Document:

bluefire_8k-ex1001.htm

    Exhibit 10.1

     

    
      EXECUTIVE EMPLOYMENT
AGREEMENT

      

      This
Agreement is made and entered into as of the 31day of March, 2008 (“Agreement
Date”) by and between BlueFire Ethanol, Inc., a Nevada corporation and
subsidiary of BlueFire Ethanol, Inc., a Nevada corporation (hereinafter referred
to as the “Company”), and Christopher Scott, an
individual (hereinafter referred to as the “Employee”).  The Company
and the Employee are collectively referred to as the “Parties”.  This
Agreement supersedes any similar agreement between the Parties.

      

      WITNESSETH:

      

      Whereas it is in the best
interest of the Company to retain quality personnel such as the Employee;
and

      

      Whereas the Employee is
willing to enter into an employment agreement with the Company in accordance
with the conditions hereinafter provided.

      

      Now, therefore, for and in
consideration of the terms and conditions contained herein, the Parties agree as
follows, to wit:

      

      
        	
                1.  

              	
                Definitions.  As
      used in this Agreement:

              

      

       

      
        	
                A.  

              	
                “Company” means BlueFire
      Ethanol, Inc. its successors and assigns, and any of its present or future
      subsidiaries or organizations controlled by, controlling, or under common
      control with it.

              

      

       

      
        	
                B.  

              	
                “Confidential
      Information” means any and all information disclosed or made
      available to the Employee or known by the Employee as a direct or indirect
      consequence of or through Employee’s employment by the Company and not
      generally known in the industry in which the Company is or may become
      engaged, or any information related to the Company’s products, processes,
      or services, including, but not limited to, information relating to
      research, development, inventions, manufacture, purchasing, accounting,
      engineering, marketing, merchandising, or
  selling.

              

      

       

      
        	
                C.  

              	
                “Inventions” mean
      discoveries, concepts and ideas, whether patentable or not, relating to
      any present or prospective activities of the Company, including, but not
      limited to, devices, processes, methods, formulae, techniques,
      applications, technology and any improvements to the foregoing. Such
      definition shall also encompass all such discoveries, concepts and ideas,
      even if formulated by the Employee prior to his employment by the
      Company.

              

      

       

      
        	
                D.  

              	
                “Company Monthly Base Pay”
      means the employee’s last monthly remuneration, prior to
      termination of Employee’s employment with the Company, before federal,
      state, and local taxes and other withholding, but exclusive of extra
      compensation, such as that attributable to bonuses, overtime or employee
      retirement or pension benefits.

              

      

       

      
        	
                E.  

              	
                “Conflicting
      Organization” means any person or organization engaged, directly or
      indirectly, in the research, development, production, marketing or selling
      of a Conflicting Product.

              

      

       

      
        	
                F.  

              	
                “Conflicting Product”
      means any product, process, technology, application, or service of any
      person or organization, other than the Company, in existence or under
      development, which resembles, competes with or is marketed or offered for
      sale or lease to the same or similar potential customers as a product,
      process, technology, application, or service which is the subject of
      research, development, production, marketing or selling activities of the
      Company.

              

      

       

      
        	
                2.  

              	
                Employment. The Company
      hereby employs the Employee and the Employee hereby agrees to accept
      employment with the Company upon the terms and conditions herein set
      forth.

              

      

       

      
        	
                3.  

              	
                Term.  The
      Company hereby employs the Employee for a period of roughly sixteen (16)
      months beginning on the 1st day of February, 2008, and ending on the 31st
      day of May, 2009, unless sooner terminated as provided in Section 13
      (Disability), Section 14 (Death During Employment) or Section 16
      (Termination), hereof; provided, this Agreement may be extended for
      additional periods or its terms amended upon the mutual written agreement
      of the Parties.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                4.  

              	
                Position.  The
      Employee shall be employed in the capacity of Chief Financial Officer
      with such managerial, administrative and other services as are
      customarily associated with or incident to such position and shall perform
      such other duties and responsibilities for the Company as the Company may
      reasonably require, consistent with such position.  The Employee
      shall not be assigned nor requested to perform duties or functions for
      which he has not been adequately trained or for which he does not have
      adequate education and/or professional
  experience.

              

      

       

      
        	
                5.  

              	
                Extent of
      Services.  The Employee shall diligently and
      conscientiously devote Employee’s time, attention and energies to the
      business of the Company and shall not, during the term of this Agreement,
      be engaged in any other full time business activity whether or not such
      business activity is pursued for gain, profit, or other pecuniary
      advantage; however, except as set forth in Section 16, this provision
      shall not be construed as preventing the Employee from investing
      Employee’s assets in such form or manner as will not require full-time
      services on the part of the Employee outside of the
    Company.

              

      

       

      
        	
                6.  

              	
                Working
      Facilities.  The Employee shall be furnished with such
      facilities suitable to Employee’s position and adequate for the
      performance of Employee’s duties and the conduct of the Company’s
      business.   The Employee’s principal office shall be
      located in the area selected by the Company; provided, however, the
      Employee agrees to do such traveling as is required to carry out
      Employee’s duties hereunder.

