June 20, 2009 - News update - where are they now?

Pete Sumaruck opens his factory on June 22, 2009, for the production of his small demonstration/display power production units. These will allow buyers access to the secrets of his design while keeping the size and price down - appropriate for buyer business development. Listen to his radio interview where he tells all: http://www.blogtalkradio.com/WaterFuelMuseum/2009/06/20/Peter-Sumaruck

Where is Orion/AERO? Who knows. The agreed time period has long since lapsed for Orion/AERO to pick up the working prototype of the small unit they requested - thus dissolving their contractual agreement of cooperation. Curiously, when offered the real thing - a prototype displaying a closed loop system, operating at 100% efficiency -their interest faded. One wonders why all their insistence, and all their excessive demands.

President Obama's monologue to the attendees of the Radio and Television Correspondents Dinner in WAS DC June 19 was very funny, as was required - he has good timing, pauses, studies his audience.

I will try to emulate - Along with Orion/AERO, another group expressed initial interest in aligning themselves with Pete, thus procuring his technology. The duo included Sterling Allen - founder of PESwiki, and the New Energy Congress, and James P. "Jim" Dunn, retired from the NSA and self-acknowledged patron of new energy - per his profile. 

It seems Mr. Dunn has changed his mind about "new energy." In May, he resigned his membership in the NE Congress, telling others he wanted to go back to supporting traditional types of energy (like nuclear)...and the most curious mention of all. Someone submitted to me an item of spanmail that squeezed through his filter - the proverbial financial offering from Nigeria.

The letter begins: "From the Desk of the President African Development Bank (WWW.AFDB.ORG), No 12 Timubu Square Lagos-Nigeria (written exactly as shown)...I am Mr. James Dunn, the President of the African Development Bank." The letter continues to offer the customary windfall profits deal to make you rich...if you offer all your vitals.

Is this where Jim went after retirement, one can only wonder.    

Contract of Cooperation Between Peter Sumaruck and Advanced Energy Research Organization (known as AERO) and The Orion Project 

Peter Paul Sumaruck, the inventor of Zero-Amp Technology wants to make certain printed text available for public analysis, concerning his working arrangement with The Orion Project and Advanced Energy Research Organization, known as AERO.

In the following pages, you will be able to view the actual complete text of the contract Pete Sumaruck signed on November 26, 2008, as his agreement with Orion/AERO. This will be compared in part to AERO’s “Strategic Overview,” describing how they help inventors - their raison d’etre. You can read the Overview at: http://www.aero2012,com/en/strategy.html

Mr. Sumaruck acknowledges he was remiss in carefully ascertaining that certain details of the contract were omitted - the Steve Greer Team, acting as principals for Orion/AERO were each so enthusiastic, so confident, so reassuring, and so convincing that Pete was also convinced.

But Pete is the inventor, his mind is on creating, problem solving, building - that is his job. Let’s let Pete do his job.

Time to get clear on the participants in this cautionary tale - the scene is the living room. There is Pete; you can see his picture on various videos of him giving demonstrations of his power producing system likehttp://video.google.com/videosearch?q=pete+sumaruck&emb=0&aq=f# ... Renate, Pete's sister was also present. For pictures of the Greer team, go to http://www.theorionproject.org/en/about.html. - you see the three principals of the company, Steven Greer, MD, formerly an emergency physician, now President and CEO of AERO. Next is Theodore (Ted) Loder, Ph.D (earth sciences and oceanography, and UFO researcher); he came to the demonstrations but was not present in the living room scene. Recently retired ER physician, Jan Bravo, was present, as was Bill Costantino (chemical engineer and energy researcher) - the one who drew up the contract.

Note that no one on the Greer team has any extensive background in business management, or marketing - no MBAs in the group (not to imply this is necessary for success, but exceedingly helpful).

As they all gather in the living room, talk revolves around how wonderful this collaboration will prove to be - much enthusiasm from all concerned. Just as any good movie requires filming, a video camera records the entire proceedings, covering all three hours plus, of this historic meeting: to include Bill saying to Pete, “tell me word for word how you want it [the contract] to read.”

Just today, Don Gatti, Pete's business partner, told me when they were working on the contract, he looked over Bill's shoulder to watch what was being written, but Jan called to him, dragging him away with a distraction..."I never trusted those people."

Discussion goes on, and the video shows everyone’s consensus…while Bill puts the contract (presumably using a fill-in template) in his computer, then prints the contract, which Peter Sumaruck signs.

