TRIBE
COMMUNICATIONS, Inc.
Exhibit 4.2
CONSULTING AGREEMENT
This Agreement (the ""Agreement"") is dated JANUARY 3, 2001 and is entered into
by and between CALL SOLUTIONS, INC. (hereinafter referred to as ""CLIENT"") and
TRIBE COMMUNICATIONS, INC. (hereinafter referred to as ""TCI"").
1. CONDITIONS. This Agreement will not take effect, and TCI will have no
obligation to provide any service whatsoever, unless and until CLIENT returns a
signed copy of this Agreement to TCI (either by mail or facsimile copy). CLIENT
shall be truthful with TCI in regard to any relevant material regarding CLIENT,
verbally or otherwise, or this entire Agreement will terminate and all monies
paid shall be forfeited without further notice.
Agreed, CLIENTS INITIALS: _____________
Upon execution of this Agreement, CLIENT agrees to cooperate with TCI in
carrying out the purposes of this Agreement, keep TCI informed of any
developments of importance pertaining to CLIENT's business and abide by this
Agreement in its entirety.
2. SCOPE AND DUTIES. During the term of this Agreement, TCI will perform
the following services for CLIENT:
2.1 WEBCAST /CAPITAL FORMATION/ RETAIL SUPPORT DUTIES
Feature Company in monthly Internet Chat Webcasts;
Schedule monthly and quarterly radio interviews featuring client (to be
scheduled pursuant to availability) Capital Formation Assistance Add client
information and Archiving of Webcasts and interviews quarterly to
xxxxxx.xxx Conversion of all Webcasts and interviews to .wav,.mpg or
applicable format
Pre-announce all Webcasts to Market-Maker Database and Opt-In database
Post interviews on all OTC and Small/Micro Cap News and Message servers
[press releases NOT included]
2.1 [CONTINUED]
Assistance in distribution of company news as appropriate and in concert
with milestones and newsworthy events Participate in CLIENT due diligence
presentation(s) to market makers; Distribute CLIENT news and relevant
information to market makers, financial media, selected Internet stock
pages/threads and OTC analyst community; Provide general financial public
relations support to CLIENT
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2.2 ADVICE AND COUNSEL. TCI will provide advice and counsel regarding
CLIENT's strategic business and financial plans, strategy and negotiations with
potential lenders/investors, joint venture, corporate partners and others
involving financial and financially-related transactions.
2.3 INTRODUCTIONS TO THE INVESTMENT COMMUNITY. TCI has a familiarity or
association with numerous broker/dealers and investment professionals across the
country and will enable contact between CLIENT and/or CLIENT's affiliate to
facilitate business transactions among them. TCI shall use its contacts in the
brokerage community to assist CLIENT in establishing relationships with private
equity capital sources (venture capital, etc.) and securities dealers while
providing the most recent information about CLIENT to interested securities
dealers on a regular and continuous basis. TCI understands that this is in
keeping with CLIENT's business objectives and plan to market CLIENT's business
or project to the investment community.
2.4 CLIENT AND/OR CLIENT'S AFFILIATE TRANSACTION DUE DILIGENCE. TCI will
participate and assist CLIENT in the due diligence process on all
proposed financial transactions affecting CLIENT of which TCI is
notified in writing in advance, including conducting investigation of
and providing advice on the financial, valuation and stock price
implications of the proposed transaction(s).
2.5 ADDITIONAL DUTIES. CLIENT and TCI shall mutually agree upon any
additional duties that TCI may provide for compensation paid or payable by
CLIENT under this Agreement. Although there is no requirement to do so, such
additional agreement(s) may be attached hereto and made a part hereof by written
amendments to be listed as "Exhibits" beginning with "Exhibit A" and initialed
by both parties.
2.6 STANDARD OF PERFORMANCE. TCI shall devote such time and efforts to the
affairs of the CLIENT as is reasonably necessary to render the services
contemplated by this Agreement. TCI is not responsible for the performance of
any services which may be rendered hereunder if the CLIENT fails to provide the
requested information in writing prior thereto. The services of TCI shall not
include the rendering of any legal opinions or the performance of any work that
is in the ordinary purview of a certified public accountant. TCI cannot
guarantee results on behalf of CLIENT, but shall use commercially reasonable
efforts in providing the services listed above. If an interest is expressed in
satisfying all or part of CLIENT's financial needs, TCI shall notify CLIENT and
advise it as to the source of such interest and any terms and conditions of such
interest. TCI's duty is to introduce and market CLIENT's funding request to
appropriate funding sources. TCI will in no way act as a "broker--dealer" under
state securities laws. Because all final decisions pertaining to any particular
investment are to be made by CLIENT, CLIENT may be required to communicate
directly with potential funding sources.
