Document:

exhibit_10-15.htm

    
      

    

    EXHIBIT
10.15

    
 

    EXHIBIT
“A”

     

    TO
LOAN AGREEMENT DATED OCTOBER 12, 2007 BETWEEN

    SKYE
INTERNATIONAL, INC. AND PERRY D. AND ROSE LOGAN

     

      
        

      

    

     

    THE
SALE, TRANSFER OR OTHER DISPOSITION OF THIS NOTE, OR OF THE SHARES
OF

    COMMON
STOCK ISSUABLE UPON CONVERSION HEREOF, IS RESTRICTED.

     

    SKYE
International, Inc.

     

    15%
CONVERTIBLE SECURED PROMISSORY NOTE

    1-YEAR
MATURITY (OPTIONAL 2-YEAR MATURITY)

    
    

     

    
      	US 
      $100,000.00 	
              October 12,
      2007

            
	Phoenix, Arizona,
      USA	 

    

     

    FOR VALUE RECEIVED, Skye
International, Inc., a Nevada corporation with offices at 770 1East Gray
Road, Suite 4, Scottsdale, Arizona 85260 (the "Company"), hereby promises
unconditionally, as of October 12, 2007 (the “Effective Date”), to pay to the
order of Perry D. Logan and Rose Logan, husband and wife, as joint tenants with
the right of survivorship, P.O. Box 35080, Las Vegas, Nevada 89133 (“Holder”),
the principal amount of One Hundred Thousand Dollars (US $100,000.00) together
with interest on the principal balance outstanding from time to time under this
instrument ("Note"), from and including the date hereof, until, but excluding,
the date of payment, at a per annum rate equal to the "Stated Interest Rate"
specified in Section
1(a), or, to the extent applicable, at the "Default Interest Rate"
specified in Section
1(b), in accordance with the following terms and conditions:

     

    1.    Contracted For Rate of
Interest. The contracted for rate of interest of the indebtedness
evidenced by this Note shall include and consist of the following, as
applicable:

     

    (a)          Stated Interest Rate. The
"Stated Interest Rate" shall equal Fifteen Percent (15%) per annum, calculated
on the basis of the actual number of days elapsed, assuming a 365-day year,
applied to the outstanding principal balance of this Note from time to time. The
principal balance outstanding hereunder shall bear interest at the Stated
Interest Rate from the date of issuance of this Note through the date that is
one day prior to the first to occur of the following events: (i) the unpaid
principal balance, together with all accrued interest and other amounts payable
hereunder, have been paid in full; (ii) the unpaid principal balance, together
with all accrued interest and other amounts payable hereunder, have been
converted into shares of the Company’s common stock as permitted in accordance
with Section 7;
or (iii) the passage of ten (10) days following the occurrence of one or more
uncured Events of Default as defined in Section
4.

     

    (b)          Default Interest Rate. The
"Default Interest Rate" shall equal Eighteen Percent (18%) per annum, calculated
on the basis of the actual number of days elapsed, assuming a 365-day year,
applied to the outstanding principal balance of this Note from time to time. The
principal balance outstanding hereunder shall bear interest at the Default
Interest Rate beginning eleven (11) days after the date of occurrence of any
uncured Event of Default, as defined in Section 4, and
continuing until the first to occur of the following events: (i) the unpaid
principal balance, together with all accrued interest and other amounts payable
hereunder, have been paid in full; or (ii) the unpaid principal balance,
together with all accrued interest and other amounts payable hereunder, have
been converted into shares of the Company’s common stock as permitted in
accordance with Section
7.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (c)          Monthly Payments of Interest Only;
Payment in Full on Maturity Date (or Extended Maturity Date). Interest
accrued on the principal balance of this Note shall be due and payable to Holder
monthly, on the first day of each calendar month, beginning at the start of the
first full calendar month following the Effective Date and continuing on the
first day of each month thereafter until all obligations of the Company under
this Note have been
paid in full. The outstanding principal balance of this Note, together with all
accrued but unpaid interest and all additional amounts payable hereunder, shall
be due and payable in full on the date that is exactly one (1) year after the
Effective Date (the "Maturity Date"); provided, however,
that the Company shall not be required to repay such outstanding
principal, interest or additional amounts if and to the extent that this Note
has been converted by Holder, at Holder’s sole option, into shares of the
Company's Common Stock as permitted under Section 7; and provided further,
that the Holder unilaterally shall have the right to extend the Maturity Date by
one (1) year (the “Extended Maturity Date”), upon written notice of such
extension given by Holder to Company on or prior to the Maturity Date; and in
the event of such extension, the Note shall be deemed for all purposes to have
been issued originally with a two-year period of maturity.

     

    2.    Application of Payments. All
payments received by Holder with respect to the indebtedness evidenced hereby
shall be applied: (i) first to Additional Sums (as hereinafter defined) and to
any other non-interest charges and costs provided for in this Note; (ii) next,
to accrued but unpaid interest at the Default Interest Rate, if and to the
extent applicable; (iii) next, to accrued but unpaid interest at the Stated
Interest Rate; and (iv) finally, to the unpaid principal balance outstanding
hereunder from time to time.

     

    3.    Prepayments. Payments of
principal hereof may be made at any time, or from time to time, in whole or in
part, prior to the Maturity Date (or the Extended Maturity Date, as applicable),
without penalty, provided that all interest and other charges accrued through
the date of prepayment are also paid in full, in accordance with Section 2.
Notwithstanding any prepayment of principal hereof: (i) there shall be no change
to the Maturity Date (or, if applicable, to the Extended Maturity Date) or to
the amount of payments due hereunder unless Holder, in its sole and absolute
discretion, agrees in writing to such change; and (ii) no terms and conditions
of this Note shall be changed or affected in any manner whatsoever; and (iii)
the Company's obligations hereunder shall continue in effect, and this Note
shall remain outstanding, unless and until this Note is converted into shares of
the Company's Common Stock as permitted under Section 7, or until
the principal balance outstanding hereunder, together with all accrued interest
and other amounts payable hereunder, are paid in full, upon which, Holder shall
deliver to the Company the original executed copy of this Note, marked "PAID" in
bold lettering in a conspicuous location on the first page and on the signature
page hereof.

