Document:

exv10w1

Exhibit 10.1

T3 MOTION, INC. DISTRIBUTION AGREEMENT

     THIS AGREEMENT (the “Agreement”) is made this 19th Day of March, 2009 (the “Effective Date”),
by and between T3 Motion, Inc., a Delaware corporation (“T3 Motion”), and Spear International, LTD.
a company incorporated under the laws of the Bahamas (“Distributor”). T3 Motion and the
Distributor are sometimes referred to herein as a “Party” or collectively as the “Parties.” The
Parties agree as follows:

     WHEREAS, T3 Motion is engaged in the business of providing a state of the art personal
mobility vehicle and ancillary related goods (the “Products”), as described in Exhibit A;

     WHEREAS, Distributor desires to purchase, promote, market, sell, and distribute the Product in
a specified geographic area; and

     WHEREAS, T3 Motion wishes to obtain the services of Distributor to act as an authorized
representative of T3 Motion for the purpose of promoting, selling and distributing the Product in
the specified geographic area.

NOW THEREFORE, in consideration of the promises and of the mutual agreements and
understandings below, the Parties agree as follows:

1.0 APPOINTMENT OF DISTRIBUTOR AND LICENSES GRANTED

1.1 Exclusive Appointment.

          (a) T3 Motion appoints Distributor as its exclusive distributor in the sales territory as
defined in Exhibit B (the “Exclusive Territory”) and as a non-exclusive distributor in the
sales territory defined in Exhibit B (the “Non-Exclusive Territory,” and together with the
Exclusive Territories, the “Territory”), and Distributor accepts such appointment. Distributor has
the exclusive, non-transferable right (subject to the Distributor’s assignment rights as set forth
in Section 12h and the Distributor’s right to appoint Dealers and sub-distributors as set forth in
Section 4.9) and license to promote, market, sell, and distribute the Products within the
Territory during the Initial Term and any subsequent Renewal Term(s) (as defined in Section 10.1)
to commercial, governmental or other organizational end user markets (i.e., Government, Military,
and Law Enforcement, only sales can only be made to commercial or professional end users) as well
as high net worth individuals as set forth within the Territories defined in Exhibit B.

          (b) Distributor agrees that its status as an exclusive T3 Motion Distributor in the Exclusive
Territory depends upon its meeting, and continuing to meet, standards of performance described
herein, including minimum sales requirements, as set forth in Exhibit C attached. During
the Term of this Agreement, without the Distributor’s prior written consent, T3 Motion shall not
appoint any other distributors in the Exclusive Territory other than the Distributor and

 

 

will not allow any other person or entity to provide T3 products and/or services in the
Exclusive Territory other than the Distributor, other than in accordance with the provisions of
Article 10.9 of this Agreement.

1.2 Restrictions.

          (a) Distributor shall not seek customers for the Products outside the Territory nor establish
or maintain any authorized branch or distribution center outside the Territory without T3 Motion’s
prior written consent. Distributor shall not solicit orders from any prospective purchaser with
its principal place of business located outside the Territory. If Distributor receives any order
from a prospective purchaser whose principal place of business is located outside the Territory,
Distributor shall immediately refer that order to T3 Motion. Distributor shall not accept any such
orders. Distributor may not deliver or tender (or cause to be delivered or tendered) any Product
outside of the Territory. Distributor shall not sell any Products to a purchaser if Distributor
knows or has reason to believe that such purchaser intends to remove those Products from the
Territory. Distributor may resell the Products to, any other distributor of T3 Motion or any other
provider of T3 products and services both in and outside of the assigned exclusive Territory (with
the exception of North America) with T3’s prior written consent. Distributor will provide repair
and maintenance services for any sale made by distributor outside of its defined Territory.

          (b) Except as provided in this Section 1.2(b), Distributor may alter, modify, or otherwise
make changes to the Product as long as the changes do not alter the machinery of the product.
Distributor may only install additional electronic or mechanical assemblies onto the Product with
prior written approval by T3 Motion. Distributor may also install sales decals and install
additional aftermarket lighting or customer requested paint and graphics only with T3 Motion’s
prior written consent, which may not be unreasonably withheld. Distributor specifically
acknowledges and agrees to purchase and distribute all Products as received without any alterations
to the T3 Motion branding.

1.3 Limited Trademark License.

          (a) Distributor is authorized to use the T3 Motion trademarks, service marks and trade names
(the “Marks”) as identified in Exhibit C under the terms and conditions contained therein, solely
in connection with the promotion, sale and marketing of the Product. Any unauthorized use or
misuse of the Marks or any use which is not in compliance with T3 Motion’s procedures is a breach
of this Agreement. The Marks are and shall remain the exclusive property of T3 Motion. T3 Motion
grants Distributor only a limited license to reproduce the Marks to promote and market the Product
during the Initial Term and any Renewal Term(s). All Logos and markings are to remain on the
Product as it is shipped by T3 Motion. Alteration(s) to any Product must receive prior approval
from T3 Motion. Any such use of a Mark by Distributor must correctly attribute ownership of such
mark to T3 Motion and must be in accordance with applicable law and T3 Motion’s then-current
trademark usage guidelines. Distributor will not remove or obscure any Marks on or in the
Products.

Distributor agrees that nothing in this Agreement gives it any right, title or interest in the
Marks (except the right to use the Marks in accordance with the terms of this Agreement), and that
the

 

 

Marks are the sole property of T3 Motion and its affiliates. Distributor shall not contest the
validity or ownership of the Marks or T3 Motion’s right to license the Marks. Distributor agrees
that any and all uses by Distributor of the Marks and the goodwill arising therefore shall be
limited to the identification of Distributor as an authorized Distributor of Products. Distributor
will not seek to register, re-register, assert claim to ownership of, license or allow others to
use, or otherwise appropriate to itself any of the Marks or any mark or name confusingly similar
thereto, or the goodwill symbolized by any of the foregoing without obtaining the prior written
approval of T3 Motion. Distributor will at no time contest or aid in contesting the validity of
ownership of any Mark or take any action in derogation of T3 Motion’s rights herein, including,
without limitation, selling any product or applying to register any trademark, trade name or other
designation that is confusingly similar to any Mark.

          (b) The obligations undertaken by Distributor pursuant to this Section shall survive
termination of this Agreement, and in the event of such termination, Distributor agrees not to
register or use any trademarks or trade names that are the same as, or confusingly similar to, the
Marks both within and outside of the Territory.

          (c) Distributor shall promptly notify T3 Motion of any and all infringements of the
Intellectual Property pertaining to the Products that may come to Distributor’s attention and shall
assist T3 Motion in taking such action against said infringements as T3 Motion, in its sole
discretion, may decide. All expenses and costs of such legal action, including those of
Distributor to the extent requested by T3 Motion, shall be paid by T3 Motion.

1.4 No Solicitation of Other Parties.

          (a) During the term of this Agreement, T3 Motion will not intentionally target Distributor’s
customers and/or their affiliates (the Distributor’s Customers”), nor knowingly solicit
Distributor’s Customers nor knowingly sell any products or services to Distributor’s Customers in
any manner whatsoever. The term Distributor’s Customers shall include any person or entity to whom
the Distributor has sold products or services to, introduced T3 Motion’s products or services to
and/or provided Product marketing and/or sales materials to, within the Territory. Distributor
will not intentionally target T3 Motion’s Customers, nor knowingly solicit T3 Motion’s Customers on
the basis of any information that T3 Motion may provide, or which Distributor may naturally acquire
through the relationship of the Parties.

1.5 Relationship between Parties.

          (a) The relationship between T3 Motion and Distributor is that of independent contractor and
under no circumstance shall any of the employees of one Party be deemed to be the employees of the
other. This Agreement shall not be construed as authority for either Party to act for the other
Party in any agency or other capacity or to make commitments of any kind for the account of, or on
behalf of, the other Party, except to the extent, and for the purposes of, expressly provided
herein. Each Party acknowledges that it is not, and shall not hold itself out as, a joint venture,
franchisee, partner or employee of the other Party. The relationship created by this

 

 

Agreement is not intended by the Parties to constitute the granting of a franchise to Distributor
by T3 Motion. The Agreement will serve as a license to resell T3 Motion’s products and service.
Distributor expressly acknowledges and confirms that it has not paid and will not pay any fee to T3
Motion in connection with this Agreement and that none of the terms, conditions or amounts provided
for in this Agreement can be characterized to constitute such a fee.

1.6 Competition. Distributor shall not directly sell, contract to sell or arrange for
the sale of any products that compete with the Products. (as defined by exhibit A). T3 understands
and agrees that the Distributor may engage sub-dealers and/or sub-distributors that sell products
that may compete with the Products. The Distributor shall not share in any profits derived by such
dealers and/or sub-distributors from the sale of products competing with the Products.

2.0 PURCHASE AND RESALE OF PRODUCTS AND SERVICES

2.1 Sale of Products.

          (a) Distributor shall purchase the Products from T3 Motion and shall re-sell the Products to
Distributor’s Customers subject to all applicable T3 Motion tariffs, if any, now or hereafter filed
with federal and/or state authorities (“T3 Motion Tariffs”). T3 Motion shall have no obligation to
pay any taxes on the sale of the Products in the Territory and Distributor agrees to indemnify and
reimburse T3 Motion for any such taxes imposed on T3 Motion by any Governmental Entity.
“Governmental Entity” shall mean any federal, state, local, international, foreign, or any other
court of competent jurisdiction, legislature, governmental agency, administrative agency or
commission or other governmental authority or instrumentality. The Distributor shall order from T3
Motion, and T3 Motion shall sell to Distributor, Products at the rates described in Exhibit A. T3
Motion agrees to work with Distributor to help facilitate achieving the minimum tax and duties.
(IE: Help define the proper harmonized codes to ensure the lowest taxes and duties upon import into
sales territory.)

