UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 8-K

 

Current Report

 

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): September 4, 2015

 

BLOW & DRIVE INTERLOCK CORPORATION

(Exact name of registrant as specified in its charter)

 

Delaware   000-55053   46-3590850

(State or other

jurisdiction of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

 

137 South Robertson Boulevard, Suite 129

Beverly Hills, CA 90211

(Address of principal executive offices) (zip code)

 

(818) 299-0653

(Registrant’s telephone number, including area code)

 

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

 
 

 

SECTION 1 – Registrant’s Business and Operations

 

Item 1.01 Entry Into a Material Definitive Agreement

 

On September 4, 2015, we entered into an Exclusive Distribution Agreement with Theenk Inc. (“Theenk”), under which we granted Theenk the exclusive right to lease, install, service, remove and support our proprietary breath alcohol ignition interlock device (the “BDI-747/1”) in the state of Kansas. In exchange for the exclusive rights, Theenk agreed to pay us a onetime software license and support fee of $35,000 (which will be refunded in the event the BDI-747/1 is not certified as an approved interlock device in the state of Kansas within 60 days after the execution of the agreement), as well as a $150 per unit registration fee and $35 per month for each BDI-747/1 unit Theenk has in its inventory or on the road beginning thirty (30) days after Theenk receives the unit.

 

On September 5, 2015, we entered into an Exclusive Distribution Agreement with J C Lopez (“Lopez”), under which we granted Lopez the exclusive right to lease, install, service, remove and support our proprietary breath alcohol ignition interlock device (the “BDI-747/1”) in the states of Arizona and Nevada, and non-exclusively in the state of California. In exchange for these rights, Lopez agreed to pay us a onetime software license and support fee of $50,000, as well as $25 per month for each BDI-747/1 unit Lopez has in its inventory beginning thirty (30) days after Lopez receives the unit.

 

On September 11, 2015, we entered into an Independent Contractor Agreement with Laurence Wainer, in order to outline the terms under which Mr. Wainer is serving as our Chief Executive Officer. Under the terms of the agreement, Mr. Wainer will be paid compensation of $4,000 per month for performing services as our Chief Executive Officer. The agreement is for a one year term.

 

SECTION 9 – Financial Statements and Exhibits

 

Item 9.01 Financial Statements and Exhibits

 

(d) Exhibits

 

EXHIBIT NO.    DESCRIPTION
     
10.1   Exclusive Distribution Agreement with Theenk Inc dated September 4, 2015
     
10.2   Exclusive Distribution Agreement with J C Lopez dated September 5, 2015
     
10.3   Independent Contractor Agreement with Laurence Wainer dated September 11, 2015

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: September 11, 2015

Blow & Drive Interlock Corporation

a Delaware corporation

     
  By: /s/ Laurence Wainer
  Name: Laurence Wainer
  Its: Chief Executive Officer and Chief Financial Officer

 

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EXCLUSIVE DISTRIBUTION AGREEMENT

 

THIS EXCLUSIVE DISTRIBUTION AGREEMENT (this “Agreement” or this “Exclusive Distribution Agreement) is entered into effective as of 8/21/2015 (the “Effective Date”) by and between Blow & Drive Interlock Corporation (and any of its subsidiaries) (“Supplier”) having an address at 137 South Robertson Blvd, Suite 129, Beverly Hills, CA 90211 and

Theenk Inc (“Distributor”), whose address is

 

 

 

The parties agree as follows:

 

1. APPOINTMENT.

 

a. Blow & Drive Interlock and its subsidiary BDI Manufacturing is a manufacturer and supplier of a proprietary breath alcohol ignition interlock device (“BDI-747/1”) designed for use in motor vehicles. As a distributor you will lease, install, periodically service, remove and support, as required, the Interlock Device. Subject to the terms and conditions of this Exclusive Distribution Agreement, Supplier appoints Distributor, and Distributor accepts such appointment and agrees to act as Supplier’s exclusive distributor of the Supplier Products (defined below) within the geographical territory defined as follows (the “Territory”): The Entire State of Kansas

 

b. Distributor agrees to exercise its best efforts to (a) promote the lease of and obtain orders for the Supplier Products in the Territory; (b) abide by Supplier’s policies and procedures with regard to the purchase lease and support of Supplier Products; and (c) conduct its business in a manner that reflects favorably at all times on the Supplier Products and the good name, goodwill and reputation of Supplier or its affiliates. Distributor acknowledges and agrees that it has no rights or claims of any type to the Supplier Products, or any aspect thereof, except such rights as are created by this Exclusive Distribution Agreement. Distributor agrees that it shall not and is not authorized to promote, resell, deliver, install, service or otherwise support the Supplier Products outside of the Territory without prior written consent of the Supplier.

 

2. PRODUCTS AND PRICING INITIAL FEES

 

Distributor agrees to pay a onetime Software License and Support Fee of $35,000 to Supplier. Distributor will pay supplier a non-refundable amount of $17,500 upon execution of this agreement, unless and only because of, in the unlikely event the supplier does not qualify as a certified and listed State of Kansas approved Ignition Interlock provider for whatever reason including acts of god, then and only then will the $17,500 be refunded. Distributor agrees to allow supplier 60 days from the execution of this agreement to achieve state certification as a State listed provider. Supplier will have 7 days to cure by wire transfer of check.

 

Distributor will pay supplier the additional $17,500 balance due upon State certification as a listed State of Kansas approved Ignition Interlock provider.

 

Other terms and conditions include:

 

Distributor agrees to pay a $150 unit registration fee (Waived for existing customers of distributor)
   
A monthly payment of $35.00 per unit begins 30 days after the unit is in Distributors inventory.

 

 
 

  

3. APPROVALS.

 

Supplier shall obtain, at its own expense, such approvals, consents, certifications, permits and other authorizations, including all approvals as are required to qualify the Supplier Products for sale and use in the Territory for all purposes, both governmental and non-governmental (collectively, the “Approvals”), as soon as is reasonably practicable. Distributor agrees to cooperate and aid Supplier to obtain such Approvals. Distributor agrees to allow supplier 60 days from the execution of this agreement to achieve state certification as a State listed provider

 

4. EXCLUSIVITY.

 

Supplier’s appointment of Distributor in Section 1 of this Agreement is an exclusive appointment to distribute the Products in the Territory. Supplier may independently advertise, but may not solicit or make sales of distributor Products, or appoint additional distributors for Supplier Products in the Territory.

 

5. SALES OUTSIDE OF THE TERRITORY.

 

Distributor shall promote the sale of Supplier Products in the Territory on its website. Notwithstanding the foregoing sentence, Distributor shall not actively advertise or actively solicit orders for Supplier Products outside of the Territory without prior written consent.

 

6. ORDERS .

 

All requests for inventory will be transmitted by Distributor to Supplier and shall be in writing by Supplier. The supplier will maintain a sufficient inventory of the Interlock devices to provide to the distributor upon request, provided the distributor is not in breach of the agreement . Each request submitted shall constitute an offer by Distributor to lease the Supplier Products described in such order and, shall give rise to a contractual obligation of Distributor to lease the said products on the terms and conditions set forth in this Agreement. All expenses arising out of the change or cancellation of an order after acceptance by Supplier, including the cost of diversion, cancellation or re-consignment of shipments, and any reasonable restocking charge, shall be paid by Distributor within 30 days.

 

 
 

  

7. PAYMENT AND DELIVERY .

 

The monthly lease price and or unit registration fee shall be quoted and payable in U. S. Dollars to Supplier at the address specified on the lease order. Unless otherwise agreed by the parties in writing, payment shall be made by Distributor by wire transfer or check at the end of each calendar month. The Supplier Products shall be delivered to the Distributors physical address as listed in this document. Risk of loss for the Supplier Products shall pass upon delivery to the named carrier at Supplier’s facilities.

 

A onetime fee in the amount of $35,000 is due, $17,500 upon execution of this agreement with the balance due upon distributor acceptance. Supplier will provide distributor with our Starter Equipment Package which includes: One (1) laptop computer with proprietary software preloaded, software license, unlimited software support, one (1) roll double sided tape, 500ft 18 gauge black wire, 500ft 18 gauge red wire, fifty (50) butt connectors, one (1) screwdriver kit, one (1) auto simulator, one (1)dry gas calibration kit, one (1) power supply, fifty (50) mouthpieces and one (1) drill and a skin of our website.
   
A unit registration fee in the amount of $150 (Waived for existing customers of distributor)
   
A Net thirty (30) days on the balance upon delivery. (Net thirty is defined as all equipment and in the course of any month shall be due and paid in full 30 days after the end of billing for that month)

 

8. SECURITY INTEREST.

 

Notwithstanding the passage of title, Supplier shall retain a security interest in all Supplier Products delivered until amounts for which Distributor is responsible under this Agreement have been received by Supplier. Supplier shall have all rights of a secured party, including the right to file a financing statement under the Uniform Commercial Code or a comparable law within the Territory to protect Supplier’s security interest. In the event Distributor defaults in its payment obligations, Supplier will have the right to enter the premises of Distributor to recover possession of all Supplier Products on said premises, to recover all Supplier Products supplied by Distributor to its customers and associated supplies or software, and to pursue any other remedy existing at law or equity. Distributor, for itself and on behalf of its customers, hereby waives a prior hearing and demand for Supplier’s exercise of such rights.

