CONSULTANT COMPENSATION AGREEMENT NO. 1
THIS CONSULTANT COMPENSATION AGREEMENT (the "Plan") is made
this 30th day of March, 1999, among Tecon, Inc., a Utah corporation ("Tecon");
and the following individuals who have executed and delivered this Plan by the
execution and delivery of the Counterpart Signature Pages which are designated
as Exhibits "A" through "D" hereof: Xxxxxx X. Xxxxxxx; Xxxxxxx X. Xxxxxx;
Xxxxx X. Xxxxxx; and Xxxxxx Xxxxxx (collectively, the "Consultants").
WHEREAS, the Board of Directors of Tecon has adopted a
written compensation agreement for compensation of four individual Consultants
who are natural persons; and
WHEREAS, Tecon has engaged the Consultants to provide
services at the request of and subject to the satisfaction of its management;
and
WHEREAS, the Consultants have provided services at the request
and subject to the approval of the management of Tecon; and
WHEREAS, a general description of the nature of the services
performed and to be performed by the Consultants and the maximum value of such
services under this Plan are listed in the Counterpart Signature Pages and
exhibits thereto; and
WHEREAS, Tecon and the Consultants intend that this Plan
and the services performed hereunder shall be made, requested and performed in
such a manner that this Plan shall be a "written compensation agreement" as
defined in Rule 405 of the Securities and Exchange Commission ("Commission")
pursuant to which Tecon may issue "freely tradeable" shares (except as may
be limited by "affiliate" status) of its common stock as payment for services
rendered pursuant to an S-8 Registration Statement to be filed with the
Commission by Tecon;
NOW, THEREFORE, in consideration of the mutual covenants and
promises contained herein, it is agreed:
Section 1
Compensation Plan
1.1 Employment. Tecon hereby employs the Consultants and the
consultants hereby accept such employment, and have and will perform the
services requested by management of Tecon to its satisfaction during the
term hereof. The services performed by the Consultants hereunder have been
and will be personally rendered by the Consultants, and no one acting for or
on behalf of the Consultants, except those persons normally employed by the
consultants in rendering services to others, such as secretaries, bookkeepers
and the like.
1.2 Independent Contractors. Regardless of the Consultants'
status as "employees" under Rule 405 of the Commission, all services rendered
by the Consultants hereunder have been rendered as independent contractors,
and the Consultants shall be liable for any FICA taxes, withholding or other
similar taxes or charges, and the Consultants shall indemnify and hold
Tecon harmless therefrom; it is understood and agreed that the value of all
such items has been taken into account by the Consultants in computing the
billable rate for the services the Consultants have rendered and agreed to
render to Tecon.
1.3 Term. All services performed at the request of Tecon by
the Consultants shall have been performed within 120 days from the date
hereof, at which time this Plan shall terminate, unless otherwise provided
herein; provided, however, this Plan may be extended for an additional 120 day
period by written agreement of Tecon and any of the Consultants.
1.4 Payment. Tecon and the Consultants agree that Tecon
shall pay the invoices of the Consultants for the services performed under
this Plan by the issuance of shares of its common stock at a price of $0.033
per share; provided, however, such shares of common stock shall be issued
pursuant to and shall be subject to the filing and effectiveness of a
Registration Statement on Form S-8 covering such shares with the Commission.
1.5 Invoices for Services. On the completion of rendering the
services performed by the Consultants hereunder, each of the Consultants shall
provide Tecon with a written invoice detailing the services duly performed.
Such invoice shall be paid by Tecon in accordance with Section 1.4 above,
subject to (i) the satisfaction of the management of Tecon that the services
have been performed, and to the extent performed, that the performance was in
a satisfactory manner; and (ii) prior completion of an Agreement and Plan of
Reorganization between Tecon, XxxXx.xxx, a California corporation ("BuyIt"),
and the stockholders and subscribers to purchase shares of common stock of
BuyIt (the "BuyIt Plan"). The submission of an invoice for the services
performed by each of the Consultants shall be deemed to be a subscription by
the respective Consultants to purchase shares of common stock of Tecon at
the price outlined in Section 1.4 above, subject only to the filing and
effectiveness of a Registration Statement on Form S-8 covering such shares
with the Commission, and the prior completion of the BuyIt Plan.
