Exhibit 10-2
CONTRACT FOR INVESTMENT BANKING SERVICES
THIS CONTRACT FOR INVESTMENT BANKING SERVICES AGREEMENT ("Agreement") is made
and entered into on this 15th day of January 2004, by and between Avalon Gold
Corporation., a Nevada Corporation ("Client") and Y.E.N.N. Asset Management, a
Cayman Islands Corporation ("Contractor").
RECITALS
A. Client is in the business of finding, exploring and developing mineral
properties of merit, with emphasis on gold mining properties.
B. Client and Contractor desire to enter into a relationship whereby Contractor
will provide access to investors and funding for the exploration and development
of these properties.
ARTICLE I TERM OF CONTRACT
1.1 Term of Contract. The term of this Agreement shall be two years from the
date set forth above, unless terminated earlier.
ARTICLE II SERVICES TO BE PERFORMED BY CONTRACTOR
2.1. Specific Services. Contractor agrees to use his or her best efforts to
provide essential information and solicit contacts with individuals and/or
companies interested in providing financial services to the Client.
2.2. Methods of Performing Services. Contractor shall determine the method,
details, and means of performing the services described in Section 2.1 of this
Agreement.
2.3 Status of Contractor. Contractor is not an employee of Client for any
purpose whatsoever, but is an independent contractor. Client is interested only
in the results obtained by Contractor, who shall have the sole control of the
manner and means of performing under this Agreement. Client shall not have the
right to require Contractor to do anything, which would jeopardize the
relationship of independent contractor between Contractor and Client. All
expenses and disbursements, including, but not limited to, those for travel and
maintenance, entertainment, office, clerical, and general expenses, that may be
incurred by Contractor in connection with this Agreement shall be borne wholly
and completely by Contractor, and Client shall not be responsible or liable
therefore. Contractor does not have, nor shall it hold itself out as having,
any right, power or authority to create any contract or obligation, either
express or implied, on behalf of, in the name of, or obligating Client, or to
pledge Client's credit, or to extend credit in Client's name unless Client shall
consent thereto in advance in writing. Client shall have the right to appoint
or otherwise designate suitable representatives (herein collectively referred to
as "Contractor's Representatives"). Contractor shall be solely responsible for
Contractor's representatives and their acts. Contractor's Representatives shall
be at Contractor's own risk, expense, and supervision, and Contractor's
Representatives shall not have any claim against Client for salaries,
commissions, items of cost, or other form of compensation or reimbursement, and
Contractor represents, warrants, and covenants that Contractor's Representatives
shall be subordinate to Contractor and subject to each and all of the terms,
provisions and conditions applying to Contractor hereunder. Contractor agrees he
or she is not entitled to the rights or benefits afforded to Client's employees,
including disability or unemployment insurance, workers' compensation, medical
insurance, sick leave, or any other employment benefit. Contractor is
responsible for providing; at his or her own expense, disability, unemployment,
and other insurance, workers' compensation, training, permits and licenses for
himself or herself and for his or her employees and subcontractors.
2.4 Payment of Income Taxes. Contractor is responsible for paying when due all
income taxes, including estimated taxes, incurred as a result of the
compensation paid by Client to Contractor for services under this Agreement. On
request, Contractor will provide Client with proof of timely payment.
Contractor agrees to indemnify Client for any claims, costs, losses, fees,
penalties, interest, or damages suffered by Client resulting from Contractor's
failure to comply with this provision.
2.5 Use of Employees or Subcontractors. Contractor may, at Contractor's own
expense, use any employees or subcontractors as Contractor deems necessary to
perform the services required of Contractor by this Agreement. Client may not
control, direct or supervise Contractor's employees or subcontractors in the
performance of those services.
ARTICLE III COMPENSATION
3.1 Compensation. Four hundred fifty thousand (450,000) shares of the Client's
US $0.001 par value common stock with Rule 144 restrictions.
3.2 Payment of Expenses. Contractor will be responsible for all expenses
incurred in performing services under this Agreement.
