Document:

Exhibit 10.1

Exhibit 10.1

EXECUTION COPY

 

 

EMPLOYMENT AGREEMENT

By and Between

GRUBB & ELLIS COMPANY

and

THOMAS D’ARCY

 

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	1. EMPLOYMENT
	 	 	1	 
	 
	 	 	 	 
	2. DUTIES AND RESPONSIBILITIES OF EXECUTIVE
	 	 	1	 
	 
	 	 	 	 
	3. COMPENSATION
	 	 	2	 
	 
	 	 	 	 
	4. BENEFITS
	 	 	6	 
	 
	 	 	 	 
	5. TERM OF EMPLOYMENT; PREFERRED EQUITY INVESTMENT
	 	 	6	 
	 
	 	 	 	 
	6. CONFIDENTIALITY
	 	 	7	 
	 
	 	 	 	 
	7. RESTRICTIVE COVENANTS
	 	 	8	 
	 
	 	 	 	 
	8. TERMINATION
	 	 	10	 
	 
	 	 	 	 
	9. VIOLATION OF OTHER AGREEMENTS
	 	 	15	 
	 
	 	 	 	 
	10. SPECIFIC PERFORMANCE; DAMAGES
	 	 	15	 
	 
	 	 	 	 
	11. NOTICES
	 	 	15	 
	 
	 	 	 	 
	12. WAIVERS
	 	 	16	 
	 
	 	 	 	 
	13. PRESERVATION OF INTENT
	 	 	17	 
	 
	 	 	 	 
	14. ENTIRE AGREEMENT
	 	 	17	 
	 
	 	 	 	 
	15. INUREMENT; ASSIGNMENT
	 	 	17	 
	 
	 	 	 	 
	16. AMENDMENT
	 	 	17	 
	 
	 	 	 	 
	17. HEADINGS; CERTAIN DEFINITIONS
	 	 	17	 
	 
	 	 	 	 
	18. COUNTERPARTS
	 	 	18	 
	 
	 	 	 	 
	19. GOVERNING LAW; DISPUTES
	 	 	18	 

 

 

 

EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT (this “Agreement”) entered into as of November 4, 2009, by and
between GRUBB & ELLIS COMPANY, a Delaware corporation having an address at 1551 North Tustin
Avenue, Suite 300, Santa Ana, California 92705 (the “Company”), and THOMAS D’ARCY an
individual residing at [REDACTED] (“Executive”).

W I T N E S S E T H:

WHEREAS, commencing on the Effective Date (as that term is defined in Section 5(a)
below), the Company desires to employ Executive and Executive desires to provide his exclusive
services to the Company in connection with the Company’s business; and

WHEREAS, both parties desire to clarify and specify the rights and obligations which each have
with respect to the other in connection with Executive’s employment.

NOW, THEREFORE, in consideration of the agreements and covenants herein set forth, the parties
hereby agree as follows:

	 	1.	 	Employment

On the Effective Date, the Company hereby employs Executive as its Chief Executive Officer and
President, and Executive hereby accepts such exclusive employment as of the Effective Date and
agrees to render Executive’s full time services as an employee of the Company, all subject to and
on the terms and conditions herein set forth. Executive shall be deemed to be an employee at will,
subject to the terms of this Agreement.

	 	2.	 	Duties and Responsibilities of Executive

(a) On the Effective Date, Executive shall be employed as the Company’s Chief Executive
Officer and President, and Executive agrees to provide Executive’s full time services to the
Company, subject to the other provisions of this Section 2. Executive’s responsibilities
and duties shall be commensurate with those of a similarly situated chief executive officer of an
entity engaged in the business engaged, or proposed to be engaged, in by the Company. In the
performance of his duties, Executive shall report directly to the Board of Directors of the Company
(the “Board” or “Board of Directors”). In addition, upon the Effective Date,
Executive shall be appointed to serve on the Company’s Board of Directors as a Class C director
(“Class C Director”) until the 2010 annual meeting of stockholders at which the election of
Class C Directors is to be voted on by the Company’s stockholders, unless prior to the 2010 annual
meeting of stockholders the Company eliminates its staggered Board, in which event Executive’s
appointment to the Board of Directors shall be voted on at the next annual meeting of stockholders.
Further, for so long as this Agreement is in effect, Executive shall be a nominee for election to
the Company’s Board of Directors at each subsequent annual meeting of stockholders at which the
election of Class C Directors is to be voted on (or alternatively, if the Company eliminates its
staggered Board, at each subsequent annual meeting of stockholders at which the election of
directors is to be voted on). In addition, Executive agrees that upon the termination of
Executive’s employment with the Company at any time and for

 

 

 

any reason whatsoever, that immediately and simultaneously upon any such termination Executive
shall be deemed to have automatically and irrevocably resigned from the Company’s Board of
Directors, and the Board of Directors of and employment with any subsidiary or affiliate of the
Company; provided, however, that such termination and deemed resignation(s) shall not affect
Executive’s post-employment rights and benefits under this Agreement.

(b) Executive shall use diligent efforts to maintain and enhance the business and reputation
of the Company and shall perform such other duties commensurate with Executive’s position as may,
from time to time, be lawfully and reasonably designated to Executive by the Board. Executive’s
principal place of employment shall initially be the Santa Ana, California metropolitan area,
although Executive shall be readily available to travel as the reasonable needs of the Company
shall require. In addition, in the event that the Company moves its principal executive offices
during the “Term” (as defined in Section 5(a) below) to either the New York, New York or
Chicago, Illinois metropolitan area, subject to the provisions of Section 3(e) below, Executive
shall relocate to either such metropolitan area. Executive shall be domiciled within reasonable
proximity (i.e., the metropolitan area) of either Santa Ana, California, Chicago, Illinois or New
York, New York (depending upon in which city the Company’s principal executive offices are
situated), no later than August 1, 2010. Executive shall devote himself to the business and
affairs of the Company on a full-time basis; provided, however, that so long as
such activity does not materially interfere with Executive’s performance of his duties and
responsibilities hereunder, and is not contrary to the interests of the Company, Executive may (i)
serve on the board of directors (or similar governing body) of another company or entity that is
not, in the good faith judgment of the Board, materially competitive with any business conducted by
the Company, (ii) participate in civic, charitable or educational activities, and on behalf of
civic, charitable or educational organizations, and/or (iii) maintain, monitor and pursue personal
and family investments, including but not limited to real estate investments, provided that such
investments do not involve business activities or investments that, in the good faith judgment of
the Board, are not insubstantially competitive with any part of the business of the Company. In
connection with the foregoing, Executive shall be permitted to continue to serve as a non-executive
member (including the Chairman) of the board of directors of Inland Real Estate Corp.
(“Inland”), provided that the business of Inland does not, in the good faith judgment of
the Board, become competitive with the business of the Company; it being agreed by the Company
that, as currently constituted on the date hereof, the business of Inland is not competitive with
the business of the Company. In addition, Executive will not serve on any committees of the board
of directors of Inland; provided that, notwithstanding the foregoing, it is
acknowledged that Executive shall be permitted to continue to serve on the audit committee of the
board of directors of Inland (the “Inland Audit Committee”) for an interim period of up
until the next annual meeting of the stockholders of Inland or until such sooner time as he is
replaced on the Inland Audit Committee.

	 	3.	 	Compensation

(a) In consideration for Executive’s services to be performed under this Agreement and as
compensation therefor, Executive shall receive, in addition to all other benefits provided for in
this Agreement, a base salary (the “Base Salary”) at a rate of Six Hundred Fifty Thousand
Dollars ($650,000) per annum. All payments of Base Salary shall be subject to all applicable
withholdings and deductions, and shall be payable at least monthly, and otherwise in accordance
with the Company’s customary payroll practices. The Base Salary shall be subject to

 

2

 

annual review by the Compensation Committee of the Board (the “Compensation
Committee”) and, pursuant to such annual review, the Base Salary, as then currently in effect,
may be increased, but not decreased, at the discretion of the Compensation Committee, or by the
Board.

(b) In addition to the Base Salary, Executive shall be eligible to receive annual bonus
compensation (“Bonus Compensation”) as determined by the Board or the Compensation
Committee based upon performance targets established by the Board or Compensation Committee and
Executive. Commencing with the 2010 calendar year, for each calendar year during the Term, the
annual target for the Bonus Compensation is 200% of Executive’s Base Salary at the end of the
applicable calendar year. With respect to any partial calendar year during the Term hereof
subsequent to 2010, Executive’s Bonus Compensation shall be pro-rated based on the actual number of
days during such partial calendar year that Executive provided his services hereunder. The Bonus
Compensation payable with respect to the 2010 calendar year (but not subsequent calendar years)
shall be guaranteed, notwithstanding any subsequent or contrary decisions or determinations by the
Company, the Board or the Compensation Committee, and such bonus payments for calendar year 2010
shall be equal to One Million Three Hundred Thousand Dollars ($1,300,000), subject to all of the
other terms and conditions of this Agreement (the “Guaranteed Bonus”). There shall be no
Bonus Compensation with respect to the period commencing on the Effective Date and continuing up to
and through December 31, 2009.

All Bonus Compensation shall be payable in cash in accordance with the procedures established
from time to time by the Compensation Committee, subject to all applicable withholding and
deductions, and in accordance with the Company’s reasonable and customary payroll and bonus payment
practices. All Bonus Compensation with respect to any calendar year during the Employment Period
hereof shall be paid in the immediately following calendar year, but no later than March 15th of
such immediately following calendar year and at the same time that other senior-level executives of
the Company receive their bonus compensation.

(c) Commencing with respect to calendar year 2010, at the discretion of the Board of Directors
reasonably exercised in a manner consistent with the performance of the Company and the
compensation of other senior executives in the same industry and based upon performance targets
established by the Board or Compensation Committee and Executive, Executive shall be entitled to
participate in a performance-based long term incentive award plan, which shall consist of an annual
award payable either in cash, restricted shares of the Company’s common stock, par value $.01 per
share (the “Common Stock”), or stock options exercisable for shares of Common Stock (the
“Stock Options”), in each instance, as determined by the Board or the Compensation
Committee. The target for any such long-term incentive award (the “Long-Term Incentive
Award”) shall be One Million Two Hundred Thousand Dollars ($1,200,000) per year, and any
Long-Term Incentive Award shall be subject to ratable, annual vesting over three (3) years.
Subject to the provisions hereof, an initial Long-Term Incentive Award with respect to calendar
year 2010 shall be granted in the first quarter of 2011 and shall vest in equal annual tranches of
one-third (1/3) each commencing on December 31, 2011.

In the event that any Long-Term Incentive Award is payable in Common Stock or Stock Options,
the number of shares of Common Stock or the number of Stock Options (and the exercise price of such
Stock Options) payable with respect to each Long-Term Incentive Award shall

 

3

 

be determined by dividing (i) the dollar amount of the Long-Term Incentive Award granted by
the Board or the Compensation Committee, by (ii) the volume weighted average closing price
per share of the Company’s Common Stock on the exchange or market on which the Company’s shares of
common stock are publicly listed or quoted for trading during the fourth calendar quarter of the
calendar year with respect to which the Long Term Incentive Award is being granted.

(d) Subsequent to the Effective Date and within five (5) business days after Executive effects
the “Executive Equity Purchase” (as that term is defined in Section 5(b) below), Executive
shall receive from the Company a one-time cash payment as reimbursement for all of Executive’s
out-of-pocket transitory relocation expenses, including transitory housing and travel expenses for
six (6) months, in the amount of Thirty-five Thousand Dollars ($35,000) (the “Transition
Reimbursement”). The Transition Reimbursement, if any, shall be paid no later than March 15,
2010. In addition, Executive shall be entitled to reimbursement for expenses incurred, not in
excess of One Hundred Thousand Dollars ($100,000), in relocating to, or within reasonable proximity
of, Santa Ana, California, Chicago, Illinois or New York, New York (depending upon in which city
the Company’s principal executive offices are situated) by August 1, 2010 (the “Relocation
Allowance”). Subject to the applicable provisions of Section 4(b) below, the Relocation
Allowance shall be paid in a lump sum upon such relocation.

(e) In the event that during the term hereof Executive is required to relocate to either the
New York, New York or Chicago, Illinois metropolitan area because the Company moves its principal
executive offices to either such metropolitan area after Executive has previously relocated in
accordance with the provisions of Section 3(d) above, the Company shall pay to Executive a
further relocation allowance that shall be comparable to the initial Relocation Allowance, to
reimburse Executive’s out-of-pocket relocation expenses, including transitory housing and travel
expenses, in a maximum amount to be mutually agreed upon in good faith by Executive and the Company
(the “Further Relocation Allowance”). Subject to the applicable provisions of Section 4(b)
below, the Further Relocation Allowance shall be paid in a lump sum upon any such further
relocation.

