................................................................................6

3.1 Eligibility
for Retirement Benefits
..........................................................................................................................................................................................................................................................6

3.2 Eligibility
for Pre-Retirement Surviving Spouse Benefits
..................................................................................................................................................................................................................6

3.3 Determination
of Eligibility
.....................................................................................................................................................................................................................................................................6

ARTICLE
IV BENEFITS
......................................................................................................................................................................................................................................................................................7

4.1 Amount of
Benefits
.................................................................................................................................................................................................................................................................................7

4.2 Time and
Form of Payment of Benefits
.................................................................................................................................................................................................................................................9

4.3 Pre-Retirement
Surviving Spouse Benefit
..........................................................................................................................................................................................................................................10

ARTICLE
V ADMINISTRATION
....................................................................................................................................................................................................................................................................11

5.1 Management
Benefits Committee
........................................................................................................................................................................................................................................................11

5.2 Administrator
..........................................................................................................................................................................................................................................................................................12

5.3 Compensation
.........................................................................................................................................................................................................................................................................................12

5.4 Agent for
Service of Process
...............................................................................................................................................................................................................................................................13

5.5 Indemnification
.......................................................................................................................................................................................................................................................................................13

ARTICLE
VI CLAIMS
PROCEDURE
.............................................................................................................................................................................................................................................................14

6.1 Claims
.......................................................................................................................................................................................................................................................................................................14

6.2 Claim
Decision
........................................................................................................................................................................................................................................................................................14

6.3 Request
for Review
................................................................................................................................................................................................................................................................................15

6.4 Review of
Decision
................................................................................................................................................................................................................................................................................15

ARTICLE
VII MISCELLANEOUS
...................................................................................................................................................................................................................................................................16

7.1 Not
Contract of Employment
................................................................................................................................................................................................................................................................16

7.2 Non-Assignability
of Benefits
.............................................................................................................................................................................................................................................................16

7.3 Withholding
............................................................................................................................................................................................................................................................................................16

7.4 Amendment
and Termination
...............................................................................................................................................................................................................................................................16

7.5 No
Fiduciary Relationship Created
.....................................................................................................................................................................................................................................................17

7.6 Unsecured
General Creditor Status of Employee
..............................................................................................................................................................................................................................17

7.7 Severability
..............................................................................................................................................................................................................................................................................................17

7.8 Governing
Laws
.....................................................................................................................................................................................................................................................................................17

7.9 Binding
Effect
.........................................................................................................................................................................................................................................................................................17

7.10 Number
and Gender
.............................................................................................................................................................................................................................................................................17

7.11 Headings
................................................................................................................................................................................................................................................................................................18

7.12 Entire
Agreement
.................................................................................................................................................................................................................................................................................18

ii

ARTICLE
I

INTRODUCTION

American
Axle & Manufacturing, Inc. (the "Corporation") previously adopted and
maintains the AMERICAN AXLE & MANUFACTURING, INC. SUPPLEMENTAL EXECUTIVE
RETIREMENT PROGRAM (the "Plan") for the purpose of providing supplemental
retirement benefits to employees who are eligible under the terms and conditions
of this Plan. The Plan is hereby amended and restated, effective January 1,
2005, as follows.

 

 

	
      1.2
	
      Purpose
      of Plan.

The
purpose of the Plan is to provide certain eligible employees of the Corporation
a level of retirement benefits that result in total benefits which are
competitive with benefits available to retiring executives of other major
industrial companies. 

	
      1.2
	
      "Top
      Hat" Pension Benefit Plan.

The Plan
is an "employee pension benefit plan" within the meaning of ERISA. However, the
Plan is unfunded and maintained for a select group of management or highly
compensated employees and, therefore, it is intended that the Plan will be
exempt from Parts 2, 3 and 4 of Title I of ERISA. The Plan is not intended to
qualify under Code Section 401(a).

	
      1.3
	
      Funding.

The Plan
is unfunded. All benefits will be paid from the general assets of the
Corporation, although assets may, but are not required to be placed in a grantor
trust, of which the Corporation is the grantor, within the meaning of subpart E,
Part I, subchapter 1, subtitle A of the Internal Revenue Code of 1986, as
amended, and shall be construed accordingly. Participants have no ownership,
either actual or beneficial, in the assets of the trust so the trust shall not
affect the unfunded status of the Plan.

	
      1.4
	
      Effective
      Date.

The Plan
is effective March 1, 1994. The amended and restated Plan is effective as of
January 1, 2005.

1

ARTICLE
II

DEFINITIONS

For
purposes of the Plan, the following words and phrases shall have the respective
meanings set forth below, unless their context clearly requires a different
meaning:

	
      2.1
	
      Average
      Monthly Base Salary.

"Average
Monthly Base Salary" means the monthly average of the Employee's Base Salary for
the highest 60 of the 120 months immediately preceding the earlier of his or her
termination of employment or transfer to the hourly rolls. For purposes of
determining "Average Monthly Base Salary", the following provisions shall
apply:

	 	
      (a)
	
      For
      any month preceding termination of employment, or transfer to hourly
      rolls, for which the Employee received Base Salary at less than his or her
      full monthly Base Salary rate, his or her full monthly Base Salary rate
      last received preceding such month shall be used for such
      month.

	 	
      (b)
	
      For
      any month preceding an Employee’s termination of employment during which
      an Employee was on the hourly payroll and subsequent to which the Employee
      commenced service as a salaried Employee, his or her monthly Base Salary
      rate immediately following the commencement of such service as a salaried
      Employee shall be used for such month. 

	
      2.2
	
      Average
      Monthly Incentive Compensation.

	
      
	
      "Average
      Monthly Incentive Compensation" means the amount determined by dividing
      the total of the highest five of the last ten years of bonus awards by 60.
      The bonus amount is to be based on the total bonus amount on the date of
      the award, irrespective of whether any portion of such bonus is deferred.
      Bonus awards related to an Employee's year of retirement are not taken
      into account. If an Employee does not have five years of awards, then a $0
      award will be used for each year necessary to make a total of five
      years.

	
      2.3
	
      Average
      Total Direct
Compensation.

"Average
Total Direct Compensation" means the sum of Average Monthly Base Salary plus
Average Monthly Incentive Compensation.

	
      2.4
	
      Base
      Salary.

"Base
Salary" means the salary paid by the Corporation for a work week of not more
than 40 hours, exclusive of any other compensation. 

 

2

An
Employee's Base Salary for purposes of determining benefits paid under this Plan
shall include salary election deferrals of Base Salary pursuant to (i) a cash or
deferred arrangement under Code Section 401(k) as provided under the
Corporation's Savings Plan for Salaried Employees, and (ii) an arrangement under
Code Section 125 or 132(f)(4); and under the American Axle & Manufacturing
Holdings, Inc. Executive Deferred Compensation Plan.

 

	
      2.5
	
      Board
      of Directors.

"Board of
Directors" means the Board of Directors of the Corporation.

 

	
      2.6
	
      Cash
      Balance Plan.

"Cash
Balance Plan" means the American Axle & Manufacturing, Inc. and Affiliated
Corporation Salaried Cash Balance Pension Plan.

	
      2.7
	
      Code.

"Code"
means the Internal Revenue Code of 1986, as amended. Reference to a section of
the Code shall include that section and any comparable section or sections of
any future legislation that amends, supplements or supersedes that
section.

	
      2.8
	
      Compensation
      Committee.

"Compensation
Committee" means the Compensation Committee of the Board of Directors of the
Corporation.

	
      2.9
	
      Corporation.

 

"Corporation"
means American Axle & Manufacturing, Inc.

	
      2.10
	
      Credited
      Service.

"Credited
Service" shall have the same meaning as that term is defined in Section 6.2 of
the SRP and/or Section 6.1 of the Cash Balance Plan. Notwithstanding any
provision of the Plan, the SRP or the Cash Balance Plan to the contrary, a
Transitioned Employee (as defined in Section 1.33 of the SRP) shall receive
credit for Credited Service with General Motors Corporation for purposes of
determining such an Employee's eligibility for benefits under the Plan, but not
for purposes of the amount of an Employee's benefit.

Notwithstanding
any provision of this Plan to the contrary, no Employee will be credited with
any years of Credited Service for periods following a layoff or leave of absence
which commenced prior to the date such Employee attains age 62.

3

	
      2.11
	
      Disability
      or Disabled.

"Disability"
or "Disabled". An Employee shall be deemed to be suffering from a Disability
only if he or she is, by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, receiving income replacement
benefits for a period of not less than three months under an accident and health
plan covering employees of the Corporation.

