Document:

EXHIBIT 10.1

                   TRADEMARK AND DOMAIN NAME PURCHASE AGREEMENT

     THIS  TRADEMARK AND DOMAIN NAME PURCHASE AGREEMENT ("Agreement"), effective
as  of  14, November, 2005, is by and among Payment Data Systems, Inc., a Nevada
corporation,  and  Bills.com,  Inc.,  a  Delaware  corporation,  each  having  a
principal  place  of  business  at  12500  San  Pedro,  San Antonio, Texas 78216
(hereinafter together referred as "Seller") and Alivio Holdings, LLC, a Delaware
limited  liability  company,  having a principal place of business at 1875 South
Grant  Street, Suite 400, San Mateo, California 94402 ("Buyer") (together, Buyer
and Seller shall hereinafter be identified as the "Parties" or individually as a
"Party").

     WHEREAS,  Seller  adopted,  owns and has continuously used "bills.com" as a
trademark  for dissemination of advertising for others via an on-line electronic
communications  network; electronic bill presentment and payment information via
a  global  computer  information network; consulting and technical assistance in
the  field of designing, hosting, maintenance, operating, managing, advertising,
and  marketing  on-line  commerce  web  sites  (the  "Mark");

     WHEREAS,  Buyer wishes to acquire Seller's rights worldwide to the Mark and
the  goodwill  of Seller's business symbolized thereby and associated therewith;

     WHEREAS,  Seller  is  willing  to  assign to Buyer its rights in and to the
Mark,  along  with  the  goodwill  of  Seller's  business symbolized thereby and
associated  therewith  on  the  terms  and  conditions  hereinafter  provided;

     WHEREAS,  Seller  is  the  sole  owner  of  the Domain Name and the related
Intellectual  Property  Rights  (each  as  defined  below);  and

     WHEREAS, Buyer wishes to purchase from Seller and Seller wishes to sell and
assign  to Buyer the Domain Name and the related Intellectual Property Rights on
the  terms  and  conditions  hereinafter  provided.

     NOW,  THEREFORE,  in consideration of the foregoing and the mutual promises
and  consideration  hereinafter  set  forth,  the  Parties  agree  as  follows:
1.     As  used  in  this Agreement the following terms shall have the following
meanings:

     (a)     "Acquired Assets" shall mean the Domain Name, Intellectual Property
Rights  and  the  Mark.

     (b)  "Domain  Name"  shall  mean  the  domain address www.bills.com that is
registered  with  Network Solutions, LLC in the United States and all applicable
foreign  jurisdictions. The Domain Name does not include any web pages, computer
software,  copyrights,  patent  rights, trade secrets, or other assets of Seller
that  may  be  or  may  have  been  associated  with  the  Domain  Name.

     (c)  "Intellectual  Property  Rights"  shall  mean  any trademark, right of
trademark  registration  or  re-registration,  common  law  trademark  right and
goodwill  associated  with  the  Mark and the Domain Name, whether in the United
States or any foreign jurisdiction, including, but not limited to, the Mark. The
Intellectual  Property  Rights  do not include any web pages, computer software,
copyrights,  patent rights, trade secrets, or other assets of Seller that may be
or  may  have  been  associated  with  the  Mark  or  the  Domain  Name.

2.  At  the  Closing (as hereinafter defined) Seller will assign to Buyer all of
Seller's  right,  title  and  interest  throughout  the world in and to the Mark
(including, without limitation, U.S. Trademark Registration No. 2568868 and U.S.
Trademark  Registration No 2555338, collectively the "Trademark Registrations"),
together  with the goodwill of Seller connected with and symbolized by the Mark,
and  together  with  all  claims for past infringement(s) of the Mark including,
without  limitation,  the  right  to  sue  for, collect, and recover damages and
profits  for the same. Buyer specifically acknowledges that all assets of Seller
other  than  the  Acquired  Assets including, but not limited to, the CLICK YOUR
BILLS  GOODBYE  mark  and  U.S.  Trademark Registration No. 2,539,815 associated
therewith,  are expressly excluded from this Agreement and shall remain the sole
property  of  Seller.

3.     Buyer  shall  deliver  to  Seller,  on  the  Closing Date (as hereinafter
defined),  the sum of nine hundred fifty thousand dollars ($950,000) in the form
of  wire  transfer  of  immediately  available  funds.

4.     At  the  Closing,  Seller  will  (a)  execute  and  deliver  a  trademark
assignment  in  the  form  attached  hereto  as  Appendix A, along with Seller's
complete  application  and  registration  files for the Mark and (b) execute and
deliver  to  Buyer a signed, dated, and fully notarized original Registrant Name
Change  Agreement  in  a form acceptable to Go Daddy Software, Inc. or allow for
the  successful  domain  transfer  through  the interNIC system, transferring to
Buyer  the  entire  right,  title,  and  interest  in  and  to  the Domain Name.

