Document:

exhibit_10-4.htm

    
    

     

    PATENT
LICENSE AGREEMENT

    

    

    This
license Agreement (Agreement) dated as of June 1, 2009 (the Effective Date) is
made between Stephen Key Design, LLC (“SKD”), having a mailing address of 2111
Geer Road, Suite 211, Turlock, California 95382 and AquaBlue International, Inc.
(Licensee), having a mailing address of 1 Hershey Drive, P.O. Box 2100, Smith’s
Falls, Ontario, Canada, KTA 4T8. SKD and Licensee shall be collectively referred
to herein as “the parties.”

    

    On the
terms and conditions of this Agreement and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and
intending to be legally bound hereby, SKD and Licensee hereby agree as
follows:

    

    
      	
              1.  

            	
              INTRODUCTION

            

    

    

    SKD is
the owner of certain proprietary rights to inventions as described in Appendix A. SKD
desires to license certain rights in the invention to Licensee on an exclusive
basis, subject to certain restrictions, which are more fully set forth
herein.

    

    
      	
              2.  

            	
              DEFINITIONS

            

    

    

    
      	
              2.01  

            	
              “Licensed Technology”
      means all United States patent applications and issued patents covering
      any invention relating to any an all continuations, continuations-in-part,
      amendments, divisions, reissues, and re-examinations of such applications
      or based thereon and equivalents thereof and any and all modifications or
      improvements thereof hereafter obtained, developed, conceived or reduced
      to practice by SKD during the term of this Agreement relating to Licensed
      Products, and any and all unpatented knowledge, technology, know-how and
      technical information owned by SKD and related to any of the foregoing
      including, without limitation, those listed in Appendix
  A.

            

    

    
      	
              2.02  

            	
              “Licensed Product” means
      any product made, in whole or in part, marketed sold, or distributed by
      Licensee in any  and all channels of distribution with use of
      the Licensed Technology including, without limitation, spin labels for
      carbonated and non carbonated beverage containers as well as spin labels
      for bottled water containers.

            

    

    
      	
              2.03  

            	
              “Territory” means
      worldwide

            

    

    
      	
              2.04  

            	
              “net Sales Revenue”
      means the actual invoiced receipts (sales quantity multiplied by
      Licensee’s selling price) from customers for Licensed Products sold and
      payment therefore received by Licensee, less Allowable Deductions. Net
      Sales Revenues do not include charges for transportation of Licensed
      Products or sales taxes, or any applicable goods and services tax or other
      value added or similar tax.

            

    

    
      	
              2.05  

            	
              “Allowable Deductions”
      means:

            

    

    
      	
              (i)  

            	
              customer
      returns,

            

    

    
      	
              (ii)  

            	
              customer
      bill-backs or adjustments

            

    

    
      	
              (iii)  

            	
              defective
      goods

            

    

    
      	
              (iv)  

            	
              third
      party commissions

            

    

    
      	
              (v)  

            	
              cash
      discounts or

            

    

    
      	
              (vi)  

            	
              volume
      discounts (i.e. a lower initial selling price given solely in exchange for
      the purchase of Licensed Products over a specified volume
      level).

            

    

    

    
      
        
        

      

      
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1

        
          

        

      

      
        
        

      

    

    
      	
              3.  

            	
              GRANT
      OF RIGHTS

            

    

    

    
      	
              (i)  

            	
              SKD
      grants to Licensee an exclusive license to manufacture and have
      manufactured, to market and have marketed, to sell and have sold, and to
      distribute the Licensed Technology and any Licensed Product in the
      Territory, with right of assignment or sublicense to a third party upon
      written approval of SKD, which approval shall not be unreasonably
      withheld. The exclusive rights are limited based on prior commitments and
      contracts that SKD has entered into; therefore certain other parties will
      have rights to use the Licensed Technology on similar Licensed Products as
      does the Licensee. The additional parties previously granted rights to use
      the Licensed Technology are limited exclusively to those detailed in
      Appendix B.

            

    

    
      	
              (ii)  

            	
              SKD
      retains the right to approve clients of the Licensed Products, which
      approval shall not be unreasonably
withheld.

            

    

    

    
      	
              4.  

            	
              TERM

            

    

    

    The Term
of this Agreement shall commence upon the Effective Date and shall terminate
December 31, 2014 (five years and seven months from the Effective Date).
Contract may be extended on a year to year basis based on Licensee meeting or
exceeding the prior year minimum guarantee.