(f) On the Effective Date, the Company, subject to the approval of the Board to be obtained no
later than the Effective Date (by a duly held meeting or unanimous written consent in lieu
thereof), shall grant to Executive a restricted stock award (the “Restricted Stock Award”)
of Two Million (2,000,000) restricted shares of Common Stock. The shares of restricted Common
Stock subject to the Restricted Stock Award shall vest as follows: (i) One Million (1,000,000)
shares (the “Time Vested Shares”) which shall vest at the rate of thirty-three and
one-third percent
(331/3%)
on each of the three (3) successive anniversary dates commencing on the
one (1) year anniversary of the day immediately preceding the one (1) year anniversary of the
Effective Date; (ii) One Million (1,000,000) shares (the “Initial Stock Price Performance
Shares”) which shall vest as follows: (A) in the event that for any thirty (30) consecutive
“trading days” (as defined in Section 17 below) during the “Initial Term” (as defined in
Section 5(a) below) of this Agreement the volume weighted average closing price per share
of the Company’s Common Stock on the exchange or market on which the Company’s shares of Common
Stock are publically listed or quoted for trading is at least Three Dollars and Fifty Cents
($3.50), then Five Hundred Thousand (500,000) of the Stock Price Performance Shares shall vest (the
“3.50 Tranche”); and (B) in the event that for any thirty (30) consecutive trading days
during the Initial Term of this Agreement the volume weighted average

 

4

 

closing price per share of the Company’s Initial Common Stock on the exchange or market on
which the Company’s shares of Common Stock are publically listed or quoted for trading is at least
Six Dollars ($6.00), then an additional Five Hundred Thousand (500,000) of the Stock Price
Performance Shares shall vest (the “6.00 Tranche”). In addition, in the event that the
Executive Equity Purchase exceeds Five Hundred Thousand ($500,000) Dollars, Executive shall be
granted, upon the establishing of the “conversion price” (as defined below), an additional number
of Stock Price Purchase Performance Shares (the “Additional Stock Price Performance
Shares”) equal to the dollar amount by which the Executive Equity Purchase exceeds Five Hundred
Thousand ($500,000) Dollars (the “Excess Investment”) divided by the conversion price of
the “Preferred Stock” (as defined in Section 5(b)) sold in the “Preferred Financing” (as
defined in Section 5 below); provided, however, in no event shall the
dollar amount of the Excess Investment with respect to which Executive shall be entitled to receive
Additional Stock Price Performance Shares exceed One Million ($1,000,000) Dollars. As used herein,
the term “conversion price” shall mean the conversion price of the Preferred Stock after giving
effect to the outcome of the requisite stockholder votes of the proposed amendment to the Company’s
certificate of incorporation to increase the Company’s authorized capital, and which amendment
shall be put before the Company’s stockholders for approval at the next annual meeting of the
Company’s stockholders to be held in December, 2009. In the event that the calculation of the
number of Additional Stock Price Performance Shares results in a fractional share, the fractional
share shall be rounded up to the nearest whole share. Any Additional Stock Price Performance
Shares shall be allocated equally between the 3.50 Tranche and the 6.00 Tranche. The Stock Price
Performance Shares and any Additional Stock Price Performance Shares are hereinafter collectively
referred to as the “Performance Shares”.

Vesting with respect to all Restricted Stock Awards shall be subject to the continued
employment of Executive by the Company (except as provided in Sections 8(d), 8(e) and 8(f)
below) and subject to the restrictions, vesting and forfeiture provisions and the other terms and
conditions of this Agreement and the Company’s standard form of Restricted Share Agreement in the
form annexed hereto as Exhibit I (the “Restricted Share Agreement”). Accordingly,
upon the occurrence of a Change of Control, as that term is defined in Section 8(f) hereof,
there shall be no acceleration of any unvested Time Vested Shares, any unvested Performance Shares
or any unvested shares of Common Stock or Stock Options subject to any Long-Term Incentive Award
unless, in connection with such Change of Control, Executive’s employment is also
terminated in accordance with the provisions set forth in the first paragraph of Section
8(f), in which latter event the terms of section 8(f) shall govern. Where provisions of
this Agreement and those of any Company plan, policy or program may be in conflict or inconsistent,
the provisions of this Agreement shall control without limitation.

Vested shares of Common Stock relating to any Restricted Stock Award under this Section 3(f)
shall be delivered to Executive no later than thirty (30) days after such shares vest.

(g) Subsequent to the Effective Date and within five (5) business days after Executive effects
the Executive Equity Purchase, the Company shall reimburse Executive for Executive’s reasonable,
documented professional fees and disbursements, up to $15,000, that were incurred by Executive for
legal and tax advice in connection with the negotiation and entering into of this Agreement (the
“Professional Fee Reimbursement”).

 

5

 

	 	4.	 	Benefits

(a) In addition to the Base Salary, the Bonus Compensation, the Guaranteed Bonus, any
Long-Term Incentive Award, the Transition Allowance, the Relocation Allowance, any Further
Relocation Allowance, the Restricted Stock Award and the Professional Fee Reimbursement, all as
provided for in Section 3 hereof, Executive shall be entitled to an aggregate of four (4)
weeks of vacation per year, which shall accrue on a monthly basis. In addition, Executive shall be
entitled to participate in or receive benefits equivalent to any employee benefit plan or other
arrangement, including but not limited to any medical, dental, vision, retirement, disability and
life insurance, and professional membership, social membership, entertainment, automotive,
transportation, technology or personal services allowance, generally made available by the Company
to its most senior executives, subject to or on a basis consistent with the terms, conditions and
overall administration of such plans or arrangements; provided, that such plans and
arrangements are made available at the absolute and sole discretion of the Company and nothing in
this Agreement establishes any right of Executive to the availability or continuance of any such
plan or arrangement.

(b) Executive shall be entitled to prompt reimbursement for all reasonable travel,
entertainment and other reasonable expenses incurred in connection with the Company’s business,
provided that such expenses are (i) pre-approved by the Company if not in accordance with
the Company’s policies, and (ii) adequately documented and vouchered in accordance with the
Company’s policies. Any reimbursements provided under this Section 4(b) or under Section 3(d) or
3(e) above shall be subject to the following: (i) any such reimbursement provided during one
calendar year shall not affect the amount of such reimbursement provided during a subsequent
calendar year; (ii) such reimbursements may not be exchanged or substituted for other forms of
compensation to Executive; and (iii) reimbursement payments shall be made to Executive no later
than the last day of the calendar year immediately following the calendar year in which the expense
is incurred. This Section 4(b) and the reimbursement provisions of Section 3(d) and 3(e) above
shall be in effect for the Term hereof.

	 	5.	 	Term of Employment; Preferred Equity Investment

(a) The term of Executive’s employment hereunder shall commence on November 16, 2009 (the
“Effective Date”) and shall initially terminate on the date immediately preceding the three
(3) year anniversary thereof, or such earlier time in accordance with Section 8 hereof (the
“Initial Term”); provided, however, in the event that (i) Company does not
advise Executive at least ninety (90) days prior to the expiration of the Initial Term, or (ii)
Executive does not advise the Company at least ninety (90) days prior to the expiration of the
Initial Term (and on each subsequent, successive anniversary of the Effective Date thereafter), the
term of this Agreement shall automatically be extended for one or more additional one (1) year
period(s) (as the case may be), unless terminated earlier in accordance with Section 8
hereof (the Initial Term, plus any one (1) year extension(s) thereof in accordance with the
immediately preceding proviso, is hereinafter referred to as the “Term”).

(b) It is presently anticipated that the Company’s currently proposed sale of a new series of
12% Cumulative Participating Perpetual Convertible Preferred Stock (the “Preferred Stock”)
pursuant to that certain confidential offering memorandum dated October 23, 2009 (the

 

6

 

“Preferred Financing”) will close on November 6, 2009 (the “Preferred Financing
Initial Closing Date”). Executive agrees to purchase $500,000 of Preferred Stock offered and
sold by the Company in the Preferred Financing (the “Executive Equity Purchase”) on the
date of the Preferred Financing Initial Closing Date, provided that the Preferred Stock is made
available to Executive for purchase and sale on such date, and if $500,000 of Preferred Stock is
not offered for purchase and sale to Executive on the Preferred Financing Initial Closing Date,
then Executive shall execute and deliver binding subscription documentation (identical to the
subscription documentation executed and delivered by officers and directors of the Company) no
later than the Preferred Financing Initial Closing Date obligating Executive to purchase $500,000
of Preferred Stock on the first date subsequent to the Preferred Financing Initial Closing Date
that purchase of the Preferred Stock is made available to Executive. In the event that the
Preferred Financing Initial Closing Date does not occur on or before November 20, 2009, then this
Agreement may be terminated by either the Company or Executive by written notice delivered to the
other within ten (10) days after November 20, 2009, and, upon any delivery of a notice of
termination by either Executive or the Company as hereinabove provided, this Agreement shall
automatically be terminated and void ab initio; provided, however,
in the event of such termination by Executive or the Company, no later than March 15, 2010,
Executive shall be reimbursed for all out-of-pocket expenses incurred by Executive pursuant to
Executive’s employment with the Company.

	 	6.	 	Confidentiality

(a) Executive agrees and covenants that, at any time during which Executive is employed by the
Company (which, for purpose of this Section 6 shall include the Company’s subsidiaries and
affiliates) or thereafter, Executive will not (without first obtaining the express permission of
the Company) (i) divulge to any individual, partnership, corporation (including a business trust),
limited liability company, joint stock company, trust, unincorporated association, joint venture,
or other entity, or a government or any political subdivision or agency thereof (“Person”),
or use (either by Executive or in connection with any business), any “Confidential Information” (as
hereinafter defined in Section 6(c) hereof) or (ii) divulge to any Person, or use (either
by Executive or in connection with any business), any “Trade Secrets” (as hereinafter defined in
Section 6(c) hereof) to which Executive may have had access or which had been revealed to
Executive during the course of Executive’s employment, unless such disclosure is pursuant to a
court order, disclosure in litigation involving the Company or in any reports or applications
required by law to be filed with any governmental agency, in which event Executive shall endeavor
to provide at least ten (10) days’ prior written notice to the Company, if possible, and if not
possible, then as much prior notice as Executive, in good faith, believes is reasonably possible to
provide under the circumstances.

(b) Any interest in patents, patent applications, inventions, copyrights, developments,
innovations, methods, processes, analyses, drawings, and reports (collectively,
“Inventions”) which Executive may develop during the period Executive is employed under
this Agreement (either during regular business hours or otherwise) relating to the fields in which
the Company may then be engaged shall belong to the Company; and Executive shall disclose the
Inventions to the Company and forthwith upon request of the Company, Executive shall execute all
such assignments and other documents and take all such other action as the Company may

 

7

 

reasonably request in order to vest in the Company all right, title, and interest in and to
the Inventions free and clear of all liens, charges, and encumbrances.

(c) As used in this Agreement, the term “Confidential Information” shall mean and
include all information and data in respect of the Company’s (including its subsidiaries’ and
affiliates’) operations, financial condition, products, customers and business (including, without
limitation, artwork, photographs, specifications, facsimiles, samples, business, marketing or
promotional plans, creative written material and information relating to characters, concepts,
names, trademarks, tradenames, tradedress and copyrights) which may be communicated to Executive or
to which Executive may have access in the course of Executive’s employment by the Company.
Notwithstanding the foregoing, the term “Confidential Information” shall not include information
which:

(i) is, at the time of the disclosure, a part of the public domain through no improper
act or omission by Executive;

(ii) is hereafter lawfully disclosed to Executive by a third party who or which did not
acquire the information under an obligation of confidentiality to or through the Company; or

(iii) is general business knowledge not unique or specific to the Company.

As used in this Agreement, the term “Trade Secrets” shall mean and include
information, without regard to form, including, but not limited to, technical or non-technical
data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing, a
process, financial data, financial plans, product plans, or a list of actual or potential customers
or suppliers which is not commonly known by or available to the public and which information (i)
derives economic value, actual or potential, from not being known to, and not being readily
ascertainable by proper means by, other persons who can obtain economic value from its disclosure
or use; and (ii) is the subject of efforts that are reasonable under the circumstances to maintain
its secrecy. In addition, the term “trade secrets” includes all information protectible as “trade
secrets” under applicable law.

Nothing in this Section 6 shall limit any protection, definition or remedy provided to
the Company under any law, statute or legal principle relating to Confidential Information or Trade
Secrets.