ARTICLE IV OBLIGATIONS OF CONTRACTOR
4.1 Minimum Amount of Service. Contractor agrees to devote a minimum of one
hundred (100) hours per month to performing the above-described services.
4.2 Non-Exclusive Relationship. Contractor may represent, perform services for,
and contract with as many additional clients, persons, or companies as
Contractor, in his or her sole discretion, sees fit. 4.3 Time and Place of
Performing Work. Contractor may perform the services under this agreement at
any suitable time and location he or she chooses.
4.4 Web Site Information. Client will supply to Contractor, without cost, from
time to time, reasonable quantities of information and literature on the Web
Site and related activities, which Agent, in its sole discretion, determines
would be helpful to Contractor to perform the services under this Agreement.
4.5 Workers' Compensation. Contractor agrees to provide workers' compensation
insurance for Contractor's employees and agents and agrees to hold harmless and
indemnify Client for any and all claims arising out of any injury, disability or
death of any Contractor's employees or agents.
4.6 Contractor's Qualifications. Contractor represents that he or she has the
qualifications and skills necessary to perform the services under this Agreement
in a competent, professional manner, without the advice or direction of Client.
This means Contractor is able to fulfill the requirements of this Agreement.
Failure to perform all the services required under this Agreement constitutes a
material breach of the Agreement. Contractor has complete and sole discretion
for the manner in which the work under this Agreement will be performed.
ARTICLE V OBLIGATIONS OF CLIENT
5.1 Cooperation of Client. Client agrees to comply with all reasonable requests
of Contractor and provide access to all documents reasonably necessary to the
performance of Contractor's duties under this Agreement.
5.2 Place of Work. Contractor agrees that Client is not responsible for
furnishing space on Client's premises for use by Contractor while performing the
services under this Agreement.
ARTICLE VI TERMINATION OF AGREEMENT
6.1 Expiration of Agreement. Unless otherwise terminated as provided in this
Agreement, this Agreement will continue in effect for a period of two years and
shall then terminate unless renewed in writing by both parties.
6.2 Termination on Notice. Notwithstanding any other provision of this
Agreement, either party may terminate this Agreement at any time by giving
thirty (30) days written notice to the other party. Unless otherwise terminated
as provided in this Agreement, this Agreement will continue in force for a
period of thirty months (30) months.
6.3 Termination on Occurrence of Stated Events. This Agreement will terminate
automatically on the occurrence of any of the following events: (a)
Bankruptcy or insolvency of either party;
(b) Sale of the business of either party;
(c) Death of Contractor; and/or
(d) Assignment of this Agreement by either party without the consent of the
other party.
6.4 Termination for Default. If either party defaults in the
performance of this Agreement or materially breaches any of its provisions,
the non-breaching party may terminate this Agreement by giving at least
thirty (30) days written notification to the breaching party. Termination
will take effect immediately on receipt of notice by the breaching party or
five (5) days after mailing notice, whichever occurs first. For the purposes
of this Section 6.4, material breach of this Agreement includes, but is not
limited to, the following:
(a) Client's failure to pay Contractor any compensation due within forty-five
(45) days after written demand for payment.
(b) Contractor's failure to complete the services specified in Section 2.1 of
this Agreement.
(c) Contractor's material breach of any warranty, representation or agreement
contained in this Agreement.
ARTICLE VII NON-DISCLOSURE OF PROPRIETARY INFORMATION; NON-COMPETITION AND NON-
CIRCUMVENTION
7.1 New Developments. Contractor agrees that all designs, plans, reports,
specifications, drawings, inventions, processes, and other information or items
produced by Contractor while performing services under this Agreement will be
assigned to Client as the sole and exclusive property of Client and Client's
assigns, nominees and successors, as will any copyrights, patents or trademarks
obtained by Contractor while performing services under this Agreement. On
request and at Client's expense, Contractor agrees to help Client obtain patents
and copyrights for any new developments. This includes providing data, plans,
specifications, descriptions, documentation , and other information, as well as
assisting Client in completing any required application or registration.