5.     At  the  Closing, Buyer and Seller will execute and deliver the following
documents and instruments each of which shall be in a form mutually satisfactory
to  Buyer  and  Seller:

         (i)     Bill  Payment  Services  Agreement;  and
         (ii)    Non-Competition  Agreement;

6.  Seller  agrees  to assign and, upon consummation of the transactions, hereby
does  assign to Buyer all rights in the Domain Name and the related Intellectual
Property Rights. Seller further agrees to cooperate as necessary in the transfer
of the Domain Name and the related Intellectual Property Rights to Buyer. Seller
agrees not to use, register, or attempt to register any domain name, mark, name,
or  other  designation  of  origin  which  includes the term "bills.com" (or any
variation  thereof  that  is  likely to cause confusion). Except as set forth in
this  Agreement,  Seller  agrees not to use the term "bills.com" (and variations
thereof that are likely to cause confusion) as a domain name, trademark, service
mark,  trade name, or other designation of source after the Closing Date of this
Agreement.  Buyer  specifically acknowledges that Seller shall have the right to
continue its business under any name, mark, or domain name that is not likely to
cause  confusion  with respect to the Mark or the Domain Name including, but not
limited  to,  "billx.com,"  "billhelp.com,"  and "billxpress.com." Buyer further
acknowledges  and agrees that Seller shall have the right to continue to operate
its  business using the "bills.com" Domain Name and Mark for a period of 60 days
after  the  Closing  Date  or  until such time as the Parties have completed the
process of converting the "bills.com" web site of Seller to another domain name,
whichever  occurs  earlier.  Buyer  agrees  to  cooperate  with  Seller  in such
conversion  process,  and Buyer agrees that it will not change any IP addresses,
DNS  settings,  or  other material aspects of the "bills.com" web site until the
Parties  mutually  agree  in  writing  that  the conversion process is complete.

7.     Except  as set forth in this Section 7, Buyer shall not assume, and Buyer
shall  not  be  deemed  to  have  assumed nor agreed to pay, perform, fulfill or
discharge,  any  contract  or  agreement (whether written or oral), liability or
other  obligation  of  Seller,  including,  without  limitation,  any  liability
relating to the transfer of an Acquired Asset.  Buyer hereby assumes all losses,
costs,  liabilities  and obligations that arise on or after the Closing Date and
relate  solely  to  the  Acquired  Assets  (the  "Assumed  Liabilities").

8.     Seller  hereby  represents  and  warrants  as  follows:

     (a)  Seller  is  the owner of the Mark as applied to the goods listed above
and  has  the  corporate  right  to  enter  into this Agreement and the attached
assignments;  Seller  does  not  know  of any prior use of the Mark or any third
party  claim  of any prior use of the Mark or any confusingly similar mark on or
in  connection with the same or similar goods or services; and, to the knowledge
of  Seller,  there  are  no  challenges to Seller's ownership of the Mark or its
right  to  assign  the  Mark  and  the  associated  goodwill  to  Buyer.

     (b)  Seller  has  not  abandoned  use of the Mark and Seller has reasonably
continuously  used  the Mark in commerce since its adoption, as set forth in the
Trademark  Registrations, in connection with the goods or services listed in the
Trademark  Registrations.

     (c)  Except  for  a  fictitious business name registered in the city of San
Antonio and the State of Texas which Seller will terminate within 30 days of the
Closing,  and other than the Trademark Registrations and the Domain Name, Seller
has filed no applications and owns no registrations or other claims to ownership
relating to any trademark, service mark, trade name, or fictitious business name
application  or  registration  for  the  Mark  worldwide.

     (d)  Seller  is  the  owner of the Domain Name and the related Intellectual
Property  Rights  and  has  the exclusive right to enter into this Agreement and
transfer  ownership  of  the  Domain  Name and the related Intellectual Property
Rights  to  Buyer. No third party has challenged or, to the knowledge of Seller,
has  threatened  to  challenge,  or  to  Seller's  knowledge,  has  the right to
challenge  Seller's  ownership  of  the Domain Name and the related Intellectual
Property  Rights  or Seller's right to transfer ownership of the Domain Name and
the  related  Intellectual  Property  Rights  to  Buyers.

     (e)  Seller  has the requisite corporate power and authority to execute and
deliver,  and  consummate the transactions contemplated by this Agreement and to
carry  out  all  actions  required  of  it  pursuant  to  this  Agreement.

