CONSULTING AGREEMENT
This CONSULTING AGREEMENT ("Agreement") is made and entered into in
duplicate on August 1, 2003 ("Effective Date"), by and between Aegis
Assessments, Inc., a Delaware corporation ("Corporation"), and Xxxxx Xxxxx
("Consultant").
RECITALS
A. It is the desire of the Corporation to develop and implement a
business development strategy for the commercial exploitation of the
Corporation's products and technologies, including but not limited to
(i) the Aegis SafetyNet(TM)Mobile Command Post ("Aegis
SafetyNet(TM)"), a mobile wireless communication solution and
information-sharing platform for emergency responders, and (ii) the
EKHO(TM)radio bridge, a stand-alone product in the process of
development which creates a "bridge" between radios operating on
different frequencies (for purposes of this Agreement, the Aegis
SafetyNet(TM)and the EKHO(TM), as well as related wireless technology
and software, may be collectively referred to herein as the
"Products"). The business development strategy shall include
development of markets in homeland defense, environmental protection,
and other private commercial security applications.
B. It is further the desire of the Corporation to engage the services of
the Consultant to consult with the Corporation regarding the
development and implementation of the Corporation's business
development strategy.
C. It is the desire of the Consultant to so consult with the Board of
Directors of the Corporation ("Board") and the officers of the
Corporation concerning the development and implementation of the
SafetyNet(TM) and the Products, and to further provide the Corporation
with his expertise in business development to promote the commercial
exploitation of the SafetyNet(TM) and the Products with businesses and
government agencies.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES, COVENANTS AND
UNDERTAKINGS HEREIN SPECIFIED AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE
RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, WITH THE INTENT TO BE
OBLIGATED LEGALLY AND EQUITABLY, THE PARTIES AGREE AS FOLLOWS:
1. Term and Termination of Agreement. The respective duties and
obligations of the parties shall commence on the Effective Date and shall
continue until and terminate on August 1, 2004; provided, however, that either
party may terminate this Agreement upon thirty (30) days' written notice to the
other party.
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2. Consultations. The Consultant shall consult with the Board and the
Chief Executive Officer (CEO) of the Corporation, at reasonable times,
concerning any issue of importance regarding the development and implementation
of marketing strategies for the Products. The Consultant will be responsible to
the Board and the CEO for formulating a business development strategy to promote
use of the Products by state and federal public safety agencies, and in the
private commercial security sector. Consultant will:
|X| Consult with the CEO to devise an overall business development strategy
|X| Identify potential technology partners
|X| Co-ordinate security association marketing efforts and security trade
publication coverage of the Products with the Security Industry Association
(SIA) when so directed by the CEO
|X| Advise the Corporation on business strategies relating to the acquisition
of competing or complementary technologies and/or businesses
|X| At the request of the CEO, assist the Corporation to structure such
acquisitions of technology or business entities as the Board finds
appropriate
|X| Identify the appropriate point of contact ("POC") for public safety
agencies, including but not limited to state and federal government
agencies, which have a need for the Corporation's technologies in homeland
defense, environmental protection, and other applications
|X| Make initial contacts with such POCs to ascertain their level of interest
in the Products and the availability of funding for each such agency's
purchase or lease of the Products
|X| Maintain a database of such POCs and develop a marketing plan and contact
schedule to educate POCs on the Products
|X| Maintain a database of government RFPs (Requests for Proposals) |X|
Identify potential product distributors in geographic areas specified by
the CEO |X| Assist the Corporation to develop and maintain distribution
agreements for the Products
|X| Assist the Corporation to identify opportunities and/or problem areas in
technology acquisition and licensing
|X| After approval from the Board or the CEO, increase the Corporation's
profile and name recognition in various distributors' territories by
sponsoring, hosting or participating in the corporate sponsorship of
various promotional and civic events designed to market and promote the
Corporation and its Products
|X| At the direction of the CEO, consult with other officers of the Corporation
regarding the above
|X| Consult with the Chief Operating Officer (COO) regarding initiatives with
the Department of Homeland Security (DHS) and any agencies consolidated
with the DHS
|X| Consult with the Chief Technology Officer (CTO) from time to time as
directed by the Board, the CEO or the COO regarding the Products and new
products and technologies Assist in special projects, as directed by the
Board or the CEO
3. Office Facilities. During the term of this Agreement the Consultant
shall, at his own expense, provide his own office facilities and staff
sufficient for the purposes contemplated by this Agreement.
4. No Management Power of Consultant. The business affairs of the
Corporation and the operation of the business of the Corporation shall be
conducted by the officers and administrative staff and employees of the
Corporation. The Consultant shall not have any power or obligation of direction,
management, supervision or control of the officers, administrative staff or
other employees of the Corporation or otherwise be involved with the management
of the business of the Corporation during the term of this Agreement.
