CONSULTING AGREEMENT
This
Consulting Agreement (the “Agreement”), is made as of July 24, 2008, and is
effective as of January 1, 2008 (the “Effective Date”) between AVT, Inc. a
Nevada corporation (hereinafter referred to as the “Company”) and Star Capital
IR Corp., a California corporation (the “Consultant”).
WHEREAS, the Company requires
the Services (as defined herein) and as set forth herein;
WHEREAS, Consultant is
qualified to provide the Company with the Services and is desirous to perform
such Services for the Company; and
WHEREAS, the Company wishes to
induce Consultant to provide the Services and wishes to contract with the
Consultant regarding the same and compensate Consultant in accordance with the
terms herein;
NOW, THEREFORE, in
consideration of the mutual covenants hereinafter stated, it is agreed as
follows:
1. APPOINTMENT.
The
Company hereby engages Consultant and Consultant agrees to render the Services
to the Company as a consultant upon the terms and conditions hereinafter set
forth.
2. TERM.
Subject
to Section 8(a), the term of this Consulting Agreement shall begin as of the
date of the Effective Date, and shall terminate 12 months thereafter
(hereinafter, the “Term”).
3. SERVICES.
During
the term of this Agreement, Consultant shall provide the Company with the
following “Services.” The Services shall be limited to making
recommendations and offering advice to the Company’s Officers, Directors and
other key Company personnel.
a. Investor
Relations and consulting activities
Consultant
agrees to provide the Services on a timely basis via: meetings with Company
representatives which may include other professionals; conferences calls with
Company representatives and other professionals; and/or written correspondence
and documentation. Consultant cannot guarantee the results on behalf
of the Company, but shall pursue all avenues that it deems reasonable through
its network of contacts.
4. COMPENSATION. In
connection with this Agreement, the foregoing shall be referred to as
“Compensation.” All Compensation due to be delivered and/or paid to
Consultant pursuant to this Agreement shall be deemed completely earned, due,
payable and non-assessable as of the date the Compensation is due to or vested
in Consultant. Compensation shall consist of the
following:
a. Consultant
shall receive $4,000 per month.
b. 100,000
restricted shares of the Company’s common stock payable upon execution of this
Agreement and every 90 days thereafter.
5. REPRESENTATIONS AND WARRANTIES OF
COMPANY.
The
Company hereby represents, warrants and agrees as follows:
a. This
Agreement has been authorized, executed and delivered by the Company and, when
executed by the Consultant will constitute the valid and binding agreement of
the Company enforceable against the Company in accordance with its terms, except
as enforcement thereof may be limited by bankruptcy, insolvency or
reorganization, moratorium or other similar laws relating to or affecting
creditors’ rights generally or by general equitable principles.
b. The
financial statements, audited and unaudited (including the notes thereto)
provided to Consultant, (the “Financial Statements”), will present fairly the
financial position of the Company as of the dates indicated and the results of
operations and cash flows of the Company for the periods specified. Such
Financial Statements will be prepared in conformity with generally accepted
accounting principles applied on a consistent basis throughout the periods
involved except as otherwise stated therein.
c. The
Company is validly organized, existing and with active status under the laws the
State of Delaware.
d. The
securities to be issued to Consultant, if any, have all been authorized for
issuance and when issued, delivered and tendered to the Consultant by the
Company will be validly issued, fully paid and non-assessable.
e. Since
date of the most recent of the Financial Statements, there has not been any (A)
material adverse change in the business, properties, assets, rights, operations,
condition (financial or otherwise) or prospects of the Company, (B) transaction
that is material to the Company, except transactions in the ordinary course of
business, (C) obligation that is material to the Company, direct or contingent,
incurred by the Company, except obligations incurred in the ordinary course of
business, (D) change that is material to the Company or in the common shares or
outstanding indebtedness of the Company, or (E) dividend or distribution of any
kind declared, paid, or made in respect of the common shares.
f. The
Company shall be deemed to have been made a continuing representation of the
accuracy of any and all facts, material information and data which it supplies
to Consultant and acknowledges its awareness that Consultant will rely on such
continuing representation in disseminating such information and otherwise
performing its advisory functions. Consultant in the absence of
notice in writing from the Company, will rely on the continuing accuracy of
material, information and data supplied by the Company. Consultant
represents that he has knowledge of and is experienced in providing the
aforementioned services.
6. INDEMNIFICATION. The
Company agrees to indemnify the Consultant and hold it harmless against any
losses, claims, damages or liabilities incurred by the Consultant, in connection
with, or relating in any manner, directly or indirectly, to the Consultant
rendering the Services in accordance with the Agreement, unless it is determined
by a court of competent jurisdiction that such losses, claims, damages or
liabilities arose out of the Consultant’s breach of this Agreement, sole
negligence, gross negligence, willful misconduct, dishonesty, fraud or violation
of any applicable law. Additionally, the Company agrees to reimburse
the Consultant immediately for any and all expenses, including, without
limitation, attorney fees, incurred by the Consultant in connection with
investigating, preparing to defend or defending, or otherwise being involved in,
any lawsuits, claims or other proceedings arising out of or in connection with
or relating in any manner, directly or indirectly, to the rendering of any
Services by the Consultant in accordance with the Agreement (as defendant,
nonparty, or in any other capacity other than as a plaintiff, including, without
limitation, as a party in an interpleader action). The Company
further agrees that the indemnification and reimbursement commitments set forth
in this paragraph shall extend to any controlling person, strategic alliance,
partner, member, shareholder, director, officer, employee, agent or
subcontractor of the Consultant and their heirs, legal representatives,
successors and assigns. The provisions set forth in this Section
shall survive any termination of this Agreement.
