Document:

aethlon_s8-ex1007.htm

    
      
        

      

    

    EXHIBIT 10.7

    SECURED PROMISSORY
NOTE

     

    
      	 
      	 
      
	 
      	
              Date
      of Issuance:

            
	
              $300,000

            	
              February
      12, 2010

            

    

     

     

    FOR VALUE
RECEIVED, GEMINI MASTER FUND, LTD., a Caymans Islands corporation (the
“Company”), hereby promises to pay AETHLON MEDICAL, INC. (the “Lender”), the
principal sum of Three Hundred Thousand Dollars ($300,000.00) (the “Principal
Amount”), plus interest calculated pursuant to Section 1 below.  Unless
earlier paid under the terms hereof, the principal and accrued interest shall be
due and payable by the Company on demand by the Lender at any time after April
1, 2011 (the “Maturity Date”).

     

    This
Secured Promissory Note (the “Promissory Note”) is issued in connection with
that certain Securities Purchase Agreement between the parties hereto, dated as
of the date hereof (the “Purchase Agreement”), and initially capitalized terms
used but not defined herein shall have the meaning set forth in the Purchase
Agreement.

     

    1.   Interest.  The Company promises to pay
interest to Lender at the rate of five percent (5%) per annum, simple interest,
on the outstanding principal amount of this Promissory Note, which interest
shall be calculated from the date of this Promissory Note, until the date on
which all amounts due and payable on this Promissory Note are paid in full or
this Promissory Note is otherwise cancelled (the “Payoff Date”).  Interest
hereunder shall be paid on a monthly basis, commencing on the 15th date of the month following the month
of issuance of this Promissory Note.  All accrued and unpaid interest shall
be due and payable on the Payoff Date.  All computations of interest shall
be made on the basis of a year of 365 or 366 days, as the case may be, for the
actual number of days (including the first day but excluding the last day)
occurring in the period for which such interest is payable.  Nothing
contained in this Promissory Note shall require the Company at any time to pay
interest at a rate exceeding the maximum rate allowable under applicable law and
any payments in excess of such maximum shall be refunded to the Company or
credited to reduce the principal amount hereunder.

     

    2.   Payment.  All payments shall be made in
lawful money of the United States of America at the principal office of the
Company, or at such other place as the holder hereof may from time to time
designate in writing to the Company.  Payment shall be credited first to
Costs (as defined below), if any, then to accrued interest due and payable and
any remainder applied to principal.  Prepayment of principal, in part or in
full, together with accrued interest, may be made from time to time in the sole
discretion of the Company without the Lender’s consent.  Any amounts
payable hereunder, either pursuant to Section 3 below, at maturity or otherwise,
may be paid, at the election of the Company, by reducing the outstanding balance
under the Note (as defined in the Purchase Agreement) by such
amount.  Without limiting the foregoing, if an Event of Default (as
defined in the Note) occurs under the Note, the Company may offset any amounts
due under the Note from the balance outstanding under this Promissory
Note.

     

    3.   Prepayment
Obligation.
 Notwithstanding the option of the Company to prepay any portion of this
Promissory Note, as set forth in Section 2 hereof, the Company shall prepay, on
a monthly basis beginning on the first business day of the seventh
(7th) full calendar month after the Closing
Date (each date referred to herein as the “Periodic Prepayment Date”), an amount
of principal equal to not less than One Hundred Thousand Dollars ($100,000.00)
(or such lesser amount that equals the remaining outstanding principal and
accrued and unpaid interest under this Promissory Note), with the amount, if
any, in excess of such sum to be determined by and in the sole and absolute
discretion of the Company, until all principal and accrued and unpaid interest
under this Promissory Note has been paid, subject to the satisfaction of each of
the following conditions on each Periodic Prepayment Date:

     

    3.1   The Company may immediately sell all of
the Cash Conversion Shares pursuant to Rule 144, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the
Commission  having substantially the same effect as such Rule, where
“Cash Conversion Shares” shall mean any and all Conversion Shares (as defined in
the Note) issued or issuable upon conversion of such portion of the Note which
has been effectively paid for in cash (either upon the Closing Date or pursuant
to prepayments or repayments hereunder);

     

    
      
         

      

      
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    3.2   No Event of Default (as defined in the
Note) of a material nature has occurred and is continuing under the
Note;

     

    3.3   The average VWAP for every period of
ten consecutive Trading Days during the term of this Promissory Note shall not
be less than $0.20 per share (as adjusted for any stock splits, stock dividends,
combinations, subdivisions, recapitalizations or the like);
and

     

    3.4   The Lender shall have honored all
conversion requests under the Note within the applicable time period set forth
in the Note.

