Document:

exv10w32

 

Exhibit 10.32

ADVISORY SERVICES AGREEMENT

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

RECITALS

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

	 	B.  	Advisor is a well respected international systems engineer. The Company desires
to engage Advisor, and Advisor desires to serve the Company, in an advisory capacity on
and subject to the terms of this Agreement.

     THEREFORE, the Company and Advisor hereby agree as follows:

     Section 1. Scope of Services Provided.

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

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

     Section 2. Compensation; Expenses.

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

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

     Section 3. Non-Disclosure Obligations.

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

 

 

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

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

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

     Section 5. Miscellaneous Provisions.

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

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

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

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

	 	 	 	 	 	 	 
	ADVISOR
	 	SAVE THE WORLD AIR, INC.
	 
	 
	By:

	 	/s/ JACK READER
	 	By:
	 	/s/ EUGENE E. EICHLER
	

	 	 
	 	 	 	 
	

	 	Jack Reader
	 	Name:
	 	Eugene E. Eichler
	

	 	 	 	Title:
	 	Chief Operating Officer

2

 

ANNEX A

Subscription Agreement

 

 

SUBCRIPTION AGREEMENT

SAVE THE WORLD AIR, INC.

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

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

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

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

 

 

	   	any other applicable law, either federal or state. This subscription and
the representations and warranties contained herein shall be binding upon
the heirs, legal representatives, successors and assigns of the undersigned.
	 
	6.  	The undersigned acknowledges that he or she is able to bear, and understands,
the economic risks of the proposed investment and all other risks of the
Company’s business.
	 
	   	The undersigned represents that he or she is:
	 
	   	An Accredited Investor, as that term is defined by Regulation D of the Securities and
Exchange Commission, which means any investor meeting at least one of the following
conditions:

	 	(i)  	Any natural person whose individual net worth
(or joint net worth with that person’s spouse, if applicable)
at the time of purchase exceeds $1,000,000; or
	 
	 	(ii)  	Any natural person who had an individual income
in excess of $200,000 or joint income with that person’s spouse
in excess of $300,000 in each of the two most recent years and
who reasonably expects an income in excess of $200,000 or joint
income with that person’s spouse in excess of $300,000 in the
current year; or
	 
	 	(iii)  	Any other Accredited Investor as that term is
defined in Regulation D as adopted by the Securities and
Exchange Commission.

	8.  	(a)     The undersigned is aware of the restrictions of transferability of the
Common Stock and further understands and acknowledges that any certificates
evidencing the Common Stock will bear the following legends, to which such
interests will be subject:
	 
	   	THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR QUALIFIED FOR SALE UNDER ANY STATE SECURITIES LAWS
(COLLECTIVELY, “SECURITIES LAWS”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED
UNLESS REGISTERED OR QUALIFIED FOR SALE UNDER ALL APPLICABLE SECURITIES LAWS OR UNLESS, IN
THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER, IN FORM AND SUBSTANCE SATISFACTORY TO THE
ISSUER, ANY SUCH OFFER, SALE OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION OR
QUALIFICATION REQUIREMENTS OF SUCH SECURITIES LAWS.

	 	(b)  	The undersigned understands that following the purchase of the
Common Stock, the Common Stock may only be disposed of pursuant to
either (i) an effective registration statement under the Act, or (ii)
an exemption from the registration requirements of the Securities Act
of 1933.
	 
	 	(c)  	The Company has neither filed such a registration statement
with the SEC or any state authorities nor agreed to do so, nor
contemplates doing so in the future for this offering of Common Stock,
and in the absence of such a registration statement or exemption, the
undersigned may have to hold the Common Stock indefinitely and may be
unable to liquidate them in case of an emergency.
	 
	 	(d)  	The undersigned acknowledges that the Company is not obligated
and does not propose to furnish the undersigned with information
necessary to enable it to be able to make sales under Rule 144 of the
Securities Act of 1933.

	9.  	The undersigned represents that he or she is a resident of Massachusetts and makes the following
representation:
	 
	   	I, THE UNDERSIGNED, REPRESENT THAT I HAVE A PRE-EXISTING PERSONAL OR BUSINESS RELATIONSHIP
WITH THE COMPANY, ANY OFFICER, DIRECTOR OR CONTROLLING PERSON THEREOF OR HAVE, THROUGH
MYSELF OR THROUGH MY UNAFFILIATED PROFESSIONAL ADVISER, THE BUSINESS OR FINANCIAL EXPERIENCE
TO PROTECT MY INTERESTS IN CONNECTION WITH MY SUBSCRIPTION HERETO.
	 
