EXHIBIT 4.1
CONSULTING SERVICES CONTRACT
WITH XXXXXX X. XXXXXX
This consulting services agreement ("Consulting Agreement") is made as of
this 1st day of March, 2000, by and between Xxxxxx X. Xxxxxx ("Skagen" or
"Consultant"), 300 Guildford Landmark Building, 00000 - 000xx Xxxxxx, Xxxxxx,
Xxxxxxx Xxxxxxxx, Xxxxxx X0X 0X0, and ModernGroove Entertainment, Inc., 0000
X. Xxxxxxxxx, Xxxxx 0, Xxx Xxxxx, Xxxxxx 00000 (referred to herein as the
"Company" or "Issuer"), with Skagen and Company collectively sometimes herein
referred to as the "Parties". The Parties hereto, for ten (10) dollars and
other good and valuable consideration the receipt and sufficiency of which is
hereby acknowledged, hereby agree as follows:
WHEREAS, the Company (a Nevada corporation) is a fully reporting company
whose securities are traded on the Over-the-Counter Bulletin Board under the
ticker symbol "MODG"; and
WHEREAS, Skagen, an attorney, is in the business of consulting with private
and public companies regarding issues of business development, management
reorganization, financial forecasts and projections, and merger and
acquisition strategies; and
WHEREAS, the Company wishes to retain Skagen as a non-exclusive corporate
consultant; and
IT IS, THEREFORE agreed that:
1. Services. The Company shall retain Skagen to provide general
corporate consulting services which may include, but not be limited to:
assistance in the preparation and organization of corporate and
financial due diligence material, assistance in the review and
evaluation of potential merger candidates, assistance in negotiating the
terms of a merger or reorganization, assistance in evaluating and
analyzing the Company's specific industry and its competitors,
assistance with corresponding with the Company's accountants and
auditors, and assistance concerning strategic planning regarding
business matters and financial forecasts and projections. Skagen shall
agree to make available qualified personnel for the foregoing purposes
and devote such business time and attention thereto as it shall
determine is required.
The Company understands that any and all suggestions,
opinions or advice given to the Company by Skagen are advisory only and
the ultimate responsibility, liability and decision regarding any
action(s) taken or decisions made lies solely with the Company and not
with Skagen.
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2. Term. The term of this Consulting Agreement shall be for a
period of two years from the date hereof (the "Term").
3. Compensation. As compensation for entering into this Consulting
Agreement and for services rendered over the Term, the Issuer agrees to
issue to Skagen and Skagen agrees to accept from Issuer, as compensation
for the Consulting Services, three hundred fifty thousand (350,000) shares
of the Company's common stock, par value $.001 per share. The Company
hereby agrees to register the shares of common stock underlying the above
referenced common stock on a Form S-8 registration statement.
4. Arbitration. The parties hereby agree that any and all claims
(except only for requests for injunctive or other equitable relief)
whether existing now, in the past or in the future as to which the
parties or any affiliates may be adverse parties, and whether arising
out of this Consulting Agreement or from any other cause, will be
resolved by arbitration before the American Arbitration Association
within the State of Nevada. The parties hereby irrevocably consent to the
jurisdiction of the American Arbitration Association and the situs of
the arbitration (and of any action for injunctive or other equitable
relief) within the State of Nevada. Any award in arbitration may be
entered in any domestic or foreign court having jurisdiction over the
enforcement of such awards. The law applicable to the arbitration and
this Consulting Agreement shall be that of the State of Nevada, determined
without regard to its provisions which would otherwise apply to a
question of conflict of laws.
5. ISSUER'S REPRESENTATIONS AND WARRANTIES. Issuer hereby represents and
warrants to Consultant that:
5.1 Authority. The individual executing and delivering this agreement on
Issuer's behalf has been duly authorized to do so, the signature of such
individual is binding upon Issuer, and Issuer is duly organized and
subsisting under the laws of the jurisdiction in which it was organized.
5.2 Enforceability. Issuer has duly executed and delivered this agreement
and (subject to its execution by Consultant) it constitutes a valid and
binding agreement of Issuer enforceable in accordance with its terms against
Issuer, except as such enforceability may be limited by principles of
public policy, and subject to laws of general application relating to
bankruptcy, insolvency and the relief of debtors and rules of law governing
specific performance, injunctive relief or other equitable remedies.
5.3 Capitalization. Issuer has no outstanding capital stock other than
common stock as of the date of this agreement. Issuer is authorized to
issue 350,000 Shares of Common Stock, of which 30,100,700 shares are issued
and outstanding. All of Issuer's outstanding Shares of Common Stock have
been duly and validly issued and are fully paid, nonassessable and not
subject to any preemptive or similar rights; and the Shares have been duly
authorized
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and, when issued and delivered to Consultant as payment for services
rendered as provided by this agreement, will be validly issued, fully paid
and nonassessable, and the issuance of such Shares will not be subject to
any preemptive or similar rights.
6. Miscellaneous.
6.1 Assignment. This Agreement is not transferable or
assignable.
6.2 Execution and Delivery of Agreement. Each of the
parties shall be entitled to rely on delivery by fax transmission of an
executed copy of this agreement by the other party, and acceptance of
such fax copies shall create a valid and binding agreement between the
parties.
6.3 Titles. The titles of the sections and subsections of
this agreement are for the convenience of reference only and are not to
be considered in construing this agreement.
6.4 Severability. The invalidity or unenforceability of
any particular provision of this agreement shall not affect or limit the
validity or enforceability of the remaining provisions of this
agreement.
6.5 Entire Agreement. This agreement constitutes the
entire agreement and understanding between the parties with respect to
the subject matters herein and supersedes and replaces any prior
agreements and understandings, whether oral or written, between them
with respect to such matters.
6.6 Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be an original, but all of
which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the date first above mentioned.
MODERNGROOVE ENTERTAINMENT, INC.
By: /s/ Xxxx Xxxxxxx
------------------------------
Xxxx Xxxxxxx, President/CEO
AGREED AND ACCEPTED
By: /s/ Xxxxxx X. Xxxxxx
-------------------------
Xxxxxx X. Xxxxxx
300 Guildford Landmark Building
00000 - 000xx Xxxxxx
Xxxxxx, Xxxxxxx Xxxxxxxx
Xxxxxx X0X 0X0
350,000 Shares. Number of Shares to be issued
to Xxxxxx X. Xxxxxx pursuant to this agreement.
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