Document:

Exhibit 10(e)(11)

 

ELEVENTH AMENDMENT TO

KAISER GROUP INTERNATIONAL, INC.

401(k) PLAN

 

WHEREAS,
Kaiser Group International, Inc. (the “Company”) maintains the Kaiser Group
International, Inc. Section 401(k) Plan (the “Plan”); and

 

WHEREAS,
Section 10.2 authorizes the Board to amend the Plan;

 

NOW,
THEREFORE, effective May 31, 2004, the Plan is amended as follows:

 

Exhibit A is
amended to include a reference to Kaiser Analytical Management Services, Inc.
as an “Excluded Entity”.

 

Executed this 11th day of November, 2004.

 

 

	
   

  	
  KAISER GROUP INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas W. McMinn

  	
   

  
	
   

  	
   

  	
  Douglas W. McMinn,

  
	
   

  	
   

  	
  President and Chief Executive OfficerExhibit
10.1

 

Single
Phase Technology

License Agreement

between

Commerce Energy Group, Inc.

and

Power Efficiency Corporation

 

This License Agreement
(this “Agreement”) is made and entered into this 11th day of October,
2004, by and between Power Efficiency Corporation (“PEC”), a Delaware
corporation, with its principal executive offices located at 3900 Paradise
Road, Suite 283, Las Vegas, Nevada 89109, and Commerce Energy Group, Inc. (“CEG”),
a Delaware corporation, with its principal executive offices located at 600
Anton Boulevard, Suite 2000, Costa Mesa, California 92626.  Unless otherwise defined, capitalized terms
shall have the meaning set forth in Paragraph 1 herein.

 

RECITALS

 

WHEREAS, PEC manufactures and markets energy saving
three phase motor controllers for AC induction motors and is the owner of
United States Patent Number 5,821,726 (“the ’726 Patent”) for the circuits used
in its three phase controllers.

 

WHEREAS, PEC has certain know-how and has developed
prototype circuits incorporating the technology of the ’726 Patent in a single
phase motor controller to save energy. PEC has access to the developer of the
PEC single phase technology.

 

WHEREAS, PEC represents
that the PEC Single Phase Technology prototypes integrate the technology
protected by the ’726 Patent. 

 

WHEREAS, the license
granted by this Agreement is issued to CEG to use the ’726 Patent and the PEC Single
Phase Technology for the development, manufacture, labeling, marketing,
distribution, lease, use and sale of a single phase motor controller, together
with any improvements, enhancements, and/or modifications, including all
disposables or reusables created therefore which, but for the licenses granted
under this Agreement, would infringe a claim of the ’726 Patent.

 

WHEREAS, PEC does not currently have the financial
resources to finish development, invest in manufacturing molds and processes
and market a single phase energy saving device aimed at the mass consumer
market comprised of freezers, refrigerators, washers and other appliances that
could benefit from this device.

 

WHEREAS, CEG has the financial resources to complete
the development and market a single phase motor controller for retail
distribution.

 

NOW, THEREFORE, in consideration of the
Recitals set forth above and the mutual covenants contained herein, PEC and CEG
(“the Parties”) agree as follows:

 

 

1.                                       Definitions

 

The following terms when
they appear in this Agreement with an initial capital letter and without regard
to whether they appear in the singular, plural or possessive form, shall have
the meaning defined below:

 

1.1                                 “Affiliate” of a Party means any person or entity
that controls, is controlled by, or is under common control with such Party,
but only as long as such control exists. 
As used herein, “control”
means ownership of fifty percent (50%) or more of the outstanding voting stock
or other equity interests in a person or entity or the power to otherwise
direct the affairs of a person or entity.

 

1.2                                 “Effective Date” shall mean 90 days after the date of this Agreement.

 

1.3                                 “Field of Use” means single phase motor controllers for
AC induction motors.

 

1.4                                 “Improvement” means any improvement, modification,
derivative work, or variation of any invention, method, system, apparatus, or
technology described or claimed in any Licensed Patent or the PEC Single Phase
Technology, as such relate to single phase technology.

 

1.5                                 “Licensed Patents” means (i) the ’726 Patent, and (ii) continuations,
divisionals, reissues, reexaminations, and foreign counterparts of the ’726 Patent.

 

1.6                                 “PEC Single Phase
Technology” shall
mean all information and secret know-how previously, now or hereafter provided,
developed, owned or controlled by PEC or any of its Affiliates related to a
single phase motor controller utilizing the technology of the Licensed Patents,
including without limitation all designs, specifications and information
related to the development of the single phase motor controller, including the
single phase motor controller technology prototype circuits developed by PEC
incorporating the technology of the Licensed Patents.

 

1.7                                 “Unit” shall mean a single phase motor
controller developed incorporating the technology and know-how of the Licensed
Patents and/or the PEC Single Phase Technology.

