CONSULTING AGREEMENT
THIS CONSULTING AGREEMENT
(this “Agreement”) is
entered into and is effective as of April 25, 2008 by and between Centale, Inc./NexxNow, Inc.,
with a principal place of business at 00 Xxxxxxx Xxxxxx, Xxxx Xxxxxx, XX 00000,
(“Company”) and
Market Vision Consulting,
Inc., with principal offices at 00 Xxxxxxx Xxxxxx, Xxxx Xxxxxx, XX 00000
(“Consultant”)
..
R E C I T A L S:
A. Consultant
maintains a database of brokers representing investors interested in owning
stock in companies such as the Company and employs a stock profiler team which
regularly communicates with such brokers.
B. Company
wishes to promote itself through Consultant’s efforts in the brokerage community
in order to gain as much exposure as possible for Company.
T E R M S:
NOW THEREFORE, in
consideration of the mutual premises and covenants contained herein, and other
good and valuable consideration, the receipt, sufficiency and adequacy of which
is hereby acknowledged, the parties agree as follows:
1.00 Services to be Performed by
Consultant
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1.01
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Consultant
shall access its database of brokers, who may be interested in the
Company, and shall utilize a profiler team in
order to contact brokers interested in recommending Company to their
investor clients. Consultant’s profilers will continue to “cold call” on a
regular basis, which will continually add new brokers to the
database.
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1.02
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Consultant
shall diligently market and promote Company to brokers and other
investors, advisors, counselors, trustees, agents and other individuals
and entities whom Consultant is legally permitted to
contact. Consultant will train new profilers to promote the
Company. Company understands and agrees that Consultant’s
database constitutes proprietary information owned by
Consultant.
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1.03
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Consultant
shall provide investor lead management services normal and customary in
the industry. Consultant will handle investor and broker
inquiries (including with the proper disclosures and disclaimers) in a
professional manner.
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1.04
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Consultant
shall organize, initiate, manage and facilitate broker/investor conference
telephone calls at the request of the Company and other presentations
mutually agreeable to Company and Consultant. Expenses for
broker/investor conference calls and other presentations are to be paid by
the Consultant, and must be pre-approved by the
Company.
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1
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1.05
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Consultant
may review and monitor Company’s stockholder base and all transfer agent
and DTC reports, and analyze, present to, and discuss with Company the
results and implications of such reports. Company agrees to
provide Consultant with all DTC reports on a weekly basis and a NOBO list
on a monthly basis.
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1.06
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Consultant
shall provide a DTC analysis upon request by the
Company.
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1.07
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Company
will be permitted to visit Consultant’s facility on a regular basis and
will have the ability to talk in person with Consultant’s employees
regarding their progress during the campaign. Consultant’s
employees will be allowed to contact Company’s management for weekly
conference calls and Company will be permitted to communicate with
Consultant’s management with updated emails on a regular
basis. However, Company represents and warrants it will not
discuss any information that may be considered to be “insider information”
with any employee of Consultant other than upper management and said
discussions and all communication will be solely on a need to know
basis.
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1.08
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In
addition to the services identified in Section 1.01 to 1.06 above, at the
direction of the Company, Consultant has agreed to provide the services
described in Exhibit “A”.
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1.09
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It
is acknowledged and agreed by the Company that Consultant carried neither
professional licenses nor memberships in any self-regulatory
organizations. It is further acknowledged and agreed by the
Company that Consultant is not rendering legal advice or performing
accounting services and is not acting and shall not act as an investment
advisor or broker/dealer within the meaning of any applicable state of
federal securities law.
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1.10
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Consultant
may use all of Company’s Intellectual Property necessary for Consultant to
provide the Services, including but not limited to using Company’s name,
logo and trademarks on any web site maintained by Consultant or in any
promotional materials created in providing Services. Company
will not link any other web site to a web site maintained by Consultant
without the prior written consent of Consultant. Except as
expressly granted hereby, this Agreement does not give either party any
right, title or interest in or to the Intellectual Property of the other
party. After this Agreement has been terminated, all right,
title and interest in and to each party’s Intellectual Property shall be
held solely by that party.