(d) Executive agrees that at the time of leaving the employ of the Company Executive will
deliver to the Company and not keep or deliver to anyone else any and all notes, notebooks,
drawings, memoranda, documents, and in general, any and all material relating to the business of
the Company (except Executive’s personal files and records) or relating to any employee, officer,
director, agent or representative of the Company.

	 	7.	 	Restrictive Covenants

(a) Non-Competition. Executive hereby agrees and covenants that during the period
(“Non-Compete Period”) beginning with the initial commencement of Executive’s employment
with the Company (including subsidiaries or affiliates) and ending one (1) year

 

8

 

following the last day of Executive’s employment with the Company, Executive will not,
directly or indirectly, engage in or become interested (whether as an owner, principal, agent,
stockholder, member, partner, trustee, venturer, lender or other investor, director, officer,
employee, consultant or through the agency of any person or entity or otherwise) in any business or
enterprise that at any time during the Non-Compete Period shall be, in whole or in substantial part
competitive with any material part of the business conducted by the Company (which, for purposes of
this Section 7 shall include the Company’s subsidiaries and affiliates) as of the last day
of Executive’s employment with the Company; except that ownership of not more than 1% of the
outstanding securities of any class of any entity that is listed on a national securities exchange
or quoted or traded in the over-the-counter market shall not be considered a breach of this
Section 7(a). Any engagement, interest or activity permitted under or pursuant to Section
2(b) above shall not be considered a breach of this Section 7(a).

(b) No-Raid. Executive agrees and covenants that for the period commencing on the
date hereof and ending one (1) year following the termination of Executive’s employment with the
Company (the “Limited Period”), Executive will not (without first obtaining the written
permission of the Company), directly or indirectly, recruit any then current employee or
independent contractor of the Company, or any individual who served in any such capacity for the
Company at any time six (6) months prior thereto, for employment or any other relationship
(including but not limited to as an independent contractor), or induce or seek to cause such person
to terminate his or her employment with the Company. As used in Sections 7(a) and
7(b) hereof, all references to the Company includes the Company’s subsidiaries and
affiliates.

(c) Nondisparagement. Each of the Company and Executive represents and agrees that
during the term hereof and thereafter each will not in any way disparage the other (and with
respect to the Company, Executive’s agreement hereunder shall also apply to the Company’s current,
former and future officers and directors), or make any comments, statements, or communications to
the media or to any other third party that reasonably may be considered to be intentionally and
materially (i) derogatory or (ii) detrimental to the good name or business reputation of any of the
aforementioned parties or entities. Executive agrees that he shall direct all third party
inquiries regarding Executive’s employment with the Company to the Company’s Senior Vice President
of Human Resources. The provisions of this Section 7(c) shall survive the expiration or
termination of this Agreement.

(d) Indemnification. Executive shall be indemnified by the Company in accordance with
the Company’s Bylaws, as same may be amended from time to time. The Company agrees to maintain in
full force and effect throughout the Employment Period either its directors’ and officers’
liability insurance policy in effect on the date hereof, or any replacement policy thereof on such
terms and conditions as may be approved by the Board, and any agreements to indemnify executive
employees of the Company.

(e) Cooperation by Executive. With respect to any litigation, arbitration, mediation,
administrative hearing, or any other dispute resolution process to which the Company is a party or
which Executive is a witness at any time during or after the expiration of the Employment Period,
Executive, subject to the reasonable requests of the Company and Executive’s personal schedule,
agrees to cooperate fully with the Company, its attorneys and agents, with respect to any

 

9

 

process including but not limited to, interviews, depositions, preparation for testimony, and
testifying or otherwise providing evidence at no out of pocket cost to Executive. Executive shall
be indemnified by the Company in connection with Executive’s activities pursuant to this
Section 7(e), and the provisions of this Section 7(e) shall survive the expiration
or termination of this Agreement. In the event Executive is requested to provide such cooperation
or assistance after the expiration or termination of this Agreement, Executive shall be reasonably
compensated by the Company for his time at an hourly rate comparable to senior consultants to the
Company.

	 	8.	 	Termination

The following termination provisions and benefits are in lieu of the benefits available under
the Company’s written policies and procedures, as same may be from time to time amended. Executive
agrees that his termination provisions shall not be governed by such policies and plans.

(a) Cause. Notwithstanding the terms of this Agreement, the Company may discharge
Executive and terminate this Agreement for cause (“Cause”) only in the event (i) of
Executive’s willful and repeated refusal, to materially perform his duties or a material covenant
hereunder with reasonable diligence, or to follow a material, lawful directive of the Board
commensurate with Executive’s position (other than a failure or refusal resulting from Executive’s
incapacity), (ii) Executive’s commission of an act involving a fraud, embezzlement, or theft
against the property or personnel of the Company, (iii) Executive’s engagement in conduct that the
Company in good faith reasonably determines will have a material adverse affect on the reputation,
business, assets, properties, results of operations or financial condition of the Company, (iv)
Executive shall be indicted for a non-driving related felony or a crime involving moral turpitude,
or (v) Executive shall fail to effect the Executive Equity Purchase in accordance with Section 5(b)
above. Notwithstanding anything set forth herein to the contrary, prior to the Company having the
right to discharge Executive pursuant to clauses (i) or (iii) of the immediately preceding
sentence, the Company shall first be required to give Executive at least thirty (30) days’ prior
written notice of any alleged breach under Section 8(a)(i) or Section 8(a)(iii)
above (the “Notice”), and for such Notice to be effective it must specify in reasonable
detail the nature of, and facts and circumstances relative to, such alleged Cause, and Executive
shall have a reasonable opportunity to cure any such alleged improper actions within such thirty
(30) day period (and in the event Executive takes such curative actions, the Notice shall be deemed
withdrawn). Executive shall have had an opportunity, together with counsel, to be heard before the
Board upon receipt of the Notice. As used in this Section, the Company includes the Company’s
subsidiaries and affiliates, but any determination of Cause shall be made only by formal action of
a majority of the Board not including Executive. In the event Executive is discharged pursuant to
this Section 8(a), (i) Executive’s Base Salary, Bonus Compensation, and all benefits under
Section 4 hereof shall terminate immediately upon such discharge (subject to applicable
law, such as pursuant to the applicable provisions of sections 601 through 608 of the Employee
Retirement Income Security Act of 1974 regarding continuation coverage), (ii) Executive’s right to
all unvested equity awards granted to Executive during the Term hereof hereunder shall immediately
and automatically terminate and be of no further force or effect, including but not limited to all
unvested Performance Shares, all unvested Time Vested Shares and all unvested shares of Common
Stock or Stock Options subject to any Long-Term Incentive Award, (iii) Executive’s right to
exercise any vested Stock Options shall terminate automatically, and (iv) the Company shall have no
further obligations to Executive except for payment and reimbursement to

 

10

 

Executive for any monies due to Executive which right to payment or reimbursement accrued
prior to such discharge, including any Base Salary or Bonus Compensation for a calendar year which
has been earned, but not yet paid.

(b) Incapacity. Should Executive become incapacitated to the extent that Executive is
unable to perform Executive’s duties pursuant to this Agreement for a period of more than one
hundred eighty (180) days in any twelve (12) month period by reason of illness, disability or other
incapacity, the Company may, subject to the requirements of applicable law, terminate this
Agreement upon written notice at any time after said one hundred eighty (180) day period and the
Company shall have no further obligations to Executive or his legal representatives except for
payment and reimbursement to Executive or his legal representatives for any monies and other
compensation due to Executive (including but not limited to Base Salary, Bonus Compensation,
Guaranteed Bonus, Common Stock and Stock Options) which right to payment, receipt or reimbursement
accrued prior to such termination.

(c) Death. This Agreement shall terminate immediately upon the death of Executive, in
which case the Company shall have no further obligations to Executive or his legal representatives
except for payment and reimbursement to Executive’s estate or his legal representatives for any
monies and other compensation due to Executive (including but not limited to Base Salary, Bonus
Compensation, Guaranteed Bonus, Common Stock and Stock Options) which right to payment, receipt or
reimbursement accrued prior to Executive’s death.

(d) Termination Without Cause. At any time subsequent to the Effective Date, the
Company may terminate Executive’s employment with the Company without Cause (as defined in
Section 8(a) above), for any reason at any time, upon written notice to Executive,
whereupon Executive shall be entitled to receive (i) all monies due to Executive which right to
payment or reimbursement accrued prior to such discharge, (ii) Base Salary in accordance with the
Company’s customary payroll practices for a period of twenty-four (24) months following the date of
such termination, (iii) in lieu of any Bonus Compensation for the calendar year of termination, an
amount equal to two (2) times Executive’s Bonus Compensation earned in the calendar year prior to
termination, payable in cash, on the next immediately following date when similar annual bonus
compensation is paid to other executive officers of the Company (but in no event later than March
15th of the calendar year following the calendar in which the termination occurs);
provided, however, notwithstanding the foregoing provisions of this subclause
8(d)(iii), in the event of a termination pursuant to this Section 8(d) at any time
prior to the payment of the Guaranteed Bonus, it is expressly understood and agreed that Executive
shall be entitled to receive the Guaranteed Bonus pursuant to this subclause 8(d)(iii),
(iv) an amount, payable monthly, equal to the amount Executive paid for continuation of health
insurance coverage for such month under the Consolidated Omnibus Budget Reconciliation Act of 1986
(“COBRA”), until the earlier of (A) eighteen (18) months from the termination date, or (B)
Executive obtains replacement health coverage from another source, (v) the number of shares of
Common Stock or Stock Options that are unvested with respect to any Long-Term Incentive Awards
granted to Executive prior to termination, which shall immediately vest and shall be delivered no
later than March 15th of the calendar year following the calendar year in which the
termination occurs, and (vi) all then unvested Time Vested Shares and Performance Shares shall
automatically vest upon the termination and shall be delivered no later than March 15th
of the calendar year following the calendar year in which the termination occurs. The Company’s
payment

 

11

 

of any amounts to Executive other than with respect to subclause (i) in the immediately
preceding sentence upon the termination of Executive’s employment without Cause is expressly
subject to and contingent upon Executive executing and delivering to the Company within twenty-one
(21) days of such termination the Company’s then current form of release for all claims hereunder
(the “Release”).

(e) Termination by Executive for Good Reason. Executive may terminate his employment
under this Agreement at any time for Good Reason by giving written notice to the Company. For
purposes of this Section 8(e), “Good Reason” shall mean any of the following conditions:
(i) a material breach of this Agreement by the Company; (ii) other than in connection with
relocating to either the New York, New York or Chicago, Illinois metropolitan area as a consequence
of the Company moving its principal executive offices to either such metropolitan area, Executive
is required to permanently relocate outside of a seventy-five (75) mile radius from Santa Ana,
California, (iii) a reduction in Executive’s Base Salary as then currently in effect
(i.e. inclusive of any increases in the Base Salary as same may have been increased
subsequent to the execution hereof in accordance with the provisions of Section 3(a)
above); (iv) a material reduction in Executive’s duties and responsibilities; or (v) Executive is
required to directly report to any other executive officer of the Company; provided,
however, that no Good Reason shall exist unless Executive provides the Company with written
notice of the condition within 90 days of Executive’s learning of the condition’s initial existence
and the Company has not cured the condition within 30 days of such notice. In the event of a
termination by Executive for Good Reason, Executive shall be entitled to receive (i) all monies due
to Executive which right to payment or reimbursement accrued prior to such discharge, (ii) Base
Salary in accordance with the Company’s customary payroll practices for a period of twenty-four
(24) months following the date of such termination, (iii) in lieu of any Bonus Compensation for the
calendar year of termination, an amount equal to two (2) times Executive’s Bonus Compensation
earned in the calendar year prior to termination, payable in cash, on the next immediately
following date when similar annual bonus compensation is paid to other executive officers of the
Company (but in no event later than March 15th of the calendar year following the
calendar year in which the termination occurs); provided, however, notwithstanding
the foregoing provisions of this subclause 8(e)(iii), in the event of a termination
pursuant to this Section 8(e) at any time prior to the payment of the Guaranteed Bonus, it
is expressly understood and agreed that Executive shall be entitled to receive the Guaranteed Bonus
pursuant to this subclause 8(e)(iii), (iv) an amount, payable monthly, equal to the amount
Executive paid for continuation of health insurance coverage for such month under COBRA, until the
earlier of (A) eighteen (18) months from the termination date, or (B) Executive obtains replacement
health coverage from another source, (v) the number of shares of Common Stock or Stock Options that
are unvested with respect to any Long-Term Incentive Awards granted to Executive prior to
termination, which shall immediately vest and shall be delivered no later than March
15th of the calendar year following the calendar year in which the termination occurs,
and (vi) all then unvested Time Vested Shares and Performance Shares shall automatically vest upon
the termination and shall be delivered no later than March 15th of the calendar year
following the calendar year in which the termination occurs. The Company’s payment of any amounts
to Executive other than with respect to subclause (i) in the immediately preceding sentence upon
Executive’s termination for Good Reason is expressly subject to and contingent upon Executive
executing and delivering to the Company within twenty-one (21) days of Executive’s termination for
Good Reason the Release.