              

      

       

      
        	
                7.  

              	
                Compensation.  The
      Company’s Board of Directors or the management of the Company may increase
      the Employee’s Company Monthly Base Pay from time to time as the Board may
      see fit to grant such an increase. The Employee shall be a participant in
      any deferred compensation, bonus and/or stock option plans designed and
      implemented by the Company’s Board of Directors for the benefit of the
      Company’s key executives and employees.   The Employee
      shall participate in any such plans at a level commensurate with
      Employee’s position with the
Company.

              

      

       

      
        	
                A.  

              	
                Company Monthly Base
      Pay. For all services rendered by the Employee under this
      Agreement, Employee shall be paid a salary in the sum of $ 170,000 per
      year, beginning on February 1, 2008 through December 31, 2008. These
      amounts shall be paid in equal monthly or bi-monthly installments to the
      Employee as Company Monthly Base
Pay.

              

      

       

      
        	
                B.  

              	
                Benefits. Employee shall
      be eligible for Company-paid health insurance, dental insurance, 401K Plan
      when available, short/long term disability coverage and other benefits
      that are and may become available. Employee shall be eligible to
      participate in any such benefits at a level commensurate with Employee’s
      position with the Company.

              

      

       

      
        	
                8.  

              	
                Expenses.  All
      expenses for transportation and travel, including business use of personal
      automobile, incurred by the Employee for the furtherance of the legitimate
      business interests of the Company, shall be reimbursed or directly paid by
      the Company upon presentment of receipts in accordance with the record
      keeping requirements of the Internal Revenue
  Service.

              

      

       

      
        	
                9.  

              	
                Right to
      Participate.  The Employee shall have the right to
      participate in all other benefits of employment generally made available
      to the Company’s executive and managerial employees including but not
      limited to medical, dental, disability, life insurance, retirement plans
      and any other benefit(s) presented by the Company’s Board of Directors and
      befitting the Employee’s position and performance as
      available.

              

      

       

      
        	
                10.  

              	
                Vacation.  The
      Employee shall be entitled to paid vacation, as
  follows:

              

      

       

      ten  (10)
working days during the 2008 calendar year

       

      fifteen  (15)
working days during the 2009 calendar year

       

      For
purposes hereunder, the term “working days” refers to Monday through Friday,
exclusive of weekends and holidays, observed by the Company as determined by the
Board of Directors.  Employee will not schedule vacation without prior
written approval from the Company’s CEO.   Unused vacation days
may not be carried into the next calendar year nor will the Employee receive
compensation for unused vacation days, unless Employee’s work requirements cause
Employee to miss vacation days, in which case Employee can carry over unused
vacation days or be compensated for unused vacation days.

       

      
        	
                11.  

              	
                Right to
      Inventions.  With respect to all Inventions made or
      conceived by the Employee, whether or not during the hours of Employee’s
      employment or with the use of Company facilities, materials or personnel,
      either solely or jointly with others, during the term of Employee’s
      employment by the Company, and without royalty or any other
      consideration:

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                A.  

              	
                Reports.  The
      Employee shall inform the Company promptly and fully of such inventions by
      a written report, setting forth in detail the structures, procedures, and
      methodology employed and the result achieved.   A report
      shall also be submitted by the Employee upon completion of any study or
      research project undertaken on the Company’s behalf, whether or not in the
      Employee’s opinion a given study or project has resulted in an
      invention.

              

      

       

      
        	
                B.  

              	
                Assignment.  The
      Employee hereby assigns and agrees to assign to the Company all of
      Employee’s rights to such Inventions and to all proprietary right therein,
      based thereon or related thereto, including, but not limited to,
      applications for United States and foreign letters patent and resulting
      letters patent.

              

      

       

      
        	
                C.  

              	
                Patents.  At
      the Company’s request and expense, the Employee shall execute such
      documents and provide such assistance as may be deemed necessary by the
      Company to apply for, defend or enforce any United States or foreign
      letters of patent based on or related to such
  Inventions.

              

      

       

      
        	
                D.  

              	
                Prior Inventions and
      Intellectual Property. All prior technical knowledge, inventions,
      know-how developed or learned by the Employee concerning the business of
      the Company, shall become the property of the Company upon execution of
      this Agreement, and the Employee shall not have any further proprietary
      rights to such Intellectual
Property.

              

      

       

      
        	
                12.  

              	
                Disclosure
      of Confidential Information.

              

      

       

      
        	
                A.  

              	
                Confidentiality.  Except
      as required in the performance of Employee’s duties during the term of
      Employee’s employment by the Company, the Employee shall treat as
      confidential and shall not, directly or indirectly, use, disseminate,
      disclose, publish, or otherwise make available any Confidential
      Information or any portion thereof.   This provision shall
      remain in effect for a period of two (2) years after any termination of
      such employment.

              

      

       

      
        	
                B.  

              	
                Return of Confidential
      Information.  Upon termination of Employee’s employment
      with the Company, all documents, records, notebooks, and similar
      repositories containing Confidential Information, including copies
      thereof, then in the Employee’s possession, whether prepared by him or
      others, shall be promptly returned to the Company.  If at any
      time after the termination of employment the Employee determines that he
      has any Confidential Information in Employee’s possession or control, he
      shall immediately return to the Company all such Confidential Information,
      including all copies and portions
thereof.