     (f) Seller has obtained all necessary authorizations and approvals from its
Board of Directors required for the execution and delivery of this Agreement and
the  consummation  of  the  transactions contemplated hereby. This Agreement has
been  duly executed and delivered by Seller and constitutes the legal, valid and
binding  obligation  of Seller enforceable against Seller in accordance with its
terms,  except  as  the  enforceability thereof may be limited by any applicable
bankruptcy,  reorganization, insolvency or other laws affecting creditors rights
generally  or  by  general  principles  of  equity.

     (g)  The  execution  and  delivery  by  Seller  of  this  Agreement and the
consummation  by  Seller  of the transactions contemplated hereby, will not: (a)
violate  or  conflict  with  any  provision  of the Articles of Incorporation or
Bylaws of Seller, as amended to date; or (b) constitute a violation of, or be in
conflict  with,  or  constitute  or  create  a  default  under, or result in the
creation  or  imposition  of  any  encumbrances  upon any of the Acquired Assets
pursuant  to:  (i)  any  contract,  agreement or instrument to which Seller is a
party  or  by which Seller or the Acquired Assets is bound; or (ii) any statute,
judgment,  decree,  order,  regulation  or  rule of any court or governmental or
regulatory authority applicable to Seller or the Acquired Assets or by which any
of  the  Acquired  Assets  is  bound.

     (h)  No  consent,  approval  or  authorization  of,  or  registration,
qualification  or  filing with, any governmental agency or authority is required
for  the  execution  and  delivery  by  Seller  of  this  Agreement  or  for the
consummation  by  Seller of the transactions contemplated hereby, except for the
filing  of  an  appropriate  current  report on Form 8-K with the Securities and
Exchange  Commission.

     (i)  No  action, suit, claim, proceeding or investigation is pending or, to
the  knowledge  of  Seller, threatened or contemplated or expected, relating to,
involving  or  affecting  the Acquired Assets or which questions the validity of
this  Agreement  or challenges any of the transactions contemplated hereby, nor,
to  the  knowledge of Seller, is there any reasonable basis for any such action,
suit,  proceeding  or  investigation.

     (j)  Seller  is the lawful owner of all of the Acquired Assets, and has the
full  right  to  sell, convey, transfer, assign and deliver the Acquired Assets,
without  the  need  to obtain the consent or approval of any third party. All of
the Acquired Assets are free and clear of any security interests, liens, claims,
charges,  options,  mortgages,  debts,  leases (or subleases), conditional sales
agreements,  title  retention  agreements,  encumbrances  of  any kind, material
defects  as  to  title  or  restrictions  against  the  transfer  or  assignment
(collectively,  "Encumbrances"). Seller will convey the Acquired Assets to Buyer
by  deeds,  bills  of  sale,  certificates  of  title  and  other instruments of
assignment and transfer, effective in each case to vest in Buyer, and Buyer will
have,  good,  valid and marketable title and (where applicable) record title to,
and/or  the  right  to  use,  all  of the Acquired Assets, free and clear of all
Encumbrances.

     (k)  Except for Dutchess Advisors LLC, Seller has not retained, utilized or
been represented by any broker, agent, finder or intermediary in connection with
the  negotiation  or  consummation  of  the  transactions  contemplated  by this
Agreement.  Seller  agrees  to  indemnify  and  to  hold harmless Buyer from any
liability  for  any  commission  or compensation in the nature of a finders' fee
(and  the  costs  and  expenses  of defending against such liability or asserted
liability)  for  which  such  Seller  or  any  of  its  officers,  employees, or
representatives  is  responsible.

9.     Except as set forth in paragraph 6, Seller agrees that it shall cease use
     of  the  Mark  following  the  Effective  Date.

10.     For three (3) years after the Effective Date, Buyer will allow Seller to
have  pre-existing  subscribers  to  the  "bills.com" web site log in to the new
"bills.com"  web  site  operated  by Buyer and be redirected to another web site
designated  by  Seller.

11. (a) Seller agrees to indemnify and hold Buyer harmless from and with respect
to  any  costs,  losses,  obligations,  damages, lawsuits, deficiencies, claims,
demands,  and  expenses  (whether  or  not  arising  out of third-party claims),
including,  without limitation, reasonable attorney's fees, interest, penalties,
costs of mitigation, defense or settlement (collectively, "Losses"), arising out
of,  resulting  from  or incident to: (i) any claim that the Acquired Assets, or
the  use,  thereof,  infringes  or  misappropriates  any  trademark  or  other
intellectual  property  or  other  proprietary  right  of any person or (ii) any
breach  of  any  of  Seller's  representations  or  warranties  or  covenants.

     (b)  Buyer  agrees  to  indemnify  and  hold  Seller harmless from and with
respect  to any Losses arising out of, resulting from or incident to the Assumed
Liabilities.

