rossi et al v darden et al flsdce-16-21199 0001.2

8/18/2019 Rossi Et Al v Darden Et Al Flsdce-16-21199 0001.2

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grant¡ng of subliccnscs shall be at the Comgany's sole and exclusive discretionandthe Company shall have the sole and exclusiieporyer to determine the idcntityrf6ysublicensee, the applicablelicense fees or royatty rates, ifany, and othcr tcrms andconditionsof the sublicense.

l.lThis Agreementshall commçnce as of the date hcreofand, unless earl¡er termiÍatedin accoldance withthe terms rvillremain in effect for the period of theereof,License. in Section

shall for the termas for the Li ona basis untilthe expirationof the last ValidClaim to expire of the Licensed Patent coveringsuch couitry;andas for all other E-Cat Ip, the duration rvillbe unlirnited.

ThisLicense is validfor the foilorvingte*itories(the ,,Tenitory,,):- Y:ÍtAmedcâ, Cenkai Arneiicaand Carìbbean, SoutliAmerica- Lnlna- Russia- SaudiArabia _.-.

- ArabianEmirates

(a)

l'2 on thE telms set forthhetein, Leonardo rvíllmanufacture and sell and deliver to theconrpany a tMWE-CAT unit,or at the.eràction orttt ðom puoy, u,Tlotcat,, unit,each as described._in Exhibitc (such unit as itlecte¿ uy üiã'cotnpany is hereafterrefered to as the.,planf).

under the Licensed patents in any country

is not at that time in breach of thisroyalty-freee, usç, haveimponcdall

2, Territory

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3. Price aqd pûymetrts

3'l 'f'he lotalprice fbLthe grant of the License.and the purchase of the plant is oneundred MillionFive Hundred Thous¿rnd Dollar.s ($ f 00,500,000).3,2 The payment ter.ms rvilJbe as fo/los,s:__

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Case 1:16-cv-21199-CMA Document 1-2 Entered on FLSD Docket 04/05/2016 of 25



Cornpany(b) Provided thar such date is a't least 120 Business Days follorving the date of this

Agteement (unless othenvise agreed by the ComPanY), rvithin five Business DaYs

follorving (a) notifìcation to the Colnpâny that the Plant is complete and ready forValidation, and (b) satisfaction of the Conditions Precedent , the Company willdeliver Ten Million Dollars ($10,000, 000) to TD Bank, at its ofüce in Míarni Beach,

Florida, USA (or anottrr bank agreed upon by Leonardo and the Company), to be

held in escrotY pursuant to an escrolY agreement acceptable to Leonardo and the

Company. Suçh escrorv agerrt (the 'Escrow Agent ) shall pay thc escrorved

$ 10,000,000 to Leonardo inrmediate ly after (i) Validation is achieved as provided inSection 4 hereof, and (ii) the E'Cat IP has been validated and is available forimmediate delivery to the Company in accordance rvith tlre procedures set forth inSchedule 3.2(b) athched hereto. The escrow agr€ement rvill include appropriateprovisions authorizing such payment in compliance with the preceding sentence-

On the date Escrorv to Leonardo, the License rvill

IP, Ifv not S€t Seotion 4 or theIP is not validated in ãccordance with the procedure set forth on Schedule 3.2(b),the Company may instruct the Escrorv'Aþent to rêturn the $10,000,000 to theCompany and rnay teminate this Agreernent and be released from any liabilityheteunder.

(c) five of the PIañt rvhich n;

the Perforurance has beenpay to

prov any Person aproduct that infringes the E-Cat tP, or (ii) any product of the Cornpany that utilizesthe E-Cat lP lnfringes. the patent or other intellectual properry rights of any third-party, at the election OT the Company, the Company n ill pay to Leonardo, in lieu ofthe foregoing $89,000,000 payment, rvitlún five busincss days follorving 350 {aysof operation of the Plant cluring rvhich the Guaranteed Perfonnance has beenachieved as required by Section 5 belorv, Forty-four Million Five HundledThot¡sanct Dollars ($44,500,000) and Leonardo rvill be entitled to receive a tìvepercent (5%) Loyalty on net saies by the Company of E-Cat Products or ellergyproduced by E-Cat Prcducls, payable annually on each January 3l with respect tothe previous [2 monthsended Decernber 31, until aggregate compensation paid toLeonaLdo pulsuanl to this Agreement equals $l billion. fuiy royalty paymentsrnade in accordance u,ith the foregoing sentence rvill be accornpanied by supportingfinancial inforrnation generated by the Company in the ordinary course of itsbusiness.

(d) AII payrnents due hereturder shall be rnacle in imrnediately available fi.lnds in

accordance rvith rvile transtèr'instnrctions to bd provided by the party entitled toreceive payrnent,

4. Validation of the Plant

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defined in Schedule 3 rvill

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Retentionby Leonardo of the $1,50payment of the $10,000,000describsuccessfi¡lValídationof the plant,

er, To make this measurement the ERV rvillfluidbefore and after the E-CAT reacagteement behveen Leonædo and the Cbear the ERV's costs fìfty-fifty,ALeonardo may have representalivesdiscuss the testing and its results rvlth