 

9. RESALE PRICE AND EXPENSES.

 

Distributor shall set the lease price and installation fees at which the Supplier Products are sold or licensed by it in the Territory. Distributor shall be solely responsible for the costs involved in the distribution of the Supplier Products, including sales costs, any and all banking charges, shipping and handling costs, installation costs or other operating expenses, letter of credit costs, wire transfer fees and other costs associated with making payment, and taxes, however designated, except that Distributor shall not be liable for taxes imposed that are based on Supplier’s income.

 

 
 

  

10. PROMOTIONAL LITERATURE.

 

Supplier agrees to furnish, in English, to Distributor (via email in pdf format) such descriptive literature, advertising materials, technical manuals and sales promotional materials concerning the Supplier Products as Supplier may, from time to time, have available for such purposes Distributor shall have the right to translate such materials into the languages of the Territory at its own expense. Supplier shall retain ownership of all proprietary rights, including, intellectual property rights to the translated versions of the materials. Distributor will be solely responsible for the accuracy of the translations and will provide Supplier with a copy of each translated work. Distributor shall promptly revise (at Distributor’s costs) the materials upon notice from Supplier.

 

OBLIGATIONS OF SUPPLIER.

 

Initial Training Program: The Initial Training Program will consist of approximately three (3) weeks of training that must be completed. Supplier shall provide the Initial Training Program for the independent third (3rd) party installers and the Principal Owner of distributor’s place of business if distributor requests supplier to provide the Initial Training Program to any of its employees in addition to the Principal Owner, supplier agrees to do so at no additional charge to distributor. Supplier shall determine the contents and manner of conducting the Initial Training Program, at its discretion. Supplier is responsible to acquire and train a sufficient number of installation service centers as to be within 50 miles of every North Carolina resident as it is the best interest of both the supplier and distributor. If for any reason distributor loses a service center, supplier must be notified and will on a best efforts basis replace lost service centers. In addition, supplier shall pay all transportation costs, food, lodging and similar costs incurred in connection with training program. Manuals. Supplier shall lend a copy of, or provide distributor with access to, the Manuals for use during the Term. The Manuals may be mailed, e-mailed, made available for download from supplier’s website, or franchise internet portal, or otherwise delivered to distributor. The Manuals shall contain mandatory state specifications, standards, and operating procedures. All specifications, standards, operating procedures and rules in the Manuals, or otherwise communicated to distributor in writing, shall constitute obligations under this Agreement as if fully set forth in this Agreement. The Manuals may be modified from time to time to reflect changes. All modifications to the Manuals shall be binding upon distributor upon being mailed, e-mailed, made available for download from supplier’s website, or supplier’s internet portal, or otherwise delivered to distributor. Supplier may provide regular consultation and advice to distributor in response to distributor inquiries about specific administrative and operating issues that distributor brings to suppliers attention during the Term, including, without limitation, reporting customer interlock data to Governmental Authorities and mandatory and recommended standards and operating procedures. Consultation and advice may be provided by telephone, in writing electronically, in person, or by other means. Toll-Free Telephone Number. Supplier shall maintain a toll-free telephone number for Distributor’s use for consultations with supplier and for communications to distributor and suppliers from Governmental Authorities. The toll-free number will appear on the Governmental Authorities’ lists of breath alcohol ignition interlock device manufacturers and providers. Supplier shall assist distributor in reporting distributor’s customer data to the appropriate Governmental Authorities. Supplier shall forward all calls from potential customers in the Territory to distributor.

 

 
 

  

11. USE OF TRADEMARKS.

 

Distributor shall not be permitted to print, post or otherwise use letterhead, calling cards, literature, signage or other representations in the name of Supplier (or any of its affiliates) or to represent itself as Supplier (or any of its affiliates) or make commitments on behalf of Supplier (or any of its affiliates) without the express, written permission of Supplier. Distributor expressly agrees that no license to use Supplier (or any of its affiliates’ trademarks, trade names, service marks or logos (collectively, the “Supplier Trademarks”) is granted by this Agreement. Distributor may, however, indicate in its advertising and marketing materials that it is a distributor for Supplier Products and may as necessary, incidentally use the Supplier Trademarks in its sales/marketing efforts. Upon request by Supplier, Distributor will place proper trademark, copyright and patent notices in its advertisements, promotional brochures and other marketing materials for Supplier Products. Supplier reserves the right to review Distributor’s marketing and sales materials prior to their publication or use. No rights shall inure to Distributor as a result of any such use or reference, and all such rights, including goodwill shall inure to the benefit of and be vested in Supplier.

 

Upon termination of this Agreement for any reason, Distributor will immediately cease using the Supplier Trademarks as allowed in this Section and shall immediately take all appropriate and necessary steps to (a) remove and cancel any listings in public records, telephone books, other directories, remove any visual displays or literature at Distributor’s location, the Internet and elsewhere that would indicate or would lead the public to believe that Distributor is the representative of Supplier (or any of its affiliates) or Supplier’s (or any of its affiliates’) products or services; and (b) cancel, abandon or transfer (as requested by Supplier) any product licenses, trade name filings, trademark applications or registrations or other filings with the governments of the Territory (whether or not such filings were authorized by Supplier) that may incorporate the Supplier Trademarks or any marks or names confusingly similar to the Supplier Trademarks. Upon Distributor’s failure to comply with this paragraph, Supplier may make application for such removals, cancellations, abandonments or transfers in Distributor’s name. Distributor shall render assistance to and reimburse Supplier for expenses incurred in enforcing this paragraph.

 

12. INFRINGEMENT BY THIRD PARTIES.

 

Distributor will cooperate fully with and assist Supplier in its efforts to protect Supplier’s intellectual property rights within the Territory and shall exercise reasonable diligence to detect and shall immediately advise Supplier if Distributor has knowledge of any infringement of any patents, trademarks, copyrights or other intellectual property rights owned or used by Supplier.

 

 
 

 

13. CONFIDENTIAL INFORMATION;

 

NO REVERSE ENGINEERING.

 

Supplier may provide Distributor with certain confidential or proprietary information (“Confidential Information”). Confidential Information includes information, whether written, electronic or oral, which Distributor knows or reasonably should know is proprietary, confidential or a trade secret of Supplier, including any and all technical or business information, the Software including its source codes and documentation, specifications and design information for the Supplier Products, servicing information, customer lists, pricing information, marketing information, policies, procedures and manuals regarding Supplier’s distributors or distribution channels, research and development and other proprietary matter relating to the Supplier Products or business of Supplier. Distributor will refrain from using the Confidential Information except to the extent necessary to exercise its rights or perform its obligations under this Agreement. Distributor will likewise restrict its disclosure of the Confidential Information to those who have a need to know such Confidential Information in order for Distributor to perform its obligations and enjoy its rights under this Agreement. Such persons will be informed of and will agree to the provisions of this Section and Distributor will remain responsible for any unauthorized use or disclosure of the Confidential Information by any of them. Upon termination of this Agreement (or earlier, upon request by Supplier), Distributor shall cease to use all Confidential Information and promptly return to Supplier (or destroy, upon request by Supplier) any documents (whether written or electronic) in its possession or under its control that constitutes Confidential Information. During the term of this Agreement and thereafter, neither Distributor, nor Distributor’s employees, independent contractors nor other agents shall (a) reverse engineer, decompile or otherwise disassemble the Supplier Products from the products themselves or from any other information made available to them, or (b) otherwise use any of the Confidential Information or Supplier provided training to support, maintain or otherwise service a third party’s products or services.

 

14. COMPLIANCE WITH LAWS.

 

In connection with its obligations under this Agreement, Distributor agrees to comply with all federal, state, local and foreign laws, constitutions, codes, statutes and ordinances of any governmental authority that may be applicable to Distributor, its activities under this Agreement or the Supplier Products, including all applicable export control laws and regulations. Distributor agrees to take all such further acts and execute all such further documents as Supplier reasonably may request in connection with such compliance.

 

 
 

 

15. PRODUCT WARRANTIES.

 

Supplier’s sole obligation under this warranty shall be to provide, at no charge to Distributor, replacement Products. Defective Products must be returned to Supplier (at Supplier’s cost) in order to receive warranty replacement and shall become Supplier’s property. Supplier must repair or replace product within 30 days of return, Distributor must follow the procedures established by Supplier from time to time.

 

b. Warranty of Good Title. Supplier agrees to indemnify Distributor from any liability to any third party for infringement of United States patents, copyrights, trademarks or trade secrets with respect to Supplier Products sold/licensed by Distributor pursuant to this Agreement. This obligation does not extend to any foreign patents, copyrights, trademarks, or trade secrets or to any Supplier Products manufactured or modified by Supplier to meet Distributor’s or a customer’s specifications. Supplier shall, at its option, be allowed sole and exclusive control over the defense, settlement and compromise of any claims of infringement. Supplier must be notified in writing by Distributor within 15 days of any third party claim which, if upheld, might result in a liability subject to indemnification under this Subsection. If the distribution of the Supplier Products is threatened by a claim of infringement, or is likely to be enjoined or liability for infringement is found, Supplier may, in its discretion and at its sole option: (i) procure for Distributor the right to continue distributing the Supplier Products; or (ii) modify the Supplier Products so as to make them non-infringing; or (iii) substitute non-infringing products; or (iv) refund the price paid by Distributor for the Supplier Products in its possession subject to their return by Distributor and terminate this Agreement with respect to the allegedly infringing products. THIS SUBSECTION STATES THE ENTIRE LIABILITY OF SUPPLIER WITH RESPECT TO INFRINGEMENT OF ANY PATENT, COPYRIGHT, TRADEMARK, TRADE SECRET OR OTHER INTELLECTUAL PROPERTY RIGHT BY ANY SUPPLIER PRODUCT.