A key aspect of the pre-signing of the contract is AERO’s promise of a $300,000.00 signing bonus, to be immediately given to Mr. Sumaruck at the time of signing. That signing bonus was to be a promise of good faith on AERO’s part - and yes, the bonus did arrive at the time of signing. This was discussed thoroughly by the principals, but not included in the contract - a very strange omission.

No one mentioned that Mr. Sumaruck’s prototype building expenses would have to come out of his bonus, that he was expected to pay taxes on it...and that if he didn’t like how they were treating him, he could return the bonus. All this should have been in the contract.

Of course, to build a 12kW unit, there would be big expenses - the generator itself, plus everything to go with it. The unit would belong to AERO; Pete should not have had to absorb the production expenses. When AERO became irritable, he decided to just be a nice guy, be amiable and pay those costs…but a tax bill presented to him by AERO, oh no; that’s going too far - this was a signing bonus. And there were criticisms of how he was spending his money…but the bonus was his money. These are all elements of AERO trying to control Pete.

Commentary note: Refer to

http://www.aero2012.com/en/strategy.htlm This section of AERO’s website delineates the harm that can befall an inventor - this is what AERO claims other companies or the U.S. government is likely to do to inventors. Go into the sub-section of “Categories of Suppression” to the bullet beginning “Systematic interception…”

“Systematic interception of funds and essential financial support needed to develop and put into mass application such a fundamental new energy source.” This is what AERO warns could happen to inventors, when they are trying to make it on their own, and not under AERO‘s protection. But this is what they did to Pete. He signed with them so he could concentrate on doing his job - invent. But no - now they start, taking his money…and not with subtle or diplomatic words.

This was the beginning of the harassment.

The video, made of the 3 hour plus contract signing, remains secure in Mr. Sumaruck’s safe deposit box. Also, there is a video filmed in the garage, of Bill Costantino telling Pete that Orion/AERO wants him to build the new prototype to incorporate a battery. Ted Loder is there as well as Norm (another research volunteer). Bill and Pete go back and forth on this, over and over. Just today, Pete said to me, "I told all of them I didn't want any F...ing batteries in this garage, I wouldn't have it, but Ted said, 'We gave you $300,000.00 and we intend to get what we want.'" 

When Pete was giving his garage demonstration, he used a minute amount of gasoline for ignition input on a tiny wire; output powered 5 motors from one input. "But they (AERO) had to have batteries and an inverter, powering two motors and getting out only half the power from what I got before." Plus there are other ways to get ignition - it doesn't need to be batteries. Pete believes they aren’t necessary …But AERO insisted, and won.

This is the reason for the announcement of February 22 - to give public notice that Pete Sumaruck is not in favor of using, and does not need to use a battery in his power producing systems.

When you view the newest prototype video at

http://ww.youtube.com/watch?v=XPsnbhHV_zs, note the batteries; that was what AERO wanted, and it is small enough to fit in Dr. Steve’s Learjet (also a prerequisite). Pete had planned to build a 12 kW generator for AERO; he bought all the parts - AERO was thrilled until they realized how large it would be. AERO also requested that the unit be something that could power a home appliance. Ergo the cooling fan and drop light in the video.

One of the reasons for printing the text of the Sumaruck/AERO contract comes from the insistence of Orion/AERO that Mr. Sumaruck broke various terms of the contract. In the tradition of “good cop/bad cop”, Dr. Steve sits back, reserved and in place, while Jan is sent out into the field as the enforcer.

Pete had been residing in Northern California for several years. After the contract signing, Pete had planned to build his prototype in California but each time he tried to order/purchase parts and supplies from his usual sources, most primary items were not available. Also, AERO said they would provide security for Pete and did so by sending a person who is a great guy and a volunteer in emerging energy technologies, but he does not carry a weapon, as say, a retired police officer might do while working as a professional body guard. Moral support is a good thing but a man in possession of breakthrough advanced technology needs strong-arm.

With these issues in mind, Pete decided he would move to Texas to build the prototype where he believed he could get his supplies (he had built his prototype for the government in Texas in 2004), and where he had a cadre of former Navy Seals for protection.

Jan tried to convince Pete not to go - AERO would supply Black Op people in California and in Virginia; she told him they didn’t have anyone in Texas. You can’t tell me that if there are Seal-people in Texas, there aren’t Black Ops available from Dallas, Houston and Austin - that’s just not believable.

Jan goes into a rage - she claims Pete is breaking the terms of the contract. Couldn’t he move to Virginia where the Orion site was - they have retired CIA who volunteer for them. Pete said he trained in Virginia and “it’s full of spooks,” - not interested. Pete goes to Texas and proceeds to gather the supplies he needs. He comes back to California for Christmas - Jan goes on, “why would he have to do that, spend time, spend money?”