2.2 No Proprietary Interest.

          (a) Neither Distributor nor any of Distributor’s Customers shall acquire any proprietary
interest in any of the Products, which shall remain T3 Motion’s property. Any improvements,
modifications or changes made to the Products, either by Distributor or Distributor’s Customers
shall be assigned to T3 Motion and be the proprietary interest of T3 Motion.

2.3 Prices and Payment.

     (a) On the Effective Date, Distributor shall provide to T3 Motion a forecast for the next
three calendar months of Distributor’s anticipated requirements of the Products and indicating the
desired delivery dates. Distributor shall update this forecast on a rolling basis from month to
month. Each update to the forecast will be due by the close of business at the end of the first
week of each month. Distributor shall thereafter from time to time place firm orders with T3 Motion
upon receipt of orders from the Distributor’s clients.

	 	i.	 	Payment and Blanket Purchase Order Call off process

 

 

	 	1.	 	Distributor places a Blanket Purchase order for
the full contract volume.
	 
	 	2.	 	Distributor submitted a monthly forecast with a
rolling 90 day window of visibility.
	 
	 	3.	 	Distributor submits a release to the Blanket
Purchase order (Order call off) _for the next 30 days of volume of
product the Distributor would like released for shipment. As the lead
time of product is 30 days after receipt of call of and it would be
required to meet shipment lead time.
	 
	 	4.	 	Either an irrevocable bank letter of credit (or
equivalent) or process a wire transfer prior to shipment.
	 
	 	5.	 	Payment for products would be made prior to
shipment as defined in Exhibit A.

     (b) Distributor shall order Products from T3 Motion by submitting a firm written order call
off to a blanket purchase order in the form attached hereto as Exhibit E (“Blanket Purchase Order
and Order Release/Call Off”), identifying the Products ordered, requested delivery date(s) and any
export/import information required to enable T3 Motion to fill the order. All orders for Products
are subject to acceptance by T3 Motion at 2990 Airway, Suite B, Costa Mesa, 92626, telephone: (714)
619-3600.

     T3 Motion shall have no liability to Distributor with respect to purchase orders which are not
accepted; provided, however, that T3 Motion will not unreasonably reject any
purchase order for Products which does not require any modifications or additions in order to meet
the specifications of Distributor or its customers.

     (c) If a Firm Purchase Order Call Off is accepted in accordance with Section 2.3(b) above,
the prices for Products covered by such Firm Purchase Order Call Off shall be T3 Motion’s net
distributor prices Exworks for the place of origin specified in a Firm Purchase Order Call Off
which are in effect on the date of T3 Motion’s acceptance. T3 Motion may from time to time change
those prices provided such changes are directly related to actual changes in freight costs, as
freight and transportations costs are Distributors responsibility, such change being effective
immediately upon Distributor’s receipt of notice thereof; provided, however, that
no price change shall affect Firm Purchase Order Call Offs offered by Distributor and accepted by
T3 Motion prior to the date such price change becomes effective. Products price may only change if
mutually agreed upon by both parties. Risk of loss and damage shall be as set forth in Section 2
(h) below and T3 shall arrange for delivery of Products to the place of delivery designated in the
Firm Purchase Order Call Off at Distributor’s expense as set forth above.

     (d) Distributor shall be free to establish its own pricing for Products sold. Distributor
shall notify T3 Motion of its pricing, as in effect from time to time.

     (e) The ultimate shipment of orders to Distributor shall be subject to the right and ability
of T3 Motion to make such sales and obtain required licenses and permits, under all decrees,
statutes, rules and regulations of the government of the U.S. and agencies or

 

 

instrumentalities
thereof presently in effect or which may be in effect hereafter, in particular, but without
limitation, legislation pertaining to International Traffic-in-Arms and other export
controls. T3 has obtained all permits and licenses necessary to sell the Products to the
Distributor for delivery in the Territories. See Exhibit F

     (f) Distributor hereby agrees: (i) to assist T3 Motion in obtaining any such required
licenses or permits by supplying such documentation or information as may be requested by T3
Motion; (ii) to comply with such decrees, statutes, rules and regulations of the government of U.S.
and agencies or instrumentalities thereof; (iii) to maintain the necessary records to comply with
such decrees, statutes, rules and regulations; (iv) not to re-export any Products except in
compliance with such decrees, statutes, rules and regulations; (v) to obtain all governmental
approvals and licenses necessary to import the Products into the Territory; (vi) not to sell,
transfer or otherwise dispose of the Products in violation of the export laws of U.S.; and (vii) to
indemnify and hold harmless T3 Motion from any and all fines, damages, losses, costs and expenses
(including reasonable attorneys’ fees) incurred by T3 Motion as a result of any breach of this
subsection by Distributor or any of Distributor’s customers. (NOTE: Distribution business
decision) See Exhibit F

     (g) Distributor hereby expressly acknowledges that the technical data and the direct product
thereof are subject to export controls of the U.S. and agrees that neither the technical data nor
the direct product thereof will be transferred, directly or indirectly, to any destination contrary
to the requirements of the law of the U.S., including but not limited to the terms of any export
license and the terms of Part 774 (re-exports) of the U.S. Export Administration Regulations.
Further, Distributor hereby provides its assurance that it will not participate in any transaction
which may involve any commodity or technical data, or the direct product thereof, exported or to be
exported from U.S., or in any re-export thereof, or in any other transaction that is subject to
export controls of U.S., if a person denied export privileges from U.S. may obtain any benefit from
or have any interest in, directly or indirectly, these transactions. Distributor to determine. T3’s
controls are defined within Exhibit F.

     (h) Unless Distributor requests otherwise, all Products ordered by Distributor shall be packed
for shipment and storage in accordance with T3 Motion’s standard commercial practices. It is
Distributor’s obligation to notify T3 Motion of any special packaging requirements (which shall be
at Distributor’s expense). T3 Motion shall deliver Products into the possession of a common
carrier designated by Distributor, no later than the date specified for such delivery on the
relevant purchase order for such Products and no earlier than the date three (3) days prior to such
specified date. Risk of loss and damage to a Product shall pass to Distributor upon the delivery
of such Product to the place of delivery designated in the Firm Purchase Order Call Off . All
claims for non-conforming shipments must be made in writing to T3 Motion within ten days of the
passing of risk of loss and damage, as described above. Any claims not made within such period
shall be deemed waived and released.

     (i) Products shall be purchased and sold hereunder on the terms and conditions set forth in T3
Motion’s standard terms and conditions of sale attached hereto as a Exhibit as a purchase order, as
in effect at the time of acceptance of the purchase order for such Products,

 

 

except that in the
event of any discrepancy between such terms and conditions and this Agreement, the terms of this
Agreement shall govern.

3.0 PAYMENT FOR PRODUCTS

3.1 T3 Charges.

          (a) Distributor shall promptly pay to T3 Motion all sums due (“T3 Charges”) for the Products,
which amounts shall be calculated and paid as set forth in Exhibit A. The schedule of T3 Charges
provided in Exhibit A shall remain in force during the Initial Term (defined as 3 years) of this
Agreement. Thereafter prices payable by the Distributor for the Products will be renegotiated
either upward or downward on an annual basis upon mutual agreement of the parties. In the event
that during the Term of this Agreement any distributor, seller and/or provider of T3 Motion
products outside of the United States (“Other T3 Seller”), has the right to purchase Products from
T3 Motion at a price less than that of the Distributor, the Distributor’s price for the Products
shall be immediately and automatically reduced to the lowest price charged to any such distributor,
seller or provider for Products. Such reduced price shall apply to all Products not yet delivered
by T3 Motion under pending orders and all future orders placed by the Distributor. The foregoing
price reductions shall not apply in the event that such Other T3 Seller has committed to purchase
in excess of 6,000 T3i Series Vehicles over a three year period.

4.0 DISTRIBUTOR’S OBLIGATIONS

4.1 Distributor Diligence.

          (a) Except as otherwise allowed under this Agreement, Distributor shall solicit the Customers
for Products for its own account and under its own trade name(s) or under its affiliates’ accounts
and names. Distributor agrees to faithfully and diligently use its best efforts to sell, promote
and support the Products in the Territory by commercially reasonable means.

4.2 Ethical Conduct.

          (a) Distributor will conduct its business in an honest, professional and ethical manner and
will not willingly commit any act or omission to act which adversely affects T3 Motion.
Distributor will comply with the reasonable requirements and practices established by T3 Motion for
the processing of service forms, credit applications, collections, fraud prevention, and all other
administrative functions.

          (b) Distributor will also: (i) conduct business in a manner that reflects favorably at all
times on the Products and the good name, goodwill and reputation of T3 Motion; (ii) make no false
or misleading representations or advertisements with regard to T3 Motion or the Products; and (iii)
make no representations, warranties or guarantees to customers or to the trade with respect to the
specifications, features or capabilities of the Products that are inconsistent with the literature
distributed by T3 Motion.

 

 

4.3 Unlawful Use.

          (a) Any attempt by Distributor to use Products for an unlawful purpose will be a material
breach of this Agreement. T3 Motion may, by written notice to Distributor, require Distributor to
cancel the right to use service of any Distributor Customer using or attempting to use Products for
an unlawful purpose, and failure of Distributor to cancel such Distributor Customer’s service shall
be deemed a material breach of this Agreement.

4.4 Distributor Warranty to Customers.

          (a) Distributor is responsible for all warranties, expressed or implied, with regard to any
Products that differ from T3 Motion’s limited warranty contained herein.

4.5 Distributor Responsibility.

          (a) Distributor is solely responsible for all risks and expenses incurred in connection with
its actions in the sale of the Products pursuant to this Agreement including without limitation,
all expenses of its office, if any, and activities, and all acts and expenses of its personnel,
employees, subcontractors, agent and representatives in the Territory.

