Document:

EXHIBIT 10.10

 

	
  CoolSavings
  Inc.

  	
   

  	
  Insertion Order

  
	
  360
  N. Michigan Ave., 19th floor, Chicago, IL 60601

  	
   

  	
  #200502196

  
	
  phone
  (312) 224-5000 fax (312) 053-0436

  	
   

  	
   

  

 

	
  1 Advertiser Information

  	
   

  	
  2 Billing (Customer) Information

  	
   

  	
  3 CoolSavings Contacts

  
	
  Business

  Name

  	
   

  	
  Lifederma

  	
   

  	
  Business

  Name

  	
   

  	
  Amerikal Nutraceutical
  Corporation

  	
   

  	
  Sales

  Rep

  	
   

  	
  Andy Cooper

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contact

  Name

  	
   

  	
  See Billing Info

  	
   

  	
  Contact

  Name

  	
   

  	
  Cort St. George

  	
   

  	
  Phone 

  	
   

  	
  312-224-5530  Fax
  312-853-0436

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
   

  	
   

  	
  Address

  	
   

  	
  17751 Mitchell Avenue

  	
   

  	
  e-mail

  	
   

  	
  acooper@coolsavings.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  City

  	
   

  	
   

  	
   

  	
  City

  	
   

  	
  Irvine

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  State

  	
   

  	
   

  	
  Zip

  	
   

  	
  State

  	
   

  	
  CA

  	
   

  	
  Zip

  	
  92612

  	
   

  	
  Account

  Manager

  	
   

  	
  Candice

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Phone

  	
   

  	
   

  	
  Fax

  	
   

  	
  Phone

  	
   

  	
  949-510-8697

  	
   

  	
  Fax

  	
  949-486-6688

  	
   

  	
  Phone

  	
   

  	
  312-224-5000  Fax
  312-853-0435

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  e-mail

  	
   

  	
   

  	
   

  	
  e-mail

  	
   

  	
  cortst711@aol.com

  	
   

  	
   

  	
   

  	
  e-mail

  	
   

  	
   

  

 

CoolSavings,
Inc. Service

 

	
  [#]

  	
   

  	
  start date

  	
   

  	
  end date

  	
   

  	
  product

  ID

  	
   

  	
  product name

  	
   

  	
  rate

  	
   

  	
  volume

  	
   

  	
  volume discount

  	
   

  	
  net rate

  	
   

  	
  total cost

  	
   

  
	
  %

  	
   

  	
  $

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  3/1/2005

  	
   

  	
  4/29/2005

  	
   

  	
  130305

  	
   

  	
  Solo
  Targeted E-mail - Performance Based

  	
   

  	
  $

  	
  25.00

  	
   

  	
  TBD

  	
   

  	
   

  	
   

  	
  TBD

  	
   

  	
  $

  	
  25.00

  	
   

  	
  TBD

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  3/1/2005

  	
   

  	
  4/29/2005

  	
   

  	
  130311

  	
   

  	
  Solo
  Targeted E-mail CPA Test

  	
   

  	
  $

  	
  500.00

  	
   

  	
  1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  500.00

  	
   

  	
  $

  	
  500.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Grand Total

  	
   

  	
  $

  	
  500.00

  	
   

  

 

Additional
Information/Targeting: [1] EIM email test and possible
rollout. CSI to get $25 per sale of Lifederm product via online or customer
service phone center from CSI email redirect. Rollouts based on EIM results. Customer
may not cancel advertising for an

e-mail less than 3 business days prior to the scheduled transmission date. In
addition, Customer may not change or substitute copy, graphics or URLs less
than 3 business days before transmission date for an e-mail. Any violation of
the aforementioned requirements shall result in Customer paying to CoolSavings,
as liquidated damages and not as a penalty for early termination, an amount
equal to the greater of (i) $10,000, or (ii) 75% of the contracted-for amount.
A fee of 75% of the contracted amount will also be charged if Customer fails to
provide copy, graphics, address exclusion file and/or URLs at least 3 business
days before the transmission date, thereby causing the mailing to be
re-scheduled.; [2] CoolSavings will test the
e-mail offer according to its then-current standards. CoolSavings shall
determine, in its sole discretion, the frequency and volume of the e-mails that
will roll out after such test. In the event that Customer’s e-mail performs
well enough to earn an e-mail roll out, the $500 test fee shall be credited
towards the amount owed by Customer for the e-mail roll out.

 

Services will be rendered in accordance with CoolSavings’ Product
Summary for each such service, which Product Summary is incorporated herein by reference.

 

This Insertion Order is issued pursuant to an
Advertising located at http://legal.coolsavings.com/advertiser, unless a fully
executed Advertising Agreement is attached to this Insertion Order or already
on file with CoolSavings (in which case this Insertion Order is subject to the
terms of such other Advertising Agreement).

 

 

	
   /s/ Herrie Tantono

  	
  3/4/2005

  	
   

  	
   

  	
  /s/ Christine McNicholas

  	
  3/9/2005

  
	
  Signed for the advertiser

  	
   

  	
   

  	
  Signed for CoolSavings

  
	
   

  	
   

  	
   

  	
   

  
	
  Herrie Tantono

  	
   

  	
   

  	
  Christine McNicholas

  
	
  Name (Print)

  	
   

  	
   

  	
  Name (Print)

  
	
   

  	
   

  	
   

  	
   

  
	
  President

  	
   

  	
   

  	
  SVP Sales, and Client Service

  
	
  Title

  	
   

  	
   

  	
  Title

  

 

This Insertion Order is not effective unless
signed by an authorized person from CoolSavings, Inc. Date reserved pending
confirmation within two business days.

