CONSULTING AGREEMENT
Exhibit 10.4
This
Consulting Agreement (the "Agreement"), effective as of September 15, 2009 is
entered into by and between Network Cadence, Inc United States (herein referred
to as the "Company") and Capital Group Communications, Inc., a California
corporation with principal address at 00 Xxxxxxx Xxxx Xxx Xxxxx 0, Xxxxxxxxx XX
00000 (herein referred to as the "Consultant"). As used in this Agreement, the
lerm. "Parties," shall refer to the Company and Consultant
jointly.
WHEREAS:
A.
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The
Company seeks to engage the services of Consultant to assist the Company
in its efforts to gain greater recognition and awareness among relevant
investors in the public capital
markets.
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B.
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The
Company is familiar with Consultant and Consultant's skills and
expertise.
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C.
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The
Parties acknowledge and agree that Consultant has completed a preliminary
review and evaluation of the Company and the challenges facing the Company
in the investor relations marketplace and the Company and Consultant
have had discussions regarding these and oilier matters relating to the
Company's investor relations
objectives.
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D.
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Consultant
is willing to assist the Company to better develop investor recognition
and awareness in the public capital
markets.
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E.
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Subject
to the terms and conditions of this Agreement, the Company hereby engages
the services of Consultant to represent the Company in investors'
communications and public relations with existing shareholders, brokers,
dealers and other investment professionals and to consult with management
concerning such Company activities.
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NOW
THEREFORE THE PARTIES AGREE AS FOLLOWS:
1.00 Commencement and Term of
Consulting Services from Consultant. The Company hereby agrees to retain
the Consultant to act in a consulting capacity to the Company, and Consultant
hereby agrees to provide certain consulting services to the Company as described
in Section 2.00 of this Agreement from the date at which a copy of this
Agreement is executed and delivered to Consultant with the Fees (defined in
Section 4.00 of this Agreement) (the "Term") and until Twelve (12) months
following the date that Network Cadence becomes a tradable stock.
2.00 Duties of Consultant.
Including amendment A of this Agreement. Consultant agrees that it shall provide
the following specified consulting services on a best efforts
basis:
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2.01
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Present
the company to Consultant's online network of Brokers, Analyst and
Institutions
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2.02
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Finalize
the preliminary evaluation and assessment prepared by Consultant in
evaluating and assessing the challenges facing the Company in
communicating with the investor
marketplace.
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2.03
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Consult
and assist the Company, as appropriate, in: (I.) developing and
implementing plans and means for presenting the Company and its business
plans, strategy and personnel to the financial community (using
Consultant's database of licensed brokers, analyst, institutions and fund
managers); and (2) establishing an image for the Company in the
financial community through an extensive grass roots marketing
program.
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2.04
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Maintain
target investor awareness of the Company's plans, strategy and personnel,
as they may evolve during the Term, and ensure appropriate information
regarding such plans, strategy and personnel to Consultant's designated
subscribers.
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2.05
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Provide
assistance to the Company with respect to its shareholder
relations.
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2.06
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At
the Company's request and subject to the Company's securing its own rights
to the use of its names, marks, and logos, Consultant shall assist the
Company in the use of its corporate symbols, logos, and names to enhance
the presentation of said symbols, logos and names, and other matters
relating to the Company's corporate
image.
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2.07
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Upon
the Company's direction and approval. Consultant shall disseminate
information regarding the Company to Consultant's online newsgroups and
its members and provide re-direction from xxxxxx.xxx finance,
investment community professionals and the general investing
public.
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2.08
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At
the Company's request, review business plans, strategies, mission
statements budgets, proposed transactions and other plans for the
purpose of advising the Company of the public relations implications
thereof.
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2.09
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Prepare
and distribute Company promotional video to educate prospective investors
and stimulate demand for the stock.
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2.10
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Upon
companies request, provide monthly activity reports with quantitative
mctrics on actions taken (eg: traders contacted, viral marketing
actions)
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2.11
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Upon
companies request, provide monthly activity report with qualitative
actions taken (eg: calls to outside partners, meetings with investment
groups)
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3.00
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Allocation of Time and
Energies. The Consultant hereby agrees to use its best efforts to
perform and discharge faithfully the responsibilities which may be
assigned to the Consultant from time to time by the officers and duly
authorized representatives of die Company in connection with the
conduct of the Company's financial, public relations and communications
activities, subject to compliance with applicable state and federal
securities laws and
regulations.