4.6 Compliance with Law.

          (a) In performing its duties hereunder, Distributor shall materially comply with all
applicable laws, rules and regulations of any Governmental Entity, including, without limitation,
those of the United States of America, including its export and import laws and regulations, for
Products and commercially reasonable or legally required policies of T3 Motion communicated to
Distributor, which are now or hereafter in effect. Distributor shall have and maintain all
necessary permits or certificates required by any Governmental Entity or agency necessary for the
performance of its duties hereunder and the conduct of its business, which may include the
necessity of filing a separate tariff to sell Products as a distributor thereof. T3 represents and
warrants to the Distributor that (i) no approvals, authorizations and/or consents are needed from
the United States Government and/or any agency thereof in order for T3 Motion to ship or deliver
the Products to the Distributor in any of the Territories and/or for the Distributor to sell any
Products in the Territories and (ii) to T3 Motion’s knowledge, the Distributor will not be required
to file any notice and/or other documents with the United States Government and/or any agency
thereof in order to have the Products shipped and/or delivered to the Distributor in any of the
Territories and/or for the Distributor to sell any Products in the Territories.

4.7 Competition.

          (a) Distributor shall have the right to engage, conduct, assist, encourage, participate or aid
any other party in other form of business however, Distributor shall not engage in any form of
business that shall constitute a competition for Products which are currently available

 

 

for sale
by T3 Motion within the attached Territories and shall maintain in strict confidence all
information regarding T3 Motion and the Products and as more fully defined under Section 9.
Without limiting the generality of the foregoing, neither Distributor nor any of its affiliates
shall market, sell, solicit, distribute any products or services that directly compete with T3
Motion’s existing T3i Series products (as defined by Exhibit A). The foregoing restrictions shall
not apply to any dealer or sub-distributor of the Distributor so long as the Distributor does not
share in profits derived by such dealer or sub-distributors sale of products competing with the
Products.

4.8 Maintenance of Regulatory Approvals, Licenses, and Certifications.

     (a) Distributor shall be fully responsible for obtaining all necessary certification and
registration for Distributor to sell the Products in the Territory. Distributor will be solely
responsible for maintaining all obligations required as part of any regulatory approvals, licenses
and certifications at T3 Motion’s cost. Distributor shall also maintain in good standing all
necessary regulatory approvals, licenses, and certifications during the term of this Agreement.

     (b) Distributor will be solely responsible for ensuring that the promotion, marketing, sales
and distribution of Products is conducted in compliance with all regulations applicable to Products
in each country where such activities take place. Distributor commits to ensure that all regulatory
approvals, licenses and certifications are properly maintained or obtained, as applicable, such
that there is no impairment of the good name and goodwill of T3 Motion.

     (c) Distributor will be solely responsible for communicating with pertinent governmental
agencies or other regulating bodies with respect to all regulatory approvals, licenses and
certifications in the Territory currently issued under T3 Motion’s name.

     (d) Upon termination of this Agreement for any reason, Distributor, at the request of T3
Motion, will use commercially reasonable efforts to transfer any and all regulatory or governmental
certifications or approvals pertaining to Products to T3 Motion. T3 Motion shall reimburse
Distributor for all reasonable and actual costs incurred by Distributor related to any and all
regulatory or governmental certifications or approvals pertaining to the Products, if obtaining
such certifications or approvals had been approved by T3 Motion in writing prior to being obtained.

4.9 Dealers Network. T3 authorizes the Distributor to develop a network of Dealers
and/or sub-distributors in the Territory for the introduction, sale, maintenance, and distribution
of the Products in the Territory. Distributor shall be authorized to sublicense the rights granted
under this Agreement to such Dealers and sub-distributors provided that any and all agreements with
such Dealers and sub-distributors shall be subject to the terms and conditions of this Agreement.

4.10 The Distributor undertakes to train its customers in line with the T3 training program on the
operating and riding of the T3i series vehicles, either by staff employed by the Distributor,
staff employed by its Dealers, Sub Distributors, or Agent, or by trained trainers employed by
the customers supported with a document that the customers trainers are responsible for this
training and have been trained to do this.

 

 

5.0 DUTIES OF T3 MOTION

5.1 Products.

          (a) T3 Motion shall provide Products to Distributor, its Dealers, subdistributors and/or any
other party designated by Distributor in writing, provided (a) Products are available, and
(b) Distributor is not in material breach of this Agreement. Notwithstanding the foregoing in all
circumstances T3 shall provide Products to Distributor’s Customers that have been paid for in full.
T3 Motion agrees to faithfully and diligently use its best efforts to support the distributors’
efforts to sell, promote, and provide overall support of the products in the territory by
commercially reasonable means.

5.2 Customer Support.

(a) Subject to the terms and conditions of this Agreement, once a Distributor Customer has been
sold a Product, T3 Motion shall provide customer support to that Distributor Customer without
charge to the Distributor.

5.3 No Other Obligation.  

          (a) T3 Motion shall have no liability to Distributor or any of Distributor’s Customers in
connection with Products except as specifically set forth in this Agreement, T3 Motion’s Tariffs,
T3 Motion’s Limited Warranty (contained herein), or T3 Products policies communicated to
Distributor.

6.0 T3 MOTION LIMITED WARRANTY

6.1 Limited Warranty.

          (a) T3 Motion warrants that the Products will operate and conform to T3 Motion’s published
product warranty to the end user attached hereto as Exhibit E (“limited warranty”). The limited
warranty on a T3i Series, power modules and charger is for parts only and is limited to 1 year or
2,500 miles from date of sale to end user, whichever comes first. Distributor will pass through T3
Motion’s standard limited warranty to its customers. Distributor will not modify T3 Motion’s
standard limited warranty or make any other warranty with regard to Products without T3 Motion’s
prior written consent. This section 6 in its entirety shall survive the termination of this
Agreement.

6.2 Warranty Exclusions.

          (a) THIS LIMITED WARRANTY DOES NOT EXTEND TO CLAIMS ARISING FROM MISUSE OF THE PRODUCTS,
CASUALTY LOSS OR DAMAGE, OR USE OF THE PRODUCTS FOR PURPOSES OTHER THAN THOSE FOR WHICH THE
PRODUCTS WERE DESIGNED. EXCEPT FOR THE EXPRESS LIMITED WARRANTY SET

 

 

FORTH ABOVE, T3 MOTION GRANTS
NO WARRANTIES FOR THE PRODUCTS, EXPRESS OR IMPLIED, AND T3 MOTION SPECIFICALLY DISCLAIMS ANY
IMPLIED WARRANTY OF QUALITY, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR
PURPOSE.

6.3 Limited Remedy.

          (a) In the event that any Product or accessory violates its limited warranty to the end user,
T3 Motion will repair, replace, or refund the purchase price to Distributor at T3 Motion’s
discretion per the terms of the vehicle warranty. Distributor is responsible for the
administration and handling of all warranty claims and returns to T3 Motion from Distributor’s
customers within the Territory at T3’s sole cost and expense. T3 reserves the right to determine
the manner of satisfying the warranty claim, such as replacement, repair or refund.

6.4 Return of Products.

          (a) T3 represents and warrants to the Distributor that warranty claims for out of box failures
(Definition: Out Of Box Failure is a take on a common quality analysis term Out Of Box Experience,
used in the electronics industries. It refers to a system that has a major defect preventing (or
severely restricting) use that is immediately apparent upon opening the box of a new unit or first
turning the unit on.) have been made on less than 1% of Products delivered by T3. In the event
Distributor wishes to make a warranty claim, Distributor shall notify T3 Motion in writing by
telecopy of Distributor’s desire to return a Product, stating the reason for such return.
Distributor shall not return any Product to T3 Motion without first obtaining a Return Material
Authorization (“RMA”) number from T3 Motion. Distributor shall send to T3 Motion, at T3’s sole
cost and expense, on a monthly basis, during the term of this Agreement, all returned Products for
which an RMA has been issued. As promptly as possible, but no later than ninety working days after
receipt by T3 Motion of a properly returned Product thereof, T3 Motion shall replace or repair, per
the terms of the vehicle warranty, the Product. Upon an RMA’s issued by T3, T3 reserves the right
to determine if the product should be shipped back to T3 or not. T3 has the right to replace,
repair or refund the Product without having the goods shipped back to the U.S. T3 Motion shall pay
all shipping and other charges in connection with the return and shipment of replaced Products. T3
Motion claim approval process is, generally, as follows:

Approval process is within 24 business hours

          (b) Warranty is defined in Owners Manual (Legal Section)

	 	•	 	Parts only. 1 year or 4000 Kilometers which ever comes
first Warranty
excludes wearable items Grips, Tires, brakes, floor mat,
	 
	 	•	 	Accessories (Pannier Bag and Cover)

6.5 Warranty Exclusion.

 

 

          (a) T3 Motion shall not be liable for any failure of Products caused by or resulting from (a)
any incompatibility of Distributor’s Customers’ equipment (IE: After market
add on equipment) or (b) any act or event beyond the reasonable control of T3 Motion, including but
not limited to wind, fire, flood, earthquake, act of God, riot, war, strike or labor dispute,
governmental acts or orders or any other similar or dissimilar act or event not within the
reasonable control of T3 Motion.

6.6 Limitations of Liability.

          (a) EXCEPT FOR THE LIIMITED PRODUCT WARRANTY, T3 MOTION SHALL NOT BE LIABLE FOR INCIDENTAL,
CONSEQUENTIAL OR SPECIAL DAMAGES. THIS LIMITATION SURVIVES THE FAILURE OF ANY EXCLUSIVE REMEDY.
UNDER NO CIRCUMSTANCES WILL T3 MOTION BE LIABLE FOR MORE THAN THE DOLLAR AMOUNT OF PRODUCTS SOLD
PURSUANT TO THIS AGREEMENT.]

6.7. Warranty Notifications

The Distributor must notify T3 Motion at the end of each calendar month the serial numbers of all
vehicles sold during that month including the name of the customer purchasing the vehicle, and the
date of sale, which information will not be used by T3 and/or any other party for marketing and/or
sales purposes. T3 reserves the right to continue service and support to the T3 end user clients
in the event that this agreement expires or terminates.