2.7 NON-GUARANTEE. TCI MAKES NO GUARANTEE THAT TCI WILL BE ABLE TO
SUCCESSFULLY MARKET AND IN TURN SECURE A LOAN OR INVESTMENT FINANCING FOR
CLIENT, OR TO SUCCESSFULLY PROCURE SUCH LOAN OR INVESTMENT WITHIN CLIENTS
DESIRED TIMEFRAME OR TO GUARANTEE THAT IT WILL SECURE ANY LOAN OR INVESTMENT
FINANCING WITH A SPECIFIC OR MINIMUM RETURN, INTEREST RATE OR OTHER TERMS.
NEITHER ANYTHING IN THIS AGREEMENT TO THE CONTRARY NOR THE PAYMENT OF DEPOSITS
TO TCI BY CLIENT PURSUANT TO FEE AGREEMENTS FOR SERVICES NOT CONTEMPLATED HEREIN
SHALL BE CONSTRUED AS ANY SUCH GUARANTEE. ANY COMMENTS MADE REGARDING POTENTIAL
TIME FRAMES OR ANYTHING THAT PERTAINS TO THE OUTCOME OF CLIENT'S FUNDING
REQUESTS ARE EXPRESSIONS OF OPINION ONLY. CLIENT ACKNOWLEDGES AND AGREES IT IS
NOT REQUIRED TO MAKE EXCLUSIVE USE OF TCI FOR ANY SERVICES OR DOCUMENTATION
DEEMED NECESSARY FOR THE PURPOSE OF SECURING INVESTMENTS. TCI HAS MADE NO SUCH
DEMANDS IN ORDER FOR CLIENT'S PROJECT TO BE MARKETED UNDER THE TERMS OF THIS
AGREEMENT. TCI HOLDS NO EXCLUSIVE RIGHTS TO THE MARKETING OF CLIENT'S PROJECT.
Agreed, CLIENT INITIALS:____________
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3. COMPENSATION TO TCI.
3.1 CLIENT will pay for services described herein. The fees shown below
shall be payable as follows:
A] INITIAL PAYMENT: 250,000 FREE TRADING SHARES
OF CSOL
B] DUE UPON COMPLETION OF 1ST WEBCAST 500,000 UNREGISTERED SHARES
OF CSOL*
C] MONTHLY: $3,500
D] DUE THE FIRST DAY OF MONTHS FOUR AND SEVEN: 500,000 UNREGISTERED SHARES
OF CSOL*
*NOTE: ALL SHARES ISSUED IN ACCORDANCE WITH THIS AGREEMENT SHALL HAVE STANDARD
"PIGGY-BACK" REGISTRATION RIGHTS.
3.2 FEES FOR DIRECT INVESTMENT, MERGER/ACQUISITION. In the event that TCI,
on a non-exclusive basis, introduces CLIENT or a CLIENT affiliate to any third
party funding source(s), underwriter(s), merger partner(s) or joint venture(s)
who then enters into a funding, underwriting, merger, joint venture or similar
agreement with CLIENT or CLIENT's affiliate, CLIENT hereby agrees to pay TCI
advisory fees pursuant to the following schedule and based on the aggregate
amount of such funding, underwriting, merger, joint venture or similar agreement
with CLIENT or CLIENT's affiliate. Advisory fees are deemed earned and shall be
due and payable at the first close of the transaction, however, in certain
circumstances when payment of advisory fees at closing is not possible, within
24 hours after CLIENT has received the proceeds of such investment. This
provision shall survive this Agreement for a period of one year after
termination or expiration of this Agreement. In other words, the advisory fee
shall be deemed earned and due and payable for any funding, underwriting,
merger, joint venture or similar transaction which first closes within a year of
the termination or expiration of this Agreement as a result of an introduction
as set forth above. TCI shall also be entitled to 50.0% of the investment
marketing fee outlined in paragraph 3.2 A or B below in connection with any and
all investment offers from CLIENT or any other source (not including those
introduced by TCI) when TCI is invited to participate or assist in negotiations.