	
      2.12
	
      Employee.

 

"Employee"

	 	
      (a)
	
      General
      Definition.
      “Employees” shall mean regular employees of the Corporation compensated by
      salary or by commission or partly by salary and partly by commission who
      are (i) working in the United States, or (ii) citizens of or domiciled in
      the United States and who have been or may hereafter be hired in the
      United States by the Corporation and who are sent out of the United States
      by the Corporation to work in foreign operations, and whose services, if
      discontinued, would be discontinued by recalling said employees to the
      United States and terminating their services in the United States and
      (iii) nonresident aliens receiving income from the Corporation’s United
      States payroll. 

	 	
      (b)
	
      Temporary,
      Part-Time and Flexible Service Employees.
      The term “Employees” shall not include employees who are classified by the
      Corporation as (i) Temporary Employees, including per diem employees, (ii)
      Part-Time Employees, or (iii) Flexible Service
  Employees.

	 	
      (c)
	
      Controlled
      Group Employees.
      The term “Employees” shall not include employees of affiliated employers;
      provided, however, that service with any such entity shall, if such an
      individual later becomes an Employee, be counted under this Plan for
      eligibility purposes.

	 	
      (d)
	
      Leased
      Employees.
      The term “Employees” shall not include any Leased Employee (within the
      meaning of Code Section 414(n)) or any individual classified as a Leased
      Employee by the Corporation. If a Leased Employee later becomes an
      Employee, service as a Leased Employee shall be counted under this Plan
      for eligibility purposes.

	 	
      (e)
	
      Union
      Employees.
      The term “Employees” shall not include employees represented by a labor
      organization who are covered by a collective bargaining agreement so long
      as retirement benefits are the subject of good faith bargaining and so
      long as the collective bargaining agreement does not expressly provide for
      participation in this Plan. 

	 	
      (f)
	
      Directors.
      The
      term “Employees” shall not include members of the Board of Directors of
      American Axle & Manufacturing, Inc., or of any committee 
      
      appointed
      by any such Board of Directors, who are not regular employees of the
      Corporation.

 

 

	 	
       
	
      
      appointed
      by any such Board of Directors, who are not regular employees of the
      Corporation.

	 	
      (g)
	
      Independent
      Contractors.
      The term “Employees” shall not include an independent contractor or any
      individual classified as an independent contractor by the Corporation
      regardless of any later classification or reclassification of any such
      individual as a common law employee of the
Corporation.

	
      2.13
	
      Health
      Care Program.

"Health
Care Program" means the American Axle & Manufacturing, Inc. Salaried Health
Care Program.

	
      2.14
	
      Joint
      and Survivor Annuity.

"Joint
and Survivor Annuity" means an immediate annuity which provides a reduced
benefit for the life of the Employee with a survivor annuity for the life of the
Employee's Spouse equal to 65% of the amount of the annuity which is payable
during the life of the Employee. Such reduced benefit shall equal the benefit
otherwise payable to an Employee under Article IV multiplied by 95%, if the age
of the Employee and his or her Spouse is within five years of each other. If an
Employee's Spouse is five or more years younger than the Employee, 95% is
decreased by 1/2% for each full year over five years that the Spouse is younger
than the Employee, and if such Spouse is five or more years older than the
Employee, 95% shall be increased by 1/2%, but not to exceed 100%, for each full
year over five years that the Spouse is older than the Employee.

	
      2.15
	
      Management
      Benefits Committee.

"Management
Benefits Committee" means the committee appointed pursuant to Section
5.1.

	
      2.16
	
      Specified
      Employee.

"Specified
Employee" means a key employee as defined in Section 416(i) of the Code without
regard to paragraph (5) thereof.

	
      2.17
	
      Spouse.

"Spouse"
means the legally married husband or wife of an Employee. The legality of the
marriage shall be determined pursuant to the laws of the state in which the
Employee is domiciled.

	
      2.18
	
      SRP.

"SRP"
means the American Axle & Manufacturing, Inc. Retirement Program for
Salaried Employees.

5

ARTICLE
III

PARTICIPATION
AND ELIGIBILITY

	
      3.1
	
      Eligibility
      for Retirement Benefits.

(a) Basic
Benefit. To be
eligible for a Basic Benefit, an Employee must:

	 	
      (1)
	
      Be
      Salary Band 16 or above and an active employee of the Corporation or an
      affiliated entity on his or her date of death, retirement or commencement
      of his or her Disability.

	 	
      (2)
	
      Be
      credited with 10 or more Years of Credited Service;
and

	 	
      (3)
	
      Have
      attained age 55 at the time of his or her retirement, death or
      commencement of his or her Disability.

 

	 	
      (b)
	
      Alternative
      Benefit.
      To be eligible for an Alternative Benefit, an Employee
    must:

	 	
      (1)
	
      Be
      Salary Band 16 or above and an active employee of the Corporation or an
      affiliated entity on his or her date of death, retirement or commencement
      of Disability;

	 	
      (2)
	
      Be
      credited with 10 or more years of Credited Service;
and

	 	
      (3)
	
      Have
      attained age 62 at the time of his or her retirement, death or
      commencement of his or her Disability.

	 	
      (c)
	
      No
      Duplication of Benefits.
      An Employee who is eligible for both a Basic Benefit and an Alternative
      Benefit will receive whichever is greater, and not both a Basic Benefit
      and an Alternative Benefit.

	 	
      (d)
	
      An
      individual shall not be deemed to be actively employed if he or she is
      laid off or on a leave of absence.

	
      3.2
	
      Eligibility
      for Pre-Retirement Surviving Spouse
Benefits.

The
Spouse of an Employee who is eligible for a Basic Benefit or an Alternative
Benefit under Section 3.1 who dies before benefit payments begin under Section
4.2 will be entitled to receive benefit payments in accordance with Section
4.3.

	
      3.3
	
      Determination
      of Eligibility.

The
Management Benefits Committee shall determine each Employee's eligibility for
benefits under this Plan.

6

ARTICLE
IV

BENEFITS

 

	
      4.1
	
      Amount
      of Benefits.

	 	
      (a)
	
      Amount
      of Basic Benefit.
      An Employee eligible for a Basic Benefit shall, subject to Section 4.1(b),
      be entitled to a monthly benefit payable in the manner set forth in
      Section 4.2 equal to 2% of Average Monthly Base Salary multiplied by his
      or her years of Credited Service, less the sum
of:

	 	
      (1)
	
      All
      monthly benefits payable to the eligible Employee under the SRP and/or the
      Cash Balance Plan before reduction for any survivor option,
      plus

	 	
      (2)
	
      2%
      of the eligible Employee's monthly age 65 primary Social Security benefit
      multiplied by his or her years of Credited
Service.

For
purposes of calculating Basic Benefits, the following shall apply:

	 	
      (1)
	
      The
      monthly age 65 primary Social Security benefit will be determined and
      applied to the Basic Benefit formula at death or retirement, regardless of
      the Employee's age at death or retirement and regardless of the Employee's
      eligibility for Social Security benefits.

	 	
      (2)
	
      The
      monthly age 65 primary Social Security benefit will be determined at death
      or retirement using the maximum monthly Social Security benefit amount
      payable at age 65 in the year the Employee retires or dies.
    

	 	
      (b)
	
      Rules
      Applicable to Basic Benefits.

	 	
      (1)
	
      At
      age 62 and one month, for those retiring prior to age 62 with a Basic
      Benefit, the Basic Benefit will be redetermined, taking into account the
      lower non-contributory basic benefit payable under the SRP when Temporary
      Benefits under the SRP are reduced or
eliminated.

	 	
      (2)
	
      The
      "Special" benefit (Part B Medicare reimbursement) paid under the Health
      Program will not be taken into account in determining any monthly benefit
      amount payable under Section 4.1(a).

	 	
      (3)
	
      Post-retirement
      increases under the SRP or the Cash Balance Plan will not reduce any
      monthly benefit amount payable under this Section
  4.1(a).

7

	 	
      (4)
	
      Any
      benefits payable under this Section 4.1(b) to a retiree or eligible
      surviving spouse will be offset by benefits payable under certain other
      Corporation-provided programs (e.g., Long-Term Disability
      Benefits).

	 	
      (5)
	
      The
      award or denial of a Social Security disability insurance benefit that
      affects the monthly amount of benefits payable under the SRP will be taken
      into account in determining any monthly benefit amount payable under this
      Section 4.1(b).

