CORPORATE MANAGEMENT SERVICES AGREEMENT
THIS
AGREEMENT made effective as of the first day of October,
2008.
BETWEEN:
Xxxxxxxx Resources Corp., a
Nevada Corporation, having offices at 100 – 000, 0xx Xxxxxx,
X.X., Xxxxx 000, Xxxxxxx, Xxxxxxx
(hereafter
“Xxxxxxxx”)
AND;
1202503 Alberta Ltd., a
Corporation having a office at 000-00xx Xxxxxx
X.X., Xxxxxxx, Xxxxxxx
(hereafter
(“503 Alberta”)
RECIETALS:
WHEREAS,
Xxxxxxxx is engaged in the field of mineral exploration, and the
conduct of such other activities as may be incidental or related thereto;
and
WHEREAS,
Xxxxxxxx has and will have the need for accounting, administrative, financial,
technical, consulting and similar services from time to time, but has determined
that it is not cost effective to maintain all the infrastructure associated
therewith; and
WHEREAS,
in the event that Xxxxxxxx issues to the public shares of its capital stock
pursuant to a registration statement under the Securities Act of 1933, as
amended, Xxxxxxxx desires to continue to obtain the foregoing services from 503
Alberta; and
WHEREAS,
by this Agreement, Xxxxxxxx and 000 Xxxxxxx desire to confirm their agreement
with respect to services to be provided to Xxxxxxxx commencing on October 1,
2008 (the "Effective Date"), and to set forth the basis for 503 Alberta’s
providing further services of the type referred to herein; and
WHEREAS,
503 Alberta is able and willing to provide the foregoing services to Xxxxxxxx,
and Xxxxxxxx desires to engage 000 Xxxxxxx as an independent contractor to
provide the same in accordance with the terms set forth herein:
NOW,
THEREFORE, in consideration of the foregoing and the mutual agreements,
provisions and covenants contained herein, and for other good and valuable
consideration, the receipt and legal sufficiency whereof are hereby
acknowledged, the parties hereto further agree as follows:
ARTICLE
I
SECTION
1. MANAGEMENT
SERVICES.
1.1 Commencing
on the Effective Date, Xxxxxxxx hereby engages and retains 503 Alberta to
provide or otherwise make available to Xxxxxxxx the services described in this
Section 1 (the "Management Services"), and 503 Alberta hereby accepts and agrees
to provide such Management Services to Xxxxxxxx, for the term and consideration
as specified herein. The fee payable for such Management Services shall be
determined in accordance with Section 3 hereof.
1.2. ACCOUNTING
SERVICES. 000 Xxxxxxx shall assist Xxxxxxxx with the following accounting
services: maintenance of Jedediah's general ledger; maintenance of Jedediah's
accounts payable and accounts receivable records; and maintenance of Jedediah's
fixed asset records. The services described in this Section 1.2 shall also be
provided by 000 Xxxxxxx at the request of Xxxxxxxx in connection with Jedediah's
preparation of any required filings with the Securities and Exchange Commission
pursuant to United States securities laws. The services described in this
Section 1.2 shall be provided by 503 Alberta until terminated pursuant to the
provisions of Section 6.3 hereof.
1.3. CORPORATE
RECORD-KEEPING SERVICES. 503 Alberta shall assist in maintaining all accounting
records relating to Xxxxxxxx, until such time as such records shall be disposed
of in accordance with applicable legal requirements and 503 Alberta's normal
record disposition policies.
1.4. DIRECTOR
SERVICES. Xxxxxxxx shall remit to 000 Xxxxxxx all director and other fees which
become payable pursuant to this Agreement.
ARTICLE
II
SECTION
2. ADDITIONAL
SERVICES.
2.1 Beginning
on such date or dates subsequent to the Effective Date as are mutually agreed to
in writing by the parties, 503 Alberta will provide or otherwise make available
to Xxxxxxxx such services in addition to those described in Section 1 hereof as
are reasonably requested by Xxxxxxxx, subject in each case to the parties'
agreement to financial consideration and other terms. In the event that Xxxxxxxx
desires to avail itself of any of such additional services, the parties shall
negotiate in good faith to reach agreement on the scope and term of such
services. When and if an agreement is reached, the parties shall prepare an
appropriate schedule or addendum to this Agreement, in which the nature, scope
and quality of such services is described in detail. Each such addendum shall be
executed on behalf of each party hereto, shall be effective as of its date and
shall, upon such effective date, be incorporated into and made an integral part
of this Agreement.
2
ARTICLE
III
SECTION
3. REIMBURSEMENT OF
EXPENSES.