 

c. Disclaimer. EXCEPT AS PROVIDED IN THIS SECTION, SUPPLIER MAKES NO OTHER WARRANTY, PROMISE OR OBLIGATION WITH RESPECT TO THE SUPPLIER PRODUCTS, THEIR USE, REPAIR OR PERFORMANCE. SUPPLIER DISCLAIMS ANY WARRANTY, PROMISE OR OBLIGATION THAT THE SUPPLIER PRODUCTS SHALL BE FIT FOR ANY PARTICULAR USE OR PURPOSE, REGARDLESS OF WHETHER SUCH USE OR PURPOSE IS MADE KNOWN TO SUPPLIER OR NOT. SUPPLIER DISCLAIMS ANY WARRANTY, PROMISE OR OBLIGATION THAT THE SUPPLIER PRODUCTS CONFORM TO ANY SAMPLES OR MODELS. SUPPLIER HEREBY DISCLAIMS ALL OTHER WARRANTIES, PROMISES AND OBLIGATIONS, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTIES, PROMISES AND OBLIGATIONS ARISING FROM A COURSE OF DEALING OR USAGE OF TRADE. THE WARRANTIES SET FORTH IN THIS SECTION ARE INTENDED SOLELY FOR THE BENEFIT OF DISTRIBUTOR. ALL CLAIMS UNDER THIS AGREEMENT SHALL BE MADE BY DISTRIBUTOR AND MAY NOT BE MADE BY DISTRIBUTOR’S CUSTOMERS.

 

d. Distributor’s Warranties. Distributor agrees, at its cost, to provide its customers with, at a minimum, substantially the same warranties as set forth in this agreement (Section 15). Distributor will assume all costs involved in providing any additional warranties.

 

16. INSURANCE

 

Supplier shall, at its own cost and expense, purchase and maintain, continuously throughout the term hereof, the following insurance coverage, against damage or loss caused by Supplier or its employees, agents, or products:

 

a. Commercial General Liability in no less than $1,000,000 per occurrence and $3,000,000 aggregate limit for Bodily injury and Property Damage, currently held by Admiral Insurance.

 

b. Certificates evidencing all insurance required under this paragraph shall be provided to Distributor within ten (10) days after, the execution of this Agreement and at any time thereafter upon request of Distributor. All policies shall be endorsed to provide that they may not be terminated or canceled except upon thirty (30) days prior written notice by the insurer to Distributor. Supplier must provide proof of such coverage to Distributor in the form of a certificate evidencing insurance coverage and showing Distributor as an additional insured.

 

 
 

  

17. INSPECTION OF RECORDS.

 

Distributor shall keep accurate records of all its activities as reasonably necessary to determine its compliance with the terms and conditions of this Agreement, including accounting records, customer sales records and governmental filings. Distributor shall retain such records for at least a 3-year period following their creation or preparation. During the term of this Agreement and for a period of 18 months thereafter, Supplier shall have the right to inspect and audit such records.

 

18. TERM AND TERMINATION.

 

Unless earlier terminated as provided in this Agreement, the term of this Agreement shall commence upon delivery of State Certifications and shall remain in full force and effect for 3 years following the Effective Date. Either party may terminate this Agreement as follows: (a) Immediately upon 30 days’ prior notice with cause; (b) Immediately, for any breach or default of this Agreement by the other party which has not been cured within 10 days after the delivery of notice thereof to the party alleged to be in breach, specifying with particularity the condition, act, omission or course of conduct asserted to constitute such breach or default; (c) Immediately, upon the dissolution, insolvency or any adjudication in bankruptcy of, or any assignment for the benefit of creditors by, the other party or if the other party ceases to conduct business in the ordinary or normal course; (d) Immediately, if required by law or by any rule, regulation, order, decree, judgment or other governmental act of any governmental authority; or (e) Immediately by Supplier if Supplier reasonably suspects that Distributor breached any of its obligations of confidentiality or protection of Supplier’s proprietary rights. This Agreement shall automatically renew for five (2) years unless either party, with or without cause, gives written notice to the other of its intent not to renew no later than thirty (30) calendar days prior to the expiration of the current term. Upon any notice of termination of the Agreement because of the distributors breach or default, the distributor will have the right to cure any monetary breach within 15 days or receiving the notice. Provided that after initial term of this agreement distributor is not in breach AND distributor has gained at least a 5% market share of the Ignition Interlock market in North Carolina (as determined by Dr. Richard Roth and published on the website rothinterlock.org) then the right to terminate shall be that of the distributor only.

 

 
 

  

19. EFFECT OF TERMINATION.

 

Upon notice of termination of this Agreement for any reason, the following provisions shall apply: (a) Supplier shall have the right to immediately appoint another distributor to serve existing customers and continue sales efforts in the Territory; (b) Supplier may continue to fill any orders from Distributor that have been accepted by Supplier prior to the termination of this Agreement under the terms and conditions of this Agreement; (c) All outstanding balances owed by Distributor to Supplier shall become immediately due and payable to Supplier; (d) Both parties shall at all times thereafter refrain from any conduct that would be inconsistent with or likely to cause confusion with respect to the nature of their business relationship; (e) All rights granted to Distributor under this Agreement shall cease, and where appropriate, revert to Supplier; and (f) Supplier, in its sole discretion, shall have the right, but shall in no way be obligated (unless otherwise required by law), to inspect and repurchase all or any quantity of the Supplier Products (including Supplier Products for demonstration and parts to service the Supplier Products) then owned or ordered by Distributor at the lesser of (i) the original price paid by Distributor for such Supplier Products, or (ii) at the then-current price to Distributor, and under both (i) or (ii), less any applicable restocking or refurbishing charge. Supplier shall have the right to assign such option to repurchase to any other person whom it may designate. No consideration or indemnity shall be payable to Distributor either for loss of profit, goodwill, customers or other like or unlike items, nor for advertising costs, costs of samples or supplies, termination of employees, employees’ salaries and other like or unlike items. In no event shall Distributor continue to represent itself as a Supplier distributor or representative after termination of this Agreement.

 

Supplier shall have no liability to Distributor by reason of any termination by Supplier. Distributor shall indemnify and hold harmless Supplier from and against any and all liability, loss, damages and costs (including reasonable attorneys’ fees) arising out of any claim by Distributor or any third party standing in the right of Distributor to any right of entitlement contrary to the express terms of this Section.

 

20. INDEMNIFICATION.

 

Distributor agrees to indemnify and hold Supplier harmless from any and all actions, awards, claims, losses, damages, costs and expenses (including reasonable attorneys’ fees) attributable to Distributor’s breach of this Agreement or to any negligent, grossly negligent, willful or unlawful acts or omissions of Distributor, its employees, officers, agents, subcontractors, dealers or representatives.

 

21. RELATIONSHIP OF THE PARTIES.

 

Distributor is an independent contractor and not an employee, agent, affiliate, partner or joint venture with or of Supplier. Neither Distributor nor Supplier shall have any right to enter into any contracts or commitments in the name of, or on behalf of the other or to bind the other in any respect whatsoever, except insofar as is allowed by this Agreement.

 

 
 

  

22. FORCE MAJEURE.

 

Neither party shall be liable in the event that its performance of this Agreement is prevented, or rendered so difficult or expensive as to be commercially impracticable, by reason of an Act of God, labor dispute, unavailability of transportation, goods or services, governmental restrictions or actions, war (declared or undeclared) or other hostilities, or by any other event, condition or cause which is not foreseeable on the Effective Date and is beyond the reasonable control of the party. It is expressly agreed that any failure of the United States Government to issue a required license for the export of any Supplier Product ordered by Distributor shall constitute an event of force majeure. In the event of non-performance or delay in performance attributable to any such causes, the period allowed for performance of the applicable obligation under this Agreement will be extended for a period equal to the period of the delay. However, the party so delayed shall use its best efforts, without obligation to expend substantial amounts not otherwise required under this Agreement, to remove or overcome the cause of delay. In the event that the performance of a party is delayed for more than 6 months, the other party shall have the right, which shall be exercisable for so long as the cause of such delay shall continue to exist, to terminate this Agreement without liability for such termination.

 

23. LIMITATION OF LIABILITY.

 

SUPPLIER SHALL IN NO EVENT BE LIABLE FOR ANY INDIRECT, SPECIAL, EXEMPLARY, INCIDENTAL OR CONSEQUENTIAL LOSS OR DAMAGE OR FOR ANY LOST PROFITS, LOST SAVINGS OR LOSS OF REVENUES SUFFERED BY DISTRIBUTOR ARISING FROM OR IN ANY WAY CONNECTED WITH THIS AGREEMENT OR THE SALE, DISTRIBUTION OR USE OF SUPPLIER PRODUCTS. DISTRIBUTOR SHALL INDEMNIFY SUPPLIER AND HOLD IT HARMLESS FROM ANY CLAIMS, DEMANDS, LIABILITIES, SUIT OR EXPENSES OF ANY KIND ARISING OUT OF THE SALE, SUBLICENSE OR USE OF SUPPLIER PRODUCTS IN THE TERRITORY OR BY DISTRIBUTOR’S CUSTOMERS. THIS SECTION SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT FOR ANY REASON.