	 	
      (c)
	
      Amount
      of Alternative Benefit.
      An Employee eligible for an Alternative Benefit shall, subject to Section
      4.1(d), be entitled to a monthly benefit payable in the manner set forth
      in Section 4.2 equal to the greater of (i) the monthly Basic Benefit
      determined in accordance with Section 4.1(a), or (ii) a monthly benefit
      equal to 1.5% of his or her Average Total Direct Compensation, multiplied
      by his or her years of Credited Service, less the sum
  of:

	 	
      (1)
	
      All
      monthly benefits determined under the terms of the SRP and/or the Cash
      Balance Plan before reduction for any survivor option,
  plus

	 	
      (2)
	
      100%
      of the monthly age 65 primary Social Security benefit,
  plus

	 	
      (3)
	
      Any
      benefits payable under certain other Corporation-provided programs (e.g.,
      Extended Disability Benefits).

For
purposes of calculating Alternative Benefits, the following shall
apply:

	 	
      (1)
	
      Differing
      time periods over the last 10 years of employment with the Corporation may
      be used for the blended calculation of Average Monthly Base Salary and
      Average Monthly Incentive Compensation.

	 	
      (2)
	
      The
      monthly age 65 primary Social Security benefit is the monthly age 65
      primary Social Security benefit payable in the year of the Employee's
      death or retirement, regardless of the Employee's age at such time and
      regardless of the Employee's eligibility for Social Security
      benefits.

	 	
      (3)
	
      The
      monthly age 65 primary Social Security benefit will not be redetermined
      for any subsequent Social Security
increase.

	 	
      (d)
	
      Rules
      Applicable to Alternative Benefits.

	 	
      (1)
	
      Post-retirement
      increases under the SRP or the Cash Balance Plan will not reduce any
      monthly benefit amount payable under Section
4.1(c).

8

	 	
      (2)
	
      The
      "Special" Medicare benefit payable under the Health Care Program will not
      be taken into account in determining any monthly benefit amount payable
      under Section 4.1(c).

	 	
      (3)
	
      Benefits
      payable under Section 4.1(c) are not guaranteed and may be reduced or
      eliminated at any time, and from time to time, without prior notice by the
      Compensation Committee, the Management Benefits Committee and the Board of
      Directors.

	 	
      (4)
	
      Until
      age 70, each of the conditions precedent requirements contained in the
      American Axle & Manufacturing, Inc. Executive Incentive Compensation
      Program will be applied to the continued eligibility for payment of an
      Alternative Benefit. Therefore, receipt of Alternative Benefits will cease
      immediately, effective as of the month immediately following the date of
      initial violation, upon determination by the Corporation that a retired
      executive receiving an Alternative Benefit (i) did not refrain from all
      activity which is competitive with the Corporation, or (ii) acted in a
      manner inimical or contrary to the best interests of the Corporation. Any
      Alternative Benefits also may be suspended if the retired executive does
      not respond to an Annual Questionnaire regarding items (i) and
      (ii).

	
      4.2
	
      Time
      and Form of Payment of Benefits.

	 	
      (a)
	
      Commencement
      of Benefits.
      Benefit payments shall commence as soon as practicable after an Employee
      separates from service with the Corporation; provided, however, that the
      portion of a Specified Employee's benefit that was not vested within the
      meaning of Code Section 409A on December 31, 2004, may not be made before
      the date which is six months after the date of separation from
      service.

	 	
      (b)
	
      Single
      Life Annuity.
      Except as provided in Section 4.2(c), an Employee entitled to a Basic
      Benefit or an Alternative Benefit will receive a benefit determined in
      accordance with Sections 4.1(a) or (c) in the form of a single life
      annuity for the Employee's lifetime.

	 	
      (c)
	
      Automatic
      Survivor Benefit.
      

	 	
      (1)
	
      Basic
      Benefit.
      An Employee who has a Spouse who is otherwise eligible for survivor
      benefits under the SRP or the Cash Balance Plan, will receive a benefit
      determined in accordance with Section 4.1(a) and (b) in the form of a
      Joint and Survivor Annuity.

	 	
      (2)
	
      Alternative
      Benefit.
      An Employee who (i) has attained age 62 or such earlier age specified in a
      special separation program, (ii) has been credited with 10 or more years
      of Credited Service, and (iii) on the date Alternative Benefits begin, has
      a Spouse who is otherwise 

9

	 	
       
	
      eligible
      for survivor benefits under the SRP or the Cash Balance Plan, will receive
      a benefit determined in accordance with Sections 4.1(c) and (d) in the
      form of a Joint and Survivor Annuity.

 

	
      4.3
	
      Pre-Retirement
      Surviving Spouse Benefit.

The
Pre-Retirement Surviving Spouse Benefit payable to an eligible Spouse shall
equal the amount that the Spouse would have been entitled to receive under the
Joint and Survivor Annuity if the Employee had retired with an immediate Joint
and Survivor Annuity on the day before his death. In the event that an Employee
is eligible for both a Basic Benefit and an Alternative Benefit on his date of
death, the Pre-Retirement Surviving Spouse Benefit will equal the Pre-Retirement
Surviving Spouse Benefit based on the Employee's Basic Benefit or Alternative
Benefit, whichever is greater.

10

ARTICLE
V

ADMINISTRATION

	
      5.1
	
      Management
      Benefits Committee.

The
Compensation Committee shall appoint a Management Benefits Committee for the
Plan.

	 	
      (a)
	
      Appointment
      and Removal of Management Benefits Committee.
      The Management Benefits Committee shall consist of three or more
      individuals appointed by, and serving at the discretion of, the
      Compensation Committee. A member of the Management Benefits Committee may
      (i) resign upon 30 days written notice to the Compensation Committee, or
      (ii) be removed from the Management Benefits Committee at any time at the
      discretion of the Compensation Committee.

	 	
      (b)
	
      Decisions
      by Management Benefits Committee.
      The Management Benefits Committee shall act by majority vote either at a
      meeting of the Management Benefits Committee or by written consent.
      Meetings may be attended telephonically.

	 	
      (c)
	
      Authority.
      The Management Benefits Committee shall have the following duties and
      authority under the Plan.

	 	
      (1)
	
      Compliance.
      The Management Benefits Committee shall monitor the performance of the
      Plan to ensure that the Plan is administered in accordance with its terms
      and in compliance applicable law or
regulation.

	 	
      (2)
	
      Discretionary
      Authority.
      The Management Benefits Committee shall have full and exclusive
      discretionary authority to determine all questions arising in the
      administration, application and interpretation of the Plan including the
      authority to correct any defect or reconcile any inconsistency or
      ambiguity in the Plan and the authority to determine an Employee's or
      other individual’s eligibility to receive a benefit from the Plan and the
      amount of that benefit. The Management Benefits Committee shall determine
      all Claims appeals as set forth in Section 6.4 of this Plan and shall have
      the authority to determine all questions of fact relating to such an
      appeal. Any determination by the Management Benefits Committee pursuant to
      this Section 5.1(c)(2) or the Claims Procedure shall be binding and
      conclusive on all parties.

 

11

	 	
      (3)
	
      Plan
      Amendments.
      The Management Benefits Committee shall have the authority to make such
      Plan amendments as are administrative in nature so long as such amendments
      do not have a material adverse financial impact on the Corporation.
      

	 	
      (4)
	
      Adoption
      of Plan.
      The Management Benefits Committee may provide for the adoption of the Plan
      by an affiliated employer pursuant to such terms and conditions as the
      Management Benefits Committee, in its discretion, may determine. The
      Management Benefits Committee shall have the right to remove an affiliated
      employer as a Plan sponsor if, in its discretion, it deems such removal to
      be appropriate. 

	
      5.2
	
      Administrator.

The
Corporation shall be the Plan Administrator. The American Axle &
Manufacturing, Inc. Corporate Benefits Group shall act on its behalf and perform
the duties of the Administrator as set forth herein. The Administrator shall
administer the Plan in accordance with all applicable laws and regulations and,
except as otherwise expressly provided to the contrary herein, shall have all
powers and discretionary authority to carry out that obligation. Specifically,
but not by way of limitation, the Administrator shall:

	 	
      (a)
	
      Procedures
      and Forms.
      Establish such administrative procedures and prepare, or cause to be
      prepared, such forms, as may be necessary or desirable for the proper
      administration of the Plan;

	 	
      (b)
	
      Advisors.
      Retain the services of such consultants and advisors as may be appropriate
      to the administration of the Plan;

	 	
      (c)
	
      Claims.
      Have the discretionary authority to determine all claims filed pursuant to
      Section 6.2 of this Plan and shall have the authority to determine issues
      of fact relating to such claim; 

	 	
      (d)
	
      Payment
      of Benefits.
      Direct, or establish procedures for, the payment of benefits from the
      Plan; and

	 	
      (e)
	
      Plan
      Records.
      Maintain, or cause to be maintained, all documents and records necessary
      or appropriate to the maintenance of the
Plan.