Jan was still living in California, and soon to retire from her ER position to devote her entire time to Orion/AERO. I live in California; I speak to her by phone - let’s meet for lunch. A good opportunity to meet one of the Orion people and establish good will…so we did, sort of.

Jan starts in on how Pete had broken the contract; she leaned into my face, “You should read the contract, get the contract from him; you read it; you‘ll see.” I'm thinking, he‘s there and I’m here…and I’m the publicist; I didn‘t want to intrude. Now in present time, my thought is, maybe they are building a case not to pay him.

Jan goes on to say that the company did not want me not to write any more articles about Pete, saying this would be a very dangerous time for him - potential rogue miscreants trying to steal his technology (did I just go to the movies yesterday to see “Duplicity”). I tell her I believe the best way to insure Pete’s safety is to tell as many people as possible about him and his breakthrough tech - that was what I had been doing before the contract signing, and I am convinced image building is essential.

Then she starts to reach for a large briefcase. “I have a form here. I want you to sign a nondisclosure agreement…Pete signed one; he would want you to do this; it will protect him, protect you.”

I wince, hesitate a moment, “Oh, I don’t think I want to do that.” She quickly retreats, “Oh…well, you don’t have to do it right now,” papers back into her briefcase. I am so glad I didn’t sign it; if I had, I wouldn’t be able to tell you about this, right now.

Both Bill and Jan continue to harass (yes, truly harass) Pete about Texas, again and again. Coupled with “Are you near completion; when will you be finished? day in day out, no kind words of encouragement, only contentions of him breaking the terms of the contract.

At the same time, he says AERO broke the contract time and again for what they left out of the contract.

Like how there were no assurances that AERO would actually go into production within any believable timeframe.

For the 12kW and a larger unit, 65 kW, the Ohio manufacturer has gone out of business. Jan says AERO cannot help him find a new source. Pete is resourceful; he finds what he needs from a previous manufacturer. Pete needs a doctor. Both Steve and Jan are physicians; they could find a professional courtesy referral for Pete - it happens all the time with doctors. NO, they would not help him.

AERO has stopped being charismatic, sincere and loving.

We are coming to it…where you will be able to read the contract yourself.

With the proverbial low and behold…there is nothing - I repeat, nothing - in the contract which states Peter Sumaruck must build the prototype in California, nor is there mention of building it in Virginia. There is nothing in the contract about how fast he must build it (though he is anxious for all this to take place in real-time, all of the project as fast as possible). All that anxious insistence for elements of control and threats, by AERO, of breaking the contract were unfounded.

Was it that both Bill and Jan had not read the contract - unlikely; Bill wrote it. Or did they believe that is how a “boss” should establish a position over an employee? …But Pete is not their employee; he is a genius talent and the man with the goods. It is apparent AERO people do not understand how to nurture an inventor.

Follow the text below to see what Orion/AERO promises inventors, as well additional information of what they do not deliver. Pete Sumaruck wants the public to know all of this, in hopes that this illumination will help fledgling inventors, as they move among the roadblocks toward potential fruition - disclosure is always best. Even the AERO people must agree to the word “disclosure” - they have something called the “Disclosure Project.”

Theodore Loder, one of the three Orion principals, told Mr. Sumaruck on March 27, 2009, “You can’t do this [tell the public]; you signed a nondisclosure agreement.” Pete replied, “The nondisclosure didn’t include the contract.” So here it is in it’s entirety. Legalese is not always the most bracing literary expression [boring] so take special interest where you see “Commentary Notes.”

LICENSE AND TECHNOLOGY DEVELOPMENT AGREEMENT

This License and Technology Development Agreement (“Agreement”), with an Effective Date of November 26, 2008, is made between Peter Sumaruck with an address of 2704 Montgomery Avenue, Concord, CA (hereinafter PETE) and Advanced Energy Research Organization, LLC, a Delaware corporation, with its principal place of business at 7501 Batesville Road, Afton, Virginia 22920 (hereinafter AERO)

WHEREAS, AERO desires to acquire a perpetual license to investigate, patent on behalf of PETE, commercially develop, sell and distribute any and all technology derived from the Licenced Product, Patent Rights, and Technology Rights, or any inventions or discoveries derived from the technology described in Exhibit A. attached hereto, in all countries, territories, and jurisdictions on the terms an d conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties agree as follows:

Section1. Definitions. The Terms herein shall have the definitions assigned to this Section 1. And shall include the singular as well as the plural.

* 1.1 “Licensed Product” shall mean any product which cannot be developed, manufactured, used, or sold without utilizing Patent Rights or Technology Rights.