 

F O R 
S A L E S  O F F I C E  U S E 
O N L Y

 

	
  Region

  	
   

  	
  Category

  	
   

  	
   

  	
   

  	
  Acct ID

  	
   

  	
  New Adv

  	
   

  	
  Targeting Info Attached

  	
  Account Type

  	
   

  	
  RVP SO

  	
   

  	
  PMSO Sn

  
	
  West

  	
   

  	
  Personal &
  Professional Services

  	
   

  	
  3

  	
   

  	
  Yes

  	
   

  	
  No

  	
  DotCom

  	
   

  	
  HB

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lead Generation

  	
   

  	
   

  	
  Pixel

  	
   

  	
  Pixel Type

  	
   

  	
   

  	
   

  	
   

  	
  Sales Window

  	
   

  	
  OC

  
	
  o CSI

  	
   

  	
  o Network

  	
   

  	
  o PD

  	
  Yes

  	
   

  	
  ý Page Count

  	
   

  	
  o Sale Count

  	
  o Sale Value

  	
   

  	
  days

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ACp 67|HC 33

  	
   

  	
   

  	
   

  	
  Cr. app  3/3/05Exhibit
10.11

 

EXCLUSIVE SALES
AND MARKETING AGREEMENT

 

THIS EXCLUSIVE SALES AND
MARKETING AGREEMENT (“Agreement”) is made and entered into this 8th
day of June, 2005, by and between Munters Corporation, a New York corporation (“Company”),
and Aquair, Inc., a California corporation (“Reseller”). Company and Reseller
shall hereinafter sometimes be referred to as the “Party” and collectively as
the “Parties.”

 

RECITALS

 

WHEREAS, Company is a
manufacturer of certain machines and products that are used to control humidity
while producing water in the process (“Products”).

 

WHEREAS, Company is the
owner of certain copyrighted work and trademarks regarding its technologies.

 

WHEREAS, Company is the
owner of certain issued and pending patents of products that condition air,
control humidity, produces water from air, oxygenate water by using ozone and
convert contaminated water into pure drinking water.  Such issued and pending patents are listed as
follows:

 

•                  Humidity
Control Units, HCU Patent 6,557,365

 

•                  Humidity
Control Units, HCU Patent 6,711,907B2

 

•                  Methods
and Apparatus to Produce Drinking Water, application number 11/011,872 (See
Schedule F)

 

WHEREAS, Reseller desires
to become an authorized sales and marketing contractor for Company, and Company
wishes to engage Reseller to promote and facilitate sales of the Products (“Services”).

 

NOW, THEREFORE, in
consideration of the foregoing Recitals, which are incorporated into the
operative provisions of this Agreement by this reference, and for other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Parties hereto agree as follows:

 

Article 1.
Appointment

 

1.01         The Parties agree that Reseller shall
have a worldwide exclusive right to solicit sales of the Products to customers
in the oil and gas industry (drilling and refinery), residential building
industry, private and commercial shipping industry, and government agencies as
requested by Reseller (“Territory”). During the term of this Agreement, Company
shall not, either directly or indirectly, appoint or use any person or entity
other than Reseller for the marketing, sale or distribution of Products in the
Territory with the exception of the countries and projects in work listed in
Schedule D.

 

1

 

1.02         The Reseller shall have the exclusive
right to bottle water for sale and to sell the water generating only products
to Companies that wish to engage in the business of water bottling.  The Company shall retain the right to sell
air and water products to their customers that may choose to bottle water. The
Reseller must invest a portion of the $5,000,000 mentioned in 5.06 to build and
operate a water bottling operation in the United States to retain this exclusivity
with in 12 months after the signing of this agreement.

 

1.03         The Reseller agrees not to engage with
any other company in the selling of Products that might compete with the
Company Products during the term of this agreement and for a period of five (5)
years after the termination of this agreement.

 

1.04         If Reseller desires to solicit sales of
Company’s Products to customers other than those set forth in paragraph 1.01 (“Unlisted
Customers”), Reseller must first submit in writing the name of the Unlisted
Customers to Company for approval.  If
the Company is not selling to or has no active contact to the Unlisted
Customer, the Reseller shall be given the opportunity to do so.

 

1.05         Reseller may appoint sub-resellers,
distributors, or agents to represent Reseller within the Territory.

 

1.06         The relationship between the Parties
created by this Agreement shall not be construed as one of agency, partnership,
joint venture, franchise or employer/employee. The Parties acknowledge that
Reseller shall be and remains an independent contractor and shall not have the
authority to represent or bind Company except with the express prior written authorization
of Company. Further, Reseller represents and warrants that it will not
represent itself to any third parties, including without limitation, customers,
potential customers, lenders, or investors, that it is an agent of Company or
in any way authorized to act on behalf of or obligate Company. Reseller shall
thoroughly instruct its employees, agents, servants, officers, directors, and contractors
on the fact that Reseller is not an agent for Company and should not be represented
as an agent for Company. Reseller’s employees and independent contractors shall
be employed at Reseller’s own risk, expense, and supervision, and Reseller’s
employees and independent contractors shall not have any claim against Company
for salaries, commissions, items of cost, or other form of compensation or
reimbursement, and Reseller represents, warrants, and covenants that Reseller’s
employees and independent contractors shall be subordinate to Reseller and
subject to each and all of the terms, provisions, and conditions applying to
Reseller hereunder.