              

      

       

      
        	
                13.  

              	
                Disability.  To
      the extent not covered by the Company’s disability insurance, if any, if
      the Employee is unable to perform Employee’s services during the term of
      this agreement by reason of illness or incapacity, he shall receive
      Employee’s full compensation during the first two (2) months of such
      disability, to the extent not covered by the Company’s disability
      insurance, if any.   If such disability should continue for
      longer than two (2) months, the compensation otherwise payable to the
      Employee during the continued period of disability shall be reduced by
      fifty percent (50%) provided such continued period of disability lasts no
      longer than four (4) months.  The Employee’s full compensation
      shall be reinstated upon Employee’s return to employment and the discharge
      of Employee’s full duties hereunder.  This provision shall not
      be operative until all benefits under the Company’s long-term disability
      insurance plan, if any, have been calculated and shall not be considered
      in determining the amount of benefits under any such insurance
      plan.

              

      

       

      
        	
                A.  

              	
                In
      the event of disability of the Employee, shares of the Company, as
      provided in Section 7(B) of this Agreement shall continue as if this
      Agreement were in full force and
effect.

              

      

       

      
        	
                14.  

              	
                Death during
      Employment.  If the Employee dies during the term of this
      Agreement, this Agreement shall be terminated; provided, however, the
      Company shall pay to the estate of the employee any salary which would
      have otherwise been earned for the balance of the month in which the
      Employee’s death occurred.

              

      

       

      
        	
                15.  

              	
                Non-Competition.  During
      the term of this Agreement and or as long as thereafter as Employee is
      receiving unemployment insurance:

              

      

       

      
        	
                A.  

              	
                For
      a period of Three (3) years after Termination, the Employee shall not
      engage in competition with the Company, either directly or indirectly, in
      any manner or capacity, as advisor, consultant, principal, agent, partner,
      officer, director, stockholder, employee, representative, spokesman or
      otherwise, in any phase of the business carried on by the Company at any
      time.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                B.  

              	
                For
      a period of Three (3) years after the termination of this Agreement, the
      Employee shall not solicit anyone who was an employee of the Company when
      the Employee’s employment with the company terminated or solicit anyone
      then employed by the Company to terminate or refrain from renewing
      Employee’s or her employment with the
Company.

              

      

       

      
        	
                C.  

              	
                For
      a period of Three (3) years after the termination of this Agreement, the
      Employee shall not, either directly or indirectly, solicit any customer,
      broker, or distributor of the Employer, for such products as are
      manufactured and/or sold by the Employer, and Employee will similarly not
      engage in the business of the manufacture and sales of such products as
      are manufactured and/or sold by the Employer within the said
      period.

              

      

       

      
        	
                16.  

              	
                Termination.  The
      Employee may terminate this Agreement upon thirty days (30) written notice
      to the Company.  Upon the effective date of the Employee
      terminating this Agreement, the Employee’s entitlement to any salary or
      other benefits hereunder shall cease subject to the provisions of Section
      13.

              

      

       

      
        	
                A.  

              	
                The
      Employer may terminate this Agreement at any time with twenty-four (24)
      hours prior written notice if the Employee commits any material act of
      dishonesty, discloses confidential information, is guilty of gross
      misconduct, or acts in any way that has a direct, substantial and adverse
      effect on the Company’s reputation.  Upon the effective date of
      the Company terminating this Agreement, the Employee’s entitlement to any
      salary or other benefits hereunder shall
cease.

              

      

       

      
        	
                17.  

              	
                Certain Provisions to Survive
      Termination.  Notwithstanding any termination of this
      employment under this Agreement, the Employee, in consideration of
      Employee’s employment hereunder to the date of such termination, shall
      remain bound by the provisions of Section 12 and 15.  It is
      acknowledged that the Company would be irrevocably damaged if the Employee
      were to violate the provisions of Section 12 and/or 15, and consequently,
      in addition to all other remedies that may be available to it, the Company
      shall be entitled to injunctive relief for any actual or threatened
      violation of such Sections.

              

      

       

      
        	
                A.  

              	
                In
      the event of termination of the Agreement as a result of the disability or
      death of the Employee, it is agreed that the provisions of Section 7(B)
      relating to shares of the Company shall continue as if the Employee were
      alive and fulfilling Employee’s obligations under this Agreement and not
      disabled or dead.

              

      

       

      
        	
                18.  

              	
                Notice.  All
      notices herein shall be in writing and shall be deemed to have been duly
      given at the time personally delivered or deposited in the United States
      Mail, postage prepaid, to the address of the respective parties set forth
      below their signatures hereto, subject to changes upon notice to the other
      party.

              

      

       

      
        	
                19.  

              	
                Waiver.  Failure
      to insist upon a strict compliance with any of the terms or conditions of
      this Agreement shall not be deemed waiver of such terms or conditions, nor
      shall any waiver of any term, condition or right of any party at any time
      be deemed a waiver of any other term, condition or right of any party
      hereto, nor shall it preclude the party from subsequently asserting or
      relying upon such term, condition or
right.