* 1.2 “Net sales” shall mean the gross revenues received by Corporation from the sublicense of the Licensed Product, Patent Rights, or Technology Rights or the sale of Licensed Products, Patent Rights, or Technology Rights less sales and/or use tax actually paid, import and export duties actually paid, outbound transportation prepaid or allowed, and amounts allowed or credited due to returns (not to exceed the original billing or invoice amount).

* 1.3 “Party (ies)” means the parties to this Agreement, name PETE and/or AERO. Unless otherwise specified in this Agreement, all references to AERO includes, without limitation, AERO’s Subsidiaries as defined in Section 1.6 below.

Commentary note: we are all contract-reading-impaired…No one noticed that Mr. Sumaruck’s company name of Zero-Amp Tech (incorporated in the State of California) is never mentioned in this contract. Nor was Mr. Sumaruck’s business partner, Donald Gatti, included in the contract - surely critical omissions. The question is, does this invalidate the contract? Was this contract notarized? I don’t see a seal on it. Perhaps the true question is, was there ever an actual contract?

* 1.4 “Patent Rights” means PETE’s rights and information or discoveries that are or may be the subject of a patent issued by any country as well as all applications and examinations or extensions or extensions thereof.

* 1.5 “Sale” or “Sold” shall mean the transfer or disposition of a Licensed Product for value to a party other than AERO.

* 1.6 “Subsidiary” shall mean a corporation, company, or other entity:

(a) more than fifty percent (50%) of whose outstanding shares or securities (representing the right to vote for the election of directors or other managing authority), by party hereto, or

(b) which does not have outstanding shares or securities, as my be the case in a partnership, limited liability company, joint venture, or unincorporated association, but more than fifty percent (50%) of whose ownership interest representing the right to make the decisions for such corporation, company or other entity is now or hereafter owned or controlled, directly or indirectly, by a party hereto, but such corporation, company, or other entity shall be deemed to be a Subsidiary only so long as such ownership or control exists.

* 1.7 “Technology Rights” means PETE”S rights in any technical information, know-how, process, procedure, composition, method, formula, protocol, technique, device or data developed by inventors, which may not be currently covered by Patent Rights, but which are necessary for the design, development, operation, or manufacture of the invention covered by the Assignment of Intellectual Property Agreement.

* 1.8 “Third Party(ies)” shall mean a party other than the Parties to this Agreement.

Section 2. License.

* 2.1 PETE grants AERO and its Subsidiaries a worldwide, exclusive perpetual license to commercially develop, sell and distribute any and all technology derived from the Licensed Product, Patents, Patent ights, Technology Rights containing or derived form the technology described in Exhibit A. In addition, AERO shall have in its sole and absolute discretion the right to sublicense the Licensed Product, Patent Rights and Technology Rights to Third Parties upon such conditions and subject to such restrictions as AERO shall determine.

Commentary note: At this time, there should have been a provision/surety that AERO would in fact begin the development process. Since Mr. Sumaruck’s technology is fully scalable, research time is unnecessary. If our country/world is suffering under the yoke of energy depletion and exploitation, it is Time (almost too late) for serious action.

Pete very much wants his technology to benefit the regular people of this country and the world. Note his final words of his most recent video http://www.youtube.com/watch?v=XPsnbhHV_zs

Oh yes, this caveat for the development process to begin should have been in the contract. He asked for it to be included.

Section 3. Royalties and Payments.

* 3.1 In consideration of the rights granted by PETE to AERO under this Agreement, AERO shall pay PETE a royalty equal to 3% of Net Sales for Licensed Products sold by AERO and protected by a valid claim included within a Patent or Patent Rights or of Net Sales for Licensed Products sold by AERO and covered by Technology Rights.

Commentary note: The issue of royalties may be more complicated since Orion/AERO have nonprofit status and they have voiced intention to offer an IPO when unit production begins.

* 3.2 It is understood by all parties that a working proof-of-principle prototype system is still under development. Terms of this license agreement come into effect once a working prototype unit has been developed and unanimously acknowledged as working by Pete and AERO.

Commentary note: The prototype Orion/AERO requested... has been ready for more than a month (all of March, plus April) but the buyers (AERO) have not wanted to come for a demonstration - very curious.

* 3.3 AERO agrees to pay Pete an interim technology transfer fee of $3 million. Upon payment, Pete agrees to provide immediate and full technology transfer to AERO personnel. This transfer will include:

a) personalized, comprehensive instruction by PETE to one or more AERO apprentices.

b) complete technical documentation and drawings of the technology.

