EXHIBIT 6.53
EUROPEAN INVESTOR RELATIONS CONSULTING AGREEMENT
Between: XXXXXXXXX FINANCE CORP.,
(the "Consultant")
At: x/x Xxxxx Xxxxxxxxxx,
Xxxxxxx. 00, XX-0000 Xxxxxx, Xxxxxxxxxxx
Facsimile: ______________________
And: IQ POWER TECHNOLOGY INC.
(the "Company")
At: x/x Xxxxxxxx Xxxx, Xxxxxxxxxxx Xxxxxxx 0,
X-00000 Xxxxxxxxxxxx, Xxxxxxx
Facsimile: 011-4989-614483-40
IN CONSIDERATION of the mutual promises and covenants and the terms and
conditions set out in sections 1.00 through 9.00 attached, the Company hereby
offers and the Consultant hereby accepts engagement with the Company upon the
terms and conditions set forth herein:
Position: Investor Relations Part-Time Dependent Consultant.
Services: Services to be provided shall relate generally to the
position of the Consultant and shall include those
items and be provided in the manner described in
Schedule A.
Term of Agreement: This Agreement shall have an initial
term of 12 months and be deemed to have commenced on
May 1, 2001, notwithstanding the date of execution.
Period of Services: 40 hours per week including market opening hours
Compensation: As consideration for the Services of the Consultant
hereunder, the Company shall pay the Consultant a fee
of US$62,500 through the issue of 250,000 shares of
the Company (the "Shares') at a deemed price of $0.25
per share in monthly installments of 20,850 shares in
each of the first eleven months and 20,650 shares in
the twelfth month, each such installment due within
seven days of the end of the calendar month for which
that installment accrued due.
Company Contact Person:: Xxxxx Xxxxx, President
Consultant Contact ________________________
Person:
Executed and delivered by and on Executed and delivered by and on behalf
behalf of the Company at Unterhaching, of the Consultant at _________________,
Germany, effective ____________. effective ___________________.
IQ POWER TECHNOLOGY INC. XXXXXXXXX FINANCE CORP.
Per: ------------------------------ Per: ------------------------------
Xxxxx Xxxxx, President
Title: ------------------------------
CONSULTING AGREEMENT
TERMS AND CONDITIONS
1.00 Representations, Warranties, and Covenants of the Consultant
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1.01 The Consultant represents and warrants to, and covenants with, the Company,
as follows:
a. the Consultant has the ability, experience and skills necessary to carry
out its obligations under this Agreement;
b. the Consultant and its officer, employees, agents and consultants shall
comply with all securities laws and regulations applicable to the Company
or the Consultant, and all policies, rules and requirements of any exchange
or quotation system on which the shares of the Company trade;
c. the Consultant shall, and shall cause its officers, employees, agents and
co-consultants to, act at all times in the best interests of the Company;
d. the Consultant, upon notice from the Company, will cease all Services for
the period directed by the Company without effect on the payment of
compensation due hereunder unless this Agreement is terminated in
connection with the request to cease Services;
e. the Consultant will not distribute or disseminate any information
concerning the Company in any form or medium, unless such information has
been provided to the Consultant by the Company for distribution or
dissemination, or the Company has reviewed and approved such information
prior to its distribution of dissemination by the Consultant; and
f. the Consultant will not engage in any transaction involving the offer or
sale of securities of the Company, and will not solicit or encourage any
other party to engage in any transaction involving the offer or sale of
securities of the Company, at any time that the Consultant is in possession
of material non-public information concerning the Company.
2.00 Position and Services
--------------------------
2.01 The Consultant shall provide the Services indicated on the first page
hereof and in such capacity, shall carry out the duties and responsibilities
commensurate with that position as such duties are more specifically defined
from time to time during the term of this Agreement by the Board of Directors of
the Company.
2.02 In providing his services hereunder, the Consultant shall report to and
take directions from the Chief Financial Officer of the Company, subject to
overriding directions from the President of the Company or the Board of
Directors of the Company.
2.03 The Company will provide the Consultant on a regular basis at the
appropriate occasions with corporate news, which the Consultant with regard to
his editorial responsibility will adapt and make public. The Company may draw
the Consultant's attention to the point of time and the relevant countries, when
and where the news have to be made public.
2.04 The Company shall use its best efforts to ensure the corporate and other
information delivered by the Company to the Consultant is accurate, that
publication of such information does not infringe the rights of a third party,
and that the relevant laws, which necessitate a publication, have been observed
and not violated.