     

    4.    Events of Default;
Acceleration. The occurrence of any one or more of the following events
shall constitute an "Event of Default" hereunder, and upon any such Event of
Default, the entire principal balance outstanding hereunder, together with all
accrued interest and other amounts payable hereunder, at the election of Holder,
shall become immediately due and payable, without any notice to the Company, and
without presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived by the Company:

     

    (a)          Nonpayment
of principal, interest or other amounts when the same become due and payable
hereunder, if the Company does not cure such failure to pay within ten (10) days
after the date such payment is due;

     

    (b)          The
dissolution, winding-up or termination of the existence of the Company or the
sale or disposition of substantially all of the assets of the Company’s
business;

     

    (c)          The
making by the Company of an assignment for the benefit of its
creditors;

     

    (d)          The
appointment of (or application for appointment of) a receiver for the Company,
or the involuntary filing against or voluntary filing by the Company of a
petition or application for relief under federal bankruptcy law or under any
similar federal or state law, which is not stayed or dismissed within 90 days of
filing, or the issuance of any writ of garnishment, execution or attachment for
service with respect to the Company or any property of the Company;
or

     

    (e)          Any
other material breach by the Company of the terms and conditions of this
Note.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    5.    Additional Sums. The Company
agrees to pay an effective, contracted for rate of interest equal to the rate of
interest resulting from all interest payable as provided in this Note plus the
additional rate of interest resulting from the “Additional Sums” as defined in
the next sentence. All fees, charges, goods, things in action and any other sums
or things of value, other than the interest resulting from the Stated Interest
Rate and the Default Interest Rate, as
applicable, paid or payable by the Company (collectively, the "Additional Sums")
pursuant to this Note, that may be deemed to constitute interest for the purpose
of any applicable laws that may limit the maximum amount of interest to be
charged by a lender, shall be payable by the Company as, and shall be deemed
actually to be, additional interest; and for such purposes only, the agreed upon
and "contracted for rate of interest" payable under this Note shall be deemed
increased by the rate of interest resulting from the imposition of the
Additional Sums. The Company understands and believes that this transaction
complies with all applicable laws of the State of Arizona; however, if any
interest or other charges in connection with this Note are ever held by a court
of competent jurisdiction to have exceeded the maximum amount of interest
permitted by law, then the Company agrees that: (i) the amount of interest or
charges payable pursuant under this Note shall be reduced to the maximum amount
permitted by law; and (ii) any excess amount previously collected from the
Company in connection with this Note that exceeded the maximum amount permitted
by law shall be credited against the principal balance then outstanding
hereunder.

     

    6.      
    Waivers. Except as set forth
in this Note, to the extent permitted by applicable law, the Company waives and
agrees not to assert demand, diligence, grace, presentment for payment, protest,
or notice of nonpayment, nonperformance, extension, dishonor, maturity, protest,
acceleration or default. No failure to accelerate the indebtedness evidenced
hereby upon a default hereunder, no acceptance of a past-due installment, and no
other indulgence granted from time to time by Holder, shall be construed as a
novation of this Note or as a waiver of such right of acceleration or of the
right of Holder thereafter to insist upon strict compliance with the terms of
this Note or to prevent the exercise of such right of acceleration or any other
right granted hereunder or by applicable law. Holder may extend the time for
payment of, or renew, this Note; and any such extension, renewal, release or
other indulgence shall not alter or diminish the liability of the Company or any
other person or entity who is or may become liable on this Note except to the
extent expressly set forth in a writing executed by Holder and evidencing or
constituting such extension, renewal, release or other indulgence. No delay or
failure of Holder in exercising any right hereunder shall affect such right,
neither shall any single or partial exercise of any right preclude further
exercise thereof.

     

    7.       
   Optional Conversion of All or Part of the Note into Common
Stock of the Company.

     

    (a)          Conversion Option of the
Holder. The Holder may, at its option (the “Conversion Option”), convert
all or any lesser amount of the unpaid principal amount of this Note plus all
accrued but unpaid interest and Additional Sums outstanding hereunder into
shares of the Company's common stock, par value $.001 per share (the "Common
Stock"), at the conversion price ("Conversion Price") defined below. The right
of conversion described in this Section 7(a) shall be
exercisable by the Holder upon presentation by the Holder of written notice to
the Company, along with the surrender of this Note to the Company, in exchange
for the number of shares of Common Stock into which this Note is exchanged. The
option arising under this Section 7(a) shall
terminate only upon the Maturity Date or, if applicable, the Extended Maturity
Date.

     

    (b)          Conversion Price. Upon any
exercise by the Holder of the Conversion Option described in Section 7(a), the
outstanding principal amount of this Note, plus accrued and unpaid interest
thereon, plus all unpaid Additional Sums, shall be converted into shares of the
Company's Common Stock at the rate of Thirty-Five Cents (US $0.35) per share
(the "Conversion Price"), subject to adjustment as hereinafter
provided.

     

    (c)          Adjustment Based Upon Stock
Dividends, Combination of Shares or Recapitalization. In the event that
the Company, at any time prior to the termination of the Conversion Option: (i)
pays a stock dividend; (ii) subdivides its outstanding shares of Common Stock
into a greater number of shares, (iii) combines its outstanding shares of Common
Stock into a smaller number of shares, or (iv) issues by reclassification of its
shares of Common Stock any other special capital stock of the Company, the
Holder, upon surrender of this Note for conversion, shall be entitled to receive
the number of shares of Common Stock or other capital stock of the Company that
the Holder would have owned or would have been entitled to receive after the
occurrence of any of the events described above had this Note been converted
into the Common Stock immediately prior to such event.