12.     The  Parties agree that this Agreement shall inure to the benefit of and
be  binding upon each of their respective agents, representatives, shareholders,
members,  officers,  directors,  employees,  assigns,  subsidiaries,  parent
companies,  and  predecessor  or  successor  companies.

13.     In  the  event  of any action, proceeding or arbitration to interpret or
enforce  the  terms  of  this  Agreement,  the  prevailing party in such action,
proceeding  or  arbitration shall be entitled to recover its costs, expenses and
reasonable  attorneys'  fees incurred in connection with such action, proceeding
or  arbitration.  The  Parties shall each bear their own costs and fees incurred
in  effectuating  this  Agreement.

14.     It is the belief of the Parties that this Agreement does not contain any
provisions  contrary  to  law.  However,  if any part of this Agreement shall be
determined  to  be illegal, invalid or unenforceable, that part shall be severed
from  the  Agreement  and the remaining parts shall be valid and enforceable, so
long  as  the  remaining  parts  continue  to fulfill the original intent of the
Parties.

15.     This Agreement and the documents and instruments described in Sections 4
and  5  of this Agreement (collectively, the "Transaction Documents") constitute
the  entire  agreement  between  the  Parties,  and  supersede any and all prior
agreements  or  understandings,  written  or  oral, between them relating to the
subject  matter  herein  and  therein.  No other promises or agreements shall be
binding upon the parties with respect to this subject matter unless contained in
the  Transaction  Documents  or separately agreed to in writing and signed by an
authorized  representative  of  each  of  the  Parties.

16.     The  undersigned  represent  that  they  have  authority to execute this
Agreement  on  behalf of the respective parties and to carry out all obligations
imposed  hereunder.

17.     All  transfer  and  sales  taxes  payable  with  respect to the sale and
conveyance  of  the Acquired Assets to Buyer shall be paid by Seller.  All other
fees  and  expenses  incurred  in connection with the negotiation, execution and
delivery  of  this  Agreement,  and  the  consummation  of  the  transactions
contemplated  herein,  shall  be  borne  separately  by  each  party  hereto.

18.     All  notices,  demands  and  other  communications hereunder shall be in
writing  or  by  facsimile  transmission,  and shall be deemed to have been duly
given  if  delivered  personally  or if mailed by certified mail, return receipt
requested,  postage  prepaid,  or  if  sent  by  overnight  courier,  or sent by
facsimile  transmission,  as  follows:

If  to  Seller,  to:
Payment  Data  Systems,  Inc.
Suite  120
San  Antonio,  Texas  78216
Facsimile:  210-249-4130
Attention:  Louis  Hoch

With  a  copy  to:

Cox  Smith  Matthews  Incorporated
112  East  Pecan  Street,  Suite  1800
San  Antonio,  TX  78205
Facsimile:  210-226-8395
Attention:  Steven  R.  Jacobs,  Esq.

If  to  Buyer,  to:
Alivio  Holdings,  LLC
1875  South  Grant  Street,  Suite  400
San  Mateo,  CA,  USA  94402
Facsimile:  650-332-1515
Attention:  Andrew  Housser

With  a  copy  to:

White  &  Lee
545  Middlefield  Road
Menlo  Park,  CA  94025
Facsimile:  (650)  470-4099
Attention:  Theodore  G.  Wang,  Esq.

Any  such notice shall be effective: (a) if delivered personally, when received;
(b)  if  sent by overnight courier, when receipted for; (c) if mailed, three (3)
days  after  being  mailed  as  described  above;  and  (d) if sent by facsimile
transmission,  upon  confirmation  of successful and complete transmission.  Any
party  may  change its address from time to time by means of notice given to the
other  parties  in  the  manner  provided  in  this  Section.

19.     The validity and construction of this Agreement shall be governed by the
     internal  laws  (and  not  the  conflicts  rules) of the State of Delaware.

20.     This  Agreement  may be executed in multiple counterparts, each of which
shall  be deemed an original, but all of which together shall constitute one and
the  same  instrument.

21.     The consummation of the transactions contemplated by this Agreement (the
"Closing") shall occur at 11:00 a.m., San Antonio, Texas time, at the offices of
Cox Smith Matthews Incorporated, 112 East Pecan Street, Suite 1800, San Antonio,
TX  78205  on  November  16,  2005  or at such other time, date and place as the
Parties  may  mutually agree.  The date, as thus determined on which the Closing
will  be  held  is  herein  referred  to  as the "Closing Date."  The Closing is
contingent  upon  the  execution and delivery of the Transaction Documents on or
prior  to  the  Closing  Date  and  neither  Party  shall have any obligation to
consummate  the  transactions  contemplated  hereby,  unless or until all of the
Transaction  Documents  are  satisfactory  to  such  Party, in such Party's sole
discretion.