6.8  Service Center 

Distributor agrees to maintain suitable premises for a Service Center. The number of trained
technicians (certified by T3 Motion) at the Service Center will be determined by the Distributor
based on need and completed sales .Trained technicians shall have the ability to travel to service
the destinations covered in the Territories, shall be available full time (normal working hours) to
support service, the service center will maintain suitable premises, space and equipment for
service within, and accessible in, the defined territory, service staff will be prepared to travel
to customer sites as appropriate, response to customer service calls will be within 24 hours and no
longer than 48 hours, service center will maintain minimum levels of parts inventory (TBD) to
provide service.

7.0 INDEMNITIES AND INSURANCE

7.1 By Distributor.

 

 

          (a) Distributor shall indemnify and hold harmless T3 Motion, its officers, directors, agents,
employees, successors and assigns, from and against losses, claims, actions, proceedings,
liabilities, obligations, damages, costs or expenses (“Claims”) , including the payment of
reasonable attorney’s fees, arising out of or resulting from (i) any breach by Distributor of this
Agreement or (ii) the acts or omissions of Distributor, its employees or agents constituting gross
negligence and/or willful misconduct. T3 Motion shall notify Distributor of any such Claims and T3
Motion shall undertake the defense thereof or require Distributor to do so. Should T3 Motion
request Distributor to undertake such defense and Distributor in fact undertakes such defense, T3
Motion can, at its election and at its sole cost, also participate in the defense thereof.

7.2 By T3 Motion.

          (a) T3 Motion shall indemnify and hold harmless Distributor, its officers, directors, agents,
employees, successors and assigns, from and against any and all Claims, including the payment of
reasonable attorney’s fees, arising out of or resulting from (i) any breach by T3 Motion of this
Agreement or (ii) the acts and omissions of T3 Motion constituting gross negligence and/or willful
misconduct.. Distributor shall notify T3 Motion of any such Claims, and Distributor may undertake
the defense thereof or require T3 Motion to do so. Should Distributor request T3 Motion to
undertake such defense and T3 Motion in fact undertakes such defense, Distributor can, at its
election and at its sole cost, also participate in the defense thereof.

7.3 Required Insurance.

     (a) With respect to performance hereunder, Distributor shall maintain at all times during the
term of this Agreement the following insurance coverage (if available at a commercially reasonable
cost ) and any additional insurance and/or bonds required by law in the Territories: (1) Workers’
Compensation Insurance in compliance with the laws of the state in which the work is to be
performed, (2) Commercial Liability Insurance under a comprehensive general liability form, which
includes coverage for personal injury and property damage with policy limits of not less than
$1,000,000 per occurrence. If the Commercial Liability Insurance is Claims-made coverage, the
retroactive date must be prior to or coincident with the inception date of this Agreement and shall
not be advanced during the term of this Agreement. Distributor shall provide proof of Insurance
upon request and prove when procuring Insurance is not possible at a commercially reasonable cost.

     (b) Distributor expressly assumes responsibility for insuring against and resolving third
party liability claims that may arise in the Territory. With the exception of third party
liability claims based on the negligence or willful misconduct of T3 Motion, T3 Motion shall not be
liable for such third party liability claims.

7.4 Indemnification.

          (a) T3 Motion further agrees, at T3 Motion’s own expense, to defend or at T3 Motion’s option,
to settle, any claim, suit or proceeding brought against Distributor or

 

 

Distributor’s customers on the issue of infringement of any patent, copyright, trademark and/or
intellectual property right in the U.S. and the Territories by T3 Motion and/or the Products sold
hereunder or the use thereof (including breach of any license agreement relating to the Products).
T3 Motion shall have sole control of any such action or settlement negotiations, and T3 Motion
agrees to pay all losses, costs, claims, expenses, attorney fees, damages and/or judgments
incurred by and/or entered against Distributor or Distributor’s customers on such issue in any such
claim, suit or proceeding. Distributor agrees that T3 Motion shall be relieved of the foregoing
obligations unless Distributor or Distributor’s customer notifies T3 Motion within a reasonable
period in writing of such claim, suit or proceeding. T3 Motion shall not be liable for any costs
or expenses incurred by the Distributor without T3 Motion’s prior written authorization, which
authorization shall not be unreasonably withheld. It shall be unreasonable for T3 Motion to refuse
to authorize a review of any claim documents and/or legal documents by independent counsel for the
Distributor.

7.5 Remedies.

          (a) If the use or sale of the Products is or is likely to be enjoined as a result of any claim
or proceeding alleging infringement, or to settle any such claim, T3 Motion may at its own
expense: obtain for Distributor the right to use or sell the Products at no additional cost to
Distributor; modify the Products so that they are functionally equivalent but non-infringing; or
replace the Products with functionally equivalent but non-infringing
Products. T3 is not aware of
any claims, whether asserted or unasserted, that the Products violate and/or infringe upon any
patent, copyright, trademark and/or intellectual property right of any party.

7.6 Limitation.

          (a) Notwithstanding the provisions of subsection (a) above, T3 Motion assumes no liability
for; (i) infringements involving any marking or branding not applied by T3 Motion or involving any
marking or branding applied at the request of Distributor; or (iii) infringements involving the
modification of the Products, or any part thereof, unless such modification was done by T3 Motion,
with T3 Motion’s approval and/ or under T3 Motion’s authority.

7.7 Entire Liability.

          (a) THE FOREGOING PROVISIONS OF THIS SECTION STATE THE ENTIRE LIABILITY AND OBLIGATIONS OF T3
MOTION TO DISTRIBUTOR AND THE EXCLUSIVE REMEDY OF DISTRIBUTOR, WITH RESPECT TO ANY ALLEGED
INFRINGEMENT OF PATENTS, COPYRIGHTS, TRADEMARKS OR OTHER INTELLECTUAL PROPERTY RIGHTS BY THE
PRODUCTS OR ANY PART THEREOF.

 

 

8.0 T3 MOTION RIGHT OF FIRST REFUSAL

8.1 Right.

          (a) Distributor grants to T3 Motion the right of first refusal on any proposed sale of its
Distributor’s T3 Motion Customer accounts Accordingly, if Distributor desires at any time during
the term of this Agreement to sell part of Distributor’s T3 Motion Customer accounts, it shall
first secure a written bona fide offer from a third party to acquire such accounts. T3 Motion
shall then have the right of first refusal to match the offer.

8.2 Process.

          (a) Within thirty (30) days after Distributor’s receipt of any bona fide written offer to
acquire rights in Distributor’s T3 Motion Customer accounts, Distributor shall provide T3 Motion a
copy of such offer. T3 Motion shall be provided timely access to all pertinent records pertaining
to Distributor’s Customers, including accounts receivable and aged balance, in order to evaluate
its option. Within ten (10) ) days after receipt of notice, T3 Motion shall notify Distributor in
writing of its desire to meet the terms and conditions of the offer or, if any part of the offer is
non-cash, to make an equivalent cash payment. If the parties cannot agree as to the cash
equivalency of the offer, the matter shall be submitted to binding arbitration in accordance with
Section 12.7, the costs of which shall be evenly split between Distributor and T3 Motion.

8.3 Acceptance or Rejection.

          (a) If T3 Motion exercises its right to purchase, the parties will endeavor to conclude the
purchase as soon as practicable (Such purchase by the T3 Motion must be completed and finalized by
no later than 30 days from the date of notice to the T3 Motion) Pending the closing, the parties
will use their best efforts to avoid any interruption of Products to Distributor’s Customers and
will do nothing to adversely affect Distributor’s Customer account base. If T3 Motion rejects such
offer, or fails to accept within the ten (10) day period, Distributor shall be free to sell its
Distributor Customer accounts upon terms no less favorable to Distributor than are contained in the
offer submitted to T3 Motion. If Distributor does not accept the offer, which is at least as
favorable to Distributor as that submitted to T3 Motion (as far as terms that can be satisfied by
the payment of money and only as to Distributor’s Customer accounts), then the provisions of this
Section shall apply to all subsequent offers for the purchase of a portion of the Distributor’s
Customer accounts.

8.4 Non-Solicitation by Distributor.

          (a) In the event of any assumption or purchase by T3 Motion of such Distributor’s T3 Motion
Customer accounts under this Section, neither Distributor nor any principal, director, owner,
agent, majority stockholder, nor a successor corporation or successor entity shall solicit the
Distributor’s T3 Motion Customer accounts insofar as they remain a T3 Motion customer, for the sale
of any product in competition with the Products currently available for sale by T3 for a period of
one year following T3’s assumption or purchase of such Distributor’s

 

 

T3 Motion Customer accounts. Neither the Distributor nor any principal, director, owner, agent,
majority stockholder, nor a successor corporation or successor entity shall be prevented from
soliciting such Distributor’s T3 Motion Accounts in connection with the marketing and sale of
products and/or services which are not in competition with the Products currently available for
sale by T3.

8.5 Non-Solicitation by T3 Motion.

          (a) In the event of any sale by Distributor of its Distributor Customer accounts to another
party, after T3 Motion’s prior refusal to purchase under this Section, neither T3 Motion nor any
principal, director, owner, employee, agent, majority stockholder, nor any affiliate or successor
corporation or successor entity shall solicit the former Distributor Customer accounts, insofar as
they remain a T3 Motion customer, for a period of one year following the third party’s assumption
or purchase of Distributor’s Customer accounts.

9.0 CONFIDENTIALITY

9.1 Definition.

          (a) “Confidential Information” as used herein means any idea, concept, design, method,
application, process, technology, know-how, technique or material to the extent that such is not
generally known by or to the public, or modifications, improvements or extensions thereof, whether
or not reduced to tangible form, relating to the business of T3 Motion. Confidential Information
shall not include marketing and or sales materials regarding the Products if such materials are
generally known by or to the public.

9.2 Duty.

          (a) During the term of this Agreement, the parties shall not disclose any Confidential
Information belonging to the other party to any third party, including but not limited to
Distributor’s Customers. The parties acknowledge that during the course of performance under this
Agreement, certain of their respective agents, employees and/or representatives may receive
Confidential Information belonging to the other party, therefore the parties agree that the only
agents, employees or representatives who will receive the Confidential Information will be those
who have a need-to-know such Confidential Information and those who unavoidably come in contact
with the Confidential Information while on a party’s premises. The parties expressly agree to
instruct their agents, employees and representatives who may receive Confidential Information to
safeguard the Confidential Information from disclosure and treat such Confidential Information as
confidential.

