Exhibit 10.3
EXCLUSIVE MANUFACTURING AGREEMENT
THIS EXCLUSIVE
MANUFACTURING AGREEMENT is made as of the 1st day of August, 2008
by and between SMITH YOUNG AND ASSOCIATES, INC., a Colorado
Corporation, its successors, affiliates, and assigns, Morton
Weisbrot an individual residing in the State of Arizona, his
successors, and assigns (hereinafter all collectively referred to
as the "Licensee") and, FUEL CONCEPTS LLC, an Ohio Limited
Liability Company, its successors, affiliates, and assigns
(hereinafter all collectively referred to as the
“Manufacturer”). Sometimes referred to herein
collectively as “the parties”.
NOW, THEREFORE , in consideration of the promises hereinafter
made by the parties hereto, it is agreed as follows:
ARTICLE I
APPOINTMENT OF
MANUFACTURER
1.
Manufacturing Right . Licensee hereby appoints and
grants Manufacturer the exclusive world-wide non-assignable right
to manufacture products for
Licensee defined in the
“Current Price List" as set forth in “Exhibit "A"
attached hereto .
2. Prices
. All
prices stated are listed in the “Current Price List" as set
forth in “Exhibit A" attached hereto. Said prices
are listed at Manufacturer’s actual cost to produce each
individual unit of products listed in the “Current Price
List" as set forth in “Exhibit A" attached hereto and do not
include transportation or shipping costs of any kind or federal,
state or local taxes of any kind or nature.
3. Terms
. All
Purchase Orders submitted to Manufacturer shall be paid in full with in Seven (7) business
days of submission of the Purchase Order.
4. Title to Products
. Title to the Products
shall at all times remain with Licensee. Manufacturer shall at no
time, have any right, title and interest of any kind in products
manufactured under this Agreement.
(a)
Manufacturer shall cause all products submitted to
Manufacturer by Licensee for production under this Agreement, to be
manufactured in strict accordance with Licensee’s exact
product specifications and shall institute and comply with all
quality control procedures necessary to meet such requirements. All
product manufactured under this Agreement that do not meet or
exceed Licensee's product specifications shall either be replaced
or repaired in accordance with Article VI of this
Agreement.
(b)
In the event that Manufacturer shall fail to
manufacture Licensee’s products in accordance with
Licensee’s exact product specifications and Quality Control
requirement of any specific
PO, the circumstances of which would cause the specific PO to have
a failure of .003% or greater of the total number of
units ordered per that specific PO more three (3) times during the
term of this Agreement, this Agreement shall automatically and
without further notice, convert to a NON-EXCLUSIVE
(c) Manufacturing
Agreement and Licensee shall have full rights to manufacture its
products with any other manufacturer that Licensee may deem
appropriate. Failure is defined as the products inability to adjust
and maintain the desired flow of gasoline as specified by the
Manufacturer.
ARTICLE III
DELIVERY
1. Purchase Orders and Delivery
Requirements .
(a)
Licensee shall order all products to be manufactured by
written notice (The “Purchase Order” hereinafter
collectively referred to as the “PO”) to Manufacturer.
Each PO submitted to Manufacturer shall specify the number of units
to be manufactured, the type of units to be manufactured, which
shall be identified by the model number designations as indicated
in the Price List as set forth in
“Exhibit A" attached hereto and include the desired
method of shipment and delivery date requirements. Manufacture
shall indicate its acceptance of each PO submitted under this
Agreement by returning a signed, accepted copy to Licensee within
24 hours of submission by Licensee.
(b) In the
event that Manufacturer is unable to meet the specific delivery
requirements set forth in any PO submitted, Manufacturer shall
notify Licensee in writing no later then three (3) days from the
receipt of the PO and request a delivery modification. All delivery
modifications must be approved, in writing by Licensee prior to the commencement and
fulfillment of the specific PO.
(c) In the
event that Manufacturer is unable to meet the delivery requirement
of any specific PO, the
circumstances of which would cause the delivery and fulfillment of
the specific PO to be delayed by thirty (30) days or more, Licensee
shall have the write to seek an outside manufacturer to manufacture
the specific PO.
(d) In the
event that Manufacturer is unable to meet the delivery requirement
of any specific PO, the
circumstances of which would cause the delivery and fulfillment of
the specific PO to be delayed by thirty (30) days three (3) times
during the term of this Agreement, this Agreement shall
automatically and without further notice, convert to a
NON-EXCLUSIVE Manufacturing Agreement and Licensee shall have full
rights to manufacture its products with any other manufacturer that
Licensee may deem appropriate.
2. Shipping and Transportation of
Manufactured Products.
(a)
Manufacturer shall ship units to Licensee in accordance
with the delivery requirement set forth in each PO as accepted by
Manufacturer.
(b) All
shipments of Product shall be made Fright On Board (herein after
referred to “FOB”) Manufacturer's facilities
and liability for loss or damage in transit, shall stay with
Manufacturer until such