CONSULTING AGREEMENT
This CONSULTING AGREEMENT ("Agreement") is made and entered into in
duplicate on June 25, 2003 to become effective on August 1, 2003 ("Effective
Date"), by and between Aegis Assessments, Inc., a Delaware corporation
("Corporation"), and Xxxxx Xxxxx ("Consultant").
RECITALS
A. Consultant has significant experience and expertise in business
development and corporate financial matters, including but not limited to the
commercial exploitation of technology and software, the maintenance of corporate
financial and business records, the preparation of financial statements and pro
formas, and related business, accounting and bookkeeping experience. Pursuant to
a consulting agreement between the parties dated February 1, 2003 (the "Prior
Agreement"), the Corporation engaged the services of the Consultant to consult
with the Corporation regarding the preparation of the Corporation's financial
statements and pro formas, arranging credit lines and other financing sources,
and advising the Corporation on general bookkeeping and financial matters
through the period ending July 31, 2003.
B. In addition to those corporate financial services currently being
provided to the Corporation by the Consultant, the Corporation contemplates mass
production of its Aegis SafetyNet(TM) Mobile Command Post, EKHO radio bridge and
related products (collectively, the "Products"). The Corporation requires
assistance in sourcing components for the Products, selecting suppliers,
negotiating purchase agreements, and managing component inventory in order to
transition from prototype to initial production phases of the Products. The
Corporation also desires that certain business development and support services
be provided to the Corporation's existing and potential distributors and
customers in the State of Texas.
C. It is the desire of the Consultant to engage the Consultant for an
additional one year period to so consult with the Board of Directors of the
Corporation ("Board") and the officers of the Corporation and to provide the
Corporation with his expertise in business development, corporate financial
affairs and procurement practices.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES, COVENANTS AND
UNDERTAKINGS HEREIN SPECIFIED AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE
RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, WITH THE INTENT TO BE
OBLIGATED LEGALLY AND EQUITABLY, THE PARTIES AGREE AS FOLLOWS:
1. Term of Agreement. The respective duties and obligations of the
parties shall commence on the Effective Date and shall continue until and
terminate on July 31, 2004.
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2. Consultations. The Consultant shall consult with the Board and the
officers of the Corporation, at reasonable times, concerning any issue of
importance regarding the commercial exploitation of the Products, including but
not limited to business development, procurement and supply issues, and the
financial affairs of the Corporation. Consultant may, among other things:
|X| Assist the Corporation to develop and maintain procurement contracts and
programs
|X| Assist the Corporation to identify opportunities and/or problem areas in
procurement
|X| Assist in internal audits of contracts and purchase orders
|X| Assist the Corporation in defining capital budgetary needs for mass
production of the Products
|X| Target cost savings and cost avoidance
|X| prepare budgets for management
|X| prepare loan proposals and other financial documentation for bankers
|X| perform cost analysis for the Corporation's products and services
|X| prepare financial statements and pro formas
|X| provide business bookkeeping services
|X| act as a financial advisor and otherwise provide his expertise in financial
matters for the benefit of the Corporation.
Consultant shall also provide business development consulting and act as a
liaison to the Corporation's distributors, potential distributors and customers
in the State of Texas, when and as directed by the Board and the officers of the
Corporation.
3. No Management Power of Consultant. The business affairs of the
Corporation and the operation of the business of the Corporation shall be
conducted by the officers and administrative staff and employees of the
Corporation. The Consultant shall not have any power or obligation of direction,
management, supervision or control of the officers, administrative staff or
other employees of the Corporation or otherwise be involved with the management
of the business of the Corporation during the term of this Agreement.
4. Authority to Contract. The Consultant shall have no power to, and
the Consultant shall not, obligate the Corporation in any manner whatsoever to
any contract, agreement, undertaking, commitment or other obligation.
