Document:

EX-10.01

 Exhibit 10.01 
  

			
	 

		 3400 Bridge Parkway
 Redwood
Shores, CA 94065
 Tel: +1 (650) 345-9000
 Fax: +1
(650) 240-0500
 www.imperva.com

 September 30, 2014 

Michael Mooney 
 Dear Mike: 

Imperva, Inc. (the “Company”) is pleased to offer you employment on the following terms: 

1. Position. Your title will be Chief Revenue Officer and you will report to the Company’s President & CEO, Anthony Bettencourt.
This is a full-time position based out of Redwood Shores HQ. By signing this letter agreement, you confirm to the Company that you have no contractual commitments or other legal obligations that would prohibit you from performing your duties
for the Company. 
 2. Cash Compensation. The Company will pay you a starting salary at the rate of $27,083.33 per month ($325,000 per year),
payable in accordance with the Company’s standard payroll schedule. This salary will be subject to adjustment pursuant to the Company’s employee compensation policies in effect from time to time. In addition, you will be eligible to
participate in the Company’s commission plan. Initially, your annual commission goal will be $275,000 at target and paid monthly. Commission will be awarded based on objectives or subjective criteria approved by the Company’s Chief
Executive Officer, and will be in accordance with the Company’s then-current sales commission plan. 
 3. Employee Benefits. As a regular
employee of the Company, you will be eligible to participate in a number of Company-sponsored benefits as in effect from time to time. The Company does not maintain a vacation or paid time off accrual policy with a fixed number of days for exempt,
salaried staff and will not formally track the amount of personal time you spend away from the office, and you are free to take personal time at your discretion, with pay, subject to coordination with and approval from your manager and in accordance
with the Company’s Time Off Policy; however, you will be expected to manage your time away from the office in such a way as to ensure that your work responsibilities are adequately addressed. 

4. Equity. The Company shall, subject to the approval of its Board of Directors or a committee of the Board of Directors, grant to you (a) a stock
option to purchase 50,000 shares of Common Stock of the Company (the “Option”) and (b) restricted stock units for 50,000 shares of Common 

  

			
	 Confidential Offer Letter – Michael Mooney
		Page 1

  

 

 Exhibit 10.01 

 

 
Stock of the Company (the “RSUs”). The Option and the RSUs will be granted pursuant to and will be subject to the terms of the Company’s 2011 Stock Option and Incentive Plan, as
well the Option Agreement and the Restricted Stock Unit Agreement. The Option and the RSUs also will be subject to the terms of the Company’s Change in Control Plan (as filed on EDGAR with the Securities and Exchange Commission). 

5. Proprietary Information and Inventions Agreement. Like all Company employees, you will be required, as a condition of your employment with the
Company, to sign the Company’s standard Proprietary Information and Inventions Agreement, a copy of which is attached hereto as Exhibit A. 
 6.
Employment Relationship. Employment with the Company is for no specific period of time. Your employment with the Company will be “at will,” meaning that either you or the Company may terminate your employment at any time and for any
reason, with or without cause. Any contrary representations that may have been made to you are superseded by this letter agreement. This is the full and complete agreement between you and the Company on this term. Although your job duties, title,
compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time to time, the “at will” nature of your employment may only be changed in an express written agreement signed by you and the
Company’s Chief Executive Officer. 
 7. Outside Activities. While you render services to the Company, you agree that you will not engage in any
other employment, consulting or other business activity without the prior written consent of the Company. While you render services to the Company, you also will not assist any person or entity in competing with the Company, in preparing to compete
with the Company or in hiring any employees or consultants of the Company. 
 8. Withholding Taxes. All forms of compensation referred to in this
letter agreement are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law. 
 9. Proof of
Employment Eligibility and Background Check. This offer is contingent upon your completion and execution of all employment documents, as well as your ability to provide proof of identification and authorization to work in the United States
(within two business days of your start date) and upon passing the Company’s mandatory background verification, even if this information is not known until after your employment commences. 