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

ALIVIO  HOLDINGS,  LLC

By:
Name:
Title:
PAYMENT  DATA  SYSTEMS,  INC.

By:
Name:
Title:
BILLS.COM,  INC.

By:
Name:
Title:

                                   APPENDIX A

                              TRADEMARK ASSIGNMENT

     THIS ASSIGNMENT ("Assignment"), effective as of ________________, is by and
among  Payment  Data  Systems,  Inc.,  a  Nevada corporation, Bills.com, Inc., a
Delaware  corporation,  each  having  a principal place of business at 12500 San
Pedro,  San  Antonio,  Texas  78216  (hereinafter  collectively  referred as the
"Assignor") and Alivio Holdings, LLC a Delaware limited liability company having
a  principal place of business at 1875 South Grant Street, Suite 400, San Mateo,
California  94402  ("Assignee").

     WHEREAS,  Assignor has adopted, owns and has used "bills.com" as a mark for
dissemination of advertising for others via an on-line electronic communications
network;  electronic  bill  presentment  and  payment  information  via a global
computer  information  network;  and  consulting and technical assistance in the
field  of designing, hosting, maintenance, operating, managing, advertising, and
marketing  on-line  commerce  web  sites  ("the  Mark").

     WHEREAS,  Assignor  desires  to assign to Assignee all of Assignor's right,
title  and  interest  in and to the Mark worldwide together with the goodwill of
the  business  pertaining  thereto.

     NOW  THEREFORE,  for  good  and valuable consideration, receipt of which is
hereby acknowledged, Assignor does hereby sell, assign, set over and transfer to
Assignee all of Assignor's right, title and interest throughout the world in and
to  the  Mark  and  any  registrations and other applications therefor worldwide
(including, without limitation, U.S. Trademark Registration No. 2568868 and U.S.
Trademark  Registration No 2555338, collectively the "Trademark Registrations"),
together  with  the  goodwill  of  Assignor connected with and symbolized by the
Mark,  and  together  with  all  claims  for  past  infringement(s) of the Mark,
including  without limitation the right to sue for, collect, and recover damages
and  profits  for  the  same.

     IN  WITNESS  HEREOF,  the undersigned represent that they have authority to
execute  this Agreement on behalf of the respective parties and to carry out all
obligations  imposed  hereunder.

ALIVIO  HOLDINGS,  LLC               BILLS.COM,  INC.

By:                                  By:
Name:                                Name:
Title:                               Title:

PAYMENT  DATA  SYSTEMS,  INC.

By:
Name:
Title:ex106

    Goodrich
      Capital

    International

    Corporate
      Financial Advisors

    52
      Vanderbilt, Suit 501

    New
      York,
      NY 10017

    Tel:
      212-973-9400

    Fax:
      212-557-7611

    E-mail:
      mail@goodcap.com

    

    September
      26, 2005

    

    Dr
      Raymond Brouzes

    President
      & CEO

    Axial
      Vector Engine Corporation

    One
      World
      Trade Center

    121
      SW
      Salmon Street, Suite 1100

    Portland,
      Oregon 97204

    

    Dear
      Ray:

    

    This
      letter agreement (the “Agreement”) will confirm that Axial Vector Engine
      Corporation (the “Company”) has engaged Goodrich Capital (the “Advisor”) as the
      Company’s exclusive business and financial advisor on the terms set forth
      herein.

    

    
      	1.  	
              SERVICES.
                Advisor will assist the Company and its subsidiaries and affiliates
                by
                providing strategic planning services, financial advisory services,
                business consulting and such other services as required to assist
                the
                Company in securing the required capitalization as described in the
                “Engagement Proposal Outline” attached hereto as Appendix A (the
                “Outline”) or as the Company and Advisor otherwise mutually agree (the
                “Services”). The Services shall not include any services that would
                constitute Advisor as a broker-dealer (see Section 9 below), and
                this
                Agreement is not intended for the purpose of selling or buying securities.
                Advisor will devote such time and efforts to the affairs of the Company
                as
                is reasonable and adequate to render the Services. In conjunction
                with the
                Services, Advisor agrees to make itself available to the officers
                of the
                Company at mutually agreed upon place(s), during normal business
                hours and
                for reasonable periods of time, subject to reasonable advance notice
                and
                mutually convenient scheduling. Otherwise, Advisor will have the
                latitude
                to perform the Services at the Advisor’s business location. Given the
                nature of the Services, Advisor cannot warrant or guarantee any particular
                outcome. Further, the advice and direction provided by Advisor as
                a result
                of the Services will constitute recommendations only, subject to
                acceptance and implementation by the Company in its discretion. In
                the
                event that the Company determines to engage an executive recruiting
                firm
                in order to implement any of the executive staffing recommendations
                arising out of the Services, the Company shall engage Stanton-Chase
                International, an affiliate of Advisor, on mutually agreeable terms
                and
                pursuant to a separate engagement
                letter.