5. Guaranteed Performance.

Payment of the amounf set forth in Section 3(c) above is contingent upon the Plantoperating at the same level(or at l,hichValidationrvas achievedfor a

etter)

of 350 even ifnot consecutíve rvithina 400 dayaysdate on

of use rcasonablybeffefTõFto cause Guaranteed performance to be achieved, including rnakingrepairs, adjustrnenfs and alterations to the plant as needed to achieve GualanteedPerformance. The ERV (or another party acc eptable to the Cornpany aad Leonaldowìllbe engaged to confirmin rvritinglhe Guaranteed Perfot¡nance. GuaranteedPerformance lvillnot be deemed achieved tlnless such çvrittenconfirmationisieceived or rvaived by the Company, .ln ilre er¡pnl lì -.^n+^^l D-.-f-.-----,v¡¡1 vsularrluçu I çtturfl¡4nqg ls nolachieved rvithintlre tÍme period set forth in this Section (as such tirne periodmay beextended by the Cornpanyin its sole discretion),but the ERV confirmsthat duringsuch time period the plant consisteirtlypr.oduced energy that is at least fonl.tirnesgreater than the energy consumed by the plantand that the ternperatuleof ihe steamproduced by the piant rvas consistently100 degrees Celsius or greater., then theamount payable by the Conrpanypursuanl to Section 3 (c) aåove shall be reduced inroport¡oü to the redtuctionin the N,lultiple,and the total purchase price setnelg¡,

lbrth in Section i,l shallbe retlt¡ced accordingly.ll neirher the t'oregoirrgstandarcl norGLraranteed Perfonnance is achieved, the Corupany shall not be requíre<lto pay iìlr¡ranlount pursuant to Sectìon 3(c) above and the total purchase price set fbrthin

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Section 3, I shall be rEducecl

6. Couditio¡lsPrecedent

accordingly

(a) Receipt of evidence that art E-Cat Ip is orvrredby Leonardoandy'or Rossi-

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(b) Receipt of eviclence of thc cor:porate authority of Leonardo to enter iuto thisAgreenrent and pertbrm its obligations lreleurrcler.

(c) Confirmation that the representations and rvarranties of Leonarclo ancl Rossiset fbltli helein ale tlue a¡td correct.

(d) All representations ancl warranties of Leonardo and Rossi shall be tnre andco¡rect as if made orr and as of the clate of payment of the $[0,000,000 arrcl

Leoltardo alrd Rossi shall have delivelecl to the Company rvritten ceftificationthat the t'eplescntations and rvaLranties of Leonardo aud Rossi set tbrth hereinar e true and con'ect as of the date payrnent is ntade.

Leorlardo and Rossi a$'ee to plovide'tlre Company rvith such int'orrnation anddocumentation as it nìay r€asouably reqLrest to satisff ttre Conditions Prececlent, I¡the evellt the Conclitions Prccedert are not satisfied on or prior to the date that is 60Bt¡siness Days follorving the clate of this Agreernent, the Cornparry rvill be entitled tostlspettcl its otrlìgations lteleunder tultil such Conclitions Precede¡rt are satisficcl orrvaived by the Cotupany or to telminate this Agreeurent and be leleased from auyliability hereutrder; provided, horvever', that if the Condition Precedent set t'orth inSection 6(e) above is not satisfied rvithin such 60 Business Day periocl, the Cornparryn'ill either rvalve the conditiorr and proceed as otherrvisc

set folth herein ol ternllnatethis Agleenrent.

7. P¡rteut Pl'osecutiou anrl IVlailrtetauce

7.1 For eaclt patertt applicatiorr ancl patent uncle r thc Licensecl Patents, Leona¡do shall:

(a) prepare, fìle ancl prosecute such paterrt applicatíon;(b) maintain such patcnt;(c) pay ail fèes atrcl exoenses associatcd rvith its acti.¡itles pursuet t to Secticlts 7.1(a)

and (b) above;(cl) keep the Cottt¡lttrt¡' currentl¡' int'ornrecl of ttre friing ancl progress ín all nraterial

as¡lects of the plosectttiort of suclr ¡latent ap¡tlication, nncl the issuance of ¡ratentstì'onr any suclì

l)atcrìtnpplicatiorr;

(e) cormrrlt lvith the ('ontpaul'concerrring arry clccisìons rvhich corrlrl ailect tlrt: 5c1;¡1,-ot'cttlirrcclllcllt of'attt'i.s.stterl clai¡rs o¡-the potcntial a[lnrrtkrnrlcnt of'sru:h ¡tafcitta¡l¡llicirtirtn ()t' I)a(crìL: ail(l

(l) rrtrtif-r'tltt.'('orrt¡ritrtt' irt rrr'itirr¡r ol irrry ¡rrkliiious- tlclctior¡s or cirlllsr:s ¡¡ ttì('sliìlträr-r l- srrcfl patcnt ctr ¡rir tctr( llrpl icirLiorr.

'Iltc ('rlttt¡rart1'. al it.s clcc:tirrtt ancl at its ùxl)c¡tsc, Lnal,¡.tar'(ici¡latr' irr patcnt ¡rrlscuutiorratlr.l ¡tlaitltcttirtlcc as set lbrth ntlovc to tllc cxtc¡rt it deenls ,l..:.rsary or ctcsiiabtc.

7'2 ll Lcott¿lt'rltl tvisltcs to abattclon ¿ìny [)atcnt a¡l¡llication or ¡ratent tlrat is a I.ice¡seclPalcrr(. it shalI givc ttic ('oLnpartl'nirrc$,(90) clu1,s rr,'¡t,,, rvr.iil.crr noticc r¡l'tþü cle.sire(lilLlalltloLtttletit, Leorlat'tkl shall rrot abanrlon trrry srrclr [.iccnscrl f]aLcnl. except rr¡ron t¡e¡;r'ior rvri[{err co0scnt ol'thu Cuurpitrry,. Orl tllc Conrpirrrl,.s t.c(ìrrcsl, rvhic.lr rrra¡, tlepr.ovirlc<l ¿lt Arì\'tilllc ¿tftcr thc ttotice clf'clcsilerl at¡anclorntqtt, f.eonar<kl shall assir,,rrto tltc Cottt¡lan)'¿ì¡lv sttclt ¡tatertt a¡tlrliuation aucl ¡latent [.eorralclo rvis[es to aba¡clo¡.