 

12

 

(f) Termination Pursuant to a Change of Control. In the event that subsequent to the
Effective Date (i) Executive is terminated by the Company or its succesor without Cause or
Executive terminates the Agreement for Good Reason within one (1) year after a “Change of Control”
(as defined below), or (ii) Executive is terminated by the Company without Cause or Executive
terminates the Agreement for Good Reason within three (3) months prior to a Change of Control,
Executive shall be entitled to receive (i) all monies due to Executive which right to payment or
reimbursement accrued prior to such discharge, (ii) two (2) times Executive’s Base Salary payable
in accordance with the Company’s customary payroll practices over a twenty-four (24) month period,
(iii) in lieu of any Bonus Compensation for the calendar year of termination, an amount equal to
two (2) times Executive’s Bonus Compensation earned in the calendar year prior to termination,
payable in cash, on the next immediately following date when similar annual bonus compensation is
paid to other executive officers of the Company (but in no event later than March 15th
of the calendar year following the calendar year in which the termination occurs) );
provided, however, notwithstanding the foregoing provisions of this subclause
8(f)(iii), in the event of a termination pursuant to this Section 8(f) at any time
prior to the payment of the Guaranteed Bonus, it is expressly understood and agreed that Executive
shall be entitled to receive the Guaranteed Bonus pursuant to this subclause 8(f)(iii),
(iv) an amount, payable monthly, equal to the amount Executive paid for continuation of health
insurance coverage for such month under COBRA, until the earlier of (A) eighteen (18) months from
the termination date, or (B) Executive obtains replacement health coverage from another source, (v)
the number of shares of Common Stock or Stock Options that are unvested with respect to any
Long-Term Incentive Awards granted to Executive prior to termination, which shall immediately vest
and shall be delivered no later than March 15th of the calendar year following the
calendar year in which the termination occurs, and (vi) all then unvested Time Vested Shares and
Performance Shares shall automatically vest upon the termination and shall be delivered no later
than March 15th of the calendar year following the calendar year in which the
termination occurs. The Company’s payment of any amounts to Executive other than with respect to
subclause (i) in the immediately preceding sentence upon the termination of Executive’s employment
without Cause or for Good Reason is expressly subject to and contingent upon Executive executing
and delivering to the Company within twenty-one (21) days of such termination the Release.

For purposes of this Agreement, the term “Change of Control” shall mean the occurrence
of any of the following events subsequent to the Effective Date: (i) the acquisition by any
person, entity or group (other than a Current Investor, an Affiliate of a Current Investor, the
Company or an Affiliate of the Company) in one or more transactions, of beneficial ownership (as
defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended) of 50% or more of the
Voting Stock of the Company; (ii) the completion by any person, entity or group (other than a
Current Investor, an Affiliate of a Current Investor, the Company or an Affiliate of the Company)
of a tender offer or an exchange offer for more than 50% of the outstanding Voting Stock of the
Company; (iii) the effective time of (1) a merger or consolidation of the Company with one or more
corporations (other than a corporation or corporations in which at least 50% the Voting Stock is
beneficially owned by a Current Investor or an Affiliate of a Current Investor) as a result of
which the holders of the outstanding Voting Stock of the Company immediately prior to such merger
or consolidation directly or indirectly hold less than 50% of the Voting Stock of the surviving or
resulting corporation or (2) a transfer of all or substantially all of the property or assets of
the Company (other than to an entity in which a Current Investor, an Affiliate of a Current
Investor, the Company or an Affiliate of the

 

13

 

Company owns at least 50% of the Voting Stock); (iv) individuals who constitute the Board as
of the Effective Date (the “Incumbent Board”) ceasing for any reason to constitute at least
a majority of the Board (provided, however, that any individual becoming a director subsequent to
such date whose appointment or election, or nomination for election by the Company’s stockholders,
was approved by a vote of at least a majority of the directors then comprising the Incumbent Board
shall be considered a member of the Incumbent Board, but excluding for this purpose any such
individual whose initial election or appointment to the Board occurs as a result of an election
contest with respect to the election or removal of directors or other solicitation of proxies or
consents by or on behalf of a person other than the Board); or (v) a complete liquidation of the
Company. For purposes of this definition of Change of Control: “Affiliate” shall have the
meaning given to such term in Rule 405 under the Securities Act of 1933, as amended; “Current
Investor” shall mean any stockholder of the Company, who or that, as of the Effective Date,
either alone or together with their or its Affiliates beneficially owns 20% or more of the
outstanding Voting Stock of the Company; and “Voting Stock” shall mean the outstanding
capital stock or equity interests of any entity that are entitled to vote for the election of
directors of such entity. For the avoidance of doubt, the currently proposed recapitalization of
the Company pursuant to the Preferred Financing shall not constitute a Change of Control.

(g) Exclusivity of Severance Provisions. The Change of Control payment contemplated
in Section 8(f) and the severance payments contemplated in Section 8(d) or
Section 8(e), are mutually exclusive (i.e. Executive may be entitled to one or the other,
but not both).

(h) Section 409A. Notwithstanding anything in this Agreement to the contrary, if any
amounts or benefits payable under this Agreement on account of Executive’s termination of
employment constitute deferred compensation subject to Section 409A of the Internal Revenue Code of
1986, as amended (the “Code”), no payments or benefits shall be paid or provided until
Executive incurs a separation from service within the meaning of Treasury Regulation § 1.409A-1(h)
from the Company and any entity that would be considered a single employer with the Company under
Code Sections 414(b) or 414(c) (“Separation from Service”). If, at the time of the
Executive’s Separation from Service, Executive is a “specified employee” (within the meaning of
Code Section 409A and Treasury Regulation §1.409A-3(i)(2)), the Company will not pay or provide any
“Specified Benefits” (as defined herein) until immediately after the six-month period (the
“409A Suspension Period”) beginning immediately after the Executive’s Separation from
Service and all Specified Benefits that would otherwise have been paid or provided during the 409A
Suspension Period shall be paid or provided on the first business day immediately following the
409A Suspension Period. For purposes of this Agreement, “Specified Benefits” are any
amounts or benefits that constitute deferred compensation subject to Code Section 409A that are
paid on account of Executive’s Separation from Service. This Agreement is intended to comply with
(or be exempt from) Code Section 409A, and the Company shall have reasonable discretion to
interpret and construe this Agreement and any associated documents in any manner that establishes
an exemption from (or otherwise conforms them to) the requirements of Code Section 409A. The
Company reserves the right to unilaterally amend this Agreement without the consent of Executive in
order to accurately reflect its correct interpretation and operation under Section 409A, as well as
to maintain an exemption from or compliance with Code Section 409A, provided that Executive shall
receive prompt written notice of any such amendment and be given an opportunity to present any
concerns with such amendment to the Board for its good faith consideration and action.
Nevertheless, and notwithstanding any other

 

14

 

provision of this Agreement, neither the Company nor any of its employees, directors, or their
agents shall have any obligation to mitigate, nor hold Executive harmless from, any or all taxes
(including any imposed under Code Section 409A) arising under this Agreement.

	 	9.	 	Violation of Other Agreements

Executive represents and warrants to the Company that he has no written employment agreement
or any other written agreement or other understanding of any nature whatsoever with his employer
immediately preceding the entering into of this Agreement (or any other former employer) that would
prohibit him from entering this Agreement or that would in any fashion prevent, prohibit, restrict
or hinder Executive or the Company from directly or indirectly soliciting, for employment any
current or prior employee of his immediately preceding employer, or any other employer, or that
would in any fashion prevent, prohibit, restrict or hinder Executive or the Company from
soliciting, directly or indirectly, any current or prior clients or prospects of Executive’s
immediately preceding employer or any other former employer. Accordingly, Executive is legally
able to enter into this Agreement and accept employment with the Company; that Executive is not
prohibited by the terms of any agreement, understanding, law or policy from entering into this
Agreement; that the terms hereof will not and do not violate or contravene the terms of any
agreement, understanding, law or policy to which Executive is or may be a party, or by which
Executive may be bound or subject; and that Executive is under no physical or mental disability
that would hinder the performance of Executive’s duties under this Agreement.

	 	10.	 	Specific Performance; Damages

In the event of a breach or threatened breach of the provisions of Section 6 or
Section 7 hereof, Executive agrees that the injury which could be suffered by the Company
(which for purposes of this Section 10 shall include the Company’s successor-in-interest,
subsidiaries and affiliates) would be of a character which could not be fully compensated for
solely by a recovery of monetary damages. Accordingly, Executive agrees that in the event of a
breach or threatened breach of Section 6 or Section 7 hereof, in addition to and
not in lieu of any damages sustained by the Company and any other remedies which the Company may
pursue hereunder or under any applicable law, the Company shall have the right to equitable relief,
including but not limited to the issuance of a temporary or permanent injunction or restraining
order, by any court of competent jurisdiction against the commission or continuance of any such
breach or threatened breach, without the necessity of proving any actual damages or posting of any
bond or surety therefor.

	 	11.	 	Notices

Any and all notices, demands or requests required or permitted to be given under this
Agreement shall be given in writing and sent, by registered or certified U.S. mail, return receipt
requested, by hand, by overnight courier, or by facsimile, addressed to the parties hereto at their
addresses set forth above or such other addresses as they may from time-to-time designate by
written notice, given in accordance with the terms of this Section, together with copies thereof as
follows:

 

15

 

In the case of the Company, to:

Grubb & Ellis Company

1551 N. Tustin Avenue, Suite 300

Santa Ana, CA 9270

Attention: Chairman of the Board

Facsimile: (714) 881-2217

With a copy simultaneously by like means to:

Zukerman Gore Brandeis & Crossman, LLP

875 Third Avenue

New York, NY 10022

Attention: Clifford A. Brandeis, Esq.

Main: (212) 223-6700

Facsimile: (212) 223-6433

Email: cbrandeis@zgbcllp.com

In the case of Executive, to:

Thomas D’Arcy

[REDACTED]

[REDACTED] Facsimile: [REDACTED]; Attention Emmett E. Lyne, Esq.

With a copy simultaneously by like means to:

Emmett E. Lyne, Esq.

Rich May, a Professional Corporation

176 Federal Street

Boston, MA 02110-2223

Main: (617) 556-3800

Direct: (617) 556-3885

Fax: (617) 556-3889

Email: elyne@richmaylaw.com

 

 

Notice given as provided in this Section shall be deemed effective: (i) on the date hand
delivered, (ii) on the first business day following the sending thereof by overnight courier with
receipt confirmed, (iii) on the seventh calendar day (or, if it is not a business day, then the
next succeeding business day thereafter) after the depositing thereof into the exclusive custody of
the U.S. Postal Service, certified mail, return receipt requested, and (iv) when transmitted by
facsimile with receipt confirmed.

	 	12.	 	Waivers

No waiver by any party of any default with respect to any provision, condition or requirement
hereof shall be deemed to be a waiver of any other provision, condition or requirement hereof; nor

 

16

 

shall any delay or omission of any party to exercise any right hereunder in any manner impair
the exercise of any such right accruing to it thereafter.

	 	13.	 	Preservation of Intent

Should any provision of this Agreement be determined by a court having jurisdiction in the
premises to be illegal or in conflict with any laws of any state or jurisdiction or otherwise
unenforceable, the Company and Executive agree that such provision shall be modified to the extent
legally possible so that the intent of this Agreement may be legally carried out.

	 	14.	 	Entire Agreement

This Agreement sets forth the entire and only agreement or understanding between the parties
relating to the subject matter hereof and supersedes and cancels all previous agreements,
negotiations, letters of intent, correspondence, commitments, plans and representations in respect
thereof among them, including, without limitation, any prior employment agreement and any special
severance agreements and no party shall be bound by any conditions, definitions, warranties or
representations with respect to the subject matter of this Agreement except as provided in this
Agreement.

	 	15.	 	Inurement; Assignment

The rights and obligations of the Company under this Agreement shall inure to the benefit of
and shall be binding upon any successor of the Company or to the business of the Company, subject
to the provisions hereof. The Company may assign this Agreement to any person, firm or corporation
controlling, controlled by, or under common control with the Company. Neither this Agreement nor
any rights or obligations of Executive hereunder shall be transferable or assignable by Executive,
other than the rights which inure to his estate and legal representatives hereunder in the event of
the death of Executive during the Employment Period.