10. Entire Agreement. This Agreement and Exhibit A supersede and replace any prior agreements, representations or understandings (whether
written, oral, implied or otherwise) between you and the Company and constitute the complete agreement between you and the Company regarding the subject matter set forth herein. This Agreement may not be amended or modified, except by an express
written agreement signed by both you and the Chief Executive Officer of the Company. 
 ********** 

  

			
	 Confidential Offer Letter – Michael Mooney
		Page 2

  

 

 We hope that you will accept our offer to join the Company. You may indicate your agreement with these terms and
accept this letter agreement by signing and dating both the enclosed duplicate original of this letter agreement and the enclosed Proprietary Information and Inventions Agreement and returning them to me. This offer, if not accepted, will expire at
the close of business on September 30, 2014. Your employment is also contingent upon your starting work with the Company on or before October 1, 2014. 

 

	
	Very truly yours,
	IMPERVA, INC.
	
	By /s/ Kristie
Castellini                                        

	Kristie Castellini
	
	Title: Senior Director, Human Resources
	
	Dated:     10/01/2014

 I have read and accept this employment offer: 
  

	
	 /s/ Michael D. Mooney

	Signature of Michael Mooney
	
	Dated:             September 30, 2014            

 Attachment 
 Exhibit A:
Proprietary Information and Inventions Agreement 

 PROPRIETARY INFORMATION AND INVENTION AGREEMENT 

In consideration of, and as a condition of my employment with Imperva, Inc., a Delaware corporation (the
“Company”), I, as the “Employee” signing this Proprietary Information and Invention Agreement (this “Agreement”), hereby represent to the Company, and the Company and I hereby
agree as follows: 
 1. Purpose of Agreement. I understand that the Company is engaged in a continuous program
of research, development, production and/or marketing in connection with its current and projected business and that it is critical for the Company to preserve and protect its proprietary information, its rights in certain inventions and works and
in related intellectual property rights. Accordingly, I am entering into this Agreement, whether or not I am expected to create inventions or other works of value for the Company. As used in this Agreement, “Inventions” means
inventions, improvements, designs, original works of authorship, formulas, processes, compositions of matter, computer software programs, databases, mask works, confidential information and trade secrets. 

2. Disclosure of Inventions. I will promptly disclose in confidence to the Company, or to any person designated by it, all
Inventions that I make, create, conceive or first reduce to practice, either alone or jointly with others, during the period of my employment, whether or not in the course of my employment, and whether or not patentable, copyrightable or protectable
as trade secrets. 
 3. Work for Hire; Assigned Inventions. I acknowledge and agree that any copyrightable works
prepared by me within the scope of my employment will be “works made for hire” under the Copyright Act and that the Company will be considered the author and owner of such copyrightable works. I agree that all Inventions that I make,
create, conceive or first reduce to practice during the period of my employment, whether or not in the course of my employment, and whether or not patentable, copyrightable or protectable as trade secrets, and that (i) are developed using
equipment, supplies, facilities or trade secrets of the Company; (ii) result from work performed by me for the Company; or (iii) relate to the Company’s business or actual or demonstrably anticipated research or development (the
“Assigned Inventions”), will be the sole and exclusive property of the Company. 
 4.
Excluded Inventions and Other Inventions. Attached hereto as Exhibit A is a list describing all existing Inventions, if any, that may relate to the Company’s business or actual or demonstrably anticipated research or
development and that were made by me or acquired by me prior to the Effective Date (as defined in Section 25, below), and which are not to be assigned to the Company (“Excluded Inventions”). If no such list is attached,
I represent and agree that it is because I have no rights in any existing Inventions that may relate to the Company’s business or actual or demonstrably anticipated research or development. For purposes of this Agreement, “Other
Inventions” means Inventions in which I have or may have an interest, as of the Effective Date or thereafter, other than Assigned Inventions and Excluded Inventions. I acknowledge and agree that if, in the scope of my employment, I use
any Excluded Inventions or any Other Inventions, or if I include any Excluded Inventions or Other Inventions in any product or service of the Company or if my rights in any Excluded Inventions or Other Inventions may block or interfere with, or may
otherwise be required for, the exercise by the Company of any 