 

24. GOVERNING LAW.

 

This Agreement shall be governed in all respect by the laws of the State of Arizona, USA, which shall be applied without reference to any conflict-of-laws rule under which different law might otherwise be applicable. The United Nations Convention on Contracts for the International Sale of Goods shall not apply to any purchases or transactions entered into pursuant to this Agreement. Venue for any lawsuits brought by the parties to this Agreement against each other regarding or as a result of this Agreement shall be proper only in an appropriate Arizona State Court or the United States District Court for the District of Arizona. Distributor hereby submits itself to the exclusive jurisdiction of said courts and consents to service of process by confirmed facsimile transmission or commercial courier (with written verification of receipt returned to the sender).

 

 
 

  

25. ASSIGNMENT AND DELEGATION.

 

Distributor shall have no right to assign any of its rights or delegate its obligations under this Agreement without the prior written consent of Supplier. Any assignment or delegation attempted without such written consent shall be void and of no legal effect whatsoever. This Agreement shall be binding upon the parties’ respective successors and permitted assigns.

 

26. SEVERABILITY.

 

In the event that any provision of this Agreement shall be unenforceable or invalid under any applicable law or be so held by applicable court or arbitration decision, such unenforceability or invalidity shall not render this Agreement unenforceable or invalid as a whole, and, in such event, such provisions shall be changed and interpreted so as to best accomplish the objectives of such unenforceable or invalid provision within the limits of applicable law or applicable court or arbitration decision.

 

27. CONSTRUCTION.

 

The headings or titles preceding the text of the Sections and Subsections are inserted solely for convenience of reference, and shall not constitute a part of this Agreement, nor shall they affect the meaning, construction or effect of this Agreement. Both parties have participated in the negotiation and drafting of this Agreement. This Agreement is executed in the English language and may be translated into another language for informational purposes only. In the event an ambiguity or question of intent or interpretation arises, the English version of this Agreement shall prevail and this Agreement shall be construed as if drafted by both of the parties and no presumption or burden of proof shall arise favoring or disfavoring either party by virtue of the authorship of any of the provisions of this Agreement.

 

28. NOTICE.

 

Any notice, consent or other communication required or permitted under this Agreement shall be written in English and shall be deemed given when (a) delivered personally; (b) sent by confirmed facsimile transmission; or (c) sent by commercial courier with written verification of receipt returned to the sender. Notice, consent or other communications (but not service of process) may also be given by e-mail. Rejection or other refusal to accept or the inability to deliver because of changed address or facsimile number of which no notice was given shall be deemed to constitute receipt of the notice, consent or communication sent. Names, addresses and facsimile numbers for notices (unless and until written notice of other names, addresses and facsimile numbers are provided by either or both parties) are provided below.

 

If to Distributor:

Company________________________________________

Attention: Jessie Shafer

Address:_________________________________________

 

If to Supplier:

Blow & Drive Interlock Corporation

Attention: Laurence Wainer

137 South Robertson Blvd, Suite 129,

Beverly Hills, CA 90211

 

 
 

  

29. ENTIRE AGREEMENT; MODIFICATIONS; NO WAIVER; COUNTERPARTS AND SURVIVAL.

 

This Agreement and the Exhibit attached hereto (which is specifically incorporated herein by this reference) contain the full and entire agreement between the parties with respect to the subject matter hereof. It supersedes all prior negotiations, representations and proposals, written or otherwise, relating to its subject matter. Any modifications, revisions or amendments to this Agreement must be set forth in a writing signed by authorized representatives of both parties. Distributor acknowledges and agrees that any failure on the part of Supplier to enforce at any time or for any period of time, any of the provisions of this Agreement shall not be deemed or construed to be a waiver of such provisions or of the right of Supplier thereafter to enforce each and every provision. This Agreement may be made in several counterparts, each of which shall be deemed an original. The provisions of this Agreement that, by express terms of this Agreement, will not be fully performed during the term of this Agreement, shall survive the termination of this Agreement to the extent applicable.

 

IN WITNESS WHEREOF the parties have caused this Exclusive Distribution Agreement to be executed and delivered by their duly authorized representatives.

 

(___________________), LLC

 

_______________________________________________

Jessie Shafer

Owner

 

Blow & Drive Interlock Corporation (and any of its subsidiaries)

 

_______________________________________________

Laurence Wainer

C.E.O

 

 
 

 

 

 

EXCLUSIVE DISTRIBUTION AGREEMENT

 

THIS EXCLUSIVE DISTRIBUTION AGREEMENT (this “Agreement” or this “Exclusive Distribution Agreement) is entered into effective as of 7/24/2015 (the “Effective Date”) by and between Blow & Drive Interlock Corporation (and any of its subsidiaries) (“Supplier”) having an address at 137 South Robertson Blvd, Suite 129, Beverly Hills, CA 90211 and

Jay Lopez (“Distributor”), whose address is

 

 

The parties agree as follows:

 

1. APPOINTMENT.

 

a. Blow & Drive Interlock and its subsidiary BDI Manufacturing is a manufacturer and supplier of a proprietary breath alcohol ignition interlock device (“BDI-747/1”) designed for use in motor vehicles. As a distributor you will lease, install, periodically service, remove and support, as required, the Interlock Device. Subject to the terms and conditions of this Exclusive Distribution Agreement, Supplier appoints Distributor, and Distributor accepts such appointment and agrees to act as Supplier’s exclusive distributor of the Supplier Products (defined below) within the geographical territory defined as follows (the “Territory”): State of Arizona (exclusively), State of Nevada(exclusively). The State of California shall be shared between Jay Lopez & Blow & Drive Interlock.

 

b. Distributor agrees to exercise its best efforts to (a) promote the lease of and obtain orders for the Supplier Products in the Territory; (b) abide by Supplier’s policies and procedures with regard to the purchase lease and support of Supplier Products; and (c) conduct its business in a manner that reflects favorably at all times on the Supplier Products and the good name, goodwill and reputation of Supplier or its affiliates. Distributor acknowledges and agrees that it has no rights or claims of any type to the Supplier Products, or any aspect thereof, except such rights as are created by this Exclusive Distribution Agreement. Distributor agrees that it shall not and is not authorized to promote, resell, deliver, install, service or otherwise support the Supplier Products outside of the Territory without prior written consent of the Supplier.

 

2. PRODUCTS AND PRICING INITIAL FEES

 

Distributor agrees to pay a onetime territory and support Fee of $50,000 to Supplier fifty-percent (50%) upon execution of this agreement with the balance due upon distributor acceptance: Other terms and conditions include:

 

Distributor agrees to pay a monthly payment of 25.00 per unit begins 30 days after the unit is in Distributors inventory.

 

 
     

 

3. APPROVALS.

 

Supplier shall obtain, at its own expense, such approvals, consents, certifications, permits and other authorizations, including all approvals as are required to qualify the Supplier Products for sale and use in the Territory for all purposes, both governmental and non-governmental (collectively, the “Approvals”), as soon as is reasonably practicable and NOT longer than 60 days from the exaction date of this agreement. Should supplier fail to deliver approvals within 60 days all funds are to be refunded within 7 days back to distributor by bank wire, distributor agrees to cooperate and aid Supplier to obtain such Approvals.

 

4. EXCLUSIVITY.

 

Supplier’s appointment of Distributor in Section 1 of this Agreement is an exclusive appointment to distribute the Products in the Territory. Supplier may independently advertise, but may not solicit or make sales of distributor Products, or appoint additional distributors for Supplier Products in the Territory.

 

5. SALES OUTSIDE OF THE TERRITORY.

 

Distributor shall promote the sale of Supplier Products in the Territory on its website. Notwithstanding the foregoing sentence, Distributor shall not actively advertise or actively solicit orders for Supplier Products outside of the Territory without prior written consent.

 

6. ORDERS.

 

All requests for inventory will be transmitted by Distributor to Supplier and shall be subject to acceptance in writing by Supplier. Each request submitted shall constitute an offer by Distributor to lease the Supplier Products described in such order and, upon acceptance by Supplier, shall give rise to a contractual obligation of Distributor to lease the said products on the terms and conditions set forth in this Agreement. All expenses arising out of the change or cancellation of an order after acceptance by Supplier, including the cost of diversion, cancellation or re-consignment of shipments, and any reasonable restocking charge, shall be paid by Distributor within 30 days.

 

7. PAYMENT AND DELIVERY.

 

The monthly lease price and or unit registration fee shall be quoted and payable in U. S. Dollars to Supplier at the address specified on the lease order. Unless otherwise agreed by the parties in writing, payment shall be made by Distributor by wire transfer or check at the end of each calendar month. The Supplier Products shall be delivered to the Distributors physical address as listed in this document. Risk of loss for the Supplier Products shall pass upon delivery to the named carrier at Supplier’s facilities.

 

A onetime fee in the amount of $50,000 is due, fifty-percent (50%) upon execution of this agreement with the balance due upon distributor acceptance. Supplier will provide distributor with our Starter Equipment Package which includes one (1) roll double sided tape, 500ft 18 gauge black wire, 500ft 18 gauge red wire, fifty (50) butt connectors, one (1) screwdriver kit, one (1) auto simulator, one (1)dry gas calibration kit, one (1) power supply, fifty (50) mouthpieces and one (1) drill.
   