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3.01
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The
Panics acknowledge and agree that the services provided by Consultant and
staff shall diligently and thoroughly provide the consulting services
required hereunder. The services to be provided by Consultant shall not be
measured by the number of hours devoted by Consultant's staff on a per day
basis and Consultant and the Company agree thai Consultant shall
perform the duties set forth in Section 2.00 of this Agreement in a
diligent and professional manner. The Parties acknowledge and agree that a
disproportionately large amount of tire effort to be expended and the
costs to be incurred by the Consultant and the benefits to be received by
the Company arc expected to occur within or shortly after the first
two (2) months from the commencement of the Term of this Agreement.
It is expressly understood that Consultant's performance of its
duties hereunder will in no way be measured by the price of the
Company's common stock, nor the trading volume of the Company's
common slock.
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3.02
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The
Parties acknowledge and agree that the services to be performed under this
Agreement are to be performed by Consultant and not by any individual
staff member of Consultant. At all times hereunder, the death, disability,
or incapacity of any member of Consultant's staff shall not be deemed
a breach of this Agreement.
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4.00
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Compensation to
Consultant for Consulting Services. In consideration for the
consulting services rendered to the Company as described in Section 2.00
of this Agreement, together with other good and valuable consideration,
the sufficiency of which is hereby acknowledged, the Company hereby agrees
to pay Consultant the following consulting fees (the
"Fees"):
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4.01
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Issue
and deliver to Consultant, at Consultant's address stated on the first
page of this Agreement, one (1) or more stock certificates (the
"Certificates") representing 3% of the Company's outstanding Common
Stock (the "Stock Fee"). Each Certificate shall bear a restricted
securities legend in accordance with the Securities Act of 1933.
These Stock Commencement Fees shall be for all purposes
non-refundable in every respect, In the event that the Company later
elects to terminate this Agreement at any time following the commencement
of the Term, the Stock Fee shall not be refunded and no amount or portion
of either shall be dnc or returned to the Company. In addition, the
Company's Corporate Secretary shall execute and deliver the
Certificate of Corporate Secretary (attached hereto as Exhibit B)
with a manually executed copy of this
Agreement.
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4.02
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Deliver
a true and accurate photocopy of the Board of Directors' resolution
duly adopted by the Company's Board of Directors authorizing the issuance
of the Shares in accordance with this
Agreement.
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4.03
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Deliver
a true and accurate photocopy of the Board of Directors* resolution^)
duly adopted by the Company's Board of Directors authorizing and approving
this Agreement.
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4.04
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If
requested at the time that the Slock Fee is or will he paid. Consultant
agrees to execute an investment questionnaire and an investment
agreement as is customary fur the issuance of the Shares in
transactions similar to the transactions contemplated by this
Agreement and the said investment agreement shall not be held or
interpreted so as to contradict or contravene this Agreement or the
obligations recited herein in any
way.
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4.05
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The
Parties hereto acknowledge and agree that Consultant has foregone
significant alternative opportunities in entering into this Agreement and
assuming the obligations set forth in Section 2.00 of this Agreement. The
Company further acknowledges and agrees that it derives substantial
benefit from the execution of this Agreement and the ability to
announce its relationship witli
Consultant.
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4.06
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The
shares of the Common Stock issued as a Stock Fee shall constitute payment
for Consultant's agreement to consult to the Company and are a
non-refundable, non-apportion able, and non-ratable retainer and the Stock
Fee are not and shall not be construed as a prepayment for future
services. In die event that the Company terminates this Agreement prior to
the completion of the Term of this Agreement, for any reason
whatsoever, it is agreed and understood that the Stock Fee shall not
be refundable or returned to the
Company.
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4.07
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Nothing
herein shall limit the right of CGC to transfer the shares received
as consideration hereunder to its employees pursuant to and according
to the terms and conditions of their respective employment
agreements.
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5.00
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Representations
of Each of the Parties.
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5.01
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Representations of
Consultant. Consultant acknowledges that the shares of Common Stock
to be issued to Consultant as the Stock Fee pursuant to this Agreement
have not been registered under the Securities Act of 1933 (the "1933
Act"), and accordingly are "restricted securities" within the meaning
of Rule 144 of the 1933 Act. Further, Consultant agrees that in connection
with the acquisition of Shares hereunder, the Consultant represents and
warranls to the Company, to the best of its/his knowledge, as follows: (I)
Consultant acknowledges that the Consultant has been afforded the
opportunity to ask questions of and receive answers from duly
authorized offieei-s or other representatives of the Company concerning an
investment in the Shares, and any additional information which the
Consultant lias requested: (2) Consultant has had experience in
investments in restricted and publicly traded securities: and (3)
Consultant has had experience in investments in speculative
securities
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and
other investments which involve the risk of loss of investment. Consultant
acknowledges that an investment in the Shares is speculative and
involves the risk of loss. Consultant has the requisite knowledge to
assess the relative merits and of the investment without the necessity of
relying upon other advisors, and Consultant can afford the risk of loss of
his entire investment in the Shares. Consultant is (i) an accredited
investor, as that term is defined in Regulation D promulgated under
the Securities Act of 1933, and (ii) a purchaser described in Section
25102 (0 (2) of the California Corporate Securities Law of 1%8. as
amended. In addition, Consultant is acquiring the Shares for the
Consultant's own account for long-term investment and not with a view
toward resale or distribution thereof except in accordance with applicable
securities laws.