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5. Authority to Contract. The Consultant shall have no power to, and
the Consultant shall not, obligate the Corporation in any manner whatsoever to
any contract, agreement, undertaking, commitment or other obligation.
6. Compensation. In lieu of cash compensation, the Corporation shall
issue and deliver to Consultant 200,000 shares of the Corporation's common stock
as soon as practicable after the Effective Date. Thereafter, from time to time
during the term of this Agreement, and at the sole discretion of the Board, the
Corporation may issue additional tranches of common stock based on Consultant's
satisfactory performance of services hereunder, up to a maximum of an additional
500,000 shares during the term of this Agreement. Consultant shall make periodic
reports to the Board specifying the services performed for the Corporation by
the Consultant, and Consultant shall provide the Board with such documentation
and information as is necessary for the Board to evaluate the Consultant's
performance of his obligations under this Agreement. The Corporation shall make
good faith efforts to register stock issued or to be issued to the Consultant
pursuant to this Agreement as soon as practicable after the Effective Date;
provided that the Corporation reserves the right to accelerate, delay or extend
the issuance of such tranches based on the Consultant's performance hereunder;
and further provided that the Corporation reserves the right to deregister any
stock contemplated by this Agreement which Consultant does not earn by
performance of his obligations under this Agreement.
7. Training Requirements. The Consultant acknowledges that the Products
contain cutting-edge technologies which will require that Consultant acquire and
maintain a minimum level of technical training and knowledge in order that
Consultant may adequately perform his obligations pursuant to this Agreement.
The Consultant will therefore be required to attend, at his own expense, a
training session at the Corporation's main offices in Newport Beach, California,
which will be conducted by the Corporation's technical staff, within sixty (60)
days of the Effective Date of this Agreement. When and as the Corporation
develops new technologies, modifies the existing Products, and develops new
products, Consultant will be required, upon sixty (60) days notice from the
Corporation, to attend (at his own expense) additional training sessions, as the
Corporation deems appropriate, to maintain a minimum level of knowledge
regarding the Products and new products subject to this Agreement.
8. Services of Consultant Not Exclusive. The Consultant shall devote
such time as is necessary to fulfill his obligations to the Corporation
specified in this Agreement. The Consultant may represent, perform services for,
and be employed by, any additional persons as the Consultant, in the
Consultant's sole discretion, determines to be necessary or appropriate;
provided, however, that such performance by Consultant does not interfere with
Consultant's performance of services to the Corporation specified in this
Agreement.
9. Relationship Created. The Consultant is not an employee of the
Corporation for any purpose whatsoever, but is an independent contractor. The
Corporation is interested only in the results obtained by the Consultant. The
Consultant shall have the sole and exclusive control of the manner and means of
performing. Accordingly, and without limitation, the Corporation shall not have
the right to require the Consultant to collect accounts, investigate customer or
shareholder complaints, attend meetings, periodically report to the Corporation,
follow prescribed itineraries, keep records of business transacted, make
adjustments, conform to particular policies of the Corporation, or do anything
else outside of requiring the Consultant to consult with the Corporation
concerning the development and implementation of the SafetyNet.(TM) All expenses
and disbursements, including, but not limited to, those for travel and
maintenance, entertainment, office, clerical and general administrative
expenses, that may be incurred by the Consultant in connection with this
Agreement shall be borne and paid wholly and completely by the Consultant, and
the Corporation shall not be in any way responsible or liable therefor.
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10. New Developments. Consultant agrees that all designs, plans,
reports, specifications, drawings, inventions, processes, and other information
or items produced by Consultant concerning the development and implementation of
the SafetyNet(TM) and the Products will be assigned to the Corporation as the
sole and exclusive property of the Corporation and the Corporation's assigns,
nominees and successors, as will any copyrights, patents or trademarks obtained
by or contributed to by Consultant while performing services under this
Agreement concerning the development and implementation of the SafetyNet(TM) and
the Products. On request and at the Corporation's expense, Consultant agrees to
help the Corporation obtain patents and copyrights for any new developments.
This includes providing data, plans, specifications, descriptions,
documentation, and other information, as well as assisting the Corporation in
completing any required application or registration and signing any waiver or
release of rights in such patents and copyrights.
