CONSULTING AGREEMENT
AGREEMENT, made this 16th day of March, 2006 by and between Dermisonics,
Inc., having its principal place of business at 0 Xxxx Xxxxx, Xxxxx 000, Xxxxxx,
Xxxxxxxxxx 00000 (hereinafter the "Company"), and International Market Trend,
Inc., having its principal place of business at #100 - 0000 Xxxxxxx Xxxxx,
Xxxxxxxxxx, XX, 00000 (hereinafter the "Consultant).
WHEREAS, the Company desires to retain the Consultant for consulting
services in connection with financial and investor public relations and related
matters in the United States and the Consultant desires to provide such services
as set forth herein.
NOW, THEREFORE, in consideration of the premises and mutual covenants and
agreements set forth herein and for other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties, intending to
be legally bound, agree as follows:
A. CONSULTATION
1. Consultant. The Company hereby retains the Consultant to render to
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the Company the consulting services as described in Section B hereof, and the
Consultant hereby accepts such assignment upon the terms and conditions
hereinafter set forth.
2. Independent Relationship. The Consultant shall provide the
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consulting services required to be rendered by it hereunder solely as an
independent contractor and nothing contained herein shall be construed as giving
rise to an employment or agency relationship, joint venture, partnership or
other form of business relationship.
3. No Authority to Obligate the Company. Without the consent of the
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board of directors or appropriate officer of the Company, the Consultant shall
have no authority to take, nor shall it take, any action committing or
obligating the Company in any manner, and it shall not represent itself to
others as having such authority.
4. Term. The term of the Consultant's consultation to the Company
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hereunder shall commence as of the date hereof and shall extend for a term of
one (1) year.
B. OBLIGATIONS OF THE CONSULTANT
1. Consulting Services. During the term of this Agreement, Consultant
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will render advice and assistance to the Company on business related matters and
in connection therewith the Consultant shall use its best efforts to:
a. Establish a financial public relations methodology designed to
increase awareness of the Company within the investment community.
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b. Assist the Company in the accurate communication and dissemination
of its business plan as well as other relevant information provided by the
company to the financial marketplace.
c. Expose the Company to a broad network of active retail brokers,
financial analysts, institutional fund managers, private investors and
active financial newsletter writers.
d. Assist the Company in obtaining financial institution coverage.
e. Assist the Company in preparing the Company's due diligence
reports, corporate profile and fact sheets for the investment community.
f. Assist the Company in preparing investment conferences with
financial institutions or individual investors.
g. Conduct tele-marketing campaigns to the investment community and
brokerage community and conduct tele-conferences, Company executive(s),
brokers, financial analysts, fund managers and other interested
participants. . h. Assist the Company in the preparation of all press
releases and coordinate the release thereof by way of a Company paid
account with PR NewsWire or BusinessWire.
i. Create, build and continually enhance an email database of all
brokers, investors, analysts and media contacts who have expressed an
interest in receiving on-going information on the Company.
j. E-mail press releases, corporate announcements, broker updates and
Company news developments to the Consultant's e-mail database of brokers,
institutional fund managers, financial analysts and industry professionals.
k. Serve as the Company's external publicist and endeavor to obtain
media coverage relating to the Company in both trade and industry press, on
local and national radio and/or TV programming, in subscription-based
financial newsletters, and on the worldwide web.
l. Introduce the Company to various fund managers and institutional
investors.
m. Assist the Company with respect to investment banking services.
ALL OF THE FOREGOING CONSULTANT PREPARED DOCUMENTATION CONCERNING THE COMPANY,
INCLUDING, BUT NOT LIMITED TO, DUE DILIGENCE REPORTS, CORPORATE PROFILE, FACT
SHEETS, AND QUARTERLY NEWSLETTERS, SHALL BE PREPARED BY THE CONSULTANT FROM
MATERIALS SUPPLIED TO IT BY THE COMPANY AND SHALL BE APPROVED BY THE COMPANY IN
WRITING PRIOR TO
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DISSEMINATION BY THE CONSULTANT.