  
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rights assigned to the Company under this Agreement, I will immediately so notify the Company in writing. Unless the Company and I agree otherwise in writing as to particular Excluded Inventions
or Other Inventions, I hereby grant to the Company, in such circumstances (whether or not I give the Company notice as required above), a perpetual, irrevocable, nonexclusive, transferable, world-wide, royalty-free license to use, disclose, make,
sell, offer for sale, import, copy, distribute, modify and create works based on, perform, and display such Excluded Inventions and Other Inventions, and to sublicense third parties in one or more tiers of sublicensees with the same rights. 

5. Exception to Assignment. I understand that the Assigned Inventions will not include, and the provisions of this Agreement
requiring assignment of inventions to the Company do not apply to, any invention that qualifies fully for exclusion under the provisions of Section 2870 of the California Labor Code, which are attached hereto as Exhibit B. 

6. Assignment of Rights. I agree to assign, and do hereby irrevocably transfer and assign, to the Company: (i) all of my
rights, title and interests in and with respect to any Assigned Inventions; (ii) all patents, patent applications, copyrights, mask works, rights in databases, trade secrets, and other intellectual property rights, worldwide, in any Assigned
Inventions, along with any registrations of or applications to register such rights; and (iii) to the extent assignable, any and all Moral Rights (as defined below) that I may have in or with respect to any Assigned Inventions. I also hereby
forever waive and agree never to assert any Moral Rights I may have in or with respect to any Assigned Inventions and any Excluded Inventions or Other Inventions licensed to the Company under Section 4, even after termination of my employment
with the Company. “Moral Rights” means any rights to claim authorship of a work, to object to or prevent the modification or destruction of a work, to withdraw from circulation or control the publication or
distribution of a work, and any similar right, regardless of whether or not such right is denominated or generally referred to as a “moral right.”  

7. Assistance. I will assist the Company in every proper way to obtain and enforce for the Company all patents, copyrights, mask
work rights, trade secret rights and other legal protections for the Assigned Inventions, worldwide. I will execute and deliver any documents that the Company may reasonably request from me in connection with providing such assistance. My
obligations under this section will continue beyond the termination of my employment with the Company; provided that the Company agrees to compensate me at a reasonable rate after such termination for time and expenses actually spent by me at
the Company’s request in providing such assistance. I hereby appoint the Secretary of the Company as my attorney-in-fact to execute documents on my behalf for this purpose. I agree that this appointment is coupled with an interest and will not
be revocable. 
 8. Proprietary Information. I understand that my employment by the Company creates a relationship of
confidence and trust with respect to any information or materials of a confidential or secret nature that may be made, created or discovered by me or that may be disclosed to me by the Company or a third party in relation to the business of the
Company or to the business of any parent, subsidiary, affiliate, customer or supplier of the Company, or any other party with whom the Company agrees to hold such information or materials in confidence (the “Proprietary
Information”). Without limitation as to the forms that Proprietary Information may take, I acknowledge that Proprietary Information may be contained in tangible material such

  
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as writings, drawings, samples, electronic media, or computer programs, or may be in the nature of unwritten knowledge or know-how. Proprietary Information includes, but is not limited to,
Assigned Inventions, marketing plans, product plans, designs, data, prototypes, specimens, test protocols, laboratory notebooks, business strategies, financial information, forecasts, personnel information, contract information, customer and
supplier lists, and the non-public names and addresses of the Company’s customers and suppliers, their buying and selling habits and special needs. 

9. Confidentiality. At all times, both during my employment and after its termination, I will keep and hold all Proprietary
Information in strict confidence and trust. I will not use or disclose any Proprietary Information without the prior written consent of the Company in each instance, except as may be necessary to perform my duties as an employee of the Company for
the benefit of the Company. Upon termination of my employment with the Company, I will promptly deliver to the Company all documents and materials of any nature pertaining to my work with the Company, and I will not take with me or retain in any
form any documents or materials or copies containing any Proprietary Information. 
 10. Physical Property. All
documents, supplies, equipment and other physical property furnished to me by the Company or produced by me or others in connection with my employment will be and remain the sole property of the Company. I will return to the Company all such items
when requested by the Company, excepting only my personal copies of records relating to my employment or compensation and any personal property I bring with me to the Company and designate as such. Even if the Company does not so request, I will
upon termination of my employment return to the Company all Company property, and I will not take with me or retain any such items. 