5. Compensation. In lieu of cash compensation, the Corporation shall
issue and deliver to Consultant 400,000 shares of the Corporation's common stock
as soon as practicable after the Effective Date. Thereafter, from time to time
during the term of this Agreement, and at the sole discretion of the Board, the
Corporation may issue additional tranches of common stock based on Consultant's
satisfactory performance of services hereunder, up to a maximum of an additional
200,000 shares during the term of this Agreement. Consultant shall make periodic
reports to the Board specifying the services performed for the Corporation by
the Consultant, and Consultant shall provide the Board with such documentation
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and information as is necessary for the Board to evaluate the Consultant's
performance of his obligations under this Agreement. The Corporation shall make
good faith efforts to register stock issued or to be issued to the Consultant
pursuant to this Agreement as soon as practicable after the Effective Date;
provided that the Corporation reserves the right to accelerate, delay or extend
the issuance of such tranches based on the Consultant's performance hereunder;
and further provided that the Corporation reserves the right to deregister any
stock contemplated by this Agreement which Consultant does not earn by
performance of his obligations under this Agreement.
6. Services of Consultant Not Exclusive. The Consultant shall devote
such time as is necessary to fulfill his obligations to the Corporation
specified in this Agreement. The Consultant may represent, perform services for,
and be employed by, any additional persons as the Consultant, in the
Consultant's sole discretion, determines to be necessary or appropriate;
provided, however, that such performance by Consultant does not interfere with
Consultant's performance of services to the Corporation specified in this
Agreement; and further provided that Consultant shall provide a minimum of 40
hours per week of service time to the Corporation.
7. Relationship Created. The Consultant is not an employee of the
Corporation for any purpose whatsoever, but is an independent contractor. The
Corporation is interested only in the results obtained by the Consultant. The
Consultant shall have the sole and exclusive control of the manner and means of
performing. Accordingly, and without limitation, the Corporation shall not have
the right to require the Consultant to collect accounts, investigate customer or
shareholder complaints, attend meetings, periodically report to the Corporation,
follow prescribed itineraries, keep records of business transacted, make
adjustments, conform to particular policies of the Corporation, or do anything
else outside of requiring the Consultant to consult with the Corporation as
specified in this Agreement. All expenses and disbursements, including, but not
limited to, those for travel and maintenance, entertainment, office, clerical
and general administrative expenses, that may be incurred by the Consultant in
connection with this Agreement shall be borne and paid wholly and completely by
the Consultant, and the Corporation shall not be in any way responsible or
liable therefor.
7.1 New Developments. Consultant agrees that all financial statements,
pro formas, bookkeeping documents and ledgers, financial reports and other
information or items produced by Consultant pursuant to this Agreement will be
assigned to the Corporation as the sole and exclusive property of the
Corporation and the Corporation's assigns, nominees and successors.
7.2 Non-Disclosure of Proprietary and Confidential Information By
Consultant. During the term of this Agreement, Consultant may have access to
Corporation Proprietary Information (as used in this Section 7.2 of this
Agreement, the term "Corporation Proprietary Information" shall mean and
include, without limitation, any and all marketing and sales data, plans and
strategies, financial projections, client lists, prospective client lists,
promotional ideas, data concerning the Corporation's services, designs, methods,
inventions, improvements, discoveries, designs whether or not patentable,
"know-how", training and sales techniques, and any other information of a
similar nature disclosed to Consultant or otherwise made known to Consultant as
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a consequence of or through this Agreement during the term hereof. The term
Corporation Proprietary Information shall not include any information that (i)
at the time of the disclosure or thereafter is or becomes generally available to
and known by the public, other than as a result of a disclosure by Consultant or
any agent or representative of Consultant in violation of this Agreement, or
(ii) was available to Consultant on a non-confidential basis from a source other
than the Corporation, or any of the Corporation's officers, directors,
employees, agents or other representatives) or other information and data of a
secret and proprietary nature which the Corporation desires to keep
confidential. Consultant (and any of his affiliates, related entities, partners,
agents and/or employees) agrees and acknowledges that the Corporation has
exclusive proprietary rights to all Corporation Proprietary Information, and
Consultant hereby assigns to the Corporation all rights that he might otherwise
possess in any Corporation Proprietary Information. Except as required in the
performance of Consultant's duties to the Corporation, Consultant will not at
any time during or after the term hereof, directly or indirectly use,
communicate, disclose, disseminate, lecture upon, publish articles or otherwise
put in the public domain, any Corporation Proprietary Information. Consultant
agrees to deliver to the Corporation any and all copies of Corporation
Proprietary Information in the possession or control of Consultant upon the
expiration or termination of this Agreement, or at any other time upon request
by the Corporation. The provisions of this section shall survive the termination
of this Agreement.
