Document:

exv10w30

 

Exhibit 10.30

REPRESENTATION AGREEMENT

     This Agreement (this “Agreement”), dated as of October 1, 2004, between Save the World Air,
Inc., a Nevada corporation (the “Company”), and Dr. Gurminder Singh, an individual (the
“Representative”).

RECITALS

     WHEREAS, the Company is in the business, among other things, of supplying the goods described
on Exhibit A attached hereto (the “Goods”).

     WHEREAS, the Representative has represented to the Company that it has the capability and
interest to promote the sale of the Goods in the Republic of India (the “Territory”).

     WHEREAS, the Company and the Representative desire to enter into a relationship whereby the
Representative will act as the representative of the Company for the Goods in the Territory on the
terms and conditions set forth herein.

AGREEMENT

     NOW THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

     1. Appointment of Representative. The Company hereby appoints the Representative, and
the Representative hereby accepts appointment, as the Company’s representative in the Territory to
solicit orders for, and generate contracts with respect to, the Goods from all potential customers
in the Territory and to undertake such further actions in connection with the sale of and
contracting for the Goods as are described in this Agreement. The Representative shall not solicit
or accept any orders for, or generate contracts with respect to, the Goods outside of the
Territory.

     2. Term; Exclusivity.

          (a) This Agreement shall continue in full force for a period of two years unless earlier
terminated in accordance with this Section 2 or Section 13. The obligations of the Representative
upon the termination of this Agreement for any reason are described in Section 14.

          (b) The Representative’s representation of the Company in the Territory shall be on an
exclusive basis until March 31, 2005.

          (c) Provided that the Representative fulfills its obligations set forth in Section 4(c), the
Representative’s representation of the Company shall continue on an exclusive basis until October
1, 2005.

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               (i) If the Company enters into any contracts with respect to the Goods generated by the
Representative on or prior to October 1, 2005, the Representative’s representation of the Company
shall continue on an exclusive basis until October 1, 2006.

               (ii) If the Company does not enter into any contracts with respect to the Goods generated by
the Representative on or prior to October 1, 2005, the Representative’s representation of the
Company shall continue on a non-exclusive basis until October 1, 2006.

          (d) If the Representative fails to fulfill its obligations set forth in Section 4(c), or if
the Company does not enter into any contracts with respect to the Goods generated by the
Representative by October 1, 2006, this Agreement shall terminate immediately.

          (e) This Agreement shall be automatically renewed for successive one-year terms unless either
party provides written notice of its election not to renew this Agreement at least 60 days prior to
the expiration of the then current term, in which case the Agreement shall terminate upon
expiration of such term.

     3. Scope of Goods. At its sole discretion, upon 14 days prior written notice to the
Representative, the Company may, from time to time:

	 	(a)  	delete from Exhibit A any item described therein, the production of which has
been discontinued or limited by the manufacturer thereof;
	 
	 	(b)  	substitute for any item described on Exhibit A the description of a similar
item; and
	 
	 	(c)  	add to Exhibit A the description of any new item that is similar in kind to any
item already described therein.

     4. Selling Effort of Representative. The Representative shall make its best efforts
to solicit orders for and generate contracts with respect to Goods in the Territory. In
furtherance of such efforts, the Representative covenants that:

	 	(a)  	it shall train its sales staff in the characteristics of the Goods, and shall
make them available for training, if necessary, in accordance with Section 6;
	 
	 	(b)  	it shall not deal, directly or indirectly, in any merchandise identical or
similar to the Goods, other than the Goods; and
	 
	 	(c)  	on or prior to March 31, 2005, it shall conduct formal meetings with and
introduce the Company and the Goods to senior decision makers within the following
agencies, organizations and companies in the Territory:

	 	(i)  	Prime Minister’s Office, Republic of India
	 
	 	(ii)  	Automotive Research Association of India
	 
	 	(iii)  	Bajaj Auto Ltd.

