EX-10.7
CONSULTING AGREEMENT
This Consulting Agreement ("Agreement") is to be effective as of the
3rd day of May, 2001, by and between 5G Wireless Communications, Inc.
("Company") with offices located at 0000 Xxxxxx Xxxx, Xxxxxxxx, XX
Xxxxxx X0X0X0 and Market Force Inc. ("Consultant"), a Nevada
corporation, having it's California office located at 0000 Xxxxxxxxxx
Xxxx. Xxxxx #000, Xxxxxx xxx Xxx, Xx 00000.
For the purposes of this Agreement, either of the above shall be
referred to as a "Party" and collectively as the "Parties".
The Parties hereby agree as follows:
1. Appointment Of Market Force Inc.: Company hereby appoints
Consultant and Consultant hereby agrees to render services to Company
as a management consultant, and advisor.
2. Duties: Consultant shall provide the Company with the service
of introduction to business contacts brokerage firms and consult with Company
concerning asset loans, bridge financing, merger or acquisition targets, equity
lines of credit, private placement services, other financial service
as needed and IR or PR services as required. Company understands and
acknowledges that Consultant is not a broker dealer.
A. Term. The term ("Term") of this Consulting Agreement shall
be for a period of 12 months commencing on the date hereof and
shall continue on a month-to-month basis until terminated by
Company or Consultant with a notice of thirty (30) days.
B. Compensation. Whereas the company agrees to compensate
consultant with a total of 8% of any and all funding including
the bridge loan and equity line. The 8% will be paid, 4% in
company restricted common stock with "Piggy Back" registration
rights, and 4% in cash that is due and payable out of escrow via
wire transfer with each transfer of funds to the company. The
company will issue restricted common shares of 5 G Wireless
Communications Inc. stock to Market Force Inc. upon first
funding. The Shares shall have " Piggy Back " registration rights.
C. Warrants. Whereas the company shall also issue to the
Consultant a warrant to purchase 500,000 shares of companies
common stock. The warrants shall be priced and exercisable at
110% of the fixed market price at closing. The warrant shall
survive for a period of (5) five years from the date of issuance
and will be exercisable at the holder's discretion. The warrants
will be "cashless" and will have "piggy back " registration
rights and will be issued within 10 days of funding.
3. Confidentiality: Consultant will not disclose to any other
person, firm or corporation, nor use for its own benefit, during or
after the Term of this consulting Agreement, any trade secrets or
other information designated as confidential by Company which is
acquired by Consultant in the course of performing services hereunder.
Any financial advice rendered by Consultant pursuant to this
Consulting Agreement may not be disclosed in any manner without the
prior written approval of Company.
Company, its agents or assigns hereby agree expressly that they
directly or indirectly, for itself, or through its representatives,
agents, employees or affiliates will not pursue a transaction with any
introduced party acknowledged by the Company or an Agent of
Consultant, financing or collateral sources, restructures, registered
or non-registered stock transactions, or security structures,
independent of Consultant, unless Company has a written commitment
prior to the introduction.
4. Indemnification: Company, its agents or assigns hereby agree to
indemnify and hold Consultant harmless from and against all losses,
claims, damages, liabilities, costs or expenses (including reasonable
attorney's fees, collectively the "Liabilities"), joint and several,
arising from the performance of this Consulting Agreement, whether or
not Consultant is party to such dispute. This indemnity shall not
apply, however, and Consultant shall indemnify and hold company, its
affiliates, indemnity shall not apply, however, and Consultant shall
indemnify and hold Company, its affiliates, control persons, officers,
employees and agents harmless from and against all liabilities, where
a court of competent jurisdiction has made a final determination that
Consultant engaged in gross recklessness and willful misconduct in the
performance of its services hereunder, which have rise to the loss,
claim, damage, liability, cost or expense sought to be recovered
hereunder (but pending any such final determinations, the
indemnification and reimbursement provision of this Consulting
Agreement shall apply and Company shall perform its obligation
hereunder to reimburse Consultant for its expenses).
5. Independent Contractor: Consultant and Company hereby
acknowledges that Consultant is an independent contractor. Consultant
shall not hold itself out, as, nor shall it take any action from which
others might infer that it is an agent of or a joint venture of Company.
6. Expense Allowance: Company shall reimburse Consultant for all pre-
approved business related expenses incurred by Consultant during the
course of his consulting on behalf of the Company.
7. Severance Allowance: Notwithstanding any provision of this
agreement, if, during the initial term of this agreement or any
extension thereof, the Company terminates this agreement without cause
or materially breaches this agreement, the Company shall pay
Consultant, without setoff, the balance owing under this agreement
("Severance Allowance") upon termination.