9.3 Exceptions.

          (a) Notwithstanding anything to the contrary contained herein, the parties may disclose (a)
any information generally available or known to the public; (b) any information already known or
available to the party prior to the disclosure of such information; (c) information which becomes
part of the public domain by publication or otherwise through no fault of the party; or (d)
information required by law to be disclosed to a court or tribunal; provided, however, that if the
party is required to disclose such information to a court or tribunal it shall give notice of the

 

 

proceeding to the other party in accordance herewith to allow the other party to seek an
appropriate protective order or waive compliance with this Agreement.

9.4 Return.

          (a) Any and all written information or materials exchanged by the parties hereto pursuant to
this Agreement shall be returned along with all copies of the same to the other party upon request
of such party.

9.5 Equitable Remedies.

          (a) The parties agree that the Confidential Information disclosed hereunder is of a special
and unique kind, the protection of which is essential to the operation and competitive position of
either party, and that if there is a breach by the other party of the obligations hereunder, that
party would leave the non-breaching party without adequate remedy at law. Therefore, in addition
to any other remedies which may be available at law, the parties agree that either shall be
entitled to seek injunctive relief, specific performance or other equitable relief or any or all of
the above, as may be provided under the laws of and in any judicial forum in the State of New York
or the United States of America, for any violation of this Agreement.

9.6 Reverse Engineering.

Distributor shall not disassemble or reverse engineer any of the Products or any part thereof.

10.0 TERM AND TERMINATION

10.1 Term and Renewal.

          (a) Unless otherwise terminated in accordance with other provisions of this Agreement, (a) the
initial term of this Agreement shall begin on the Effective Date and shall continue for thirty six
(36) months (the “Initial Term”), and (b) the term shall automatically renew after the Initial
Term for consecutive renewal terms of three years each (each, a “Renewal Term”) commencing on the
Anniversary Date of the Initial Term. After the expiration of the Initial Term, Termination can be
executed by either party by written notice delivered at least ninety (90) days prior to the start
of any Renewal Term. In the event that T3 Motion notifies the Distributor of any price increase
above the prices appearing on Exhibit A applicable to any Renewal Term , the Distributor may
cancel this Agreement on thirty (30) days notice.

10.2 Monetary Default.

          (a) If, within thirty (30) days after receiving a notice of payment default from T3 Motion,
Distributor has not cured such default, T3 Motion shall have the right to suspend or terminate this
Agreement, effective immediately upon delivery of a suspension or termination
notice in writing.

 

 

10.3 Material Breach.

          (a) If either party commits a material breach of this Agreement (other than a monetary
default) and has not cured such breach within thirty (30) days or such time as is reasonably
necessary after written notice thereof, the other party may terminate this Agreement, effective
immediately upon delivery of a termination notice in writing.

10.4 Insolvency.

          (a) Either party may terminate this Agreement upon thirty (30) days’ written notice if the
other party (a) becomes insolvent, bankrupt or makes an assignment for the benefit of creditors;
(b) applies for or consents to the appointment of a trustee or receiver, or a trustee or receiver
is appointed for the other party; or (c) bankruptcy, insolvency or liquidation or other proceedings
are commenced by or against the other party, and such appointment or proceedings are not discharged
or dismissed within sixty (60) days after such appointment or commencement.

10.5 Termination by T3 Motion.

          (a) This Agreement may be terminated by T3 Motion at any time upon thirty (30) days’ prior
written notice if (a) Distributor fails to comply with the confidentiality and ownership provisions
of this Agreement; (b) Distributor or one of its officers, or directors:

          (i) has made any material misrepresentations or omissions in its application to establish its
relationship with T3 Motion, submits knowingly false or fraudulent reports, forms or certifications
to T3 Motion.. In such event if the Distributor terminates the employment of the responsible or
violating party within 30 days of receipt of a notice from T3, T3 shall not have the ability to
terminate this Agreement.

          (ii) attempts to make an unauthorized assignment of this Agreement or receives a notice of
violation of the terms or conditions of this Agreement or any license, approval, certification or
permit required by Distributor or its employees in the conduct of Distributor’s business and fails
to correct such violation or to terminate the employment of the responsible employee(s) within the
later of the time period specified in such notice if any, or within thirty (30) days after receipt
of such a notice, whichever comes first;

          (iii) fails to satisfy the minimum performance standards as set forth in Exhibit B for the
first contract year and such each additional contract year, but only after a review and T3 Motion
undertakes reevaluation.

          (iv) is acquired in whole or in substantial part by, or is merged with, a third party where
the Distributor is not the surviving entity, or sells all or substantially all of its assets to a

 

 

third party (except if such sale is pursuant to the Right of First Refusal under Article 8),
without the consent if T3 which will not be unreasonably withheld..

10.6 Effect of Termination.

          (i) Immediately upon the termination of this Agreement, Distributor shall cease distributing
the Products except to those Customers prior to the termination date with Distributor for which
Distributor has an existing purchase order for Products. T3 Motion expressly agrees to provide
Products for such Distributor Customers after the termination of this Agreement. Distributor
agrees to pay for all outstanding purchase orders, if any.

          (ii) Termination regardless of cause or nature shall be without prejudice to any other rights
or remedies of the parties. Termination of this Agreement for any cause shall not release either
party from any liability which, at the time of termination, has already accrued to such party, or
which may accrue with respect to any act or omission prior to termination or from any obligation
which is expressly stated herein to survive termination.

          (iii) Upon expiration or termination of this Agreement for any reason, the parties agree to
continue their cooperation in order to effect an orderly termination of their relationship.
Distributor shall immediately cease representing itself as a Distributor of Products for T3 Motion
and stop utilizing T3 Motion’s Trademarks. Distributor agrees that it will comply with any duties
which T3 Motion reasonably requires of Distributor to affect an orderly termination.

          (iv) In the event of termination by T3 Motion for any reason, including material breach, T3
Motion has the option to repurchase any new remaining stock Distributor has unsold at the
prevailing T3 Motion price schedule, which shall not be less than the price paid by the
Distributor, within thirty (30) days after such termination.

10.7 Automatic Termination.

          (a) This Agreement shall terminate automatically and without liability or further obligation
on the part of either Party to the other if T3 Motion’s or its providers’ (“Service Providers”)
licenses or other authority to operate are revoked, suspended or not renewed; provided, however,
that if such revocation, suspension or non-renewal does not apply to all of T3 Motion’s facilities,
then this Agreement shall terminate only as to those facilities for which licensing or other
authority does not exist.

10.8 Termination Due to Government Action.

          (a) This Agreement shall be terminated by T3 Motion upon ten (10) days’ prior written notice
if any Governmental Entity approves, authorizes, interprets or promulgates any law, rule,
regulation or order which (a) in effect or application prohibits or

 

 

substantially impedes T3 Motion from fulfilling its obligations in providing Products and/or
services in the Territory; or (b) materially or adversely affects T3 Motion’s ability to conduct
business in the Territory upon the terms and conditions acceptable to T3 Motion.

10.9 FAILURE TO MEET MINIMUM SALES FIGURES

          In the event the Distributor fails to meet the minimum sales figures set forth in Exhibit C
during any annual period, T3 shall have the right upon thirty (30) days written notice to transform
this Agreement into a non exclusive distributorship. Such thirty (30) days notice may only be
delivered after T3 has met in person with the Distributor to review the Distributor’s performance
and the reasons why sales figures were not met. Upon the transformation of this Agreement to a non
exclusive distributorship all terms and conditions contained in this Agreement shall remain in
full force and effect except those which granted the Distributor exclusivity ion the Territories.

11. NOTICES

Any notice or demand given or made hereunder shall be written and served in the
following manner:

If given to T3 Motion, notice shall be addressed to T3 Motion at:

T3 Motion, Inc.

2990 Airway Avenue

Costa Mesa, CA 92626

Attention: Noel Cherowbrier

With a copy to:

Richardson & Patel LLP

10900 Wilshire Boulevard, Suite 500

Los Angeles, California 90024

Attention: Ryan Hong, Esq.

If given to Distributor, notice shall be addressed to Distributor at:

Spear International

629 Fifth Avenue, 3rd Floor

Pelham, NY 10803

Attention: John Callaghan

 

 

All notices may be served by registered or certified U.S. mail or by any regular delivery service
that provides receipt and evidence of delivery. Notices shall be deemed to be given two days after
the date of registration or certification with the U.S. Postal Service or on the date of actual
delivery if served by any other method. Either party can change its address for notice purposes upon
reasonable notice to the other party.

12.0 MISCELLANEOUS

          (a) This Agreement and the terms of Exhibit A hereto shall apply in all territories where T3
Motion Products are sold, subject to all local laws and regulations. Each party hereto represents
and warrants to the other that it has (a) all necessary power and authority to enter into and
perform this Agreement in accordance with its terms, and (b) all necessary authorizations from
federal, state local, and foreign governmental entities.

          (b) The waiver, express or implied, by
either Party, of any rights or of any failure to perform or of any breach by the other Party shall
not constitute or be deemed a waiver of any other right hereunder or any other failure to perform
or breach by the other Party, whether of a similar or dissimilar nature.

          (c) If any part of this
Agreement is found to be in violation of any federal, state or local law, rule, regulation,
ordinance, order or judgment, such portion shall be stricken from the Agreement and be of no
effect, and the balance of this Agreement shall continue in effect until it otherwise terminates or
expires. Moreover, in the event that any provision of this Agreement shall be held invalid or
unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render
unenforceable any other provision hereof.

          (d) In the event that any of the Products provided
hereunder or the charges made therefore at any time become subject to any Governmental Entity’s
regulation or tariff, then the terms and conditions of this Agreement including the charges set
forth in Exhibit A, shall be deemed amended to conform to any conflicting terms and conditions in
effect under such regulation or tariff. All non-conflicting terms and conditions of this Agreement
shall remain valid and effective.