     

    The
amount of any such prepayment made by the Company under the terms of this
Section 3 (each such prepayment referred to herein as a “Periodic Prepayment”)
shall be credited first to Costs, if any, then to accrued interest due and
payable under this Promissory Note and the remainder applied to principal.
 Any prepayment made by the Company under this Promissory Note in excess of
any otherwise required Periodic Prepayment may be applied to any future required
Periodic Prepayment at the option of the Company, subject to the sole and
absolute discretion of the Company.  In the event that the Company fails to
deliver any Periodic Prepayment that is otherwise required under the terms of
this Section 3, the Lender’s sole and exclusive remedy shall be limited to the
Interest Rate being increased by 0.25 percentage points per Periodic Prepayment
required under this Section 3 that is not paid by the Company to the Lender,
provided however, that in no event shall the Interest Rate exceed an amount
equal to twelve and one-half percent (12.5%).  In no event shall any
failure by the Company to pay any Periodic Prepayment required hereunder give
any right to the Lender to collect upon the Collateral or otherwise collect any
outstanding sums under this Promissory Note.

     

    4.   Recourse.  Each
party hereto accepts and agrees that this Promissory Note is a full recourse
promissory note and that subject to the terms of this Promissory Note, Lender
may exercise any and all remedies available to it under the terms of this
Promissory Note and under law.

     

    5.   Security
Interest.  

     

    5.1           To secure the payment and performance
of the Company’s obligations under this Promissory Note, provided however that
any obligations of the Company to prepay any amounts under this Promissory Note
pursuant to Section 3 are not so secured, the Company hereby grants to Lender a
security interest in the Company’s entire right, title, and interest in and to
all of the following, wherever located and whether now existing or owned or
hereafter acquired or arising (collectively, the
“Collateral”):

     

    (a)   all accounts, accounts receivable,
contract rights, rights to payment, letters of credit, documents, securities,
promissory notes, debentures, money, and investment property, whether held
directly or through a securities intermediary, and other obligations of any kind
owed to the Company, however evidenced; and

     

    (b)   all products and proceeds, including
insurance proceeds, of any and all of the foregoing.

     

    Notwithstanding
the foregoing, no security interest is granted in any contract rights if such
grant causes a default enforceable under applicable law or if a third party has
the right enforceable under applicable law to terminate the Company’s rights
under or with respect to any such contract and such third party has exercised
such right of termination.  The Company represents and covenants that
the Collateral has, and shall at all times so long as this Note is outstanding
have, a fair market value greater than $1 million (without consideration of the
value of the Note or Conversion Shares).  The Company represents and
warrants that it has full authority to grant the foregoing security interest and
that no consent or approval of any third party is required for the granting of
the security interest. The Company represents and warrants that notwithstanding
Section 14, the provisions of this Section 5.1 are sufficient to grant a
security interest under the laws of the Cayman Islands and that such grant is
enforceable against the Company under the laws of the Cayman Islands and that no
other corporate or governmental action is required to vest in favor of Lender a
security interest in the Collateral.

     

    5.2   The security interest on the Collateral
granted by this Promissory Note shall continue and remain in effect until
terminated pursuant to subsection 5.4 below.

     

    
      
         

      

      
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    5.3   The Company shall execute any further
documents reasonably requested by Lender, which are necessary or appropriate to
perfect Lender’s security interest in the Collateral.

     

    5.4    Upon the
Payoff Date, the security interest granted pursuant to this Section 5 shall
terminate, and Lender shall promptly execute and deliver to the Company such
documents and instruments reasonably requested by the Company as shall be
necessary to evidence termination of all security interests given by the Company
to Lender hereunder.

     

    5.5   So long as an Event of Default does not
exist, the Company shall have the right to possess the Collateral, manage its
property and sell its inventory in the ordinary course of
business.