              

      

       

      
        	
                20.  

              	
                Severability.  The
      invalidity or enforceability of any provision hereof shall in no way
      affect the validity or enforceability of any other
    provision.

              

      

       

      
        	
                21.  

              	
                Modification.  There
      are no verbal understandings between the Parties.  This
      Agreement contains the entire agreement of the Parties and shall not be
      changed, modified, or terminated, except in writing signed by the
      Parties.

              

      

       

      
        	
                22.  

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

              

      

       

      
        	
                23.  

              	
                Assignment.  The
      rights and obligations of the Company under this Agreement shall inure to
      the benefit of and shall be binding upon the successors and assigns of the
      Company.  The Employee’s rights, powers, privileges and
      immunities under this Agreement shall not be assignable by the Employee
      without the prior written consent of the
  Company.

              

      

       

      
        	
                24.  

              	
                Binding
      Effect.  This Agreement shall be binding upon and shall
      inure to the benefit of the Parties and their respective heirs, legal
      representatives, successors and
assigns.

              

      

       

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      

      IN WITNESS WHEREOF, the
Parties have hereto set their hands on the day and year first above
written.

      

      
        
          	 	COMPANY:
      BlueFire Ethanol, Inc.	 
	 	 	 	 

        

      

       

      This
agreement is hereby ratified by a majority of the BlueFire Ethanol, Inc. Board
of Directors on this 31 day of March,  2008.

       

      
        
          	 	 	 
	 	 	 	 
	
                   

                	
                  By: 

                	/s/ Arnold
      R. Klann	 
	 	Name:	Arnold
      R. Klann 	 
	 	Title:	Chairman/CEO	 
	 	 	 	 

        

      

    

     

     

    
       

      
        
          	 EMPLOYEE:	 	 
	 	 	 	 
	
                   

                	
                  By: 

                	/s/ Christopher
      Scott	 
	 	Name:	Christopher
      ScottEXCLUSIVE SALES AND MARKETING AGREEMENT

Exhibit 10.4

EXCLUSIVE SALES AND MARKETING AGREEMENT

This Exclusive Sales and Marketing Agreement (hereinafter called “Agreement”), to be effective as of this 1st day of April, 2008 (hereinafter the “Agreement Date”), is by and between Marine Life Sciences, LLC (the “PRODUCER”), a limited liability company organized under the laws of the state of Nevada and having its principal place of business at 2157 Lincoln Street, Salt Lake City, Utah 84106 and ForeverGreen International, LLC, a limited liability company organized under the laws of Utah and having its principal place of business at 972 North 1430 West, Orem, Utah USA (hereinafter, referred to as “CUSTOMER”).  This Agreement supersedes and replaces in their entirety, without prejudice, any and all other agreements or contracts between the parties.

WITNESSETH:

WHEREAS

A.

PRODUCER is the owner of the exclusive license of the Subject Product as defined below;

B.

PRODUCER is willing and able to grant an exclusive world-wide right to market and sell the Subject Product to the CUSTOMER on the terms set forth herein;

C.

CUSTOMER desires to obtain said exclusive right to market and sell the Subject Product in the multi level marketing industry, as further defined in this Agreement.

NOW, THEREFORE, for and in consideration of these premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto expressly agree as follows:

1.

DEFINITIONS AS USED HEREIN

1.1

The term “Subject Product” shall mean the processed marine phytoplankton known as Alpha-3 CMP, which includes the Tom Harper story and marketing materials related to the Tom Harper story, as well as any subsequent improvements thereto.

1.2

The term “APPROVED Product” shall mean any present CUSTOMER products containing the Subject Product as an ingredient including without  limitation CUSTOMER’S current products referred to as FrequenSeaTM, FrequenSeaTM tarter Shots and SecreSeaTM Youth Serum, SecreSeaTM Hydrating Cream, SecreSeaTM Scrub and SecreSeaTM Mineral Mask as well as any additional CUSTOMER Product(s) containing the Subject Product(s) as approved in the future by the PRODUCER. Initial APPROVED product list is attached here as exhibit B and will be from time to time be amended with new approved products.

1.3

For the purposes of this Agreement, a Unit of APPROVED Product is defined as 1200 mg of Subject Product. 

1.4

The term “Multi-Level Marketing” shall mean the form of marketing, also called Network Marketing, in which individuals are associated with a parent company as independent contractors, also known as Members or distributors, to market products and are compensated based on their sales of products by earning commissions, bonuses or rebates.  Typically, commissions are earned on sales to the end user or consumer who may be a customer or a distributor/Member that buys the product at a wholesale price for personal consumption. 

1.5

The term “Territory” shall mean and include the entire world.

1.6

The term “Product Units Sold” shall mean the total amount of APPROVED Product Units sold, not limited to but, including demonstration, samples, market giveaways or promotions for or on behalf of the CUSTOMER in each calendar month.  

1.7

he term “Products Produced” shall mean the total amount of APPROVED Product units produced in each calendar month.

1.8

the term “the Parties” shall mean CUSTOMER and PRODUCER. 