3.1
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In
connection with the Management Services pursuant to Section1 hereof and
Additional Services pursuant to Section 2 hereof, Xxxxxxxx shall reimburse
503 Alberta for any and all expenses or costs ("Charges") incurred or paid
by 503 Alberta on behalf of Xxxxxxxx in the performance of any of its
responsibilities under this Agreement (including an appropriate allocation
of overhead and general and administrative
costs).
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3.2
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Unless
000 Xxxxxxx and Xxxxxxxx shall agree to a different arrangement
contrary to this Section 3(b), Xxxxxxxx shall pay to 503 Alberta a fee
for Management Services and Additional Services in an amount
equal to One Thousand Dollars ($1,000) per
month.
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3.3
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The
Charges and Fees shall be billed and payment shall be made to 503 Alberta
in U.S. Dollars.
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3.4
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Xxxxxxxx
shall also pay any applicable sales or use taxes payable with respect to
the Charges and the Fees.
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3.5
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503
Alberta shall, as and when necessary, prepare all applications, reports,
statements and other documents showing the Charges, Fees and the related
costs and expenses incurred or paid by 503 Alberta on behalf of Xxxxxxxx
in the performance of any of its responsibilities under this
Agreement.
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3.6
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To
the extent that Xxxxxxxx is billed by an outside provider directly,
Xxxxxxxx shall pay such xxxx directly. If 503 Alberta is billed by outside
providers for services performed for Xxxxxxxx pursuant to this Agreement,
503 Xxxxxxx xxx pay the xxxx and charge Xxxxxxxx the amount of the xxxx or
forward the xxxx to Xxxxxxxx for payment by Xxxxxxxx. A Fee will be
payable on all amounts paid in connection with services related to 503
Alberta's responsibilities hereunder, regardless of whether 503 Alberta or
Xxxxxxxx paid such amounts;
provided.
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ARTICLE
IV
SECTION
4. PAYMENT OF FEES.
4.1
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Amounts
payable by Xxxxxxxx for services provided by 000 Xxxxxxx under this
Agreement shall be payable from and after the first day of the month
following the month in which the Effective Date occurs. Thereafter, such
amounts shall be paid monthly after the first day of the month following
the month in which the services were
provided.
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3
ARTICLE
V
SECTION
5. DISCLAIMER, LIMITED
LIABILITY.
5.1
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000
Xxxxxxx will use reasonable efforts to make the Management Services
available (and, if it agrees to provide the Additional Services,
Additional Services) with substantially the same degree of care as it
employs in making the same services available for its own operations;
provided, however, that 503 Alberta shall not be liable to Xxxxxxxx or any
other person for any loss, damage or expense which may result
therefrom or from any change in the manner in which 503 Alberta renders
such services, so long as 503 Xxxxxxx xxxxx such change necessary or
desirable in the conduct of its own operations.Neither 503 Alberta or its
agents who provide services to Xxxxxxxx shall not be liable to Xxxxxxxx or
to any third party, including any governmental agency or Jedediah's
stockholders, for any claims, damages or expenses relating to the
Management Services (and, if it agrees to provide the Additional Services,
Additional Services) provided pursuant to this Agreement, except for
willful malfeasance, bad faith or gross negligence in the performance of
their duties or reckless disregard of their obligations and duties under
the terms of this Agreement. Xxxxxxxx shall have the ultimate
responsibility for all services provided
herein.
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ARTICLE
VI
SECTION
6. TERM AND
TERMINATION.
6.1
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TERM.
Except as provided in Section 6.2 hereof, the initial term of this
Agreement shall commence on the Effective Date and continue on a month to
month basis. This Agreement shall automatically renew at the end of the
initial month for successive one-month terms until terminated in
accordance with Section 6.3 hereof.
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6.2
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TERMINATION
UPON CERTAIN EVENTS. Upon the effective date of a Prospectus offering of
Jedediah's common stock pursuant to the Securities Act of 1933, as
amended, the Management Services provided under Sections 1.10 and 1.11
shall no longer be provided by 503 Alberta, and this Agreement will
terminate with respect to the provision of such services. Notwithstanding
the foregoing, such termination shall not cancel Jedediah's obligation to
remit payment to 503 Alberta, pursuant to Sections 3 and 4 hereof, for the
provision of such services in the monthly period prior to the closing of
the initial public offering.
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6.3
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TERMINATION
GENERALLY. This Agreement or any Management Service specified in Section 1
hereof may be terminated by either party to this Agreement at anytime on
30 days' prior notice to the other party, or of other prior notice agreed
to by the parties.