Commentary note: At the time the contract was drawn, AERO principals told Mr. Sumaruck when the prototype was ready, they would come for a demonstration, verify the technology and at that time place a bank transfer to Mr. Sumaruck’s account for the initial $3 million dollars. The above 3.3 item is too vague - no time constraint…again “just not in the contract.”

Further commentary: Jan pays a visit to Pete’s construction site. She sees the larger generators, says they are “beautiful,” but was “thrilled” with the smaller presentation - easy to put in Steve’s plane; she would rather have the smaller format. It’s February, Ted Loader tells Pete it will take several months to put together the $3 million…these people do not have the money. You see the issue here is that in all truthfulness, they should never have promised they would. It is the promise - the many promises - that are deception and deceit.

* 3.4 Aero agrees to pay PETE a final technology transfer fee of $23 million. Upon payment, PETE agrees to assign AERO full and unrestricted patent rights to develop and apply the technology without restriction.

Commentary note, relating to the above Section 3.4: At the time of the contract discussion between the principals, Mr. Costantino said that the $23 million would come in 6 to 9 weeks after the agreed prototype was delivered. No mention is made in this contract of when the $23 million will arrive, (perhaps the year 2012, 2050?)

If they can’t pay the initial $3 million, how can anyone believe they will pay the additional $23.

* 3.3.1 Once a proven, reproducible and commercially viable prototype is obtained by AERO, PETE will be provided a $10,000 per month ($120,000 per year) contract fee to work with AERO in the further development of this technology. Such work to be conducted at a place of mutual agreement.

Commentary note, relating to the above Section - named 3.3.1 This is out of order in this contract, and since it is entirely different from 3.3, it should be designated 3.5. Also, take note that $120,000.00 a year for Mr. Sumaruck is slave labor remuneration.

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Commentary announcement - we are midway through this contract. At this point, I would like to address some statements AERO has published on their website. Click to follow along - http://www.aero2012.com/en/strategy.html which is a section titled Strategic Overview.

In the Introduction, AERO discusses how it is not the act of invention where the most difficult problems arise for the inventor. Referring to the invention and application of “Overunity” technology, AERO states, “…none (inventors) have made it through the maze of regulatory, patenting, rogue national security, financial, scientific and media barriers that confront the inventor or small company.”

How does this paragraph relate to Pete Sumaruck’s technology? Perhaps “none” of previous inventors have brought their overunity tech to fruition, but Mr. Sumaruck is here to change all that. He did it; he has it; you can see it happen, online or in an actual demonstration.

AERO faults, “rogue national security”; is that to imply a foreign power, or our own government…the DOE (Department of Energy), DOD (Department of Defense), the military in general, the Pentagon, NSA, CIA…does AERO believe the threat comes from within or perhaps from China, Russia, or Iran? What is the observable reality? Perhaps those three pesky countries don’t have to “do” anything to “us.” They can just sit back and watch the U.S. destroy or hobble itself.

The reason Mr. Sumaruck did not go with the first bid/buy offered him for his technology (from the Peswiki/Sterling Allen/Jim Dunn team) was that Jim Dunn was believed to be NSA. Pete, “But hey, with the troubles with AERO…this makes Jim Dunn look like a pussycat…but you know the NSA never did us (Seals) any harm, always had great intel - accurate, dependable.”

After the flurry of demonstration activity in the garage, Pete chose to go with AERO because they seemed so honest, not wheelers. Pete, “they were so charismatic, so sincere, loving…they went on about how, ‘we hate the government, the Pentagon’…Steve even stood there in the garage - face into camera, video running, he's surrounded by more than 20 people, telling about how the CIA murdered his partner and how they have to be stopped…those AERO people were very believable.”

Mr. Sumaruck turned down $500,000.00 (bonus went down to $300,000 when Sterling heard AERO was offering less), and an immediate payment (upon the completion of the prototype) of $26 million, with Sterling Allen/Jim Dunn because he believed his invention would be shelved, not put into production. Yes, I suppose you, the reader, may be saying that $26 million is not that much money - considering the potential for breakthrough technology - but Pete said/still says, “I don’t want to encourage the greed factor…I want people to benefit from my invention.”

A trivia mention here - the word is that our government has established a value amount for each and every human in this country to be $6 million (including babies and the elderly). That is were the magic number of $26 came from - average going rate per human as $6 million, plus Pete's additional worth as an inventor...now folks, the people you know, personally, are they a "6," a "5.5," or a "60?"

Speaking of the Pentagon, before he completed his presentation unit - remember, no $3 million initial payment yet - AERO suggested he and they take the unit to the Pentagon to give a demonstration. He was exceedingly skeptical - Pete used a lot of %?@*/&$% expletive Navy talk to express his disbelief that he and his invention would go in (he has been there many time), and then come out again…alive.