7.2 Non-Disclosure of Proprietary and Confidential Information By Contractor.
In consideration and recognition of the fact that during the term of this
Agreement, Contractor may have access to Proprietary Information (as used in
this Article VII "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 Client'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 Contractor or otherwise made known to Contractor as a consequence
of or through this Agreement during the term hereof. The term 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 Contractor or any agent or
representative of Contractor in violation of this Agreement, or (ii) was
available to Contractor on a non?confidential basis from a source other than
Client, or any of Client's officers, directors, employees, agents or other
representatives) or other information and data of a secret and proprietary
nature which Client desires to keep confidential, and that Client has furnished,
or during the term will furnish such information to Contractor, Contractor
agrees and acknowledges (as used in this Article VII, Contractor shall mean and
include, Contractor and any subsidiaries, affiliates, related entities,
officers, agents, shareholders, partners, principals and/or employees) that
Client has exclusive proprietary rights to all Proprietary Information, and
Contractor hereby assigns to Client all rights that he or she might otherwise
possess in any Proprietary Information. Except as required in the performance
of Contractor's duties to Client, Contractor 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 Proprietary Information relating to Client or Client's services,
products or business. Contractor agrees to deliver to Client any and all copies
of Proprietary Information in the possession or control of Contractor upon the
expiration or termination of this Agreement, or at any other time upon request
by Client. The provisions of this section shall survive the termination of this
Agreement.
7.3 Non-Competition and Non-Circumvention by Contractor. In consideration and
recognition of the fact that Contractor has access to Proprietary Information
under the terms and provisions of this Agreement and that Client will be
introducing Contractor to various product manufacturers, retailers and
distributors, Contractor represents, warrants and covenants to Client as
follows:
(a) Contractor shall at no time disclose to any person, without Client'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, Contractor shall not circumvent Client
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 Client, or use any Proprietary Information to compete with the
business of Client. Contractor shall not solicit any of Client's employees,
independent contractors or agents for employment. Contractor 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 Client.
(c) Contractor shall not for a period of one (1) year immediately following the
termination of this Agreement with Client, either directly or indirectly (i)
make known to any person, firm or corporation the names or addresses of any of
Client's clients or any other information pertaining to them or Client's
products or services; (ii) call on, solicit, or take away, or attempt to call
on, solicit or take away any of Client's clients either on Contractor's behalf
or that of another person, firm or corporation.
(d) Contractor shall not, during the term hereof or for a period of one (1) year
following such term, enter into an agreement or contract directly with any
manufacturer, retailer or distributor introduced to Contractor by Client for
any services provided by Client herein or for any similar services.
(e) Contractor acknowledges and agrees that the representations, warranties and
covenants made by Contractor and set forth in this section are material and that
Client would not enter into this Agreement without Contractor's making such
representations, warranties and covenants to Client.
(f) Contractor acknowledges and agrees that any breach by Contractor of the
representations, warranties and covenants contained herein will cause
irreparable harm and loss to Client, which harm and loss cannot be reasonably or
adequately compensated in damages in an action at law. Therefore, Contractor
expressly agrees that, in addition to any other rights or remedies which Client
may possess, Client shall be entitled to injunctive and other equitable relief
to prevent or remedy a breach of the representations, warranties and covenants
made by Contractor herein.
(g) The terms and provisions of this section shall survive the termination of
this Agreement for a period of one (1) year.
ARTICLE VIII
GENERAL PROVISIONS
8.1 Notices. Unless otherwise provided in this Agreement, any notice required or
permitted by this Agreement to be given to either party shall be deemed to have
been duly given if in writing and delivered personally or mailed by first-class,
registered or certified mail, postage prepaid and addressed as follows:
If to Contractor: Y.E.N.N. Asset Management
Xxxxxxxxxx Xxxxxx
Xxxxxxxxx, Xxxx Xxx Xxxx
SMB P.O. Box 1159
Xxxxxx Town, Cayman Islands
If to Client: Avalon Gold Corporation
0000 Xxxxxxx Xxxxxx, Xxxxx 000
Xxxxxxxxx, Xxxxxxx Xxxxxxxx
Xxxxxx X0X 0X0
8.2 Assignment of Contract. Contractor shall not assign or otherwise transfer
its rights under this Agreement, without the prior written consent of Client.