     

    (d)          Adjustment Based Upon Merger or
Consolidation. In case of any consolidation or merger to which the
Company is a party (other than a merger in which the Company is the surviving
entity and that does not result in any reclassification of or change in the
outstanding Common Stock of the Company), or in case of any sale or conveyance
to another person of the property of the Company as an entirety or substantially
as an entirety, the Holder
shall have the right to convert this Note into the kind and amount of securities
and property receivable upon such consolidation, merger, sale or conveyance by a
holder of the number of shares of Common Stock into which such Note would have
been convertible immediately prior thereto.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (e)          Corporate Status of Shares to be
Issued. All shares of the Company's Common Stock that are issued upon the
conversion of this Note shall, upon issuance, be fully paid and
non-assessable.

     

    (f)          Issuance of Stock Certificate.
Upon any conversion of this Note, the Company promptly shall issue to the Holder
a certificate or certificates representing the number of shares of its Common
Stock to which the conversion relates.

     

    (g)          Status of Holder of Note. This
Note shall not entitle the Holder to any voting rights or other rights as a
stockholder of the Company or to any rights whatsoever except the rights herein
expressed, and no dividends shall be payable or accrue in respect of this Note
or the shares issuable upon the conversion hereof unless and until this Note is
converted. Upon any conversion of this Note, the Holder shall, to the extent
permitted by law, be deemed to be the holder of record of the shares of Common
Stock issuable upon such conversion, notwithstanding that the stock transfer
books of the Company may be closed or that the certificates representing such
shares of Common Stock may not yet actually have been delivered.

     

    (h)          Reserve of Shares. The Company
shall reserve at all times out of its authorized shares of Common Stock a number
of shares sufficient to enable it to comply with its obligation to issue shares
of Common Stock upon the conversion of this Note.

     

    (i)       
    Status
Under Securities Laws.

     

    (i)           Restricted Securities. This
Note is, and the shares of Common Stock issuable upon conversion hereof shall
be, "restricted securities" within the meaning of SEC Rule 144 promulgated under
the Securities Act of 1933 (the "1933 Act"). Holder acknowledges and agrees that
it is acquiring this Note and, upon conversion, the shares of Common Stock,
without a view to the public distribution or resale of the Note or such shares
in violation of applicable federal or state securities laws.

     

    (ii)           No Registration. This Note has
not been, and the shares of Common Stock issuable upon conversion hereof will
not be, registered under the 1933 Act or under the securities laws of any other
jurisdiction; and therefore, Holder must be able to hold the Note or the shares
indefinitely without any transfer, sale or other disposition, unless they are
subsequently registered under the 1933 Act and under the securities laws of
other applicable jurisdictions or, in the opinion of counsel to the Company,
registration is not required under such Act or laws as the result of an
available exemption from registration.

     

    (iii)          Legend. There shall be
endorsed on the certificates evidencing any shares issued upon the conversion of
this Note a legend substantially to the following effect:

     

    "THE
SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED; AND AS A RESULT, SUCH SHARES ARE 'RESTRICTED
SECURITIES' AS DEFINED BY SEC RULE 144 PROMULGATED UNDER THAT ACT. THE SHARES
MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT REGISTERING THE SHARES UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR, IN LIEU THEREOF, WITHOUT AN OPINION OF COUNSEL FOR THIS
COMPANY TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED UNDER THAT ACT. WITHOUT
LIMITING THE FOREGOING, THE SHARES MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE
DISPOSED OF WITHOUT AN OPINION OF COUNSEL FOR THE COMPANY TO THE EFFECT THAT
SUCH TRANSFER, SALE OR OTHER DISPOSITION DOES NOT VIOLATE
THE SECURITIES LAWS OF ANY JURISDICTION OR THE RULES AND REGULATIONS
THEREUNDER."

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    8.          
General Provisions.

     

    (a)          Severability. If any provision
hereof is invalid or unenforceable, the other provisions hereof shall remain in
full force and effect and shall be construed so as to effectuate the other
provisions hereof.

     

    (b)          Amendment. This Note may not
be changed, modified or terminated, neither shall any provision of this Note be
waived, except by an agreement in writing signed by the party to be
charged.

     

    (c)          Binding Nature of Note;
Assignment. The provisions of this Note shall be binding upon the Holder
and the Company, and shall inure to the benefit of and bind the respective
successors and assigns of the Holder and the Company. Neither the Company nor
the Holder may assign or transfer this Note or assign or delegate any of his or
its respective rights or obligations hereunder without the prior written consent
of the other party in each instance.

     

    (d)          Waiver of Jury Trial; Enforcement
Costs and Expenses to be Borne by the Company. The Company and the Holder
hereby mutually and irrevocably waive their right to a jury trial of any dispute
that may arise out of or in connection with this Note, the parties instead
irrevocably agreeing that any such dispute shall be resolved by a court of
competent jurisdiction sitting without a jury. The Company agrees to pay all
costs of enforcement of this Note, including, without limitation, attorneys’
fees and other costs incurred by Holder in addressing its claims against the
Company hereunder, regardless of whether a lawsuit is actually filed; and the
Company agrees to pay all of Holder’s costs of preparation for suit, and
proceeding with a suit, plus any and all additional attorney and other fees and
costs Holder may incur in any proceeding under any bankruptcy or other similar
federal or state law in connection with the obligations evidenced hereby. In the
event of any court proceeding, court costs and attorneys’ fees shall be set by
the court and not by a jury and shall be included in any judgment obtained by
the Holder.

     

    (e)          Time of Essence. Time is of
the essence of this Note and each and every provision hereof.

     

    (f)      
    Controlling Law; Jurisdiction;
Venue. This Note and all questions relating to its validity,
interpretation, performance, and enforcement shall be governed by and construed
in accordance with the laws of the State of Arizona, notwithstanding any
conflicts-of-law provisions to the contrary. Any suit, action or proceeding
against the Company with respect to this Note may be brought in the Superior
Court of Arizona located in Maricopa County, Arizona, or in the United States
District Court for the District of Arizona, as Holder, in Holder’s sole
discretion, may elect; and the Company hereby submits to the non-exclusive
jurisdiction of such courts for the purpose of any such suit, action or
proceeding. The Company hereby irrevocably waives any objections the Company may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Note that may be brought in any such courts,
and the Company further irrevocably waives any claim that any such suit, action
or proceeding brought in any such court has been brought in an inconvenient
forum.