7.3 Non-Competition and Non-Circumvention by Consultant. In
consideration and recognition of the fact that Consultant has access to
Corporation Proprietary Information under the terms and provisions of this
Agreement and that the Corporation will be providing Consultant confidential
information regarding its various customers and potential customers, product
manufacturers, retailers and distributors, Consultant represents, warrants and
covenants to the Corporation as follows:
(a) Consultant shall at no time disclose to any person,
without the Corporation's prior written consent, any
of the terms, conditions or provisions specified in
this Agreement unless such disclosure is lawfully
required by any federal governmental agency or is
otherwise required to be disclosed by law or is
necessary in any legal proceeding regarding the
subject matter of this Agreement.
(b) During the term of this Agreement, Consultant shall
not circumvent the Corporation for the purpose of
transacting any business with any person or entity
which business shall interfere with any relationship
whatsoever between such person or entity and the
Corporation, or use any Corporation Proprietary
Information to compete with the business of the
Corporation.Consultant shall not solicit any of the
Corporation's employees, independent contractors or
agents for employment. Consultant shall not hire or
engage in any way, any enterprise or person that
competes with, or is engaged in a business
substantially similar to, the business of the
Corporation.
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(c) Consultant shall not for a period of two (2) years
immediately following the termination of this
Agreement with Corporation, either directly or
indirectly (i) make known to any person, firm or
corporation the names or addresses of any of the
Corporation's clients or any other information
pertaining to them or the Corporation's products or
services; (ii) call on, solicit, or take away, or
attempt to call on, solicit or take away any of the
Corporation's clients either on Consultant's behalf
or that of another person, firm or corporation.
(d) Consultant shall not, during the term hereof or for a
period of two (2) years following such term, enter
into an agreement or contract directly with any
manufacturer, retailer or distributor introduced to
Consultant by the Corporation for any services
provided by the Corporation herein or for any similar
services.
(e) Consultant acknowledges and agrees that the
representations, warranties and covenants made by
Consultant and set forth in this section are material
and that the Corporation would not enter into this
Agreement without Consultant's making such
representations, warranties and covenants to the
Corporation.
(f) Consultant acknowledges and agrees that any breach by
Consultant of the representations, warranties and
covenants contained herein will cause irreparable
harm and loss to the Corporation, which harm and loss
cannot be reasonably or adequately compensated in
damages in an action at law. Therefore, Consultant
expressly agrees that, in addition to any other
rights or remedies which the Corporation may possess,
the Corporation shall be entitled to injunctive and
other equitable relief to prevent or remedy a breach
of the representations, warranties and covenants made
by Consultant herein.
(g) The terms and provisions of this section shall
survive the termination of this Agreement for a
period of two (2) years.
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8. Indemnification. Each party shall defend and hold the other party
harmless from and against, and shall indemnify the other party for, any loss,
liability, damage, judgment, penalty or expense (including administrative costs
and expenses, attorney's fees and costs of defense) suffered or incurred by any
person, or to any property, in relation to any action or inaction taken by such
party, whether intentional, negligent or otherwise, or by any of such party's
affiliates, directors, officers, employees, representatives or agents (including
attorneys, accountants and financial advisors).
9. Governmental Rules and Regulations. The provisions of this Agreement
are subject to any and all present and future statutes, orders, rules and
regulations of any duly constituted authority having jurisdiction of the
relationship and transactions defined by this Agreement.