          (e) All claims or disputes between T3 Motion and Distributor
arising out of or relating to this contract, or breach thereof, shall be decided in accordance with
the commercial arbitration rules of the American Arbitration Association then in effect to be held
in the State of New York, County of New York unless the parties mutually agree otherwise. Notice
of the demand for arbitration shall be filed in writing with the other party in reasonable time
after the dispute has arisen. The award rendered by the arbitrators shall be final, and judgment
may be entered upon it in accordance with applicable law in any court having jurisdiction thereof.
Notwithstanding the foregoing, the parties may seek interim injunctive relief to protect their
rights pending the establishment or decision of the arbitrator. The Parties disclaim application
of the United Nations Convention on Contracts for the International Sale of Goods.

          (f) This
Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their
respective successors and assigns.

          (g) No rights or obligations hereunder shall be assigned or
delegated, in whole or in part, by Distributor to any other person, firm or corporation without the
prior written consent

 

 

thereto by T3 Motion, which consent shall not be unreasonably withheld. T3 Motion shall be
entitled to assign its interest hereunder without the consent of Distributor, provided T3 Motion’s
assignee is capable of performing T3 Motion’s obligations under the terms of this Agreement.
Notwithstanding the foregoing or anything to the contrary contained in this Agreement, the
Distributor shall be entitled to assign this Agreement and all rights and obligations hereunder,
without the prior consent of T3, to Malloy Gulf Holdings, Ltd., a to be formed Bahrain entity
which will be controlled by the same shareholder group that control’s the Distributor. Upon any
such assignment a written notice thereof will be delivered to T3.

          (h) The validity, construction and performance of this Agreement shall be governed by and
interpreted in accordance with the laws of the State of New York in the appropriate court of New
York County. Headings to articles and sections of this Agreement are to facilitate reference only,
do not form a part of this Agreement, and shall not in any way affect the interpretation hereof.

          (i) This Agreement may be executed by the parties in counterparts, each of which shall be
deemed an original and both of which together shall constitute the one and the same instrument.
When executed, this Agreement and the exhibits hereto shall constitute the entire Agreement of the
Parties and supersede all prior agreements, written or oral of every sort, and may not be amended
except in writing and signed by authorized representatives of each Party.

          (j) This Agreement is executed in English and may be translated into other languages. In the
event of a conflict between the English version and any translated version, the English version
shall prevail.

(Signature page follows)

 

 

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by a
person with full power and authority to bind such party.

	 	 	 	 	 	 	 
	 	 	“T3 Motion”	 	 
	 
	 	 	 	 	 	 
	 	 	T3 Motion, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Ki Nam	 	 
	 

	 	Name:
	 	 

Ki Nam
	 	 
	 

	 	Title:
	 	CEO	 	 
	 
	 	 	 	 	 	 
	 	 	“Distributor”	 	 
	 
	 	 	 	 	 	 
	 	 	Spear International	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John Callaghan	 	 
	 

	 	Name:
	 	 

John Callaghan
	 	 
	 

	 	Title:
	 	CFO	 	 

 

 

EXHIBIT A

T3 MOTION: T3i SERIES DISTRIBUTION PRICE LIST

	 	 	 	 	 	 	 	 	 
	Price list from January 2009 through the end of December 2011 (List Price Effective Feb 09)
	 	 	 	 	 	 	 	 	Limit
	 	 	 	 	 	 	 	 	Markup/Markdown
	T3 Motion Product	 	Description	 	Distribution Price	 	List Price	 	From List Price
	Vehicle Package

T3i Series Model
	 	1. T3 Series Vehicle

2. Vehicle Charger

3. Qty 2 Type B1 Power Modules

4. Pannier Bar

5. Safety Helmet 

	 	 
	 	 
	 	 
	Type B1 Power Module
	 	25 Mile Range Battery

	 	 	 	 	 	 
	Vehicle Cover
	 	T3 Series Cover

	 	 	 	 	 	 
	Pannier Bag
	 	Soft Storage Bag

	 	 	 	 	 	 
	Vehicle Charger
	 	220V Dual Charging System

	 	 	 	 	 	 
	Utility Trailer
	 	Flat Bed Trailer
	 	 	 	 	 	 

 

			
	Note:	 	 
	 
	1.	 	Shipping and Handling will be passed onto customers and paid up front by Distributor.
	 
	2.	 	Product part numbers are defined in product nomenclature reference sheet.
	 
	3.	 	Payment Prior to Shipment.

				
	 	(i)	 	Irrevocable Bank Letter of Credit (ILOC) is put in place once Firm Purchase Order Call Off is processed. ILOC is
processed once product ships from origin under exworks terms.
	 
	 	(ii)	 	Unless a irrevocable bank letter of credit (ILOC) is in place for the full amount of product on the Firm Purchase Order
Call Off.   % will be paid at the point of order call off, and the final   % balance will be received by T3 Motion prior to
shipment of the Product specified in a Firm Purchase Order Call Off.

			
	4.	 	Figures quoted do not account for import duties, local tariffs or other costs. Distributor may choose pass on these costs to end
customers)
	 
	5.	 	T3 Motion reserves the right to charge interest on overdue accounts to a maximum amount of   %
	 
	6.	 	The price for 1st 7 demo vehicles will be at $      USD. This is a onetime purchase.

TERMS:

POINT OF SALE MATERIALS:

T3 Motion will furnish product brochures, electronic files, and display materials for each of the distributor stores.

 

 

EXHIBIT B

SALES TERRITORIES AND MINIMUM PURCHASE QUANTITIES

1.0 Term to Purchase:

Distributor has the referenced time frame to purchase the minimum purchase under the terms of this
Agreement.

2.0
Purchase Quantities: 

Distributor agrees to use its best efforts purchase a minimum of
6,000 T3i Series vehicles during the Initial Term of this agreement (3 years) and a blanket
purchase order will be issued from Distributor when the contract is signed. A blanket purchase
order is to hold the pricing and delivery terms per the Term of this Agreement contract years.
Distributor will only be bound to purchase Products upon the acceptance by T3 of a Firm Purchase
Order Call Off for the Products. Distributor agrees to use its best efforts to request shipments of
product in the below said volume of vehicles within the terms outlined in table #1 for contract
year 1.

2.1 Contract Years

Year 1 = March, 2009 to February 2009

Year 2 = March, 2010 to February 2011

Year 3 = March, 2011 to February 2012

 

 

     Table #1

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Contract Year 1
	 	 	FY 2009 Q1	 	 	 	 	 	Q2	 	Q3	 	Q4	 	Fy 2010	 	Q1	 	 	 	Total
	 	 	Jan	 	Feb	 	Mar	 	Apr	 	May	 	Jun	 	Jul	 	Aug	 	Sep	 	Oct	 	Nov	 	Dec	 	Jan	 	Feb	 	Mar	 	 	 	 
	T3i

	 	 	 	 	 	 	14	 	 	 	 	 	 	 	210	 	 	 	 	 	 	 	28	 	 	 	 	 	 	 	322	 	 	 	 	 	426	 	 	 	 	 	1000	 
	 
	T3i	 	Contract Year 2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2500	 
	 
	T3i	 	Contract Year 3	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2500	 
	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Grand Total
	 	 	 	 	6000	 

     A. During contract years 2 and 3 Distributor agrees to provide T3 Motion a quarterly forecast
updated and submitted from month to month with probability. In order to help mitigate security
supply on materials and delivery of product.

     3.0 Territories 

a. The Exclusive Territory for this agreement is the (Gulf Co-Operation Council) GCC
region which includes The Kingdom of Saudi Arabia, Kuwait, Bahrain, Qatar, Oman.

     (i) Exclusivity in “UAE”. If Distribution meets the volume of shipments outlined through June
2009 (224 T3i Series vehicles) outlined in table “1”. T3 Motion agrees to grant

 

 

Distributor
Exclusivity in the UAE. T3 motion would then pass the sub-distributor to Master Distributor
(Spear).

b. The Non Exclusive Territory for this agreement is Yemen. Turkey, Egypt, Lebanon ,
Morocco and until June, 2009 the 

UAE (a.,(i) & b.,(i)).

(i) Until June, 2009 T3 Motion is under contract for The UAE with another distributor which
other distributor has the exclusive right to sell to Police/Law Enforcement and a non
exclusive right to sell to other market segments. Accordingly until June, 2009 the
Distributor shall not sell to Police/Law Enforcement in the UAE.

(ii) Non Exclusive territories will remain Non Exclusive during 1st contract year. the
Distributor will be given the first right of refusal to become the Exclusives Distributor
ion the same terms and conditions set forth in this Agreement for Non Exclusive
territories upon successfully achieving the volume purchase terms of the agreement for the
1st anniversary contract year.

          IN WITNESS WHEREOF, each of the parties hereto has caused this Exhibit D to the Agreement to
be executed by a person with full power and authority to bind such party.

	 	 	 	 	 	 	 
	 	 	“T3 Motion”	 	 
	 
	 	 	 	 	 	 
	 	 	T3 Motion, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Ki Nam	 	 
	 

	 	Name:
	 	 

Ki Nam
	 	 
	 

	 	Title:
	 	CEO	 	 	 	 
	 	 	“Distributor”	 	 
	 
	 	 	 	 	 	 
	 	 	Spear International	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John Callaghan	 	 
	 

	 	Name:
	 	 

John Callaghan
	 	 
	 

	 	Title:
	 	CFO	 	 

 

 

EXHIBIT C

T3 MOTION MARKS

(PLEASE SEE ATTACHED T3 MOTION BRAND COMMUNICATION BOOK)

     IN WITNESS WHEREOF, each of the parties hereto has caused this Exhibit D to the Agreement to
be executed by a person with full power and authority to bind such party.