11. No Breach of Prior Agreements. I represent that my performance of all the terms of this Agreement and my duties as an
employee of the Company will not breach any invention assignment, proprietary information, confidentiality, non-competition, or other agreement with any former employer or other party. I represent that I will not bring with me to the Company or use
in the performance of my duties for the Company any documents or materials or intangibles of my own or of a former employer or third party that are not generally available for use by the public or have not been legally transferred to the Company.

 12. “At Will” Employment. I understand that this Agreement does not constitute a contract of employment or
obligate the Company to employ me for any stated period of time. I understand that I am an “at will” employee of the Company and that my employment can be terminated at any time, with or without notice and with or without cause, for any
reason or for no reason, by either the Company or by me. I acknowledge that any statements or representations to the contrary are ineffective, unless put into a writing signed by the Company. I further acknowledge that my participation in any stock
option or benefit program is not to be construed as any assurance of continuing employment for any particular period of time. 

13. Company Opportunities; Duty Not to Compete. During the period of my employment, I will at all times devote my best efforts
to the interests of the Company, and I will not, without the prior written consent of the Company, engage in, or encourage or assist others to engage in, any other employment or activity that: (i) would divert from the Company any 

  
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business opportunity in which the Company can reasonably be expected to have an interest; (ii) would directly compete with, or involve preparation to compete with, the current or future
business of the Company; or (iii) would otherwise conflict with the Company’s interests or could cause a disruption of its operations or prospects. 

14. Non-Solicitation of Employees/Consultants. During my employment with the Company and for a one (1) year period
thereafter, I will not directly or indirectly solicit away employees or consultants of the Company for my own benefit or for the benefit of any other person or entity, nor will I encourage or assist others to do so. 

15. Use of Name & Likeness. I hereby authorize the Company to use, reuse, and to grant others the right to use and
reuse, my name, photograph, likeness (including caricature), voice, and biographical information, and any reproduction or simulation thereof, in any form of media or technology now known or hereafter developed, both during and after my employment,
for any purposes related to the Company’s business, such as marketing, advertising, credits, and presentations. 
 16.
Notification. I hereby authorize the Company, during and after the termination of my employment with the Company, to notify third parties, including, but not limited to, actual or potential customers or employers, of the terms of this
Agreement and my responsibilities hereunder. 
 17. Injunctive Relief. I understand that a breach or threatened breach
of this Agreement by me may cause the Company to suffer irreparable harm and that the Company will therefore be entitled to injunctive relief to enforce this Agreement. 

18. Governing Law; Severability. This Agreement is intended to supplement, and not to supersede, any rights the Company may have
in law or equity with respect to the duties of its employees and the protection of its trade secrets. This Agreement will be governed by and construed in accordance with the laws of the State of California without giving effect to any principles of
conflict of laws that would lead to the application of the laws of another jurisdiction. If any provision of this Agreement is invalid, illegal or unenforceable in any respect, such provision will be enforced to the maximum extent possible, given
the fundamental intentions of the parties when entering into this Agreement. To the extent such provision cannot be so enforced, it will be stricken from this Agreement and the remainder of this Agreement will be enforced as if such invalid, illegal
or unenforceable provision had never been contained in this Agreement. 
 19. Counterparts. This Agreement may be
executed in any number of counterparts, each of which when so executed and delivered will be deemed an original, and all of which together will constitute one and the same agreement. 

20. Entire Agreement. This Agreement and the documents referred to herein constitute the entire agreement and understanding of
the parties with respect to the subject matter of this Agreement, and supersede all prior understandings and agreements, whether oral or written, between the parties hereto with respect to such subject matter. 