2.05 The Company exempts the Consultant from any claim of damages, claim of
costs or any other claim, which might effect the property of the Consultant
which arises from the fact that data or information of any kind provided by the
Company are not correct or are violating the rights of a third party. Incorrect
are those data or information which can not be proven in court.
2.06 The Consultant is not obliged to succeed in achieving a specific stock
performance for the Company as to either price or volume.
2.07 The Company will take charge and be responsible for compliance with the
relevant securities law, company law and any other law which prescribes the
publication of certain information and certain data at a certain time or certain
event if this information or data are published in connection with the sale of
securities.
Consulting Agreement
Page 3
3.00 Terms; Termination of Engagement
-------------------------------------
3.01 The term of engagement pursuant to this Agreement shall be for the term
stated on the first page hereof and thereafter engagement shall continue on a
monthly basis until terminated by the Company or the Consultant. Either party
may terminate the Consultant's engagement as follows:
a. the Consultant may terminate his services at any time and for any reason
upon one month's written notice to the Company;
b. the Company may terminate the Consultant's services at will. If the Company
terminates the Consultant's engagement without cause, the Consultant's
salary and benefits shall continue for at least the initial term of the
Agreement
c. the Company may terminate the Consultant's services for cause after
reasonable notice of any non-performance has been given by the Company to
the Consultant and a reasonable opportunity has been afforded to the
Consultant to remedy any instance of non-performance. For purposes of the
preceding sentence, "cause" shall include but not be limited to:
i. fraud,
ii. conviction or confession of an indictable offense,
iii. destruction or theft of the Company's property,
iv. misconduct materially injurious to the Company, or
v. any breach or threatened breach of this Agreement.
3.02 If the Consultant's engagement is terminated:
a. subject to paragraph 3.01.b, no further compensation coming due under this
Agreement after the date of termination shall be payable by the Company;
and
b. the Consultant shall continue to be bound by the terms of section 6.00 of
this Agreement.
4.00 Compensation
-----------------
4.01 During the term of this Agreement, the Consultant shall be paid in
accordance with the compensation provisions on the first page hereof. This
compensation may be increased from time to time subject to the approval of the
Board of Directors of the Company and, where required, any regulatory body
having jurisdiction.
4.02 The Consultant represents and warrants to the Issuer that:
a. the Consultant is aware that the Shares have not been qualified under a
Securities Act or Exchange Act (an "Act") or any regulations or rules
thereunder (the "Rules") for distribution to the public, that the issuance
of the Shares pursuant to this Agreement is to be by way of private
placement exempted from the registration requirements of any Act and from
the prospectus requirements of any Act under an exemption to be determined
by the Issuer, and that the Consultant is restricted from using most of the
civil remedies available under such Acts and the Rules thereto and may not
receive information that would be otherwise available to him under such
Acts and the Rules in connection with his purchase of the Shares;
b. the Consultant is acquiring the Shares as principal and no other person,
firm or corporation will have a beneficial interest in the Shares;
c. the Shares are being acquired for investment purposes only and not with a
view to resale or distribution;
d. the Consultant is not a control person of the Issuer as defined in any
securities act applicable to the issue of the Shares and the acquisition of
the Shares will not result in the Consultant owning 20% or more of the
issued and outstanding shares of the Issuer or becoming a control person;
e. the Consultant is not acquiring the Shares as a result of any material
information about the affairs of the Issuer that has not been publicly
disclosed, save knowledge of this particular transaction;
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Page 4
f. the Consultant is not a resident of Canada and this Agreement is not
subject to the securities laws of any province or territory in Canada;
g. the Consultant is not a "U.S. Person" (the definition of which includes,
but is not limited to, an individual resident in the United States and an
estate or trust of which any executor or administrator or trustee,
respectively, is a U.S. Person and any partnership or corporation organized
or incorporated under the laws of the United States);
h. the Consultant was outside the United States at the time of execution and
delivery of this subscription agreement;
i. no offers to sell the Shares were made by any person to the Consultant
while the Consultant was in the United States;
j. the Shares are not being acquired directly or indirectly, for the account
or benefit of a U.S. Person or a person in the United States and the
Consultant does not have any agreement or understanding (either written or
oral) with any U.S. Person respecting:
i. the transfer or assignment of any rights or interest in any of the
Shares,
ii the division of profits, losses, fees, commissions, or any financial
stake in connection with this subscription, or
iii. the voting of the common shares;
k. the Consultant and the Issuer agree that the Issuer may not permit the
transfer of the Shares unless such transfer is made in accordance with
Regulation S under the 1933 Act;
l. the Consultant acknowledges that the Shares have not been registered under
the United States Securities Act of 1933 (the "1933 Act"), and may not be
offered or sold in the United States, and the Consultant undertakes and
agrees that it will not offer or sell the Shares during the 40-day period
following the date of issue (the "Distribution Compliance Period"). After
such 40-day Distribution Compliance Period, the Consultant undertakes and
agrees to sell such Shares only outside the United States in a transaction
meeting the requirements of Regulation S under the 1933 Act. The Consultant
understands that the Corporation has no obligation or present intention of
filing a registration statement under the 1933 Act in respect of the
Shares; and
m. the Consultant agrees not to engage in hedging transactions with regard to
the Shares prior to the expiration of the 40-day Distribution Compliance
Period; and the Consultant acknowledges and agrees with the Corporation
that the Corporation shall refuse to register any transfer of the Shares
not made in accordance with the provisions of Regulation S, pursuant to
registration under the Securities Act, or pursuant to an available
exemption from registration under the 1933 Act.