 

2.                                       License

 

2.1                                 Grant of License.  PEC
hereby grants to CEG an exclusive, royalty-bearing, worldwide license (“License”)
to use the Licensed Patents, the circuits described in the Licensed Patents,
the PEC Single Phase Technology, and related intellectual property solely to
develop, manufacture, label, market, distribute, lease, use and sell a single
phase controller for the Licensed Use. 

 

2.2                                 Prototypes.  As
consideration for this License, PEC will transfer its existing R&D
prototypes of its existing current development progress on creating a single
phase

 

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circuit
incorporating the PEC Single Phase Technology and the engineering drawings used
to build the existing prototypes.  PEC
waives any and all claims to ownership or development credit of the existing
prototypes and irrevocably transfers all right, title and interest in such
prototype to CEG.  The Parties
acknowledge that the existing prototypes are not a finished product and could
not be sold to consumers in their present form. 
PEC represents and warrants that the engineers and developers of the
existing prototypes will assist CEG, at CEG’s request and direction, in completing
the existing prototypes into a finished product for the Unit to the
satisfaction of CEG.  In the event that
the engineers and/or the developers of the existing prototypes refuse to or
fail to assist CEG in completing the existing prototypes into a finished
product for the Unit, CEG will consider this a material breach of this
Agreement and CEG may immediately terminate this Agreement and pursue all legal
and equitable remedies available to CEG as a result of such breach.  Nothing herein shall prohibit CEG from
independently engaging any personnel is deems necessary, in its sole and
absolute discretion, for the development and engineering of the Unit. 

 

2.3                                 Access to Engineering
Personnel.  PEC shall permit CEG access to
engineering personnel and any and all persons most knowledgeable regarding the
invention embodied in U.S. Patent No. 5,821,726, the PEC Single Phase
Technology and the R&D prototypes transferred to CEG pursuant to this
Agreement.  CEG will compensate PEC for reasonable
costs and expenses for access to these individuals.  CEG will provide PEC with reasonable notice
of the need for access to such engineering personnel, where such reasonable
notice will be no shorter than one (1) week unless otherwise consented to by
PEC. As part of this Agreement, PEC warrants and represents that the
above-described engineering personnel agree to cooperate with CEG in the final
development of the Unit.

 

2.4                                 Term of the Agreement. 
This Agreement shall remain in effect for a term of 10 years from the
Effective Date (the “Initial License Term”) or until none of the Licensed Patents
licensed under this Agreement remain valid and enforceable, whichever should
occur earliest, subject to the other terms hereof.

 

2.5                                 Royalties. 
As consideration for this License, CEG will pay to PEC Royalties which
shall be calculated as an amount equal to 5% of the net profit per Unit sold
after all costs, operating expenses, development cost recovery, taxes and any
additional fees or charges related to the sale of each Unit has been paid.

 

2.6                                 Payments. 
Payment shall be due within 45 days of the end of each calendar quarter during
which CEG owes PEC Royalties for the Unit. 
In the event that no Royalties exist for a calendar quarter, CEG shall
not provide any payments or quarterly statements for such calendar quarters.

 

3.                                       License Termination Fee

 

PEC and CEG agree that
PEC shall be entitled to terminate the License prior to its expiration under
the following condition:  In the event
that CEG has not sold at least 1,000 (one thousand)Units to any third party customers
in any channel of sales after five (5) years from the Effective Date of this
Agreement, PEC shall have the option to terminate the License on the first day
following the expiration of five (5) years from the Effective Date of this
Agreement by notifying CEG in writing that PEC desires to terminate the
License.  If PEC successfully

 

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develops the Unit or
another single phase motor controller after terminating the License, PEC agrees
to permit CEG to acquire such Unit(s) for resale by CEG at its sole election at
a reasonable price but in no event at a price greater than the lowest price the
Unit(s) is offered for sale to any third party and further agrees to provide
CEG with a non-exclusive right to use and sell such Unit(s) acquired from PEC.

 

4.                                       Agreement Early
Cancellation

 

This Agreement shall be
effective 90 days after the Effective Date. 
If PEC pays to CEG (or its affiliate Commonwealth Energy Corporation)
the sum of $300,000 as payment of the principal amount of that certain
promissory note dated April 20, 2004, together with accrued and unpaid
interest, before the Effective Date (the “Payment Amount”), then this Agreement
shall be considered null and void and shall have no effect.  Also, upon payment of the Payment Amount
before the Effective Date, the new note [dated     
    ,      ] issued [by         ] to CEG
under that certain Pali financing will be deemed to be paid in full and
cancelled.   Both Parties agree to execute any and all
documents and instruments necessary to accomplish the above-stated provisions
of this Paragraph.