  
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 21. Amendment and Waiver. This Agreement may be amended only by a written agreement
executed by each of the parties to this Agreement. No amendment or waiver of, or modification of any obligation under, this Agreement will be enforceable unless specifically set forth in a writing signed by the party against which enforcement is
sought. A waiver by either party of any of the terms and conditions of this Agreement in any instance will not be deemed or construed to be a waiver of such term or condition with respect to any other instance, whether prior, concurrent or
subsequent. 
 22. Successors and Assigns; Assignment. Except as otherwise provided in this Agreement, this Agreement,
and the rights and obligations of the parties hereunder, will bind and benefit the parties and their respective successors, assigns, heirs, executors, administrators, and legal representatives. The Company may assign any of its rights and
obligations under this Agreement. I understand that I will not be entitled to assign or delegate this Agreement or any of my rights or obligations hereunder, whether voluntarily or by operation of law, except with the prior written consent of the
Company. 
 23. Further Assurances. The parties will execute such further documents and instruments and take such
further actions as may be reasonably necessary to carry out the purposes and intent of this Agreement. Upon termination of my employment with the Company, I will execute and deliver a document or documents in a form reasonably requested by the
Company confirming my agreement to comply with the post-employment obligations contained in this Agreement. 
 24.
Acknowledgement. I certify and acknowledge that I have carefully read all of the provisions of this Agreement and that I understand and will fully and faithfully comply with this Agreement. 

25. Effective Date of Agreement. This Agreement is and will be effective on and after the first day of my employment by the
Company, which is October 1, 2014 (the “Effective Date”).  
  

							
	Imperva, Inc.:		        		Employee:
				
	By:		 /s/ Kristie Castellini
				 /s/ Michael D. Mooney

							Signature
				
	Name:		Kristie Castellini				 Michael D. Mooney

							Name (Please Print)
				
	Title:		Sr. Dir. Human Resources				

  
 6 

 Exhibit A 

LIST OF EXCLUDED INVENTIONS UNDER SECTION 4 
  

					
	 Title
	  	Date	  	Identifying Number
or Brief Description
	     
	  		  	

 x No inventions, improvements, or original works of authorship 

 ̈ Additional sheets attached 

Signature of Employee: /s/ Michael D.
Mooney                         

Print Name of Employee: Michael D. Mooney 
 Date:
September 30, 2014 

 Exhibit B 

CALFORNIA LABOR CODE 2870 NOTICE: 

California Labor Code Section 2870 provides as follows: 

Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her
rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those
inventions that either: (1) relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or (2) result from any
work performed by the employee for the employer. To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under California Labor Code
Section 2870(a), the provision is against the public policy of this state and is unenforceable.Exhibit 10.1

 

AGREEMENT ON KEY TERMS (“TERM SHEET”)

Tri-Party Joint Venture Implemented Through
a Limited Liability Company

 

The undersigned Parties by their signature below indicate their
agreement to the terms set forth below for purposes of entering into a definitive agreement covering the relationships and transactions
contemplated in this Term Sheet and other customary terms.

 

I. Parties:                     MagneGas Corporation
(“MNGA”), XX (Australia) (“XX”) and XX (“XX”) (provided that any of the parties
may assign their rights herein to a wholly-owned affiliate)

 

II. Purpose:                  World Wide
Commercialization of MagneGas or other alternative fuel Co-Combustion with Coal and Coal By-Products greater than 5 MW (the “JV
Process”), in the Electric Power Plant Industry (as defined below) via a 3-party joint venture.