Now Pete believes, because of how AERO has treated him, that AERO’s quote about harmful situations for inventors is true for AERO. Also to be noted from the AERO site Introduction, they refer to an inventor working with a “small company,” as a negative…but look, AERO is a very small company. They were expecting Mr. Sumaruck’s invention to make them global - in the snap of a finger. His invention can make that happen, but can a company like AERO handle the tasks?

While still looking at the AERO website, continue to the next section, “Categories of Suppression.”

They list reasons for inventor failure, the first being, “Acquisition of the technology by ‘front’ companies whose intent have been to ‘shelve’ the invention and prevent the device from coming to market.”

Pete believes that is what is happening with AERO and his technology, “Probably the work of the Department of Energy,” he says. Not off base, remember the two Texas politicians who sabotaged his prototype for the Army in 2004 (see www.worldviewopinion.com, “The Secret Life of Energy”).

Pete is not paranoid; he is pragmatic, prudent and careful. AERO is a new company, incorporated in summer of 2007. But even if you go further back to when they were independently promoting inventors, they claim to have many successes. You should ask them? Not one they have backed has become successful, not even close-to. Pete asked Ted Loder about this. After hesitation, Ted replied that all the inventors always just tried to “screw us.” Humm, no successes among all those inventors - just by the law of numbers, someone must have made it if they got the right help.

The above is also connected to the section title “Implications of our Success.” You should read this; I encourage you, again to click on www.aero2012.com/en/strategy - no successes, plenty of suggestions …that’s what the word “Implication” means something implied or suggested.

At the end of the next section, “A Plan for Action,” for “Phase I,” AERO states, “This brief overview illustrates the depth and breadth of the minimum strategy needed to move these technologies forward - and overcome the significant hurdles that exist in the status quo. Such an undertaking requires careful orchestration of all strategic components with adequate funds to accomplish the task. The strategy cannot be dictated by the level of available funds. On the contrary, funding must be dictated by these strategic requirements, without which success is impossible. A detailed Phase I business plan is nearing completion.

Commentary note: Related to the above paragraph with sentences underlined, Orion/AERO at first appeared anxious for Mr. Sumaruck to accomplish the construction of the requested prototype. Then when the unit was completed it became clear that the $3 million would not be available in a timely manner.

Also, let it be noted that the “Phase I of the company business plan is nearing completion.” I would think that would be the first thing to be completed - a business plan.

On the AERO website, four days ago, there was a projected company budget available for public perusal. The heard we were going to publish the contract so they took some text off their site. But I do remember the most important items - $1300,000.00 in the first year for the 3 company principals…but nothing, nada, for compensation to any inventor. Inventors take note.

Mr. Sumaruck believes it is obvious that Orion/AERO is ill-prepared to handle an invention of this potential magnitude. Orion/AERO states to the public and to their followers that they have been searching for 18 years for a true overunity, closed looped power producing system. This was the grail, but “saying” isn’t “doing.” The actual world is built on deeds, on doing…not on empty words. Time again to visit http://www.youtube.com/watch?v=XPsnbhHV_xs for the proof of overunity.

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Back to the contact:

Section 4. Timing of Royalty Payments

* 4.1 AERO shall pay any royalty due PETE under this Agreement and said amounts to be paid quarterly, on or before the 30th day after January 1, April 1, July 1, and October 1 of each year or portion thereof, during which this agreement is in effect.

Section 5. Accruals, Records, Reports, and Other Information.

*5.1 With respect to royalty payments that are required by this Agreement, royalties shall accrue when AERO receives payment from Third Parties as a result of any sublicensed Product, Patent Right, or Technology Right or when a Licensed Product is first sold or otherwise transferred, or first used in each country of use, by or for AERO or any of its Subsidiaries. Each Licensed product, Patent Right or Technology Right shall be considered “sold” for purposes of determining net sales upon the date AERO receives full or partial payment for the sale or sublicense.

Commentary notes to the above 5.1: In the final line, it appears that payment might be based on the partial payment coming from a Third Party. 5.1 does not specify if a further royalty will be paid on the subsequent/final payment (s).

*5.2 AERO shall pay all royalties and make other payments due hereunder in U.S. Dollars (“U.S.D”). All royalties due for any quarter computed in other currencies shall be converted into U.S.D. at the exchange rate for bank transfers from such currency to U.S.D. as quoted by the head office of Citibank, N.A., New York, U.S.A., at the close of banking on the last day of such quarter (or the first business day thereafter if such last day is a non-business day). Unless otherwise notified, payment will be made by AERO’s check, payable to EST. AERO will forward Pete payment to the address listed in the first Paragraph of this Agreement.