 

1.07         Company reserves the right to make
alterations, add to, or discontinue any or all of its Products at any time, in
the Company’s sole discretion. In the event that Company decides to make
alterations, add to, or discontinue any or all of its Products, Company shall provide
Reseller with thirty (30) days notice prior to making alternations, adding to,
or discontinuing the Products. Upon receipt of notification that the Company
will discontinue a

 

2

 

product line that the Reseller is actively selling,
the Reseller shall notify Munters in writing that such products are needed and
if Munters declines to build such products, the Reseller has the right to
proceed to find another manufacturer to manufacture these products.

 

Article 2. Pricing

 

2.01         Reseller shall have sole discretion in
determining the prices Reseller charges customers it obtains for the Services
(Reseller’s “Customers”). Company shall provide to Reseller a price list for
Company’s Products (“Price List”), which is attached hereto as Schedule A. The
Price List shall constitute Confidential Information as defined in Section 9.01.
Company, at its sole discretion, may amend, modify or revise the Price List by
sixty (60) days written notice to Reseller. During the sixty (60) day period
after Company gives the notice to amend, modify or revise the Price List, Reseller
shall be entitled to place orders for Products at the then existing price.

 

2.02         Company agrees to protect Reseller’s
profit margin by maintaining the pricing of Company Products at the same level
as offered to other resellers or representatives of the Company that might
compete in the same market as Reseller.

 

Article 3. Product
Orders

 

3.01         Reseller may order from Company by
telephone, facsimile, mail or electronic mail (“Order”). Acceptance by Company
of the Order shall occur (a) when the Order is entered into Company’s system;
(b) when an Order number is provided to Reseller by facsimile or electronic
mail, if requested by Reseller; or (c) when assembly of the Products commences,
whichever occurs first.

 

3.02         Each Order shall be deemed an offer by
Reseller to purchase the Company Products listed therein and when accepted by
Company shall constitute a contract in accordance with the terms and conditions
of the Order and this Agreement. If a conflict arises between the two, this
Agreement shall take precedence.

 

3.03         Order submitted by Reseller pursuant to
this Agreement shall include the quantity and type of Product(s) ordered,
Product descriptions, Product specifications, and Reseller’s order number, and
the Agreement number.

 

3.04         The Company’s terms and conditions
concerning purchase orders, as attached in Schedule E shall apply to this
Agreement unless specifically accepted or approved in writing and signed by an
appropriate senior manager or executive of Reseller and Company. A general form
acknowledgment of any such order or any communication with respect to such an
order, or the making of deliveries with respect thereto, shall in no case be
construed as an acceptance or approval of the type required by this paragraph.

 

3

 

3.05         Changes to orders will only be accepted
prior to the order entering Company’s manufacturing queue. Reseller may
initiate such changes or additions to previously accepted Orders by submitting
a modification of the Order to Company with appropriate reference to the original
Order. Upon Company’s written acceptance of the modification or addition,
Company shall process the Order in accordance with the pricing terms and
conditions of this Agreement.

 

3.06         Company shall arrange for freight to
deliver Products directly to customers upon written instruction by Reseller.
The Company’s terms are FOB manufacturing plant.

 

Article 4.
Remuneration

 

4.01         Upon Reseller’s ordering of Products
with Company, Reseller shall either (1) pay Company a down payment of 25% of
the purchase price of the ordered Products via wire transfer to a bank account
designated by Company and pay the remainder of the purchase price in full when
Reseller is notified by the Company that the Products are ready for delivery;
or (2) at the time Reseller place the order, issue an irrevocable and
transferable at sight letter of credit (“Letter of Credit”) issued by a prime
bank to Company for the full amount of the purchase price payable at the time
Reseller is notified by Company that the ordered Products have been shipped by
Company.

 

4.02         All expenses incurred by Reseller in
connection with its activities hereunder shall be borne by Reseller.

 

Article 5. Duties
of Reseller

 

5.01         Reseller shall use reasonable sales and
marketing efforts to promote the sales of Company’s Products. Reseller
represents and warrants that it is familiar with the Internet and the Products
and that it is presently qualified to promote the sale and provide sales
support for such Products.

 

5.02         Reseller shall follow such procedures
and use such contracts and forms in placing orders with Company as Company
requests, and as Company may request from time to time in its sole discretion.

 

5.03         Upon notification by Customer or
Reseller of any damages to or unconformities of Products, Company shall repair
or replace the Products in accordance with its standard warranty policy
attached hereto in Schedule C (“Warranty”).

 

5.04         Reseller shall be solely liable for the
payment of any sales tax, use tax, occupational tax or any other taxes assessed
or duties levied, imposed or collected by any governmental authority arising
from the sale or storage of Products purchased by Reseller.