    

    
      	
              5.  

            	
              ROYALTIES
      / GUARANTEES / PAYMENTS

            

    

    

    
      	
              (i)  

            	
              Licensee
      agrees to pay SKD a Royalty of five (5%) percent of Net Sales Revenue on
      all Licensed Product it manufactures, sells and distributes. Licensee
      agrees to pay this royalty on all Licensed Products sold in the Territory,
      including those sold where patent protection does not
    exist.

            

    

    
      	
              (ii)  

            	
              Licensee
      agrees to pay SKD a royalty of fifty (50%) percent  of all
      revenue generated from sublicenses.

            

    

    
      	
              (iii)  

            	
              Licensee
      agrees to pay SKD ten (10%) percent of all revenue generated by the sale
      of advertising, sponsorships, games, and promotions to be used on the
      Licensed Product.

            

    

    
      	
              (iv)  

            	
              Licensee
      agrees to pay SKD minimum guarantee each year of the contract period as
      follows:

               

            

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          June
      1, 2009

                                        	
                                          $50,000

                                        
	
                                          Year
      1

                                        	
                                          $100,000

                                        
	
                                          Year
      2

                                        	
                                          $150,000

                                        
	
                                          Year
      3

                                        	
                                          $200,000

                                        
	
                                          Year
      4

                                        	
                                          $250,000

                                        
	
                                          Year
      5

                                        	
                                          $350,000

                                        

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        
        

      

      
        Page -
2

        
          

        

      

      
        
        

      

    

    Payment
of the Year 1 guarantee will take place no later than January 31, 2010.
Following year guarantees shall be payable in four quarterly installments. All
guarantees are recoupable against royalties earned during the year.

    
      	
              (v)  

            	
              Royalties
      are due and payable within 30 days of the end of each
    quarter.

            

    

    
      	
              (vi)  

            	
              All
      payments to be made in U.S.
Dollars.

            

    

    

    
      	
              6.  

            	
              BUYOUT

            

    

    The
parties understand and agree that the Licensed Product may draw the interest of
a major leader in the beverage industry. In the event that such a company is
interested in a buyout of the Licensed Technology, Licensee shall be entitled to
25% of revenue generated by the sale of the Licensed Technology.

    

    
      	
              7.  

            	
              VENDOR
      APPROVAL

            

    

    

    SKD and
Licensee will jointly develop and approved vendor list which is not limited to,
but may include label suppliers, adhesive manufacturers and equipment suppliers.
SKD has final approval on all vendors. Any contracts entered into b y Licensee
and sub licensees must specify that only approved vendors may be used for the
Licensed Technology.

    

    
      	
              8.  

            	
              MEDIA
      APPROVAL

            

    

    

    Licensee
may use press releases, promotional announcements, advertising, media blasts and
other media strategies to announce this Agreement or to advertise Licensed
products. SKD reserves the right to approve any and all such media prior to its
distribution; such approval shall not be unreasonably withheld.

    

    
      	
              9.  

            	
              AUDIT

            

    

    Licensee
shall keep accurate books of account and records covering all transactions
relating to the license granted in this Agreement. SKD or its duly authorized
representatives shall have the right, upon five days prior written notice and
during normal business hours, to inspect and audit Licensee’s records relating
to the Licensed Products and Licensed Technology Licensed under this Agreement.
SKD shall bear the cost of such inspection and audit, unless the results
indicate an underpayment greater than Ten Thousand Dollars ($10,000) for any
quarterly period. In that case, Licensee shall promptly reimburse SKD for all
costs of the audit along with the amount due with interest on such
sums.

    

    
      
        
        

      

      
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              10.  

            	
              SKD
      WARRANTIES.

            

    

    

    SKD
represents and warrants that:

    
      	
              (i)  

            	
              it
      has the power and authority to enter into this Agreement and has no
      knowledge as to any third party claims regarding the proprietary rights in
      the Licensed Products or Licensed Technology which would interfere with
      the rights granted under this
Agreement;

            

    

    
      	
              (ii)  

            	
              It
      has the right to license any and all rights to the Licensed Technology and
      the Licensed Products under this
Agreement;

            

    

    
      	
              (iii)  

            	
              It
      is the owner of all right, title and interest in and to the Licensed
      Technology and it will take all appropriate steps to maintain such rights
      granted to Licensee hereunder, and it has not made and will not make any
      commitments to others inconsistent with such
  rights;