	
      5.3
	
      Compensation.

Members
of the Management Benefits Committee and the Plan Administrator shall serve
without compensation from the Plan for their services as such.

 

12

 

	
      5.4
	
      Agent
      for Service of
Process.

The
Administrator shall be the agent for service of process on the Plan. If the
Corporation is the Administrator, the agent for service of process on the
Corporation shall be the agent for service of process on the Plan.

	
      5.5
	
      Indemnification.

The
Corporation shall indemnify each member of the Compensation Committee, the
Management Benefits Committee, the Administrator and individuals employed by,
and acting on behalf of, the Plan Administrator from and against any and all
claims, losses, damages, expenses and liability arising from their acts or
failure to act with regard to the Plan and their duties and obligations as set
forth herein unless such acts or omissions are judicially determined to be the
result of such individual’s gross negligence, willful misconduct or criminal
act. 

 

13

ARTICLE
VI

CLAIMS
PROCEDURE

 

	
      6.1
	
      Claims.

A person
who believes that he or she is being denied a benefit to which he or she is
entitled under the Plan (hereinafter referred to as a "Claimant") may file a
written request for such benefit with the Management Benefits Committee, setting
forth his or her claim. The request must be addressed to the Management Benefits
Committee at the Corporation's principal place of business. 

 

	
      6.2
	
      Claim
      Decision.

The
Management Benefits Committee shall provide written notice to any Claimant who
submits a claim for benefits within 90 days (45 days in case of a disability
benefit) of the receipt of the claim, unless special circumstances (which, in
the case of disability benefits, must be beyond the control of the Plan) require
an extension. The extension shall not exceed 90 days (30 days in case of a
disability benefit) beyond the initial 90-day (or 45-day) period. If an
extension is necessary, the Claimant shall receive a notice, before the initial
90-day (or 45-day) period expires, which explains why the extension is necessary
and when a decision on the claim is expected. In the case of a disability
benefit, if, prior to the end of the extended review period, the Management
Benefits Committee determines that, due to matters outside the control of the
Plan, a decision cannot be rendered within the extension period, the period for
making a determination may be extended for an additional 30 days, provided the
Management Benefits Committee notifies the Claimant before the expiration of the
first extension period of the circumstances requiring the extension and the date
the Plan expects to render a decision. In the case of either the first or second
extension of the review period, the notice to the Claimant must explain the
standards on which entitlement to the benefit is based, the unresolved issues
that prevent a decision, and the additional information needed to resolve the
issues. The Claimant shall have 45 days within which to provide the specified
information.

The
Management Benefits Committee shall provide, in a written or electronic notice
to all Claimants who are denied a claim for benefits, the following information
written in a manner calculated to be understood by the Claimant:

	 	
      (a)
	
      The
      specific reason or reasons for denial;

	 	
      (b)
	
      Specific
      reference to pertinent Plan provisions on which the denial is
      based;

	 	
      (c)
	
      A
      description of any additional material or information necessary for the
      Claimant to perfect the claim and an explanation of why such material or
      information is necessary; 

14

	 	
      (d)
	
      An
      explanation of the Plan's claim review procedures and the time limits
      applicable to such procedures including, a statement that the Claimant is
      entitled to receive, upon request and free of charge, reasonable access to
      and copies of, all documents, records and other information relevant to
      the Claimant’s claim for benefits; and

	 	
      (e)
	
      A
      statement of the Claimant’s right to bring a civil action under ERISA
      Section 502(a) following an adverse benefit determination on
      review;

	
      6.3
	
      Request
      for Review.

A
Claimant whose claim has been denied may request a review by the Management
Benefits Committee by making written application within 90 days after the
receipt of written notification of a denial of a claim. The Claimant may submit
written comments, documents, records and other information relating to the claim
for benefits.

	
      6.4
	
      Review
      of Decision.

The
Management Benefits Committee’s decision on review shall take into account all
comments, documents, records and other information submitted as part of the
request for review, whether or not submitted as part of the initial benefit
determination. 

The
decision on review shall be made within 60 days after the receipt of a request
for review, unless special circumstances require an extension period. The
extension shall not exceed 120 days from the request for review. If
circumstances require an extension, the Claimant shall receive a notice before
the initial 60-day period expires, which explains why the extension is necessary
and when a decision on review is accepted. The decision on review shall be
provided in a written or electronic notice, shall be written in a manner
calculated to be understood by the Claimant, and in the event of an adverse
determination shall include:

	 	
      (a)
	
      The
      specific reason or reasons for the adverse
  determination;

	 	
      (b)
	
      Specific
      references to pertinent Plan provisions on which the denial is
      based;

	 	
      (c)
	
      A
      statement that the Claimant is entitled to receive, upon request and free
      of charge, reasonable access to and copies of, all documents, records and
      other information relevant to the Claimant’s claim for benefits;
      and

	 	
      (d)
	
      A
      statement of the Claimant's right to bring an action under ERISA Section
      502(a);

 

15

ARTICLE
VII

MISCELLANEOUS

	
      7.1
	
      Not
      Contract of Employment.

The
adoption and maintenance of the Plan shall not be deemed to be a contract
between the Corporation and any person or to be consideration for the employment
of any person. Nothing herein contained shall be deemed to give any person the
right to be retained in the employ of the Corporation or to restrict the right
of the Corporation to discharge any person at any time nor shall the Plan be
deemed to give the Corporation the right to require any person to remain in the
employ of the Corporation or to restrict any person's right to terminate his or
her employment at any time.

	
      7.2
	
      Non-Assignability
      of Benefits.

No
Employee or other distributee of benefits under the Plan shall have any power or
right to transfer, assign, anticipate, hypothecate or otherwise encumber any
part or all of the amounts payable hereunder, which are expressly declared to be
unassignable and non-transferable. Any such attempted assignment or transfer
shall be void. No amount payable hereunder shall, prior to actual payment
thereof, be subject to seizure by any creditor of any such Participant or
beneficiary for the payment of any debt judgment or other obligation, by a
proceeding at law or in equity, nor transferable by operation of law in the
event of the bankruptcy, insolvency or death of such Participant or beneficiary
hereunder.

	
      7.3
	
      Withholding.

All
deferrals and payments provided for hereunder shall be subject to applicable
withholding and other deductions as shall be required under any applicable
local, state or federal law.

	
      7.4
	
      Amendment
      and Termination.

	 	
      (a)
	
      Board
      of Directors.
      The Board of Directors shall have the right to amend, in whole or in part,
      any or all of the provisions of the Plan or to terminate the Plan at any
      time and without the consent of any other party or
  person.

	 	
      (b)
	
      Management
      Benefits Committee.
      The Management Benefits Committee shall have the right, at any time,
      without the consent of any other party or person, to modify or amend any
      or all of the provisions of the Plan, but only to the extent provided in
      Section 5.1(c).

	 	
      (c)
	
      Limitations.
      Except as provided in Section 4.1(d)(3), no amendment or termination of
      this Plan shall impair the rights of an Employee to the extent earned as
      of the date of amendment or termination.

16

	
      7.5
	
      No
      Fiduciary Relationship Created.

Nothing
contained in this Plan, and no action taken pursuant to its provisions by any
party hereto, shall create, nor be construed to create, a fiduciary relationship
between the Corporation, the Board of Directors, any officers of the
Corporation, the Compensation Committee, the Management Benefits Committee and
the Employee or any other person.

	
      7.6
	
      Unsecured
      General Creditor Status of
Employee.

	 	
      (a)
	
      The
      payments to a Participant, his or her Beneficiary or any other distributee
      hereunder shall be made from assets which shall continue, for all
      purposes, to be a part of the general, unrestricted assets of the
      Corporation; no person shall have nor acquire any interest in any such
      assets by virtue of the provisions of this
Plan.

	 	
      (b)
	
      The
      Corporation's obligation hereunder shall be an unfunded and unsecured
      promise to pay money in the future. To the extent that the Employee or
      other distributee acquires a right to receive payments from the
      Corporation under the provisions hereof, such right shall be no greater
      than the right of any unsecured general creditor of the Corporation; no
      such person shall have nor require any legal or equitable right, interest
      or claim in or to any property or assets of the Corporation. 

	
      7.7
	
      Severability.