	   	FURTHER, I AM PURCHASING THE COMMON STOCK OFFERED HEREBY FOR INVESTMENT

 

 

	   	AND NOT WITH A VIEW TOWARD DISTRIBUTION THEREOF.
	 
	10.  	This Subscription Agreement has been delivered in, and shall be construed in
accordance with the laws of the State of California. Subject to the provisions
of the paragraph immediately following, any action in connection with this
Subscription Agreement shall be brought in the appropriate state or federal
court in and for the County of Los Angeles, State of California, which shall
have exclusive jurisdiction over such action.

* * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * * * *

* * * * * * * * * * * * *
*

	 	 	 	 	 
	 	Executed as of this 16, day of September, 2002.

 	 
	 	Save the World Air, Inc.

a California corporation

 	 
	 	By  	/s/ Jack Reader
	 
	 	Its  	Jack Reader
	 
	 

                         The
above and foregoing Subscription accepted this ___day of _________, 2002

	 	 	 	 	 
	 	Save the World Air, Inc.

A Nevada corporation

 	 
	 	By:  	/s/ Eugene E. Eichler	 
	 	Its:  	Eugene E. Eichler
	 
	 

 

 

ANNEX B

Confidentiality Agreement

 

 

August     ,2002

STRICTLY PRIVATE AND CONFIDENTIAL

BY FACSIMILE

Save the World Air, Inc.

29229 Canwood Street, Suite 206

Agoura Hills, California 91301

Attention: Eugene E. Eichler, Chief Financial Officer

Gentlemen:

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

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

I shall promptly redeliver to the Company all written material containing or reflecting any
information contained in the Confidential Information (whether prepared by the Company or

 

 

Save the World Air, Inc.

Page 2 of 2

otherwise) if I choose not to proceed with the advisory services, and shall not retain any copies,
extracts, or other reproductions in whole or in part of such written material. All documents,
memoranda, notes, and other writings whatsoever, prepared by me or my advisors based on the
information contained in the Confidential Information shall be destroyed, and such destruction
shall be certified in writing to the Company by an authorized officer supervising such destruction.

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

No failure or delay by the Company in exercising any right, power or privilege under this letter
shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any
other or further exercise of any right, power or privilege. If there should arise any conflict
between the terms of this letter agreement and any other agreement concerning the advisory
services, the provisions of this letter agreement shall control. This letter shall be governed by
laws of California, U.S.A, in all respects. Any assignment of this letter by me without our prior
written consent shall be void.

I certify that no Confidential Information, or any portion thereof, will be exported to any country
in violation of the United States Export Administration Act and regulations thereunder. I hereby
further certify that I am not a resident of any of the following countries: Iraq, Iran, Libya,
North Korea, Syria, Laos, Mongolian People’s Republic, Cuba, Cambodia, North Korea, Nicaragua, or
the People’s Republic of China.

* * *

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	/s/ Jack Readerexv10w33

 

Exhibit 10.33

ADVISORY SERVICES AGREEMENT

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

RECITALS

	 	A.  	The Company has certain rights to a proprietary technology (the “Technology”)
for a product known as the Zero Pollution-Fuel Saving Device (“ZERO Device”) that can
be used on motor vehicles to reduce pollution and improve fuel efficiency. The Company
desires to further develop the Technology and market and sell the ZERO Device.
	 
	 	B.  	Advisor is well known to the industry in the Company’s business. The Company
desires to engage Advisor, and Advisor desires to serve the Company, in an advisory
capacity on and subject to the terms of this Agreement.

     THEREFORE, the Company and Advisor hereby agree as follows:

     Section 1. Scope of Services Provided.

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

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

     Section 2. Compensation. Expenses.

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

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

     Section 3. Non-Disclosure Obligations.

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

     Section 4.

     4.1 Use of Advisor’s Name and Likeness

     The Company will not use Advisor’s name or likeness in any advertising or marketing/
promotional material without written approval or consent, which shall not be unreasonably
withheld. Except as may be expressly agreed to by the parties hereto in writing , the Company shall
acquire no

 

 

ownership or rights in or to Advisor’s name or likeness that by its use or incorporation in
any company advertising or promotional materials other than the right to use , duplicate and
distribute such name or likeness as and to the extent to which Advisor’s may have previously
consented.