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4
6.4
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TERMINATION
OF SPECIFIC SERVICES. Specific services provided hereunder may be
terminated, or shall expire, as described in Section 1 hereof or in any
schedule or addendum hereto. If and to the extent that 503 Alberta incurs
expenses in connection with and resulting from termination of any specific
services provided hereunder, Xxxxxxxx shall reimburse 503 Alberta for such
costs or expenses promptly upon receipt of an itemized account
thereof
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6.5
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POST-TERMINATION
SERVICES. In the event of termination of this Agreement, or a service
provided hereunder, pursuant to Section 6.3 hereof, 503 Alberta shall be
required at Jedediah's option to continue to provide the terminated
services of the type then being provided to Xxxxxxxx during the one-month
period referred to in Section 6.3 hereof and, whether or not Xxxxxxxx
requests continuation of such services, Xxxxxxxx shall continue to pay 503
Alberta the costs of such services for such one-month period. Subsequent
to such one-month period, or in the event of termination of this Agreement
pursuant to Section 6.3, corporate administrative services of the kind
provided under the Agreement may continue to be provided to Xxxxxxxx on an
as-requested basis by Xxxxxxxx, in which event Xxxxxxxx shall be charged
by 000 Xxxxxxx a fee pursuant to Section 3 and Section 4 of
this Agreement.
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ARTICLE
VII
SECTION
7 OTHER ACTIVITIES OF 503
Alberta.
7.1
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Xxxxxxxx
hereby recognizes that 503 Alberta now renders and may continue to render
management and other services to other clients that may or may not have
policies and conduct activities similar to those of Xxxxxxxx. 503 Alberta
shall be free to render such advice and other services, and Xxxxxxxx
hereby consents thereto. 503 Alberta shall devote so much of its time and
attention to the performance of its duties under this Agreement as it
deems reasonable or necessary to perform the services required hereunder
in a manner consistent with that in which such services have been
performed by 503 Alberta in the
past.
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ARTICLE
VIII
8.1 NOTICES.
All notices and other communications hereunder shall be in writing and shall be
delivered by hand or mailed by registered or certified mail (return receipt
requested) or transmitted by facsimile to the parties at the addresses of each
party written above (or at such other addresses for a party as shall be
specified by like notice) and shall be deemed delivered upon personal delivery,
upon actual receipt or on the third business day after deposit in the
mail.
8.2. FORCE
MAJEURE. Neither party shall be in default of this Agreement or liable to the
other party for any delay or default in performance where occasioned by any
cause of any kind or extent beyond its control, including but not limited to,
armed conflict or economic dislocation resulting therefrom; embargoes; shortages
of labor, raw materials, production facilities or transportation; labor
difficulties; civil disorders of any kind; action of any civil or military
authorities (including priorities and allocations); fires; floods; and
accidents. The dates on which the obligations of a party are to be fulfilled
shall be extended for a period equal to the time lost by reason of any delay
arising directly or indirectly from:
5
(a) Any
of the foregoing causes, or
(b) Inability
of that party, as a result of causes beyond its reasonable control, to obtain
instruction or information from the other party in time to perform its
obligations by such dates.
8.3. ENTIRE
AGREEMENT. This Agreement constitutes the entire understanding between the
parties with respect to the subject matter hereof and all prior agreements or
understandings shall be deemed merged herein. No representations, warranties and
certifications, express or implied, shall exist as between the parties except as
stated herein.
8.4. AMENDMENTS.
No amendments, waivers or modifications hereof shall be made or deemed to have
been made unless in writing executed by the party to be bound
thereby.
8.5. SEVERABILITY.
If any provision in this Agreement or the application of such provision to any
person or circumstance shall be invalid, illegal or unenforceable, the remainder
of this Agreement or the application of such provision to persons or
circumstances other than those to which it is held invalid, illegal or
unenforceable shall not be affected thereby.
8.6. COUNTERPARTS.
This Agreement may be executed in any number of counterparts, each of which when
so executed shall be deemed to be an original and all of which when taken
together shall constitute this Agreement.
8.7. SUCCESSORS
AND ASSIGNS. This Agreement shall not be assignable, in whole or in part,
directly or indirectly, by any party hereto without the prior written consent of
the other party hereto, and any attempt to assign any rights or obligations
arising under this Agreement without such consent shall be void. This Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.
8.8. GOVERNING
LAW. This Agreement shall be governed by and construed in accordance with the
laws of the Province of Alberta.
8.9. NO
THIRD-PARTY BENEFICIARIES. This Agreement is solely for the benefit of the
parties hereto and should not be deemed to confer upon third parties any remedy,
claim, liability, reimbursement, claim of action or other right in excess of
those existing without reference to this Agreement.
IN
WITNESS WHEREOF, the parties hereto have caused this Corporate Management
Services Agreement to be executed, effective as of the date first written
above.
Xxxxxxxx
Resources Corp.
Per:
/s/ Xxx X.
Juvkam-Xxxx
Xxx S.
Juvkam-Xxxx, Pres. & CFO
Per:
/s/ Xxx X.
Juvkam-Xxxx
1202503
Alberta Ltd.
Xxx
X. Juvkam-Xxxx, Director