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A

Effectiveas of the effectivedate of such assignment such patent applicationandatent shall no longer be a Licensed patent,

8. Third-Partyllfringe¡nenf,

8'1 A Party receiving¡otice of ,lleged infringsmentof any Liccnsedpatent in thcTerrítory, or havinga declarãrory juclnenractiãí aüeging ir,r.iiåiry'",noninfringementof any Licensed gaieni,irittr"r"nìto.ybroughtagainst it, s¡allromptlyprovide rvriftennotice to fhe other Parties or tie uu"g"d infringerneüt

ordeclaratory judgmentaction,as applicable.

8,2 Leonardoshall bringsr¡itor defendconduct thereof, includingsettlemenprovíded,holever, that Lionardoshnotifìcationfrom the Company advisingthat it believesadvisablq and (ii)onlyas and ro tie exrent deindependentpatent attorney selected by Leonardo. L

uitor acn indispe Leonardo shall (a) holdharmless nc ,iprnr**;tá;"¡ìì

cime ¿nd -åä'#fi-.',i.'"å, tl#îT*0,"r3:iffiit,fiJ:ir testimonyof the Cornpany,s rnembe, ,. ÃLug"rr,officers,andilrconnection

parricipate i; ";;,uoluntarilyinitiafeor

ãn¿ ai its "*peísee C_ompany's eleation

rights or inteiests u tnforceor protect its

9. RegulatoryClearance. Leonar,do, Rossi, and AEC,eathe-_Cornpany,.shall reasonably ioop"rut"withtheurç¿lrallcçS Of ilCgnSeS ttom pnvcmmenÉala_-*^l^^̂ - -_possess, nrake, operare. ."ii:;;;;;;ä;äffi .ï:"

lû"Reeordation of Liceuse. t-r-pon the requ€st of the company, Leonardo and Rossi

3:ïiäTi,,T:.?:,ï,ff:,liniliTi,,i.l*T:J..:ï lL_d ex pe nses s h

I 1 IVIulualRe¡rrcseutatiolsnnrl ïV¿rrranties.

Each Par$ hereby r.epr.esents ancl rvarrants to t'e olher parly that:(a) it is drrrl'organized,varidryexistingand. in g.ood stancring as a coryorationorthe' entityas represenËed herein urder t"he ro*ãii regularionsof itsrrrisclictionof incorporationor orgarrization; - -.'1

(b) ifhas, and throughoutthelermof the License shat r.etain, trre furrrigrrtpower;:,1,L'i:î"vto enter ínto this ag""'n;ni;;;';;åir"rmirs ;;iisil;;;

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c) the exectttionof this Agreementby itsrepresentativE rvhose signature is setforthat the end hereof has been dulyauthorizedbyall necessary corporatcorlimitedliabilibycornpany action of the Party; and

d) rvhen executecland delivered by such Party, this Agreement shall constitt¡tethe legal, validand bindingobligationof that Party, enforceable in accordancervithits terms.

12. Rcpreseltations and Warrantìes of Leonardo a¡rd Rossi.

Leonardoand Rossi, joíntlyand severally,each hereby reprcsents atd rvarrants to theCompanythat:

a) Leonardoand/or Rossi are the sole and exclusive legal and benefÌcialorvnersof the entire right, title,and interest in and to the E-cat lp and are the reeordowners of all patent applicationsand issued patents that are Licensed Patents,lnve good and validrecord and marketable titleto the E-cat Ip, have not

b) The patents and patent applicationsindentifiedon ExhibitA and all other E-

c) A listof all agreements in any way related to the E-cat Ip or the E-catProducts, includingany and all sales or licensing agreeülents, is set forthonExh¡bitD attached hereto. Complete copies of all stich agreenlents have beendeliveredto the Company.

e)There ueither are, rìorat any time during the temr of the License rvillbe, anyenctt¡ltbrauces, líens or security interests created or.perrnifteclby Leonarclo or.Rossi involvingany Licensed patents or the other E-óar Ip.

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(f)The e.tectttionand def iveryof this Agreenrentancl the consurnmationof thetlarrsactions conternplated hereby does not (i) result in the irnpositionof anyLienundet , cause the acceletatíon of an¡, obligationunder, or violateoi.conflictrviththe terms, conditions or provisionsof any contracts or. ot¡eragreenrents to rvhichis bound, (ii)result inLeonatdool Rossi ofOrder, or (iii)requireany tfrirdpalty by Leonaldoor Rossi, other than pursuant to the AECAgreerne nt.

(h)fte AEGAgLeente¡ltdoes not in alìy lvayrestrict or. inhibitt¡e abilityofLeonardo to graut the License as providedherein.

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(k)Leonarclo is not in víolafio¡roÊ arry Lau, or Orcler to rvhichthe E-Cat tp issulrject.

(l)Thc cost to prodttce the Plant that ìvillbe delivered to tlìe conìpany Þ¡l,su¿rntto this Agreement,assunring high scale production voluures, *ilfnoi exceed$ 100/klvand the ttraxfunum

ori to frrelthe Planr on rhe dare Îereof ir S'iO pL,.l0klVofoutput.

Qn)Allof the books and records ancl orher docu¡nerrtsto be deliveredto theCompanypursuanf to this Agreçurent rvillbe tnre, correct and cornpletein allmaterialrespects.