8. Termination for Cause: The Company reserves the right to terminate
this agreement, if Consultant willfully breaches or habitually
neglects his consulting duties which he is asked to perform under the
terms or this agreement. Notice must be given in writing of any
breaches with a 10 day cure period before any termination can take effect.
A. In the event of termination for cause then any balance due
under this agreement, other than documented company expenses
advanced by consultant, shall become null and void.
B. Termination by Consultant: Consultant may terminate his
obligations under this agreement by giving the Company at least
30 days (30) notice in advance. In the event the consultant
terminates this agreement then any balance due under this
agreement, other than documented company expenses advanced by
consultant, shall become null and void.
C. Mediation: Any controversy between the parties involving
the construction or application of any terms, provisions, or
conditions of this agreement, shall on the written request of
either party served on the other, be submitted to mediation
before a neutral third party. The parties shall share the cost of
mediation jointly.
9. Partial invalidity: If any part of this agreement shall be
determined by a court or mediator to be invalid, the remainder hereof
shall be construed as if the invalid portion has been omitted.
10. Waiver: No waiver of any of the provisions of this agreement
shall be deemed or shall constitute a waiver of any other provision,
whether or not similar, nor shall any waiver constitute a continuing
waiver. No waiver shall be binding unless executed in writing by the
party making the waiver,
11. Law Governing Agreement: This agreement shall be governed by and
construed in accordance with the laws of the State of California,
county of Los Angeles.
12. Miscellaneous: This Consulting Agreement sets forth the entire
understanding of the Parties relating to the subject matter hereof and
supercedes and cancels any prior communications, understandings and
agreements between the Parties. This Consulting Agreement is non-
exclusive and cannot be modified or changed, nor can any of its
provisions be waived, except by written agreement signed by all
Parties. This consulting agreement shall be governed by the laws of
the State of California, county of Los Angeles without reference to
the conflict of law principles thereof. In the event of any dispute
as to the Terms of this Consulting Agreement, the prevailing Party in
any litigation shall be entitled to reasonable attorney's fees.
13. Notices: Any notice required or permitted hereunder shall be
given in writing (unless otherwise specified herein) and shall be
deemed effectively given upon personal delivery or seven business days
after deposit in the United States Postal Service, by (a) advance copy
by fax, (b) mailing by express courier or registered or certified mail
with postage and fees prepaid, addressed to each of the other Parties
thereunto entitled at the following addresses, or at such other
addresses as a Party may designate by ten days advance written to each
of the other Parties hereto:
Company: 5 G Wireless Communication Inc.
0000 Xxxxxx Xxxx, Xxxxxxxx
X.X. Xxxxxx X0X0X0
Attn: Xxxxxxx Xxx
Consultant: Market Force Inc.
0000 Xxxxxxxxxx Xxxx. Xxx.000
Xxxxxx Xxx Xxx, XX 00000
Attn: Xxxxx Xxxxxx/Xxxxx Xxx
14. All fees in this agreement are separate and distinct from all
other fees or commissions charged for any deal made by way of this
introduction. Method of fee, whether in stock, cash or in
combination, will be determined prior to any closing. The fee to be
paid is based on total loan proceeds, thereby authorizing said fee to
be disbursed by lender directly to Market Force Inc. or its legal
designee by electronic funds transfer at closing, to be paid in full
and without deductions. In the event there are several traunchs, then
the 8% fee arrangement will apply to each traunch and delivered to
Market Force Inc. by electronic funds transfer with each traunch and
this agreement will be lodged with the escrow agent and will become a
condition of closing.
15. Entire Agreement: This agreement supersedes any and all other
agreements, either written or oral, between the parties hereto with
respect to the services of the Consultant to the Company as it relates
to sales and marketing and in no way supersede any other agreements
that consultant may have with company pertaining to other matters. All
parties to this agreement must sign any modifications to this agreement.
With my hand below I affirm that I am the legally authorized signatory
for this transaction, empowered to bind myself and/or my company to
legal agreements by this signature. In so doing I attest that I fully
understand the foregoing statement(s) contained in this agreement and
accept the percentages without reservation or modification.
Accepted and agreed to as of this 3rd day of May, 2001.
5G Wireless Communications, Inc. Market Force Inc.
/s/ Xxxxxxx Xxx /s/ Xxxxx Xxxxxx
Xxxxxxx Xxx, President/CEO Xxxxx Xxxxxx, CEO