 

5.                                       Ownership of Improvements. 
As between CEG and PEC, CEG will own all Improvements conceived, made,
reduced to practice, invented, or developed by any employee or contractor of CEG.  In the event that CEG develops any
intellectual property rights in any processes or products relating to the
Improvements, then CEG shall retain exclusive ownership of such intellectual
property rights in such Improvements, including the right of CEG to file for
worldwide patent protection for the inventions embodied in such Improvements in
its own name and at its own cost and expense. 
PEC shall assist CEG, as requested, in executing such documents and
instruments as may be reasonably determined necessary by CEG to secure and
maintain patent and other intellectual property protection for such
Improvements.

 

6.                                       Patent Marking.  CEG will mark prominently each Unit which
CEG offers for sale with the patent number of each Licensed Patent.

 

7.                                       Notice of Infringement. 
CEG and PEC shall promptly notify each other of any infringement, unfair
competition or patent application by a third party in, or applicable to, the
Licensed Patents as it relates to the Unit which come to their attention.  Should legal action against any third party
be deemed necessary by CEG to prevent infringement of the Licensed Patents as
it relates to the Unit, PEC hereby grants CEG the authority to initiate legal
proceedings against such third party infringer with respect to such third party’s
infringement of the Licensed Patents as it relates to the Unit.  Actions, costs, control and recovered damages
and settlements associated with such legal proceedings initiated against any
third party with respect to such third party infringement claims shall be
handled, determined, borne and received by CEG, unless CEG and PEC mutually
agree in writing to have PEC control such litigation or CEG elects not to
pursue such litigation and PEC elects to do so, in which case the costs,
control and damages recovered or awarded or received in settlement shall be
borne and received, respectively, by PEC.

 

8.                                       No Joint Venture. 
This Agreement shall not be construed to create any joint venture,
partnership or other relationship of any kind other than that described herein.

 

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9.                                       Confidentiality of the Agreement.  Neither Party will disclose any terms or
conditions of this Agreement to any third party without the prior written
consent of the other Party, except: (i) as required by law, including but not
limited to SEC disclosure requirements; (ii) as ordered by a court subject to a
protective order; (iii) to its attorneys, accountants, and other professional
advisors under a duty of confidentiality; or (iv) to a third party under a duty
of confidentiality in connection with obtaining financing, a proposed merger,
or a proposed sale of all or part of such Party’s business.

 

10.                                 Termination by
Licensee.  Either Party may immediately terminate this Agreement
by giving a written notice of termination to the other Party if the other Party
breaches any material provision of the Agreement and fails to cure such breach
to the satisfaction of the terminating Party within thirty (30) days after
written notice thereof.

 

11.                                 Effect of Termination. 
Upon termination of this Agreement before the end of the Initial License
Term or upon expiration of the Initial License Term, all licenses granted by
PEC to CEG under this Agreement will be immediately revoked.  Upon termination of this Agreement by expiration
of the Licensed Patents, CEG shall immediately upon expiration of such Licensed
Patents be granted an irrevocable, non-exclusive license to practice the
inventions embodied in and related to the Licensed Patents and the PEC Single
Phase Technology for the payment of $1.00 from CEG to PEC

 

12.                                 Notices.  Except as otherwise specified in this Agreement, all
notices, requests, consents, approvals, agreements, authorizations,
acknowledgements, waivers and other communications required or permitted under
this Agreement shall be in writing and shall be made by registered or certified
first-class mail, return receipt requested, telecopier or fax, courier service
or personal delivery to the address specified below:

 

In the case of  CEG:

 

Commerce Energy Group,
Inc.

600 Anton Blvd., Suite
2000

Costa Mesa, California  92626

 

In the case of PEC:

 

Power Efficiency
Corporation

3900 Paradise Road, Suite
283

Las Vegas, Nevada  89109

 

All such notices,
requests, consents, approvals, agreements, authorizations, acknowledgements,
waivers and other communications required or permitted under this Agreement
shall be deemed to have been duly given when received, as evidenced by (i) a
return receipt if sent by certified mail; (ii) delivered by hand, if personally
delivered; (iii) when delivered by courier, if delivered by commercial courier
service; and (iv) when delivered by telecopier or fax, when receipt is
mechanically acknowledged if such acknowledgement indicates delivery to
recipient on its business day during normal business hours, otherwise on the
next business day.

 

5

 

13.                                 Force Majeure. 
In the event that either Party’s performance of its obligations under
this Agreement is interrupted or delayed by any occurrence not caused by either
Party, its assigns or agents, whether such occurrence is an act of God or
public enemy, or whether such occurrence is caused by storm, earthquake, or
other natural forces, or by war, riot, public disturbance, or the acts or
omissions of anyone not a party to this Agreement, then either Party shall be
excused from such performance and any further performance required under this
Agreement for whatever period is reasonably necessary to remedy the effects of
that occurrence.