7. COMPLIANCE
WITH SECURITIES LAWS. The Company
understands that any and all compensation outlined in this Agreement shall be
paid solely and exclusively as consideration for the aforementioned consulting
efforts made by Consultant on behalf of the Company as an independent
contractor. The Parties to be performing the services outlined in
this Agreement are natural persons. Consultant’s engagement does not
involve the marketing of any Company securities nor is Consultant being hired to
raise money for the Company.
8. MISCELLANEOUS.
a. Termination: This
Agreement may be terminated by either Party for any reason at any time
(hereinafter referred to as a “Termination”).
b. Modification: This
Agreement sets forth the entire understanding of the Parties with respect to the
subject matter hereof. This Agreement may be amended only in writing
signed by both Parties.
c. Notices: Any
notice required or permitted to be given hereunder shall be in writing and shall
be mailed or otherwise delivered in person to the Parties at the addresses set
forth above.
d. Waiver: Any
waiver by either party of a breach of any provision of this Agreement shall not
operate as or be construed to be a waiver of any other breach of that provision
or of any breach of any other provision of this Agreement. The
failure of a party to insist upon strict adherence to any term of this
Consulting Agreement on one or more occasions will not be considered a waiver or
deprive that party of the right thereafter to insist upon adherence to that term
of any other term of this Consulting Agreement.
e. Severability: If
any provision of this Agreement is invalid, illegal, or unenforceable, the
balance of this Consulting Agreement shall remain in effect. If any
provision is inapplicable to any person or circumstance, it shall nevertheless
remain applicable to all other persons and circumstances. If any
compensation provision is deemed unenforceable or illegal, then in the case of
the delivery of common stock to the Consultant, Consultant shall be entitled to
receive a cash benefit equal to the value of the common stock that would have
been tendered had such a provision not been illegal or
unenforceable.
f. Arbitration: Any
dispute or other disagreement arising from or out of this Agreement shall be
submitted to arbitration under the rules of the American Arbitration Association
and the decision of the arbiter(s) shall be enforceable in any court having
jurisdiction thereof. Arbitration shall occur only in Orange County,
California
g. Governing
Law: The interpretation and the enforcement of this Agreement
shall be governed by California law as applied to residents of the State of
California relating to contracts executed in and to be performed solely within
the State of California (without reference to its choice of law principles), and
to the exclusion of the law of any other forum, without regard to the
jurisdiction in which any action or special proceeding may be
instituted. EACH PARTY HERETO AGREES TO SUBMIT TO THE PERSONAL
JURISDICTION AND VENUE OF THE STATE AND/OR FEDERAL COURTS LOCATED IN THE COUNTY
OF ORANGE, CALIFORNIA FOR RESOLUTION OF ALL DISPUTES ARISING OUT OF, IN
CONNECTION WITH, OR BY REASON OF THE INTERPRETATION, CONSTRUCTION, AND
ENFORCEMENT OF THIS AGREEMENT, AND HEREBY WAIVES THE CLAIM OR DEFENSE THEREIN
THAT SUCH COURTS CONSTITUTE AN INCONVENIENT FORUM. AS A MATERIAL
INDUCEMENT FOR THIS AGREEMENT, EACH PARTY SPECIFICALLY WAIVES THE RIGHT TO TRIAL
BY JURY OF ANY ISSUES SO TRIABLE. If it becomes necessary for
any party to institute legal action to enforce the terms and conditions of this
Agreement, the prevailing party shall be awarded reasonable attorneys fees,
expenses and costs.
h. Specific
Performance: The Company and the Consultant shall have the
right to demand specific performance of the terms, and each of them, of this
Agreement.
i. Execution of the
Agreement: The Company, the party executing this Agreement on
behalf of the Company, and the Consultant, have the requisite corporate power
and authority to enter into and carry out the terms and conditions of this
Agreement, as well as all transactions contemplated hereunder. All corporate
proceedings have been taken and all corporate authorizations and approvals have
been secured which are necessary to authorize the execution, delivery and
performance by the Company and the Consultant of this Agreement. This
Agreement has been duly and validly executed and delivered by the Company and
the Consultant and constitutes a valid and binding obligation, enforceable in
accordance with the respective terms herein. Upon delivery of this
Agreement, this Agreement, and the other agreements and exhibits referred to
herein, will constitute the valid and binding obligations of Company, and will
be enforceable in accordance with their respective terms. Delivery
may take place via facsimile transmission.
j. Joint Drafting and Reliance
on Independent Counsel. This Agreement shall be deemed to have
been drafted jointly by the Parties hereto, and no inference or interpretation
against any one party shall be made solely by virtue of such party allegedly
having been the draftsperson of this Agreement. The Parties have each
conducted sufficient and appropriate due diligence with respect to the facts and
circumstances surrounding and related to this Agreement. The Parties
expressly disclaim all reliance upon, and prospectively waive any fraud,
misrepresentation, negligence or other claim based on information supplied by
the other Party, in any way relating to the subject matter of this
Agreement.
k. Acknowledgments and
Assent. The Parties agree that they have read this Agreement
and understand the content herein, and freely and voluntarily assent to all of
the terms herein.
SIGNATURES
IN
WITNESS WHEREOF, this Agreement has been executed by the Parties as of the date
first above written.
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_________________________________
By: Xxxxxxx
Xxxxxxx
Its: Secretary
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STAR
CAPITAL IR CORP.
___________________________________
By:
Its:
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A
FACSIMILE COPY OF THIS AGREEMENT SHALL HAVE THE SAME LEGAL EFFECT AS AN ORIGINAL
OF THE SAME.