2. Nonexclusive Engagement; Extent of Services.
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a. The parties agree that the consultation contemplated by this
Agreement is a nonexclusive engagement and that the Consultant now
renders and may continue to render consulting services to other companies
which may or may not conduct activities similar to those of the Company.
b. The Consultant will devote such time and effort to the affairs of
the Company as the Consultant deems reasonable and adequate to render the
consulting services contemplated by this Agreement. The Consultant's work
will not include any services that constitute the rendering of any legal
opinions or performance of work that is in the ordinary purview of
certified public accountants.
3. Confidentiality. The Consultant will not, either during its
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engagement by the Company pursuant to this Agreement or at any other time
thereafter, disclose, use or make known for its or another's benefit, any
confidential information, knowledge, or data of the Company or any of its
affiliates in any way acquired or used by the Consultant during its engagement
by the Company. Confidential information, knowledge or data of the Company and
its affiliates shall not include any information which is or becomes generally
available to the public other than as a result of a disclosure by the Consultant
or its representatives.
C. OBLIGATIONS OF THE COMPANY.
1. Compensation.
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a. Subject to the provisions of Section b, below, in consideration of
the services to be rendered by the Consultant hereunder, the Company shall
issue to the Consultant or his designees an aggregate of 400,000 fully paid
and non-assessable shares (the "Shares") of the common stock of the
Company, par value $0.001 per share.
b. In connection with, and in consideration of, the issuance of the
Shares to the Consultant, the Consultant hereby agrees with and represents
and warrants to the Company as follows:
i. The Consultant is acquiring the Shares for the undersigned's own
account, for investment purposes only and not with a view toward their
resale or distribution.
ii. The Consultant understands that the Shares are not freely
transferable and will not be freely transferable for an extended period of
time and that, as a consequence thereof, the undersigned may have extremely
limited opportunities to dispose of the Shares. The Consultant understands
that Rule 144 of the Securities Act of 1933, as amended (the "Act")
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permits the transfer of "restricted securities" of the type herein
involved under certain conditions, but the Company may not in the future
meet the conditions to the application of Rule 144, including, inter alia,
the condition that current detailed information concerning the Company be
publicly available.
iii. The Consultant will not transfer any of the Shares either (a) in
the absence of an effective registration under the Act and state securities
laws ("Laws"), or (b) without obtaining an opinion of an counsel reasonably
acceptable to the Company, which opinion shall be addressed, and
satisfactory in form and substance, to the Company and its counsel, stating
that the transaction is exempt from the registration requirements of the
Act and Laws.
iv. Until freely transferable, the Company may refuse to authorize any
transfer by the Consultant of any of the Shares if the proposed transferee
does not make written representations and agreements to the Company and the
undersigned in form and substance similar to those contained herein, or if
any circumstances are present which reasonably indicate that such
transferee's representations are not accurate.
v. A stop transfer order will be entered on the Company's records
respecting the Shares and a restrictive legend will be affixed to the
certificate evidencing the Shares substantially in the following form:
(A)
"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS."
(B) In addition, the Company shall be entitled to imprint the
certificate evidencing the Shares with any State legend, if required.
vi. The Consultant agrees to save, hold harmless, defend and indemnify
the Company from any claims, liabilities, or nonperformance by the
undersigned of any representation, warranty or agreement contained in this
letter.
vii. The Consultant understands and acknowledges that the Company is
under no obligation to prepare a registration statement covering the
public resale of the Shares nor
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does the undersigned have a right to include the Shares in any registration
statement that the Company may prepare in the future.