	 	16.	 	Amendment

This Agreement may not be amended in any respect except by an instrument in writing signed by
the parties hereto.

	 	17.	 	Headings; Certain Definitions

The headings in this Agreement are solely for convenience of reference and shall be given no
effect in the construction or interpretation of this Agreement.

As used herein, the term “trading day” shall mean any day of the year on which the market or
exchange on which the Company’s Common Stock is listed or quoted for trading is open to the public
for trading. As used herein the term “business day” shall mean any day of the year other than a
Saturday or a Sunday or holiday on commercial banks are open for business in Santa Ana, California.

 

17

 

	 	18.	 	Counterparts

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

	 	19.	 	Governing Law; Disputes

This Agreement shall be governed by, construed and enforced in accordance with the internal
laws of the State of Delaware, without giving reference to principles of conflict of laws. Other
than with respect to any dispute or controversy arising under Section 10 hereof, any
dispute or controversy arising under, out of, in connection with or in relation to this Agreement
shall be finally determined and settled by arbitration. Arbitration shall be initiated by one
party making written demand upon the other party and simultaneously filing the demand together with
required fees in the office of the American Arbitration Association in Wilmington, Delaware. The
arbitration proceeding shall be conducted in Wilmington, Delaware by a single arbitrator in
accordance with the Commercial Arbitration Rules as required by the arbitrator. Each party shall
bear their own legal costs and expenses in connection with any arbitration and the parties shall
share equally all arbitration fees; provided, however, that the arbitrator shall
have the discretion to award legal costs and expenses of arbitration in the interests of fairness.
Except as required by the arbitrator, the parties shall have no obligation to comply with discovery
requests made in the arbitration proceeding. The arbitration award shall be a final and binding
determination of the dispute and shall be fully enforceable as an arbitration award in any court
having jurisdiction and venue over such parties.

In the event of any dispute or controversy arising under Section 10 hereof, each of
the parties hereto irrevocably consents to the exclusive venue and jurisdiction of the federal and
state courts located in the State of Delaware, County of Kent, and the prevailing party in such
dispute or controversy shall have the right to recover, at the discretion of the court in the
interests of fairness, from the non-prevailing party all legal costs and expenses and all court
costs expended by the prevailing party in connection with such dispute or controversy.

[Remainder of Page Intentionally Blank]

 

18

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 
	 
	 	THOMAS D’ARCY	 
	 
	 	GRUBB & ELLIS COMPANY

 	 
	 	By:  	 	 
	 	 	C. Michael Kojaian 	 
	 	 	Chairman of the Board 	 
	 

[Signature Page to Employment Agreement]

 

 

 

EXHIBIT I

RESTRICTED STOCK AWARD AGREEMENT

Pursuant to that certain executive employment agreement dated as of
 _____ 
, 2009 (the
"Employment Agreement”) by and between Grubb & Ellis Company, a Delaware corporation (the
"Company”), and Thomas D’Arcy (“Executive”), the Company has granted to Executive the number of
shares of the Company’s common stock, $0.01 par value (“Stock”), as set forth in the Employment
Agreement (the “Shares”), upon the terms and conditions set forth in the Employment Agreement and
this restricted stock agreement (the “Agreement”).

ARTICLE I

GENERAL

1.1 Defined Terms. Capitalized terms not specifically defined herein shall have the
meanings specified in the Employment Agreement.

ARTICLE II

GRANT OF RESTRICTED STOCK

2.1 Grant of Restricted Stock. In consideration of Executive’s employment with or
service to the Company or its subsidiaries pursuant to the Employment Agreement, and for other good
and valuable consideration, effective as of the Effective Date (the “Effective Date”), the Company
hereby agrees to issue to Executive the Shares, upon the terms and conditions set forth in this
Agreement and in the Employment Agreement.

2.2 Issuance of Shares. The issuance of the Shares under this Agreement shall occur
upon the Effective Date (the “Issuance Date”). Subject to the provisions of Article IV, the
Company shall issue the Shares (which shall be issued in Executive’s name) on the Issuance Date.

2.3 Conditions to Issuance of Stock Certificates. The Shares, or any portion thereof,
may be either previously authorized but unissued shares or issued shares which have then been
reacquired by the Company. Such Shares shall be fully paid and nonassessable. The Company shall
not be required to issue or deliver any Shares prior to fulfillment of all of the following
conditions:

(a) The admission of such Shares to listing on all stock exchanges on which the Stock is then
listed;

(b) The completion of any registration or other qualification of such Shares under any state
or federal law or under rulings or regulations of the Securities and Exchange Commission or of any
other governmental regulatory body, which the Board of Directors shall, in its absolute discretion,
deem necessary or advisable;

(c) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Board of Directors shall, in its absolute discretion, determine to be necessary or
advisable;

(d) The lapse of such reasonable period of time following the Issuance Date as the Board of
Directors may from time to time establish for reasons of administrative convenience; and

(e) The receipt by the Company of full payment for all amounts which, under federal, state or
local tax law, the Company (or other employer corporation) is required to withhold upon issuance of
such Shares.

 

 

 

Notwithstanding the foregoing, the Company will ensure that upon the vesting of any Shares
pursuant to the Employment Agreement, these conditions shall have been satisfied with respect to
such vested Shares.

2.4 Rights as Stockholder. Except as otherwise provided herein, upon delivery of the
Shares to the escrow agent pursuant to Article IV, Executive shall have all the rights of a
stockholder with respect to said Shares, subject to the restrictions herein, including the right to
vote the Shares and to receive all dividends or other distributions paid or made with respect to
the Shares; provided, however, that any and all extraordinary cash dividends paid on such Shares
and any and all shares of Stock, capital stock or other securities or property received by or
distributed to Executive with respect to the Shares as a result of any stock dividend, stock split,
reverse stock split, recapitalization, combination, reclassification, or similar change in the
capital structure of the Company shall also be subject to the Forfeiture Restriction (as defined in
Section 3.1) and the restrictions on transfer in Section 3.4 until such
restrictions on the underlying Shares lapse or are removed pursuant to this Agreement (or, if such
Shares are no longer outstanding, until such time as such Shares would have been released from the
Forfeiture Restriction pursuant to this Agreement). In addition, in the event of any merger,
consolidation, share exchange or reorganization affecting the Shares, including, without
limitation, a Change in Control, then any new, substituted or additional securities or other
property (including money paid other than as a regular cash dividend) that is by reason of any such
transaction received with respect to, in exchange for or in substitution of the Shares shall also
be subject to the Forfeiture Restriction (as defined in Section 3.1) and the restrictions
on transfer in Section 3.4 until such restrictions on the underlying Shares lapse or are
removed pursuant to this Agreement (or, if such Shares are no longer outstanding, until such time
as such Shares would have been released from the Forfeiture Restriction pursuant to this
Agreement). Any such assets or other securities received by or distributed to Executive with
respect to, in exchange for or in substitution of any Unreleased Shares (as defined in Section
3.3) shall be immediately delivered to the Company to be held in escrow pursuant to Section
4.1. Notwithstanding the foregoing, any dividends or other distributions paid or made with
respect to Shares prior to the date that such Shares are released from the Forfeiture Restriction
and which are not also subject to the Forfeiture Restriction (as described above) shall be paid or
made to Executive no later than the earlier of (i) the end of the calendar year in which the
dividends or distributions are paid or made to shareholders of the Stock or (ii) the
15th day of the third month following the date the dividends or distributions are paid
or made to shareholders of the Stock.

ARTICLE III

RESTRICTIONS ON SHARES

3.1 Forfeiture Restriction. Subject to the provisions of Section 3.2, if
Executive has a termination of employment for any or no reason, all of the Unreleased Shares (as
defined in Section 3.3) shall thereupon be forfeited immediately and without any further
action by the Company (the “Forfeiture Restriction”). Upon the occurrence of such a forfeiture,
the Company shall become the legal and beneficial owner of the Shares being forfeited and all
rights and interests therein or relating thereto, and the Company shall have the right to retain
and transfer to its own name the number of Shares being forfeited by Executive. In the event any
of the Unreleased Shares are forfeited under this Section 3.1, any cash, cash equivalents,
assets or securities received by or distributed to Executive with respect to, in exchange for or in
substitution of such Shares and held by the escrow agent pursuant to Section 4.1 shall be
promptly transferred by the escrow agent to the Company.

3.2 Release of Shares from Forfeiture Restriction. The Shares shall be released from
the Forfeiture Restriction in accordance with the applicable vesting provisions set forth in the
Employment Agreement (including, for the avoidance of doubt, the accelerated vesting provisions of
Sections 8(d), 8(e) and 8(f) of the Employment Agreement). Any of the Shares released from the
Forfeiture Restriction shall thereupon be released from the restrictions on transfer under
Section 3.4. In the event any of the Shares are released from the Forfeiture Restriction,
any dividends or other distributions paid on such Shares and held by the escrow agent pursuant to
Section 4.1 shall be promptly paid by the escrow agent to Executive (provided that such
payment shall in no event be later than March 15 of the calendar year following the calendar year
in which such Shares are released from the Forfeiture Restriction).

 

2

 

3.3 Unreleased Shares. Any of the Shares which, from time to time, have not yet been
released from the Forfeiture Restriction are referred to herein as "Unreleased Shares.”

3.4 Restrictions on Transfer. Unless otherwise permitted by Board of Directors or the
Compensation Committee of the Company (the “Committee”), no Unreleased Shares or any dividends or
other distributions thereon or any interest or right therein or part thereof, shall be liable for
the debts, contracts or engagements of Executive or his or her successors in interest or shall be
subject to sale or other disposition by transfer, alienation, anticipation, pledge, encumbrance,
assignment or any other means whether such sale or other disposition be voluntary or involuntary or
by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable
proceedings (including bankruptcy), and any attempted sale or other disposition thereof shall be
null and void and of no effect. Notwithstanding the foregoing, the Unreleased Shares and all other
property, amounts, interests and rights related thereto shall not be transferable (within the
meaning of Section 83 of the Internal Revenue Code of 1986, as amended (the “Code”)) at any time
prior to the time of release from the Forfeiture Restrictions.

ARTICLE IV

ESCROW OF SHARES

4.1 Escrow of Shares. To insure the availability for delivery of Executive’s
Unreleased Shares in the event of forfeiture of such Shares by Executive pursuant to Section
3.1, Executive hereby appoints the Secretary of the Company, or any other person designated by
the Committee as escrow agent, as his or her attorney-in-fact to assign and transfer unto the
Company, such Unreleased Shares, if any, forfeited by Executive pursuant to Section 3.1 and
any dividends or other distributions thereon. The Unreleased Shares and stock assignment shall be
held by the Secretary of the Company, or such other person designated by the Committee, in escrow,
until the Unreleased Shares are forfeited by Executive as provided in Section 3.1, until
such Unreleased Shares are released from the Forfeiture Restriction, or until such time as this
Agreement no longer is in effect.

4.2 Transfer of Forfeited Shares. Executive hereby authorizes and directs the
Secretary of the Company, or such other person designated by the Board of Directors or the
Committee, to transfer the Unreleased Shares which have been forfeited by Executive to the Company.

4.3 No Liability for Actions in Connection with Escrow. The Company, or its designee,
shall not be liable for any act it may do or omit to do with respect to holding the Shares in
escrow while acting in good faith and in the exercise of its reasonable judgment.

ARTICLE V

OTHER PROVISIONS

5.1 Adjustment for Stock Split. In the event of any stock dividend, stock split,
reverse stock split, recapitalization, combination, reclassification, or similar change in the
capital structure of the Company, the Committee shall make appropriate and equitable adjustments in
the number of Shares that at the time of such event are Unreleased Shares subject to the Forfeiture
Restriction. The provisions of this Agreement shall apply, to the full extent set forth herein
with respect to such Shares, to any and all shares of capital stock or other securities, property
or cash which may be issued in respect of, in exchange for, or in substitution of such Shares, and
shall be appropriately adjusted for any stock dividends, splits, reverse splits, combinations,
recapitalizations and the like occurring after the date hereof.

5.2 Taxes. Executive has reviewed with Executive’s own tax advisors the federal,
state, local and foreign tax consequences of this investment and the transactions contemplated by
the Employment Agreement and this Agreement. Executive is relying solely on such advisors and not
on any statements or representations of the Company or any of its agents. Executive understands
that Executive (and not the Company) shall be responsible for Executive’s own tax liability that
may arise as a result of this investment or the transactions contemplated by this Agreement.
Executive understands that Executive will recognize ordinary income for

 

3

 

federal income tax purposes under Section 83 of the Code as the restrictions applicable to the
Unreleased Shares lapse. In this context, “restriction” includes the Forfeiture Restriction.
Executive understands that Executive may elect to be taxed for federal income tax purposes at the
time the Shares are issued rather than as and when the Forfeiture Restriction lapses by filing an
election under Section 83(b) of the Code with the Internal Revenue Service no later than thirty
days following the date of issuance.