 

14.                                 Entire Agreement. 
This Agreement, including any Attachment, Exhibit or Schedule hereto,
embodies the entire Agreement and understanding between the Parties, and
supersedes all prior agreements and understandings between the Parties, whether
written or oral, with respect to the subject matter hereof.  Except as provided for in this Section, this
Agreement may not be amended except by a written amendment signed by both
Parties.

 

15.                                 Headings. 
Headings are for the convenience of the Parties and shall be ignored for
purposes of interpreting this Agreement.

 

16.                                 Assignment. 
CEG may assign its rights and obligations under this Agreement to its
Affiliates or any third party.  If CEG
elects to assign its rights and obligations under this Agreement to a third party,
PEC shall be given the right of first refusal to obtain such assignment of this
Agreement under identical terms and conditions as agreed upon between CEG and the
third party.  This right of first refusal
by PEC shall not apply to assignments to Affiliates of CEG.  PEC does not have their right to assign its
rights and obligations under this Agreement, or grant or otherwise transfer
rights to the license to the Unit granted herein to a third Party, and any
attempt by PEC to assign its rights and obligations, or grant any transfer or
license to the Unit to any other person or entity is void and without effect.

 

17.                                 Representations and Warranties of
the Parties.  As a material inducement to enter into this
Agreement, each Party represents and warrants that, as of the date of this
Agreement each Party has (i) full right, power and authority to enter into this
Agreement, and has obtained all necessary consents and resolutions required
under the documents governing its affairs in order to consummate this
transaction, and the persons executing this Agreement have been duly authorized
to do so (ii) full right title an interest to the property, principals and
patents which serve as the subject matter of this Agreement.  This Agreement is a binding obligation on
each Party, enforceable in accordance with their terms.

 

18.                                 Severability. 
If any one or more of the provisions contained in this Agreement shall
be invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein shall not in any
way be affected or impaired thereby.

 

19.                                 Counterparts. 
This Agreement may be executed in any number of counterparts, each of
which will be deemed an original, but all of which taken together shall
constitute one single agreement between the Parties.

 

6

 

20.                                 Representation by Counsel. 
This Agreement is executed voluntarily by the Parties hereto without any
duress or undue influence being exerted thereon.  The Parties hereto represent and warrant that
they have read and fully understand the provisions of this Agreement and have
participated equally, and relied on the advice and representation of legal
counsel of their own choosing in the drafting hereof.  Accordingly, in any construction to be made
of this Agreement, it shall not be construed as having been drafted solely by
any single Party to the subject litigation, or settlement thereof.

 

21.                                 Attorney’s Fees. 
In the event of any action to enforce the terms of this Agreement, each
Party shall bear its own costs and expenses, including attorney’s fees.

 

22.                                 Governing Law. 
The formation, interpretation and performance of this Agreement shall be
governed by and construed in accordance with the laws of the State of
California, without giving effect to the principles thereof relating to the
conflicts of laws.  Venue for any
disputes arising under this Agreement shall be in any court of competent
jurisdiction located in Orange County, California.

 

23.                                 Extension.  At the expiration of the Initial License Term,
provided this Agreement is not terminated prior thereto under Paragraph 3
herein, CEG shall have the election to continue the License under this
Agreement for the Unit for an additional three (3) years (“Extension Period”)
until the expiration of the Licensed Patents. 
CEG may exercise its right to extend the term of this Agreement at the
expiration of the Initial License Term provided CEG is in compliance with the
terms and conditions of this contract at the time of such election to
extend.  In the event that CEG exercises
its rights to the Extension Period, CEG shall be permitted to purchase the
technology owned by PEC under the Licensed Patents in the field of single phase
technology and the PEC Single Phase Technology pursuant to Paragraph 11 herein.

 

24.                                 Bankruptcy.  If
during the term of this Agreement, PEC files for any category of bankruptcy,
then, immediately upon that filing, the ownership of the PEC Single Phase
Technology in the field of single phase technology and the Licensed Patents and
everything that has been provided to CEG shall immediately become the property
of CEG.

 

IN WITNESS WHEREOF, the
Parties, by their respective duly authorized representatives, have executed
this Agreement as of the date first written above.  This Agreement shall not become effective as
to either Party unless and until executed by both Parties.

 

 

	
  Commerce Energy Group,
  Inc.,

  a Delaware corporation

  	
  Power Efficiency
  Corporation,

  a Delaware corporation

  
	
   

  	
   

  
	
  /s/ Ian B Carter 

  	
   

  	
  /s/ Steven Strasser 

  	
   

  
	
  By:

  	
  Ian B. Carter

  	
   

  	
  By:

  	
  Steven Strasser

  	
   

  
	
   

  	
  Chief Executive Officer

  	
   

  	
   

  	
  Chief Executive Officer

  	
   

  

 

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