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5.02
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Representations of the
Company RE: General. The Company represents that: (1) it has the
requisite authority and power to enter into this Agreement: (2) this
Agreement and the obligations recited hereunder have been approved by
the Company's Board of Directors; (3) the shares of the Company's Common
Stock issued to Consultant arc free from the claims and interests of any
third party; and (4) the Stock Fee are non-refundable and any termination
or attempted cancellation of this Agreement shall not give the Company or
any other person the right to receive the refund or return of either or
both of said fees.
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5.03
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Representations of the
Company RE: Valuation of the Shares. The Company represents that:
(1) the shares issued to Consultant in payment of the Stock Fee are
restricted securities; (2) the Stock Fee has been and for all purposes
will be valued at no more than the amount set forth in Exhibit B attached
to and incorporated by reference herein; (3) the value accorded the
shares issued to Consultant in payment of the Stock Fee is not
inconsistent with any values accorded shares of the Company's Common Stock
issued in similar amounts within a reasonable time period prior to or
contemporaneous with the payment of the Stock Fee to
Consultant.
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6.00
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Additional
Representations of the Company. In addition, the Company represents
that Company, and not Consultant, is responsible to perform any and
all due diligence on such lender, equity purchaser or acquisition
candidate introduced to it by Consultant under this Agreement, prior to
Company receiving funds or closing on any acquisition. However. Consultant
shall undertake its best efforts to avoid the introduction of any third
party which is known to Con sultant to have had a prior reputation or
history of questionable, unethical, or illicit
activities.
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7.00
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Assignment of
Agreement & Assignment of Rights and Obligations. Consultant's
services under this contract are offered to Company only and may not be
assigned by the Company without the written consent of Consultant, which
not be unreasonably withheld, in the event of a Change in Control, where a
Change in Control is defined as any one person or persons acting as a
"group" (as that term is defined in Treasury Regulations §
1.409A-3(i)(5)(v)(B)) (a) acquires ownership of the stock of the Company,
that, together with stock held by such person or group, constitutes more
than fifty percent (50%) of the total fair market value or total
voting power of the stock of the Company or of any corporation that owns
at least fifty percent (50%) of the total fair market value and. total
voting power of Company, or (h) acquires a portion of the
Company's assets during the twelve (12) month period ending on the date of
the most recent acquisition by such person or persons, assets from the
Company that have a total fair market value equal to more than fifty
percent (50%) of the total gross
fair
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market
value of all of the assets of the Company immediately prior to such
acquisition or acquisitions. In the event of said Change in Control,
all compensation to Consultant herein under the schedules set forth
herein shall remain due and payable, and any compensation received by
the Consultant may be retained in the entirety by Consultant, all without
any reduction or pro-rating and shall be considered and remain fully
paid and non-assessable. Company shall assure that in the event of any
Change in Control that its successor entity shall agree to complete all
obligations to Consultant, including the provision and transfer of all
eompensa- lion herein, and the preservation of the value thereof
consistent with the rights granted to Consultant by the Company herein,
and to
Shareholders.
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8.00
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Obligation for
Expenses. Consultant agrees to pay for all its expenses (phone,
mailing, labor, etc.), other than extraordinary items (travel required
by/or specifically requested by the Company, luncheons or dinners to
large groups of investment professionals, mass faxing to a sizable
percentage of the Company's constituents, investor conference calls, print
advertisements in publications, etc.) approved by the Company prior to its
incurring an obligation for
reimbursement,
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9.00
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Indemnification of
Consultant and Consultant's Employees and Agents by the Company.
The Company hereby agrees to indemnify and hold Consultant and
Consultant's employees and agents (the 'indemnified Parties") harmless
against (i) any and all liabilities, obligations, losses, damages, claims,
actions, asserted against any one or more of the Indemnified Parties,
based upon, resulting from or arising out of any misstatement or omission
of material fact contained in one or more of the statements,
representations, press releases, announcements, reports, or filings made
or prepared by the Company or its agents and (li) any cost or expense
(including reasonable attorneys' fees and court costs) incurred by the
Indemnified Parties or any of them in connection with the foregoing
(including, without limitation, any cost or expense incurred by live
Indemnified Parlies in enforcing their rights pursuant to this Section
9.00). No demand or claim for indemnification under this Section 9,00 may
be made after 1 1:59 p.m.. California time, on the date six (6) years
following the last date at which services were rendered to the Company
under this Agreement or any extension
thereof.