If any
provision of this Plan shall be held illegal or invalid for any reason, said
illegality or invalidity shall not affect the remaining provisions hereof;
instead, each provision shall be fully severable and the Plan shall be construed
and enforced as if said illegal or invalid provision had never been included
herein.

	
      7.8
	
      Governing
      Laws.

All
provisions of the Plan shall be construed in accordance with the laws of
Michigan except to the extent preempted by federal law.

	
      7.9
	
      Binding
      Effect.

This Plan
shall be binding on each Participant and his or her heirs and legal
representatives and on the Corporation and its successors and
assigns.  

	
      7.10
      
	
      Number
      and Gender.

Wherever
appropriate herein, words used in the singular shall be considered to include
the plural and words used in the plural shall be considered to include the
singular. The masculine gender, where appearing in the Plan, shall be deemed to
include the feminine gender.

17

 

	
      7.11
	
      Headings.

The
headings of Articles and Sections herein are included solely for convenience,
and if there is any conflict between such headings and the text of the Plan, the
text shall control.

	
      7.12
	
      Entire
      Agreement.

This
document and any amendments contain all the terms and provisions of the Plan and
shall constitute the entire Plan, any other alleged terms or provisions being of
no effect.

IN
WITNESS WHEREOF, the
Corporation has adopted this amended and restated Plan on the 22nd day of July,
2005.

AMERICAN
AXLE & MANUFACTURING, INC.

By:   /s/ John
E.
Jerge          

Its

ATTESTED
TO:

 
/s/ Patrick S.
Lancaster          

 

Secretary

 

 

18Filed by Automated Filing Services Inc. (604) 609-0244 - Reg U.S., Inc. - Patent License Agreement

DISTRIBUTOR AGREEMENT

THIS AGREEMENT made as of the _____day of ___________,
2005.

BETWEEN:

  
    
      
        
          REGI U.S., INC., an Oregon corporation, 

            Having an office at #1103, 11871 Horseshoe Way, 

            Richmond, B.C. Canada V7A 5H5 

          (hereinafter referred to as "Distributor")

        

      

    

  

OF THE FIRST PART 

AND: 

  
    
      
        
          ANUVU INCORPORATED, a California corporation
            

            Having an office at 3980 Research Drive 

            Sacramento, CA 95838 

          (hereinafter referred to as "Patent Holder")
          

        

      

    

  

OF THE SECOND PART

WITNESSETH

WHEREAS:

	 	A. 	PATENT HOLDER holds the sole and exclusive rights
        throughout the United States to the use of the Technology hereinafter
        described; 

	 	 	 
	 	B. 	PATENT HOLDER is a provider of services, systems
        and equipment to or for the benefit of the “Patent Holder’s
        Fuel Cell Technology”; 

	 	 	 
	 	C. 	DISTRIBUTOR has examined certain preliminary information
        of technical data provided to it by PATENT HOLDER concerning the Technology
        and wishes to obtain an exclusive distributorship for Canada and an option
        to purchase the same for Europe. 

NOW THEREFORE in consideration of the premises and the mutual
covenants, conditions and agreements hereinafter set out and other good and
valuable consideration not recited herein, the parties hereto agree as
follows:

Article I — Definitions

The following terms (except as otherwise expressly provided or
unless, the context otherwise requires) for all purposes of this Agreement shall
have the following respective meanings (it being understood that the terms
defined in this Agreement shall include in the singular number the plural, and
in the plural number the singular).

1.01      “Affiliate” shall
mean any corporation or other entity which either directly or indirectly
controls a party to this Agreement, is controlled by such party, or is under
common control with such party. As used here, the term “control” means
possession of the power to direct or cause the direction of the management and
policies of a corporation or other entity, whether through the ownership of
voting securities, by contract or otherwise.

1.02       “Agreement”
shall mean this Agreement, including all exhibits and schedules annexed to this
Agreement.

1.03       “Distributorship
Patents” “Patents” means the Patents described in Schedule “A” hereto and
all other patents and patent applications of all countries which contain claims
covering one or more features 

	Distributorship Agreement 	Page 1 of 11 

of the Technology and which are based on Inventions conceived,
  acquired or reduced to practice by or on behalf of PATENT HOLDER and includes
  any and all renewals, divisions, continuations, continuations-in-part, reissues,
  extensions, additions, corresponding international patent applications, and
  any and all future patent applications, and any and all future patent applications
  on patents issues in respect thereof. 

1.04       “Products”
  “Product” means any product, heretofore or hereafter existing, which
  utilizes, embodies or is based on the Patent Holder Fuel Cell Technology.

1.05       “Territory”
shall mean Canada and Europe (Europe to be defined as the member nations of the
European Union as of the date of this document).

1.06       “Invention”
means discoveries, concepts, and ideas, whether patentable or not, including but
not limited to processes, methods, formulae and techniques as well as
improvements thereto and extensions thereof.

1.07       “Know-how”
includes all technical information, trade secrets, procedures, composition,
processes, methods, practices, diagrams, drawings, specifications, blue-prints,
plans, materials, documents, manuals and data relating to the design,
manufacture, production, distribution and testing of a products or
Invention.

1.08       “Party” means
each of DISTRIBUTOR and PATENT HOLDER, and “Parties” means both DISTRIBUTOR and
PATENT HOLDER.

1.09       “Prototype”
means a fully functional prototype of a fuel cell prototype which utilizes and
embodies the Technology.

1.10       “Technology”
means the technology which is the subject of the Patents and all other
knowledge, Know-how and Inventions owned, controlled, developed or acquired by
or on behalf of PATENT HOLDER relating thereto, including without limitation the
composition, formulation, construction, characteristics, uses and physical
manifestations thereof.

Article II — Grant of Distributorship

2.01       Distributorship
Patents. Patent Holder hereby grants and agrees to grant Distributor and its
Affiliates, and Distributor and its Affiliates accept, an exclusive
distributorship, under the Distributorship in the Territory with the right to
grant subdistributorships, to use and sell the technology and to use, sell and
have sold the Products in the Territory. The distributorship shall include, but
not be limited to, all products and devices presently and in the future
conceived and developed by Patent Holder, as well as all improvements on
existing technology, devices and products for an payment in the amount of One
Hundred Thousand Dollars ($100,000.00) as defined in Article III, and an
additional payment on or before July 31, 2005 of One Hundred Thousand Dollars
($100,000.00), totaling Two Hundred Thousand Dollars ($200,000.00) as payment in
full for the Canadian Distributorship.

2.01(a) Patent Holder agrees to grant to Distributor an option
to an exclusive Distributorship Agreement for Europe as part of this Agreement
and Distributor may exercise a set option for the European Distributorship for
payments of Three Hundred Thousand Dollars ($300,000.00) of which One Hundred
and Fifty Thousand Dollars ($150,000.00) is to be paid within 90 days from the
date of this Agreement and the final payment of One Hundred and Fifty Thousand
Dollars ($150,000.00) is to be paid on or before November 30, 2005. Distributor
agrees to issue 200,000 treasury shares of REGI U.S., INC. upon confirmation of
acceptance of the European fuel cell technology patents contemplated to be
applied for in section 2.01 (b) .

2.01(b) Patent Holder agrees to use its best efforts to submit
  a patent application for Canada and Europe based on the current fuel cell technology
  claims set forth in claims of the U.S. Patents Pending held by the Patent Holder
  before the deadline date by the said Patent Office. Patents will be owned by
  Patent Holder 

	Distributorship Agreement 	Page 2 of 11 

and used exclusively in the Territory by the Distributor during
the term of this Agreement. Patent Holder and Distributor agree to file the
Canadian Patent Application on or before November 7, 2005.

2.01(c) Upon approval of Patent Holder’s Secured Lender, this
Agreement automatically converts into a license agreement: Patent Holder agrees
that upon Patent approval the distribution rights will be transferred into a
Patent License Agreement upon the written consent of Distributor. The terms and
conditions of the License Agreement will be mutually agreed upon in a new Patent
License Agreement. In addition, in the event the secured lenders’ note in the
amount of $3,500,000.00 is retired this Distribution Agreement automatically
converts to a Patent License Agreement.

2.01(d) Patent Holder agrees to issue two (2) warrants of Anuvu
to Distributor in consideration for each US$1.00 payment to Patent Holder,
pursuant to paragraph 2.01 and 2.01(a) of this Agreement, in additional
consideration for payments under this Agreement. Warrants to be issued within 60
days of the completion of the payments for each Distributorship. Each warrant
will entitle Distributor to purchase one (1) treasury share of Anuvu for US$0.01
for a period of one year from the date of payment.