A Net thirty (30) days on the balance upon delivery. (Net thirty is defined as all equipment and in the course of any month shall be due and paid in full 30 days after the end of billing for that month)

 

 
     

 

8. SECURITY INTEREST.

 

Notwithstanding the passage of title, Supplier shall retain a security interest in all Supplier Products delivered until amounts for which Distributor is responsible under this Agreement have been received by Supplier. Supplier shall have all rights of a secured party, including the right to file a financing statement under the Uniform Commercial Code or a comparable law within the Territory to protect Supplier’s security interest. In the event Distributor defaults in its payment obligations, Supplier will have the right to enter the premises of Distributor to recover possession of all Supplier Products on said premises, to recover all Supplier Products supplied by Distributor to its customers and associated supplies and to pursue any other remedy existing at law or equity. Distributor, for itself and on behalf of its customers, hereby waives a prior hearing and demand for Supplier’s exercise of such rights.

 

9. RESALE PRICE AND EXPENSES.

 

Distributor shall set the lease price and installation fees at which the Supplier Products are sold or licensed by it in the Territory. Distributor shall be solely responsible for the costs involved in the distribution of the Supplier Products, including sales costs, any and all banking charges, shipping and handling costs, installation costs or other operating expenses, letter of credit costs, wire transfer fees and other costs associated with making payment, and taxes, however designated, except that Distributor shall not be liable for taxes imposed that are based on Supplier’s income.

 

10. PROMOTIONAL LITERATURE.

 

Supplier agrees to furnish, in English, to Distributor (via email in pdf format) such descriptive literature, advertising materials, technical manuals and sales promotional materials concerning the Supplier Products as Supplier may, from time to time, have available for such purposes Distributor shall have the right to translate such materials into the languages of the Territory at its own expense. Supplier shall retain ownership of all proprietary rights, including, intellectual property rights to the translated versions of the materials. Distributor will be solely responsible for the accuracy of the translations and will provide Supplier with a copy of each translated work. Distributor shall promptly revise (at Distributor’s costs) the materials upon notice from Supplier.

 

 
     

 

OBLIGATIONS OF SUPPLIER.

 

Initial Training Program: Supplier shall provide the Initial Training Program for the independent third (3rd) party installers and the Principal Owner of distributor’s place of business if distributor requests supplier to provide the Initial Training Program to any of its employees in addition to the Principal Owner, supplier agrees to do so at no additional charge to distributor. The Initial Training Program will consist of approximately three (3) weeks of training that must be completed. Supplier shall determine the contents and manner of conducting the Initial Training Program, at its discretion.

 

In addition, supplier shall pay all transportation costs, food, lodging and similar costs incurred in connection with training program. Manuals. Supplier shall lend a copy of, or provide distributor with access to, the Manuals for use during the Term. The Manuals may be mailed, e-mailed, made available for download from supplier’s website, or franchise internet portal, or otherwise delivered to distributor. The Manuals shall contain mandatory state specifications, standards, and operating procedures. All specifications, standards, operating procedures and rules in the Manuals, or otherwise communicated to distributor in writing, shall constitute obligations under this Agreement as if fully set forth in this Agreement. The Manuals may be modified from time to time to reflect changes. All modifications to the Manuals shall be binding upon distributor upon being mailed, e-mailed, made available for download from supplier’s website, or supplier’s internet portal, or otherwise delivered to distributor. Supplier may provide regular consultation and advice to distributor in response to distributor inquiries about specific administrative and operating issues that distributor brings to suppliers attention during the Term, including, without limitation, reporting customer interlock data to Governmental Authorities and mandatory and recommended standards and operating procedures. Consultation and advice may be provided by telephone, in writing electronically, in person, or by other means. Toll-Free Telephone Number. Supplier shall maintain a toll-free telephone number for Distributor’s use for consultations with supplier and for communications to distributor and suppliers from Governmental Authorities. The toll-free number will appear on the Governmental Authorities’ lists of breath alcohol ignition interlock device manufacturers and providers. Supplier shall assist distributor in reporting distributor’s customer data to the appropriate Governmental Authorities. Supplier shall forward all calls from potential customers in the Territory to distributor.

 

11. USE OF TRADEMARKS.

 

Distributor shall not be permitted to print, post or otherwise use letterhead, calling cards, literature, signage or other representations in the name of Supplier (or any of its affiliates) or to represent itself as Supplier (or any of its affiliates) or make commitments on behalf of Supplier (or any of its affiliates) without the express, written permission of Supplier. Distributor expressly agrees that no license to use Supplier (or any of its affiliates’ trademarks, trade names, service marks or logos (collectively, the “Supplier Trademarks”) is granted by this Agreement. Distributor may, however, indicate in its advertising and marketing materials that it is a distributor for Supplier Products and may as necessary, incidentally use the Supplier Trademarks in its sales/marketing efforts. Upon request by Supplier, Distributor will place proper trademark, copyright and patent notices in its advertisements, promotional brochures and other marketing materials for Supplier Products. Supplier reserves the right to review Distributor’s marketing and sales materials prior to their publication or use. No rights shall inure to Distributor as a result of any such use or reference, and all such rights, including goodwill shall inure to the benefit of and be vested in Supplier.

 

 
     

 

Upon termination of this Agreement for any reason, Distributor will immediately cease using the Supplier Trademarks as allowed in this Section and shall immediately take all appropriate and necessary steps to (a) remove and cancel any listings in public records, telephone books, other directories, remove any visual displays or literature at Distributor’s location, the Internet and elsewhere that would indicate or would lead the public to believe that Distributor is the representative of Supplier (or any of its affiliates) or Supplier’s (or any of its affiliates’) products or services; and (b) cancel, abandon or transfer (as requested by Supplier) any product licenses, trade name filings, trademark applications or registrations or other filings with the governments of the Territory (whether or not such filings were authorized by Supplier) that may incorporate the Supplier Trademarks or any marks or names confusingly similar to the Supplier Trademarks. Upon Distributor’s failure to comply with this paragraph, Supplier may make application for such removals, cancellations, abandonments or transfers in Distributor’s name. Distributor shall render assistance to and reimburse Supplier for expenses incurred in enforcing this paragraph.

 

12. INFRINGEMENT BY THIRD PARTIES.

 

Distributor will cooperate fully with and assist Supplier in its efforts to protect Supplier’s intellectual property rights within the Territory and shall exercise reasonable diligence to detect and shall immediately advise Supplier if Distributor has knowledge of any infringement of any patents, trademarks, copyrights or other intellectual property rights owned or used by Supplier.

 

13. CONFIDENTIAL INFORMATION;

 

NO REVERSE ENGINEERING.

 

Supplier may provide Distributor with certain confidential or proprietary information (“Confidential Information”). Confidential Information includes information, whether written, electronic or oral, which Distributor knows or reasonably should know is proprietary, confidential or a trade secret of Supplier, including any and all technical or business information. including its documentation, specifications and design information for the Supplier Products, servicing information, customer lists, pricing information, marketing information, policies, procedures and manuals regarding Supplier’s distributors or distribution channels, research and development and other proprietary matter relating to the Supplier Products or business of Supplier. Distributor will refrain from using the Confidential Information except to the extent necessary to exercise its rights or perform its obligations under this Agreement. Distributor will likewise restrict its disclosure of the Confidential Information to those who have a need to know such Confidential Information in order for Distributor to perform its obligations and enjoy its rights under this Agreement. Such persons will be informed of and will agree to the provisions of this Section and Distributor will remain responsible for any unauthorized use or disclosure of the Confidential Information by any of them. Upon termination of this Agreement (or earlier, upon request by Supplier), Distributor shall cease to use all Confidential Information and promptly return to Supplier (or destroy, upon request by Supplier) any documents (whether written or electronic) in its possession or under its control that constitutes Confidential Information. During the term of this Agreement and thereafter, neither Distributor, nor Distributor’s employees, independent contractors nor other agents shall (a) reverse engineer, decompile or otherwise disassemble the Supplier Products from the products themselves or from any other information made available to them, or (b) otherwise use any of the Confidential Information or Supplier provided training to support, maintain or otherwise service a third party’s products or services.

 

 
     

 

14. COMPLIANCE WITH LAWS.

 

In connection with its obligations under this Agreement, Distributor agrees to comply with all federal, state, local and foreign laws, constitutions, codes, statutes and ordinances of any governmental authority that may be applicable to Distributor, its activities under this Agreement or the Supplier Products, including all applicable export control laws and regulations. Distributor agrees to take all such further acts and execute all such further documents as Supplier reasonably may request in connection with such compliance.

 

15. PRODUCT WARRANTIES.

 

Supplier’s sole obligation under this warranty shall be to provide, at no charge to Distributor, replacement Products. Defective Products must be returned to Supplier (at Supplier’s cost) in order to receive warranty replacement and shall become Supplier’s property. Supplier must repair or replace product within 30 days of return, Distributor must follow the procedures established by Supplier from time to time.

