CONSULTING AGREEMENT
The parties to this Consulting Agreement ("Agreement") are Xxxxxxx
Associates (the "Consultant") and Uncommon Media Group, Inc., a Florida
corporation (the "Company"). The Company desires to contract with the Consultant
for certain investment relations services, and the Consultant is willing to
render such services as hereinafter more fully set forth.
THEREFORE, in consideration of the mutual agreements and covenants set
forth in this Agreement, the parties agree as follows:
1. Engagement of the Consultant. The Company hereby engages and retains
the Consultant to render to the Company the strategic product sourcing services
described in Section 2 hereof (the "Services") for a period of twelve months
commencing on the date hereof (the "Consulting Period").
2. Description of Consulting Services. The Consultant agrees to act as
advisor to the Company and, in that regard, to assist the Company (i) in
identifying, analyzing, structuring, negotiating and financing suitable business
opportunities of which the Company may take advantage and (ii) in connection
with the preparation of annual and interim reports and press releases and with
in dealing with financial public relations. Consultant agrees to obtain the
consent of the Company prior to contacting any potential participants in any
transaction or financing.
3. Payment for Services Rendered. In consideration for Consultant's
agreements hereunder, the Company agrees to issue to the Consultant 100,000 (one
hundred thousand) shares of restricted common stock of the Company (the
"Shares")
4. Representations of Consultant.
4.1 The Consultant recognizes that the receipt of the Shares
involves a high degree of risk in that (i) the Company is a
development-stage company; (ii) an investment in the Company
is highly speculative; (iii) he/she/it may not be able to
liquidate his/her/its investment; and (iv) transferability of
the securities comprising the Shares is extremely limited.
4.2 The Consultant acknowledges that he/she/it has prior
investment experience, or that he/she/it has employed the
services of an investment advisor, attorney, or accountant to
read all of the documents furnished or made available by the
Company both to him/her/it and to all other prospective
investors in the Shares and to evaluate the merits and risks
of such an investment on his/her/its behalf, and that
he/she/it recognizes the highly speculative nature of this
investment.
4.3 The Consultant acknowledges that he/she/it has been
furnished by the Company during the course of evaluating
his/her/its interest in this transaction with all information
regarding the Company which he/she/it had requested or desired
to know; that all documents which could be reasonably provided
have been made available for his/her/its inspection and
review; that he/she/it has been afforded the opportunity to
ask questions of and receive answers from duly authorized
officers or other representatives of the Company concerning
the terms and conditions of the offering; that he/she/it has
read and fully understands and acknowledges those risk factors
associated with an investment in the Shares which are
identified in public filings with the Securities and Exchange
Commission; and that any and all additional information which
he/she/it had requested has been provided.
4.4 The Consultant acknowledges that this offering of Shares
may involve tax consequences and that he/she/it has received
no opinions or statements from the Company in respect of same.
The Consultant further acknowledges that he/she/it must retain
his own professional advisors to evaluate the tax and other
consequences of an investment in the Shares.
4.5 The Consultant acknowledges that he/she/it has not been
the subject of any general solicitation by the Company, and
that he/she/it knows of no general solicitation, including any
general advertising, by the Company in connection with the
sale of the Shares.
4.6 The Consultant acknowledges that the Shares have not been
registered under the Securities Act of 1933, or the securities
laws of any state, that the Shares are being purchased for
investment purposes and not with a view to distribution or
resale, nor with the intention of selling, transferring or
otherwise disposing of all or any part of the Shares for any
particular price, or at any particular time, or upon the
happening of any particular event or circumstances, except
selling, transferring or disposing of said Shares in full
compliance with all applicable provisions of the Act, the
Rules and Regulations promulgated by the SEC thereunder or in
connection therewith, and applicable state securities laws.
The Consultant further acknowledges that such Shares must be
held indefinitely unless they are subsequently registered
under the Act, or an exemption from such registration is
available, and an opinion of counsel is furnished stating that
registration is not required under the Act or such state
securities laws.
4.7 The Consultant acknowledges that the certificates to be
issued may bear a legend containing the following or similar
words:
"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"ACT") OR ANY OTHER SECURITIES LAWS. THESE SECURITIES HAVE
BEEN ACQUIRED FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO
DISTRIBUTION OR RESALE, AND MAY NOT BE TRANSFERRED, SOLD OR
OTHERWISE DISPOSED OF, OR OFFERED FOR TRANSFER, SALE OR OTHER
DISPOSITION IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR SUCH SECURITIES UNDER THE ACT, AND ANY OTHER
APPLICABLE SECURITIES LAWS, OR THE AVAILABILITY OF AN
EXEMPTION FROM REGISTRATION UNDER THE ACT AND ANY OTHER
APPLICABLE SECURITIES LAWS".
4.8 The Consultant hereby agrees to indemnify and hold
harmless the Company and each of its officers, directors,
affiliates, shareholders, employees, agents and attorneys
against any and all losses, claims, demands, liabilities and
expenses (including reasonable legal or other expenses as such
are incurred) incurred by each such person in connection with
defending or investigating any claims or liabilities, whether
or not resulting in any liability to such person to which any
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such indemnified party may become subject under the Act, under
any other statute, at common law or otherwise, insofar as such
losses, claims, demands, liabilities and expenses (a) arise
out of or are based upon any untrue statement or alleged
untrue statement of a material fact contained in this
Agreement, or (b) arise out of or are based upon any breach of
any representation, warranty or agreement contained herein.