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	 	(iv)  	Tata Enterprises
	 
	 	(v)  	City of Delhi
	 
	 	(vi)  	Dr. Ashok Khosla (Development Alternatives Group)

     5. Sales Policy.

          (a) The Representative agrees that the Company, in its sole discretion, has the absolute right
to establish, and change from time to time, all or any of the terms governing the sale of the
Goods. Such terms shall include, but shall not be limited to, those concerning the price of the
Goods, method and place of delivery and warranties thereon. The terms of sale of the Goods shall
be as set forth in materials provided to the Representative by the Company from time to time. The
Company, in its sole discretion, shall have the right to amend such terms from time to time by
written notice to the Representative.

          (b) The Representative shall make no representation or statement concerning the
characteristics of the Goods that is not in conformity with the descriptions thereof that may from
time to time be provided to the Representative by the Company. In the event that the
Representative is uncertain concerning any term of sale or characteristics of the Goods, it shall
immediately notify the Company thereof and shall be instructed by the Company on the matter in
question.

     6. Training, Advertising Material, Etc.

          (a) The Company shall, at its expense and to the extent that it deems reasonably necessary,
provide training and advice to the Representative and its agents and employees in connection with
the characteristics of the Goods, the soliciting of orders therefor and similar matters.

          (b) The Company shall, at its expense, provide the Representative with a reasonable number of
the Company’s brochures, order forms, advertising materials, samples and other information
reasonably necessary for the Representative’s performance hereunder. The Company shall not be
required to provide materials in any language other than English.

          (c) The Representative shall, at its expense, undertake reasonably to advertise the Goods by
such means as it deems desirable (which may include, by way of illustration, trade journals,
newspapers and participation in trade shows); provided that the Representative shall furnish in
writing to the Company, no later than 21 days prior to initiating any form of advertising, a full
written description thereof, and shall then follow any revisions thereto (which may include
complete rejection) made in writing by the Company.

          (d) The Representative may, in all appropriate places, identify itself as the authorized
representative of the Company.

     7. Handling and Acceptance of Orders and Payment Therefor.

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          (a) The Representative shall solicit orders for the Goods using the order form furnished for
such purpose by the Company. Immediately upon obtaining an order from a customer, the
Representative shall forward the order form thereof to the Company, retaining a copy for its own
records. Each such order shall be subject to the acceptance or rejection of the Company in its
sole discretion, and it is understood that the Company shall be under no obligation to accept any
order. The Company shall notify the customer directly, with a copy to the Representative, of
whether the order is accepted or rejected.

          (b) When the Representative has obtained an order from a new customer, it shall, at its
expense, check the credit rating of the customer by reasonable means and include a report thereon
with the order form it forwards to the Company.

          (c) Payment for all accepted orders shall be made directly from the customer to the Company.
Invoicing, collection and all other matters connected with the sale of the Goods to the customer
shall be the responsibility solely of the Company.

     8. Compensation of the Representative.

          (a) Royalties. In full consideration of all rights granted herein and all services to
be performed hereunder, the Company will pay to the Representative royalties from revenues derived
from contracts with customers located in the Territory generated by the Representative.

               (i) The Representative shall be paid a royalty equal to 2% of Gross Receipts from revenues
derived from contracts with customers located in the Territory generated by the Representative.

               (ii) “Gross Receipts” shall mean 100% of all sums received by or credited to the Company and
its affiliates from unrelated third parties from revenues derived from contracts with customers
located in the Territory generated by the Representative. Gross Receipts shall be deemed to
exclude sums received by the Company and/or its affiliates which represent sales taxes, value added
taxes, excise taxes, and similar taxes which are collected by the Company and its affiliates as
required by any requisite taxing authorities of any government, but limited to the extent that such
taxes are paid and not returned or credited to the Company or an affiliate. Gross Receipts shall
also be deemed to exclude foreign currencies to the extent any foreign licensing society or
organization collects or withholds any portion thereof on behalf of or for the benefit of the
Company. With respect to foreign currencies received by the Company and its affiliates in
connection herewith, it is agreed and understood that such sums received shall be included in Gross
Receipts hereunder, whether or not such sums have been received in U.S. dollars in the United
States, and whether or not such sums which are capable of being remitted to the United States have
yet been remitted. Gross Receipts are not subject to retroactive adjustments for returns, refunds,
credits, settlements, rebates and discounts.