1.6 Common Stock Price. To the extent deemed required or
necessary and for all purposes of this Plan, the Consultants shall have an
"option" covering such shares of common stock at the per share price set forth
in paragraph 1.4 above during the term hereof; the Consultants assume the risk
of any decrease in the per share price or value of the shares of common stock
of Tecon that may be issued by Tecon for services performed by the
Consultants hereunder, and the Consultants agree that any such decrease shall
in no way affect the rights, obligations or duties of the Consultants
hereunder.
1.7 Limitation on Services. None of the services rendered by
the Consultants and paid for by the issuance of shares of common stock of
Tecon shall be services related to any "capital raising" transaction.
1.8 Delivery of Shares. On submission of an invoice for
services actually performed by the respective Consultants, and duly verified
to the satisfaction of Tecon, and subject to the filing and effectiveness
of a Registration Statement on Form S-8 of the Commission covering such
shares, and the prior completion of the BuyIt Plan, one or more stock
certificates representing such shares shall be delivered to the respective
Consultants at the addresses listed on the Counterpart Signature Pages, unless
another address shall be provided to Tecon in writing prior to the issuance of
such shares.
1.9 Adjustments in the Number of Shares of Common Stock and
Price Per Share. Tecon and the Consultants agree that the per share price
of shares of common stock that may be issued by Tecon to the Consultants
for services performed under this Plan has been arbitrarily set by Tecon;
however, in the event Tecon shall undergo a merger, consolidation,
reorganization, or recapitalization other than the BuyIt Plan, declare a stock
dividend of its shares of common stock or cause to be implemented a forward or
reverse stock split (other than in connection with the BuyIt Plan) which
affects the present number of issued and outstanding shares of common stock of
Tecon prior to the issuance of shares to the Consultants, that the per share
price and the number of shares issuable to the Consultants for services
actually rendered hereunder after such event shall be appropriately adjusted
to reflect any such event.
1.10 Effective Date. The Effective Date of the Plan for each of
the Consultants shall be the date set forth on the respective Counterpart
Signature Pages.
1.11 Conditions. The Plan is subject to the following
conditions, to-wit:
(a) The shares to be issued under the Plan shall be issued only
upon the prior completion of the BuyIt Plan;
(b) The number of shares of common stock to be issued under the
Plan shall in no event exceed 10% of the total issued and outstanding shares
of common stock of the Company following the completion of the BuyIt Plan.
Section 2
Representations and Warranties of Tecon
Tecon represents and warrants to, and covenants with, the
Consultants as follows:
2.1 Corporate Status. Tecon is a corporation duly organized,
validly existing and in good standing under the laws of the State of Utah
and is licensed or qualified as a foreign corporation in all states in which
the nature of its business or the character or ownership of its properties
makes such licensing or qualification necessary.
2.2 Compensation Plan. The Board of Directors of Tecon has
duly adopted a Compensation Plan as defined in Rule 405 of the Commission
pursuant to which Tecon may issue "freely tradeable" shares of its common
stock as payment for services rendered, subject to the filing and
effectiveness of an S-8 Registration Statement to be filed with the Commission
by Tecon.
2.3 Registration Statement on Form S-8. Tecon shall engage
the services of a competent professional to prepare and file a Registration
Statement on Form S-8 with the Commission to cover the shares of common stock
to be issued under the Plan; shall cooperate with such professional in every
manner whatsoever to the extent reasonably required or necessary so that such
Registration Statement shall be competently prepared, which Registration
Statement shall not contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements made therein,
in light of the circumstances under which they were made, not misleading, and
which Registration Statement shall become effective immediately upon its
filing; such Registration Statement shall be prepared at the sole cost and
expense of Tecon; and Tecon will provide to the Consultants prior to the
issuance and delivery of any such shares of common stock a copy of such
Registration Statement, the Compensation Plan adopted by its Board of
Directors, all quarterly, annual or current reports or other documents
incorporated by reference into such Registration Statement and any other
similar reports filed or publicly disseminated following the effective date of
any such Registration Statement.
