EXHIBIT 4.1
CONSULTING AGREEMENT
THIS CONSULTING AGREEMENT (the "Agreement") is made on December 13,
2001 between iLive, Inc. (the "Company") and Xxxx Xxxxxxxxx ("Consultant") and
is effective on June 7, 2002.
R E C I T A L S
A. Consultant has extensive experience in the area of content
acquisition and the Company seeks to benefit from Consultant's expertise by
retaining Consultant as the Company's exclusive Consultant pursuant to the terms
of this Agreement.
B. Consultant wishes to provide consulting services for the Company
pursuant to the terms of this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants hereinafter
stated, the Company and Consultant agree as follows:
9. APPOINTMENT. The Company hereby engages Consultant and Consultant
agrees to render services to the Company as a consultant upon the terms and
conditions hereinafter set forth.
10. SERVICES. During the term of this Agreement, Consultant shall
provide advice and consulting services to the Company with respect to matters
related to the acquisition of video content. In addition, upon request by the
Company, Consultant shall keep the Company informed about trends and demand in
streaming video content which may broaden or change from time to time.
11. COMPENSATION. As full consideration for the consulting services to
be provided by Consultant during the term of this Agreement, the Company shall
immediately issue to Consultant 170,000 shares of the Company's common stock.
Consultant, in providing the foregoing services, shall be reimbursed by the
Company for any pre-approved out-of-pocket costs, including, without limitation,
travel, lodging, telephone, postage and Federal Express charges.
12. COMPETITION. Consultant represents to the Company that Consultant does not
have any agreement to provide consulting services to any other party, firm, or
company in the streaming media or encoding industry on matters relating to the
scope of this consultancy, and will not enter into any such agreement during the
term of this Agreement.
13. CONFIDENTIALITY. Consultant acknowledges that certain information
elements (the "Information Elements") provided and to be provided by the Company
are or may be significantly strategically important and, therefore, constitute
trade secrets for purposes of this Agreement. During the term of this Agreement
and for a further period of twelve (12) months following the termination
thereof, Consultant undertakes to do the following in favor of the Company,
except for Information Elements which are posted on the Company's Website and
those Information Elements forming part of the public domain.
(a) Consultant shall keep the Information Elements
confidential and not disclose same;
(b) Consultant shall take and implement all appropriate
measures to preserve the confidential nature of the Information Elements;
(c) Consultant shall not communicate, transmit, exploit or
otherwise use the Information Elements whether for its own behalf or on behalf
of third parties; and
(d) Consultant shall take all appropriate measures to ensure
that its partners, shareholders, directors, representatives, agents,
mandataries, officers, employees and related persons maintain the confidential
nature of the Information Elements for the Company's exclusive benefit.
14. RETURN OF MATERIALS. The Consultant agrees to promptly return,
following the termination of this Agreement or upon earlier request by the
Company, all software, computer files, database information, and video materials
in Consultant's possession supplied by the Company in conjunction with
Consultant's consulting services under this Agreement or generated by Consultant
in the performance of consulting services under this Agreement.
15. TERM AND TERMINATION.
(a) This Agreement shall be for a term of three (3) months,
renewable upon reasonable terms and conditions as may be agreed upon by the
Company and Consultant.
(b) Termination of the Agreement under this paragraph shall
not affect the Company's obligation to pay for services previously performed by
Consultant or expenses reasonably incurred by Consultant for which Consultant is
entitled to reimbursement under paragraph 3, above.
16. MISCELLANEOUS.
(a) This Agreement shall inure to the benefit of and be
binding upon the respective heirs, executors, successors, representatives, and
assigns of the parties, as the case may be.
(b) The relationship created by this Agreement shall be that
of independent contractor, and Consultant shall have no authority to bind or act
as agent for the Company or its employees for any purpose.
(c) The Company will not use Consultant's name in any
commercial advertisement or similar material used to promote or sell products,
unless the Company obtains in advance the written consent of Consultant.
(d) Notice or payments given by one party to the other
hereunder shall be in writing and deemed to have been properly given or paid if
deposited with the United States Postal Service, registered or certified mail,
addressed as follows:
iLive, Inc.
0000 Xxxxxxxx Xxxxxx Xxxxx
Xxxxxx, Xxxxxxxxxx 00000
Xxxx Xxxxxxxxx
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(e) This Agreement replaces all previous agreements and the
discussions relating to the subject matters hereof and constitutes the entire
agreement between the Company and Consultant with respect to the subject matter
of this Agreement. This Agreement may not be modified in any respect by any
verbal statement, representation, or agreement made by any employee, officer, or
representative of the Company, or by any written documents unless it is signed
by an officer of the Company and by Consultant.
(f) If any term or provision of this Agreement is deemed
invalid, contrary to, or prohibited under applicable laws or regulation of any
jurisdiction, this Agreement shall be interpreted as if such invalid agreements
or covenants were not contained herein.
(g) It is the intention of the parties hereto that this
Agreement and the performance hereunder and all suits and special proceedings
hereunder be construed in accordance with and pursuant to the laws of the State
of California and that in any action, special proceeding or other proceeding
that may be brought arising out of, in connection with, or by reason of this
Agreement, the laws of the State of California, without regard to conflicts of
law principles, shall be applicable. The parties agree to submit all litigation
arising hereunder to the state or federal courts located in Orange County,
California and consent to the jurisdiction and venue of such courts and further
waive any objection that such courts are inconvenient forum.
IN WITNESS WHEREOF, the parties have executed this Agreement effective
the date first stated above.
ILIVE, INC.
By: /s/ Xxxxx Xxxxxxxx
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Xxxxx Xxxxxxxx, President
CONSULTANT
By: /s/ Xxxx Xxxxxxxxx
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Xxxx Xxxxxxxxx