     

    (g)          Notices. All notices,
requests, demands and other communications required or permitted under this Note
shall be in writing and shall be deemed to have been duly given, made, and
received: (i) when delivered against receipt; (ii) upon receipt of a facsimile
transmission; (iii) one day following the day of deposit thereof, with delivery
charges prepaid, with a national overnight delivery service; or (iv) three
business days following the day of deposit thereof, with the United States
Postal Service, by regular first class, certified or registered mail, return
receipt requested, postage prepaid, in each case addressed as set forth in the
first paragraph of this Note. Either party may alter the address to which
communications or copies are to be sent by giving notice of such change of
address in conformity with the provisions of this Section 8(g) for the
giving of notice.

     

    (h)          Section Headings. The Section
headings in this Note are for convenience only; they form no part of this Note
and shall not affect its interpretation.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (i)          
Number of Days. In
computing the number of days for purposes of this Note, all days shall be
counted, including Saturdays, Sundays and holidays; provided, however, that if
the final day of any time period falls on a Saturday, Sunday or holiday, then
the final day shall be deemed to be the next day that is not a Saturday, Sunday
or holiday.

     

    (j) 
         Loss or Destruction of Note.
Upon receipt by the Company of evidence satisfactory to it of the loss, theft,
destruction or mutilation of this Note, or in the case of loss, theft or
destruction of an indemnity satisfactory to it, and in the case of mutilation,
upon surrender and cancellation of this Note, the Company shall execute and
deliver a new Note of like tenor and date.

     

    (k)          Construction. The Company and
Holder participated in the drafting of this Note, and this Note was reviewed by
the respective legal counsel for the Company and Holder. Any rule of
construction to the effect that ambiguities are to be resolved against the
drafting party shall not be applied to the interpretation of this Note. The
language of this Note shall be construed as a whole according to its fair
meaning. The word “include(s)” means “include(s), without limitation,” and the
word “including” means “including, without limitation.” No inference in favor
of, or against, the Company or Holder shall be drawn from the fact that one
party has drafted any portion hereof.

     

    (l)      
    First
Priority Security Interest Granted in All the Company’s Assets to Secure
Performance. The
performance of the Company’s obligations under this Note and under the Loan
Agreement have been secured by a first priority security interest granted by the
Company to the Holder, as more particularly specified in that certain Security
Agreement between the Company and Holder, made and delivered of even date with
the Loan Agreement.

     

    IN WITNESS WHEREOF, the
Company and the Holder have caused this Note to be duly executed, delivered and
accepted as of the Effective Date.

     

    
      
        
          
            
              
                
                  
                    
                      	 	Company	 
	 	 	 
	 	SKYE INTERNATIONAL,
      INC., a 	 
	 	
                              Nevada
      corporation

                            	 
	 	 	 
	 	 	 	 
	
                               

                            	
                              By:
      

                            	/s/  Mark D.
      Chester	 
	 	 	 	 
	 	Name:	Mark
      D. Chester	 
	 	 	 	 
	 	Its:	Chairman	 
	 	 	 	 

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          	ACCEPTED AND
      AGREED:	 
	 	 
	 	 	 
	
                  By:
      

                	/s/  Perry D.
      Logan	 
	 	
                  Perry
      D. Logan

                	 
	 	 	 
	By:	/s/  Rose
      Logan	 
	 	
                  Rose
      Logan

                	 

        

         

         

        
          6exhibit_10-16.htm

    
      

    

    EXHIBIT
10.16

    
 

    
      
        PERSONAL SERVICES
AGREEMENT

        

        

        

        THIS
AGREEMENT made effective as of the 15th day of
May, 2008.

        

        BETWEEN:

        

        SKYE INTERNATIONAL INC., a
public company duly incorporated pursuant to the laws of the State of Nevada,
with principal offices in the City of Scottsdale, in the State of Arizona,
together with all of its wholly owned subsidiaries from time to time operating
(hereinafter, collectively referred to as the “Corporation”).

        

        - and
-

        

        PERRY D. LOGAN., an individual
currently residing in the City of Las Vegas, NV (the “Executive”).

        

        

        

        

        RECITALS

        

        WHEREAS, the Corporation is
engaged in the business of designing, manufacturing and marketing a line of
tankless water heaters, as well as a suite of household and consumer lifestyle
related appliances and other devices;

        

        AND, WHEREAS, the Corporation
wishes to contract for the services of the Executive to serve as the President
and Chief Executive Officer of the Corporation, and the Executive wishes to be
contracted by the Corporation as its President and Chief Executive
Officer.

        

        NOW, THEREFORE, THIS AGREEMENT
WITNESSETH, that inconsideration of the premises and covenants and
agreements hereinafter contained it is agreed by and between the parties as
follows:

        

        

        ARTICLE 1 -
CONTRACT

        

        1.1           The
Executive will, during the Term (as defined below) or any renewals thereof,
perform all of the Duties (as defined below) as the Corporation by action of its
Board of Directors shall, from time to time, reasonably assign to the
Executive.

        

        

        ARTICLE 2-
TERM

        

        2.1           Term:    Subject to
the prior termination of this Agreement as provided herein, the contracting of
the Executive by the Corporation shall commence on May 15, 2008, and end on
December 31, 2008 (the “Term’).

        
          
             

          

          
            1

            
              

            

          

          
             

          

        

        2.2           Renewal:    Subject to
the prior termination of this Agreement as herein provided, upon the expiration
of the Term, this Agreement shall automatically renew for successive 12 month
periods. For greater certainty, it is understood that Term shall refer to the
original term of this Agreement as defined in Article 2.1 herein and to any
renewal thereof.