2.4 Federal and State Securities Laws, Rules and Regulations.
Tecon shall fully comply with any and all federal or state securities laws,
rules and regulations governing the issuance of any such shares of common
stock.
2.5 Limitation on Services. Tecon shall not request the
Consultants to perform any services in connection with any "capital raising"
transaction under this Plan.
2.6 Reports With the Commission. Tecon is required to file
reports with the Commission pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended (the "1934 Act"), and Tecon has or will file
with the Commission all reports required to be filed by it forthwith, and
shall continue to file such reports with the Commission so long as required,
but for a period of not less than one year; and such reports are or will be
true and correct in every material respect.
2.7 Corporate Authority and Due Authorization. Tecon has
full corporate power and authority to enter into this Plan and to carry out
its obligations hereunder. Execution of this Plan and performance by Tecon
hereunder have been duly authorized by all requisite corporate action on the
part of Tecon, and this Plan constitutes a valid and binding obligation of
Tecon and performance hereunder will not violate any provision of the
Articles of Incorporation, Bylaws, agreements, mortgages or other commitments
of Tecon.
Section 3
Representations and Warranties of the Consultants
Each of the Consultants represents and warrants to, and
covenants with, Tecon as follows:
3.1 Employment. Each of the Consultants hereby accepts
employment by Tecon for the services performed pursuant to this Agreement.
The services performed by the Consultants hereunder have been personally
rendered by the Consultants, and no one acting for or on behalf of the
Consultants.
3.2 Accredited Investors. Each of the Consultants represents
and warrants that, by reason of income, net assets, education, background and
business acumen, the Consultants have the experience and knowledge to evaluate
the risks and merits attendant to an investment in shares of common stock of
Tecon, either singly or through the aid and assistance of a competent
professional, and are fully capable of bearing the economic risk of loss of
the total investment of services; further, they are "accredited investors" as
that term is defined under the 1933 Act or the rules and regulations
promulgated thereunder.
3.3 Suitability of Investment. Prior to the execution of this
Plan, each of the Consultants shall have provided the services outlined in the
respective Counterpart Signature Pages to Tecon, and the Consultants,
singly, or through the advice of a competent professional, fully believe that
an investment in shares of common stock of Tecon is a suitable investment
for the Consultants.
3.4 Limitation on Services. None of the services rendered by
the Consultants and paid for by the issuance of shares of common stock of
Tecon shall be services related to any "capital raising" transaction.
3.5 Authority and Authorization. Each of the Consultants has
full power and authority to enter into this Plan and carry out the obligations
hereunder. Execution of this Plan and performance by the Consultants
hereunder constitutes a valid and binding obligation of the Consultants and
performance hereunder will not violate any other agreement to which any of the
Consultants is a party.
Section 4
Indemnity
Tecon and the Consultants agree to indemnify and hold the
other harmless for any loss or damage resulting from any misstatement of a
material fact or omission to state a material fact by the other contained
herein or contained in the S-8 Registration Statement of Tecon to be filed
hereunder, to the extent that any misstatement or omission contained in the
Registration Statement was based upon information supplied by the other.
Section 5
Termination
Prior to the performance of services hereunder, this Plan may
be terminated (1) by mutual consent of Tecon and the respective Consultants
in writing; (2) by either the Directors of Tecon or the respective
Consultants if there has been a material misrepresentation or material breach
of any warranty or covenant by the other party; and (3) shall automatically
terminate at the expiration of the term hereof, provided, however, all
representations and warranties shall survive the termination hereof; provided,
further, however, that any obligation of Tecon to pay for any services
actually rendered by the Consultants hereunder shall survive any such
termination.