EXECUTIVE ACKNOWLEDGES THAT IT IS EXECUTIVE’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO
TIMELY FILE THE ELECTION UNDER SECTION 83(b), EVEN IF PARTICIPNAT REQUESTS THE COMPANY OR ITS
REPRESENTATIVES TO MAKE THIS FILING ON EXECUTIVE’S BEHALF.

5.3 Limitations Applicable to Section 16 Persons. Notwithstanding any other provision
of this Agreement or the Employment Agreement, Executive expressly acknowledges and agrees that
Executive is subject to Section 16 of the Securities Exchange Act of 1934, as amended (the
"Exchange Act”), the Shares and this Agreement shall be subject to any additional limitations set
forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any
amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such
exemptive rule. To the extent permitted by applicable law, this Agreement shall be deemed amended
to the extent necessary to conform to such applicable exemptive rule.

5.4 Administration. Intentionally Omitted.

5.5 Restrictive Legends and Stop-Transfer Orders.

(a) Any share certificate(s) evidencing the Shares issued hereunder shall be endorsed
with the following legend and any other legend(s) that may be required by any applicable federal or
state securities laws:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO FORFEITURE IN FAVOR OF THE
COMPANY AND MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF A RESTRICTED
STOCK AWARD AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON
FILE WITH THE SECRETARY OF THE COMPANY.

(b) Executive agrees that, in order to ensure compliance with the restrictions referred to
herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if
any, and that, if the Company transfers its own securities, it may make appropriate notations to
the same effect in its own records.

(c) The Company shall not be required: (i) to transfer on its books any Shares that have been
sold or otherwise transferred in violation of any of the provisions of this Agreement, or (ii) to
treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or
other transferee to whom such Shares shall have been so transferred.

5.6 Tax Withholding.

(a) The Company shall be entitled to require payment of any sums required by federal, state or
local tax law to be withheld with respect to the transfer of the Shares or the lapse of the
Forfeiture Restriction with respect to the Shares, or any other taxable event related thereto. The
Company may permit Executive to make such payment in one or more of the forms specified below:

(i) by cash or check made payable to the Company;

(ii) by the deduction of such amount from other compensation payable to Executive;

 

4

 

(iii) by tendering Shares which are not subject to the Forfeiture Restriction and which
have a then current Fair Market Value (as defined in Section 5.6(c) below) not
greater than the amount necessary to satisfy the Company’s withholding obligation based on
the minimum statutory withholding rates for federal, state and local income tax and payroll
tax purposes; or

(iv) in any combination of the foregoing.

(b) In the event Executive fails to provide timely payment of all sums required by the Company
pursuant to Section 5.6(a), the Company shall have the right and option, but not
obligation, to treat such failure as an election by Executive to provide all or any portion of such
required payment by means of tendering Shares in accordance with Section 5.6(a)(iii).

(c) As used herein, the term “Fair Market Value” means if the Shares are listed on any
national securities exchange, the closing sales price, if any, on the largest such exchange on the
valuation date, or, if none, on the most recent trade date immediately prior to the valuation date
provided such trade date is no more than thirty (30) days prior to the valuation date. If the
Shares are not then listed on any such exchange, the fair market value of such Shares shall be the
closing sales price if such is reported, or otherwise the mean between the closing “Bid” and the
closing “Ask” prices, if any, as reported in the National Association of Securities Dealers
Automated Quotation System (“NASDAQ”) for the valuation date, or if none, on the most recent trade
date immediately prior to the valuation date provided such trade date is no more than thirty (30)
days prior to the valuation date. If the Shares are not then either listed on any such exchange or
quoted in NASDAQ, or there has been no trade date within such thirty (30) day period, the fair
market value shall be the mean between the average of the “Bid” and the average of the “Ask”
prices, if any, as reported in the National Daily Quotation System for the valuation date, or, if
none, for the most recent trade date immediately prior to the valuation date provided such trade
date is not more than thirty (30) days prior to the valuation date. If the fair market value
cannot be determined under the preceding three sentences, it shall be determined in good faith by
the Board of Directors .

5.7 Notices. Any notice to be given under the terms of this Agreement to the Company
shall be in accordance with the notice provisions set forth in Section 11 of the Employment
Agreement. By a notice given pursuant to this Section 5.7 or Section 11 of the
Employment Agreement, either party may hereafter designate a different address for notices to be
given to that party.

5.8 Titles. Titles are provided herein for convenience only and are not to serve as a
basis for interpretation or construction of this Agreement.

5.9 Governing Law; Severability. This Agreement shall be administered, interpreted
and enforced under the laws of the State of Delaware without regard to conflicts of laws thereof.
Should any provision of this Agreement be determined by a court of law to be illegal or
unenforceable, the other provisions shall nevertheless remain effective and shall remain
enforceable.

5.10 Conformity to Securities Laws. Executive acknowledges that this grant is
intended to conform to the extent necessary with all provisions of the Securities Act and the
Exchange Act of 1933, as amended and any and all regulations and rules promulgated by the
Securities and Exchange Commission thereunder, and state securities laws and regulations. To the
extent permitted by applicable law, this Agreement shall be deemed amended to the extent necessary
to conform to such laws, rules and regulations.

5.11 Amendments. This Agreement may not be modified, amended or terminated except by
an instrument in writing, signed by Executive and by a duly authorized representative of the
Company.

5.12 No Employment Rights. Nothing in the this Agreement shall confer upon Executive
any right to continue in the employ of the Company or any subsidiary or shall interfere with or
restrict in any way the rights of the Company and its subsidiaries, which are expressly reserved,
to discharge Executive at any time for any reason whatsoever, with or without cause, except to the
extent expressly provided otherwise in a written agreement between the Company and Executive.

 

5

 

5.13 Successors and Assigns. The Company may assign any of its rights under this
Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the
successors and assigns of the Company. Subject to the restrictions on transfer herein set forth,
this Agreement shall be binding upon Executive and his or her heirs, executors, administrators,
successors and assigns.

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

 

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[Restricted Stock Award Agreement]exh101.htm

Exhibit 10.1

AEDC Dealer Agreement 

THIS AGREEMENT is made this 8th day of July, 2009 by and between Alternative Energy Development Corporation a Nevada Corporation with its principal place of business at 17505 N 79th Ave Suite #309 Glendale, AZ 85308 (hereinafter referred to as “Company”)
and Bennett Wholesale Distributors LLC with its principal place of business at 1201 Main Street, Suite 1980, Columbia South Carolina 29201 (hereafter referred to as “Dealer”). 

 

BACKGROUND 

 

The Company is engaged in the development and marketing of E-3 FUEL SAVER® integrated vehicle Fuel Conservation Equipment (as hereinafter defined), along with various Products, as hereinafter defined. Dealer has requested the right to resell such Products to its customers. 

 

 

IN CONSIDERATION of the premises, the mutual covenants of the parties, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, Company and Dealer hereby agree as follows: 

1. Definitions 

The following words shall have the following meanings when used in this Agreement: 

1.1 “Prices” shall mean company’s then-current prices for Products as may be provided by Company to Dealer and its customers, and as initially set forth in  Schedule A, "Price List" attached hereto.

 

1.2 "Proprietary Information” shall mean all ideas and concepts relating to company’s  equipment, computer software, marketing, implementation and designs for company’s software, and other technologies including, without limitation, patents,  trade secrets, plans,    specifications, copyrights, service marks, trademarks, source code,
object code and marketing plans. 

 

1.3 “Purchase Order” shall mean any document received by the Company from Dealer contracting, or promising to purchase e3 FUEL SAVER ® components as set forth in Schedule C  attached hereto and incorporated herein by reference. 

 

1.4 “Services” shall mean any services provided by Company or Dealer to customers  under this Agreement including, without limitation, installation and support  services as well as maintenance services. 

1.5 “Equipment” shall mean any AEDC® supplied equipment and AEDC® or e3 FUEL SAVER® derived products as described
in Company’s price list. 

1.6 “Terms and Conditions” shall mean Company’s terms and conditions which  include Company’s retail rental, lease and finance programs and all terms and conditions set forth in each and every Irrevocable Corporate Purchase Order more specifically defined in Schedule C. 

 

 

 

 

 

 

1.7 “Products” shall mean all Equipment, devices, and systems incorporating Equipment provided  or to be provided by the Company. 

1.8 “Territory” shall mean the primary sales area identified on Schedule B attached hereto and incorporated for all purposes. 

1.9 “Trademarks” shall mean the trademarks, service marks, and trade names (e3 Fuel Saver, e3 Fuel Saver 7000, e3 Solutions, e3 Fuel Saver System, AEDC, Alternative Energy Development Corporation)
and AEDC which Dealer hereby acknowledges are the property of Company. 

 

l.10 “Training” shall mean the educational training programs provided by Company to Dealer and Dealer’s personnel to allow Dealer to sell, install, and maintain the in-vehicle equipment. 

1.11 “Confidential Information” shall mean any information which is marked as “Confidential” or “Proprietary” by Company or otherwise intended by the Company to be maintained as confidential. The content or nature of the information shall not under any circumstance be deemed an indicator that such
information shall not be considered confidential.  Company and Company alone is the determining party as to the confidentiality of any information generated by Company. 

2. Appointment 

Subject to the terms herein, Company hereby grants Dealer the right to market and sell the Products in the Territory.  To induce Company to enter into this Agreement, Dealer represents and warrants to Company that Dealer is: 

a) qualified to resell the Products; 

b) sufficiently knowledgeable in the Products to do so; and

 

c) not competing, and will not compete during the term of this Agreement in the Territory or  any other geographic area in which the Products are, or may be, offered for license or sale by the Company or its various dealers and distributors, in any manner or form against the Company. 

3. Acceptance of Appointment 

Dealer hereby accepts appointment as a dealer of the Products on the terms and conditions provided for in this Agreement. 

4. Duties of Dealer 

In satisfaction of its duties under this Agreement, Dealer shall undertake the following duties in a professional manner to the satisfaction of Company: 

4.1 Provide installation and support services for Company's Products; 

4.2 Provide Company with quarterly sales reports setting forth Dealer’s sales goals, and performance; 

4.3 Notify Company immediately of any threatened or any actual legal action against Company or Dealer regarding the Products; 

 

 

 

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4.4 Comply with all applicable international, territorial, federal, provincial, and local laws, ordinances, and regulations in connection with Dealer 's performance of this Agreement; 

4.5 Obtain all licenses, permits, government approvals, customs duties, and any and all other licenses pertaining to shipment of equipment to, and services in the Territory; and 

4.6 Purchase Company's products and services, in accordance with the definition found in Article 1.7; No license, right or interest in any Company trademark, trade name or service marks is granted herein, except as expressly provided for below.  Except as provided in Section 21, neither Dealer nor any of Dealer’s customers
may use any Company trademark, trade name or service mark without Company's prior written consent. Dealer shall be responsible for installation of the Equipment, resale or licensing of the Company’s Products.  Dealer shall secure the execution of documents and instruments required by the Company with respect to such resale or licensing of the Products. 

5. Prices 

Dealer shall pay Company the prices for the Products purchased under this Agreement as set forth in the Company-Published Price List.  All prices may be amended by Company in its sole discretion from time to time.  All such changes shall become effective thirty (30) days after Dealer has received written notice from
Company.  New Products, when released, will be sold to Dealer at Company's then existing price. 

 

6. Purchase Orders

Dealer shall initiate purchase of the Products by submitting an Irrevocable Corporate  Purchase Order  (ICPO) using the form set forth in Schedule C of this Agreement through their Sales Representative.  All Purchase Orders shall be in writing in a form acceptable to Company.  All Purchase Orders
must be accepted in writing by Company and are not valid or effective until accepted by Company.  Company reserves the right to reject any Purchase Order. In the event any Purchase Order contains terms which are in addition to or in conflict with the terms of this Agreement or the Terms or Conditions, the Terms and Conditions of this agreement shall apply.  After acceptance of a Purchase Order Company shall deliver to a common carrier F.O.B. Company facilities.  Dealer assumes all
risks of loss or damage upon delivery of the Equipment to Dealer’s shipping destination. Dealer agrees that acceptance of Equipment shall occur upon delivery of the Equipment by the Company to Dealer or a common carrier. 