2.  GRANT OF RIGHT

2.1

The PRODUCER hereby grants to the CUSTOMER the exclusive right to market, sell and offer for sale throughout the Territory through Multi-Level Marketing the Subject Product.  The CUSTOMER warrants that the Subject Product will be used as an ingredient in the APPROVED Products.  The CUSTOMER covenants and agrees to purchase the Subject Product exclusively from the PRODUCER.  

            3.  MARKETING 

3.1

CUSTOMER shall use reasonable efforts, as defined herein, to effect the sale of APPROVED Products by means of Multi-Level Marketing in markets in the Territory as soon as practicable.

3.2

PRODUCER and CUSTOMER have agreed to a sampling program to help promote  and market the APPROVED Products. CUSTOMER may purchase a quantity up to ten percent (10%) of the previous calendar quarter purchases of the Subject Product for the sole purpose of sampling. PRODUCER will provide a discounted rate as detailed in Exhibit A.

3.3

CUSTOMER and PRODUCER will communicate in writing regarding any future or improved products which must be approved by the PRODUCER prior to any new products being introduced by the CUSTOMER or improvements made to APPROVED  products to ensure a combined effort to exploit such new APPROVED Product(s).  

3.4

CUSTOMER shall provide written notice to PRODUCER when product orders are placed by CUSTOMER to PRODUCER in the form of a purchase order.

3.5

CUSTOMER will provide to PRODUCER written notice of all existing and new  product registrations in both the United States and foreign countries regarding  APPROVED Products within ten (10) days of the execution of this Agreement or the receipt of new product registrations. PRODUCER will provide to CUSTOMER written notice of all existing and new Product registrations in both the United States and foreign  countries regarding Subject Product within ten (10) days of the execution of this Agreement or the receipt of new Subject Product registrations.  CUSTOMER and PRODUCER will coordinate all product registrations involving the Subject Product in the U.S.A. and all foreign countries to advance the Parties mutual interests.

3.6   PRODUCER shall be the exclusive and sole manufacturer of the Subject Product for the CUSTOMER.

3.7    The PRODUCER shall have the right to review and approve CUSTOMER’s plans to expand its sales and marketing of APPROVED Product(s) in any and all foreign markets outside of the existing CUSTOMER markets of the United States, Canada, Mexico, Australia, New Zealand, Singapore, Japan and the European Union. Prior to the official opening of any foreign market by CUSTOMER, CUSTOMER shall disclose to PRODUCER the CUSTOMER’s plan and other material information relating to any proposed expansion of marketing the APPROVED Product.  If PRODUCER objects to any aspect of CUSTOMER’s proposed expansion plan, it shall communicate said objection(s) to CUSTOMER.  The Parties agree to use their best efforts to reach a mutually satisfactory agreement relative to any and all objections.

3.8

PRODUCER will share with and distribute to CUSTOMER appropriate data   regarding the Subject Product including but not limited to research results,  clinical and laboratory projects, published research articles or papers, and Subject Product licenses or registrations with government agencies. 

            4. PAYMENTS AND REPORTS

4.1      CUSTOMER shall pay to the PRODUCER for each kilogram of the Subject Product mount commensurate with the Bulk Pricing Schedule attached hereto as Exhibit A.

4.2       All payments required under this agreement for the months of April 1, 2008 to March 31, 2009 shall be made by the CUSTOMER to the PRODUCER as follows: 

Within sixty (60) days from the arrival date of shipment of SUBJECT Product to CUSTOMER’s manufacturer, CUSTOMER shall pay to PRODUCER fifty percent (50%) of the total payment due.

Within ninety (90) days from the arrival date of shipment of SUBJECT Product to CUSTOMER’s manufacturer, CUSTOMER shall pay to PRODUCER the remaining ( 50%) percent of the total payment due.

Payment terms for the remaining contract years shall be set by the mutual agreement of the Parties. Payment terms will reflect the payment history of the CUSTOMER. If the CUSTOMER makes a payment in full to the PRODUCER within the first sixty (60) days from the arrival date of a shipment of SUBJECT Product to CUSTOMER’S manufacturer, PRODUCER’S will give CUSTOMER a discount equal to two percent (2%) of the total amount due to the PRODUCER.

 

4.3       Each month a written statement of the Product Units Sold and Product(s) Produced during such calendar month shall be prepared and shall be sent to the PRODUCER. The CUSTOMER will work out an arrangement with all manufacturers of products containing the “Subject Product” to allow for verification of Products Produced. All accounting statements will be sent on a monthly basis to the PRODUCER’s representative Greg Popp at 2157 South Lincoln Street, Salt Lake City, Utah 84106.  All payments to PRODUCER will be made to and sent to Marine Life Sciences at 2157 South Lincoln Street, Salt Lake City, Utah 84106.

4.4      Should the CUSTOMER fail to make any payment whatsoever due and payable to the PRODUCER hereunder at the time it is due, it shall be deemed an event of default  as provided for under Paragraph 11.3.

4.5      All payments due hereunder shall be paid by check or bank wire payable in United States of America currency to PRODUCER, or to the account of PRODUCER at such bank as PRODUCER may from time to time designate by notice to CUSTOMER.