 

5.05         Upon execution of this Agreement, the
Reseller shall pay the Company a $50,000

 

4

 

deposit towards the Reseller’s commitment to purchase
up to $500,000 of demo units (“Demo Units”) within 120 days of this signed
Agreement. The $50,000 deposit shall be credited to the Reseller toward the
order and purchase of the Demo Units. In the event that the Reseller does not
place an order for the Demo Units within 120 days of this agreement, Company
shall retain the $50,000 deposit with no recourse to the Reseller. The Reseller
also agrees to clearly identify, within sixty (60) days of the execution of
Agreement, the Demo Units to be purchased to allow the Company to begin the
design engineering prior to the 120 day period. Each Demo Unit shall be
manufactured by Company in accordance with industry specifications as submitted
by Reseller in writing. Reseller shall (1) at the time Reseller places the
order for the Demo Units, pay Company a down payment of 25% of the purchase
price of the Demo Units via wire transfer to a bank account designated by
Company and pay the remainder of the purchase price in full when Reseller is
notified by the Company that the Demo Units are ready for delivery; or (2)
issue a Letter of Credit issued by a prime bank to Company for the full amount
of the purchase price payable at the time that Reseller is notified by the
Company that the Demo Units are ready for delivery. Failure of the Reseller to
purchase the $500,000 of demo units within the above allotted time frame will
result in the termination of this agreement.

 

5.06         In addition, Reseller shall provide
$5,000,000 in funding to Reseller’s commercial division to promote, advertise,
and market the Products pursuant to this Agreement. Reseller shall also submit
to Company a list of potential customers that Reseller has contacted since the Effective
Date.

 

5.07         Reseller shall employ at least one HVAC
engineer to handle the applications engineering work required by Reseller’s
customers within ninety (90) days of the execution of this Agreement.

 

Article 6. Duties
of Company

 

6.01         Company shall provide Reseller with
such technical information, marketing data, and marketing tools as is necessary
for Reseller to market the Services in accordance with this Agreement.

 

6.02         Company shall provide technical and
support training regarding the Products to Reseller upon request by Reseller.

 

6.03         Company shall assign a competent HVAC
engineer to support Reseller through the first ninety (90) days of this
Agreement until such time that Reseller’s own engineers have the capacity to
provide such technical support and customer service to Reseller and Customer. At
such time, Reseller shall notify Company in writing that Reseller no longer
requires technical support and customer service from Company.

 

6.04         Company shall manufacture Products
ordered by Reseller with the mark “Aquair manufactured by Munters” (“the Mark”)
branded on the Products, Reseller shall submit to

 

5

 

Company and maintain the artwork for the Mark.

 

Article 7.
Intellectual Property; Sales and Marketing Materials

 

7.01         Company grants Reseller an exclusive,
non-transferable and royalty free right and license to use Company’s
trademarks, service marks, trade dress or other designations (“Marks”), solely
in connection with the promotion of Company and the Products to prospective customers
and in accordance with Company’s instructions and policies as communicated to Reseller
in writing from time to time. Reseller’s use of the Marks, and all goodwill
generated thereby, shall inure to the benefit of Company. Except as otherwise
provided in this Section 7.01, Reseller shall acquire no right, title or
interest in such Marks. All rights to use the Marks shall cease upon expiration
or termination of this Agreement.

 

7.02         In promoting Company and the Products,
Reseller is not limited to use advertising or marketing materials prepared by
Company or approved by Company.

 

7.03         Company acknowledges that “Aquair” is a
trademark being registered by Reseller.

 

Article 8. Company’s
Warranties

 

8.01         Company represents and warrants as
follows:

 

(a)          Company is in compliance with all
applicable federal and state laws pertaining to the manufacture, production and
distribution of Products.

 

(b)          Company maintains product and general
liability insurance policies and is in full compliance with all product and
general liability insurance policies maintained by Company. Company shall take
all such action necessary to maintain such policies or substantially equivalent
policies in full force and effect throughout the terms of this Agreement.

 

(c)          The Products shall be covered under
the Company’s standard Warranty, a copy of which is attached hereto as Exhibit
C. Reseller shall provide a copy of the Warranty to Reseller’s Customers, but
shall not represent or promise any additional warranties over and above those
provided in the Warranty. Company agrees to indemnify and hold Reseller
harmless from the full amount of any and all liabilities, obligations, damages,
expenses, or other adverse consequences related to, or arising in connection
with any defects in the manufacturing of the Products, any claims of patent
infringement, ownership infringement, trade secret violations, or any other
negligent act or omission committed by Company or any of its agents in relation
to the Products. However, Company shall have no obligation to indemnify
Reseller for any claims arising from misrepresentations about the Products or
from any misapplication of the use of the Products.

 

6

 

Article 9.
Confidentiality and Customer Ownership

 

9.01         All documents, data, information and
other materials made available to Reseller in connection with this Agreement,
including without limitation all information regarding the Services, Company
customers (including those customers and potential customers using the Services
and/or referred to Company by Reseller), marketing data, business plans,
technical information and information relating to Company’s business developed
by Reseller during the term of this Agreement (collectively “Confidential
Information”) shall be deemed to have been furnished to Reseller in confidence
and shall remain the exclusive property of Company during and after the term of
this Agreement. Reseller shall treat as trade secrets and keep in strict
confidence all Confidential Information and Reseller will not at any time
during the term of this Agreement or at any time thereafter use such
Confidential Information, either directly or indirectly, for its own benefit or
disclose or permit any of its employees, agents, or representatives to
disclose, directly or indirectly, through any medium such Confidential
Information to any other person or entity without the prior written consent of
Company. Reseller shall further require that its employees, agents, and
representatives acknowledge in writing that the Confidential Information is
proprietary to Company and that they agree, both during and after their
employment, not to disclose any Confidential Information or use same for their
benefit. Upon termination of this Agreement or upon request, Reseller shall
return all Company Confidential Information to Company and certify in writing
that it has returned all such information to Company and has not kept copies
thereof in any medium.