               (iii) Royalties shall be payable pursuant to this Section 8(a) during the period beginning on
the date of this Agreement and ending on the date occurring ten years thereafter.

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               (iv) All amounts payable to the Representative pursuant to this Section 8(a) shall be paid by
the Company no later than 30 days after the end of each calendar quarter in respect of the
applicable Gross Receipts amounts actually received by the Company in such quarter. A statement of
account prepared by the Company shall accompany each such payment to the Representative.

          (b) Warrants. Subject to compliance with applicable securities laws, the Company
shall issue to the Representative warrants to purchase an aggregate of 50,000 shares of common
stock of the Company on the date hereof. Such warrants shall have a term of five years and have an
exercise price of $1.00 per share. In addition, subject to compliance with applicable securities
laws, the Company shall issue to the Representative additional warrants to purchase an aggregate of
50,000 shares of common stock of the Company on March 31, 2005, provided that the Representative
has fulfilled its obligations set forth in Section 4(c). Such additional warrants shall have a
term of five years and have an exercise price of $___*___per share.

     *Weighted average of shares price from January 1, 2005 through March 31, 2005 discounted by
30% .

          (c) Advances for Travel Expenses. The Company shall advance the sum of $10,000 in
U.S. dollars to the Representative to be used by the Representative for travel expenses to the
Territory. Such amounts advanced shall be credited against royalties payable to the Representative
pursuant to Section 8(a).

     9. Orders Directly to the Company and Payments Directly to the
Representative.

          (a) If an order for the Goods from a customer located in the Territory is made directly from
such customer to the Company, the Company shall notify the Representative thereof. If such order
is accepted by the Company, any revenue amounts actually received in respect thereof by the Company
for delivery in the Territory shall be subject to a royalty payable to the Representative in
accordance with Section 8.

          (b) In the event that any customer for the Goods whose order has been accepted by the Company
makes payment therefore to the Representative rather than to the Company, the Representative shall
immediately forward such payment to the Company.

     10. Reports. Every three months commencing with the date hereof, the Representative
shall make a report to the Company concerning (i) its activities under this Agreement from the date
of the last such report to the date of the report in question and (ii) the proposed activities of
the Representative hereunder for the following three months. In addition, the Representative shall
notify the Company at once concerning any major development in the Territory with respect to the
sale of the Goods.

     11. Nondisclosure. Without the express prior written consent of the Company, the
Representative shall not reveal to any third party any information of the Company that is
identified by the Company as being of a confidential or proprietary nature (the “Confidential
Information”). Confidential Information may be used by the Representative only with respect to
performance of its obligations under this Agreement, and only by those employees of the
Representative who have a need to know such information for the purposes related to this

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Agreement. The Representative shall protect the Confidential Information by using the same degree
of care (but no less than a reasonable degree of care) to prevent the unauthorized use,
dissemination or publication of such Confidential Information that the Company uses. The
Representative’s obligation with respect to any Confidential Information under this Section 11
shall be for a period of 10 years after the date the Confidential Information is received by the
Representative.

     12. No Servicing by Representative. It is understood by the Representative that it is
not authorized by this Agreement to perform servicing of any kind upon any Goods in the Territory
or elsewhere, absent the express prior written approval of the Company.

     13. Termination.

          (a) The Company shall have the right to terminate this Agreement effective immediately by
written notice to the Representative if:

               (i) the Representative engages in any conduct which threatens injury to the good name and
reputation of the Company;

               (ii) the Company has reasonable grounds to believe that the Representative will be unable,
whether because of financial difficulty or otherwise, to fulfill satisfactorily its obligations
under this Agreement;

               (iii) the Representative fails to conduct its business in accordance with all applicable laws
or regulations.