11. Non-Disclosure of Proprietary and Confidential Information By
Consultant. During the term of this Agreement, Consultant may have access to
Corporation Proprietary Information (as used in this Agreement, the term
"Corporation Proprietary Information" shall mean and include, without
limitation, any and all marketing and sales data, plans and strategies,
financial projections, client lists, prospective client lists, promotional
ideas, data concerning the Corporation's services, designs, methods, inventions,
improvements, discoveries, designs whether or not patentable, "know-how",
training and sales techniques, and any other information of a similar nature
disclosed to Consultant or otherwise made known to Consultant as a consequence
of or through this Agreement during the term hereof. The term Corporation
Proprietary Information shall not include any information that (i) at the time
of the disclosure or thereafter is or becomes generally available to and known
by the public, other than as a result of a disclosure by Consultant or any agent
or representative of Consultant in violation of this Agreement, or (ii) was
available to Consultant on a non-confidential basis from a source other than the
Corporation, or any of the Corporation's officers, directors, employees, agents
or other representatives) or other information and data of a secret and
proprietary nature which the Corporation desires to keep confidential.
Consultant (and any of his affiliates, related entities, partners, agents and/or
employees) agrees and acknowledges that the Corporation has exclusive
proprietary rights to all Corporation Proprietary Information, and Consultant
hereby assigns to the Corporation all rights that he might otherwise possess in
any Corporation Proprietary Information. Except as required in the performance
of Consultant's duties to the Corporation, Consultant will not at any time
during or after the term hereof, directly or indirectly use, communicate,
disclose, disseminate, lecture upon, publish articles or otherwise put in the
public domain, any Corporation Proprietary Information. Consultant agrees to
deliver to the Corporation any and all copies of Corporation Proprietary
Information in the possession or control of Consultant upon the expiration or
termination of this Agreement, or at any other time upon request by the
Corporation. The provisions of this section shall survive the termination of
this Agreement.
12. Non-Competition and Non-Circumvention by Consultant. In
consideration and recognition of the fact that Consultant has access to
Corporation Proprietary Information under the terms and provisions of this
Agreement and that the Corporation will be introducing Consultant to various
customers and potential customers, product manufacturers, retailers and
distributors, Consultant represents, warrants and covenants to the Corporation
as follows:
(a) Consultant shall at no time disclose to any person,
without the Corporation's prior written consent, any
of the terms, conditions or provisions specified in
this Agreement unless such disclosure is lawfully
required by any federal governmental agency or is
otherwise required to be disclosed by law or is
necessary in any legal proceeding regarding the
subject matter of this Agreement.
(b) During the term of this Agreement, Consultant shall
not circumvent the Corporation for the purpose of
transacting any business with any person or entity
which business shall interfere with any relationship
whatsoever between such person or entity and the
Corporation, or use any Corporation Proprietary
Information to compete with the business of the
Corporation.Consultant shall not solicit any of the
Corporation's employees, independent contractors or
agents for employment. Consultant shall not hire or
engage in any way, any enterprise or person that
competes with, or is engaged in a business
substantially similar to, the business of the
Corporation.
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(c) Consultant shall not for a period of two (2) years
immediately following the termination of this
Agreement with Corporation, either directly or
indirectly (i) make known to any person, firm or
corporation the names or addresses of any of the
Corporation's clients or any other information
pertaining to them or the Corporation's products or
services; (ii) call on, solicit, or take away, or
attempt to call on, solicit or take away any of the
Corporation's clients either on Consultant's behalf
or that of another person, firm or corporation.
(d) Consultant shall not, during the term hereof or for a
period of two (2) years following such term, enter
into an agreement or contract directly with any
manufacturer, retailer or distributor introduced to
Consultant by the Corporation for any services
provided by the Corporation herein or for any similar
services.
(e) Consultant acknowledges and agrees that the
representations, warranties and covenants made by
Consultant and set forth in this section are material
and that the Corporation would not enter into this
Agreement without Consultant's making such
representations, warranties and covenants to the
Corporation.
(f) Consultant acknowledges and agrees that any breach by
Consultant of the representations, warranties and
covenants contained herein will cause irreparable
harm and loss to the Corporation, which harm and loss
cannot be reasonably or adequately compensated in
damages in an action at law. Therefore, Consultant
expressly agrees that, in addition to any other
rights or remedies which the Corporation may possess,
the Corporation shall be entitled to injunctive and
other equitable relief to prevent or remedy a breach
of the representations, warranties and covenants made
by Consultant herein.
(g) The terms and provisions of this section shall
survive the termination of this Agreement for a
period of two (2) years.
13. Indemnification. Each party shall defend and hold the other party
harmless from and against, and shall indemnify the other party for, any loss,
liability, damage, judgment, penalty or expense (including administrative costs
and expenses, attorney's fees and costs of defense) suffered or incurred by any
person, or to any property, in relation to any action or inaction taken by such
party, whether intentional, negligent or otherwise, or by any of such party's
affiliates, directors, officers, employees, representatives or agents (including
attorneys, accountants and financial advisors).