 

b. Warranty of Good Title. Supplier agrees to indemnify Distributor from any liability to any third party for infringement of United States patents, copyrights, trademarks or trade secrets with respect to Supplier Products sold/licensed by Distributor pursuant to this Agreement. This obligation does not extend to any foreign patents, copyrights, trademarks, or trade secrets or to any Supplier Products manufactured or modified by Supplier to meet Distributor’s or a customer’s specifications. Supplier shall, at its option, be allowed sole and exclusive control over the defense, settlement and compromise of any claims of infringement. Supplier must be notified in writing by Distributor within 15 days of any third party claim which, if upheld, might result in a liability subject to indemnification under this Subsection. If the distribution of the Supplier Products is threatened by a claim of infringement, or is likely to be enjoined or liability for infringement is found, Supplier may, in its discretion and at its sole option: (i) procure for Distributor the right to continue distributing the Supplier Products; or (ii) modify the Supplier Products so as to make them non-infringing; or (iii) substitute non-infringing products; or (iv) refund the price paid by Distributor for the Supplier Products in its possession subject to their return by Distributor and terminate this Agreement with respect to the allegedly infringing products. THIS SUBSECTION STATES THE ENTIRE LIABILITY OF SUPPLIER WITH RESPECT TO INFRINGEMENT OF ANY PATENT, COPYRIGHT, TRADEMARK, TRADE SECRET OR OTHER INTELLECTUAL PROPERTY RIGHT BY ANY SUPPLIER PRODUCT.

 

 
     

 

c. Disclaimer. EXCEPT AS PROVIDED IN THIS SECTION, SUPPLIER MAKES NO OTHER WARRANTY, PROMISE OR OBLIGATION WITH RESPECT TO THE SUPPLIER PRODUCTS, THEIR USE, REPAIR OR PERFORMANCE. SUPPLIER DISCLAIMS ANY WARRANTY, PROMISE OR OBLIGATION THAT THE SUPPLIER PRODUCTS SHALL BE FIT FOR ANY PARTICULAR USE OR PURPOSE, REGARDLESS OF WHETHER SUCH USE OR PURPOSE IS MADE KNOWN TO SUPPLIER OR NOT. SUPPLIER DISCLAIMS ANY WARRANTY, PROMISE OR OBLIGATION THAT THE SUPPLIER PRODUCTS CONFORM TO ANY SAMPLES OR MODELS. SUPPLIER HEREBY DISCLAIMS ALL OTHER WARRANTIES, PROMISES AND OBLIGATIONS, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTIES, PROMISES AND OBLIGATIONS ARISING FROM A COURSE OF DEALING OR USAGE OF TRADE. THE WARRANTIES SET FORTH IN THIS SECTION ARE INTENDED SOLELY FOR THE BENEFIT OF DISTRIBUTOR. ALL CLAIMS UNDER THIS AGREEMENT SHALL BE MADE BY DISTRIBUTOR AND MAY NOT BE MADE BY DISTRIBUTOR’S CUSTOMERS.

 

d. Distributor’s Warranties. Distributor agrees, at its cost, to provide its customers with, at a minimum, substantially the same warranties as set forth in Subsection 17(a). Distributor will assume all costs involved in providing any additional warranties.

 

16. INSURANCE

 

Supplier shall, at its own cost and expense, purchase and maintain, continuously throughout the term hereof, the following insurance coverage, against damage or loss caused by Supplier or its employees, agents, or products:

a. Commercial General Liability in no less than $1,000,000 per occurrence and $3,000,000 aggregate limit for Bodily injury and Property Damage.

 

b. Certificates evidencing all insurance required under this paragraph shall be provided to Distributor within ten (10) days after, the execution of this Agreement and at any time thereafter upon request of Distributor. All policies shall be endorsed to provide that they may not be terminated or canceled except upon thirty (30) days prior written notice by the insurer to Distributor. Supplier must provide proof of such coverage to Distributor in the form of a certificate evidencing insurance coverage and showing Distributor as an additional insured.

 

17. INSPECTION OF RECORDS.

 

Distributor shall keep accurate records of all its activities as reasonably necessary to determine its compliance with the terms and conditions of this Agreement, including accounting records, customer sales records and governmental filings. Distributor shall retain such records for at least a 3-year period following their creation or preparation. During the term of this Agreement and for a period of 18 months thereafter, Supplier shall have the right to inspect and audit such records.

 

 
     

 

18. TERM AND TERMINATION.

 

Unless earlier terminated as provided in this Agreement, the term of this Agreement shall commence upon delivery of State Certifications and shall remain in full force and effect for 3 years following the Effective Date. Either party may terminate this Agreement as follows: (a) Immediately upon 30 days’ prior notice with cause; (b) Immediately, for any breach or default of this Agreement by the other party which has not been cured within 10 days after the delivery of notice thereof to the party alleged to be in breach, specifying with particularity the condition, act, omission or course of conduct asserted to constitute such breach or default; (c) Immediately, upon the dissolution, insolvency or any adjudication in bankruptcy of, or any assignment for the benefit of creditors by, the other party or if the other party ceases to conduct business in the ordinary or normal course; (d) Immediately, if required by law or by any rule, regulation, order, decree, judgment or other governmental act of any governmental authority; or (e) Immediately by Supplier if Supplier reasonably suspects that Distributor breached any of its obligations of confidentiality or protection of Supplier’s proprietary rights. This Agreement shall automatically renew for five (2) years unless either party, with or without cause, gives written notice to the other of its intent not to renew no later than thirty (30) calendar days prior to the expiration of the current term.

 

19. EFFECT OF TERMINATION.

 

Upon notice of termination of this Agreement for any reason, the following provisions shall apply: (a) Supplier shall have the right to immediately appoint another distributor to serve existing customers and continue sales efforts in the Territory; (b) Supplier may continue to fill any orders from Distributor that have been accepted by Supplier prior to the termination of this Agreement under the terms and conditions of this Agreement; (c) All outstanding balances owed by Distributor to Supplier shall become immediately due and payable to Supplier; (d) Both parties shall at all times thereafter refrain from any conduct that would be inconsistent with or likely to cause confusion with respect to the nature of their business relationship; (e) All rights granted to Distributor under this Agreement shall cease, and where appropriate, revert to Supplier; and (f) Supplier, in its sole discretion, shall have the right, but shall in no way be obligated (unless otherwise required by law), to inspect and repurchase all or any quantity of the Supplier Products (including Supplier Products for demonstration and parts to service the Supplier Products) then owned or ordered by Distributor at the lesser of (i) the original price paid by Distributor for such Supplier Products, or (ii) at the then-current price to Distributor, and under both (i) or (ii), less any applicable restocking or refurbishing charge. Supplier shall have the right to assign such option to repurchase to any other person whom it may designate. No consideration or indemnity shall be payable to Distributor either for loss of profit, goodwill, customers or other like or unlike items, nor for advertising costs, costs of samples or supplies, termination of employees, employees’ salaries and other like or unlike items. In no event shall Distributor continue to represent itself as a Supplier distributor or representative after termination of this Agreement.

 

 
     

 

Supplier shall have no liability to Distributor by reason of any termination by Supplier. Distributor shall indemnify and hold harmless Supplier from and against any and all liability, loss, damages and costs (including reasonable attorneys’ fees) arising out of any claim by Distributor or any third party standing in the right of Distributor to any right of entitlement contrary to the express terms of this Section.

 

20. INDEMNIFICATION.

 

Distributor agrees to indemnify and hold Supplier harmless from any and all actions, awards, claims, losses, damages, costs and expenses (including reasonable attorneys’ fees) attributable to Distributor’s breach of this Agreement or to any negligent, grossly negligent, willful or unlawful acts or omissions of Distributor, its employees, officers, agents, subcontractors, dealers or representatives.

 

21. RELATIONSHIP OF THE PARTIES.

 

Distributor is an independent contractor and not an employee, agent, affiliate, partner or joint venture with or of Supplier. Neither Distributor nor Supplier shall have any right to enter into any contracts or commitments in the name of, or on behalf of the other or to bind the other in any respect whatsoever, except insofar as is allowed by this Agreement.

 

22. FORCE MAJEURE.

 

Neither party shall be liable in the event that its performance of this Agreement is prevented, or rendered so difficult or expensive as to be commercially impracticable, by reason of an Act of God, labor dispute, unavailability of transportation, goods or services, governmental restrictions or actions, war (declared or undeclared) or other hostilities, or by any other event, condition or cause which is not foreseeable on the Effective Date and is beyond the reasonable control of the party. It is expressly agreed that any failure of the United States Government to issue a required license for the export of any Supplier Product ordered by Distributor shall constitute an event of force majeure. In the event of non-performance or delay in performance attributable to any such causes, the period allowed for performance of the applicable obligation under this Agreement will be extended for a period equal to the period of the delay. However, the party so delayed shall use its best efforts, without obligation to expend substantial amounts not otherwise required under this Agreement, to remove or overcome the cause of delay. In the event that the performance of a party is delayed for more than 6 months, the other party shall have the right, which shall be exercisable for so long as the cause of such delay shall continue to exist, to terminate this Agreement without liability for such termination.

 

 
     

 

23. LIMITATION OF LIABILITY.

 

SUPPLIER SHALL IN NO EVENT BE LIABLE FOR ANY INDIRECT, SPECIAL, EXEMPLARY, INCIDENTAL OR CONSEQUENTIAL LOSS OR DAMAGE OR FOR ANY LOST PROFITS, LOST SAVINGS OR LOSS OF REVENUES SUFFERED BY DISTRIBUTOR ARISING FROM OR IN ANY WAY CONNECTED WITH THIS AGREEMENT OR THE SALE, DISTRIBUTION OR USE OF SUPPLIER PRODUCTS. DISTRIBUTOR SHALL INDEMNIFY SUPPLIER AND HOLD IT HARMLESS FROM ANY CLAIMS, DEMANDS, LIABILITIES, SUIT OR EXPENSES OF ANY KIND ARISING OUT OF THE SALE, SUBLICENSE OR USE OF SUPPLIER PRODUCTS IN THE TERRITORY OR BY DISTRIBUTOR’S CUSTOMERS. THIS SECTION SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT FOR ANY REASON.