5.00 Non-circumvention of Consultant
------------------------------------
5.01 In and for valuable consideration, the Company agrees that:
a. the Consultant may introduce the Company (whether written, oral, data, or
otherwise made by the Consultant) to opportunities (the "Opportunities"),
including, without limitation, existing or potential investors, lenders,
borrowers, trusts, corporations, and unincorporated business entities;
b. the identity of the Opportunities, and all other information concerning the
Opportunities (including, without limitation, all mailing information,
telephone and facsimile numbers, email addresses, and other contact
information) introduced hereunder are the property of the Consultant and
shall be treated as confidential information;
c. it shall not use such information except in the context of joint venture
with the Consultant, and never without the Consultant's prior written
approval;
d. neither it, nor its employees, affiliates and assigns shall enter into, or
otherwise arrange (either for itself or any other person of entity) any
business relations, contact any person of an Opportunity, either directly
or indirectly, or any of its affiliates, or accept any compensation or
advantage in relation to an Opportunity except as directed through the
Consultant, without the prior written approval of the Consultant.
The Consultant is relying on the Company to assent to these terms and the intent
of the Company to be bound by the terms as evidenced by the Company's execution
of this Agreement. Without the assent of the Company
Consulting Agreement
Page 5
to these terms, the Consultant would not introduce any Opportunity or disclose
any confidential information in pursuance of this Agreement.
6.00 Ownership of Technology; Confidentiality
---------------------------------------------
6.01 The Consultant recognizes and acknowledges that during the course of his
engagement, he will have access to certain information not generally known to
the public, relating to the products, sales or business of the Company which may
include, without limitation, software, literature, data, programs, Company
contact lists, sources of supply, prospects or projections, manufacturing
techniques, processes, formulas, research or experimental work, work in process,
trade secrets or any other proprietary or confidential matter (collectively, the
"Confidential Information"). The Consultant recognizes and acknowledges that
this Confidential Information constitutes a valuable, special and unique asset
of the Company, access to and knowledge of which are essential to the
performance of the Consultant's duties. The Consultant acknowledges and agrees
that all such Confidential Information, including without limitation that which
the Consultant conceives or develops, either alone or with others, at any time
during his engagement by the Company, is and shall remain the exclusive property
of the Company. The Consultant further recognizes, acknowledges and agrees that,
to enable the Company to perform services for its customers or its clients, such
customers or clients may furnish to the Company or the Consultant Confidential
Information concerning their business affairs, property, methods of operation or
other data, that the goodwill afforded to the Company depends on the Company and
its employees preserving the confidentiality of such information, and that such
information shall be treated as Confidential Information of the Company for all
purposes under this Agreement.
6.02 The Consultant agrees that, except as directed by the Company, the
Consultant will not at any time, whether during or after his engagement with the
Company, use or disclose to any person for any purpose other than for the
benefit of the Company any Confidential Information, or permit any person to
use, examine and/or make copies of any documents, files, data or other
information sources which contain or are derived from Confidential Information,
whether prepared by the Consultant or otherwise coming into the Company's
possession or control without the prior written permission of the Company.
6.03 The Consultant agrees that upon request by the Company and in any event
upon termination of engagement, the Consultant shall turn over to the Company
(or provide proof of destruction of) all Confidential Information in the
Consultant's possession or under his control which was created pursuant to, is
connected with or derived from the Consultant's services to the Company, or
which is related in any manner to the Company's business activities or research
and development efforts, whether or not such materials are in the Consultant's
possession as of the date of this Agreement.