(n) None of Leonardo, Rossi or any other sharehokler, director;officerorcrrrployee oF Leonardo (i) is a person appearing on the speciailyDesignatJNatiorralsand BlockcdPetsons Listof tlieofficãof ForeignAsséts conîroiìthe UnitedStates Departuelttof the Tleasury,(ii)is any or¡er pe¡.so, ivith$'hotn a transaction is prohibitedby appliábláprovisionsol' the USÃPATRIoTAcr, the Trading withthe Enemy Actor ihe foreignarr t .ontroiregulations of the UnitcclStates Treasury Department, in eac6 case asarnended an to time, (iii)is corrtrolleclby auy p;r;,;described in or (ii),ruìth-orun rshipof 20%o,l,nooãi

outstandir:g ties being presumptiverya ôorrtrorporitiá,rforptllposcsof this c-lattse, and (iv)has its principalpiace of bt¡siness located-inany cotttttrydesclibecl in the foreg< ing itern(iij,Firrther.,neither Leonardo 'àrossi ltas euter€d intoany n'rittenoi.oral agreernents ritatingiu ony ri,oy'iothe E-Cat prorlucs or the E-Câr Ip u,ithnn1,-p.rronctescribeã'¡ O,ifij,'tlùjor.(iv)of the foregoingsentence.

13. Coveuntrtsan<l r\greernents.l1 t¡i, i 5Cl'vices irv [iossi lrr on,rci'io,-ri,.-.¡ vvrrJ¡t¡9t (rt¡rrt¡ sei iorthhrvillprovicle ol

â procluction t Prodr¡cts fbr a ofnot less thanoll,as extelìt re(lby Comparìy

to elìa to ulconterrr¡rlatethat tlrt:('r:rrr¡lirrryrJi ll t-'rreagr:[lrrs.sias its r:trielsclerlo a sc¡litrateay.r'cctììcnt to l¡c t:lrfcrc<lintrtlìrliorvírr,gVuli<latitr:verrI llu:sclviccs corrlcrrr¡rl¿rierlbv thc ¡lr.ccctlíngs-ctrlcrrce u,ill

rry curleutl¡,rtist ¡ltrr,suartllr. in rvhit'hl)r'rcrì(lcre(l

@l)rrrsuiilìtIrlsrrch crr¡1a¡lcrtrenl.

l-i.2 Rightol l¡it'.stOtibr.. Lcona¡.rkrantl lìossi cach frcreb¡, Íl{ll'ce.sthat, slrorrltlcithclot'thent rlesire at alt¡, tiure to licen.se the ll-C¿\TIP ot'tlie rnauulìrctr¡rcol d is(ributiunol' ll-Cat l)ro<luctsin any tcrlitolyor¡tsitlethc -l-crritot.ycover.eciby thi.s r\grcerrrent.thcl, *,illf-il'.stnoti fhc (ìor arrrl n,iIIhavc a ¡lcriorlol'tlrirt)'

t1, nttkcs srrch olf'c¡.¿u¡rl Lconaldo o¡. lìossiclocs rì0t

ot tclnls rinclcourfitionsol tlie agreenrerrt ate no less iàvola[rletcl

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13.3 Covenant Not to Compete. For as long as the Cornpany or any of itssubsidiaries is engaged in any business related to the E-Cat products andLeonardo, Rossi or any Affrliateof Leonardo orvnany of the Company'sequiryownershipinterests or Leonardo, Rossi or any Affiliateare performingseryices for the Cornpany or such transferee (rvhether as an employee,consultantor otherrviseand specifically includingthe period of servicesrequired by Section 13.i) and for an additional periodof trvo (2) years afterthe last ofLeonardo,Rossi or such Affiliateshall have ceased to provide suchservices, none

ofLeonardo,

Rossi or any of their A-ffiliatesrvill(except as anofficer,director, stockholder, employee, agent or consultant of the Companyor such subsidiaryof the Company)directlyor itrdirectlyorvn, rnanage,operate, join, or have a fìnancialinterest in, controlor participate in theos,nership, managem€ìt, operationor controlof or, be employed or engagedas an employee, agent 0r consultant, or in any other individualorrepresentative capaciry whatsoever, or use or permit theír narnes to be used incurrnection rvith,or be othenvise connected in auy manner rvîth any btsinessor enterprise (a) engaged iu the design, developrnent, rnanufacfure,distíbulÍon,tease, rgntal of sale of any E-Cat Pt'oducts, or the provisionofanyservices related ther.eto or (b) whichis competitiverviththe E-Cat Products,unless Leonardo or such Affìliateshall have obtained the priorrvrittenconsentofthe Conrpany or such subsidiaryofthe Company, as the case may be. ln theevent of termjnationof this Agreement due to a b¡each by the Company, theCornpany and all its af'fìliares folhvoafter the rvillnot to tt'orkf-or licensí or sale

E-Cat Prodr¡cts.cotn

Leonardoor Rossi than the terms proposed by the company. I¡ the eventeither of Leonardo or Rossi desireJ to enter intoan ugrrËur*tthat does notrT]rfy.the requirements set forth in the foregoing ,"ñt"n.",they must firstoffer the sarne anõ the Cornpanyrvilíhave thirtydays o accept rejects it,Leänardo or Rossi mayenter intothat party ai any rime duringrhe foltorvinisixty(60) days, and, if they failto do so, théy must agaL provide the

before entering intoa licensingensing agreement

entered into byor the nanufaclureor distributionsion prohibitingthe rnanufacture,salee use of the E-Cat Ip, in the Territory.