     

    6.   Event of
Default.  An “Event
of Default” shall exist under this Promissory Note upon the happening of a
failure of the Company to pay the outstanding Principal Amount and all other
outstanding sums under this Promissory Note, including accrued and unpaid
interest thereon, on the Maturity Date, provided that such sums have not
previously been paid, at the Company’s sole option, prior to the Maturity Date,
which failure is not cured within 15 days after the Company’s receipt of written
notice thereof sent by Lender to the Company.  Any failure by the Company
to pay any Periodic Prepayment that may otherwise be due under this Promissory
Note shall not be an Event of Default under this Promissory Note.  Upon the
occurrence of an Event of Default, Lender shall have all of the rights and
remedies afforded by the Uniform Commercial Code as from time to time in effect
in the State of California or afforded by other applicable
law.

     

    7.    [Intentionally
omitted.]

     

    8.   Amendments
and Waivers; Cure Period.
 This Promissory Note may not be amended without the prior written consent
of each of the Company and the Lender.  Any waiver by the Company or the
Lender of a breach of any provision of this Promissory Note shall not operate as
or be construed to be a waiver of any other breach of such provision or of any
breach of any other provision of this Promissory Note.  The failure of the
Company or the Lender to insist upon strict adherence to any term of this
Promissory Note on one or more occasions shall not be considered a waiver or
deprive that party of the right thereafter to insist upon strict adherence to
that term or any other term of this Promissory Note.  Any waiver by the
Company or the Lender must be in writing.  Any amendment or waiver effected
in accordance with this Section 8 shall be binding upon Lender and Lender’s
successors and assigns.  Any party to this Promissory Note shall have a
cure period of not less than thirty (30) days after receipt of written notice of
any alleged breach or default (except as may otherwise be provided for a payment
default) under the terms of this Promissory Note to cure such alleged breach or
default.

     

    9.   Transmittal
of Notices.  Except
as may be otherwise provided herein, any notice or other communication or
delivery required or permitted hereunder shall be in writing and shall be
delivered personally, or sent by telecopier machine or by a nationally
recognized overnight courier service, and shall be deemed given when so
delivered personally, or by telecopier machine or overnight courier service as
follows:

     

    If to the
Lender, to:

    AETHLON
MEDICAL, INC.

    8910
University Center Lane, Suite 660

    San
Diego, CA 92122

    Attn:
James A. Joyce, CEO

    Facsimile:
(858) 272-2738

     

    If to the
Company, to:

     

    GEMINI
MASTER FUND, LTD.

    c/o
Gemini Strategies, LLC

    135
Liverpool Drive, Suite C

    Cardiff,
California 92007

    Fax:  (858)
509-8808

     

    Each of
the Lender or the Company may change the foregoing address by notice given
pursuant to this Section 9.

     

    
      
         

      

      
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    10.   Successors
and Assigns.  This
Promissory Note applies to, inures to the benefit of, and binds the successors
and assigns of the parties hereto.  Neither the Lender nor the Company may
assign its rights under this Promissory Note without the written consent of the
other party to this Promissory Note, provided, however, that the Company may
assign its obligations under this Promissory Note to any Affiliate of the
Company in the sole and absolute discretion of the Company, without any prior
consent by the Lender, provided that such transferee or assignee agrees in
writing to be bound by and subject to the terms and conditions of this
Promissory Note including the granting of a security interest in such
Affiliate's assets in accordance with the terms of Section 5.1.  Upon any
such transfer of this Promissory Note by the Company or the Lender, the Lender
shall, upon notice, surrender this Promissory Note to the Company for reissuance
of a new note to the transferee.  Any transfer of this Promissory Note may
be effected only pursuant to the terms hereof and by surrender of this
Promissory Note to the Company and reissuance of a new note to the transferee.
 The Lender and any subsequent holder of this Promissory Note receives this
Promissory Note subject to the foregoing terms and conditions, and agrees to
comply with the foregoing terms and conditions for the benefit of the Company
and any other Lenders.

     

    11.   Officers
and Directors Not Liable.
 In no event shall any officer or director or affiliate of the Company be
liable for any amounts due and payable pursuant to this Promissory
Note.

     

    12.   Expenses.  Should any party hereto employ
an attorney for the purpose of enforcing or construing this Promissory Note, or
any judgment based on this Promissory Note, in any legal proceeding whatsoever,
including insolvency, bankruptcy, arbitration, declaratory relief or other
litigation, the prevailing party shall be entitled to receive from the other
party or parties thereto reimbursement for all reasonable attorneys' fees and
all reasonable costs, including but not limited to service of process, filing
fees, court and court reporter costs, investigative costs, expert witness fees,
and the cost of any bonds, whether taxable or not (collectively, “Costs”), and
that such reimbursement shall be included in any judgment or final order issued
in that proceeding.  The "prevailing party" means the party determined by
the court to most nearly prevail and not necessarily the one in whose favor a
judgment is rendered.