7.00 Saving Provision
---------------------
7.01 The Company and the Consultant agree and stipulate that the agreements and
covenants contained in the preceding sections 5.00 and 6.00, including the scope
of the restricted activities described therein and the duration and geographic
extent of such restrictions, are fair and reasonably necessary for the
protection of the parties and the information described, goodwill and other
protectable interests, in light of all of the facts and circumstances of the
relationship between the Consultant and the Company. In the event a court of
competent jurisdiction should decline to enforce any provision of the preceding
paragraphs, such paragraphs shall be deemed to be modified to restrict them to
the maximum extent, in both time and geography which the court shall find
enforceable.
8.00 Injunctive Relief
----------------------
8.01 Each party acknowledges that a breach or threatened breach of any of the
covenants or other agreements contained herein would give rise to irreparable
injury to the party relying on such covenant or other agreement which injury
would be inadequately compensable in money damages. Accordingly, such party or
where appropriate, a client of such party, may seek and obtain an injunctive
relief from the breach or threatened breach of any provision, requirement or
covenant of this Agreement, in addition to and not in limitation of any other
legal remedies which may be available.
8.02 The parties acknowledge and agree that the covenants contained herein are
necessary for the protection of the parties' respective legitimate business
interests and are reasonable in scope and content.
Consulting Agreement
Page 6
9.00 General
------------
9.01 This Agreement and all matters arising hereunder will be governed by and
construed in accordance with the laws of the State of Washington, and the laws
of the United States applicable therein, and all disputes and claims, whether
for specific performance, injunction, declaration or otherwise howsoever both at
law and in equity, arising out of or in any way connected with this Agreement
will be referred to the courts of the State of Washington exclusively, and, by
execution and delivery of this Agreement, each party hereby irrevocably submits
and attorns to such jurisdiction.
9.02 In the event it becomes necessary to enforce this Agreement through legal
action, whether or not a suit is actually commenced, the party which obtains
substantial success in a legal action shall be entitled to his or actual
reasonable solicitor's fees and disbursements.
9.03 Any reference in this Agreement in the masculine gender shall include the
feminine and neuter genders, and vice versa, as appropriate. Any reference in
this Agreement in the singular shall mean the plural and vice versa, as
appropriate.
9.04 There is no verbal or other agreement that may modify or affect this
Agreement.
9.05 All dollars expressed in this Agreement are United States dollars.
9.06 This Agreement shall be considered and construed as a single instrument and
the failure to perform any of the terms and conditions in this Agreement shall
constitute a violation or breach of the entire instrument or Agreement and shall
constitute the basis for cancellation or termination.
9.07 The parties hereto agree to do or cause to be done all acts or things
necessary to implement and carry into effect the provisions and intent of this
Agreement.
9.08 All notices, requests, demands and other communications which are required
to be or may be given under this Agreement shall be in writing and shall be
deemed to have been duly given when delivered in person or transmitted by e-mail
or other telecommunication facility or on receipt after dispatch by certified or
registered first class mail, postage prepaid to the party to whom the same is so
given or made to its address noted on the first page.
9.09 This Agreement, including all Schedules attached hereto, constitutes the
entire agreement and supersedes all prior agreements and understandings, oral
and written, between the parties hereto with respect to the subject matter
hereof and may not be amended, modified or terminated unless in a written
instrument executed by the party or parties sought to be bound.
9.10 This Agreement may be executed in any number of counterparts, each of which
when executed, shall be deemed to be an original and all of which together shall
be deemed to be one and the same instrument and a facsimile copy of this
Agreement executed by a party hereto in counterpart or otherwise will be deemed
to be a valid and binding Agreement and accepted as an original of the Agreement
until such time as each of the parties has an originally executed Agreement in
its possession.
SCHEDULE A
Services shall include:
1. assisting in formulating plans and budgets from time to time for the
dissemination of information in Europe concerning the Company to its
clients, potential clients, existing shareholders, potential investors who
have contacted the Company seeking such information, financiers, the media,
the brokerage community and others as appropriate;
2. disseminating such information to the persons mentioned in accordance with
the marketing plan of the Company to encourage participation in the
development of the Company;
3. bank and institutional liaison and data compilation;
4. regular reports to the Company;
5. advising the Company on matters concerning corporate finance and arranging
introductions for the purpose of sourcing capital; and
6. introducing the Company to prospective financiers and business contacts who
could assist in the development of the Company.