Agreed, CLIENT INITIALS: ________________
A. DIRECT INVESTMENT. For a direct investment made in CLIENT by a third
party investor either introduced to CLIENT by TCI or which contacted CLIENT
directly as a result of TCI's efforts, CLIENT shall pay TCI a finder' s fee of
5.0 % of total investment amount received by CLIENT from the third party
investor.
4. TERM/TERMINATION. This Agreement is a quarterly agreement for the term
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of one [1] year and shall terminate automatically on January 2, 2002.
5. NON CIRCUMVENTION. In and for valuable consideration, CLIENT hereby
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agrees that TCI may introduce (whether by written, oral, data, or other form of
communication) CLIENT to one or more opportunities, including, without
limitation, existing or potential investors, lenders, borrowers, trusts, natural
persons, corporations, limited liability companies, partnerships, unincorporated
businesses, sole proprietorships and similar entities (an ""Opportunity"" or
""Opportunities""). CLIENT further acknowledges and agrees that the identity of
the subject Opportunities, and all other information concerning an Opportunity
(including without limitation, all mailing information, phone and fax numbers,
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email addresses and other contact information) introduced hereunder are the
property of TCI, and shall be treated as confidential information by CLIENT, it
affiliates, officers, directors, shareholders, employees, agents,
representatives, successors and assigns. CLIENT shall not use such information,
except in the context of any arrangement with TCI in which TCI is directly and
actively involved, and never without TCI's prior written approval. CLIENT
further agrees that neither it nor its employees, affiliates or assigns, shall
enter into, or otherwise arrange (either for it/him/herself, or any other person
or entity) any business relationship, contact any person regarding such
Opportunity, either directly or indirectly, or any of its affiliates, or accept
any compensation or advantage in relation to such Opportunity except as directly
though TCI, without the prior written approval of TCI. TCI is relying on
CLIENT's assent to these terms and their intent to be bound by the terms by
evidence of their signature. Without CLIENT's signed assent to these terms, TCI
would not introduce any Opportunity or disclose any confidential information to
CLIENT as herein described.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed, all as of the day and year first above written.
CLIENT:
THE COMPANY
By: /s/ Xxx Risk
---------
Xxx Risk
Its: Executive Vice President
Address: 000 Xxxxxxxxx Xxxxxx
Xxxxxxx, XX 00000
Contact Person: Xxx Risk
TCI:
TRIBE COMMUNICATIONS, INC.
By: /s/ Xxxxxxx X. Xxxxxx
---------------------
Xxxxxxx X. Xxxxxx
Its: VP Marketing
Address: 000 X. Xxx Xxxxxx Xxxxx 0000
Xxx Xxxxx, XX 00000
Contact Person: Xxxx Xxxxxx
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FEES:
A) PAYMENT DUE UPON EXECUTION AND 1,000,000 Shares of CSOL
ACCEPTANCE OF THIS AGREEMENT: with S-8 Registration Rights
B) DUE MONTHLY BEGINNING JULY 1ST: $5,000.00
C) ALL OTHER STOCK COMMITMENTS DUE TO TCI FROM ORIGINAL AGREEMENT REMAIN IN
EFFECT. NOTWITHSTANDING THE FOREGOING, NO COMPENSATION OR STOCK OTHER
THAN WHAT HAS BEEN PREVIOUSLY PAID IS OWED OTHER THAN AS DESCRIBED IN
THIS AGREEMENT FOR SERVICES RENDERED FROM INCEPTION TO JULY 1, 2001.
*NOTE: THIS AGREEMENT SUPERCEDES EXISTING AGREEMENT DATED JANUARY 3, 2001.
THIS MODIFICATION SHALL ONLY EFFECT SECTIONS 2.1 AND 3.1. ALL OTHER TERMS AND
CONDITIONS SHALL REMAIN IN EFFECT.
CALL-Solutions, INC.
BY: /s/ XXXXX XXX XXXXX
XXXXX XXX XXXXX
ITS: CEO
TRIBE COMMUNICATIONS, INC. (TCI)
BY: /s/ XXX XXXXXXXX
XXX XXXXXXXX
ITS: CEO
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