     

    13.   Remedies
Not Waived.  No
course of dealing between the parties hereto or any delay in exercising any
rights hereunder shall operate as a waiver by such party.

     

    14.   Governing Law.
 This Promissory Note shall be governed by and construed under the laws of
the State of California as applied to other instruments made by California
residents to be performed entirely within the State of California.  With
respect to any suit, action or proceedings relating to this Promissory Note,
each of the Lender and the Company irrevocably submits to the exclusive
jurisdiction of the courts of the State of California sitting in San Diego and
the United States District Court located in the City of San Diego and hereby
waives, to the fullest extent permitted by applicable law, any claim that any
such suit, action or proceeding has been brought in an inconvenient forum.
 Subject to applicable law, each of the Company and the Lender agrees that
final judgment against it in any legal action or proceeding arising out of or
relating to this Promissory Note shall be conclusive and may be enforced in any
other jurisdiction within the United States by suit on the judgment, a certified
copy of which judgment shall be conclusive evidence thereof and the amount of
the indebtedness, or by such other means provided by law.

     

    [Signature Page
Follows]

     

    
      
         

      

      
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    IN
WITNESS WHEREOF, the Company has duly caused this Promissory Note to be executed
and delivered on the date first above written.

    

    

    GEMINI
MASTER FUND, LTD.

    By: GEMINI
STRATEGIES, LLC, as investment manager

    

    By: 
/s/ Steven
Winters                                                

    Steven
Winters, Managing Member

     

     

     

     

    
      
         

      

      
        5LawDepot.com's Joint Venture Agreement

  Exhibit 10.3
 

 JOINT VENTURE AGREEMENT
 THIS JOINT VENTURE AGREEMENT (the "Agreement") made and entered into this 28th day of July, 2009 (the "Execution Date")

BETWEEN
 Aquentium, Inc.
 

 OF THE FIRST PART
 and

Clinton Jim
 OF THE SECOND PART
 (Individually the "Party" and collectively the "Parties").
 BACKGROUND:
 A.
 The Parties wish to enter into an association of mutual benefit and agree to jointly invest and set up an alternative energy joint venture company. 
 B.
 The terms and conditions of this Agreement sets out the terms and conditions governing this association. 
 C.
 Each Party represents and warrants that they have the right to enter into this Agreement.
 IN CONSIDERATION OF and as a condition of the Parties entering into this Agreement and other valuable consideration, the receipt and sufficiency of which consideration is acknowledged, the parties to this Agreement agree as follows:
 Formation 
 1.
 By this Agreement the Parties enter into a joint venture (the "Venture") in accordance with the laws of the State of Delaware. The rights and obligations of the Parties will be as stated in the applicable legislation of the State of Delaware (the 'Act') except as otherwise provided here. 

Name
 2.
 The business name of the Venture will be “New American Energy Technologies”.

Purpose
 The exclusive purpose of the Venture will be: Harvesting and production of algae on 475.458 acres of Indian allotment land located in Standing Rock, New Mexico.  These properties as Identified in Exhibit A consist of 475.458 acres of private land (owned free and clear title) produced from the records of the Southwest Land Title Records Office of 
 

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 the Bureau of Indian Affairs which reflect that Clinton Jim is the sole owner of Indian Trust Allotments parcel #730 (161.560 acres) parcel, 819# (160 acres) and parcel #260662 (153.890 acres) Standing Rock, New Mexico.  

Term
 1.
 The Venture will begin on July 28, 2009 and will continue to be effective through July 27, 2108. 

Place of Business
 2.
 The legal address of the business of the Venture will be located at 5188 Western Way Perris, CA 92571 or such other place as the Parties may from time to time designate.

Business Management
 3.
 The Venture will be directed by Aquentium who will form a management committee (the "Management Committee"). Within the limits of the Purpose of the Venture and the terms of this Agreement, the Management Committee will have full authority to bind the Parties in all matters relating to the direction, control and management of the Venture. Authority to bind the Venture in contract or in any third party business relation lies exclusively with Management Committee, or its delegate.
 4.
 A General Manager may be appointed where necessary or desirable. Duties of the General Manager will be determined by the Management Committee.