Section 6
General Provisions
6.1 Further Assurances. At any time, and from time to time,
after the execution hereof, each party will execute such additional
instruments and take such action as may be reasonably requested by the other
party to carry out the intent and purposes of this Plan.
6.2 Notices. All notices and other communications hereunder
shall be in writing and shall be deemed to have been given if delivered in
person or sent by prepaid first-class registered or certified mail, return
receipt requested, as follows:
If to Tecon: 000 Xxxx 000 Xxxxx, Xxxxx 000
Xxxx Xxxx Xxxx, Xxxx 00000
If to Consultants: The addresses listed on the
Counterpart Signature Pages
6.3 Entire Agreement. This Plan constitutes the entire
agreement between the parties and supersedes and cancels any other agreement,
representation, or communication, whether oral or written, between the parties
hereto relating to the transactions contemplated herein or the subject matter
hereof.
6.4 Headings. The section and subsection headings in this
Plan are inserted for convenience only and shall not affect in any way the
meaning or interpretation of this Plan.
6.5 Governing law. This Plan shall be governed by and construed
and enforced in accordance with the laws of the State of Utah, except to the
extent pre-empted by federal law, in which event (and to that extent only),
federal law shall govern.
6.6 Assignment. Neither Tecon nor the Consultants can
assign any rights, duties or obligations under this Plan, and in the event of
any such assignment, such assignment shall be deemed null and void.
6.7 Counterparts. This Plan may be executed simultaneously in
one or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Plan effective
the day and year first above written.
TECON, INC.
By /s/ Xxxxxx Xxxx
---------------------------
Xxxxxx Xxxx, President and Director
EXHIBIT "A"
CONSULTANT COMPENSATION AGREEMENT NO. 1
COUNTERPART SIGNATURE PAGE
THIS COUNTERPART SIGNATURE PAGE for that certain Consultant
Compensation Agreement No. 1 between Tecon, Inc. and the undersigned
Consultant is executed as of the date set forth hereinbelow.
Consultant:
Xxxxxx X. Xxxxxxx
0000 Xxxxx 000 Xxxx, Xxxxx 000
Xxxx Xxxx Xxxx, Xxxx 00000
Date: 4-1-99 /s/ Xxxxxx X. Xxxxxxx
------ ---------------------
Number of Shares and
Maximum Value
of Services
General Description of Services to be Performed
See Exhibit A-1 attached hereto and incorporated
herein by reference as will be set forth in invoices 150,000
to Tecon as payment of the option price $ 4,950
EXHIBIT X-0
Xxxxx 00, 0000
Xxxxxxx X. Xxxxxxxxxx
000 Xxxx Xxxxx Xxxxx, Xxxxx 000
Xxxx Xxxx Xxxx, XX 00000
Via Facsimile
Re: Services qualifying for issuance of compensatory shares of common stock
of Tecon, Inc., a Utah corporation (the "Company"),
to be registered on Form S-8 of the Securities and Exchange Commission.
Dear Xx. Xxxxxxxxxx:
As per your request, the following is a list of services I rendered
while serving as a consultant to the Company:
Prepared due diligence for the Company's auditor, Xxxxxxx
XxXxxxxxxx.
Prepared quarterly interim financial statements.
Prepared Form 10QSB quarterly reports for the periods ended 12-31-
97, 6-30-98, 9-30-98 and 12-31-98, as filed with the Securities
and Exchange Commission.
Prepared and filed Form 10KSB's for the fiscal year ending March
31, 1998.
I further acknowledge that I have received your letter dated March 30,
1999, and the Memorandum accompanying it, and that none of the services
described above was rendered in connection with any "capital raising"
transaction or the direct or indirect promotion or maintenance of a market for
the Company's securities.
Please let me know if I can be of further assistance.