          (b) Either party to this Agreement may terminate this Agreement effectively immediately upon
written notice if the other party becomes insolvent, discontinues its business, has a receiver
appointed for it, any petition is filed by or against it in accordance with the bankruptcy laws, or
any assignment is made by it for the benefit of creditors.

          (c) In the event either party to this Agreement shall fail to perform or fulfill any of its
responsibilities as set forth herein, the other party may notify such defaulting party of the
matter in breach and if such matter is not cured within 30 days after receipt of such notice the
complaining party may by further written notice immediately terminate this Agreement.

          (d) Either party may terminate this Agreement in its sole discretion by giving to the other
party no less than 90 days written notice thereof.

     14. Effect of Termination. If this Agreement terminates for any reason whatsoever,
the Representative shall no longer be the sales representative of the Company for the Goods in the
Territory, effective on the date of such termination. The Representative shall immediately upon
termination return to the Company all Confidential Information within its possession, including any
documents of a confidential or proprietary nature concerning the Goods which it has in its
possession and all forms, brochures and samples pertaining to the Goods. The Representative shall
cease to identify itself as an authorized sales representative of the Company

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and shall give notice to all publications that list the Representative as such that such listing is
to be discontinued as soon as possible. Any and all amounts due to the Representative pursuant to
this Agreement in respect of orders that were placed prior to the date of termination shall be paid
to the Representative pursuant to the manner described in Section 8. The Representative
understands that upon termination of this Agreement, the Company may, in its discretion, notify
customers and potential customers in the Territory that the Representative is longer the
representative of the Company in the Territory, and the Representative agrees that any orders for
the Goods that it receives after such termination shall be immediately forwarded by it to the
Company.

     15. Applicable Law. This Agreement shall be construed in accordance with, and shall
be governed by, the laws of the State of California.

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

     17. Amendments. The provisions of this Agreement may be waived, altered, amended or
repealed in whole or in part only on the written consent of all the parties to this Agreement.

     18. Notice. All notices, demands, and other communications under this Agreement shall
be in writing and shall be deemed to have been duly given (i) on the date of delivery if delivered
in person to the party to whom such notice is given, (ii) on the date such notice is posted by
mail, postage prepaid, registered mail, properly addressed to the party receiving such notice, or
(iii) upon the date of telex transmission, if by telex. Any notices hereunder shall be sent to the
following addresses and telex numbers or such other addresses or telex numbers as may be designated
by a party in writing from time to time in accordance with the procedure stated herein:

If to the Company:

Save the World Air, Inc.

5125 Lankershim Boulevard

North Hollywood, CA 91601

Facsimile: 818-487-8003

Attention: Eugene Eichler

If to the Representative:

Dr. Gurminder Singh

                                        

                                        

Facsimile:                     

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     19. Divisibility. If any of the terms, provisions, covenants or conditions of this
Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the
remainder of the provisions shall remain in full effect and shall in no way be affected, impaired
or invalidated.

     20. Final Agreement of the Parties. This Agreement supersedes and terminates any and
all prior agreements or contracts, written or oral, entered into between the parties hereto with
respect to the subject matter hereof.

     21. Assignment. This Agreement may not be assigned by the Representative, in whole or
in part, to any other party without the express written consent of the Company.

     22. Headings. The Section headings in this Agreement are for convenience of reference
only and shall have no bearing on the enforcement or interpretation of this Agreement.

     23. Waiver. No waiver, forbearance or failure by either party of its rights to
enforce any provision of this Agreement shall constitute a waiver or estoppel of such party’s right
to enforce such provision thereafter or to enforce any other provision of this Agreement.

     24. Jurisdiction. The parties hereby unconditionally and irrevocably agree that the
state and federal courts of California and any California or federal court competent to hear
appeals therefrom shall have the exclusive jurisdiction over any and all actions arising out of or
in relation to this Agreement, or for the breach hereof.