7. Payment 

Unless Dealer is approved for credit with Company, 100% payment for all purchases shall be delivered to the Company by Dealer prior to shipment of the applicable order.  Credit will be granted to Dealer on a case by case basis, initiated with Dealer's application for credit by submission of the Company’s form of credit application.  The
amount and term of credit extended to Dealer, if any, shall be at the discretion of the Company and is subject to change as the Company may deem appropriate.  

  

3

  

 

8. Delivery or Order 

After Company has accepted the Purchase Order, the Company will use reasonable efforts to fulfill any orders received from Dealer within 60 calendar days.  Company shall have no duty or obligation to deliver any Products if Dealer is in breach or default of this Agreement or any past due amount is owed by Dealer to Company. 

9. Term 

 Agreement shall become effective upon its execution by duly-authorized representatives of both Dealer and Company, and after an original signed copy is delivered to the Company and remain in full force and effect for the term of five (5) years from the date of execution.  This Agreement shall automatically terminate, unless
earlier terminated by Company pursuant to this Agreement, five (5) years from the date of this Agreement. 

 

10. Marketing 

Promotional material and advertisements or any material to be released to the public, including photographs, that utilize any trademarks of the Company or depict any of the Products shall be approved by an authorized executive officer of the Company in writing prior to its public release. 

11. Reporting and Forecasting 

11.1 Dealer and Company will meet at mutually agreeable times to review Dealer- forecasted purchases each quarter.  These meetings will be conducted via telephone or email unless other arrangements are required.  In such an event, each party shall bear its own expenses to attend the meeting. 

11.2 In order to facilitate customization, production scheduling and delivery of the Products, Dealer agrees to provide Company within ninety (90) calendar days from the date of this Agreement and quarterly thereafter during the term of this Agreement and any extension herein, a non-binding forecast for the following twelve (12) months
of the Dealer-anticipated equipment.  

 

12. Training, Installation and Support Services

Dealer shall be responsible for all Product installation and maintenance.  Dealer and Company understand and agree that initial  training of Dealer's support personnel will be provided by the Company, on Company’s premises.  Dealer will be responsible for travel expenses. 

12.1 Company will provide training material, technical documentation and support as deemed appropriate by the Company to familiarize Dealer with the installation of the systems; 

12.2 Company will provide training, subject to availability of Company resources, to Dealer personnel at one of Company's facilities when reasonably requested by the Dealer.  Dealer will bear the expenses of this training; 

12.3 Subsequent to Dealer’s receipt of relevant training outlined herein, the Dealer will respond in a timely and effective manner to all inquiries of Product customers concerning the operation of any Products.  Company agrees to provide a reasonable level of technical phone support for Dealer’s customers on any
technical or operational issues that Dealer cannot resolve directly. 

 

 

 

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12.4 All products purchased from Company by Dealer at prices which are offered as “Dealer-Only” prices may not be resold by Dealer or transferred to the property or custody of any other party under any circumstance whatsoever.  

13. Documentation 

13.1 Company agrees to provide one copy of each relevant user’s manual without charge.   Amended documentation will be provided to Dealer, as is necessary and appropriate for the installation and maintenance of customers' equipment. Additional copies of such manuals will be furnished at Company’s then existing
price. To the extent that such other information (including price, data/documentation and marketing information) furnished to Dealer is Confidential Information, the Dealer agrees to keep it in strictest confidence and not to disclose the confidential information. 

13.2 Dealer shall not make any change to any documents or manuals provided by Company to Dealer. 

 

14.  Equipment Service 

14.l Repairs under Warranty.  All repairs of the equipment made under warranty shall be made or authorized by the Company under the standard warranty for the applicable Product, as provided by the Company or a third party provider of the applicable Product. 

14.2 Repairs outside of Warranty.  Dealer may repair Equipment using Company standards and using only Company authorized repair parts and procedures.  If Company deems that repairs or modifications to Equipment were made outside of Company-approved guidelines, all warranties on the applicable Equipment will become
immediately void. Such repairs will not indicate any extension of the Product warranty by the Company. 

15. Confidential Information 

15.1 Dealer, its employees and agents shall retain all Confidential Information, as defined in Article 1 and to prevent disclosure of such Confidential Information, except as expressly provided for in this Section 15.1.  Company hereby states that the Product designs constitute a valuable asset of Company, and are to be considered
Proprietary Information.  Access by Dealer to Confidential Information shall be restricted to Dealer’s employees with a need to have access to such Confidential Information, each of whom shall have signed a confidentiality agreement containing protections benefiting the Company and no less restrictive than the provisions of this Section 15.  Dealer acknowledges that by virtue of this Agreement, Dealer acquires only the right to use the Confidential Information under the terms and conditions
of this Agreement for so long as it is in effect, and does not acquire any rights of ownership, title, or disclosure of the Confidential Information. 

15.2 Dealer shall not use, make, have made, distribute or disclose any copies of the Confidential Information, in whole or in part, without the prior written authorization of Company except as defined herein. 

15.3 Dealer shall inform its employees having access to the Confidential Information of Dealer’s limitations, duties and obligations regarding nondisclosure and copying of the Confidential Information.  Dealer agrees to protect and secure the Confidential Information with the same degree of care and confidentiality that
it employs to protect its own proprietary and/or confidential information. 

 

 

 

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16. Warranties 

16.1 Unless otherwise specified by the Company, Products developed by the Company are delivered with a warranty for (1) one year.  Products supplied by third parties are subject to the  applicable
warranties provided by such third parties, and the Company makes no additional  warranties with respect to such Products.   

16.2 Dealer shall in no way imply or state to its customers that any warranties not expressly given by the Company or applicable third parties are in effect with respect to the Products. 

16.3 Products suspected to be deficient may be delivered to Company, which will, as its sole obligation hereunder and at its option, replace or repair Products that the Company finds to be deficient. In the case of shipments related to warranty actions, Company will bear shipping costs for shipments to Dealer, and Dealer will bear shipping
costs for shipments to Company.  The party bearing shipping costs has exclusive choice of the method of shipping.  An RMA # shall be required on all returns.  

17. Limitation of Liability 

17.1 COMPANY DOES NOT MAKE ANY EXPRESS OR IMPLIED WARRANTIES (EXCEPT AS STATED ABOVE) INCLUDING, BUT NOT LIMITED TO, THE WARRANTIES OF DESIGN, MERCHANTIBILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR ARISING FROM A COURSE OF DEALING, USAGE OR TRADE PRACTICE. 

17.2 IN NO EVENT WILL COMPANY BE LIABLE FOR ANY LOST REVENUES OR PROFITS, OR OTHER SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, EVEN IF COMPANY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 

17.3 NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, COMPANY'S MAXIMUM LIABILITY FOR DAMAGES SHALL BE LIMITED TO THE PAYMENTS MADE BY DEALER UNDER THIS AGREEMENT FOR THE SPECIFIC PRODUCT THAT CAUSED THE ALLEGED DAMAGES. 

18. Limitation of Intellectual Property Liability 

18.1 The Company shall have no liability for any claim of copyright, trade secret or patent infringement based on the use of the Products or the use or combination of the Products and equipment, services or other materials not provided by Company. 

18.2 THE COMPANY SHALL HAVE NO LIABLITY WITH RESPECT TO ANY ALLEGED OR PROVEN INFRINGEMENT OF PATENTS, TRADE SECRETS AND COPYRIGHTS WITH RESPECT TO THE PRODUCTS OR ANY PARTS THEREOF. 

19. Disclaimer of Partnership or Agency 

The relationship between Company and Dealer under this Agreement is solely that of independent contractors.  Each of the parties is in no way the legal representative or agent of the other party for any purpose, shall not in any way hold themselves out as such, and shall have no power to assume or create, in writing or otherwise,
any obligation or responsibility of any kind, expressed or implied, in the name of or on behalf of the other party. 

 

 

 

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20. Indemnification 

Dealer will indemnify, defend and hold Company harmless from any and all liabilities, losses, obligations, expenses (including without limitation to attorney’s fees) and costs arising in connection with any lawsuit, proceedings, or other action (i) arising out of the operation of Dealer's business or (ii) related to any claim by a
third party based, in whole or in part, on Dealer's distribution, use, or installation of Products. The activities of any of Dealer’s employees, agents of representatives will be considered activities of the Dealer for purposes of this Section.  Company will have the right, but not the obligation, to assume the defense of any such lawsuit, proceeding, or action.  Company and Dealer will each give the
other prompt notice of any such claim, lawsuit, proceeding or action. 

21. Use of Company Trademarks and Service Marks 

21.1 During the term of this Agreement, Dealer shall have a limited license to use the Trademarks in connection with Dealer’s promotion of the Products, but only in strict compliance with such license and the policies, instructions and guidelines of Company.  This compliance shall include proper display of trademark notices
and warnings with each use of trademark (e.g. e3 Fuel saver, e3 Fuel Saver 7000, e3 Solutions, e3 Fuel Saver System, AEDC, ®, is a registered trademark of Alternative Energy Development Corporation), and any use of such Trademarks shall be subject to prior approval of the Company. 

21.2 Dealer acknowledges the exclusive right, title and interest of the Company in and to the Trademarks; 

21.3 Nothing contained in this Agreement shall be construed as conveying to Dealer any right, title of interest in or to any of the Trademarks other than an express right to a permissive use thereof in connection with the promotion of the Products; 

21.4 Dealer shall cooperate to the fullest extent possible with Company or its nominee to take such actions as Company in its sole discretion may consider necessary to protect any of the Trademarks; 

21.5 Dealer shall fully cooperate with Company in maintaining and defending the ownership and validity of each of the Trademarks against infringement and claims of infringement, Dealer will promptly notify Company of (i) any infringement or unauthorized use of any Trademark by any third party, or (ii) any assertion by any third party
that Dealer’s use of any Trademark constitutes infringement.  Company shall not be obligated to initiate or defend legal action with respect to any Trademark, and Dealer  shall not initiate or defend any such action itself without Company's prior written consent; and 

21.6 Dealer hereby agrees and warrants that Dealer will not incorporate all or any portion of the Trademarks into Dealer’s corporate name or trade names. 

22. Force Majeure 

22.1     If the performance of Company is made impossible by reason of any circumstances beyond Company's reasonable control, including without limitation vendor delay, fire, explosion, power failure, acts of God, war, revolution, civil commotion, or acts of public enemies, any law, order, regulation, ordinance,
or requirement of any government or legal body or any representative of any such government or legal body, labor unrest, including without limitation, strikes, slowdowns, picketing or boycotts, then Company shall be excused from such performance on a day-to-day basis to the extent of such interference, provided that Company shall use reasonable efforts to remove such causes of nonperformance. Under no circumstances shall economic considerations, economic impracticability or inefficiencies delay or excuse Dealer’s
performance or be considered an event of "Force Majeure." 

 

 

 

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23. Termination 

23.1 Company may at its option forthwith terminate this Agreement hereunder by giving a thirty (30) days advance written notification to the other party, signed by the same person who originally signed the agreement (or that person's authorized representative). If no reply is received, termination occurs anyway (if the receiving party
refuses to answer or otherwise fails to reply within thirty (30) days) in accordance with Section 29 of this Agreement. 

23.2 Dealer may not at its option forthwith terminate this Agreement hereunder prior to the end of the Term as defined in Section 9 of this Agreement. b

23.3 Company shall have the right to immediately terminate this Agreement without prior notice or penalty if Dealer, its employees, or agents shall materially breach this Agreement. 

24. Effect of Termination and/or Expiration 

24.1 Upon termination or expiration of this Agreement for whatever reason, Dealer waives the applicability and protection of all laws, regardless of jurisdiction, giving to Dealer any rights of indemnity or other compensation in lieu of notice or otherwise arising upon termination of this Agreement or any other relationship between Company
and Dealer.  Company will not be required to indemnify or pay any amount to Dealer, whether as compensation, balancing, relief or otherwise, as a result of the termination of this Agreement. 

24.2 Upon the expiration or termination of this Agreement for whatever reason, Dealer shall promptly return to Company all Confidential Information furnished hereunder together with all copies made therefrom and shall not retain copies hereafter except for those necessary for the use, operation and maintenance of the Equipment by Dealer’s
employees or contractors. 

24.3 Upon the expiration or termination of this Agreement for whatever reason, Dealer will immediately cease all use of the Trademarks and deliver to Company or destroy all materials bearing the Trademarks, including all advertising and promotional materials.  Dealer shall also take all actions necessary to transfer and assign
to Company or its nominee any right, title or interest in or to any of the Trademarks which Dealer may have acquired in any manner as a result of its activities under this Agreement. 