        

        

        ARTICLE 3 -
DUTIES

        

        3.1           Duties:    The Executive
shall, during the Term of this Agreement, perform all of the duties and
responsibilities (the “Duties’) as the Corporation shall from time to time
reasonably assign to the Executive and, without limiting the generality of the
foregoing, the Duties shall include those duties set forth in Schedule “A”
attached hereto, as from time to time reasonably amended by the Board of
Directors of the Corporation. During the Term of this Agreement, the Executive
shall devote a reasonable portion of the Executive’s time and attention to the
Duties, and shall do all in the Executives power to promote, develop and extend
the business of the Corporation and its subsidiaries and related
corporations.

        

        3.2           Accounting:    The Executive
shall truly and faithfully account for and deliver to the Corporation all money,
securities and things of value belonging to the Corporation which the Executive
may from time to time receive for, from or on account of the
Corporation.

        

        

        ARTICLE 4 -
REMUNERATION

        

        4.1           Compensation:    The gross
annual cash compensation of the Executive shall be One Hundred Twenty Thousand
($120,000) US Dollars (hereinafter, the “Compensation”). All Compensation
payable hereunder shall be payable on a monthly basis in arrears. For greater
certainty, the Executive acknowledges and confirms that such Compensation
methodology is inclusive of any annual bonus or other customary emoluments,
perquisites or payments other than those specifically granted under the terms of
this Agreement.

        

        4.2           Alternate
Payment:    The Executive agrees that up to 100% of
such Compensation payable in accordance with Article 4.1 above may, at the
discretion of the Executive, be paid in the form of common stock of the
Corporation representing a value at the time of payment equal to at least the
value of such unpaid (cash) Compensation (“Stock Based Payment”).  For
greater certainty, any securities issued to the Executive in connection with the
Stock Based Payment shall be priced at the lowest closing bid price of the
Corporation’s securities over the ten (10) trading days prior to the issuance of
securities under such Stock Based Payment mechanism.

        

        4.2           Health Plan:    The Executive
shall also be entitled to participate, only if such plans exist, in
the Corporation’s group benefit plan, medical and family medical plan, stock
savings plan, and disability insurance plan. It is understood that all costs
associated with such plans will be borne by the Corporation.

        

        
          
             

          

          
            2

            
              

            

          

          
             

          

        

        4.3           Expense
Reimbursement:    The Executive will be reimbursed for
reasonable business expenses, within such policy guidelines as may be
established from time to time, by the Corporation’s Board of Directors, provided
that such business expenses are incurred in the ordinary course of performing
the Duties.

        

        4.4           Vehicle:    During the
Term hereof the Corporation shall provide the Executive with reimbursement of
vehicle operating and insurance costs.  For greater certainty the
Executive shall NOT be entitled to any other automobile allowance.

        

        4.5           Options:    The Executive
shall be entitled, upon the execution hereof, to receive 500,000 common share
purchase warrants exercisable at $0.50 for a period of 5 years from the date of
issuance thereof.  Such options shall bear piggy-back registration
rights in connection with the filing by the Corporation of any registration
statement with the US Securities and Exchange Commission.

        

        

        ARTICLE 5 - BENEFITS AND
HOLIDAYS

        

        5.1           The
Executive shall be entitled to four (4) weeks paid holidays during each year of
the Term. Holidays must be taken at times that are satisfactory to the
Corporation, acting reasonably, and must be taken within the year to which the
holiday relates and holidays not taken shall be deemed to have been taken and no
other compensation shall be payable by the Corporation. For greater clarity it
is understood that for the purpose of determining the number of holidays for
which the Executive is entitled, each year of the Term will commence on January
1st and end on December 31st.

        

        ARTICLE
6-CONFIDENTIALITY

        

        6.1           Non-Disclosure:    The Executive
shall not, either during the continuance of the Executive’s contract hereunder
or at any time after termination of the Executive as consultant to the
Corporation, for any reason whatsoever (except in the proper course of carrying
out the Duties, or otherwise required by law), divulge to any person whomsoever,
and shall use the Executive’s best endeavors to prevent the publication or
disclosure of:

        

        
          	
                	
                  6.1.1

                	
                  Any
      confidential information concerning the business or finances of the
      Corporation or any other corporation, person or entity for which he is
      directed to perform services hereunder or of any of their dealings,
      transactions or affairs, including, without limitation, personal and
      family matters which may come to the Executive’s knowledge during or in
      the course of the Executive’s contract:
or

                

        

        

        
          	
                	
                  6.1.2

                	
                  Any
      trade secrets, know-how, inventions, technology, designs, methods,
      formula, processes, copyrights, trademarks, trade mark applications,
      patents, patent applications or any other proprietary information and/or
      data of the Corporation (herein collectively called “Intellectual
      Property”).

                

        

        
          
             

          

          
            3

            
              

            

          

          
             

          

        

        ARTICLE 7 - INVENTIONS AND
PATENTS

        

        7.1           If
the Executive contributes to any invention whether patentable, patented, or not
(an “Invention”), any intellectual property, or any improvement or modification
to any Invention or intellectual property then the Executive’s contribution
thereto and the Invention, intellectual property or improvement thereof shall,
without the payment of any additional compensation in any form whatsoever,
become the exclusive property of the Corporation. The Executive shall execute
any and all agreements, assurances or assignments that the Corporation may
require and the Executive shall fully cooperate with the Corporation in the
filing and prosecution of any patent applications. The Executive hereby
reiterates and confirms the application of this Article to all such Inventions,
intellectual property and improvements that have been made during the tenancy of
that certain consulting position with the Corporation’s
subsidiaries.