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14. Governmental Rules and Regulations. The provisions of this
Agreement are subject to any and all present and future statutes, orders, rules
and regulations of any duly constituted authority having jurisdiction of the
relationship and transactions defined by this Agreement.
15. Notices. All notices, requests, demands or other communications
pursuant to this Agreement shall be in writing or by facsimile transmission and
shall be deemed to have been duly given (i) on the date of service, if delivered
in person or by facsimile transmission (with the facsimile confirmation of
transmission receipt serving as confirmation of service); or (ii) 48 hours after
mailing by first class, registered or certified mail, postage prepaid, and
properly addressed as follows:
If to the Corporation: Aegis Assessments, Inc.
0000 Xxxxxxx Xxxxx, Xxxxx 000
Xxxxxxx Xxxxx, XX 00000
Fax: 000.000.0000
If to the Consultant: Xxxxx Xxxxx
000 Xxxxxx Xxxxx Xx Xxxx
Xxxxxxxxx, XX 00000
or at such other address as the party affected may designate in a written notice
to such other party in compliance with this paragraph.
16. Entire Agreement. This Agreement constitutes the final, complete,
and exclusive agreement between the parties with respect to the subject matter
hereof and supersedes all prior oral and written, and all contemporaneous oral
negotiations, agreements, and understandings. This Agreement may be amended only
by an instrument in writing which expressly refers to this Agreement and
specifically states that such instrument is intended to amend this Agreement and
is signed on behalf of both parties.
17. Execution in Counterparts. This Agreement many be executed in
several counterparts and by facsimile, each of which shall be deemed an
original, but all of which shall constitute one and the same instrument.
18. Choice of Law and Consent to Jurisdiction. All questions concerning
the validity, interpretation or performance of any of the terms, conditions and
provisions of this Agreement or of any of the rights or obligations of the
parties, shall be governed by, and resolved in accordance with, the laws of the
State of California. Any and all actions or proceedings, at law or in equity, to
enforce or interpret the provisions of this Agreement shall be litigated in
courts having situs within the State of California.
19. Assignability. Neither party shall sell, assign, transfer, convey
or encumber this Agreement or any right or interest in this Agreement or
pursuant to this Agreement, or suffer or permit any such sale, assignment,
transfer or encumbrance to occur by operation of law without the prior written
consent of the other party.
20. Consent to Agreement. By executing this Agreement, each party, for
himself, represents such party has read or caused to be read this Agreement in
all particulars, and consents to the rights, conditions, duties and
responsibilities imposed upon such party as specified in this Agreement.
21. Attorney's Fees. In the event of a legal proceeding between the
parties to enforce a provision under this Agreement, the prevailing party to
such action shall be entitled to recover from the other party its reasonable
attorney's fees and costs for participating in the legal action. The parties
agree to attempt to resolve any dispute through non-binding arbitration or
mediation before initiating any legal proceeding, and the parties shall bear
their own costs of such arbitration or mediation.
22. Severability. To the extent any provision of this Agreement shall
be determined to be unlawful or otherwise unenforceable, in whole or in part,
such determination shall not affect the validity of the remainder of this
Agreement, and this Agreement shall be reformed to the extent necessary to carry
out its provisions to the greatest extent possible. In the absence of such
reformation, such part of such provision shall be considered deleted from this
Agreement and the remainder of such provision and of this Agreement shall be
unaffected and shall continue in full force and effect. In furtherance and not
in limitation of the foregoing, should the duration or geographical extent of,
or business activities covered by any provision of this Agreement be in excess
of that which is valid and enforceable under applicable law, then such provision
shall be construed to cover only that duration, extent or activities which may
validly and enforceably be covered. To the extent any provision of this
Agreement shall be declared invalid or unenforceable for any reason by any
Governmental or Regulatory Authority in any jurisdiction, this Agreement (or
provision thereof) shall remain valid and enforceable in each other jurisdiction
where it applies. Both parties acknowledges the uncertainty of the law in this
respect and expressly stipulate that this Agreement shall be given the
construction that renders its provisions valid and enforceable to the maximum
extent (not exceeding its express terms) possible under applicable law.
IN WITNESS WHEREOF the parties have executed this Agreement in
duplicate and in multiple counterparts, each of which shall have the force and
effect of an original, on the date specified in the preamble of this Agreement.
CORPORATION: CONSULTANT:
Aegis Assessments, Inc.,
a Delaware corporation
By: /s/ Xxxx Xxxxxxx /s/ Xxxx Xxxxxxx
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Xxxx Xxxxxxx Xxxx Xxxxxxx
Its: President