 

			

III. JV Ownership and

Capitalization:

		o	JV shall be implemented through creation of new Delaware Limited Liability Company (“NEWCO”).

		o	XX ownership of NEWCO by each party as described herein (no restrictions relating to initial capital contribution or other
condition)

		o    
	

		1.	XXX XXX XXXXXX XXX XXXXXX XXX XXXXXX XXX XXXXXX XXX XXXXXX XXX XXXXXX XXX XXXXXX XXX XXXXXX XXX XXXXXX XXX XXXXXX XXX XXXXXX XXX XXXXXX XXX XXXXXX XXX XXXXXX XXX XXXXXX XXX XXXXXX XXX XXXXXX XXX XXXXXX XXX XXX

		o	No up-front payments to any Members (except to the extent required through a License Agreement, and only if necessary
to comply with legal requirements of enforceability).

		o	Funds distributed as earned after payment of all NewCo expenses, subject to unanimous approval of Managers, PROVIDED THAT Newco
shall make mandatory minimum distributions to Members in amounts equal to estimated applicable federal taxes on NewCo income imputed
to the Members.

		o	XX to have sole responsibility for and shall cover all costs of Verification; thereafter all NewCo expenses shall be borne
by the Members on a pro rata basis from NewCo revenue (as stated below)

 

    	 

    	 

    

 

		o	It is expected that XX (“XX”) will pay the expected cost of Validation ($1,000,000.00), but if XX demands unrealistic
return for such cost of Validation, the Members may consider other options, including but not limited to going through another
similar independent agency recognized for such Process Validation, or effecting a Capital Call (in the absence of other preferred
financing). In the event a Capital Call is required, MNGA may cover XX’s and XX’s portions at 20% interest per annum,
payable solely from NewCo distributions.

		o	NewCo will cover all NewCo expenses , thereby each Member is sharing equally in such expense, to the extent NewCo revenues
are available for such expenses. When additional cash is required for expenses, Managers will decide whether third party financing
is available or a capital call is required, subject to the requisite Manager and/or Member approval.

		o	New capital/investors (subject to Member approval) will dilute existing Members equally, on pro rata basis,

		o	NewCo will own data results of Verification and Validation.

		o	No recovery of prior costs/expenses of each Member.

		o	NewCo will pay for the cost of Magnegas fuel plus freight after Verification is achieved.

IV. Intellectual Property:

		o	MNGA and XX maintain current IP Rights but grant an exclusive license to NewCo for the JV Process for use solely in the Electric
Power Plant Industry (for clarification, all IP rights revert to patentholders/ licensors in the event of dissolution of NewCo).

		o	Any future IP developed by NewCo for the JV Process in the Electric Power Plant Industry (e.g. patentable improvements, etc.)
will be owned by NewCo, but similar improvements with other applications in XX’s and MNGA’s respective industries to
be patentable by each of them, respectively.

		o	Royalties to Patent Holders (MNGA and XX) to be provided in Licensing Agreement, but to reflect annual fee estimated to cover
costs of ongoing development and maintenance of patents, with annual true-up to match actual costs.

		o	Upon NewCo attainment of a revenue stream or funding in excess of funds required to achieve Validation, NewCo shall pay for
Costs of IP litigation affecting NewCo technology or patents licensed to NewCo. NewCo to maintain reserve account for this purpose.
MNGA or XX, as the case may be, shall lead such IP litigation, subject to consultation with NewCo.

		o	All revenue received through IP licensed to NewCo will go through NewCo and pooled for benefit of all Members pursuant to Operating
Agreement provisions XXXXXX XXX XXX XXXXXX XXX XXX XXXXXX XXX XXX XXXXXX XXX XXX XXXXXX XXX XXX XXXXXX XXX XXX XXXXXX XXX XXX XXX XXX XXX XXX

		o	New NDAs to be signed by all parties in connection with NewCo formation; Operating Agreement shall include confidentiality
provisions to avoid separate agreement.

		o	Notwithstanding any provision herein regarding MNGA’s patent rights, NewCo and each NewCo Member (including their respective
employees or agents) shall have the non-exclusive right to address and assist with the design and engineering of MagneGas Recyclers
suitable for the JV Process, provided that any new intellectual property resulting from such activity, or improvements, whether
or not patentable, are assigned to or owned by MNGA. MNGA may elect to subcontract the manufacture of such Recyclers to a party
that offers more efficient production.

		o   	 XX and MNGA shall sell all proprietary equipment necessary for the JV Process NewCo at a negotiated mark-up of no greater than XX above the direct cost to MNGA or XX, respectively,