	 	 	 	 	 	 	 
	 	 	“T3 Motion”	 	 
	 
	 	 	 	 	 	 
	 	 	T3 Motion, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Ki Nam	 	 
	 

	 	Name:
	 	 

Ki Nam
	 	 
	 

	 	Title:
	 	CEO	 	 	 	 
	 	 	“Distributor”	 	 
	 
	 	 	 	 	 	 
	 	 	Spear International	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ John Callaghan	 	 
	 

	 	Name:
	 	 

John Callaghan
	 	 
	 

	 	Title:
	 	CFO	 	 

 

 

EXHIBIT D

T3i Series Competition

 

 

EXHIBIT E

	 	 	T3i SERIES ORIGINAL WARRANTY

	 	 	T3 Motion, Inc., located at 2990 Airway Avenue, Costa Mesa, CA 92626, provides this limited
warranty to original purchasers of the T3i Series (“T3i”) personal mobility vehicle and
accessories.

	 	 	This original Limited Warranty is extended only to the original purchaser. The term
“purchaser,” as used herein, refers only to the original purchaser.
	 
	 	 	Subject to the exclusions, limitations and conditions stated below, T3 Motion. Inc. warrants the
following described components of the T3i against defects in materials and workmanship for a period
of one (1) year or 4,000 kilometers, whichever comes first: Frame; steering assembly; drive
motor/drive train components (excluding drive system); power modules (battery replacement will be
pro-rated over the warranty period); battery charger; brake lever/calipers; throttle; wheels/hubs;
body panels/control headset housing; handlebars.
	 
	 	 	LED Lighting; LCD control panel display; and internal wiring and the drive system shall be
warranted for a period of ninety (90) days. Subject to the exclusions, limitations and conditions
stated below:
	 
	 	 	User wear items including tires; handlebar grips; brake pads; brake rotors; floor mat shall be
warranted only for defects in materials and workmanship. Failure due to normal wear and tear shall
not be covered by this Limited Warranty. During the applicable Limited Warranty period, T3 Motion,
Inc. shall, within a reasonable period of time, repair or replace (with new or reconditioned parts)
the defective parts of the T3i, subject to exclusions, limitations, and conditions stated below.
	 
	 	 	T3 Motion, Inc. may elect to simultaneously replace non-defective parts that are part of a
sub-assembly that contains the defective part. Any replaced parts (defective parts and parts that
are part of such a subassembly) will become the property of T3 Motion, Inc.
	 
	 	 	The Limited Warranty does not cover damage to a T3i caused by any of the following: all external
causes but not limited to, accident, collision, fire, immersion in water, freezing, or objects
striking the T3i; misusing the T3i, such as riding over obstacles, overloading, racing, or
otherwise using the T3 contrary to the instructions and warnings in the user manual issued by T3
Motion, Inc. Altering or modifying the T3i personal mobility vehicle; loosening or opening the
internal access panel; deterioration of paint, trim, and appearance items that results from use
and/or exposure to the elements; cleaning the T3i with a high-pressure water system, abrasive, or
solvents; exposure to environmental conditions beyond the limits stated in the User Materials; all
acts of nature, including but not limited to: earthquakes, floods, tidal waves, hurricanes,
tornados; failure to properly maintain the T3i; improperly servicing the T3i (including, without
limitation, damage caused by use of non-T3 Motion, Inc. parts or accessories); or improper charging
of the T3i power modules.
	 
	 	 	To obtain repair or replacement of parts under this Limited Warranty, the purchaser must utilize
the following procedure:
	 
	 	 	Call T3 Motion, Inc. Customer Service at (714) 619-3600 and describe the problem to a T3 Motion,
Inc. Customer Service Representative. If the purchaser is unable to resolve the problem with the
assistance of the Customer Service Representative, and if this Limited Warranty applies, the
following procedures shall apply:

 

 

	 	 	If the defective part is covered under the original one (1) year Limited Warranty period stated
above, T3 Motion, Inc. shall, within a reasonable period of time, dispatch to the purchaser’s
location (Certified Technician ).
	 
	 	 	Repair or replacement of defective parts by T3 Motion, Inc. does not extend the term of this
Limited Warranty, which shall expire (as to original, repaired, and replacement parts) upon
expiration of the applicable Limited Warranty period from the date of original delivery of the T3i
to the purchaser.
	 
	 	 	T3 Motion, Inc. obligations and liability for any defects in any T3i are limited to repair or
replacement of defective parts as required by the Limited Warranty. T3 Motion, Inc. neither assumes
(nor authorizes anyone to assume for it) any other obligation or liability in connection with a T3i
Series personal mobility vehicle or this warranty.
	 
	 	 	T3 Motion, Inc. is not responsible for any loss of use of a T3i or for any inconvenience or other
loss or damage which might be caused from any defect in a T3i, or for any other incidental or
consequential damages the Purchaser or any other person may have as a result of any defect in a
T3i.
	 
	 	 	This original Limited Warranty is the only Original Limited warranty applicable to the T3i and
accessories. T3 Motion, Inc. disclaims all other warranties, express or implied, including implied
warranties of merchantability or fitness for a particular purpose, other than those warranties
implied by and incapable of exclusion, restriction, or modification under applicable law. Any such
implied warranties which may be required by law and are not disclaimed hereby are limited, to the
extent allowed by law, to the applicable period of the Limited Warranty, or to the applicable time
period provided by the applicable state law, whichever period is shorter. Some U.S. states and
foreign countries do not allow limitations on how long an implied warranty lasts, so the above
limitation may not apply to some purchasers. Some U.S. states and foreign countries do not allow
the exclusion or limitation of incidental or consequential damages, so the above limitation or
exclusion may not apply to some purchasers. California law governs this Limited Warranty.

 

			
	*	 	This Original Warranty is provided at no additional cost to all original purchasers of T3i Series
vehicles.

 

 

EXHIBIT F

	1.	 	Written Assurance. To enable the Disclosing Party to disclose “technical data” to the

	 	 	Receiving Party in compliance with the requirements of the U.S. Commerce Department’s Export
Administration Regulations, the Receiving Party hereby gives its assurance to the Disclosing Party
that the Receiving Party will not knowingly, unless prior written authorization is obtained from
the Disclosing Party and the appropriate governmental body, export, re-export or otherwise disclose
directly or indirectly, any “technical data” (or computer software and any related documentation)
received from the Disclosing Party which is not otherwise available to the general public, nor
allow the direct product thereof to be shipped directly or indirectly, to any of the following
countries (as such list may be amended from time to time by the U.S. Department of Commerce and/or
the U.S. Treasury Department):

	 	 	 	 	 	 	 
	Cuba

	 	Liberia
	 	Iran
	 	Iraq
	North Korea

	 	Rwanda	 	 	 	 

	 	 	From time to time the UNITED STATES DEPARTMENT OF COMMERCE BUREAU OF INDUSTRY AND SECURITY will
continue to update, change, and modify the U.S. Commerce Department’s list of embargoed nations.
	 
	 	 	Notwithstanding the other provisions of this Agreement, this Paragraph shall survive any
termination or expiration of this Agreement.

	 	2.	 	Commodity Classification (See Figure “1”)

 

 

Figure 1:

	 	 	 
	COMMODITY CLASSIFICATION

	 	UNITED STATES DEPARTMENT OF COMMERCE
	 

	 	BUREAU OF INDUSTRY AND SECURITY
	 

	 	WASHINGTON, D. C. 20230
	 
	 	 
	CASE NUMBER: Z749562
	 	 
	 
	 	 
	TO MOTION

	 	NOVEMBER 14, 2008
	ATTN: NOEL CHEROWBRIER

	 	CCATS #: G066351
	2990 AIRWAY AVE
	 	 
	COSTA MESA, CA 92659
	 	 

THE
FOLLOWING INFORMATION IS IN RESPONSE TO YOUR INQUIRY OF NOVEMBER 07,
2008 REQUESTING LICENSE
INFORMATION FOR:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	IVL REQUIRED	 	LVS
	 	 	 	 	 	 	 	 	 	 	FOR	 	DOLLAR
	COMMODITY	 	ECCN	 	LVS	 	COUNTRY GROUPS	 	LIMIT
	ITEM #1:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1) THE
I-SERIES IS A 3 WHEELED VEHICLE
AND IS THE EXPORT VERSION OF THE T3
VEHICLE SUPPLIED TO LOCAL
GOVERNMENT, POLICE, POSTAL SERVICE
AND SECURITY COMPANIES IN THE USA.
THE I-SERIES UNIT IS CE CERTIFIED
AND EMC TESTED FOR EXPORTING.
	 	 	EAR99	 	 	 	 	 	 	 	 	 	 	$	0	 
	I-SERIES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

COMMENTS FROM LICENSING OFFICER (S) :

			
	ITEM #1:	 	EAR99 ITEMS CAN BE SHIPPED NLR (NO LICENSE REQUIRED)
UNLESSEXPORTER KNOWS OR IS INFORMED THAT ITEM WILL BE USED IN AN ACTIVITY RELATED
TO NUCLEAR, CHEMICAL, BIOLOGICALWEAPONS, OR MISSILES, OR FOR
PROHIBITED DESTINATIONS.

ITEMS OTHERWISE ELIGIBLE FOR EXPORT OR REEXPORT UNDER A LICENSE EXCEPTION OR NLR (NO LICENSE
REQUIRED) AND USED IN THE DESIGN, DEVELOPMENT, PRODUCTION OR USE OF
NUCLEAR, CHEMICAL OR BIOLOGICAL WEAPONS OR MISSILES REQUIRE A LICENSE FOR EXPORT OR REEXPORT AS
PROVIDED IN PART 744 OF THE EXPORT ADMINISTRATION REGULATIONS (EAR)

DESTINATIONS REQUIRING A LICENSE

SEE THE
COMMERCE COUNTRY CHART (SUPPLEMENT NO. 1 TO PART 738 OF THE EAR) TO
DETERMINE WHICH COUNTRIES
REQUIRE A LICENSE. USE THE COUNTRY CHART COLUMN INFORMATION GIVEN ON THIS FORM IN CONJUNCTION WITH
THE COUNTRY CHART TO DETERMINE THE LICENSING REQUIREMENTS FOR YOUR PARTICULAR ITEMS. FOR ITEMS
CLASSIFIED EAR99, SEE PART 746 OF THE EAR TO DETERMINE THE LICENSING REQUIREMENTS.