 

24. GOVERNING LAW.

 

This Agreement shall be governed in all respect by the laws of the State of Arizona, USA, which shall be applied without reference to any conflict-of-laws rule under which different law might otherwise be applicable. The United Nations Convention on Contracts for the International Sale of Goods shall not apply to any purchases or transactions entered into pursuant to this Agreement. Venue for any lawsuits brought by the parties to this Agreement against each other regarding or as a result of this Agreement shall be proper only in an appropriate Arizona State Court or the United States District Court for the District of Arizona. Distributor hereby submits itself to the exclusive jurisdiction of said courts and consents to service of process by confirmed facsimile transmission or commercial courier (with written verification of receipt returned to the sender).

 

25. ASSIGNMENT AND DELEGATION.

 

Distributor shall have no right to assign any of its rights or delegate its obligations under this Agreement without the prior written consent of Supplier. Any assignment or delegation attempted without such written consent shall be void and of no legal effect whatsoever. This Agreement shall be binding upon the parties’ respective successors and permitted assigns.

 

26. SEVERABILITY.

 

In the event that any provision of this Agreement shall be unenforceable or invalid under any applicable law or be so held by applicable court or arbitration decision, such unenforceability or invalidity shall not render this Agreement unenforceable or invalid as a whole, and, in such event, such provisions shall be changed and interpreted so as to best accomplish the objectives of such unenforceable or invalid provision within the limits of applicable law or applicable court or arbitration decision.

 

 
     

 

27. CONSTRUCTION.

 

The headings or titles preceding the text of the Sections and Subsections are inserted solely for convenience of reference, and shall not constitute a part of this Agreement, nor shall they affect the meaning, construction or effect of this Agreement. Both parties have participated in the negotiation and drafting of this Agreement. This Agreement is executed in the English language and may be translated into another language for informational purposes only. In the event an ambiguity or question of intent or interpretation arises, the English version of this Agreement shall prevail and this Agreement shall be construed as if drafted by both of the parties and no presumption or burden of proof shall arise favoring or disfavoring either party by virtue of the authorship of any of the provisions of this Agreement.

 

28. NOTICE.

 

Any notice, consent or other communication required or permitted under this Agreement shall be written in English and shall be deemed given when (a) delivered personally; (b) sent by confirmed facsimile transmission; or (c) sent by commercial courier with written verification of receipt returned to the sender. Notice, consent or other communications (but not service of process) may also be given by e-mail. Rejection or other refusal to accept or the inability to deliver because of changed address or facsimile number of which no notice was given shall be deemed to constitute receipt of the notice, consent or communication sent. Names, addresses and facsimile numbers for notices (unless and until written notice of other names, addresses and facsimile numbers are provided by either or both parties) are provided below.

 

If to Distributor:

Company________________________________________

Attention: Jay Lopez

Address:_________________________________________

 

If to Supplier:

Blow & Drive Interlock Corporation

Attention: Laurence Wainer

137 South Robertson Blvd, Suite 129,

Beverly Hills, CA 90211

 

 
     

 

29. ENTIRE AGREEMENT; MODIFICATIONS; NO WAIVER; COUNTERPARTS AND SURVIVAL.

 

This Agreement and the Exhibit attached hereto (which is specifically incorporated herein by this reference) contain the full and entire agreement between the parties with respect to the subject matter hereof. It supersedes all prior negotiations, representations and proposals, written or otherwise, relating to its subject matter. Any modifications, revisions or amendments to this Agreement must be set forth in a writing signed by authorized representatives of both parties. Distributor acknowledges and agrees that any failure on the part of Supplier to enforce at any time or for any period of time, any of the provisions of this Agreement shall not be deemed or construed to be a waiver of such provisions or of the right of Supplier thereafter to enforce each and every provision. This Agreement may be made in several counterparts, each of which shall be deemed an original. The provisions of this Agreement that, by express terms of this Agreement, will not be fully performed during the term of this Agreement, shall survive the termination of this Agreement to the extent applicable.

 

IN WITNESS WHEREOF the parties have caused this Exclusive Distribution Agreement to be executed and delivered by their duly authorized representatives.

 

(___________________), LLC

 

   
Jay Lopez  
Owner  

 

Blow & Drive Interlock Corporation (and any of its subsidiaries)

 

   
Laurence Wainer  
C.E.O  

 

 
     

 

INDEPENDENT CONTRACTOR AGREEMENT

 

This INDEPENDENT CONTRACTOR AGREEMENT (the “Agreement”) is by and between Laurence Wainer (the “Executive”), and Blow & Drive Interlock Corporation, a Delaware corporation (the “Company”), effective the 11 th day of September, 2015 (the “Effective Date).

 

WHEREAS , Executive has years of experience in the interlock industry; and,

 

WHEREAS, the Company wishes to contract with Executive for the purpose of having him perform in the capacity of Chief Executive Officer (“CEO”) of the Company. The duties of the Executive, among others, shall include the performance of all of the duties typical of the office held, those described in the bylaws of the Company, and such other duties and projects as may be assigned by the Company or the Board of Directors, more fully described below.

 

NOW, THEREFORE , in consideration of the mutual promises, covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and Executive agree as follows:

 

1. Engagement

 

The Company hereby engages Executive to provide his services as its full time CEO. In this role he will be expected to lead the Company, primarily by (i) selling the Company’s products, (ii) obtaining any required state certifications for the Company’s products, (iii) overseeing the manufacturing of the Company’s products, and (iv) preparing and filing all necessary filings as a publicly-traded company. Collectively, the Executive’s duties are referred to herein as the “Services”).

 

2. Compensation

 

Compensation to Executive for the Services provided pursuant to this Agreement shall consist of the following:

 

A. Monthly Compensation. As compensation for the Services, the Company will provide remuneration of $4,000 per month to Executive (the “Compensation”).

 

3. Term of Engagement.

 

This Agreement shall have an initial term of one (1) year (the “Term of Services”) and, at the end of this period will automatically be renewed for a further one (1) year period which will roll over each year thereafter, unless terminated by the Company or the Executive in accordance with this Agreement. Notwithstanding this Term of Services, this Agreement may be terminated pursuant to Section 7, below (the “Service Termination Date”).

 

4. Indemnification

 

Executive shall not be liable to the Company or any of its shareholders, and the Company shall indemnify and hold Executive harmless from and against all demands, claims, actions, losses, damages, liabilities, costs and expenses, including without limitation, interest, penalties and attorneys’ fees and expenses asserted against or imposed or incurred by him, and to pay related attorney’s fees incurred by Executive by reason of or resulting from litigation to which Executive is named a party defendant relating in any way to any action by Executive, or omission, in the course of or connected with rendering the Services, including but not limited to losses that may be sustained in any corporate act undertaken by the Company as a result of advice provided by Executive (“Indemnification”). This covenant is provided by the Company as an inducement for Executive to enter into this Agreement. Excluded from Indemnification under this Agreement are actions, litigation or otherwise, brought against the Executive the basis of which is the Executive’s willful acts or omissions or breach of the Executive’s fiduciary duty or fraud, or such other action that may be against public policy for the Company to waive, release or indemnify against.

 

 
 

 

5. Costs and Expenses

 

All third party and out-of-pocket expenses incurred by Executive in the performance of the Services shall be paid by the Company, or if paid by Executive on behalf of the Company then reimbursed by the Company. Reimbursement of costs and expenses shall be made within ten (10) days of receipt by the Company of Executive’s written request for reimbursement; provided , however , that the Company must approve in advance all such expenses in the aggregate in excess of $1,000 in any one (1) month. All expenses claims must follow the Company’s policies and procedures for Expenses a copy of which has been provided to the Executive.

 

6. Place of Services

 

Unless otherwise mutually agreed by Executive and the Company, the Services provided by Executive hereunder will be performed at the offices of the Company or its respective subsidiary, or, at such other location as may be required, in the Company’s sole discretion, to perform the Services.

 

7. Termination

 

This Agreement will terminate as described in Section 3, above, or upon the earlier of (a) receipt by Executive of written notice by the Company to Executive to terminate this Agreement for Cause, (b) thirty (30) days following receipt by Executive of written notice by the Company to Executive to terminate this Agreement without Cause, or (c) thirty (30) days following receipt by the Company of written notice by Executive to terminate this Agreement, for any reason. For the purpose of this Agreement the term “Cause” shall mean:

 

A) As to Executive:

 

i) Executive is unable to provide the Services as set forth herein for thirty (30) consecutive business days because of illness, accident, or other incapacity;

 

ii) Executive willfully breaches or neglects the duties reasonably requested by a majority of the members of the Company’s Board of Directors; or

 

iii) Executive breaches a material term of this Agreement; or

 

iv) Executive files a petition in a court of bankruptcy, or is adjudicated a bankrupt; or,

 

 
 

 

v) Executive is convicted of or enters a plea of guilty or nolo contendere to a felony or misdemeanor involving fraud, embezzlement, theft or dishonesty or other criminal conduct.