            

    

    
      	
              (iv)  

            	
              It
      is granting the rights licensed  to Licensee hereunder, free and
      clear of any liens or encumbrances;

            

    

    
      	
              (v)  

            	
              As
      of the date of this Agreement, it has not received any notice from a third
      party claiming any ownership interest in any of the rights licensed
      hereunder nor has it received any notice from a third party claiming that
      the use of such rights infringes the rights of others;
  and

            

    

    
      	
              (vi)  

            	
              As
      of the date of this Agreement, no reissue, reexamination, interference,
      opposition or equivalent proceeding has been commenced with respect to any
      of the Licensed Technology.

            

    

    

    
      	
              11.  

            	
              INDEMNIFICATION
      BY SKD

            

    

    

    SKD shall
indemnify, defend and hold harmless Licensee from any damages and liabilities
(including reasonable attorneys’ fees and costs) arising from (a) any breach of
SKD’s representations, warranties and covenants unless this Agreement and (b)
any claim that the Licensed Technology infringes the patent or intellectual
property rights of any third party.

    

    
      	
              12.  

            	
              LICENSEE
      WARRANTIES

            

    

    

    
      	
              (i)  

            	
              Licensee
      represents and warrants that it will use its reasonable commercial efforts
      to manufacture, market, sell, and distribute the Licensed Product and that
      its manufacture, marketing, sale and distribution of the Licensed Product
      shall be in conformance with all applicable laws and
      regulations.

            

    

    
      	
              (ii)  

            	
              Licensee
      further represents and warrants that all labeled and bottled beverages
      manufactured by either Licensee or any sublicense will meet applicable
      government regulations and quality assurance standards. Licensee shall
      maintain at all times suitable product liability insurance covering all
      labeled beverage bottles manufactured and sold by Licensee hereunder in an
      amount of not less than $10,000,000 per occurrence, naming SKD as an
      additional insured party. Licensee shall provide SKD with copies of
      certificates evidencing the foregoing insurance
  coverage.

            

    

    

    
      	
              13.  

            	
              INDEMNIFICATION
      BY LICENSEE.

            

    

    

    Licensee
shall indemnify, defend and hold harmless SKD from any damages and liabilities
(including reasonable attorneys’ fees and costs) arising from (a) any breach of
Licensee’s representations, warranties and covenants under this Agreement, and
9b) any claims arising out of Licensee’s advertising or marketing of the
Licensed Technology or the Licensed Products, except to the extent based on
information provided to Licensee by SKD.

    

    
      
        
        

      

      
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              14.  

            	
              OWNERSHIP/INFRINGEMENT
      AGAINSTS THIRD PARTIES

            

    

    

    
      	
              (i)  

            	
              The
      Licensed Technology as well as any Improvements (including improvements
      made, developed, or conceived of by the Licensee after the Effective Date)
      and all intellectual property rights relating to the Licensed Technology
      shall be owned and shall be the exclusive property of
  SKD.

            

    

    
      	
              (ii)  

            	
              Licensee
      agrees to notify SKD of any improvements or possible patent filings
      related to the Licensed Technology. SKD will have the right to file for
      patent protection on any Improvements or Intellectual Property developed;
      Licensee will pay for all costs associated with such actions. Licensee
      will have rights to use any Improvements, patents, or patents pending for
      the duration of the contract.

            

    

    
      	
              (iii)  

            	
              In
      the event that either party learns of limitations or infringements of the
      Licensed Technology or the Licensed Products, the party shall promptly
      notify the other party in writing of the infringements or limitations. SKD
      shall have the right to commence lawsuits against third persons arising
      from infringement of the Licensed Technology or the Licensed Products. In
      the event that SKD does not commence a lawsuit against an alleged
      infringer within sixty days of notification by Licensee, Licensee may
      commence a lawsuit against the third party. Before filing suit, Licensee
      shall obtain the written consent of SKD to do so and such consent shall
      not be unreasonably withheld. SKD will cooperate fully and in good faith
      with Licensee for the purpose of securing and preserving Licensee’s rights
      to the Licensed Technology and the Licensed Products. Any recovery
      (including, but not limited to a judgment, settlement or licensing
      agreement included as resolution of an infringement dispute) shall be
      divided equally between the parties after deduction and payment of
      reasonable attorney’s fees to the party bringing the
    lawsuit.

            

    

    

    
      	
              15.  