2.01(e) Patent Holder agrees to build a working fuel cell model
prototype for Distributor for demonstration purposes in a vehicle in Canada. The
vehicle to be selected by consent of both Patent Holder and Distributor, to be
completed within 90 days of payment for the Canadian exclusive license.
Distributor to pay all costs associated with prototype including hardware,
labor, overhead, export duties and licensing fees. Costs to be agreed upon by
both parties before work is to commence. 

2.01(f) Upon approval of Patent Holder’s Secured Lender and
based on Distributor paying the license fees for one or more countries noted in
paragraph 2.01 and 2.01(a), Patent Holder will grant the sole and exclusive
right and license, for each country paid by Distributor, to use the Technology
for the purposes of manufacturing for the purposes of manufacturing products in
Canada, Europe and the sole and exclusive right to sell, sublicense and
distribute such products to the countries that Distributor make the agreed
payments to subject to a five percent (5%) net royalty. Patent Holder will
continue to develop the Technology for Distributor, on behalf of its customers
and contacts, under the license agreement for those countries for a period of
five (5) years, and renewable for an additional five (5) years based on the
election of Distributor.

2.01(g) Distributor will agree to pay for the patent
application costs and associated legal fees for Canada and Europe.

2.01(h) Patent Holder agrees that Distributor will have a 30
day first refusal to purchase Anuvu shares in event the additional shares to be
issued or purchased by Anuvu for any reason at the same price that any investor
may agree to pay/sell for the said shares for a period of 6 months.

2.01(i) Patent Holder will agree to work on the Rand CamTM
technology projects as required by Distributor, under a contract basis.

2.01(j) Transfer of Product from Patent Holder to Distributor
will occur by way of a purchase order being submitted by Distributor to Patent
Holder that will define prices, delivery dates, freight charges, taxes, tariffs,
export issues and payment terms. 

2.02       Trademarks.
Distributor and its Affiliates shall be free to sell products using the
Distributorship Patents, and shall be free to Register trademarks and tradenames
with respect to such products under any trademark selected or Registered by
Distributor or any of its Affiliates in any country in the Territory, and all
trademarks, tradenames, slogans, logos, trade dress and goodwill owned or
developed by Distributor or associated with the Distributorship Patents shall be
the sole and exclusive property of Distributor or its Affiliates.

2.03       Right of First
  Refusal on Technology. Upon approval of Patent Holder’s Secured Lender,
  Patent Holder hereby grants to Distributor and its Affiliates a right of first
  refusal to exclusively use, manufacture, develop, sell, market and distribute
  products based on new patents and applications for 

	Distributorship Agreement 	Page 3 of 11 

patents, improvements, technology, products, devices, know-how,
inventions, ideas, methods, processes and concepts, which are owned or developed
by Patent Holder and are not included in the Distributorship Patents (“New
Technology”) in consideration for 100,000 treasury shares of REGI U.S.,
INC.. At the time when Patent Holder develops any such New Technology, Patent
Holder shall offer to Distributor, in writing, the right to use, manufacture,
develop, sell, market, and distribute products based on such New Technology,
describing in sufficient detail the nature of such New Technology. Distributor
and Patent Holder shall discuss the offer, negotiating its terms in good faith,
and Patent Holder shall memorialize an offer to Distributor in writing based on
such discussions (“Offer”). From the date the Offer is received,
Distributor shall have sixty (60) days within which to accept the Offer which
acceptance shall also be in writing. If Distributor declines the Offer, Patent
Holder shall be free to solicit other interest in the New Technology proposed.
However, prior to licensing any such New Technology to a third party, Patent
Holder shall offer Distributor in writing the same terms and conditions on which
the proposed distributorship to the third party is based and Distributor shall
have thirty (30) days in which to meet the terms and conditions of such proposed
distributorship, which shall be done in writing.

Article Ill — Royalties

3.01       Royalties.
Distributor shall pay Patent Holder a royalty of five percent (5%) of the
Adjusted Gross Sales Price of any Products sold by Distributor or its Affiliates
for which Distributor receives payment (“Royalties”). “Adjusted Gross Sales
Price” shall mean the gross sales price of any Products sold less returns and
reasonable actual discounts or rebates.

3.02       Payment of
Royalties. Distributor shall pay Patent Holder the Royalties on the first
day of the first month of each calendar quarter during the Term.

3.03       Adjustment of
Royalties. Distributor shall have the right to decrease the Royalties
formula if (i) products similar to the Products have come to market in any
particular country of the Territory, and (ii) the total market share of all such
products, even if manufactured by different companies, which are similar to any
of the Products is thirty percent (30%) or more. The adjustment in the Royalties
formula shall be negotiated in good faith between Distributor and Patent Holder.
In the event no agreement is reached within ten (10) days after adjustment is
requested by Distributor, then the parties shall submit the issue of Royalties
formula adjustment, pursuant to this Paragraph 3.03, for final resolution to the
American Arbitration Association, in accordance with its Commercial Rules, whose
determination shall be final and binding on Distributor and Patent Holder.

3.04       Inspection.
Patent Holder shall be permitted at reasonable times, and upon at least three
(3) days prior written notice to Distributor, to inspect the books and records
of Distributor as such relate to sales of the Products for the purpose of
determining the accuracy of the Royalties paid to Patent Holder pursuant to this
Article III.

3.05       Conversion from
Distributor Agreement to License Agreement. Upon approval of Patent Holder’s
Secured Lender, this Agreement automatically converts into a License
Agreement.

Article IV — Product Development, Inspections and
Audits

4.01       Product
Development

	 	(a) 	Patent Holder shall have the responsibility for,
        and shall use its utmost best efforts is and entire human and economic
        resources exclusively for, developing commercially viable products and
        product prototypes using the Distributorship Patents (“Product
        Development”) improving the Distributorship Patents and developing
        new technology and new patents. The advance royalties will be used by
        Patent Holder for Product Development, including building a working fuel
        cell model prototype for Distributor. 

	Distributorship Agreement 	Page 4 of 11 

	 	(b) 	Distributor shall, market, use, sell and distribute
        the Products within the Territory. Upon conversion to a licensing agreement
        Distributor shall have the right to manufacture the Products within the
        Territory. Patent Holder shall disclose to Distributor all information
        concerning the Distributorship Patents and Products, and all information
        concerning Product Development as required by Distributor, including but
        not limited to proprietary engineering, design, clinical and technical
        data, methods, processes which is necessary for evaluation or production
        of the Products, whether presently within the knowledge and possession
        of Patent Holder and its employees or which comes within the knowledge
        and possession of Patent Holder and its employees in the future and during
        the Term of this Agreement. Patent Holder shall fully cooperate with Distributor,
        in the event Distributor elects to test any of the products and product
        prototypes developed by Patent Holder using the Distributorship Patents,
        including but not limited to Institutional Review Board testing and other
        formal and informal testing procedures. 

	 	 	 
	 	(c) 	Nothing in this Paragraph 5.01 shall preclude Distributor
        from using third parties under a subdistributorship or by contract to
        manufacture, market, and distribute the Products. 

4.02       Inspections
and Board Member.

	       	(a)       	Distributor shall
        have the right to have its representatives inspect and audit the Patent
        Holder facilities, premises, and books and records as reasonably required
        by Distributor. Patent Holder shall cooperate with Distributor fully in
        all such inspections and audits. 

	 	 	 
	 	(b) 	Patent Holder shall, within
        30 days of the date of this agreement, present to Distributor a voting
        agreement based on the approval of the Patent Holder’s shareholders
        which will give Distributor the right during the Term to designate one
        member of the Patent Holder Board of Directors to be voted by the shareholder’s
        by way of the voting agreement. 

Article V — Representations and Warranties

5.01      Representations and
Warranties of Patent Holder. Patent Holder hereby represents and warrants the
following to Distributor as of the date of this Agreement:

	 	(a) 	Patent Holder is a corporation duly organized, validly
        existing and in good standing under the laws of the State of California.
      

	 	 	 
	 	(b) 	Patent Holder has full corporate power and authority
        to enter into and perform this Agreement. The execution, delivery and
        performance of this Agreement by Patent Holder have been duly authorized
        by all requisite corporate action. A Board of Directors’ resolution
        approving the execution, delivery and performance of this Agreement is
        annexed to this Agreement as Exhibit B. 

	 	 	 
	 	(c) 	Patent Holder is the sole owner of all right, title
        and interest in and to the distributorship Patents, and Patent Holder
        has legal power, authority and right to grant the exclusive distributorship
        under the Distributorship Patents. 