 

B) As to the Company:

 

i) If the Company breaches this Agreement or fails to make any payments to Executive of the Compensation as set forth in Section 2, unless expressly agreed to by the Executive; or

 

ii) If the Company ceases business, or

 

iii) At the option of the Executive, if the Company sells a controlling interest to a third party, or agree to a consolidation or merger of itself with or into another corporation, or sells substantially all of its assets to another corporation, entity or individual; or

 

iv) If the Company has a receiver appointed for its business or assets, or otherwise becomes insolvent or unable to timely satisfy its obligations in the ordinary course of business, or if either the Company makes a general assignment for the benefit of creditors, has instituted against it any bankruptcy proceeding for reorganization for rearrangement of its financial affairs, files a petition in a court of bankruptcy, or is adjudicated a bankrupt; or

 

v) If any of the disclosures made by the Company herein, or subsequent hereto, are determined to be materially false or misleading.

 

In the event this Agreement is terminated prior to the expiration of the Term of Service by the Company:

 

For Cause, the Company agrees to pay all remuneration owed to Executive through the date of termination and to pay all expenses due. .

 

Without Cause, the Company agrees to pay in cash the balance of the term of the Agreement, without any renewal periods, which shall be a maximum of 3 years compensation and a minimum of 1 year.

 

In the event this Agreement is terminated prior to the expiration of the Term of Services by the Executive, the Company agrees to pay all remuneration owed to Executive through the date of termination and to pay all expenses due.

 

8. Confidentiality and Covenant Not to Compete.

 

A) Executive acknowledges that the Company has developed and/or is developing a unique and successful business of which the name, customers, goodwill, and methods of doing business are valuable assets, and also that the Company at times does business with certain entities whose name and scope of work are confidential. In the course of Executive carrying out his obligations under this Agreement, Executive will have access to the Company’s confidential information, including, but not limited to, trade secrets, financial information, customer lists, marketing methods, data, properties, personnel and internal affairs, relating to the Company’s business and customers (the “Confidential Information”).

 

 
 

 

B) Executive will not, during the term of this Agreement, communicate or divulge to any of the Company’s competitor’s any information or knowledge concerning the Company and any information, including but not limited to client lists, communication techniques, invoicing, billing, schematics, hardware and software designs and prototypes which may be communicated to Executive by the Company during the term of this Agreement.

 

C) Executive covenants and agrees that during the term of this Agreement he will not do any act or fail to do any act which may be prejudicial or injurious to the business and goodwill of the Company.

 

D) Executive shall not compete. During the term of this Agreement, other than with Company’s written consent, Executive will not directly or indirectly own, manage, control, participate in, lend his name to, act as consultant, or advisor to, or render services to (alone or in association with any other persons, firm, corporation or other business organization) any person or entity engaged in any business similar to or related in any way to the business be conducted by the Company.

 

9. Representations and Warranties of the Company

 

The Company represents and warrants to Executive that:

 

A) Corporate Existence . The Company is a corporation duly organized, validly existing, and in good standing under the laws of the state of Delaware, with power to own property and carry on its business as it is now being conducted.

 

B) No Conflict . This Agreement has been duly executed by the Company and the execution and performance of this Agreement will not violate, or result in a breach of, or constitute a default in any agreement, instrument, judgment, decree or order to which the Company is a party or to which the Company is subject, nor will such execution and performance constitute a violation or conflict of any fiduciary duty to which the Company is subject.

 

C) Full Disclosure . The information concerning the Company provided to Executive pursuant to this Agreement is, to the best of the Company’s knowledge and belief, complete and accurate in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact required to make the statements made, in light of the circumstances under which they were made, not misleading.

 

D) Date of Representations and Warranties . Each of the representations and warranties of the Company set forth in this Agreement is true and correct at and as of the date of execution of this Agreement.

 

 
 

 

10. Miscellaneous

 

A) Authority. Executive and those executing this Agreement on behalf of the Company represent that they are duly authorized to do so, and that each has taken all requisite action required by law or otherwise to properly allow such signatories to execute this Agreement.

 

B) Subsequent Events . Executive and the Company each agree to notify the other parties if, subsequent to the date of this Agreement, one of the parties incurs obligations which could compromise its efforts and obligations under this Agreement.

 

C) Amendment . This Agreement may be amended or modified at any time and in any manner only by an instrument in writing executed by the parties hereto.

 

D) Further Actions and Assurances . At any time and from time to time, each party hereto agrees, at its expense, to take such action and to execute and deliver documents as may be reasonably requested or necessary to effectuate the purposes of this Agreement.

 

E) Waiver . Any failure of any party to this Agreement to comply with any of its obligations, agreements, or conditions hereunder may be waived in writing by the party to whom such compliance is owed. The failure of any party to this Agreement to enforce at any time any of the provisions of this Agreement shall in no way be construed to be a waiver of any such provision or a waiver of the right of such party thereafter to enforce each and every such provision. No waiver of any breach of or non-compliance with this Agreement shall be held to be a waiver of any other or subsequent breach or non-compliance.

 

F) Assignment . Neither this Agreement nor any right created by it shall be assignable by any party hereto without the prior written consent of the other parties.

 

G) Notices . Any notice or other communication required or permitted by this Agreement must be in writing and shall be deemed to be properly given when delivered in person to an officer of the other party when deposited for transmittal by certified or registered mail, postage prepaid, or when sent by facsimile, “email” or other electronic transmission with proof of delivery, addressed as follows:

  

To the Company:   Blow & Drive Interlock Corporation
    1080 La Cienega Boulevard, Suite 304
    Los Angeles, California
    Attn. Laurence Wainer, CEO
    E-mail: [____________________]
    Fax: [_____________________]
     
To Executive:   Laurence Wainer
    [_________________________]
    [_________________________]
    [_________________________]
    Email:

 

 
 

 

or to such other person or address designated in writing subsequent to the date hereof by the Company or Executive to receive notices.

 

H) Headings . The sections and subsection headings in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.

 

I) Governing Law . This Agreement shall be governed by and construed in accordance with the laws of California, applicable to the performance and enforcement of contracts made within such state, without giving effect to the law of conflicts of laws applied thereby. In the event that any dispute shall occur between the parties arising out of or resulting from the construction, interpretation, enforcement or any other aspect of this Agreement, the parties hereby agree to accept the exclusive jurisdiction of the Courts of the County of Los Angeles. In the event either party shall be forced to bring any legal action to protect or defend its rights hereunder, then the prevailing party in such proceeding shall be entitled to reimbursement from the non-prevailing party of all fees, costs and other expenses (including, without limitation, the actual expenses of its attorneys) in bringing or defending against such action.

 

J) Termination of Any Prior Agreements . Effective the date hereof all rights of the Company and Executive related to any other agreement entered into between the Company and Executive prior to the Effective Date hereof, whether written or oral, is hereby terminated.

 

K) Time is of the Essence . Time is of the essence of this Agreement and of each and every provision hereof.

 

L) Binding Effect . This Agreement shall be binding upon the parties hereto and inure to the benefit of the parties, their respective heirs, administrators, executors, successors, and assigns.

 

M) Entire Agreement . This Agreement contains the entire agreement between the parties hereto and supersedes any and all prior agreements, arrangements, or understandings between the parties relating to the subject matter of this Agreement. No oral understandings, statements, promises, or inducements contrary to the terms of this Agreement exist. No representations, warranties, covenants, or conditions, express or implied, other than as set forth herein, have been made by any party.

 

N) Severability . If any part of this Agreement is deemed to be unenforceable the balance of the Agreement shall remain in full force and effect.

 

O) Counterparts: Facsimile . An original of this Agreement may be executed simultaneously in three or more executed facsimile, telecopy or other electronic reproductive counterparts, each of which shall be deemed an original, or facsimile, telecopy or other electronic reproductive counterparts, shall constitute one and the same instrument, and delivery of such shall be considered valid, binding and effective for all purposes. At the request of any party hereto, all parties agree to execute an original of this instrument as well as any facsimile, telecopy or other reproduction hereof.

 

 
 

 

P) Independent Contractor Status . Executive understands that as an independent contractor he is not entitled to unemployment compensation from Company upon termination of this Agreement. Executive understands that in the event of injury or death to him/her during the course of this Agreement, he is not entitled to Workman’s Compensation from Company unless Executive has arranged to be covered by such insurance. Executive also understands that NO DEDUCTION FOR FEDERAL, STATE OR OTHER GOVERNMENTAL SUBDIVISION TAXES OR CHARGES OF ANY TYPE WILL BE MADE FROM THE AMOUNT DUE EXECUTIVE UNDER THE TERMS OF THIS AGREEMENT. EXECUTIVE FULLY AND COMPLETELY UNDERSTANDS THAT HE IS SOLELY AND TOTALLY RESPONSIBLE FOR THE PAYMENT OF ALL SUCH TAXES OR CHARGES. At the end of each calendar year, Executive shall receive a Form 1099 notifying the Internal Revenue Service of all compensation paid to Executive by Company.

 

IN WITNESS WHEREOF, the parties have executed this Agreement effective the date first written above.

 

“Company”

 

Blow & Drive Interlock Corporation

 

By:    
Name:    
Title:    

 

“Executive”

 

Laurence Wainer

   
Laurence Wainer