25. Entire Agreement 

This Agreement, the schedules hereto attached and the documents referenced herein supersede any and all prior agreements, discussions and negotiations between Dealer and Company.  They set forth the entire agreement and understandings between the parties as to the subject matter of this Agreement.  Neither of the parties
shall be bound by any terms, conditions, definitions, waivers, warranties or representations with respect to the subject matter of this Agreement, other than as expressly provided in this Agreement or duly set forth on or subsequent to the date hereof in a writing signed by a proper and duly authorized representative of whichever of the parties is to be bound hereby. 

  

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26. Assignment 

This Agreement and the Dealer’s obligations hereunder are unassignable and nontransferable by the Dealer to any other party without the prior written consent of an authorized executive officer of Company.  For purposes of this Section 26, any transfer of a controlling interest in Dealer shall be considered an assignment. 

27. Governing Law 

This Agreement shall be deemed to have been entered into in the County of Maricopa, State of Arizona, and all questions concerning the validity, interpretation or performance of any of the terms, conditions and provisions of this Agreement or of any of the rights or obligations of the parties shall be governed by, and resolved in accordance
with, the laws of the State of Arizona.  Any and all actions or proceedings, at law or in equity, to enforce or interpret the provisions of this Agreement shall be litigated in courts having situs within the State of Arizona, and each party hereby consents expressly to the jurisdiction of any local, state or federal court located within the County of Maricopa, State of Arizona and consents that any service of process in such action or proceeding may be made by personal service upon such party wherever
such party may be then located, or by certified or registered mail directed to such party at such party’s last known address. The parties hereby irrevocably commit to the jurisdiction and venue of such courts and waive any claims of forum non conveniens or other causes for change of venue.

28. Waiver 

Any failure of Company to enforce, at any time or for any period of time, any of the provisions under this Agreement shall not be construed as a waiver of the right of Company to enforce such provisions unless said waiver is in writing, and signed by an authorized executive officer of Company. 

29. Notices 

Any notice or other communications required or permitted to be given under or in connection with this Agreement shall be in writing and shall be deemed to have been duly given or made when personally delivered on the fifth (5th) day following the date it is sent, if sent by United States registered or certified mail, postage prepaid, return
receipt requested, to the following addresses: 

 

	 If to Company: 	If to Dealer: 
	 	 
	 President 	Owner
	 Alternative Energy Development Corporation	Bennett Wholesale Distributors, LLC
	 17505 N 79th Ave Suite #309	1201 Main Street, Suite 1980 
	 Glendale, AZ  85308	Columbia, South Carolina, 29201

 

 

Either party may change its address for notices hereunder by giving notice of such change in writing to the other party. 

  

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30. Severability of Provisions 

Each provision of this Agreement shall be considered severable and if for any reason any provision or provisions herein are determined to be invalid or contrary to any existing or future law, such invalidity shall not impair the operation of this Agreement or affect those portions of this Agreement which are valid. 

31. Background, Enumeration, and Headings 

The Background, enumeration and headings contained in this Agreement are for convenience of reference only and are not intended to have any substantive significance in interpreting this Agreement. 

32. Survival 

Dealer recognizes and agrees that its obligations under this Agreement shall survive the termination of the Agreement, and Dealer shall be bound by such obligations after termination hereof. 

33. Captions and Interpretation 

Captions of the paragraphs of this Agreement are for convenience and reference only, and the words contained in those captions shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this Agreement.  The language in all parts to this Agreement, in all cases,
shall be construed in accordance with the fair meaning of that language as if that language was prepared by all parties and not strictly for or against any party.

34. Further Assurances 

Each party shall take any and all action necessary, appropriate or advisable to execute and discharge such party’s responsibilities and obligations created by the provisions of this Agreement and to further effectuate, perform and carry out the intents and purposes of this Agreement and the relationship contemplated by the provision
of this Agreement.

35. Number and Gender 

Whenever the singular number is used in this Agreement, and when required by the context, the same shall include the plural, and vice versa; the masculine gender shall include the feminine and neuter genders, and vice versa; and the word ‘person’ shall include corporation, firm, trust, association, governmental authority, municipality,
association, sole proprietorship, joint venture, association, organization, estate, joint stock company, partnership, or other form of entity.

 

 

 

  

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36. Execution in Counterparts 

This Agreement may be prepared in multiple copies and forwarded to each of the parties for execution.  This Agreement shall become effective when the Corporation receives a copy or copies of this Agreement executed by the parties in the names as those names appear at the end of this Agreement. All of the signatures of the parties
may be affixed to one copy or to separate copies of this Agreement and when all such copies are received and signed by all the parties, those copies shall constitute one agreement which is not otherwise separable or divisible.  The Corporation shall keep all of such signed copies and shall conform one copy to show all of those signatures and the dates thereof and shall mail a copy of such conformed copy to each of the parties within thirty (30) days after the receipt by such counsel of the last signed
copy, and shall cause one such conformed copy to be filed in the principal office of the Corporation. 

37. Successors and Assigns 

This Agreement and each of the provisions of this Agreement shall obligate and inure to the benefit the heirs, executors, administrators, successors and assigns of each of the parties; provided, however, nothing specified in this paragraph shall be a consent to the assignment or delegation by any party of such party’s respective rights
and obligations created by the provisions of this Agreement.

38. Reservation of Rights 

The failure of any party at any time hereafter to require strict performance by any other party of any of the warranties, representations, covenants, terms, conditions and provisions specified in this Agreement shall not waive, affect or diminish any right of such failing party to demand strict compliance and performance therewith and with
respect to any other provisions, warranties, terms and conditions specified in this Agreement.  Any waiver of any default not waive or affect any other default, whether prior or subsequent thereto, and whether the same or of a different type.  None of the representations, warranties, covenants, conditions, provisions and terms specified in this Agreement shall be deemed to have been waived by any act or knowledge of either party or such party’s agents, officers or Representatives, and
any such waiver shall be made only by an instrument in writing, signed by the waiving party and directed to each non-waiving party specifying such waiver.  Each party reserves such party’s rights to insist upon strict compliance with the terms, conditions, warranties, obligations, representations, covenants  and  provisions of this Agreement at all times.

39. Concurrent Remedies 

No right or remedy specified in this Agreement conferred on or reserved to the parties is exclusive of any other right or remedy specified in this Agreement or by law or equity provided or permitted; but each such right and remedy shall be cumulative of, and in addition to, every other right and remedy specified in this Agreement or now
or hereafter existing at law or in equity or by statute or otherwise, and may be enforced concurrently therewith or from time to time.  The termination of this Agreement for any reason whatsoever shall not prejudice any right or remedy which either party may have, either at law, in equity or pursuant to the provisions of this Agreement.

40. Consent to Agreement 

By executing this Agreement, each party, for itself, represents such party has read or caused to be read this Agreement in all particulars, and consents to the rights, conditions, duties and responsibilities imposed upon such party as specified in this Agreement.

  

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41. Authority of Signers 

The parties represent and warrant that the person whose signature is set forth  below on behalf of a party is fully authorized to execute this Agreement on behalf of that party.   

42. Fair Meaning

The parties agree that the wording of this Agreement shall be construed as a whole according to its fair meaning, and not strictly for or against any of the parties to this Agreement, including the party responsible for the drafting of this document.  

43. Mutual Drafting  

The parties hereto acknowledge and agree that they are sophisticated and have been represented by attorneys who have carefully negotiated the provisions of this Agreement.  As a consequence, the parties also agree that they do not intend that the presumptions of any laws or rules relating to the interpretation of contracts against
the drafter of any particular clause should be applied to this Agreement and therefore waive their effect.

44. Amendment

The parties agrees that no amendment of this Agreement shall be effective unless it shall be in writing and signed by each of the parties hereto.

45. Terms and Conditions of License Grant 

All licenses of Trademarks granted to Dealer under this Agreement or otherwise, shall be subject to and in conformance with Company’s terms and conditions, and the failure to do so constitutes a material breach of this Agreement allowing Company to immediately terminate this Agreement without notice or penalty. 

IN WITNESS WHEREOF, and intending to be legally bound, the parties have executed this Dealer Agreement under seal, effective the date first written above. 

Company: 

Alternative Energy Development Corporation

 

 By:   JERRY ALVAREZ 

          Jerry Alvarez, President 

  

 

Dealer:  (must be officer or owner)  

Bennett Wholesale Distributors, LLC  

Signature: JAMEEL BENNETT 

Printed name: Jameel Bennett          Title: Owner

 

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Schedule A- Price List

JAMEEL BENNET AUTHORIZES BENNETT WHOLSALE DISTRIBUTORS, LLC TO ENTER PURCHASE ORDER TERMS AND SCHEDUAL THE FOLLOWING PRODUCT(S) ON THE TERMS AND CONDITIONS HEREUNDER.

 

PRODUCT:

E3 FUEKL SAVER DEVICE (“UNIT”)

SPECIFICATIONS:

CAR ACCESSORY

QUANTITY:

5,000 UNITS

PACKING:

N/A

SHIPPING TERMS:

UPS GROUND 

DEPOSIT:

$15,000.00 TO BE DEDUCTED FROM SUBTOTAL OF $1,000,000.00 (USD)

PRICE PER UNIT: 

$200.00 (USD) FOB CALIFORNIA

MINIMUM SHIPPMENT OF 200 UNITS PER MONTH OVER THE DURATION OF TWENTY – FOUR MONTHS FOLLOWING THE FIRST SHIPPMENT FOR FIFTY UNITS

INSPECTIONS:

10 DAY RETURN POLICY TO CUSTOMER FOR ANY DAMAGED GOODS FOR EXCHANGE ONLY

PAYMENT TERMS:

C.O.D. OR CREDIT CARD PAYMENT DUE UPON DELIVERY OF GOODS BILLED BY COMMERCIAL INVIOCE 

CONTRACT PERIOD:

START DATE OF JULY 20, 2009 AND ENDING SEPTEMBER 26, 2011

 

201 Main Street, Suite 1980, Columbia South Carolina 29201

___________________________________________________

COMPANY ADDRESS

 

(888) 431-2224

___________________________________________________

COMPANY TELEPHONE NUMBER 

___________________________________________________

COMPANY FAX NUMBER 

IN ACCORDANCE WITH THE TERMS AND CONDITIONS SET FORTH IN THE DEALERS AGREEMENT BETWEEN BENNETT  WHOLESALE DISTRIBUTORS, LLC AND ALTERNATIVE ENERGY CORPORATION, DO HEREBY SUBMIT THIS IRREVOCABLE CORPORATE PURCHASE ORDER (ICPO) AS SCHEDUAL A

 

13

 

 

Schedule B- Territory 

 

Company offers the following territorial rights to Dealer: 

 

 

1. Non-Exclusive Territory 

 

 

The following geographical regions shall be considered the Territory for purposes of this Agreement (Must List Counties for web look up, limited to 100 Counties): 

 

North Carolina, South Carolina, Georgia

The foregoing definition is subject to the following exclusions; 

Dealer holds exclusive rights to all business sales of the E5 Fuel Saver within the territories listed above that have been established on day of/or after effective date of this agreement.

 

Dealer’s right to distribute Products in the Territory, unless earlier terminated as provided for herein, will be valid for a period of five (5) years, beginning on the executed date of this Agreement. 

 

	 Company: 	Dealer: 
	 	 
	 Alternative Energy Development Corporation	Bennett Wholesale Distributors, LLC
	 	 
	 By:  JERRY ALVAREZ	By:  JAMEEL BENNETT
	 Printed Name: Jerry Alvarez	Printed Name:  Jameel Bennett 
	 Title: President 	Title: Owner

 

 

 

 

 

  

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RESELLER CERTIFICATE 

 

Name of Purchaser:  Bennett Wholesale Distributors, LLC

 

Address of Purchaser:  2101 Main Street, Suite 1980 Columbia South Carolina, 29201

I HEREBY CERTIFY: That I hold valid Sales and Use Tax Permit No. 040 71052 4 

 

 

issued pursuant to the Sales and Use Tax Law; that I am engaged in the business of selling: 

 

_____________________________________________________________________________ 

 

I certify that the tangible personal property described herein which I shall purchase from Alternative Energy Development Corporation will be resold by me in the form of tangible personal property, provided, however, that in the event any of such property is used for any purpose other than retention, demonstration, or display while holding
it for sale in the regular course of business, it is understood that I am required by Sales and Use Tax Law to report and pay tax, measured by the purchase price of such property or other authorized amount. 

Description of property to be purchased:  

E-3 FUEL SAVER

 

Date July 8th, 2009   

 

Printed name of Purchaser (Company name): Bennett Wholesale Distributors, LLC

 

Phone: (888) 431-2224 

 

By and Title:        JAMEEL BENNETT        Owner 

              (Signature of Purchaser or Authorized Agent) 

 

Printed name of signer: Jameel Bennett 

 

 

  

15

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