        

        

        ARTICLE 8 - RESTRICTIVE
COVENANT

        

        8.1           Period of
Application:    The Executive will not at any time during
the Term, or during any renewal thereof, and for a period of two (2) years
following the expiration or termination of the Executive’s contract for whatever
cause, compete in the United States, directly or indirectly, with any of the
businesses carried on by the Corporation, its subsidiaries or
affiliates:

        

        
          	
                	
                  8.1.1 

                	
                  As
      a principal, partner employee;

                

        

        

        
          	
                	
                  8.1.2

                	
                  As
      an officer, director or similar official of any incorporated or
      unincorporated entity engaged in any such competing business (the “Other
      Entity”);

                

        

        

        
          	
                	
                  8.1.3 

                	
                  As
      a consultant or advisor to any Other
Entity;

                

        

        

        
          	
                	
                  8.1.4

                	
                  As
      a holder of shares or debt instrument of any kind of any Other
      Entity;

                

        

        

        
          	
                	
                  8.1.5

                	
                  In
      any relationship described in subsections 81.1 through 8.1.4 of this
      section with any incorporated or unincorporated entity which provides
      services for or necessarily incidental to the business of an Other
      Entity:

                

        

        

        without
the prior express written consent of the Corporation, which consent may be
withheld by the Corporation for any reason or for no reason.

        

        8.2           Independent Legal
Advice:    Notwithstanding the provisions of Article
8.3 below, the Executive acknowledges and agrees that the time frames for which
the aforesaid covenant shall apply have been considered by the Executive who has
taken independent legal advice with respect thereto and the restraint and
restriction of and on the future activities of the Executive are reasonable in
the circumstances.

        

        8.3           Amendment of Time
Periods:    The parties agree that if the time frames
set out in this Article are found to unenforceable by a court of competent
jurisdiction, the time frames will be amended to the time frames as established
by a court of competent jurisdiction.

        
          
             

          

          
            4

            
              

            

          

          
             

          

        

        8.4           Injunctive
Relief:    The Executive acknowledges that any
breach of Articles 6, 7 & 8 will cause irreparable harm to the Corporation,
for which the Corporation cannot be compensated by damages. The Executive agrees
that in the event of a breach of the covenant contained in Articles 6, 7, &
8, the Corporation shall not be restricted to seeking damages only, but shall be
entitled to injunctive and other equitable relief.

        

        

        ARTICLE 9 - TERMINATION OF
CONTRACT

        

        9.1           For Cause
Termination:    The Corporation may terminate this
Agreement at any time for cause. The term “for cause” shall include any one or
more of the following:

        

        
          	
                	
                  9.1.1

                	
                  A
      significant and continuing breach or failure or a continual breaching or
      failing to observe any of the provisions
herein;

                

        

        

        
          	
                	
                  9.1.2

                	
                  An
      act of dishonesty fundamentally detrimental to the well-being of the
      Corporation;

                

        

        

        
          	
                	
                  9.1.3 

                	
                  Any
      act of gross negligence relating to completing the
  Duties;

                

        

        

        
          	
                	
                  9.1.4

                	
                  The
      commission of a felony offence for which the Executive is convicted, which
      significantly impairs the Executive’s ability to perform the Duties and
      responsibilities hereunder or which materially adversely affects the
      reputation enjoyed by the Corporation;
or

                

        

        

        
          	
                	
                  9.1.5

                	
                  The
      failure to comply with reasonable instructions, orders and directions of
      the Board of Directors of the Corporation in so far as such instructions,
      orders and directions are not inconsistent with the Duties, or are, in the
      reasonable opinion of the
Executive:

                

        

        

        
          	
                	
                  9.1.5.1 

                	
                  In
      any way demeaning or likely to result in diminution of the value of the
      Executives services in the future.

                

        

        

        
          	
                	
                  9.1.5.2 

                	
                  Likely
      to result in the conduct of an illegal
act.

                

        

        

        
          	
                	
                  9.1.5.3 

                	
                  Inconsistent
      with any court order or other governmental order or
    directive.

                

        

        

        
          	
                	
                  9.1.5.4 

                	
                  Inconsistent
      with any shareholders’ resolution passed at any duly convened meeting of
      shareholders.

                

        

        

        provided
that, with respect to each 9.1.1 through 9.1.5 above, the Executive shall be
notified within five (5) business days from the date of any such alleged breach
and provided a reasonable opportunity to respond thereto.  For greater
certainty, the Corporation shall not be entitled to utilize any such provision
to terminate this Agreement in respect of any action by the Executive that was:
(i) not specifically brought to the attention of the Executive within such five
(5) day period (ii) specifically required to be performed by direction of the
board, directly or indirectly (iii) this dissemination of information required
to be reported in the normal course with the Securities and Exchange Commission
or any other competent governmental entity having jurisdiction over the
Executive or the Corporation, or (iv) honestly and faithfully performed by the
Executive for the benefit of the Corporation.

        
          
             

          

          
            5

            
              

            

          

          
             

          

        

        9.2           Disability During
Term:    In the event that the Executive becomes
physically or mentally disabled and is unable to perform the Duties for a period
of three (3) months, as confirmed by a doctor’s certificate, the Corporation
shall be entitled to terminate this Agreement without further compensation upon
sixty (60) days written notice to the Executive. In the case of the death of the
Executive, all obligations of the Corporation under this Agreement shall cease
immediately; provided that, this provision shall not affect any right, benefit
or entitlement accruing to the Executive and/or his estate under any of the
Corporation’s benefit plans or stock option agreements which arise as a result
of the Executive’s prior performance hereunder or his death.

        

        9.3           Termination by
Executive:    The Executive may terminate this
Agreement, and the contract created herein, by giving at least Ninety (90) days
prior written notice of such intention to the Corporation. After the expiry of
such notice, all obligations, except for the obligations of the Executive under
Articles 6, 7 and 8 hereof, which shall continue as provided in those Articles,
of the Corporation and the Executive under this Agreement shall
cease.