:---'llectualproperty Rigtrfs.Leoaarcloafter the dare hereo(, auy and allinfrrmationand anylhingelse that

Les makes or develops whichrelate tothe business or aetivlt, includingwithout nY Is

ênts,additions,deviations, rvellsed on the E-Cnt lp and any ltem or productembo<1yi'gthe E.c¿t tp.and ail appricatio's.name.s,'titles, .rruoo,"r.,symbols,designs, copyrights,pafents, trademarks, artwork,and elements

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13.5

embodied in, derived from or relatç

neqessa¡y documentation and r€truns

lltllsuant tr this Agreenrent, Each pahannless eaclr other party rvith respectby leason ofan¡, payrrrent nrade by an ir

14. Indenrnilica tio¡t,

15,1 Leonardo and Rossi shall indem

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or Rossi undehold harmlessofficers,direc(each a .,Leonfrornany thirdor resultingfiomany breaeh bycovenant or obligatÍonof tlæ Co

15.2 [Intentionallyornitted]

15.3 The Leonardo Indemnitee,as the case may be,shall ach party responsible for indemnificat¡án-Janyinãernnif,ingparryar iäJ'r':: ;iliarty responsiblefordefense aid investig^ ontrolof the

acceptable to the CornpanyIndecase may be, to handle the defensrthe indemnifyingparty or partiesclaim in a manner rhat adverselyrvithoutthe inde¡nnifiedparty,s

unreasonabl¡'withheld.ordelayed. The failureof the CompanyIndemniteeorthe Leonardo Indemnitee, as the case .may be, to per.foi,, ár,y oiigìiù ,nde' rhis section r5.3 shafl not rerievé ony ini *nifyine'paftyïl;;obligationunder this Section 15,3, excepf to the exte¡t that the indernnifrinpparry can demonsrrare thar it has been rnateriartypre;uoicJ;;;ili;';ïilãfaih¡re.The CompanyIndernniteeol the Leonai¿o tn¿emnitee, as rh ;;;;may be, may participatein and observe any proceedings that ur. t-¡,. .uù:.o ãitlrisparagraph at such Party's orun co i ànd experise rvithcounsel of itschoosing,

16. Miscellaneous.

l6'l Certain Definitions'As ttsed in this Agreement,the follorvingterms have thefollorvingmeanings r¡nless the context oìn.rrul. ,.quir.r,

Actionor proceecring means an1, action, suit, proceedingor arrritrationb1,any Person, or any invesrigationoi aucJit by anyðou ,rrnlrntaror Reg.ratoryBody.

AEG Agreenlent has the meaning set tbrlh irr the recirals fo this Agr.eenrent,

Affilê-te tneans ivithre.spcct to any Person, any other person controlling,controlledby ol' under conlnroncoutrolrvitirsush firstperson, alrd rvitlirespect to ¿ìny natural Person, inclirclesstrch Person's spouse and other.¡.elatives by bloodor nrar.riage.

4,Éf,eeluenJ',rneans th is License A greement,

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Busitress Da-y tneans any day other thalr a c[a1, q¡ rvhichcommercialbanksiu Ne*'Yo'k, Ne*'york are arrthorizecror'equíied by rarv to close.

corìrpany has tllerneanì'g set forthin the lecitals to this Agreement.

conclitionsP.ecedent has the r.ea'ing set fo'th i. Sectio.6 of thisAgreement-

E-cat has thc mea'ing set forthin the recitals to this r\greernent.

E-Cat Proclttcts has the nteauing set folthirr the recitals to this Agreer¡ent.

ou4 tribunal,arbitratororether tècleral, state, couuty,or instr.urnentalityof any

-'Q|tleJ 'llÌealìsall,r'rvrit..juclgrrrerrt.rlc-crcc. injrrnctíonor.sinlilar.or,clcroi-anyCoveltttt¡en(alor'[{e¡¡,ulator1,lJorl.\,,in cncI caie ¡,llether.pr.elirrri'ri¡,.r.tìnal. l)cl'soll lììt¿lrìsarr,v iIclivirlttal.cor'¡xrratitlrr,¡rirr.Irrershi¡1.lìr.rrr.

.ioirrl'c.(rrre,ssociat io n, .it'rirrt-stock corìì r)a rìyj t rust, u n incor.¡xrrated ''9r:gau izat iorr,Cir'¡r,r't'nrrrcntalo¡. l(cq¡la¡or1,Iì¡<11,<l¡othe¡ elltit),. ' i

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Plaut has the meaning set fortflin sectio' r.2 of trrisAgreenrent.

s all ta.res or. other assesstnents iurposecl by anying author.íty, includinginconre, *.i.r,p.oí ny,franchise taxes other thán E_Caf Taxes.

''ValiclClaLn,. nreans, on a countissued or. g.anted Licenseclpatentby Leonaldoor othe¡-_víse cai¡sereissue, clisclainrer.or other.rvise, oror goventt)lentaIagcncy of conrpappcal is allorvedor tirnelytaken.

Valiclation has the rneaning set f-orthin Section 4 of this r\greenrerrt.

v/atts , kw i Mü , GW : it is inrencrecr that in thisAg.eetue'twatts arelrvays Ther,nral Watts, not ElectricWatts.

16'2 othertvise expressll, providedherein, rvhether or .ot theatcd b¡, this Agreerneutshall be consulnmated,each oftl pay its o\vn,expenses (ilrclucling,withoutli; i;;ii ;,Agree'r e, r an d the,, J:i:ì;Jïiliìffi;:,1]1î,,: r;xpJnses) i ncicrenr t t¡ ì'

16.3 Nofices.Allnoticcs, r.equests, clernpclmittedto be given hereinderpcr.sona[[y, sent by facsinriletransr

l, postahen r.ece casei'e¿riier, Fecleral Express or other

three (3) BtrsinessDaysred cr certiñed tìrst clarr cach such case to the

otlrcrof allt:lll¡ri I

r\r1ttlcrrrcrrl. r tltis

l(i.4 l,rrblir:ii¡.;(_Ìr¡rtirlcrriialiÍt..No ¡rtrconcel.uilgIhis z\gr.cenrerrt ol. tlte t¡.rrrratlcb¡, l_con¿r.rlo. Iìossi, ¿\ljGor