10. Notices. All notices, requests, demands or other communications
pursuant to this Agreement shall be in writing or by facsimile transmission and
shall be deemed to have been duly given (i) on the date of service, if delivered
in person or by facsimile transmission (with the facsimile confirmation of
transmission receipt serving as confirmation of service); or (ii) 48 hours after
mailing by first class, registered or certified mail, postage prepaid, and
properly addressed as follows:
If to the Corporation: Aegis Assessments, Inc.
0000 Xxxxxxx Xxxxx, Xxxxx 000
Xxxxxxx Xxxxx, XX 00000
If to the Consultant: Xxxxx Xxxxx
2426 0/0 Xxxxxxx Xxxxxx
Xxxxxxx, XX 00000
or at such other address as the party affected may designate in a written notice
to such other party in compliance with this paragraph.
11. Entire Agreement. This Agreement constitutes the final, complete,
and exclusive agreement between the parties with respect to the subject matter
hereof and supersedes all prior oral and written, and all contemporaneous oral
negotiations, agreements, and understandings (except that the parties shall be
bound by the Prior Agreement through July 31, 2003). This Agreement may be
amended only by an instrument in writing that expressly refers to this Agreement
and specifically states that such instrument is intended to amend this Agreement
and is signed on behalf of both parties.
12. Execution in Counterparts. This Agreement many be executed in
several counterparts and by facsimile, each of which shall be deemed an
original, but all of which shall constitute one and the same instrument.
13. Choice of Law and Consent to Jurisdiction. All questions concerning
the validity, interpretation or performance of any of the terms, conditions and
provisions of this Agreement or of any of the rights or obligations of the
parties, shall be governed by, and resolved in accordance with, the laws of the
State of California. Any and all actions or proceedings, at law or in equity, to
enforce or interpret the provisions of this Agreement shall be litigated in
courts having situs within the State of California.
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14. Assignability. Neither party shall sell, assign, transfer, convey
or encumber this Agreement or any right or interest in this Agreement or
pursuant to this Agreement, or suffer or permit any such sale, assignment,
transfer or encumbrance to occur by operation of law without the prior written
consent of the other party.
15. Consent to Agreement. By executing this Agreement, each party, for
himself, represents such party has read or caused to be read this Agreement in
all particulars, and consents to the rights, conditions, duties and
responsibilities imposed upon such party as specified in this Agreement.
16. Attorney's Fees. In the event of a legal proceeding between the
parties to enforce a provision under this Agreement, the prevailing party to
such action shall be entitled to recover from the other party its reasonable
attorney's fees and costs for participating in the legal action.
17. Severability. To the extent any provision of this Agreement shall
be determined to be unlawful or otherwise unenforceable, in whole or in part,
such determination shall not affect the validity of the remainder of this
Agreement, and this Agreement shall be reformed to the extent necessary to carry
out its provisions to the greatest extent possible. In the absence of such
reformation, such part of such provision shall be considered deleted from this
Agreement and the remainder of such provision and of this Agreement shall be
unaffected and shall continue in full force and effect. In furtherance and not
in limitation of the foregoing, should the duration or geographical extent of,
or business activities covered by any provision of this Agreement be in excess
of that which is valid and enforceable under applicable law, then such provision
shall be construed to cover only that duration, extent or activities which may
validly and enforceably be covered. To the extent any provision of this
Agreement shall be declared invalid or unenforceable for any reason by any
Governmental or Regulatory Authority in any jurisdiction, this Agreement (or
provision thereof) shall remain valid and enforceable in each other jurisdiction
where it applies. Both parties acknowledges the uncertainty of the law in this
respect and expressly stipulate that this Agreement shall be given the
construction that renders its provisions valid and enforceable to the maximum
extent (not exceeding its express terms) possible under applicable law.
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IN WITNESS WHEREOF the parties have executed this Agreement in
duplicate and in multiple counterparts, each of which shall have the force and
effect of an original, on the date specified in the preamble of this Agreement.
CORPORATION: CONSULTANT:
Aegis Assessments, Inc.,
a Delaware corporation
By: /s/ Xxxx Xxxxxxx /s/ Xxxxx Xxxxx
---------------------------- ------------------------
Xxxx Xxxxxxx Xxxxx Xxxxx
Its: President