 

Article 10.
Indemnification

 

10.01       The Parties shall defend, indemnify and
hold the other Party and the other Party’s agency, subsidiaries, partners,
affiliates, successors, licensees and assigns, and their respective directors,
officers, employees and agents, from and against any and all claims, costs,
damages, losses or expenses, including reasonable attorneys’ fees, incurred by
the Party as a result of or in connection with (i) any breach of this Agreement
by the other Party; (ii) any action or omission by the other Party or any of
the other Party’s employees or agents; or (iii) any representation by Reseller,
its employees, agents or representatives that Reseller is an agent for Company.

 

Article 11. Term
and Termination

 

11.01       This Agreement shall commence on the date
first stated above and shall continue in effect for a period of five (5) years,
with automatic renewals of five (5) years each unless terminated under Section
11.02.  For year one of this Agreement,
the Reseller must have shipments to its customers valued in aggregate of at
least $1,000,000 and orders from its customers in aggregate of at least $3,000,000.
In the remaining four (4) years of this Agreement, the Reseller must place
orders with the Company in the aggregate amount of at least $5,000,000 per
year. A minimum of 10% of the
above quotas must come from each market segment assigned to Reseller. If the
minimum order is not received, all provisions pertaining to the exclusivity of
this Agreement shall terminate.

 

7

 

If the minimum of 10% is
not received from each market segment, the Company has the right to retract
this market segment from the reseller.

 

Notwithstanding the
termination of exclusivity under this Agreement in the event that Reseller fails
to meet the quotas specified under this paragraph, all other provisions of this
Agreement shall remain effective regardless of whether Reseller met the quotas.

 

11.02       This Agreement may be terminated upon the
occurrence of any of the events of default listed below, after thirty (30) days
written notice to the other party, provided the grounds for termination (which
shall be clearly stated in any written notice) are not cured within the thirty
(30) day period. For purposes of this provision, notice shall be given in
writing at the address listed on the signature page of this Agreement or to any
address subsequently provided by either party. The events of default which
would entitle a Party to terminate this Agreement are as follows:

 

(a)           a material breach of any covenant,
term or condition of this Agreement by the other Party; or

 

(b)           an assignment by the other Party for
the benefit of creditors or the other Party becomes bankrupt or insolvent, or
takes benefit of, or becomes subject to any legislation in force relating to
bankruptcy or insolvency, it being understood that the appointment of a
receiver or trustee of the property and assets of the Reseller are conclusive
evidence of insolvency; or

 

(c)           insolvency of the other Party, the
filing of a voluntary petition by the other Party in Bankruptcy Court,
reorganization or any similar proceedings by the other Party, the filing
against the other Party an involuntary petition in bankruptcy that is not
vacated within sixty (60) days from the date of filing, or the rendition of a
judgment against the other party that remains unsatisfied and subject to
execution, provided such judgment is substantial in relation to the other
Party’s assets or may materially affect the other Party’s performance under
this Agreement.

 

11.03       The provisions of Sections 1.02 and 1.03
and Articles 7, 9, 10, 11, and 12 of this Agreement shall survive termination
of this Agreement or any part thereof.

 

Article 12.
General Provisions

 

12.01       Force Majeure. Company shall not
be liable for, and is excused from, any failure to perform or for delay in the
performance of its obligations under this Agreement due to causes beyond its
control, including without limitation, interruptions of power or
telecommunications services, failure of Company’s suppliers or subcontractors,
acts of nature, governmental actions, fire, flood, natural disaster, or labor
disputes.

 

12.02       Waiver. No failure of either Party
to pursue any remedy resulting from a breach of this Agreement shall be
construed as a waiver of that breach or as a waiver of any subsequent or other
breach unless such waiver is in writing and signed by the non-breaching Party.

 

 

8

 

12.03      Severability. In the event any
provision of this Agreement shall be invalid, illegal or unenforceable in any
respect, such a provision shall be considered separate and severable from the
remaining provisions of this Agreement, and the validity, legality or
enforceability of any of the remaining provisions of this Agreement shall not
be affected or impaired by such provision in any way.

 

12.04      Non-assignment. This Agreement may
not be assigned by Reseller, in whole or in part, without the express written
consent of Company. Company may assign this Agreement without consent of
Reseller (i) to any entity controlled by or under common control with Company;
(ii) pursuant to any sale or transfer of substantially all of the assets of
Company; or (iii) pursuant to merger or other reorganization of Company.

 

12.05      Governing Law. This Agreement shall
be construed and enforced under, and is to be governed by the laws of the State
of Texas. Each of the Parties to this Agreement irrevocably consents to any
suit, action, or proceeding with respect to this Agreement being brought in any
court of competent jurisdiction in Guadalupe County, Texas.

 

12.06      Entire Agreement. All exhibits to
this Agreement shall be incorporated in and constitute parts of this Agreement.
This Agreement constitutes the entire understanding between the Parties in relation
to the subject matter hereof and supersedes all prior discussions, agreements,
and representations, whether oral or written and whether or not executed by
Company or Reseller. Unless otherwise provided in this Agreement, no
modification, amendment or other change may be made to this Agreement or any
part thereof unless reduced to writing and executed by authorized
representatives of both Parties.

 

12.07      Attorneys’ Fees. In the event of
any litigation or arbitration to enforce the terms of this Agreement, the
prevailing Party in the litigation or arbitration is entitled to recover from
the other Party the prevailing Party’s costs of litigation or arbitration,
including without limitation reasonable attorneys’ fees.