            

    

    

    
      	2.  	
              INDEPENDENT
                CONTRACTOR. Advisor is an independent contractor in the performance
                of the
                Services. Advisor will not, by reason of this Agreement or the performance
                of the Services, be or be deemed to be an employee, agent, partner,
                co-venturer or controlling person of the Company, and Advisor will
                have no
                power to enter into any agreement on behalf of or otherwise bind
                the
                Company.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          Dr.
            Raymond Brouzes

          September
            26, 2005

          Page
            2

        

      

    

    
 

    
      	3.  	
              COMPENSATION.
                The Company will compensate Advisor for the Services rendered hereunder
                as
                follows:

            

    

    

    
      	a.  	
              Throughout
                the term of Advisor’s engagement, the Company agrees to pay to Advisor a
                nonrefundable cash fee related to the level of services provided,
                payable
                monthly in advance. The initial phase of the project as described
                in the
                Outline involves the first three month period of Services during
                which the
                Advisor will be paid a fee of $150,000. The fee will be paid at the
                monthly rate of $50,000. The Company shall make the first payment
                upon the
                execution of this Agreement, covering the first month thereafter.
                The
                monthly fee shall be pro rated for any partial months. On or about
                90 days
                from the date hereof, the Company and Advisor will jointly evaluate
                the
                monthly fee in light of the continuing Services to be rendered and
                will
                consider in good faith whether an equitable adjustment (increase
                or
                decrease) is warranted.

            

    

    

    
      	b.  	
              For
                each capital raising transaction closed during the term of Advisor’s
                engagement (or thereafter in accordance with Section 5 below), the
                Company
                agrees to pay or issue, as applicable, to Advisor for the Services
                (i) a
                cash fee equal to five percent (5%) of the “Transaction Amount” (as
                defined below) or the equivalent economic value of a strategic partnership
                as agreed by the parties in good faith; and (ii) warrants to purchase
                five
                percent (5%) of the capital stock of the Company issued in conjunction
                with such capital raising transaction (same class of stock as purchased
                by
                investors, e.g. Series A Preferred, and same purchase price). In
                the event
                there is more than one transaction, Advisor will be issued initial
                warrants at the first closing and additional warrants at each subsequent
                closing, but only based on the additional shares (or equivalent equity
                interests) issued in each such subsequent closing. The warrants will
                contain customary terms for similar transactions, including, without
                limitation, anti-dilution provisions for stock splits, stock dividends,
                merger and other recapitalization transactions; the ability of Advisor
                to
                transfer the warrants, or underlying shares upon exercise, to Advisor’s
                assignees; cashless exercise rights; and piggyback registration and
                tag
                along rights on the underlying
                shares.

            

    

    

    As
      used
      herein “Transaction Amount” shall mean the total proceeds and other
      consideration paid or received and to be paid or received (which shall be deemed
      to include amounts paid into escrow) and all liabilities assumed in connection
      with a transaction, including, without limitation: (i) cash; (ii) interest
      bearing notes or other types of interest bearing debt, securities, and other
      property valued at the fair market value thereof; (iii) payments to be made
      in
      installments; (iv) amounts paid or payable under consulting agreements,
      agreements not to compete or similar arrangements; and (v) the net present
      value
      of contingent payments (whether or not related to the Company’s earnings or
      operations).

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

        
          Dr.
            Raymond Brouzes

          September
            26, 2005

          Page
            3

        

      

    

     

    Subject
      to the following sentence, the fee under Section 3(b) will be paid or issued
      at
      the closing of the applicable transaction. In the event that a transaction
      is
      closed, but the proceeds (i) are receivable in installments or subject to
      contingencies, all cash fees in respect thereof will be subject to the same
      payment schedule or contingencies and Advisor will be paid a portion of its
      fee
      at the closing and upon the payment of each such installment on a pro rata
      basis; (ii) are receivable pursuant to a note or notes, all fees in respect
      thereof will be paid on a pro rata basis when and to the extent that payments
      on
      such note(s) are actually received by the Company; or (iii) are escrowed all
      fees in respect thereof will be paid only when such escrowed amounts are
      released from escrow.

    

    
      	4.  	
              EXPENSES.
                In addition to any fees that may be payable to Advisor hereunder,
                the
                Company will reimburse Advisor on a monthly basis for all reasonable
                travel and other out-of-pocket expenses incurred in performing the
                Services hereunder upon presentation by Advisor to the Company of
                written
                documentation evidencing the same reasonably satisfactory to the
                Company.
                Advisor undertakes not to incur expenses that exceed $1,000 per month
                without the Company’s prior
                approval.