            	
              CONFIDENTIALITY

            

    

    

    The
parties acknowledge that each party may be furnished or have access to
confidential information that relates to each other’s business (the
“Confidential Information”). In the event that Confidential information is in
written form, the disclosing party shall label or stamp the materials with the
word :Confidential” or some similar warning. In the event that Confidential
Information is transmitted orally, the disclosing party shall promptly provide a
writing indicating that such oral communication constitutes Confidential
Information. The parties agree to maintain the Confidential Information in
strictest confidence for the sole and exclusive benefit of the other party and
to restrict access to such Confidential Information to persons bound by this
Agreement, only on a need-to-know basis. Neither party, without prior written
approval of the other, shall use or otherwise disclose to others, or permit the
use by others of , the Confidential Information.

    

    
      
        
        

      

      
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              16.  

            	
              SKD’S
      RIGHT TO TERMINATE

            

    

    

    SKD shall
have the right to terminate this Agreement, upon thirty (30) days prior written
notice to Licensee to cure, for the following reasons:

    
      	
              (a)  

            	
              Licensee
      fails to pay Royalties when due or fails to accurately report Net Sales
      Revenue, under this Agreement or fails to comply with any other material
      obligation of Licensee set forth in this Agreement, and such failure is
      not cured within thirty days after written notice from SKD;
    or

            

    

    
      	
              (b)  

            	
              Licensee
      fails to maintain confidentiality regarding SKD’s Confidential
      Information.

            

    

    

    
      	
              17.  

            	
              EFFECT
      OF TERMINATION

            

    

    

    Promptly
after termination of this Agreement, all Royalty obligations as established in
the Payments Section shall immediately become due. Promptly after the
termination of this Agreement, all rights granted to Licensee under this
Agreement shall terminate and revert to SKD, and Licensee will refrain from
further marketing, manufacturing, distribution, or use of any Licensed
Technology or Licensed Product.

    

    
      	
              18.  

            	
              SURVIVAL

            

    

    

    The
obligations of Section 7, 8, 9, 12, 13, 15, and 16 through and including 25
shall survive any termination of this Agreement.

    

    
      	
              19.  

            	
              DISPUTE
      RESOLUTION

            

    

    

    If a
dispute arises and cannot be resolved by the parties, either party may make a
written demand for formal resolution of the dispute. The written request will
specify the scope of the dispute. Within 30 days after such written notice, the
parties agree to meet, for one day, with an impartial mediator and consider
dispute resolution alternatives other than litigation. If an alternative method
of dispute resolution is not agreed upon within 30 days of the one-day
mediation, either side may start litigation proceedings.

    

    
      	
              20.  

            	
              GOVERNING
      LAW AND JURISDICTION

            

    

    

    This
Agreement shall be governed in accordance with the laws of the State of
California.

    

    
      	
              21.  

            	
              WAIVER

            

    

    

    The
failure to exercise any right provided in this Agreement shall not be a waiver
of prior or subsequent rights.

    

    
      	
              22.  

            	
              SEVERABILITY

            

    

    

    If any
provision of this Agreement is invalid under applicable statute or rule of law,
it is to be considered omitted and the remaining provision of this Agreement
shall in no way be affected.

    

    
      
        
        

      

      
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              23.  

            	
              ENTIRE
      UNDERSTADING

            

    

    

    This
Agreement expresses the complete understanding of the parties and supersedes all
prior representations, agreements and understandings, whether written or oral.
This Agreement may no t be altered expect by a written document signed by both
parties.

    

    
      	
              24.  

            	
              ATTCHMENTS
      AND EXHIBITS

            

    

    

    The
parties agree and acknowledge that all attachments, exhibits and schedules
referred to in this Agreement are incorporated in this Agreement by
reference.

    

    
      	
              25.  

            	
              NOTICES

            

    

    

    Any
notice or communication required or permitted to be given under this Agreement
shall be sufficiently given when received by certified mail, or sent by
facsimile transmission or overnight courier or, with evidence of receipt, sent
by electronic mail.

    

    
      	
              26.  

            	
              NO
      JOINT VENTURE OR AGENCY

            

    

    

    Nothing
contained in this Agreement shall be construed to place the parties in the
relationship of agent, employee, franchisee, officer, partners or joint
ventures. Neither party may create or assume any obligation on behalf of the
other .

    

    
      
        
        

      

      
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7

        
          

        

      

      
        
        

      

    

    
      	
              27.  