Capital Contributions
 5.
 Each of the Parties has contributed to the capital of the Venture, in cash or property , as follows (the "Capital Contribution"):

 	 	 	
	 Party
	 Contribution Description
	  

	 Clinton  Jim
	  475.450 acres as Identified in Exhibit A 
	  

	 Aquentium
	 Capital identified in Exhibit B. 
	  

  6.
 Each Party will contribute its respective capital contributions fully and on time according to the following schedule:

 	 	
	 Party
	 Contribution Schedule Description

	 Clinton Jim
	 Signed JVA as of July 28, 2009 whereby Clinton Jim agrees to assign 475.450 acres of land to the Joint Venture effective immediately.   

	 Aquentium, Inc.
	 Will secure all the necessary funding for implementation of equipment and operations for algae farming on the 480 acres. If the project is not funded within 24 months, then the JV agreement is void. It is anticipated that operations of the plant will commence within 12 months of funding.

  
Duties of Parties 
 7.
 Each Party will be responsible for its respective duties as follows:

 	 	
	 Party
	 Duties Description

	 Clinton Jim
	 Has no day-to-day responsibilities in the operation, management or decision processes of the JV or Aquentium. As agreed by all parties, Clinton Jim is to be in a "Hold Harmless" position relative to the JV and Aquentium’s activities, decisions and commitments. Clinton Jim has limited liability only to the extent of assets brought to the Joint Venture. Clinton Jim shall maintain all business obligations in good standing, in such away as not to jeopardize the integrity and disposition of the subject property associated with this transaction.  Clinton Jim shall not enter into outside activities and or business arrangements, involving subject assets, which may affect the integrity of this agreement and or business relationship. 

	 Aquentium or its designee
	 Full day-to-day operations responsibilities as well as business development consistent with the business plan for this alternative energy project. Aquentium shall endeavor to carry out its primary responsibility, the raising of necessary funds to complete the implementation and ongoing algae plant.
    

  8.
 Withdrawal of Assets
 Upon signing this agreement, all land committed to the project must remain in the project unless funding does not occur within 24 months. 
 Capital Requirements
 9.
 It is anticipated that the 475.450 acre project will require financing of approximately 35,000,000 USD. Clinton Jim is not obligated to add any capital to the JV during the life of the project.  
 

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 10.
 Any advance of money to the Venture by any Party in excess of the amounts provided for in this Agreement or subsequently agreed to as an Additional Capital Contribution will be deemed a debt due from the Venture rather than an increase in Capital Contribution of the Party. This liability will be repaid with interest at such rates and times to be determined by the management committee.   Such debts will have preference or priority over any other payments to Parties.  
       Capital Payment
 11.
 Aquentium will pay a one time fee of $15,000 USD to Clinton Jim for securing the use of the 475.450 acres for this project. No additional payment will be due to Clinton Jim, his family or any associates until the plant is fully operational.    
            Annual Payment
 12.
 The joint venture company will pay $250,000 per year to Clinton Jim for his participation in the JV regardless of the profit or loss by the JV operation, or the market price for the commodity being produced. This payment will be paid in equal amounts each quarter.

Plant Operations
 13.
 Job positions will be offered to Clinton and Pat Jim, and Marshall Jack to be paid at normal labor salaries for work to be done on a daily basis for the JV.
         Fiscal Year
 14.
 The fiscal year will end on December 31st of each year.

Bank Accounts
 15.
 The funds of the Venture will be placed in such investments and banking accounts as will be designated by Aquentium. Venture funds will be held in the name of the Venture and will not be commingled with those of any other person or entity.
       Management Duties
 16.
 Duties and obligations of the Management Committee in relation to the Venture will include the following:
 a.
 Establishing policy with regard to achieving the purpose and objectives of the Venture. 
 b.
 Managing the day to day business of the Venture. 
 c.
 Monitoring, controlling and directing the financial, business and operational affairs of the Venture. 
 d.
 Proper maintenance of books of account and financial records according to accepted accounting practices. 
 e.
 Monitoring, analyzing and acting on all issues over which it would have express or implied authority according to this Agreement. 
 