(;

frCSi;i rl¡^,rì,1{:'ì




undet') or'(ii)the disclosure is to au1, officer,director,erttployeeor agent ofany party hereto or of any of ¡ts Aftiliatesand sr¡ch Person neecls to knorv suchirrfonnationfolpurposes of consutnmatingthe transactiotts contetì1platedbyor the performance of this Agteetnettt. ln the case of press contbrences orpress releases, Leonardo shall have the right to select or rejeot certainjoutlalists,rvho rvillbc a part thercof or rvho rvillreceive sttch t'eteoses,

Duringthe term of this Agleement,each of Leonarcto, Rossi,and AEGagreesto keep the E-Cat iP stictlyconfidentialand not discloscany of the E-Cat LP

to any other party;provicled,ho\t'eyer', tltat LEottal'doand/or Rossi rnaydisclose the E-Cat IP (i) to its enrployees as uecessary iu counectiou rvíththebusiness of Leonardoand/or Rossi, ¡lrovidedthat sucb business does notviolate ttreprovisionsof this Agleenrentand ñrrtherprovidedthat suchernployees enter into a confidentialir¡,agleement requiringthetn to keep the E-Cat lP strictlyconfidential,and (iì)in connectiortrvithany license agleerììententered intoin accordance rviththe procedure set fbrthirrSection 13.2 hereof;providedthat such disclostu'e is made only tothe extent necessaty to pernritsuch licensee to utilizethe license glanted and suclr licensee enterc into aconfidcntialiryagreernent requiringit to keep sl¡ch E-CatIP stlictlyconfidential.r\nyconfidentialityagreement entered iutorvithan employee orlicensee as contemplated in the pleceding sentence shall include a plovision

statir)g tha¡ the Courpanyis a thirdparty benetìcialyof such contìdcntialityag'eernent aud may enforcethe telurs thel'eof. Each of Leonardo, Rossi, ancl¡\EG acknorvledges that unauthorized useor disclosure of the E-Cat IP rnayresult irt irrcparableclamage to the Courpany. Accoldingly,the Parfies agleethat injnnctiver-cliefshall be an applopriatelemedy in the event oFarrl'breachor tlu'eatcnecl brcachof this palag'aph, iu aclditionto moDeydamages or suchofhel rerneclies as rnay [¡e available rr,ithLespect to suclt breach or threatenedbreach.

lr < ¡)^.. 1.,,..--r^-, ,rll-.:^l-¿^^---l l:-----^^----------¿-J-.-r--- ¿l-Ì- .{-----.-----1rv,J u.¡ll(\t ulr(L,y. l.ru llË,1¡r5(1ut¡ ilr-çlt5çSgItulLçq UttttClUllS¡1Ëf ççtf tç¡lt,¿ltç illtushali be deemecl to l¡e etulrodiurent(s) ol intellectLral¡:roperty [or purposesof, and as sr¡ch terrrs are usecl in ancl irrter¡rreteduucter, Section 365(rr) otthcUuiteclStates Bnnkl'LrptcyCode (the ''BanknrptcyCocle ).The Cornparryshall

Itave ttre riglrtlo exercise all lightsaurl electious rvithrespect to the E-Cat f Paltrlall E,-('at Prorlrrcts.\Vitltotrt lirnitingtlre r',ene ralityolfhefìrrcqoing,caclroll.r.-oliarrloa¡lcl liossiar:knt¡rvlerlrtesanrl ¿ulrees that. il-l.eollarcloor. lto.ssi (<tr.Rossi'.s ç.s[aLc)sh¡tlllleconrc strlliectL()¡urybarrklu¡r(ur,tlrsinrilurplocct..rlirrlr:(ir).stttr.jcct to tltc(.rrtrtpan-\ .sri.glrtsof't:lcctiorr,all liglrtsitnrllir:trlr^si:s¡p'irrrit:clttl tltcCottt¡r¿.u1.\'ltct'ctrtrlurrvilleorrl.inursLrlr.icctto thc tcl'l¡sanrl co¡lrliIionsol'tlti.sr\grccrttctt[,¿tttcln'illrrot t>e allèctetl.evcrr l-ryLeonaltlo'sor [{ossi'st'ciectiottol' (ltisAgr'eenreut. ancl (b) the C'our¡ran¡,shall bc cntitlcr[t<¡ acctrtt¡rletecltrp[ìcateol (or corrrplcteaçcess fo, as ap¡lropriatc)all strchilttelleuttr¡rl¡rt'cl¡rct'[-Y¿utrl crrrbcltlinrelrtsol intetlcctual¡;r'o¡rcrtvcour¡tlisinplrlrrelatingLo alìyE-Cat IPor ll-C'atPloclucts. an<l tlre saurc-, ifnot alrcadl, itrt[e('cint¡latty's1.rr:ssessiott. sh¿tll hc ¡>r'tlrrr¡ttl¡,rlclivclctltrt Ihe ('ornltan¡,,rrnk:ssLconartloelects to allrlrlocs in lirctcclltilltri:to pcllbntrall o['itsobliga(ionsuntlcrtirisr\gr-cernont.