 

12.08      Modification. No modifications to
this Agreement shall be effective without the written consent of the all the
Parties.

 

12.09      Arbitration Clause. Should any
controversy arise between the Parties hereto concerning this Agreement, the
payment and/or the delivery of any Products, or the rights and duties of either
Party under this Agreement, the controversy shall be resolved by arbitration
pursuant to the arbitration rules then in effect with the American Arbitration
Association in Guadalupe County, Texas. The decision of the award shall be
binding on both Parties and may be established as a judgment in any court in
Guadalupe County, Texas, having jurisdiction thereof, and shall include
attorneys’ fees and costs for the prevailing Party.

 

IN WITNESS WHEREOF, the
Parties hereto have executed this Agreement on the date

 

 

9

 

stated above.

 

COMPANY:

 

	
   

  	
  Munters Corporation, a New York corporation

  ADDRESS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chuck Campbell

  	
   

  
	
   

  	
  (signature of authorized officer)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Chuck Campbell

  	
   

  
	
   

  	
  Chuck Campbell, VP Commercial Division

  
	
   

  	
   

  
	
   

  	
   

  
	
  RESELLER:

  	
   

  
	
   

  	
   

  
	
   

  	
  Aquair, Inc., a California corporation

  ADDRESS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Louis L. Khilkenbocken

  	
   

  
	
   

  	
  (signature of authorized person)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Louis L. Khilkenbocken

  	
   

  
	
   

  	
  (print name and capacity)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ###-##-####

  	
   

  
	
   

  	
  (SSN or EIN)

  
				

 

 

SCHEDULE
E

 

TERMS
AND CONDITIONS

 

STANDARD
CONDITIONS OF SALE

 

(1)                                  AGREEMENT AND LIMITATIONS. The agreement between Company and
Purchaser, the “sales contract”, with respect to the sale of goods described on
the other side hereof, the “goods” shall consist of the terms appearing hereon
and on the other side hereon together with the company’s acknowledgment letter
indicating acceptance of Purchaser’s order and the Company shall not be bound
by any additional or different terms whether printed or otherwise in
Purchaser’s purchase order or in
any other communication from Purchaser to Company unless specifically agreed to
by Company in writing. The sales contract shall be for the benefit of the
Company and Purchaser and not for benefit of any other person.

 

(2)                                  SHIPMENT AND DELIVERY. Unless otherwise specifically agreed,
all prices are for material commercially packed for domestic shipment and for
delivery F.O.B. point of origin. Shipping dates are approximate and are
contingent upon prompt receipt of all necessary information.

 

The Company shall
not be liable for delays in delivery or failure to manufacture or deliver due
to causes beyond its reasonable control whether or not of the same general
character as those herein specifically enumerated, including, but not limited
to, acts of God, acts of the Purchaser, acts of civil or military authority,
priorities, fires, strikes, floods, epidemics, war, riot. Delays in
transportation or car shortages, or inability to obtain necessary labor,
materials, components or manufacturing facilities. In the event of any such
delay, the date of delivery shall be extended for a period equal to the time lost
by reason of the delay.

 

Partial shipments
may be made and payments, therefore, shall become due in accordance with the
terms hereof or as shipments are made and invoices tendered.

 

The Company
assumes no responsibility for delays, breakage or damage after having made
delivery to a carrier, at which time all risk of loss for any cause passed to
Purchaser.

 

(3)                                  CLAIMS. No claim for variances from or shortages in orders
will be considered by the Company unless presented to it in writing within
thirty (30) days after receipt of goods. All claims for breakage or other
damage due to shipment or handling shall be made to the common carrier by the
Purchaser.

 

(4)                                  PAYMENT AND CREDIT. Unless otherwise provided herein,
payment terms will commence from date of invoice. If materials are ready for
shipment and delayed by purchaser, the Company shall be entitled to payment at
stated terms, and will submit invoices accordingly.

 

The terms of sale
herein are subject to credit approval and Company may at any time modify the
terms of payment originally specified to include payment in advance added to the
price.

 

In the event the
Company is forced to resort to legal action to collect accounts due, all
reasonable costs and expenses including attorney’s fees and interest shall be
added to the price.

 

The Company
reserves the right to add to any account outstanding beyond the due date, a
service charge of 1 1/2% of the principal amount due at the end of each month,
or the maximum allowable legal interest rate, if a lesser amount.

 

For orders outside
the Continental United States, Canada or Puerto Rico, the Company will require
an Irrevocable Letter of Credit or similar guarantee of payment as defined by
the Company. The terms of payment are due on presentation of shipping
documents, Retainage of any kind is unacceptable.

 

(5)                                  TAXES. The prices do not include, except as expressly stated
in the quotation, any present or future sales, use, excise, similar taxes or
any increase in such taxes. Consequently,
in addition to the price specified herein, the amount of any present or future
sales, use, excise, or similar taxes or increase in such taxes applicable to
the sale or use of the equipment hereunder shall be paid by the purchaser, or
in lieu thereof the Purchaser shall provide the Company with the tax-exemption
certificate acceptable to the taxing authorities.