	 	 	 
	 	(d) 	To Patent Holder’s knowledge, there are no patents
        owned by others and no other proprietary rights or property of others
        which would be infringed or misused by Distributor or its Affiliates or
        subdistributors as a result of their exercise of the rights in and to
        the Distributorship Patents and the products granted by this Agreement.
      

	 	 	 
	 	(e) 	There are no actions, suits, or claims pending against
        Patent Holder or its Affiliates in 

	Distributorship Agreement 	Page 5 of 11 

	 		any court or by or before any governmental body or
        agency with respect to the Distributorship Patents or Products, and to
        the best of Patent Holder’s knowledge, no such actions, suits or
        claims have been threatened against Patent Holder or its Affiliates other
        than those in Exhibit C (ASK Note). 

	 	 	 
	 	(f) 	Patent Holder has no knowledge of any infringement
        of the Distributorship Patents or knowledge of any claim or allegation,
        or any basis thereof, of patent infringement or misuse of any confidential
        information with regard to the Distributorship Patents or Products. 

	 	 	 
	 	(g) 	No other person or organization presently has any
        effective assignment, option, distributorship or subdistributorship under
        the Distributorship Patents or with respect to the manufacture, use or
        sale of the Products or other products using the Distributorship Patents
        with in the Territories. 

	 	 	 
	 	(h) 	The Distributorship Patents include all of the patents,
        applications for patents, improvements, technology, products, foreign
        counterparts and extensions thereof, know-how, inventions, ideas, concepts,
        methods and processes presently owned, used or developed by Patent Holder
        in the development of fuel cell technology. 

	 	 	 
	 	(i) 	Patent Holder’s facilities, equipment and operations
        are in material compliance with all applicable laws and regulations in
        the United States. Patent Holder holds all material distributorships,
        permits and other governmental authorizations necessary or required by
        Patent Holder to conduct its operations and business in the manner presently
        conducted in the United States. 

5.02      Representations and
Warranties of Distributor. Distributor hereby represents and warrants the
following to Patent Holder as of the date hereof:

	 	(a) 	Distributor is a corporation duly organized and validly
        existing under the laws of the State of Oregon. 

	 	 	 
	 	(b) 	Distributor has full corporate power and authority
        to enter into and perform this Agreement. The execution, delivery and
        performance of this Agreement by Distributor have been duly authorized
        by all requisite corporate action. 

	 	 	 
	 	(c) 	Distributor has the financial resources to make all
        payment in a timely manner based on the dates with in this document. 

	 	 	 
	 	(d) 	Distributor upon execution of this Agreement will
        actively engage in the distribution, marketing or manufacturing of other
        PEM Fuel Cell Stack technology. 

5.03      Survival. The
foregoing representations and warranties of the parties shall survive
termination or expiration of this Agreement.

Article VI — Indemnification

6.01      Patent Holder Indemnification.
  Patent Holder shall indemnify and hold Distributor harmless against any and
  all liabilities, damages, losses, costs, expenses, claims, suits, recoveries
  and judgments (including attorneys’ fees and expenses) of Distributor,
  its Affiliates or any third party resulting from or arising out of (i) a breach
  of Patent Holder of any of its obligations, covenants or agreements under this
  Agreement, (ii) the failure of any of the representations and warranties made
  by Patent Holder under this Agreement to be true and correct as of the date
  hereof, (iii) any act or omission on the part of Patent Holder or any of its
  employees or Affiliates or agents in the performance of this Agreement, and
  (iv) patent infringement claims relating to the Distributorship Patents, to
  the extent provided in Article VIII of this Agreement below.

	Distributorship Agreement 	Page 6 of 11 

Article VII — Patent Prosecution and Infringement

7.01      Prosecution. Patent
Holder shall keep Distributor currently advised of all steps taken or to be
taken in the prosecution of all applications for patents and improvements
included in the Distributorship Patents, and shall furnish Distributor with
copies of all such patent applications promptly after filing. Distributor shall
be responsible for all fees with respect to such patent applications and all
fees necessary for the maintenance of the Distributorship Patents in the
Territory. Patent Holder shall consult with Distributor with respect to the
prosecution of such patent applications or patents resulting therefrom.

 7.02      Infringement
Actions.

	         	(a)         	Distributor and
        Patent Holder shall each promptly notify the other following the discovery
        of any infringement of the Distributorship Patents or unauthorized use
        of the Products which may come to their attention. Patent Holder shall
        promptly make all efforts to obtain a discontinuance of the infringement
        and, if not successful, Patent Holder shall bring suit against the infringer.
      

	 	 	 
	             
         	(b)          
            	If Patent Holder
        falls to obtain a discontinuance of such infringement or unauthorized
        use and/or fails to bring an infringement suit within thirty (30) days
        after discovery of such infringement or unauthorized use (“Initial
        Period”), then Patent Holder shall give notice in writing to
        Distributor within fifteen (15) days following the Initial Period of such
        failure, and Distributor may, but is not required to, obtain a discontinuance
        of the alleged infringement or unauthorized use or bring an infringement
        suit. Any infringement suit brought by Distributor shall be in the name
        of Patent Holder or Distributor, or jointly in the name of Patent Holder
        and Distributor, as Distributor shall elect in its sole discretion, or
        as required by the law of the forum. 

	 	  	  
	             
             	(c)          
              	With respect to
        any suit for infringement of the Distributorship Patents or unauthorized
        use of the Products, the party that did not institute suit shall render
        all reasonable assistance to the party that did institute suit including,
        but not limited to, executing all documents as may be reasonably requested
        by the party that did institute suit. In the event Distributor institutes
        suit, Distributor shall be entitled to reimbursement from Patent Holder
        for all of its reasonable attorneys’ fees, costs and expenses, including
        the expenses   of any expert witnesses that may be retained (“Infringement
        Expenses”), which Patent Holder shall pay upon demand from Distributor,
        and Distributor may deduct such Infringement Expenses from any and all
        sums, including Royalties, which Distributor owes Patent Holder, on a
        first priority basis. 

7.03      Infringement of Third
Party Patents. Each party shall notify the other promptly in the event of
the receipt of notice of any action, suit or claim alleging infringement by the
manufacture, use or sale of the Products, or of any patent or proprietary right
held or alleged to be held by a third party. Patent Holder shall indemnify and
hold Distributor, its Affiliates and subdistributors, harmless from all damages,
losses, costs, expenses, claims, suits, recoveries and judgments (including
attorneys’ fees, expenses, costs and expert witness fees) related thereto. This
indemnification obligation shall survive the termination of this Agreement.

7.04      Offset. In the event
  it is necessary, in Distributor’s judgment, for Distributor to make royalty
  or other payments to a third party in order for Distributor to exercise or continue
  to exercise any rights granted to Distributor pursuant to the terms of this
  Agreement in relation to the Distributorship Patents and Products, Distributor
  shall be entitled to offset any amounts so paid to any third party against amounts
  due or which may become due to Patent Holder under this Agreement if Distributor
  give notice 

	Distributorship Agreement 	Page 7 of 11 

to Patent Holder of such third party claim 60 days before any
offset cost adjustments are made and Patent Holder has ability to make other
arrangements with third party.

Article VIII — Confidentiality

8.01      “Confidential Information”
means:

	     	(a)     	all written information (including
        information orally disclosed but promptly thereafter reduced to writing)
        that is marked as “Confidential” by a Party (in this section
        8.1, the “Discloser”); and 

	 	 	 
	           	(b)         	all information not generally
        known to the public, whether disclosed orally or in any tangible form
        (including magnetic or electronic), relating to any technology, products,
        processes and concepts created, developed or acquired by or on behalf
        of the Discloser or its affiliates, including but not limited to patents
        and patent applications, Inventions, Know-how, prototypes, samples, research
        and manufacturing processes; but shall not include information that: 

	 	 	 
	   	(c)   	is, or becomes generally know
        to the public, through no wrongful act of the other Party (in this Section
        8.1, the “Recipient”); 

	 	 	 
	     	(d)     	can be shown by documentation
        to have been rightfully received by the Recipient from a third party who
        is free to disclose it without obligation to the Discloser and who did
        not acquire such information by a wrongful act; or 

	 	 	 
	   	(e)   	can be shown by documentation
        to have been independently developed by the receiving Party without reference
        to any other Confidential Information. 