     25. Relationship of the Parties. The Representative is not an employee of the Company
for any purpose whatsoever, but is an independent contractor. The parties, by this Agreement, have
not entered into any form of joint venture or any other mutual enterprise, other than the rendering
by the Representative of the services for the Company in accordance with the terms hereof. All
expenses and disbursements, including, but not limited to, those for travel and maintenance,
entertainment, office, clerical, and general selling expenses, that may be incurred by the
Representative in connection with this Agreement shall be born wholly and completely by the
Representative, and the Company shall not be in any way responsible or liable therefore. The
Representative does not have, nor shall it hold itself out as having, any right, power, or
authority to create any contract or obligation, either expressed or implied, on behalf, in the name
of, or binding upon the Company. Any and all agents and employees of the Representative shall be
at the Representative’s own risk, expense and supervision, and the agents and employees of the
Representative shall not have any claim against the Company for salaries, commissions, items of
cost, or any other form of compensation. The Representative shall indemnify and hold the Company
harmless from any cost and liability caused by any unauthorized act of the Representative, its
agents or employees.

[remainder of page intentionally left blank]

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     IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first written
above.

	 	 	 	 	 	 	 
	 	 	“Company”	 	 
	 
	 	 	 	 	 	 
	 	 	SAVE THE WORLD AIR, INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Eugene E. Eichler	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Eugene E. Eichler	 	 
	

	 	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	“Representative”	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Gurminder Singh	 	 
	

	 	 	 	 
	 	 	Dr. Gurminder Singh Sept. 28th,2004

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Exhibit A

Description of the Goods

	1.  	ZEFS devices
	 
	2.  	CAT-MATE devices

A-1exv10w31

 

Exhibit 10.31

ADVISORY SERVICES AGREEMENT

     This Advisory Services Agreement (this “Agreement”) is made and entered into as of this
___day of August, 2002, by and between Save The World Air, Inc., a Nevada corporation (the
“Company”) and Bobby Unser, Jr. (“Advisor”), with reference to the following facts.

RECITALS

	 	A.  	The Company has certain rights to a proprietary technology (the “Technology”)
for a product known as the Zero Emissions Fuel Saving device (“ZEFS Device”) that is
intended to be used on motor vehicles to reduce pollution and improve fuel efficiency.
The Company desires to further develop the Technology and market and sell the ZEFS
Device.

	 	B.  	Advisor is well known to the public and associated with automobile racing and
products. The Company desires to engage Advisor, and Advisor desires to serve the
Company, in an advisory capacity on and subject to the terms of this Agreement.

     THEREFORE, the Company and Advisor hereby agree as follows:

     Section 1. Scope of Services Provided.

     1.1 Advisor shall provide advice, counsel and support to the Company’s Board of Directors and
management on an as-needed basis, by telephone or in person, in matters relating to the Company’s
business, including product development, marketing and promotion, and other matters concerning the
ZEFS Device as the Company may reasonably request from time to time during the term of this
Agreement. Advisor also agrees to serve on the “Advisory Board” which shall report to the Company’s
Board of Directors.

     1.2 Advisor agrees to appear at not less than two events per year during the term of this
Agreement subject to Advisor’s prior commitments, schedule and availability, and at such other
times as may be mutually agreed, to assist and support the Company in promoting the ZEFS Device.

     Section 2. Compensation; Expenses.

     2.1 As soon as practicable following the parties execution of this Agreement, the Company
shall issue to Advisor 50,000 shares of the Company’s common stock, par value $.001 per share (the
“Stock”). The Stock shall be deemed to have a value of $.001 per share. Advisor shall execute and
deliver to the Company a subscription agreement substantially in the form attached hereto in
Annex A, the provisions of which are incorporated herein by this reference.

     2.2 The Company shall reimburse Advisor for all reasonable and necessary out-of-pocket
expenses incurred by Advisor in performing the services requested by the Company hereunder,
including without limitation travel, meals, accommodations and phone charges, subject to Advisor’s
presentation to the Company of receipts for such charges, in accordance with the Company’s
practices and policies as adopted or approved from time to time.