2. Reimbursement of Expenses.
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a. Out-of-Pocket Expenses. The Company shall reimburse the Consultant
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for actual out-of-pocket expenses including, but not limited to, facsimile,
postage, printing, photocopying, and entertainment, incurred by the Consultant
without the prior consent of the Company and in connection with the performance
by the Consultant of its duties hereunder in amounts up to three hundred dollars
(S300) per month. The prior consent of the Company shall be required for
reimbursement of expenses in excess of three hundred dollars ($300) per month.
b. Travel and Related Expenses. The Company shall reimburse the
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Consultant for the costs of all travel and related expenses incurred by the
Consultant in connection with the performance of its services hereunder,
provided that all such costs and expenses have been authorized, in advance, by
the Company.
c. General. Expenses shall be due and payable when billed and after
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they have been incurred.
D. MISCELLANEOUS.
1. Entire Agreement. This Agreement contains the entire agreement
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between the parties with respect to the engagement of Consultant by the Company
as a consultant and supersedes and replaces any and all prior understandings,
agreements or correspondence between the parties relating to the subject matter
hereof.
2. Modification and Waiver. No supplement, modification or amendment
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of this Agreement shall be binding unless executed in writing by both the
parties hereto. No waiver of any other provisions hereof (whether or not
similar) shall be binding unless executed in writing by both the parties hereto
nor shall such waiver constitute a continuing waiver.
3. Governing Law. This Agreement has been made in and shall be
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interpreted according to the laws of the State of California without any
reference to the conflicts of laws rules thereof. The parties hereto submit to
the jurisdiction of the courts of the State of California for the purpose of any
actions or proceedings which may be required to enforce any of the provisions of
this agreement.
4. Successors and Assigns. This Agreement shall inure to the benefit
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of and be binding upon the Company and its successors and assigns and upon the
Consultant and the Consultant's successors and assigns.
5. Severability. If any provision or provisions of this agreement
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shall be held to be invalid, illegal or unenforceable for any reason whatsoever:
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a. the validity, legality and enforceability of the remaining
provisions of this Agreement (including, without limitation, each portion
of any Section of this Agreement containing any such provision held to be
invalid, illegal or unenforceable) shall not in any way be affected or
impaired thereby; and
b. to the fullest extent possible, the provisions of this Agreement
(including, without limitation, each portion of any Section of this
agreement containing any such provision held to be invalid, illegal or
unenforceable) shall be construed so as to give effect to the intent
manifested by the provision held invalid, illegal or unenforceable.
6. Further Assurances. From and after the execution and delivery of
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this Agreement, upon request of either party, the other shall do, execute,
acknowledge and deliver all such further acts, assurances and other instruments
and papers as may be required to carry out the transactions contemplated by this
agreement.
7. Headings. The headings of the paragraphs of this agreement are
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inserted for convenience only and shall not be deemed to constitute part of this
agreement or to affect the construction hereof.
8. Notices. Any notice to be given hereunder shall be given in
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writing. All notices under this Agreement shall be either hand delivered
receipt acknowledged, or sent by registered or certified mail, return receipt
requested as follows:
(a) If to the Company, to: Dermisonics, Inc.
0 Xxxx Xxxxx, Xxxxx 000
Xxxxxx, Xxxxxxxxxx 00000
Attn.: Xx. Xxxxx Xxxxxxx
Facsimile No.: (000) 000-0000
(b) If to the Consultant, to: International Market Trend, Inc.
#100 - 0000 Xxxxxxx Xxxxx,
Xxxxxxxxxx, XX, 00000
Facsimile No.: (000) 000-0000
All such notices shall be deemed given when delivered, if personally delivered
as aforesaid, or within five business days after mailing, as aforesaid.
9. Execution. This Agreement may be executed in two or more
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counterparts, all of which when taken together shall be considered one and the
same agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party, it being understood that both
parties need not sign the same counterpart. In the event that any signature is
delivered by facsimile transmission, such signature shall create a valid and
binding obligation of the
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party executing (or on whose behalf such signature is executed) the same with
the same force and effect as if such facsimile signature page were an original
thereof.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year first written above.
DERMISONICS, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Xxxxx X. Xxxxxxx, Chairman
INTERNATIONAL MARKET TREND, INC.
By:
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Xxxxx Xxxxxx, President
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