APPLICATIONS FOR EXPORT MUST BE SUBMITTED ON FORM BIS-748P MULTIPURPOSE APPLICATION. THESE FORMS
MAY BE OBTAINED BY CALLING (202) 482-3332 OR REQUESTING DIRECTLY
ON THE BIS INTERNET WEB SITE.
ASSISTANCE IN FILLING OUT

 

 

THE FORM, OR ANY ASPECT OF EXPORTING, IS PROVIDED BY THE EXPORT COUNSELING DIVISION IN WASHINGTON,

D. C. AT (202) 482-4811 OR THE WESTERN REGIONAL OFFICE IN NEWPORT BEACH, CALIFORNIA AT (714)
660–0144.

LICENSE EXCEPTIONS 

BE AWARE THAT THE LICENSING REQUIREMENTS FOR SOME DESTINATIONS MAY BE OVERCOME BY ANY LICENSE
EXCEPTION FOR WHICH YOUR ITEMS QUALIFY. SEE PART 740 OF EAR FOR INFORMATION ON LICENSE EXCEPTIONS.
THE LICENSE AVAILABLE COLUMN ON THIS FORM LISTS ONLY THOSE LICENSE EXCEPTIONS OF THE SET GBS, CIV,
APP, TSR WHICH ARE APPLICABLE TO YOUR ITEMS. OTHER LICENSE EXCEPTIONS MAY APPLY, DEPENDING UPON
THE CIRCUMSTANCES OF YOUR INTENDED TRANSACTION.

EXPORT CONTROL CLASSIFICATION NUMBERING SYSTEM (ECCN)

THE ECCN NUMBERING SYSTEM IS FOUND IN THE COMMERCE CONTROL LIST (CCL) PART 774 OF THE EAR.
THE CCL IS A COMPREHENSIVE LIST THAT IDENTIFIES ALL ITEMS CONTROLLED AND LICENSED BY COMMERCE.
WITHIN THE CCL, ENTRIES ARE IDENTIFIED BY AN ECCN. EACH ENTRY SPECIFIES THE LICENSE REQUIREMENTS
FOR THE ITEM AND THE REASON (S) FOR CONTROL. PLEASE CONSULT
PARTS 738 AND 774 OF THE EAR FOR
SPECIFIC INFORMATION ON ECCNS.

SHIPPERS EXPORT DECLARATION (SED)

WHEN AN EXPORT IS MADE, IT IS NECESSARY FOR THE EXPORTER TO SHOW ON THE SHIPPERS EXPORT
DECLARATION (FORM 7525-V) IN BLOCK 27 EITHER THE LICENSE NUMBER, THE APPLICABLE LICENSE EXCEPTION
SYMBOL OR THE SYMBOL NLR. FORM 7525-V IS AVAILABLE FROM THE SUPERINTENDENT OF DOCUMENTS, U.S. GOVERNMENT PRINTING OFFICE OF WASHINGTON, D.C. 20402, AND FROM EXPORT ADMINISTRATION DISTRICT
OFFICES (U.S. DEPT. OF COMMERCE).

	 	 	 
	 

	 	FOR INFORMATION CONCERNING
	 

	 	THIS CLASSIFICATION CONTACT
	 

	 	WAN–KANG CHAN
	STEVEN CLAGETT

	 	PHONE #: (202) 482–4516
	DIVISION DIRECTOR

	 	BIS/ONP/NM

 

 

EXHIBIT G

SAMPLE PURCHASE ORDER

			
	 	 	 
	[Company Name]

[Your Company Slogan ]
	 	PURCHASE ORDER
	
[Street Address ]

[ City, S T ZIP Code]

Phone [(212)444 - 0123] Fax [(212)444 - 0144]	 	 
	
The following number must appear on all related 

correspondence, shipping papers, and invoices:	 	 
	P.O. NUMBER: [001]	 	 

	 	 	 
	TO:

	 	SHIP TO:
	[Name ]

	 	[Name]
	[Company]

	 	[Company]
	[Street Address ]

	 	[Street Address ]
	[City, S T ZIP Code ]

	 	[City, ST ZIP Code ]
	[Phone ]

	 	[Phone ]

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	P.O. DATE	 	 	REQUISITIONER	 	 	SHIPPED VIA	 	 	F.O.B. POINT	 	 	TERMS	 
	 	 

	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	QTY	 	 	UNIT	 	 	DESCRIPTION	 	 	UNIT PRICE	 	 	TOTAL	 
	 	 

	 	 	 
	 	 	 
	 	 	 
	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 	SUBTOTAL

	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 	SALES TAX

	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 	SHIPPING & HANDLING

	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 	OTHER

	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 	TOTAL	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 

	1.	 	Please send two copies of your invoice.
	 
	2.	 	Enter this order in accordance with the prices, terms, delivery
method, and specifications listed above.
	 
	3.	 	Please notify us immediately if you are unable to ship
as specified.
	 
	4.	 	Send all correspondence to:

[Name]

[Street Address]

[City, ST ZIP Code]

Phone [(212)444-0123] Fax [(212)444-0144]

	 	 	 	 	 
	 

	 	 

Authorized by                    Dateexv10w1

Exhibit 10.1

February 28, 2009

Kathryn Reynolds Wallbrink

8 Birch Brook Road

Bronxville, NY 10708

Dear Katy,

We are pleased to present the following offer of employment. This letter will summarize and confirm
the details of our offer to you of employment by Lighting Science Group Corporation (“LSG”).

Position. Your initial job title will be SVP, Strategy and Finance. You will initially report
to Govi Rao, Chairman and CEO commencing on March 9, 2009.

Base Compensation. Your bimonthly salary will be $8333.33 (which equates to $200,000.00
annually), less standard payroll deductions and all required withholdings in accordance with
LSG’s payroll policies. You will be subject to the 2009 extraordinary key stakeholder
compensation plan which began March 1, 2009.

Performance Bonus. You will be eligible to participate in LSG’s performance bonus
plan(s) up to forty percent (40%) of your base salary, based on a combination of
company performance and personal achievements as agreed with your manager.

Long Term Incentive Plan. You will be eligible to participate in LSG’s long term incentive
plan. You will be granted 55,000 shares of restricted stock and 65,000 stock options
subject to approval by LSG’s Board of Directors. The issuance of stock options will be subject
to a written agreement that will be presented to you in due course.

Benefits. LSG currently offers a suite of benefits for you and your qualified dependents
including medical, dental, vision and life insurance options. Eligibility for these benefits
will be the first of the month after you begin employment. Additionally, you are
eligible for paid sick time off and paid holidays. You will initially be eligible for
twenty (20) days of paid vacation per year of employment and you will accrue an additional
twenty (20) days of vacation for each year of employment up to a maximum of forty (40) days of
paid vacation. Additional details regarding benefits will be provided from Human Resources upon
commencement of employment.

 

 

Required Documentation. To comply with the government- mandated confirmation of employment
eligibility, you will be required to complete an I-9 Employment Eligibility Verification form.
Please bring the required I-9 documents with you on your first day of employment.

At Will Employment. Please understand LSG is an employment-at-will company. This means that
you or LSG may terminate your employment at any time, for any reason or for no reason, with or
without notice. Accordingly, this letter is not a contract or commitment for continued employment. LSG also reserves the right to amend its benefits, plans or programs at
any time.

Additional Terms & Conditions Of Employment. LSG requires its employees to sign and comply with
additional terms and conditions of employment concerning confidentiality, assignment of
inventions and works of authorship, non-competition, and non-recruitment. The additional
terms and conditions of employment will be presented to you for your review, consideration and
signature on or about the first day of your employment and must be signed by you prior to your
tenth (10th) day of employment.

Severance: If you are terminated due to change of control, you will receive severance
equivalent to six months of base pay. If you are terminated for reasons other than change of
control or cause, you will receive severance equivalent to three months of base pay. In either
case, severance will be conditional upon your first executing (and not revoking) a valid waiver
and release of all claims that you may have against LSGC.

“Cause” means your: (a) willful breach of your obligations under this agreement, which breach
you fail to cure, if curable, within (30) days after receipt of a written notice of such
breach; (b) gross negligence in the performance or intentional non-performance of your
material duties to LSGC or any of its affiliates; (c) commission of a felony or a crime of
moral turpitude; (d) commission of a material act of deceit, fraud, perjury or embezzlement
that involves or directly or indirectly causes harm to LSGC or any of its affiliates; or (e)
repeatedly (i.e., on more than one occasion) being under the influence of drugs or alcohol
(other than over-the-counter or prescription medicine or other medically-related drugs to
the extent they are taken in accordance with their directions or under the supervision of a
physician) during the performance of your duties to LSGC or any of its affiliates, or, while
under the influence of such drugs or alcohol, engaging in grossly inappropriate conduct during
the performance of your duties to LSGC or any of its affiliates.

If you wish to accept employment at under the terms described above, please sign and date a copy of
this letter and return the signed and dated copy to me no later than March 19, 2009.

By signing this letter, you acknowledge that this offer letter supersedes any other offer,
agreement, or promises made to you by anyone, whether oral or written, and comprise the
complete agreement between you and LSG concerning the offer of employment by LSG.

Page 2 of 3

 

If you have any questions regarding this offer, please do not hesitate to contact me at
917.399.5355 or at lvera@lsgc.com.

On behalf of the entire team, I look forward to your favorable reply and to a productive and
enjoyable work relationship.

Sincerely yours,

Lynn Vera, Chief Human Resources Officer

	 	 	 	 	 
	 	AGREED AND ACCEPTED:

 	 
	 	/s/ Kathryn Reynolds Wallbrink
 	 	 
	 	Kathryn Reynolds Wallbrink 	 
	 	 	 
	 

Date:                                                 

Page 3 of 3

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