     Section 3. Non-Disclosure Obligations.

     Advisor acknowledges that the Technology is proprietary and agrees to execute a standard
confidentiality agreement substantially in the form attached hereto in Annex B, the
provisions of which are incorporated herein by this reference.

 

 

     Section 4. Use of Advisor’s Name and Likeness.

     4.1 The Company will not use Advisor’s name or likeness in any advertising or
marketing/promotional material without Advisor’s prior written approval or consent, which shall not
be unreasonably withheld. Except as may be expressly agreed to by the parties hereto in writing,
the Company shall acquire no ownership or rights in or to Advisor’s name or likeness that by its
use or incorporation in any company advertising or promotional materials other than the right to
use, duplicate and distribute such name or likeness as and to the extent to which Advisor may have
previously consented.

     4.2 The Company may identify Advisor as member of the Company’s Advisory Board and may make
such disclosures as may be necessary or advisable to comply with federal securities laws, including
without limitation disclosures in filings with the Securities and Exchange Commission or press
releases as to: (1) the terms of this Agreement; (2) the appointment of Advisor to the Company’s
Advisory Board; and (3) Advisor’s Stock ownership.

Section 5. Miscellaneous Provisions.

     5.1 Term. The initial term of this Agreement is one year from the effective date of
this Agreement. This Agreement shall renew automatically from year to year unless terminated by
either party by giving the other not less than thirty (30) days’ prior written notice of its
election to terminate this Agreement.

     5.2 Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original, and all such counterparts when taken together shall be
deemed to be but one and the same instrument.

     5.3 Governing Law. This Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of California.

     IN WITNESS WHEREOF, the parties hereto have executed or caused their respective duly
authorized officer to execute this Agreement as of the date first set forth above.

	 	 	 	 	 	 	 
	ADVISOR
	 	SAVE THE WORLD AIR, INC.
	 
	By:

	 	/s/ Bobby Unser Jr.
	 	By:
	 	/s/ Eugene E. Eichler
	

	 	 
	 	 	 	 
	

	 	Bobby Unser, Jr.
	 	Name:
	 	Eugene E. Eichler
	

	 	 	 	 	 	 
	

	 	 	 	Title:
	 	Chief Operating Officer
	

	 	 	 	 	 	 

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ANNEX A

SUBSCRIPTION AGREEMENT

SAVE THE WORLD AIR, INC.

The undersigned hereby proposes to acquire Common Stock of Save the World Air, Inc., a Nevada
corporation (the “Company”).

The undersigned understands that the shares of Common Stock are being offered and sold without
registration under the Securities Act of 1933, as amended (the “Act”), in reliance upon the private
placement exemption contained in Sections 4(2) and 4(6) of the Act, and Regulation D promulgated
thereunder, and that such reliance is based on the undersigned’s representations set forth below.

To induce the Company to accept this subscription and issue and deliver the Common Stock, the
undersigned agrees, warrants, and represents as follows:

	1.  	This offer is irrevocable until both parties execution and delivery of that
certain Advisory
Service Agreement to which this subscription is a part and is subject to acceptance
or rejection by
The Company in its sole discretion.
	 
	2.  	The undersigned is acquiring the Common Stock for investment for his or her own
account, and not with a view toward distribution thereof, and with no present
intention of dividing his or her interest with others or reselling or otherwise
disposing of all or any portion of the Common Stock. The undersigned has not
offered or sold a participation in this purchase of Common Stock, and will not
offer or sell the Common Stock or interest therein or otherwise, in violation of
the Act. The Undersigned further acknowledges that he or she does not have in mind
any sale of the Common Stock currently or after the passage of a fixed or
determinable period of time or upon the occurrence or non-occurrence of any
predetermined events or consequence; and that he or she has no present or
contemplated agreement, undertaking, arrangement, obligation, indebtedness or
commitment providing for or which is likely to compel a disposition of the Common
Stock and is not aware of any circumstances presently in existence that are likely
in the future to prompt a disposition of the Common Stock.
	 