            

    

    

    
      	5.  	
              TERM.
                Advisor’s engagement will commence on the date hereof and will continue
                for one (1) year and shall automatically renew for additional periods
                of
                1-year each provided that Advisor has met applicable performance
                goals to
                be agreed upon between the parties and memorialized in writing.
                Notwithstanding termination or expiration of this Agreement, if any
                investor or strategic partner introduced to the Company by Advisor
                consummates one or more investments in or transactions with the Company
                during the 12-month period following the date of termination or expiration
                of this Agreement, the Company will pay Advisor upon the closing
                of each
                such investment or tansaction a fee under Section 3(b) equal to the
                amount
                that would have been paid had this Agreement been in place. Payment
                will
                be made in accordance with Section 3 above. Sections 3, 5, 6, 7,
                8, 9, 10,
                11 and 12 will survive the termination or expiration of this Agreement,
                and any other provisions which are expressly or by implication intended
                to
                survive termination or expiration of this
                Agreement.

            

    

    

    
      	6.  	
              INDEMNITY.
                The Company agrees to indemnify, defend, and hold harmless Advisor
                as set
                forth on Exhibit A.

            

    

    

    
      	7.  	
              CONFIDENTIALITY.
                In connection with this Agreement, the Company will furnish Advisor
                with
                information reasonably requested by Advisor. Advisor will rely solely
                upon
                such information supplied by the Company and its representatives
                without
                assuming any responsibility for independent investigation or verification
                thereof, or for any misstatements or omissions therein. To the extent
                consistent with legal requirements, all information provided to Advisor
                by
                the Company, unless publicly available or otherwise available to
                Advisor
                without restriction or breach of any confidentiality obligation,
                will be
                held by Advisor in confidence and, without the Company’s prior approval,
                will not be disclosed to anyone, other than Advisor’s owners, members,
                officers, employees, and subcontractors or service providers involved
                in
                the Services (collectively, the employees, and subcontractors or
                service
                providers involved in the Services (collectively, the “Representatives”)
                who have a need to know such information in connection with this
                engagement, or used for any purpose other than the transactions
                contemplated hereunder. In the event that Advisor is requested in
                any
                proceeding to disclose any such confidential information, Advisor
                will
                

            

    

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

        
          Dr.
            Raymond Brouzes

          September
            26, 2005

          Page
            4

        

      

    

     

    
      	 	give the Company prompt notice of such request so
              that
              the Company may seek an appropriate protective order. The Company agrees,
              however, that if Advisor is nevertheless compelled to disclose any
              such
              information as Advisor is explicitly required to disclose), provided
              that,
              upon the Company’s request and at the Company’s expense, Advisor uses
              commercially reasonable efforts to obtain assurances that confidential
              treatment will be accorded to the information so disclosed. Advisor
              will,
              upon the written request of the Company, return to the Company or destroy
              all of its confidential information received or developed pursuant
              to this
              Agreement (and all copies and reproductions thereof); provided that
              Advisor may retain one copy of the confidential information in a file
              accessible only to counsel for the purpose, in the event of a future
              dispute, of proving what information it did or did not receive
              hereunder.

    

     

    
      	8.  	
              USE
                OF ADVISOR NAME. The Company agrees not to, directly or indirectly,
                refer
                to Advisor or attribute any information to Advisor (A) in the press,
                (B)
                for advertising or promotional purposes, or (C) for the purpose of
                informing or influencing any third party, including the investment
                community, without the prior written consent of Advisor, which consent
                (as
                to (C)), shall not be unreasonably withheld or
                delayed.

            

    

    

    
      	9.  	
              BROKER-DEALER.
                The Company acknowledges that the compensation specified in this
                Agreement
                is related to Advisor’s consultative efforts in business and financial
                planning. Advisor is not a licensed securities broker-dealer and
                therefore
                Advisor is not involved under this Agreement in the sale of securities
                on
                behalf of the Company or any issuer affiliated with the Company.
                Advisor
                does not intend to perform services that are defined in the Securities
                Exchange Act of 1934 as being exclusive to licensed broker-dealers.
                Moreover, Advisor does not negotiate raising of capital transactions,
                does
                not directly solicit purchasers of the Company’s securities and will not
                hold any funds or securities in a capital raising transaction. Further,
                neither Advisor nor any of its members or employees provides any
                legal
                advice or counsel.

            

    

    

    
      	10.  	
              NO
                BROKER. The Company has not dealt with any broker, investment banker,
                agent, or other person, except for Advisor, who may be entitled to
                any
                commission or compensation in connection with this Agreement or the
                transactions contemplated hereby.