 

(6)                                  CANCELLATION CHARGES. Once accepted by the Company, an order
is not subject to cancellation or change except on terms acceptable and
satisfactory to the Company. Direction by Purchaser to cancel may be treated as a repudiation
making the Purchaser immediately liable of loss, expense and other damages. It
is understood that a cancellation charge will be due from Purchaser to Company
computed on the basis of costs (direct and indirect) accumulated, including
without limitation, labor materials and engineering related to this agreement
and the articles described herein, plus 10% of the total contract price as
liquidated damages, and not as a penalty of such cancellation. The cancellation
charge shall be due and payable at the time of receipt of Purchaser’s written
notice of cancellation at Company’s office. In the event that Purchaser causes
or requests (i) changes to be made
which affect delivery, installation, specifications, completion dates or
otherwise or (ii) the work to be delayed, whether directly or by other
contractors or because the facilities, including utilities, electrical hookup, site
preparation, governmental permits, approvals or licenses, apparatus or other
conditions to be provided or arrange 1 by Purchaser are lacking or
insufficient, Purchaser will reimburse Company for any expense incurred by
Company in respect of or resulting from any such charge or delay upon
presentation by Company of a simple invoice. Any additional services or
equipment not specifically set forth herein shall be at Purchaser’s additional
expense.

 

(7)                                  STORAGE. If shipment of any materials is postponed by
direction of the Purchaser, the Company may at any time after original schedule
date of shipment, pack, hold and invoice such material as if then shipped, same being then held
at Purchaser’s risk and subject to Company’s storage charges, and upon full
payment shall become the property of the Purchaser.

 

(8)                                  WARRANTY. The Company warrants all equipment manufactured by
it to be free from defects in workmanship and materials for a period of one
year commencing thirty (30) days from date of shipment of equipment by the
Company.

 

This warranty
applies only to equipment that is properly installed, maintained and operated
under normal conditions with competent supervision in accordance with the equipment
instruction manual and Company recommendations, if any, made in the proposal
governing purchase of said equipment. The Company’s obligation under this
warranty is limited to repair or replacement at our option, at our factory, of
any part returned to us prepaid which upon examination shall prove to be

defective. Freight
charges incurred for shipment of warranty repair or replacement parts will be
the responsibility of the purchaser.

 

This warranty
shall be void in the case of any equipment which has been disassembled,
repaired or tampered with in any way, except when such work has been done with
Company’s written approval. THE COMPANY WILL NOT BE LIABLE FOR ANY INDIRECT OR
CONSEQUENTIAL DAMAGES OF ANY KIND ARISING FROM THE USE OF THIS PRODUCT.

 

this warranty shall be voided iF payment is not made in accordance
with the terms as set forth by the company.

 

THIS WARRANTY IS
EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES EXPRESSED OR IMPLIED INCLUDING ANY
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND THE
COMPANY NEITHER ASSUMES NOR AUTHORIZES ANY PERSON TO assume for it any other liability in connection with the
construction, delivery, and operation of this equipment except AS
AFORESAID.

 

(9)                                  PATENTS. It is understood and agreed that Company shall
assume all responsibility for and save Purchaser from any and all damages,
costs, royalties and claims arising out of charges of infringement of patents
which may be alleged to cover articles supplied hereunder, excepting those
patents covering the manufacture, sale, or use in articles supplied hereunder,
of designs, devices, parts, arrangements specialties and equipment furnished or
specified by Purchaser and as to such excepted patents Purchaser shall in like
manner assume responsibility and save Company harmless. Prompt notice in
writing shall be given by each party to the other of any claim of patent

 

 

infringement presented to
such party with respect to articles supplied hereunder, and the part
responsible for such infringement as above provided, shall promptly undertake
and assume the defense thereof.

 

(10)                            DEFAULT. In the event that at any time Purchaser is in
default under any terms of any order arising out of this proposal or any other
order, Company reserves the right to withhold construction or delivery and to cancel and terminate any
or all orders and to hold Purchaser liable for any damages and expense incurred
by Company. The Company also reserves the right to declare all charges and
accounts to be immediately due and payable.

 

(11)                            CLERICAL ERRORS. The Company reserves the right to correct
clerical, arithmetical or stenographic errors or omissions in quotations, order acknowledgments, invoices, or
other documents.

 

 

SCHEDULE
A

 

Pricing
Volume Discount Schedule For Annual Sales

 

	
  Annual
  Sales

  	
   

  	
  Discount

  	
   

  
	
    Sales
  over $1,000,000

  	
   

  	
  5

  	
  %

  
	
    Sales
  over $3,000,000

  	
   

  	
  7.5

  	
  %

  
	
    Sales
  over $5,000,000

  	
   

  	
  10

  	
  %

  

 

 

SCHEDULE
F

 

Patent
information on atmospheric water generator to be supplied by Michael Morgan

 

 

SCHEDULE
B

 

DEMO
UNITS

 

Demo
Units valued up to $500,000 are to be identified within 60 days and purchased
within 120 days of execution of this Agreement.

 

 

SCHEDULE
C

 

WARRANTY

 

	
  Munters Corporation –
  Dehumidification Division

  	
   

  	
  3/1/2000

  
	
  WARRANTY

  	
   

  	
   

  

 

EQUIPMENT
WARRANTY

 

Munters warrants all its equipment to be free from
defects in workmanship and material for a period of one year commencing thirty
(30) days from date of shipment by Munters. Munters will repair or replace, at
its option, any such equipment determined to be defective during this one-year
period.