 

    	 

    	 

    

 

V. Governance:

		o	NewCo to be Manager- managed by a Board of Managers (Delaware) comprised of 7 Managers: 2 designated by each Member upon formation
of NewCo, and 1 “independent” Manager to be elected at a later date by the Managers. It is the parties’ intent
that the 7th Manager be either a CEO hired full-time for NewCo or an independent executive with a suitable skill set
approved by the Members.

		o	Unanimous Vote Required for:

		1.	Addition of new Members and resulting dilution of any current Member’s interest

		2.	Compensation, hiring and firing of direct-reports to the Board (e.g. CEO, CFO)

		3.	Change in number of Manager (Board) seats and election of 7th Manager

		4.	Issuance/transfer/sale of any ownership interest of a Member unless complies with process to be delineated in Operating Agreement
(right of first refusal on terms matching those brought to the Board by Member seeking to sell, with verified third-party offer)

		5.	Filing of new patents by NewCo

		6.	Incurrence of Bank or Commercial Financing Debt, or issuance of Debt Instrument (Bond or other debenture) in excess of $100,000

		7.	Annual budget and deviation therefrom (budget to include limits on expenditures and incurrence of liabilities/obligations for
future expenses)

		8.	Profit distributions (except for mandatory distributions required for payment of NewCo taxes on income imputed to Members)

 

    	 

    	 

    

 

 

		9.	Capital Calls.

		10.	Dissolution of NewCo

		11.	Any intercompany sub-agreements affecting this joint venture.

		12.	Any restructuring of the Company’s state of residence, or the selection of a forum or residence for tax purposes for
any of its operating subsidiaries.

13.Any changes to the voting
requirement necessary to adopt any of the foregoing items (1-12 above).

VI. License Fees

 

		o	To be covered in License Agreements from XX and MNGA to NewCo

		o	License Fees to commence upon NewCo achieving a revenue stream or funding in excess of funds required to achieve Validation

		o	License Fees to be structured so that each Licensor recovers costs of IP development and maintenance PLUS nominal amount that
may be legally adequate to enforce patent in its jurisdiction ($100 or less per year)

		o	Any license fees from patents developed by or assigned
to NewCo (e.g. for improvements to JV Process) shall be retained by NewCo and distributed through the process of profit distribution
to Members as outlined in Operating Agreement (pro rata to the Members except as specified in this term sheet for Abatement)

 

VII. Operating Agreement Dispute Resolution Process:

 

		o	Arbitration or mediation process aiming for best practice
to be outlined in Operating Agreement to resolve Board deadlocks or Member disputes

 

VIII. Term & Termination

 

		o	Term will be subject to established goals/milestones:

		1.	If Verification is not attained by 12/31/15, NewCo shall be terminated unless Members elect to extend term by unanimous consent;

		2.	If Validation or a significant commercial sale (not less than $1,000,000) is not attained by 12/31/16, NewCo shall be terminated
unless Members elect to extend term by unanimous consent;

 

    	 

    	 

    
 

		3.	Upon attainment of both above benchmarked performance criteria by the requisite dates, the NewCo term shall be indefinite,
until Members unanimously agree to dissolve.

 

IX.Philosophy, policy, goals and miscellaneous:

 

		o	Parties will respect each other, each other’s property rights, each other’s respective technology and proprietary
information.

		o	Parties are jointly driven by environmental and social goals, although success may be measured in terms of financial results.

		o	New NDAs and Non-Circumvention provisions to be signed by all parties (to be included in Operating Agreement)

		o	Operating Agreement containing provisions covering the foregoing and other provisions deemed standard or necessary under Delaware
law.

		o	XX to have authority and responsibility for Verification (including costs), plus oversight of Validation (excluding costs);
other responsibilities and/or roles of MGNA or XX to be defined, with overall goal of joint cooperation by all parties in furtherance
of MGNA patent protection in India and in any other territory where NewCo might not otherwise be able to expand into due to patent
right issues.