Ul:i

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16'6 AEG.By joiningínto this Agt'eernent as â Part),, AEGackuorvleclgest¡eternrs of this Agreetnent,agrees that this Agreeinentcloes not violãte theplovisionsof^theAIGAgleernent,agrees tliat the riglrtsgrantecl to AECunde¡'tlte AEGAgleernentdo not and iviilnot infì.ingcipon or: interfererviththe License, a$'ees to indenrnifiand holcr har¡nress thc cornpany fr.o,n anãagaûtst any ciairuor clisputearising betleen AEGand Leonaido or Rossi incorutectioLeonardoA-EGanelParties heto the AEb)'the Cobetrveen AEGand the Cornpan¡,.The aruounts palrnþls to Leonardohereu¡ldcrleflectthe fact tltatLeonardorvillnot nrake any in1.n"nt,to AEGuncler. thcAECAgleernent, AEC ftrrtheracknorvleclg.iittotrpon execr¡tionof t¡isAgreernentand..coruplianceby the Courparf,,ri,iththà pr.ovisiousset f.orthhe|ein' AEG willltave no lìrrtherrights trndeí the AEc Ägr.eerneltto urarketol sell ttre E-Cat Ip or the licenseplovided,lìou'ever',that in the evenCompany for any reasou ol. b), Lcofailu¡'eto cornplyrviththe pr.ovisionsrvill

be cleeulecl r.einstatecl iu fullancleffect in accordance rvithits tenns, except that no alnount shall be payableu'dcr the AEGAg.ecr'entby Leonaidot.ìth rrrp.ct to this Agreement.

116,7 t. ìpany,s right to sublicense as providedinne Iìossi,nor the Corn¡ran1,,shall assign or.an or. clclegate o¡. othe¡.u,ise ti.ansfel.n,ry of it,or this Agreenrent,in each case rvhetl¡erin tionof lñ or other.rvise, rvithoutthe other'r^*1, 't.. -.-l -P(trLvù Prrur \\'rlttellconsellt. No ctefegation ol'otlrcrtta¡sfer rvillrelieveLeotrarc{oor Iìossi or the Conrpany ot'arrj'otthvirobligatiou,ua pertbrntaucetlnclerthís Agrecntettt.r\n¡, pur¡ioltcclassigument. ae"f*jaiinnor traruËr i't'iolationof this Scction16.7 is voicl.ThiiRgreenrenris hindi¡gupo.r a'clnttt¡1s to lltebc¡tcfltol' tltc I'artiesancl {heil'r'e"pectir,"peLnrittc<lsusccssorsanfl itsstllns.

16.8 lir¡tircr\qr.ccrrrcrrf. Thisu\rlr.ccrrrc;lt(irrclrr<lirrgthe ljxhitlitsallrlSr:hr.,tlrrlt:slrc|eto)alltl{ht:tlllltll'¿t l¡'ct:rnclrts.cclfilicalc:sarrclrkrcurìu:rls.s¡rccilic*ll¡,ittcotpot'aletl ltc¡'cirt[r.t' rcli:r'cilccthcl'r:to,rrr clelit,c:r.ctl¡tttr.srrurrtt() thisu-\grcctttetttcotltainIhe eltl.i¡'eagrcc¡ììcnl.arììorìutltcpartics rvithr.cspcct to tlrettattsactit¡¡lstlescríbecl ltc¡'cirt.attrl srr¡relsectcatt ¡llior,trgr.certrerrts.ryritIcrr,r.tlral,ri,it/tt.e-spect there to.

|l6.9 \\/aivcr'.s¡rnrl ¿\tr¡c¡rtll¡rcrrt.s,Tltisc¿rncclcrl. l,elr*rvutllrr cx(erlrlurl.¿rncl trvtittcuiustr.Lrrlrcrrisignecl bt, tlre

P¿ut.v u,aivir¡gcorrr¡lliirrrcc.No rlclligh1.,porvclrlr ¡llivileg,eher.eunrler

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f6.r0

t6.11

t6.12

1 6.13

r 6,l4

r6.15

GoverningLarvand DisputeRccolaüon ütÅ¡Agraem€nt shall be construedand enforced underthe larv ithoutregard to theconflictsof larvprinciples to or result in theapplicationof the substantive larvs of anotherjurisdictìon.Anyconhoversyorclaimarisirtg outof or relating to thisAgxeement, or the breach thereof, shallbe settled exclusivelyby thc Court of Miarni,Florida, USA,

Force Majeure.NeitherParty shallbe liable forany delay in the performanceof its obligationshereunder to the extçnt such delay is due to events beyond itsreasonable control including\ryithoutlimitation,acts of God, fire,floodorother naturalcatastrophe, acts of any governrnentin its soveteigncapacþ(includingbut notlimitedto any rule, larv, order, regulationor directionthereof, or of any deparünent, agencyor comrnisslonthereof),nationalemergencieq insurrections,riots,rvar or hostile activities,quarantinerestrictions,embargoes, launch failures, strikes, lockouts,rvorkstoppages orothel labordifficultiesand sun eclipse or solar outages; provided.that noticethereof is given to the other Partyrvithinthitty(30) days of the later to occurofsuch event and the date that the Party being affectedby such eventobtainsach¡al knorvledgeofsttchevent.

FurtlrerAssr¡rances.Each Party shalldo and execut€,or arrango for thedoingand executingof, each necessaty act, documentand thingto implementthis Agreernent.

Variationsin Pl'onourrs.Allpronouns and any variations thereofrefer to thernasculìngfeminine orneuter, singular or plural,as the contextmay require.

Headings, References. The headings in this Agreementare for referenceonly, and shall not affect the interpretationof this Agreement,AIIreferencesherein to Sections, subsections, clauses,Exhibits, andSchedules shall bedeemed rcferences to such parts of this Agreement, unlessthe contextshallotherrvise require.

Exhibitsand Scl¡edules. The follorving Exhibitsand Schedules are attachedto this Agleementand ilcorporatedherein:

Exhibit¡\ExhibirBExhibitC

ØeExlribitDSchedule 3.2(b)

Descriptionof E'Cat IP, includingLicensedPatentsA-EGAgreenrentDescriptionof the the I lvfwE-CAT Unitand the HotCat UnitListof agreetnents related to E-Cat lP or E-Cat ProductsProcedures for validationof E-Cat IP

oROSSI

t't

000456




IN\ryTINESSWHEREORthe Parties frergtointending to be legallybound hcreby,have duly executed this LicenscAgreement on the date firsta rñe rwitten.