	3.  	The undersigned acknowledges that the shares of Common Stock have been offered
to him or her in direct communication between himself or herself and the Company or
through registered broker-dealers and not through any advertisement of any kind.
	 
	4.  	The undersigned acknowledges that he or she has read or has had access to all of
the Company’s filings with the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as amended, that the Company has not timely filed
its annual report of Form 10-KSB nor does it have current audited financial
statements, that the offer and sale of Common Stock to the undersigned were based
on the representations and warranties of the undersigned in this Subscription
Agreement, and acknowledges that he or she has been encouraged to seek his or her
own legal and financial counsel to assist him or her in evaluating this investment.
The undersigned acknowledges that the Company has given him or her and all of his
or her counselors access to all information relating to the Company’s business that
they or any one of them has requested. The undersigned acknowledges that he or she
has sufficient knowledge, financial and business experience concerning the affairs
and conditions of the Company so that he or she can make a reasoned decision as to
this investment in the Company and is capable of evaluating the merits and risks of
this investment. Based on the foregoing, the undersigned hereby agrees to indemnify
the Company thereof and to hold each of such persons and entities, and the
officers, directors and employees thereof harmless against all liability, costs or
expenses (including reasonable attorneys’ fees) arising by reason of or in
connection with any misrepresentation or any breach of such warranties of the
undersigned, or arising as a result of the sale or distribution of the Common Stock
by the undersigned in violation of the Act, the Securities Exchange Act of 1934, as
amended, or any other applicable law, either federal or state. This subscription
and the representations and warranties contained herein shall be binding upon the
heirs, legal representatives, successors and assigns of the undersigned.

 

 

	5.  	(a) The undersigned is aware of the restrictions of transferability of the
Common Stock and further understands and acknowledges that any certificates
evidencing the Common Stock will bear the following legends, to which such
interests will be subject:

THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR QUALIFIED FOR SALE UNDER ANY STATE SECURITIES LAWS
(COLLECTIVELY, “SECURITIES LAWS”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED
UNLESS REGISTERED OR QUALIFIED FOR SALE UNDER ALL APPLICABLE SECURITIES LAWS OR UNLESS, IN
THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER, IN FORM AND SUBSTANCE SATISFACTORY TO THE
ISSUER, ANY SUCH OFFER, SALE OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION OR
QUALIFICATION REQUIREMENTS OF SUCH SECURITIES LAWS.

(b) The undersigned understands that following the purchase of the Common
Stock, the Common Stock may only be disposed of pursuant to either (i) an
effective registration statement under the Act, or (ii) an exemption from the
registration requirements of the Securities Act of 1933.

(c) The Company has neither filed such a registration statement with the SEC or
any state authorities nor agreed to do so, nor contemplates doing so in the
future for this offering of Common Stock, and in the absence of such a
registration statement or exemption, the undersigned may have to hold the Common
Stock indefinitely and may be unable to liquidate them in case of an emergency.

(d) The undersigned acknowledges that the Company is not obligated and does not
propose to furnish the undersigned with information necessary to enable it to be
able to make sales under Rule 144 of the Securities Act of 1933.

	6.  	The undersigned represents that he or she is a resident of
U.S.A. and makes the following representation:

I, THE UNDERSIGNED, REPRESENT THAT I HAVE A PRE-EXISTING PERSONAL OR BUSINESS RELATIONSHIP
WITH THE COMPANY, ANY OFFICER, DIRECTOR OR CONTROLLING PERSON THEREOF OR HAVE, THROUGH
MYSELF OR THROUGH MY UNAFFILIATED PROFESSIONAL ADVISER, THE BUSINESS OR FINANCIAL EXPERIENCE
TO PROTECT MY INTERESTS IN CONNECTION WITH MY SUBSCRIPTION HERETO.