		o	Independent Auditing firm to be selected by joint approval of the Members

		o	Existing “SES”-related documentation between or among the parties hereto shall be terminated and deemed superseded
in all respects by the joint venture contemplated hereby. The parties hereby release and hold each other harmless from any obligations,
damages, causes of action or other claims arising from or relating to any prior agreements between any of them through the date
hereof. referenced SES-referenced

		o	Any equipment or systems sourced to NewCo from any of its Members (or controlled affiliates of such Members) shall be on reasonable
commercial terms.

		o	NewCo to obtain and maintain adequate insurance to include, but not be limited to: product s liability, D&O, General Liability,
Errors & Omissions and other coverage standard for its industry.

		o	To the extent this term sheet is subject to disclosure or publication due to SEC or Nasdaq obligations of MNGA, it shall be
redacted to remove the names of XX and XX and any other information proprietary to them, respectively, which they may request be
redacted from any such public disclosure.

		o	The parties agree that XX may continue to pursue discussions with current contacts that may lead to other opportunities for
the benefit of NewCo, which may or may not be related to the projects and contacts listed on Exhibit A.

		o	In the event of a dispute as to the terms contained in this Term Sheet and the enforcement of same, the parties agree to mediate
such dispute prior to instituting any litigation. Venue for any litigation relating to this Term Sheet or its enforcement shall
lie exclusively in the state or federal courts of Florida, US, each party waiving their right to any other venue.

 

    	 

    	 

    

 

X.Certain Definitions: As used in this Term Sheet, the
following defined terms shall have the meanings ascribed below:

a.Abatement Revenue shall mean
revenue to NewCo resulting from Abatement, as that term is described in Kyoto Protocol, as recognized by the members of this treaty
and, in particular, of Australia.

b.Electric Power Plant
Industry shall mean any business engaging in the production of electric power through the firing of coal and commercial
supply thereof to third party customers (for clarification, this shall not include businesses which produce electric power for
their own consumption and then sell surplus energy to third parties). There shall be a specific exclusion of projects with potential
customers of XX which have signed Confidentiality Agreements with XX as of the date of this term sheet, such projects to be listed
on Exhibit A attached hereto, and provided that such customers enter into definitive contracts for such projects with XX
by no later than December 31, 2015. Exhibit A shall be confidential and excluded from any public filings of any party hereto.

c.Verification
shall mean the “Process Verification” by XX or another similar independent agency recognized for such Process Verfication,
which consists of completion of proof-of-concept demonstrations, analysis and documentation of performance and development of detailed
process models for purposes of evaluating whether or not a product, service or system complies with a regulation, requirement,
specification or imposed condition. The Verification shall be evidenced by a certificate to that effect issued by the Process Verification
agency.

d.Validation shall mean the
“Process Validation” by XX or another similar independent agency recognized for such Process Validation, which consists
of identification and qualification of candidate Carbon Dioxide reduction process applications (including technical and economic
feasibility studies), design, build and test pilot plant scale process for purposes of assuring that a product, service or system
meets the needs of the customer and other identified stakeholders. The Validation shall be evidenced by a certificate to that effect
issued by the Process Validation agency.

e.XXXXXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXXXXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXXXXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXXXXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXXXXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the Members
have executed this Agreement as of this 20th day of March, 2015.

 

 

 

MEMBERS:

 

MNGA:

 

MagneGas Corporation 

 

By:_________________________________

 

Title:________________________________

 

 

By:_________________________________

 

Title:________________________________

 

 

XX:

 

XX

By:_________________________________

 

Title:________________________________

 

 

XX:

 

XX

 

By:_________________________________

 

Title:________________________________

 

    	 

    	 

    

 

CONFIDENTIAL

 

Exhibit A

 

XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXXXXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXXXXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXXXXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX

		1.	XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXXXXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX

		2.	XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXXXXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX

		3.	XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXXXXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX

		4.	XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX

		5.	XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX

		6.	XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX)

		7.	XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX XXXXXX XXX XXX XXX)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00244-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00244-of-00352.parquet"}]]