 

The foregoing warranty does not apply to:

 

1.               Any equipment or
part that has been misused, used for any purpose other than its intended
purpose, or that has not been installed, maintained and operated under normal
conditions with competent supervision in accordance with the equipment
instruction manual and Munters’ recommendations; or

 

2.               Any equipment or
part that has been disassembled, repaired or tampered with in any way, except
when such work has been done [by an authorized service representative] in
accordance with Munters’ service guidelines.

 

This warranty covers replacements and repairs or
adjustments made at the Munters’ factory only. If the services of a Munters
Service Technician are required at the site where the equipment or part is
installed, or at any other location other than Munters’ factory, buyer will be
responsible for the cost thereof and a purchase order shall be issued to
Munters.

 

FIVE
YEAR WARRANTY FOR MUNTERS HONEYCOMBE WHEELS

 

Munters warrants its Honeycombe Titanium enhanced
Silica Gel, Molecular Sieve, and HPX Honeycombe wheels to be free from
structural defects in workmanship and material for a period of five years
commencing thirty (30) days from date of shipment by Munters.

 

The foregoing does not apply to:

 

1.               Lithium Chloride
wheels that have not been maintained under a Munters Service-Caire Agreement continuously
throughout the five-year period;

 

2.               Damage caused by
misuse or any improper maintenance or contamination of the Honeycombe wheel media;
or

 

3.               Damage caused by
other component malfunction or operation of the equipment beyond the specified conditions

 

STEAM REACTIVATED SYSTEMS: Munters will only repair or
replace leaking steam coils under warranty when accompanied by a water quality
report from an independent, qualified laboratory showing the chemical analysis
of the steam associated with these coils. These tests must show pH values and
sulfur content within the ranges associated with proper steam operating ranges.
Proper steam piping, per manufacturer’s recommendations,

 

 

must be applied to any steam coil installations to
prevent contamination and possible water hammering that could lead to leaks.

 

LABOR
WARRANTY

 

Munters’ obligation under this warranty for labor is
limited to correcting any improperly performed start-up labor, for a period of
ninety (90) days. Customer is responsible for providing clear access to
equipment.

 

CLAIM
PROCEDURES

 

If any defect appears in the equipment during the
applicable warranty period:

 

1.               Buyer shall notify
Munters of the defect in writing, including in such written notice the model,
serial number and part number of such equipment or defective part thereof, and
a description of the nature of the defect.

 

2.               After receipt of
such information, Munters will ship a replacement, F.O.B. Munters factory, and
will invoice the buyer therefore, and for shipping charges, if applicable.

 

3.               Upon receipt of
written authorization from Munters, buyer shall return the defective equipment
or part to Munters with shipping charges prepaid.

 

4.               Upon receipt of the
equipment or part by Munters, the cause of the failure will be analyzed and, if
equipment or part is found to be defective in workmanship or material, a credit
will be issued for the cost of the replacement or repair of said equipment or
part.  Any special shipping requests such
as “Next Day Air” will be the customer’s responsibility and will be sent “freight
collect”.

 

Munters assumes no responsibility for any incidental
or consequential damage to structures (including, but not limited to, any
ductwork, roofing materials, outbuildings or piping) or any other equipment
caused by any defective equipment or part or the removal or replacement
thereof.

 

This warranty does not include delivery of materials
to the job site or rigging, scaffolding, lifts or labor necessary to install
replacement equipment or parts. Buyer is responsible for lifting requirements,
cranes, unpacking, etc., as well as removal of previously supplied or installed
materials.

 

EXCLUSIVE
REMEDY

 

MUNTER’S OBLIGATION, AND BUYER’S SOLE AND EXCLUSIVE
REMEDY UNDER THIS WARRANTY, IS LIMITED TO REPAIR OR REPLACEMENT, AT MUNTERS’
OPTION, OF ANY EQUIPMENT DETERMINED TO BE DEFECTIVE IN WORKMANSHIP OR MATERIAL
DURING THE APPLICABLE WARRANTY PERIOD.

 

THIS WARRANTY IS EXCLUSIVE AND IN LIEU OF ALL OTHER
WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY
OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. WITHOUT LIMITING THE
GENERALITY OF THE FOREGOING, MUNTERS DISCLAIMS AND BUYER HEREBY WAIVES, ANY
OTHER CLAIM AGAINST MUNTERS (WHETHER ARISING BY OPERATION OF LAW OR OTHERWISE),
INCLUDING ANY CLAIM

 

 

OR LIABILITY FOR SPECIAL, INDIRECT OR CONSEQUENTIAL
DAMAGES OF ANY KIND RELATING TO OR ARISING OUT OF THE EQUIPMENT OR ANY PART
THEREOF, OR THE BUYER’S USE THEREOF.

 

MUNTERS NEITHER
ASSUMES NOR AUTHORIZES ANY PERSON TO ASSUME FOR IT ANY OTHER LIABILITY IN
CONNECTION WITH THE MANUFACTURE, SALE, DELIVERY, INSTALLATION AND OPERATION OF
THE EQUIPMENT OR ANY PART THEREOF EXCEPT AS AFORESAID

 

 

SCHEDULE
D

 

TERRITORITY

 

The
following are being excluded from the Resellers territory:

 

Countries:

Thailand
(water bottling and unit sales)

Indonesia
(water bottling and unit sales)

Malaysia
(water bottling and unit sales)

Singapore
(water bottling only)

 

Current
Customers:

 

Logis-Tech
(Kuwait project and other projects as identified in writing and approved by
Aquair. Aquair agrees to allow Logis-Tech to sell into any military project
that they are not currently involved in.)

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