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

     Section 5. Miscellaneous Provisions.

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

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

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

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

	 	 	 
	ADVISOR

	 	SAVE THE WORLD AIR, INC.
	 
	 	 
	By: /s/ Nate Sheldon

Nate Sheldon

	 	By: /s/ Eugene E. Eichler

Name: Eugene E. Eichler

Title: Chief Operating Officer

2

 

ANNEX A

Subscription Agreement

 

 

SUBSCRIPTION AGREEMENT

SAVE THE WORLD AIR, INC.

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

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

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

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

 

 

	5.  	(a) The undersigned is aware of the restrictions of transferability of the Common Stock and
further understands and acknowledges that any certificates evidencing the Common Stock will
bear the following legends, to which such interests will be subject:
	 
	   	THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR QUALIFIED FOR SALE UNDER ANY STATE SECURITIES LAWS
(COLLECTIVELY, “SECURITIES LAWS”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED
UNLESS REGISTERED OR QUALIFIED FOR SALE UNDER ALL APPLICABLE SECURITIES LAWS OR UNLESS, IN
THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER, IN FORM AND SUBSTANCE SATISFACTORY TO THE
ISSUER, ANY SUCH OFFER, SALE OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION OR
QUALIFICATION REQUIREMENTS OF SUCH SECURITIES LAWS.

	 	(b)  	The undersigned understands that following the purchase of the Common Stock, the Common
Stock may only be disposed of pursuant to either (i) an effective registration statement under
the Act, or (ii) an exemption from the registration requirements of the Securities Act of
1933.
	 
	 	(c)  	The Company has neither filed such a registration statement with the SEC or any state
authorities nor agreed to do so, nor contemplates doing so in the future for this offering of
Common Stock, and in the absence of such a registration statement or exemption, the
undersigned may have to hold the Common Stock indefinitely and may be unable to liquidate them
in case of an emergency.
	 
	 	(d)  	The undersigned acknowledges that the Company is not obligated and does not propose to
furnish the undersigned with information necessary to enable it to be able to make sales under
Rule 144 of the Securities Act of 1933.

	6.  	The undersigned represents that he or she is a resident of ___and makes the
following representation:

	 	   	I, THE UNDERSIGNED, REPRESENT THAT I HAVE A PRE-EXISTING PERSONAL OR BUSINESS RELATIONSHIP
WITH THE COMPANY, ANY OFFICER, DIRECTOR OR CONTROLLING PERSON THEREOF OR HAVE, THROUGH
MYSELF OR THROUGH MY UNAFFILIATED PROFESSIONAL ADVISER, THE BUSINESS OR FINANCIAL EXPERIENCE
TO PROTECT MY INTERESTS IN CONNECTION WITH MY SUBSCRIPTION HERETO.
	 
	 	   	FURTHER, I AM PURCHASING THE COMMON STOCK OFFERED HEREBY FOR INVESTMENT AND NOT WITH A VIEW
TOWARD DISTRIBUTION THEREOF.
	 
	 	7.  	This Subscription Agreement has been delivered in, and shall be construed in accordance with
the laws of the State of California. Subject to the provisions of the paragraph immediately
following, any action in connection with this Subscription Agreement shall be brought in the
appropriate state or federal court in and for the County of Los Angeles, State of California,
which shall have exclusive jurisdiction over such action.

Executed as of this___

Day of August, 2002

By /s/ Nathan E Sheldon

Nate Sheldon

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

* * * * * * * * * * * * * * * * * * * * *

 

 

The above and foregoing
Subscription accepted this ___day of___, 2002.

	 	 	 
	 

	 	Save the World Air, Inc.
  A
Nevada corporation

	 	 	 
	 

	 	By: /s/ Eugene E. Eichler

Its: Chief Operating Officer

 

 

ANNEX B

Confidentiality Agreement

 

 

August  , 2002

STRICTLY PRIVATE AND CONFIDENTIAL

BY FACSIMILE

Save the World Air, Inc.

29229 Canwood Street, Suite 206

Agoura Hills, California 91301

Attention: Eugene E. Eichler, Chief Financial Officer

Gentlemen:

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

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

 

 

Save the World Air, Inc.

Page 2 of 2

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

* * *

Very truly yours,

/s/ Nathan E. Sheldon

Nate Sheldon

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