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 f.
 All responsibilities attached to hiring of production and administration staff including any required labor negotiations. All responsibilities attached to hiring of third party contractors.
 Meetings 
 17.
 Regular management meetings will be held only as required. Minutes of the meeting will be maintained on file.
 18.
 Amendments
 Any and all amendments must be agreed to in writing by both parties. 
 19.
 Dissolution of the Joint Venture
 The Venture will be dissolved and its assets liquidated in the event of any of the following:
 a.
 The Term of the Venture expires and is not extended. 
 b.
 Agreed buyout by one party to the other.
 Force Majeure
 20.
 Either party will be free of liability to the Venture where the party is prevented from executing their obligations under this Agreement in whole or in part due to force majeure where the party has communicated the circumstance of said event to any and all other party and taken any and all appropriate action to mitigate said event. Force Majeure will include, but not be limited to, earthquake, typhoon, flood, fire, and war or any other unforeseen and uncontrollable event.

 21.
 Confidentiality
 22.
 All matters relating to this Agreement and the Venture will be treated by the all parties as confidential and no party will disclose or allow to be disclosed any said matter or matters, directly or indirectly, to any third party without the prior written approval of all parties except where the information properly comes into the public domain, or for the purpose of securing funds necessary for the benefit of the Venture.
 23.
 This section will survive for 5 years after the expiration or termination of this Agreement or dissolution of the Venture.

Language
 24.
 This Agreement and all other notices and agreements required by the Venture will be written and interpreted exclusively in English.

Insurance
 25.
 The Venture will insure all its assets against loss where reasonable and standard practice in the industry.

 

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Indemnification
 26.
 Each Party will be indemnified and held harmless by the Venture from any and all harm or damages of any nature relating to the parties participation in Venture affairs except where the said harm or damages results from gross negligence or willful misconduct on the part of the Party. Both Parties shall defend, indemnify and hold the other Party harmless from and against any and all claims, obligation, expenses (including attorney's fees and costs), litigation and judgments of any kind whatsoever arising from or related to any warranty, representation or individual action of one (Causing) Party which results in the other (Defending) Party to be enjoined in a legal action. The Defending Party may receive as one of its remedies assignment for the Causing Party’s interest in the JV as full or partial settlement for the costs of this Indemnification.
 Liability
 27.
 The Party will not be liable to the Venture or to any other Party for any error in judgment or any act or failure to act where made in good faith. The Party will be liable only for any and all acts or failures to act resulting from gross negligence or willful misconduct.

Liability Insurance
 28.
 The Venture may acquire insurance on behalf of any Party, employee, agent or other person engaged in the business interest of the Venture against any liability asserted against them or incurred by them while acting in good faith on behalf of the Venture.

Covenant of Good Faith
 29.
 Each Party will use their best efforts, fairly and in good faith to facilitate the success of the Venture.

Full Disclosure
 30.
 It is acknowledged that each Party is a distinct business entity and may from time to time have financial and business interests outside the Venture. Each Party will fully disclose to the Venture the extent of all its financial and business interests, as it may pertain directly to this project and/or venture, prior to the formation of this Joint Venture and for the duration of the Term of the Venture.

Joint Venture Property
 31.
 Where allowed by statute, title to all Joint Venture property, including intellectual property, will remain in the name of the Joint Venture. Where joint ventures are not recognized by statute as separate legal entities, Joint Venture property, including intellectual property, will be held in the name of one or more Parties. In all cases Joint Venture property will be applied by the Parties exclusively for the benefit and purposes of the Joint Venture and in accordance with this Agreement.

 

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Jurisdiction
 32.
 The Parties submit to the jurisdiction of the courts of the State of Delaware for the enforcement of this Agreement or any arbitration award or decision arising from this Agreement.

Assignment of Interest
 33.
 The rights and obligations of a Party are unique to the Joint Venture and may not be assigned without the expressed written consent of the other Party.

Mediation and Arbitration
 34.
 In the event a dispute arises out of or in connection with this Agreement the parties will attempt to resolve the dispute through friendly consultation.
 35.
 If the dispute is not resolved within a reasonable period then any or all outstanding issues may be submitted to mediation in accordance with any statutory rules of mediation. If mediation is not successful in resolving the entire dispute or is unavailable, any outstanding issues will be submitted to final and binding arbitration in accordance with the laws of the State of Delaware. The arbitrator's award will be final, and judgment may be entered upon it by any court having jurisdiction within the State of Delaware.