Any attempt to make such an assignment without Client's consent shall be void.
Client's consent shall not be reasonably withheld.
8.3 Amendments. Contractor and Client agree that this Agreement shall be
modified only by a written agreement duly executed by persons authorized to
execute agreements on their behalf.
8.4 Nonwaiver. Contractor and Client agree that no failure to exercise, and no
delay in exercising any right, power, or privilege hereunder on the part of
either party shall operate as a waiver of any right, power or privilege.
Contractor and Client further agree that no single or partial exercise of any
right, power, or privilege hereunder shall preclude its further exercise.
8.5 Payment of Monies Due Deceased Contractor. If Contractor dies before
completing the services under this Agreement, any monies due Contractor from
Client under this Agreement as of the date of death will be paid to Contractor's
executors, administrators, heirs, personal representatives, successors and
assigns.
8.6 Attorneys' Fees. If any legal or equitable action is necessary to enforce
the terms of this Agreement, the prevailing party shall be entitled to
reasonable attorneys' fees in addition to any other relief to which that party
may be entitled. This provision shall be construed as applicable to the entire
Agreement.
8.7 Severability. If any part of this Agreement is adjudged by any court of
competent jurisdiction to be invalid, that judgment shall not affect or nullify
the remainder of this Agreement, and the effect shall be confined to the part
immediately involved in the controversy adjudged.
8.8 Governing Law. This Agreement shall be deemed to have been made in, and
shall be construed pursuant to, the laws of the State of Nevada.
8.9 Entire Agreement. Client and Contractor acknowledge and agree that this
Agreement including the Exhibits attached hereto, is the complete and exclusive
statement of the mutual understanding of the parties and that it supersedes and
cancels all previous written and oral agreements and communications relating to
the subject matter of this Agreement.
8.10 Indemnification. Contractor shall save Client and its agents, officers,
directors, shareholders, employees, attorneys, successors, predecessors,
parent and subsidiary corporations, affiliates, accountants,
representatives, contractors, and assigns and all persons acting by,
through, under or in concert with any of them, harmless from and against
and shall indemnify Client and its agents, officers, directors,
shareholders, employees, attorneys, successors, predecessors, parent and
subsidiary corporations, affiliates, accountants, representatives,
contractors, and assigns and all persons acting by, through, under or in
concert with any of them, for any liability, loss, costs, expenses, or
damages howsoever caused by reason of any injury (whether to body,
property, or personal or business character or reputation) sustained by any
person or to property by reason of any act, neglect, default or omission of
Contractor or any of Contractor's agents, employees, or other
representatives, and Contractor shall pay all amounts to be paid or
discharged in case of an action or any such damages or injuries. If Client
or its agents, officers, directors, shareholders, employees, attorneys,
successors, predecessors, parent and subsidiary corporations, affiliates,
accountants, representatives, contractors, and assigns and all persons
acting by, through, under or in concert with any of them, is sued in any
court for damages by reason of any of the acts of Contractor, Contractor or
such other party shall defend the resulting action (or cause same to be
defended) at Contractor's expense and shall pay and discharge any judgment
that may be rendered in any such action; if Contractor fails or neglects to
so defend in such action, Client may defend such action and any expenses,
including reasonable attorneys' fees, which Client may pay or incur in
defending such action and the amount of any judgment which Client may be
required to pay shall be promptly reimbursed by Contractor upon demand by
Client. IN WITNESS WHEREOF, the undersigned have caused this Agreement to
be signed on the date first written above.
CONTRACTOR CLIENT
Y.E.N.N. Asset Management Avalon Gold Corporation
a Cayman Island Corporation a Nevada Corporation
/s/: Xxxxx Limited /s/: X. Xxxxxx
By: _________________ By: ______________________
Its: Authorized Signatory Its: President
By: _______________________