Respectfully,
/s/ Xxxxxx X. Xxxxxxx
EXHIBIT "B"
CONSULTANT COMPENSATION AGREEMENT NO. 1
COUNTERPART SIGNATURE PAGE
THIS COUNTERPART SIGNATURE PAGE for that certain Consultant
Compensation Agreement No. 1 between Tecon, Inc. and the undersigned
Consultant is executed as of the date set forth hereinbelow.
Consultant:
Xxxxxxx X. Xxxxxx
0000 Xxxxx 000 Xxxx, Xxxxx 000
Xxxx Xxxx Xxxx, Xxxx 00000
Date: 4-1-99 /s/ Xxxxxxx X. Xxxxxx
------ ---------------------
Number of Shares
Maximum Value
of Services
General Description of Services to be Performed
See Exhibit B-1 attached hereto and incorporated
herein by reference as will be set forth in invoices 150,000
to Tecon as payment of the option price $ 4,950
EXHIBIT "B-1"
March 31, 1999
Xxxxxxx X. Xxxxxxxxxx
000 Xxxx Xxxxx Xxxxx, Xxxxx 000
Xxxx Xxxx Xxxx, XX 00000
Via Facsimile
Re: Services qualifying for issuance of compensatory shares of common stock
of Tecon Inc., a Utah corporation (the "Company"),
to be registered on Form S-8 of the Securities and Exchange Commission.
Dear Xx. Xxxxxxxxxx:
As per your request, the following is a list of services I rendered
while serving as a consultant to the Company from March 1996 to present:
Traveled to Washington State
Traveled to New York, NY on February 24-26, 1999 to meet with
associates and finders of BuyIt.
Prepared Memorandum of Understanding between Tecon, Inc., and
XxxXx.xxx.
Consulted with the previous Officers and Director of the Company
with regard to bringing the company back into good standing,
retaining an auditor to bring audited financial statements up to
date, completing all necessary SEC filings, etc.
I further acknowledge that I have received your letter dated March 30,
1999, and the Memorandum accompanying it, and that none of the services
described above was rendered in connection with any "capital raising"
transaction or the direct or indirect promotion or maintenance of a market for
the Company's securities.
Please let me know if I can be of further assistance.
Respectfully,
/s/ Xxxxxxx X. Xxxxxx
EXHIBIT "C"
CONSULTANT COMPENSATION AGREEMENT NO. 1
COUNTERPART SIGNATURE PAGE
THIS COUNTERPART SIGNATURE PAGE for that certain Consultant
Compensation Agreement No. 1 between Tecon, Inc. and the undersigned
Consultant is executed as of the date set forth hereinbelow.
Consultant:
Xxxxx X. Xxxxxx
0000 Xxxxx 000 Xxxx, Xxxxx 000
Xxxx Xxxx Xxxx, Xxxx 00000
Date: 4-1-99 /s/ Xxxxx X. Xxxxxx
------ -------------------
Number of Shares
Maximum Value
of Services
General Description of Services to be Performed
See Exhibit C-1 attached hereto and incorporated
herein by reference as will be set forth in invoices 150,000
to Tecon as payment of the option price $ 4,950
EXHIBIT "C-1"
March 31, 1999
Xxxxxxx X. Xxxxxxxxxx
000 Xxxx Xxxxx Xxxxx, Xxxxx 000
Xxxx Xxxx Xxxx, XX 00000
Via Facsimile
Re: Services qualifying for issuance of compensatory shares of common stock
of Tecon, Inc., a Utah corporation (the "Company"),
to be registered on Form S-8 of the Securities and Exchange Commission.
Dear Xx. Xxxxxxxxxx:
As per your request, the following is a list of services I rendered
while serving as a consultant to the Company from April 1996 to present:
Review numerous other business plans and completed due diligence
on several other companies prior to completing a memorandum of
understanding with XxxXx.xxx.
Traveled to California on February 17, 1998 to meet with BuyIt
management and perform initial due diligence.
Daily correspondence with BuyIt officers and legal council for the
past two months.
Facilitated correspondence with the Company's legal counsel,
Xxxxxxx X. Xxxxxxxxxx, Esq.