        

        

        ARTICLE 10 - OTHER
AGREEMENTS IN RESPECT OF TERMINATION

        

        
          10.1        
Consequence of
Termination:    In the
event of the termination of this Agreement for cause or otherwise
howsoever:

        

        

        
          	
                	
                  10.1.1

                	
                  The
      Executive shall resign as a director and/or officer of the Corporation or
      any subsidiary or related corporation and the Executive hereby appoints
      the Corporation as its attorney in fact for the purpose of executing any
      and all such documents to give effect to the foregoing;
  and

                

        

        

        
          	
                	
                  10.1.2

                	
                  The
      Executive hereby authorizes the Corporation and any subsidiary or related
      corporation to set off against and deduct from any and all amounts owing
      to the Executive by way of salary, allowances, accrued leave, long service
      leave, reimbursements or any other emoluments or benefits owing to the
      Executive by the Corporation and any subsidiary or related corporation,
      any reasonable amounts owed by the Executive to the Corporation or any
      subsidiary or related corporation.

                

        

        

        10.2          Binding Effect after
Termination:    Notwithstanding any termination of this
Agreement for any reason whatsoever, whether with or without cause, all of the
provisions of Articles 6, 7 and 8 and any other provisions of this Agreement
necessary to give efficacy and effect thereto shall continue in full force and
effect following the termination of this Agreement.

        

        

        ARTICLE 11 -
GENERAL

        

        11.1          Partial Invalidity &
Severability:    Each article, paragraph, clause,
sub-clause and provision of this Agreement shall be severable from each other
and if for any reason any article, paragraph, clause, sub-clause or provision is
invalid or unenforceable, such invalidity or unenforceability shall not
prejudice or in any way affect the validity or enforceability of any other
article, paragraph, clause, sub-clause or provision. This Agreement and each
article, paragraph, clause, sub-clause and provision hereof shall be read and
construed so as to give thereto the full
effect thereof subject only to any contrary provision of the law to the extent
that where this Agreement or any article, paragraph, clause, sub- clause or
provision hereof would but for the provisions of this paragraph have been read
and construed as being void or ineffective, it shall nevertheless be a valid
agreement, article, paragraph, clause, sub-clause or provision as the case may
be to the full extent to which it is not contrary to any provision of the
law.

         

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

        

        11.2          Monies:    All
references to monies in this Agreement shall be deemed to mean lawful monies of
the United States of America.

        

        11.3          Entire
Agreement:    This Agreement, the Schedules and any
addenda attached hereto or referenced herein, constitute the complete and
exclusive statement of the agreement of the Parties with respect to the subject
matter of this Agreement, and replace and supersede all prior agreements and
negotiations by and between the Parties. Each Party acknowledges and agrees that
no agreements, representations, warranties or collateral promises or inducements
have been made by any Party to this Agreement except as expressly set forth
herein or in the Schedules and any addenda attached hereto or referenced herein,
and that it has not relied upon any other agreement or document, or any verbal
statement or act in executing this Agreement.

        

        11.4          Binding Effect:    This
Agreement shall be binding on the Parties and their successors and assigns;
provided, however, that neither Party shall assign, delegate or transfer, in
whole or in part, this Agreement or any of its rights or obligations arising
hereunder without the prior written consent of the other Party.  Any
purported assignment without such consent shall be null and void.

        

        11.5          Waiver:    The failure
of either party at any time to require strict performance by the other party of
any provision hereof shall in no way affect the full right to require such
performance at any time thereafter. Neither shall the waiver by either party of
a breach of any provision hereof be taken or held to be a waiver of any
succeeding breach of such provision or as a waiver of the provision
itself.

        

        11.6          Captions:    The captions contained in this
Agreement are inserted only as a matter of convenience or reference and in no
way define, limit, extend or describe the scope of this Agreement or the intent
of any of its provisions.

        

        11.7          Construction:    Since both Parties have engaged in
the drafting of this Agreement, no presumption of construction against any Party
shall apply.

        

        11.8          Section
References:    All references to Sections or Schedules
shall be deemed to be references to Sections of this Agreement and Schedules
attached to this Agreement, except to the extent that any such reference
specifically refers to another document.  All references to Sections
shall be deemed to also refer to all subsections of such Sections, if
any.

        

        11.9          Governing Law and
Jurisdiction:    This
Agreement and the interpretation of its terms shall be governed by the laws of
the State of Arizona, without application of conflicts of law principles. The
Parties hereby agree that the State and Federal Courts with jurisdiction over
disputes arising in Maricopa County shall have exclusive jurisdiction over any
litigation hereunder.

        

        
          
             

          

          
            7

            
              

            

          

          
             

          

        

        11.10        Assignment:    This
Agreement shall ensure to the benefit of and be binding upon the parties hereto,
their heirs, administrators, successors and legal representatives. This
Agreement may be assigned by the Corporation but may not be assigned by the
Executive.

        

        11.11        Notice:    All notices
to be given by either party hereto shall be delivered or sent by telegram,
facsimile or cable to the following address or such other address as may be
notified by either party:

        

        
          	
                	
                  11.11.1 

                	
                  If
      to the Corporation to:

                   

                  Skye
      International, Inc.

                  7701
      E. Gray Rd.. Suite 4

                  Scottsdale,
      AZ  85260

                  Attention: General
      Counsel

                

        

        

         

        
          	
                	
                  11.11.2 

                	
                  If
      to the Executive to:

                   

                  Perry
      D. Logan

                  P.O.
      Box 35080

                  Las
      Vegas, NV  89133

                

        

        

        11.12        Dispute
Resolution

        

        
          	
                   
      

                	
                  11.12.1

                	
                  The
      Parties shall use good faith efforts to resolve disputes, within twenty
      (20) business days of notice of such dispute.  Such efforts
      shall include escalation of such dispute to the corporate officer level of
      each Party.

                

        

        

        
          	
                   
      

                	
                  11.12.2

                	
                  If
      the Parties cannot resolve any such dispute within said twenty (20)
      business day period, the matter shall be submitted to arbitration for
      resolution.  Arbitration will be initiated by filing a demand at
      the Phoenix, Arizona regional office of the American Arbitration
      Association (“AAA”).