            

    

    

    
      	11.  	
              ENTIRE
                AGREEMENT. This Agreement constitutes the entire agreement between
                the
                parties pertaining to the subject matter hereof and supersedes and
                cancels
                any prior communications, representations, understandings, and agreements
                between the parties. No modifications of or changes to this Agreement
                will
                be binding, nor can any of its provisions be waived, unless agreed
                to in
                writing by the parties.

            

    

    

    
      	12.  	
              GOVERNING
                LAW. This Agreement will be interpreted under and governed by the
                laws of
                the State of New York, without regard to its choice of laws principles.
                Any controversy, dispute, or claim between the parties relating to
                this
                Agreement will be resolved in a confidential manner by binding arbitration
                in New York, New York in accordance with the rules of the American
                Arbitration Association. Judgment upon the award rendered by the
                arbitrator may be entered in any State or Federal court having
                jurisdiction thereof.

            

    

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

        
          Dr.
            Raymond Brouzes

          September
            26, 2005

          Page
            5

        

      

    

    
      

      
        	13.  	
                SAVINGS
                  CLAUSE. If any term or other provision of this Agreement is determined
                  to
                  be invalid, illegal or incapable of being enforced by any rule
                  of law or
                  public policy, all other terms, provisions and conditions of this
                  Agreement shall nevertheless remain in full force and effect. Upon
                  such
                  determination that any term or other provision is invalid, illegal
                  or
                  incapable of being enforced, the parties hereto will negotiate
                  in good
                  faith to modify this Agreement so as to effect the original intent
                  of the
                  parties as closely as possible to the fullest extent permitted
                  by
                  applicable law in an acceptable manner to the end that the transactions
                  contemplated hereby are fulfilled to the extent possible. Nothing
                  in this
                  Agreement will be interpreted so as to require either party to
                  violate any
                  applicable laws.

              

      

      

      We
        are
        delighted to accept this engagement and look forward to working with you.
        Please
        confirm that the foregoing is in accordance with your understanding of our
        agreement by signing and returning to us a copy of this letter. We are confident
        that you will be pleased with our performance.

      

      Very
        truly yours,

      

      GOODRICH
        CAPITAL

      

      By:
        /s/ Robert E. Albus

      Robert
        E.
        Albus

      President
        and CEO

      

      Accpeted
        and agreed to as of the

      Date
        set
        forth above:

      

      Axial
        Vector Engine Corporation

      

      By:
        /s/ Dr. Raymond Brouzes

      Dr.
        Raymond Brouzes

      Title:
        President and CEO

    

    

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

        
          Dr.
            Raymond Brouzes

          September
            26, 2005

          Page
            6

        

      

    

    

    

    

    
      Exhibit
        A

      

      The
        Company agrees to indemnify, defend, and hold harmless Advisor and its
        affiliates, directors, officers, counsel, employees, agents, members, managers,
        successors, assigns and controlling persons (each, an “Indemnified Party”) from
        and against any and all losses, claims, damages, costs, expenses, and
        liabilities (including any investigatory, legal, and other expenses as they
        are
        incurred by an Indemnified Party in connection with preparing for or defending
        any action, claim, or proceeding, whether or not resulting in any liability)
        (collectively, “Indemnifiable Losses”) to which any Indemnified Party may become
        subject or liable relating to or arising out of (a) this Agreement or the
        Services to be performed under this Agreement or any agreement between the
        parties to this Agreement, (b) any transactions referred to in this Agreement
        or
        any transactions arising out of the transactions contemplated by this Agreement,
        (c) any inaccuracy in or breach in the representations and warranties of
        the
        Company contained in this Agreement, and (d) any failure of the Company to
        perform its obligations under this Agreement, provided that the Company shall
        not be liable to an Indemnified Party in any such case to the extent that
        any
        such Indemnifiable Loss is found in a final, nonappealable judgment by a
        court
        of competent jurisdiction or by arbitration to have resulted as a direct
        and
        proximate cause from the willful misconduct or gross negligence of an
        Indemnified Party. If for any reason, except as specifically provided herein,
        the foregoing indemnity for Indemnifiable Losses is unavailable to an
        Indemnified Party or insufficient to fully hold any Indemnified Party harmless,
        then the Company agrees to contribute to the amount paid or payable by such
        Indemnified Party harmless, then the Company agrees to contribute to the
        amount
        paid or payable by such Indemnified Party as a result of such Indemnifiable
        Losses in such proportion as is appropriate to reflect the relative benefits
        received by and fault of the Company, on the one hand, and the relative benefits
        received by and fault of the Indemnified Party, on the other hand.

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