5. Nonexclusivity of this Agreement. The Company expressly understands
and agrees that the Consultant shall not be prevented or barred from rendering
services of the same nature as, or a similar nature to, those described herein,
or of any nature whatsoever, for or on behalf of any person, firm, corporation
or entity other than the Company. The Consultant understands and agrees that the
Company shall not be prevented or barred from retaining other persons or
entities to provide services of the same nature or similar nature as those
described herein or of any nature whatsoever.
6. Disclaimer of Responsibility for Acts of the Company. The
obligations of the Consultant described in this Agreement consist solely of the
furnishing of information and advice to the Company. In no event shall the
Consultant be permitted or required by this Agreement to act as the agent of the
Company or otherwise to represent or make decisions for the Company. Consultant
is, and to be considered an Independent Contractor of the Company. All final
decisions with respect to acts of the Company, its subsidiaries or its
affiliates, whether or not made pursuant to or in reliance on information or
advice furnished by the Consultant hereunder, shall be those of the Company or
such subsidiaries or affiliates.
7. Acknowledgement. The Company acknowledges that Consultant is not a
registered broker-dealer and that Consultant cannot, and shall not be required
hereunder to, engage in the offer or sale of securities on behalf of the
Company. While Consultant has relationships and contacts with various investors,
broker-dealers, and investment funds, Consultant's participation in the actual
offer or sale of the Company securities shall be limited to that of an advisor
to the Company and a "finder" of investors, broker-dealers and funds. The
Company acknowledges and agrees that the solicitation and consummation of any
purchases of the Company's securities shall be handled by the Company or one or
more NASD member firms engaged by the Company for such purposes.
8. Confidentiality. The Consultant will not disclose to any other
person, firm, or corporation, nor use for its own benefit, during or after the
term of this Agreement, any trade secrets or other information designated as
confidential by the Company which is acquired by the Consultant in the course of
performing services hereunder. (A trade secret is information not generally
known to the trade which gives the Company an advantage over its competitors.
Trade secrets can include, by way of example, products or services under
development, production methods and processes, sources of supply, customer lists
and marketing plans.) Any consulting or other advice rendered by the Consultant
pursuant to this Agreement may not be disclosed publicly in any manner without
the prior written approval of the Consultant. Any information, which (i) at or
prior to the time of disclosure by the Company to the Consultant was generally
available to the public through no breach of this Agreement, (ii) was available
to the public on a nonconfidential basis prior to its disclosure by the Company
to the Consultant or (iii) was made available to the public from a third party
provided that such party did not obtain or disseminate such information in
breach of any legal obligation of the Consultant shall not be deemed
confidential information of the Company for purposes hereof.
9. Amendment. No amendment to this Agreement shall be valid unless such
amendment is in writing and is signed by authorized representatives of all the
parties to this Agreement.
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10. Waiver. Any of the terms and conditions of this Agreement may be
waived at any time and from time to time in writing by the party entitled to the
benefit thereof, but a waiver in one instance shall not be deemed to constitute
a waiver in any other instance. A failure to enforce any provision of this
Agreement shall not operate as a waiver of the provision or of any other
provision hereof.
11. Severability. In the event that any provision of this Agreement
shall be held to be invalid, illegal or unenforceable in any circumstances, the
remaining provisions shall nevertheless remain in full force and effect and
shall be construed as if the unenforceable portion or portions were deleted.
12. Governing Law. This Agreement shall be governed by and construed
and enforced in accordance with the internal laws of the State of New York.
13. Notices. All notices, requests, payments, instructions, claims or
other communications hereunder shall be in writing and shall be deemed to be
given or made when delivered by first-class, registered or certified mail to the
following address or addresses or such other address or addresses as the parties
may designate in writing in accordance with this Section:
If to the Company: Uncommon Media Group, Inc.
00 Xxxx 00xx Xxxxxx
0xx Xxxxx
Xxx Xxxx, XX 00000
With a copy to: Membrado & Montell, LLP
000 X. 00xx Xxxxxx
Xxx Xxxx, XX 00000
If to the Consultant: [ ]
Attn:
14. Assignment. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and assigns; provided,
however, that this Agreement shall not be binding on or inure to the benefit of
any successor or assign of the Consultant where, as a result of such succession
or assignment, control of the entity which would otherwise succeed to the rights
and obligations of this Agreement is materially different from the control of
the entity having such rights and obligations prior to such succession or
assignment.
15. Entire Contract. This Agreement shall constitute the only agreement
between the Company and the Consultant. No representations, promises,
understandings, or agreements, oral or otherwise, not herein contained shall be
of any force or effect.
16. Captions. The captions and headings contained herein are solely for
convenience and reference and do not constitute a part of this Agreement or
affect in any way the meaning or interpretation of this Agreement.
17. Severability. To the extent possible, each provision of this
Agreement shall be interpreted in a manner as to be valid, legal and
enforceable. Any term of provision of this Agreement which is invalid or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
solely to the extent of such provision which is invalid or unenforceable within
rendering invalid or unenforceable the remaining terms and conditions hereof.
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18. Execution in Counterparts. This Agreement may be executed by the
parties in separate counterparts, each of which when so executed and delivered
shall be deemed to be an original and all of which when taken together shall
constitute one and the same agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of this 24th day of July, 2001.
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UNCOMMON MEDIA GROUP, INC.
By:____________________________
Name:
Title:
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