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9.01
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Obligation for
Compliance with Seeurities Laws. The Parties agree that the
Company shall assume and remain at all times responsible for all
information, statements. and documents released or provided to
Consultant and lor compliance with Regulation FD or any other provisions
of the Securities Exchange Act of 1934 (the "1934 Act
Obligations").
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10.00
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Miscellaneous
provisions.
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10.01
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Further Assurance.
Each of the parties shall hereafter execute all documents and do all acts
reasonably necessary to effect the provisions of this
Agreement.
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10.02
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Successors. The
provisions of this Agreement shall be deemed to obligate, extend to and
inure to the benefit of the successors, assigns, transferees, grantees,
and indemnitees of each of the Parties to this
Agreement.
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10.03
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Independent
Counsel. Each of the Parties to this Agreement acknowledges and
agrees that it has been represented by independent counsel of its own
choice throughout all negotiations which preceded the execution of this
Agreement and the transactions referred to in this Agreement, and each has
executed this Agreement with the consent and upon the advice of said
independent counsel. Each party represents that he or it fully
understands the provisions of this Agreement, has consulted with counsel
concerning its terms and executes this Agreement of his or its own free
choice without reference to any representations, promises or
expectations not set forth
herein.
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10.04
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Integration.
This Agreement, after full execution, acknowledgment and delivery,
memorializes and constitutes the entire agreement and understanding
between the parties and supersedes and replaces all prior negotiations and
agreements of the parlies, whether written or unwritten. Each of the
Parties to this Agreement acknowledges that no other party, nor any
agent or attorney of any other party has made any promises,
representations, or warranty whatsoever, express or implied, which is not
expressly contained in this Agreement; and each party further
acknowledges that he or it has not executed this Agreement in
reliance upon any belief as to any fact not expressly recited
hereinabove.
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10.05
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Attorneys Fees.
In the event of a dispute between (he parties concerning the
enforcement or interpretation of this Agreement, the prevailing party
in such dispute, whether by legal proceedings or otherwise, shall be
reimbursed immediately for the reasonably incurred attorneys' fees and
other costs and expenses by the other Parties to the
dispute.
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10.06
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Interpretation &
Right to Specific Performance. Wherever the context so requires:
the singular number shall include the plural; the plural shall include the
singular: and the masculine gender shall include the feminine and neuter
genders. In the event that cither party to this Agreement commits a breach
of its obligations under this Agreement, the other party shall be entitled
to specific performance in addition to any other remedies to which they
may be entitled.
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10.07
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Captions &
Exhibits. The captions by which the sections and subsections of
this Agreement are identified are for convenience only, and shall have no
effect whatsoever upon its interpretation. Exhibits A and B are
attached hereto and incorporated by reference
herein.
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10.08
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Severance. If
any provision of this Agreement is held to be illegal or invalid by a
court of competent jurisdiction, such provision shall be deemed to be
severed and deleted; and neither such provision, nor its severance and
deletion, shall affect the validity of the remaining
provisions.
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10.09
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Counterparts.
This Agreement may be executed in any number of
counterparts.
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10.10
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Expenses Associated
With This Agreement. Each of the parties hereto agrees to bear its
own costs, attorneys fees and related expenses associated with this
Agreement.
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10.11
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Waiver of Jury
Trial. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT
OF OR RELATING TO THIS AGREEMENT.
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10.12
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Forum
Selection. Any
action brought by either party pursuant io this Agreement shall be brought
in the United States Federal District Court, for the city of Sausali to,
CA, which shall have the sole and exclusive jurisdiction over the
matter.
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10.13
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Power
to Bind. A
responsible officer of the Company has read and understands the contents
of this Agreement and is empowered and duly authorized on behalf of the
Company to execute it.
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10.14
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Confidentiality. The
parties hereto agree that the terms of this Agreement and all documents
constituting parts of this transaction shall be kept strictly confidential
except to the extent necessary to protect the rights of the parties hereto
or to satisfy the Company's obligations under the Securities Exchange Act
of 1934 and the rules adopted by the Securities and Exchange Commission
hereunder.
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IN WITNESS WHEREOF, the parties have
executed this Agreement as of the date set forth Above
FOR THE
COMPANY:
By: /s/Xxxx
Xxxxxxx 10-21-09
Xxxx Xxxxxxx COO
Network Cadence, Inc.
FOR
CONSULTANT:
By: /s/Xxxxx
Xxxxx
10-21-09
Xxxxx Xxxxx CEO
Capital Group Communications, Inc.
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