8.02      During the Term and for a
period of five (5) years thereafter, each of the parties and their respective
employees, agents, directors, officers, Affiliates and subdistributors shall
hold in confidence all confidential or proprietary information of the other
party disclosed hereunder (“Information”) except for and to the extent
that such Information (i) is or becomes generally available to the public
through no fault of the receiving party; (ii) can be demonstrated in writing to
have been known by the receiving party at the time of its disclosure by the
other party or is independently developed after the date of disclosure by the
receiving party without the application or use of the Information; (iii) becomes
known to the other party from a source other than the disclosing party without
breach of this Agreement by such party, provided, that such other source has the
lawful right to disclose such Information, or (iv) is disclosed pursuant to a
final, binding, nonappealable order or requirement of a court, administrative
agency or other government body.

8.03      Each Party acknowledges that
in the course of carrying out this Agreement, it may be provided with access to
and be entrusted with Confidential Information of the other Party, the
unauthorized disclosure of any of which to competitors of the other Party or to
the general public would be highly detrimental to the other Party, and each
Party further acknowledges and agrees that the right to maintain the
confidentiality of such information constitutes a proprietary right which the
other party is entitled to protect.

8.04      Each Party agrees to keep
  and use the Confidential Information of the other Party, howsoever obtained,
  strictly confidential at all times and shall not now or in the future, without
  the prior written consent of the other Party, disclose the other Party’s
  Confidential Information to any person or entity other than: 

	 	(a)	to such of its directors,
        officers, employees and professional advisors as shall have a need to
        know such Confidential Information in order to assist such Party in performing
        its obligations under this Agreement; or

	Distributorship Agreement 	Page 8 of 11 

	 	(b) 	to a person or entity pursuant to a judicial
        or regulatory process or other requirement of law; provided however that
        in such case, the legally compelled Party shall be obliged to promptly
        notify the other Party in writing prior to making any such disclosure,
        and shall in any event disclose only that portion of the other Party’s
        Confidential Information which is legally required to be disclosed and
        shall exercise all reasonable efforts to ensure that confidential treatment
        will be accorded such Confidential Information. 

8.05      Each Party agrees that it
will require all of its officers, employees or consultants who have or will be
granted access to Confidential Information to execute mutually acceptable
assignments of inventions agreements and mutually acceptable Confidentiality and
Non-Circumvention Agreements prior to being granted access to Confidential
Information.

8.06      Each Party agrees to take
all reasonable precautions to avoid disclosure or dissemination of the other
Party’s Confidential Information other than as permitted herein, and to limit
and control any copies, extracts or reproductions made of any such Confidential
Information, and shall otherwise safeguard such Confidential Information to the
same extent as it does its own secret information.

Article IX — Arbitration

9.01      Any dispute between the
parties in respect of any matter arising under this Agreement or in relation to
the construction hereof shall be submitted to arbitration and determined by a
single arbitrator appointed pursuant to the Rules of Commercial Arbitration
Association (the “Rules”) which arbitrator shall preside over the arbitration
and conduct it in accordance with the Act, determine all questions of procedure
not provided for under the Rules or herein, and render a decision which the
parties hereby agree shall be final and binding upon the parties; provided
however that not withstanding anything else herein contained:

	 	(a) 	it shall be a condition precedent to the right of
        either Party to submit any matter to arbitration, that such Party shall
        have given the other Party not less than ten (10) days’ prior notice
        of its intention to do so together with particulars of the matter in dispute;
      

	 	 	 
	 	(b) 	the arbitral venue shall be at the offices of the
        American Arbitration Association located in Los Angeles; 

	 	 	 
	 	(c) 	the arbitral award shall not grant any punitive,
        consequential, remote or incidental damages; and 

	 	 	 
	 	(d) 	the arbitral award shall be final, binding and conclusive.
      

	 	 	 
	 	(e) 	The substantially prevailing Party will be entitled
        to recover its reasonable costs incurred in connection with such action
        including attorneys’ fees and disbursements (valued at market rates
        for comparable services from private practitioners), costs of discovery
        and court costs. 

Article X — Miscellaneous

10.01     Governing Law. This
Agreement shall be covered by and construed in accordance with the laws of the
State of California other than provisions relating to conflicts of law provided,
however, that all questions concerning the construction or effect of any patent
applications or patents shall be decided in accordance with the laws of the
country or territory in question. Each party hereto submits to the jurisdiction
of the courts of the State of California, County of Sacramento, or to the United
States District Court in connection with any matter relating to this
Agreement.

10.02     Term of Agreement. This
  Agreement will be in full force and effect until such time as the Patents referred
  to herein and any extensions or derivatives thereof become eminent domain.

	Distributorship Agreement 	Page 9 of 11 

10.03     Entire Agreement. This
Agreement constitutes the entire understanding and agreement between the parties
hereto with respect to the Distributorship Patents, the Products and the other
matters contemplated or covered herein. This Agreement supersedes any and all
previous agreements, commitment and understandings, whether oral or written,
between the parties hereto. This Agreement may not be modified, amended or
supplemented except by way of a writing signed by a duly authorized
representative of each of the Parties hereto.

10.04     Assignment. This Agreement
shall not be assignable by either party without the prior written consent of the
other party.

10.05     Notices. Any notice,
request, instruction, report or other document to be given hereunder shall be
given in writing by hand delivery or by posting by certified or Registered mail,
postage prepaid, or by facsimile, receipt confirmed, as follows:

		To
      PATENT HOLDER:	Anuvu Incorporated 
		  	3980
      Research Drive 
		  	Sacramento, CA 95838 
		  	  
		 	Attention:                                                      
    
		  	  
		  	  
		To
      DISTRIBUTOR: 	REGI
      U.S., Inc. 
		  	1103 –
      11871 Horseshoe Way 
		  	Richmond, BC Canada V7A 5H5 
		  	  
		  	Attention: Mr. John Robertson, President

or to such other address as a party may specify by notice
hereunder.

10.06     Successors and Assigns.
This Agreement shall be binding upon, and shall inure to the benefit of, the
parties and their respective permitted successors, legal representatives and
assigns.

10.07     Severability. If and to
the extent that any court of competent jurisdiction holds any provision or part
of this Agreement to be invalid or unenforceable, such holding shall in no way
affect the Validity of the remainder of this Agreement.

10.08     Independent Contractors.
The relationship of the parties under this Agreement is that of independent
contractors. Neither party shall be deemed to be the agent of the other, and
neither is authorized to take any action binding upon the other.

10.09     Counterparts. This
Agreement may be executed in counterparts, each of which shall be deemed to be
an original and both together shall be deemed to be one and the same
Agreement.

10.10     Headings. All headings in
this Agreement are inserted for convenience of reference only and shall not
affect its meaning or interpretation.

10.11     Waivers. Any waiver of any
term or condition of or obligation under this Agreement must be set forth
explicitly in writing, signed by the waiving party. A waiver by either party of
any of the terms and conditions of or obligations of the other party under this
Agreement in any instance shall not be deemed or construed to be a waiver of
such term condition or obligation for the future.

10.12     Further Assurances. Patent
Holder and Distributor each agree on behalf of themselves and their respective
Affiliates and subdistributors to produce or execute such other documents or
agreements as may be necessary or desirable for the execution and implementation
of this Agreement and the consummation of the transactions contemplated
hereby.

10.13     Regulatory Approval. This
  Agreement shall be subject to any legally required regulatory approvals.

	Distributorship Agreement 	Page 10 of 11 

10.14     No Warranty. There is no
representations or warranties, express or implied, other than as expressly set
forth or referred to herein and, in particular, neither Party makes any
warranties to each other or any other person or entity, whether express, implied
or statutory, as to the description, quality, merchantability, completeness or
fitness for any purpose of any services or information provided hereunder or
described herein, or as to any other matter all of which warranties are hereby
excluded and specifically disclaimed.

10.15     Time of the Essence. The
Parties agree that time is of the essence of this Agreement and further agree
that should they fix new times for the performance of any of their obligations
hereunder such new times shall also be of the essence.

10.16     Amendments. No amendment,
modification, alteration or waiver of the terms of this Agreement shall be
binding unless the same shall be in writing dated subsequent to the date of this
Agreement and duly executed by the Parties.

10.17     Captions. The captions
appearing in this Agreement are inserted for convenience of reference only and
shall not effect the interpretation of this Agreement.

IN WITNESS WHEREOF, the parties have caused this
Agreement to be executed by their duly authorized representatives as of the date
first written above.

	for Distributor: 	 	for Patent Holder: 
	 	 	 
	  	 	  
	By: 	 	By: 
	  	 	  
	 	 	 
	 	 	 
	Title 	 	Title 
	 	 	 
		By: 	 
    
		 	 Approval of Lender for Anuvu Incorporated 
	 	 	 
	 	 	 
	  	 	 Title 

	Distributorship Agreement 	Page 11 of 11

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