FURTHER, I AM PURCHASING THE COMMON STOCK OFFERED HEREBY FOR INVESTMENT AND NOT WITH A VIEW
TOWARD DISTRIBUTION THEREOF.

	7.  	This Subscription Agreement has been delivered in, and shall be
construed in accordance with the laws of the State of California. Subject
to the provisions of the paragraph immediately following, any action in
connection with this Subscription Agreement shall be brought in the
appropriate state or federal court in and for the County of Los Angeles,
State of California, which shall have exclusive jurisdiction over such
action.

	 	 	 	 	 
	 	Executed as of this

day of August  , 2002

 	 
	 	By:  	/s/ Bobby Unser Jr.
 	 
	 	 	Bobby Unser Jr. 	 
	 	 	 	 
	 

• * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

• * * * * * * * * * * * * * * * * *

The above and foregoing Subscription accepted this 5 day of September 2002.

	 	 	 	 	 
	 	Save the World Air, Inc.

a Nevada corporation

 	 
	 	By:  	Eugene E. Eichler
 	 
	 	Its:  Chief Operating Officer      	 
	 	 	 	 
	 

 

 

ANNEX B

Confidentiality Agreement

August  , 2002

STRICTLY PRIVATE AND CONFIDENTIAL

BY FACSIMILE

Save the World Air, Inc.

29229 Canwood Street, Suite 206

Agoura Hills, California 91301

Attention: Eugene E. Eichler, Chief Financial Officer

Gentlemen:

In connection with the advisory services that you have asked me to provide to Save the World Air,
Inc. (the “Company”) as a member of its Advisory Board, I may be provided and/or have access to
technical and other information concerning the Company and its proprietary technology (the
“Technology”) for a product known as the Zero Pollution-Fuel Saving Device (“ZERO Device”) that can
be used on motor vehicles to reduce pollution and improve fuel efficiency. As a condition to my
being furnished such information, I agree to treat any information concerning the Technology
(including without limitation all specifications, designs, processes, concepts, ideas, strategic
plans, product development plans, research and development, information about the Company’s
operations, finances, reports, interpretations, forecasts and records, and any analyses,
compilations, studies or other documents, whether prepared by the Company or others, that contain
or reflect such information (collectively, the “Confidential Information”) in accordance with the
provisions of this letter. The term “Confidential Information” does not include information which
(a) was or becomes generally available to the public other than as a result of a disclosure by me
or my agents or advisors, (b) was or becomes available to me on a non-confidential basis from a
source other than the Company or its advisors provided that such source is not bound by a
confidentiality agreement with the Company, (c) was within my possession prior to its being
furnished to me by or on behalf of the Company, provided that the source of such information was
not bound by a confidentiality agreement with the Company in respect thereof.

By this letter, I agree that the Confidential Information will be used solely for the purposes in
furtherance of my advisory services to the Company and will not be used by me in any way
detrimental to the Company. I also agree that the Confidential Information will be kept
confidential by me, my agents and employees; provided, however, that (i) any such information may
be disclosed to my agents and employees who need to know such information for the purpose of
providing the advisory services (it being understood that such persons shall be informed by me of
the confidential nature of such information and shall be directed by me to treat such information
confidentially and shall assume the same obligations as I under this letter) and (ii) any
disclosure of such information may be made to which the Company consents in writing. I shall be
responsible for any breach of this letter by my agents or employees.

In the event I am required by legal process to disclose any of the Confidential Information, I
shall provide you with prompt notice of such requirement so that you may seek a protective order or
other appropriate remedy or waive compliance with the provisions of this letter. In the event that
a protective order or other remedy is obtained, I shall use all reasonable efforts to assure that
all Confidential Information disclosed will be covered by such order or other remedy. Whether such
protective order or other remedy is obtained or the Company waives compliance with the provisions
of this letter, I will disclose only that portion of the Confidential Information that I am legally
required to disclose. This letter shall be governed by laws of California, U.S.A, in all respects.

* * *

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	/s/ Bobby Unser , Jr.
 	 
	 	Bobby Unser , Jr.

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