* 5.3 AERO shall keep records in accordance with generally accepted accounting principles and in sufficient detail to permit the determination of royalties due to PETE. Such records shall be kept for five (5) years following the submission of the related report. PETE shall have the right to examine periodically, during ordinary business hours, sales records and materials of AERO for the purpose of verifying compliance with this Agreement. Prior to any such examination, PETE shall provide written notice to AERO that it intends to review a specified period and prior to any such examination, PETE shall execute AERO Nondisclosure Agreement to protect such information, which PETE may become privy, as a consequence of any said audit.

Section 6. Term of Agreement Termination.

* 6.1 This Agreement shall remain in full force and effect in perpetuity unless and until termination or cancellation is hereinafter provided.

* 6.2 AERO may terminate the license granted herein in whole or part by giving sixty (60) days’ written notice to PETE. Any such termination shall be irrevocable.

* 6.3 If AERO shall at any time default in rendering any of the payment of royalties due hereunder or in fulfilling any of the other material obligations hereof, and such default is not cured within thirty (30) days after written notice is received by AERO from PETE, PETE shall have the right to terminate this Agreement by giving written notice of termination to AERO. AERO shall have the right to cure any such default up to, but not after, the date that written notice of termination is received.

Commentary note on the above 6.3 - This is key, and applicable to the payment of the original/initial $3 million to be received by Mr. Sumaruck upon approval of the promised prototype. This also applies to the payment of the $23 million to be paid in 6 to 9 weeks after acceptance of the technology, and of course applies into the supposed future of the agreement between parties. Section 6.3 is actually rather amusing in certain aspects. If AERO were to go out of business, yes I guess that would terminate the contract …but leaving Mr. Sumaruck without recourse. If he accepts the initial $3 million, a trust could be set up to guarantee the payment of the subsequent $23 million.

* 6.4 No termination of this Agreement, or the license granted herein, shall relieve AERO of any obligation or liability accrued hereunder prior to such termination. Specifically, termination of this Agreement shall not terminate:

(a) AERO’s obligation to pay all royalties which then shall have accrued under this Agreement,

except as provided for in Section 10.2 of this Agreement;

Commentary note: Referring to the above, royalties should be paid in spite of AERO’s nonprofit status, and also to include if they leave the nonprofit status, and/or become a public company after an IPO. If AERO were to go public, then shares should be given to Mr. Sumaruck as would happen with any other start-up company and stock options.

(b) AERO’s obligation to allow PETE to inspect AERO’s books of account.

Commentary notes: There should have been a provision here that AERO must follow through with their product development of Pete’s technology in a timeframe agreeable to all parties…to assure that there would not be one delay after another, stalling, then shelving the tech (this was noted earlier on but also appropriate here). And that if AERO failed to comply in good faith, this would be grounds for contract termination.

Section 7. Representations and Warranties.

* 7.1 PETE represents and warrants that, to the best of his knowledge, after having made reasonable inquiry, the Licensed Product, Patent Rights and Technology Rights are free and clear of any lien, encumbrance, security interest, or restriction which would interfere with the license granted under this Agreement.

* 7.2 PETE represents and warrants that he has the full right and power to grant the license set forth in Section 2 of this Agreement, and has made no prior transfer, sale or transfer of any part of the licensed Product.

* 7.3 Pete represents and warrants that, to the best of his knowledge, the Licensed Product, Patent Rights and Technology Rights are free from infringement of any patent or proprietary rights of a Third Party.

* 7.4 PETE represents that he has not granted any licenses to use the Licensed Product, Patent Rights, and Technology Rights to any other parties.

* 7.5 PETE warrants that as of the date hereof he is not aware of any parties infringing on the Licensed Product, Patent Rights, and Technology Rights, transferred Licensed Product, Patent Rights, and Technology Rights, or trade secrets transferred hereunder.

* 7.6 PETE warrants that the Licensed Product, Patent Rights, and Technology Rights were not procured by the use of confidential information, trade secrets, or in any other respects in violation of law, and there is no action, order, or proceeding alleging any of the foregoing.

* 7.7 PETE warrants that AERO’s exercise of all rights granted under this Agreement shall not result in patent infringement, trade secret misappropriation, or violation of the proprietary rights of any Third Parties.

Section 8. Indemnification.