4.6       In the event that any payments due hereunder is not made when due, the payment shall accrue interest beginning on the tenth day following the due date thereof, calculated at the rate of prime plus two percent per annum.  If any payments are past  due for a period in excess of thirty days from the payment due date, the interest rate shall increase to 18% per annum for the entire amount of any unpaid balance.  Each   payment shall be applied firstly to past due interest and secondly on account of the principal amount due and owing.  Each payment when made shall be accompanied by interest accrued to the date of payment.  The payment and acceptance thereof shall not   negate or waive the right of PRODUCER to seek any other remedy, legal or equitable, to which it may be entitled because of the delinquency of any payment.

5.     RECORDS AND INSPECTION

5.1      CUSTOMER shall maintain or cause to be maintained a true and correct set of records pertaining to the production of the PRODUCT Produced.  During the term of this Agreement, should any disagreement arise as to the amount of Subject Product used to produce an APPROVED Product, the Parties shall mutually appoint an independent accountant to perform an audit of the CUSTOMER’s records during ordinary business hours.  In all cases where the audit reveals that product’s produced do not contain the agreed amounts of Subject Product it shall be deemed an event of default as described in paragragh 11.3 herein.  CUSTOMER may correct said default by using the agreed upon amount of SUBJECT PRODUCT in subsequent products produced and paying an amount to producer equal to the shortfall amount of Subject Product at the rate of .003125 per milligram plus interest at 18% (eighteen percent) per annum from the original purchase of the Subject Product in the audited product produced. In addition, the CUSTOMER shall be responsible for any and all costs incurred by the PRODUCER in connection with any audit or investigation which results in the determination of a shortfall amount of five (5) percent of Subject Product used to produce the PRODUCT(s) Produced. 

6.

PROPRIETARY INFORMATION

6.1      .DEFINITION “Proprietary Information” as used herein shall mean all or any portion of only the: (a) written, recorded, graphical or other information in tangible form disclosed  during the term of this Agreement, by one party to the other party which is labeled “Proprietary”, “Confidential”, or with a similar legend denoting the proprietary interest  therein of the disclosing party; (b) oral information which is disclosed by one party to the other party to the extent it is identified as “Proprietary” or “Confidential” at the time of oral disclosure, is reduced to written or other tangible form within thirty (30) days of oral disclosure, and such written or tangible form is labeled “Proprietary”, “Confidential”, or  with a similar legend denoting the proprietary interest therein of the disclosing party; and (c) models and other devices delivered or disclosed, during the Term of this Agreement,  by one party to the other party which have been identified in writing at the time of disclosure as being proprietary to the disclosing party; and provided further, however, Proprietary Information shall not include any data, information or device that is: (i) in the possession of the receiving party prior to its disclosure by the disclosing party and not subject to other restriction on disclosure; (ii) independently developed by the receiving party; (iii) publicly disclosed by the disclosing party; (iv) rightfully received by the receiving party from a third party without restrictions on disclosure; (v) approved for  unrestricted release or unrestricted disclosure by the disclosing party; or (vi) produced or  disclosed pursuant to applicable laws, regulations or court order, provided the receiving party has given the disclosing party prompt notice of such request so that the disclosing  party has an opportunity to defend, limit or protect such production or disclosure.

            7.  RESTRICTIONS

7.1     The Parties agree, for a period of five (5) years from the date of disclosure, without the prior written consent of the other Party regarding a specific contemplated transaction: (a) not to disclose Proprietary Information of the other Party outside of the receiving Party (b) to limit dissemination of the other Party’s Proprietary Information to only those of the receiving Party’s officers, directors and employees who require access thereto to perform their functions regarding the purposes of his Agreement; and (c) not to use Proprietary Information of the other Party except for the purposes of this   Agreement, which purposes shall include disclosure to subcontractors and second sources, both in accordance with nondisclosure agreements.  The standard of care to be exercised by the receiving Party to meet these obligations shall be the standard exercised by the receiving Party with respect to its own proprietary information of a similar nature, but in no event less than due care.

            8.  OWNERSHIP

8.1      Each Party retains all rights and title to all Proprietary Information, in any form, disclosed to the other Party pursuant to this Agreement.  Each Party acknowledges that such information is of substantial value and that any disclosure or misuse of such information is harmful to the originating Party.

      9.  NONDISCLOSURE AGREEMENTS AND CONFIDENTIALITY

9.1     The Parties shall only disclose Proprietary Information to those employees and independent contractors who require access to the Proprietary Information to permit a Party to exercise its rights and perform its obligations under this Agreement.  A Party shall not disclose any Proprietary Information to any employee or independent contractor unless the employee or independent contractor has signed a nondisclosure agreement incorporating provisions obligating the employee or independent contractor to maintain the confidentiality of the other Party’s Proprietary Information.  The Parties agree to keep   the terms and conditions of this Agreement confidential and proprietary among the Parties and/or their affiliates.

 

9.2.     CUSTOMER shall use branding owned by the PRODUCER on the APPROVED Product(s), marketing materials or other written descriptions of the APPROVED Product, labeling, packaging, sales materials and other related protected, digital or filmed communications worldwide. 