            	
              ASSIGNABILITY

            

    

    

    This
Agreement shall be binding upon and shall inure to the benefit of the successors
and assigns of the parties hereto. Neither this Agreement nor any right,
interest or obligation hereunder may be assigned, pledged or otherwise
transferred by any party, whether by operation of law or otherwise, without the
prior consent of the other party, which consent shall not be unreasonably
withheld.

    Each
party has signed this Agreement through its authorized representative. Each
party, having read this Agreement, indicates its consent to the terms and
conditions by its signature below.

    

    

     

    
      
         

      

      
        Page -
8United States Securities & Exchange Commission EDGAR Filing

EXHIBIT 10.1

CONTRACT

Between

(1)

General Metals Corp. ( “GNMT” ) having its principal executive office at  615 Sierra Rose Dr Suite 1, Reno, NV 89511

and

(2)

 Stephan Tandon,  Redingskamp 14 b, 22523 Hamburg, Germany – Emanuel Suchefort, Rotkelchenweg 26, 25421 Pinneberg, Germany  - (“The Advisers”)

Hereafter also referred to as “the Parties”

It is agreed as follows

1.

Services

(1)

The Advisers are exclusive mediators. The Advisers shall mediate the following services ( the”Services”) to GNMT as well as other services which may be agreed from time to time by the Parties. The following services will be done by the partners of the Advisers for 3months. The partners will fulfil those different steps constantly and/or temporary through the whole time: 

–

translation and implementation/installation of published news/press releases directly at leading financial middle European web-sites like wallstreet-online.de, financial.de, finanznachrichten.de etc, this press work will be done by a leading press-team and will run for 3months

–

news-/stockletter-/analyst-teams will start. They will transmit and distribute reports/recommendations over subscriber databases 

–

reports/recommendations in the online services will be transmitted to the investors-communities

–

updates, press-releases, news and information about your company will be prepared and worked out for reports/recommendations   

–

communities with over 200000 investors who are constantly interested in getting news, reports and recommendations of international Micro- and Small-Caps will be used for the initial start

(2)

The Advisers will act exclusively as transmitter of information. The Advisers in particular will not comment on nor influence any information received from GNMT.

(3)

The Advisers shall start to transmit the information to the partners immediately upon receipt of the first information from GNMT about its business.

2.

Fees

(1)

GNMT shall pay a fee to the Advisers for their Services in the form of GNMT Common St. par value: 0,001U$ -2000000 restricted shares 144     -     

Emanuel Suchefort: 1100000          Stephan Tandon: 900000     

(2)

The fee shall be due and payable free of any costs and charges.

3.

Termination

(1)

This Contract shall remain in force until the agreed services have been completed. Either Party shall however be entitled to terminate this Contract earlier by giving the other Party not less than one month notice in writing, but not with effect prior to three months after receipt of information pursuant to section 1 (3).

4.

Liability

(1)

The Advisers shall not be responsible for, and indemnify GNMT in respect of, any damage, loss or liability (whether criminal or civil) of or suffered by ( including costs and expenses properly incurred in connection with any claim ) GNMT ( or its officers and employees ) in connection with breach of duties under this agreement and any activities of the partners.

(2)

The limitation of liability under section 4 (1) shall not apply to (i) rights and remedies which GNMT may have under applicable law as a result of the Adviser’s failure to fulfill essential Contractual duties, (ii) any rights and remedies of GNMT under applicable law for fraud, willful misconduct or gross negliance and/or (iii) in case of injury of life, body or health.

(3)

GNMT shall indemnify and hold harmless Advisers from and against any liabilities, damages and reasonable costs and expenses which may arise out of or in connection with information or documentation provided by or for GNMT under this Contract.

5.

General

(1)

This Contract is governed by and shall be construed in accordance with German law.

(2)

The courts in Hamburg, Germany, shall have exclusive jurisdiction over all disputes arising out of or in connection with this Contract.

(3)

The parties hereto, agree that this agreement may be transmitted by facsimile or such similar device and that the reproduction of signatures by facsimile or such similar device will be treated as binding as if originals.

April, 13th   2009

				
	Signed

	 
	Signed

	General Metals Corporation

	                          

	Advisors

	 
	 
	/s/ Stephan Tandon  

	/s/ Steve Parent

	 
	 

	 
	 
	/s/ Emanuel Suchefort

	Steve Parent, President and CEO

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