* 8.1 PETE shall indemnify and hold AERO harmless from and against any cost in the form of damages and reasonable legal fees resulting directly from any claims or actions for patent or trade secret infringement, or from any judgment entered therein, which may be brought against AERO for patent or trade secret infringement as a result of its activities under the license conferred in this Agreement with respect to the Licensed Product, Patent Rights, and Technology Rights. Each Party agrees to advise the other of any infringement of the Licensed Product, Patent Rights, and Technology Rights, or claims of infringement of the Licensed Product, Patent Rights, and Technology Rights, which may come to its attention.

* 8.2 AERO shall indemnify, defend and hold PETE harmless against and from any and all claims, demands, losses, costs, damages, suits, judgments, penalties, expenses, and liabilities of any kind or nature whatsoever including, but not limited to, the reasonable attorney’s fees that may be incurred by PETE arising directly or indirectly out of or in connection with the manufacture, sublicense or sale of the Licensed Product, by AERO, its agents, or assigns.

Comments at this point - Section 8 jumps directly to Section 12. It is unknown why that is.

Section 12. Miscellaneous.

* 12.1 AERO may assign or sublicense in whole or in part any or all of its rights under this Agreement provided that such assignee or sublicensee shall be required to fulfill all of the obligations pertaining to the protection of Licensed Products, Patent Rights or Technology Rights for the benefit of PETE as if such Third Party was a party thereto.

Commentary notes on Section 12.1 - This is key! This gives AERO permission to sell their entire rights to any group or corporate entity, e.g. the government of the United States or an unnamed foreign power without approval from Mr. Sumaruck. This has great potential danger…and brings the possibility that the entire project would be shelved or fall into the wrong hands. This would be inventor suppression of the highest order ( I rarely use an explanation mark, but this has 3) !!!

* 12.2 Notices: Notices and other communications shall be sent via facsimile or via registered or certified mail, return receipt requested, to the following address and shall be effective upon mailing:

For Peter Sumaruck: Mr. Sumaruck’s signature

2704 Montgomery Avenue

Concord, California 94519

*********

For AERO: AERO, LLC

7501 Batesville Road

Afton, VA 22920

Atten: Steven M. Greer, MD

* 12.3 Severability: If any section of this Agreement is found by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect for any reason, the validity, legality, and enforceability of any such section in any other respect and the remainder of this Agreement shall continue in effect so long as the Agreement still expresses the intent of the Parties. If the intent of the Parties, however, cannot be preserved, this Agreement either shall be renegotiated or shall be terminated.

* 12.4 Governing Law: This Agreement shall be interpreted and construed, and the legal relations between the parties to this Agreement shall be determined, in accordance with the laws of the Commonwealth of Virginia, USA, without regard to such jurisdiction’s conflict of laws rules.

Commentary note: I would have voted for the contract to be in accordance with the laws of the State of California.

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At the end of the contract please find... Exhibit A - Description of Technology.

Pete’s Generator technology is an energy generating devise that produces more output energy is usable, commercially viable power than is required to run the system. The technology is overunity (more outpup energy) and is commercially viable for producing conventional 120VAC electrical current suitable for use in homes, business and industry. The quality of electric power produced is typical of the existing grid and suitable for running typical home and commercial appliances such as televisions, lights, computers, vacuum cleaners, copiers, refrigerators, toasters, microwave ovens, etc. It involves unique circuitry, component design, etc…that result in this over unity effect and commercially viable power generation in the multi-kilo way range. It is self running and charging while running a load, with no added source for this energy. Any batteries, capacitors etc…are charged by the system while it continuously runs a load in the multi-kilowatt range.

Commentary note: this is exactly what AERO said they wanted and that is exactly what they get. Since Mr. Sumaruck’s power generating system is scalable and can be applied to a variety of needs - power a home cooling fan or an entire city (no batteries for the city)…but AERO wanted only a system to power a home appliance …Another one of the mysteries of life.

When Jan and I were having lunch, I told her I was writing a book about Pete. She was pleased, agreed it would be good publicity.

Caution - it’s going to some wild ride of a book.

A further commentary note: May we reiterate the original cautionary tale - Peter Paul Sumaruck wants to advise present and future inventors, “Be careful, don’t let this happen to you….Also, stay with it; if it’s right, you’ll make it.”

Questions to contemplate: Could it be Orion/AERO is a shadow company? Was the contract ever valid, no matter what it had in it - no signature from partner Donald Gatti and no notarization. And what of the contract - much was missing, but in that heady day of jubilation contract signing, no one noticed - an easy shoe in…hummm.

Thank goodness Pete is still Pete, and he still has his technology; he can still build his overunity power systems…that isn’t going to stop.

And in answer to the rumor making the rounds, Peter Paul Sumaruck is not dying. To paraphrase the famous quote, “The report of my death has been greatly exaggerated,” Mark Twain.