10.  TRADEMARKS

10.1     PRODUCER reserves the right to, at their sole discretion, periodically review and monitor CUSTOMER’s use of their marks for proper trademark usage, quality of goods, and other criteria as may be required by law to preserve PRODUCER’s rights, good will, and value in its trademarks. 

11.  TERM, TERRITORY AND TERMINATION

11.1     The Parties shall agree to an annual quota of total kilograms of Subject Product  purchased for the first year period. Said annual quota and subsequent increases are attached hereto in Exhibit A. If annual purchases of Subject Product do not meet or exceed said quota, the exclusivity of the right granted hereunder shall be extinguished. In the event that the payments paid by CUSTOMER to the PRODUCER do not reach the minimum annual quota amount required, the CUSTOMER may protect the exclusivity of the right granted hereunder by paying all additional amounts due for that  year ending on the last day of that year, so that the total amount paid for that year shall equal such minimum required amount.  

11.2      Unless earlier terminated as hereinafter provided, this Agreement shall continue in full force and effect for a period of five (5) years from April 1, 2008 through March 31, 2013.  If CUSTOMER has met the terms of this Agreement and the quota amounts for the first five (5) years, CUSTOMER shall have the option to extend this Agreement for an additional five (5) years subject to the successful negotiation of the quota and payments for the additional five (5) year term.

11.3     In the event of default or failure by CUSTOMER to perform any of the terms, covenants or provisions of this Agreement, CUSTOMER shall have thirty (30) days after the giving of written notice of such default by PRODUCER to correct such default.  If such default is not corrected within the said thirty (30) day period, PRODUCER shall have the right, at its option, to cancel and terminate this Agreement.  The failure of PRODUCER to exercise such right of termination for any non-payment or otherwise shall not be deemed to be a waiver of any right PRODUCER might have, nor shall such failure preclude PRODUCER from exercising or enforcing said right upon any subsequent failure by CUSTOMER.

11.4      PRODUCER shall have the right, at its option, to cancel and terminate this  Agreement in the event that CUSTOMER shall (i) become involved in insolvency, dissolution, bankruptcy or receivership proceedings affecting the operation of its business or (ii) make an assignment of all or substantially all of its assets for the benefit of creditors, or in the event that (iii) a receiver or trustee is appointed for CUSTOMER and CUSTOMER shall, after the expiration of thirty (30) days following any of the events enumerated above, have been unable to secure a dismissal, stay or other suspension of such proceedings.

11.5     At the date of any termination of this Agreement pursuant to Paragraph 11.3 thereof for breach by CUSTOMER, or pursuant to Paragraph 11.4 hereof, as of the receipt by CUSTOMER of notice of such termination, CUSTOMER shall immediately cease using any of the Subject Product and return all Subject Property to PRODUCER; provided, however, that CUSTOMER may dispose of any APPROVED Product actually in the possession of CUSTOMER prior to the date of termination, subject to the CUSTOMER paying all amounts due with respect thereto and otherwise complying with the terms of this Agreement.

11.6  No termination of this Agreement shall constitute a termination or a waiver of any rights of either Party against the other Party accruing at or prior to the time of such termination.  The obligations of Section 6 shall survive termination of this Agreement.

 12.  ASSIGNABILITY

This Agreement and the rights granted hereunder shall not be assigned by CUSTOMER without the prior written consent of PRODUCER.  

   13.  GOVERNMENTAL COMPLIANCE

13.1 CUSTOMER shall at all times during the term of this Agreement and for so long as it shall sell APPROVED Product comply and cause its Affiliates to comply with all laws that may control the import, export, manufacture, use, sale, marketing, distribution and other commercial exploitation of APPROVED Product or any other activity undertaken pursuant to this Agreement.

14.

   ADDRESSES

14.1  Any payment, notice or other communication pursuant to this Agreement shall be sufficiently made or given on the date of mailing if sent to such Party by first class mail, postage prepaid, addressed to it at its address below or as it shall designate by written notice given to the other Party:

             In the case of the PRODUCER to:

Greg Popp

2157 Lincoln Street

Salt Lake City, Utah 84106

In the case of the CUSTOMER to:

ForeverGreen International

Ron Williams – President

972 North 1430 West

Orem, Utah  84057

With a copy to:

ForeverGreen International

Attn:  General Counsel

972 North 1430 West

Orem, Utah  84057

15.

ADDITIONAL PROVISIONS

15.1 Indemnity and Insurance.  Each Party shall notify the other of any claim, lawsuit or other proceeding related to the Subject Product or APPROVED Product.  CUSTOMER agrees that it will defend, indemnify and hold harmless PRODUCER, its researchers, employees, officers, trustees, directors, and each of them (the “PRODUCER Indemnified Parties”), from and against any and all claims, causes of action, lawsuits or other proceedings filed or otherwise instituted against any of the PRODUCER Indemnified Parties related directly or indirectly to or arising out of any action taken or omission by the CUSTOMER.  PRODUCER agrees that it will defend, indemnify and hold harmless CUSTOMER, its employees, officers, trustees, directors and agents and each of them (the “CUSTOMER Indemnified Parties”) from and against any and all claims, causes of action, lawsuits or other proceedings filed or otherwise instituted against any of the CUSTOMER Indemnified Parties related directly or indirectly to or arising out of any action taken or omission by the PRODUCER.  Each Party shall assume responsibility for all costs and expenses related to such claims and lawsuits for which it is obligated to indemnify the other Party, including but not limited to all reasonable attorneys’ fees and costs of litigation or other defense.  The Parties shall each have product liability and other general insurance coverage for their respective business activities related to the Subject Product or APPROVED Product in commercially reasonable amounts.