I further acknowledge that I have received your letter dated March 30,
1999, and the Memorandum accompanying it, and that none of the services
described above was rendered in connection with any "capital raising"
transaction or the direct or indirect promotion or maintenance of a market for
the Company's securities.
Please let me know if I can be of further assistance.
Respectfully,
/s/ Xxxxx X. Xxxxxx
EXHIBIT "D"
CONSULTANT COMPENSATION AGREEMENT NO. 1
COUNTERPART SIGNATURE PAGE
THIS COUNTERPART SIGNATURE PAGE for that certain Consultant
Compensation Agreement No. 1 between Tecon, Inc. and the undersigned
Consultant is executed as of the date set forth hereinbelow.
Consultant:
Xxxxxx X. Xxxxxx
0000 Xxxxx 000 Xxxx, Xxxxx 000
Xxxx Xxxx Xxxx, Xxxx 00000
Date: 4-1-99 /s/ Xxxxxx X. Xxxxxx
------ --------------------
Number of Shares
Maximum Value
of Services
General Description of Services to be Performed
See Exhibit D-1 attached hereto and incorporated
herein by reference as will be set forth in invoices 150,000
to Tecon as payment of the option price $ 4,950
EXHIBIT "D-1"
March 31, 1999
Xxxxxxx X. Xxxxxxxxxx
000 Xxxx Xxxxx Xxxxx, Xxxxx 000
Xxxx Xxxx Xxxx, XX 00000
Via Facsimile
Re: Services qualifying for issuance of compensatory shares of common stock
of Tecon, Inc., a Utah corporation (the "Company"),
to be registered on Form S-8 of the Securities and Exchange Commission.
Dear Xx. Xxxxxxxxxx:
As per your request, the following is a list of services I rendered
while serving as a consultant to the Company from April 1996 to present:
Maintained the corporations books and records.
Correspondence with CUSIP Service Bureau.
Maintained correspondence with the Company's Officers and Board of
Directors.
Traveled to New York City, NY February 24-26 to meet with
associates/finders of BuyIt regarding transaction.
Facilitated all corporate correspondence.
Ensured all taxes were kept current.
I further acknowledge that I have received your letter dated March 30,
1999, and the Memorandum accompanying it, and that none of the services
described above was rendered in connection with any "capital raising"
transaction or the direct or indirect promotion or maintenance of a market for
the Company's securities.
Please let me know if I can be of further assistance.
Respectfully,
/s/ Xxxxxx X. Xxxxxx
March 30, 1999
Xxxxx X. Xxxxxx
Xxxxxxx X. Xxxxxx
Xxxxxx Xxxxxx
Xxxxxx Xxxxxxx
Via Facsimile
Re: Issuance of compensatory shares of common stock of
Tecon, Inc., a Utah corporation (the "Company"), to
each of you, as consultants or employees, to be
registered on Form S-8 of the Securities and Exchange
Commission
Gentlemen:
I represent the Company and have been engaged to prepare a
Registration Statement on Form S-8 of the Securities and Exchange Commission
for the registration of the securities to be issued to you under a written
compensation agreement to be prepared by this office.
I have prepared a brief Memorandum of the proposed amendments of
the Securities and Exchange Commission to this Form, and have enclosed a copy
thereof for your review.
Please review this Memorandum and advise me in writing of the
types of services you are to render, and please facsimile me a copy your typed
comments (I cannot scan hand written notations for an XXXXX filing),
indicating, if applicable, that these prohibitions do not relate to you or the
services you are to render.
With respect to services, I would like a detailed explanation of
all "non-capital raising" services rendered, including dates, if applicable,
and any "due diligence" report concerning XxxXx.xxx.
You cannot be paid in securities on an S-8 Registration Statement
to raise funds or promote the stock of the reorganized company or XxxXx.xxx.
Thank you very much.
Yours very sincerely,
/s/ Xxxxxxx X. Xxxxxxxxxx
Xxxxxxx X. Xxxxxxxxxx
cc. Tecon, Inc.