Warranties
 36.
 All Parties represent and warrant that they have all authority, licenses and permits to execute and perform this Agreement and their obligations under this Agreement and that the representative of each Party has been fully authorized to execute this Agreement.
 37.
 Each Party represents and warrants that this Agreement is not in violation of any and all agreements and constitutional documents of the individual Party.

Additional Terms
 38.
 Aquentium shall be responsible for 100% of the capital required to complete this algae production facility.  Aquentium will be responsible for ongoing operations of said algae production. 
 39.
 Clinton and Pam Jim shall cooperate with Aquentium in providing general and vital information as to the status of the 480 acre property, in order to expedite the fulfillment and satisfaction of this agreement.  
 Definitions
 For the purpose of this Agreement, the following terms are defined as follows:
 a.
 "Capital Contributions" The capital contribution to the Joint Venture actually made by the parties, including property, cash and any additional capital contributions made.
 

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 b.
 "Operation of Law" The Operation of Law means rights or duties that are cast upon a party by the law, without any act or agreement on the part of the individual including but not limited to an assignment for the benefit of creditors, a divorce, or a bankruptcy.
 Miscellaneous
 40.
 This Venture is termed a contractual joint venture and will not constitute a Partnership. Parties will provide services to one another on an arms' length basis while remaining independent business entities. There will be no pooling of profits and losses. Each Party is responsible only for its own actions and will not be jointly or severally liable for the actions of the other Party.
 41.
 Time is of the essence in this Agreement.
 42.
 This Agreement may be executed in counterparts. Facsimile signatures are binding and are considered to be original signatures. All documents must be notarized.
 43.
 Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine gender include the feminine gender and vice versa. Words in the neuter gender include the masculine gender and the feminine gender and vice versa.
 44.
 Each term, covenant, condition, and provision of this Agreement will be interpreted in such a manner as to be effective and valid under applicable law but if any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, it is the parties' intent that such provision be reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable and the remainder of the provisions of this Agreement will in no way be affected, impaired or invalidated as a result.
 45.
 This Agreement contains the entire agreement between the parties. All negotiations and understandings have been included in this Agreement. Statements or representations which may have been made by any party to this Agreement in the negotiation stages of this Agreement may in some way be inconsistent with this final written Agreement. All such statements are declared to be of no value in this Agreement. Only the written terms of this Agreement will bind the parties.
 46.
 This Agreement and the terms and conditions contained in this Agreement apply to and are binding upon the Parties successors, assigns, executors, administrators, beneficiaries, and representatives.
 47.
 Any notices or delivery required here will be deemed completed when delivered via certified mail, to the parties at the addresses contained in this Agreement or as the parties may later designate in writing.
 

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 48.
 Unless expressly provided to the contrary in this Agreement, each and every one of the rights, remedies and benefits provided by this Agreement will be cumulative and will not be exclusive of any other such rights, remedies and benefits allowed by law.
 49.
 Tax Advice and Representation: Each Party has, and will, rely on their own tax advice and is responsible for their own independent US tax requirements. No Party has relied on the other for any tax advice and neither party shall rely on the other in the future for same. Each Party bears their own responsibility and is qualified and experienced in investments to enter into this Venture.
 

 50.
 Each Party has reviewed this agreement with legal counsel prior to signing this agreement.
 

 IN WITNESS WHEREOF the Parties have duly affixed their signatures under hand and seal on this _____28th__________________day of July, 2009.

 	 	 	
	  
	 Clinton Jim       /s/ Clinton Jim

	 Per: /s/Jonnie Noragt (Seal)
	  

	 State of New Mexico
 County of McKinley
 My commission expires 9-17-2012
	  

	  
	 Aquentium, Inc.

	 

 Per: /s/Mark Taggatz 
	  

	 
 

  

 

 Exhibit A
 Title of Land for Algae Production as described in the Bureau of Indian Affairs/Tribal Interest Report dated July 27, 2009 at 16:50:48 CST, consisting of 475.458 acres of private land (owned free and clear title) produced from the records of the Southwest Land Title Records Office of the Bureau of Indian Affairs which reflect that Clinton Jim is the sole owner of Indian Trust Allotments parcel #730 (161.560 acres) parcel, #819 (160 acres) and parcel #260662 (153.890 acres) Standing Rock, New Mexico.  Report Attached

 

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 Exhibit B
 Algae Production Facility Budget for 475.450 acres in Standing Rock, New Mexico
 Approximate cost: 35 million USD 
 

 

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