II\DUSTRIALHEAT,LLC

By;

ROSSI

LEONARDOCORPORATION

By:Name:

Title: ettAÑ

Title:

I I I East Hargett Street, Ste 300Raleigh, NC 27601Email:

Address for Notíces:AndreaRossiI33lLincolnRD., ApT601IVIiamiBeach FL 33 t39Email:[email protected]

l\ Ð

o

AndrçaRossiAddrcss for Notices:

ß wrn¿r+ Èosyl33lLincolnRD., ApT601

MiamiBeachFL33t39Ernail:eon333@l ibero, it

AEG:

AmpEnergo,Inc.

By:Nalrre: l{a.aTitle:ø.eanL¿z-Address for Noticês:4l l0Sunset BoulevardSteubenville, Ohio43952Emai l: [email protected]

RCSSI

l8

000457




See aftached.

EXHTBIT A

Description of E-Cat IP including Licensed patents

-l{:

¡/

l9




The lP ¡s constitutedby a volume in whíchare explatnedall the constructlvedrawíngs,wfththelmensions and the characteristlcs of the materials, along with the lnstructionsnecessary to:

EXHIBITA

DescripÙonof the tp:

1- Manufacture tJre E{ats2- Operate the E{ats3- Manufacture the controlsystems4- Operate the controlsystems

The rpwltatsocontain s patenrs: (+h"t LZ_cdp"hnkIk7- ltalianpâtent granted forprocessand apparatus2- USApatent pendlng

for process.nC"ppar.tu,3- Europe patent pending for process ani apparatus - usA patent pending for particularsan¿ tiiory5- USApatent pending for controlsystems6- usA patent pendrng for additives and cataryeers rn process and apparatus7- USApatent pending forHotCat8-9-

lJsApätent pending for drrect conversionof photons ¡nto erectrlc energyUSA patent pending for partlculars of the reacËor

oROSSI 000459




Specificatíonof E-Cat ltUIwltnît

20t1

o

Power

4 Bar

120 c

Ê0.s/tvtwhr-h---iìi.:_-

5

)

',?'

¡rJ(

cROSSI

6ofô

000460




See attached.

E IHTBIT D

l,ist of Agleements Relatecl to E- Cat lp or E-Cat proclucfs

22




Ð HtEtTD

IISTOF THEEXCLUSIVECOMMERCIATTICENSEES

1. AMPENERGO-AMERI2- HYDROFUS,ON tONDoNÌ:NORTHEURopE3- EcOGtOBAtFUEtS StDNEy): AUSTRA.AS.A,AFRtcA,,NDtA4- |_UBERONENERGTESAMSTERoAM):FRANCE,BENELUX5- IEoNARDOSLOVENTA LUBIANA):stoVENtA6- PRoMETEONBOIOGNA):ITALyANDAUSTRTA7- ECATDEUTSCHT¡NDBERUN) : GERMANY8- ECATSW|SSE ZUR|CH):SWSSE ANDLIECHTENSTE|Ne- CASTIGAN t.AVArlFrTA);MALTA

10- STREMMENOS ATHENS):GREECEANDBALKAN511- MAIMAR|ScypRUSf: cypRUS

ü

oROSSi 0a0462




of the Plant, Leona¡do and Rossi rvilldeliver ro

them

rçceived and revierved any of the Technicafillfirrtheragree io hold s¡ich rnaterials intheir.possession (i) to the CompanyrolvAgenr rbat the $10,000,000 has been

emplated by Section 3.2(b),or (ii)torifuthat the Technicalfnfonuatìou

ove rvithinthirffdays follow,ingValidation,

Leorrardoand Rossishall clelíve'lhe caÍalyz,erFornlufa tothe company ir'nrecliately-ollorvingdeliveryol'the $10,000,000 toi;;nar.cloby the EscrorvAgentand shalloncurrenllyatlvise, insf r.tictancl clernonstrate to thnecessary tç cresre the catalyzerFornrula and to u ncl plocedures

iyi;Í.i;:î,-r,,1.;¿l,l;ffiä.,;'*ìii'*X*0,",fii,iiT"i*

The E.gi'eer's rv.itteuverification,all rechnical Ilrfornatiou,the catalyzerFornrula, ancl allther E-caË IP, to be deriverecr tg,h"c;;niyp,,rrun,,, ro rhe rernrs of the Agreenrent andhis Schedule 3.2(b) rnt¡.st be in English.'

scr-rEpulE 3.2rb)

Plocedures for Validationof E_Cat Ip

R.is3l

,l

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i

È þtr, ¡ t r.-, , , eoMprlaru-cErÂflTHqmc' 541 'Ll,t4,ttic¿71ti-a¿fu;E ,lr,ç. ú5¡¿f e ' )

LCfÏr[)thatmiirytrI if any of úe following to imrnediately

ateq

and in any enablirrg logislationor

a¡rt to tÌ¡e Orders oron any otlrcrlistofnlesrndngdrûus ofÞ¡bcmdoÞrurMbyffis, orhmædor

n swh [ist$or ûny other person urlohastc theprohr-bitionsconbinedin the Orders-

JMC is owned by an urtityformed in the UnitedKingdor4and none ofleonardo;Dr. AndrenRossi' Henry lry-Johnsotr ûoranycf their respective subsidiâri€.e, <lirectors,olficr.re,agÊnts,emplcyees, affilistcs.sigrriûentothers, or rulatívesby blood or mamäge r*uny o*äri¡inbrestinJMC-

yN Cl,tenatt (/frddhtf*,T,c- >( '

ryBy'

Name:

TítIC: F**çt L L¿ç¡rzt

19't3,|,2-l


rossi et al v darden et al flsdce-16-21199 0001.2

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