                

        

        

        
          	
                   
      

                	
                  11.12.3

                	
                  Disputes
      will be heard and determined by a panel of three arbitrators. Each Party
      will appoint one arbitrator to serve on the panel. A neutral arbitrator
      will be appointed by the AAA.

                

        

        

        
          	
                   
      

                	
                  11.12.4

                	
                  Within
      fifteen (15) business days following the selection of the arbitrator, the
      Parties shall present their claims to the arbitrator for determination.
      Within ten (10) business days of the presentation of the claims of the
      Parties to the arbitrator, the arbitrator shall issue a written opinion.
      To the extent the matters in dispute are provided for in whole or in part
      in this Agreement, the arbitrator shall be bound to follow such provisions
      to the extent applicable. In the absence of fraud, gross misconduct or an
      error in law appearing on the face of the determination, order or award
      issued by the arbitrator, the written decision of the arbitrator shall be
      final and binding upon the Parties. The prevailing Party in the
      arbitration proceeding shall be entitled to recover its reasonable
      attorneys' fees, costs and expenses including reasonable travel-related
      expenses.

                

        

        
          
             

          

          
            8

            
              

            

          

          
             

          

        

        11.13        Counterparts:    This
Agreement may be executed by facsimile and delivered in one or more
counterparts, each of which shall be deemed to be an original and all of which,
taken together, shall be deemed to be one agreement.

        

        

        IN WITNESS WHEREOF, the
parties have duly executed this Agreement in the City of Scottsdale, AZ on the
date first written above.

      

      
      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  	 	
                                                           

                                                        	 
      	 
	 	 
	SKYE
      INTERNATIONAL, INC.	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	 
      	 
	 
      	 
      	 
	 	/s/ 
      "Mark D. Chester"	 
	Per:	Mark
      D. Chester, Chairman	 
	 	 	 
	 	 	 
	 	 	 

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

        

      

       

      
        	
                SIGNED, SEALED AND
      DELIVERED in
      the                  )

                presence of:      Cynthia
      Isit                                               
      )

                                                                                                               
      )

                                                                                                               
      )

                                                                                                               
      )

                                                                                                               
      )

                                                                                                               
      )

                                              
      “Cynthia
      Isit”                                       
      )

                Witness

              	
                “Perry D. Logan”
      

                  
      

                Perry D.
      Logan

              

      

       

      
        

        
          
             

          

          
            9

            
              

            

          

          
             

          

        

        Schedule
A

        

        

        

        

        Duties

        (as taken
from the SKYE Organizational Manual)

         

        
          
            	
                    President
      & Chief Executive Officer

                    (Chair
      – Executive Management Team)

                  

          

        

         

        
          
            	Reports to:  	Board of
      Directors
	 	 
	Direct
      Reports:	Executive V.P and
      all Sr. V.P
	 	 
	Liaison:	
                    Chairman
      of Board

                    Chairman
      of all Board Committees

                  
	 	 
	Job
      Description:	Board of
      Directors
	 	 
	Review &
      Comp:	Corporate Governance
      Committee
	 	 
	Accountability:	Board of
      Directors

          

           

          
            
              

            

          

        

        
          This
position is the leader of the Executive Management Team and is the final
responsible party for all business day-to-day planning and operations of the
company.

        

        

        The
specific duties include, but are not limited to:

        

        
          	
                  1.

                	
                  Together
      with the Executive Management Team, directs overall business and
      organizational policies; develops, recommends and implements through
      subordinates; recommends annual and long-term company policies and goals
      to Board of Directors.

                

        

        

        
          	
                  2.

                	
                  Responsible
      for overall company financial, organizational and operational planning
      activities and growth.

                

        

        

        
          	
                  3.

                	
                  Chair
      of the Executive Management Team, responsible for approving budgetary and
      operational objectives, overseeing and reporting progress to the Board of
      Directors.

                

        

        

        
          	
                  4.

                	
                  Monitoring
      performance relative to established objectives and systematically monitor
      and evaluate operating results.

                

        

        

        
          	
                  5.

                	
                  Presents,
      together with the CFO, Balance sheet, operating and capital expenditure
      budgets to Board of Directors for
approval.

                

        

        
          
             

          

          
            A-1

            
              

            

          

          
             

          

        

         

        
          	
                  6.

                	
                  Formulates
      the Corporation’s near term and long-range strategic plans and submits
      them to the Board of Directors for
approval.

                

        

        

        
          	
                  7.

                	
                  Directs
      executives in matters concerning the development, production, promotion
      and sales of the Corporation’s
products.

                

        

        

        
          	
                  8.

                	
                  Promoting
      positive relations with customers, suppliers and the general
      public.

                

        

        

        
          	
                  9.

                	
                  Directs
      the establishment of fair and appropriate policies for human resource
      management.

                

        

        

        
          	
                  10. 

                	
                  Responsible
      for the overall strategic management of the
  Corporation.

                

        

        

        
          	
                  11. 

                	
                  Responsible
      for the daily affairs of the
Corporation.

                

        

        

        
          	
                  12.

                	
                  Responsible
      for ensuring operational compliance with policies and procedures adopted
      by the Board of Directors.

                

        

        

        
          	
                  13.

                	
                  Primary
      responsible party for ensuring systemic adherence to Compliance and Ethics
      mandate.

                

        

        

        
          	
                  13.

                	
                  Together
      with Board members and the CFO is responsible for all capital fundraising
      requirements of the company.

                

        

        

        
          	
                  14.

                	
                  Directs,
      oversees and manages all external contacts with parties involved with
      funding the capital requirements of the
company.

                

        

        

        
          	
                  15.

                	
                  Responsible
      for making all public representations in connection with investor
      relations activities.

                

        

        

        
          	
                  16.

                	
                  Together
      with the Chairman is responsible for all presentations of material to the
      public.

                

        

        

        
          	
                  17. 

                	
                  Any
      other duty reasonably assigned by the Board of
  Directors

                

        

      A-2

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