15.2  The parties agree to binding arbitration pursuant to the provisions of the AmericanArbitration Association, provided however, that this arbitration provision shall not preclude either Party from seeking injunctive relief from any court having jurisdiction with respect to any disputes or claims relating to or arising out of the misuse or misappropriation of either Party’s trade secrets or confidential and proprietary information.  The arbitrator shall award costs and fees, including reasonable attorneys’ fees, to the prevailing party, or he/she shall be free to apportion costs and fees as he/she deems reasonable under the circumstances.  This Agreement and the terms hereof shall be governed by the laws of the state of Utah.

15.3    Disclaimers.  Neither PRODUCER nor any of their researchers, officers, employees, directors, or agents assume any responsibility for the manufacture, product  specifications, sale or use of the APPROVED Product which are manufactured by or for  CUSTOMER or sold by CUSTOMER.

15.4     Independent Contractors.  The Parties herby acknowledge and agree that each is an independent contractor and that neither Party shall be considered to be the agent, representative, master or servant of the other Party for any purpose whatsoever, and that neither Party has any authority to enter into a contract, to assume any obligation or to give warranties or representations on behalf of the other Party.  Nothing in this relationship shall be construed to create a relationship of joint venture partnership, fiduciary, or other similar relationship between the Parties.

15.5     DISCLAIMER OF WARRANTY. PRODUCER MAKES NO WARRANTIES OR REPRESENTATIONS, EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF FITNESS OR MERCHANTABILITY, REGARDING OR WITH RESPECT TO THE SUBJECT PRODUCT AND PRODUCER MAKES NO WARRANTIES OR REPRESENTATIONS, EXPRESSED OR IMPLIED, OF THE PATENTABILITY OF THE SUBJECT PRODUCT OR OF THE ENFORCEABILITY OF ANY PATENTS ISSUING THEREUPON IF ANY, OR THAT THE SUBJECT PRODUCT IS OR SHALL BE FREE FROM INFRINGEMENT OF ANY PATENT OR OTHER RIGHTS OF THIRD PARTIES.

15.6    Non-Waiver.  The Parties covenant and agree that if a Party fails or neglects for any reason to take advantage of any of the terms providing for the termination of this Agreement or if a Party, having the right to declare this Agreement terminated, shall fail  to do so, any such failure or neglect by such Party shall not be a waiver or be deemed  or be construed to be a waiver of any cause for the termination of this Agreement  subsequently arising, or as a waiver of any of the terms, covenants or conditions of this Agreement or of the performance thereof.  None of the terms, covenants and conditions of this Agreement may be waived by a Party except by its written consent.

15.7     Reformation.  All Parties hereby agree that neither Party intends to violate any public policy, statutory or common law, rule, regulation, treaty or decision of any government agency or executive body thereof of any country or community or association of countries; that if any word, sentence, paragraph or clause or combination thereof of this Agreement is found, by a court or executive body with judicial powers having jurisdiction over this Agreement or any of its Parties hereto, in a final unappealed order to be in violation of any such provision in any country or community or association of countries, such words, sentences, paragraphs or clauses or combination shall be inoperative in such country or community or association of countries, and the remainder of the Agreement shall remain binding upon the Parties hereto.

15,8     Force Majeure.  No liability hereunder shall result to a Party by reason of delay in  performance caused by force majeure that are circumstances beyond the reasonable control of the Party, including, without limitation, acts of God, fire, flood, war, civil unrest, labor unrest, or shortage of or inability to obtain material or equipment.

15.9     Entire Agreement.  The terms and conditions herein constitute the entire Agreement between the Parties and shall supersede all previous agreements, either oral or written, between the Parties hereto with respect to the subject matter hereof.  No agreement or understanding bearing on this Agreement shall be binding upon either Party hereto unless it shall be in writing and signed by the duly authorized officer or representative of each of the Parties and shall expressly refer to this Agreement.

IN WITNESS WHEREOF, the Parties hereto have executed and delivered this Agreement in multiple originals by their duly authorized officers and representatives on the respective dates shown below, but effective as of the Agreement Date.

		
	PRODUCER                                         

MARINE LIFE SCIENCES, LLC

Name:/s/ Greg Popp        `

Title:  President 

Date: 03/28/08.                              

	CUSTOMER

FOREVERGREEN  INTERNATIONAL, LLC, 

a Limited Liability Company

Name: /s/ Paul Frampton    /s/ Chris Patterson

Title:  CFO. :                            COO

Date:03/28/08

EXHIBIT A  -  Pricing Schedule and Annual Quota

EXHIBIT B  -  Current Approved Product list

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