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1.11
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Company
acknowledges that Consultant can make no guarantees as to the share price
or volume of the Company common stock due to unknown factors and
unpredictable market
conditions.
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1.12
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Consultant
representative will have the ability to attend Company Board meetings and
speak on the record in an advisor
capacity.
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2.00
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Terms &
Fees
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2.01
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The
term of this Agreement shall commence upon execution and shall expire two
years from that date. After the Initial Term, this Agreement
shall automatically renew for consecutive six (6) month terms (the
“Renewal Period”).
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Prior
to April 30, 2010, this Agreement may be terminated as
follows:
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(a)
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By
Consultant upon ten days written notice to the
Company;
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(b)
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By
the Company for Cause. As used herein, the term "Cause" shall mean only
the following: (A) conviction during the Term of a crime
involving moral turpitude, or (B) material, willful or gross misconduct by
Consultant in the performance of its duties
hereunder.
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2.02
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As
compensation for Consultant’s services required hereunder, Consultant
shall be entitled to receive:
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(a)
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Compensation: On
a monthly basis thereafter Consultant shall be entitled to receive Twelve
Thousand Five Hundred ($12,500) U.S. Dollars per month in cash and an
additional Fifty Thousand ($50,000) U.S. Dollars in common stock per month
due the 1st
of each month. The value of the common stock delivered will be
based upon the average closing bid price for the last five trading days of
the preceding month. In the event that stock based compensation
would cause Market Vision Consulting, Inc. or any of its affiliates to own
more than 9.9%) of the outstanding shares of the Company, then shares will
be issued up to that limit and any unissued shares will be issued on a
future payment date when issuance would not cause the maximum to be
exceeded.
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(c)
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Registration:
Company agrees to register the common stock issued for compensation in the
name of “Market Vision Consulting, Inc.” in an effective registration with
the SEC within 30 days of the date of this Agreement, which shall become
effective within sixty (60) days after the date of such filing
date. However, Consultant acknowledges that the Company cannot
guarantee the exact date on which SEC shall declare the
effective.
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(d)
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All
services identified in Section 1.01 through and including 1.06 shall
commence upon the effective Date of the SB-2 registration and the issuance
and receipt by Consultant of common stock in the Company. All
other services will be provided from the date of
execution.
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2
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2.03
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Escrow Account:
Company agrees to deposit shares of common stock equal to the total
contract value in an escrow account with an escrow agent of the
Consultant’s choice, upon the signing of this Agreement. Escrow
agent will distribute the shares to the Consultant as and when earned
pursuant to Section 2.02(b) hereof. After expiration of this
Agreement any shares of common stock remaining in escrow will be returned
to the Company.
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3.00
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Representations
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Company
represents and warrants that it is in compliance with all required filings and
regulations of FINRA, the SEC and/or any other governmental agencies, and that
the Company’s stock is not suspended from trading for any reason
whatsoever. Company further represents and warrants that during the
term of this agreement, it will continue to file all required reports with the
SEC, FINRA and/or any other governmental agencies and will continue to adhere to
SEC, FINRA, and/or any other governmental agency’s requirements, and that it
will take whatever steps are deemed necessary to keep its shares listed and
“fully reporting.” The Company’s failure to comply with the
provisions of this paragraph shall constitute a material breach of the parties’
agreement. Since Consultant has agreed to accept payment for
services, in part, in the form of shares of the Company, the Company agrees that
the value of the shares at the time of this agreement will be adversely affected
and impacted if the promotion of the Company to the financial community and
others is suspended due to a breach of the representations and warranties
contained herein. Further, in the event of a breach of the
representations and warranties contained herein the Company agrees to continue
to make any payments due and the Company agrees to pay Consultant one and one
half (1½) times the cash value for any shares Consultant holds or is due and
payable (as part of its compensation for this agreement) at the time of the
Company’s breach of this paragraph. This “make whole payment” shall
be made within five (5) business days of the date of the breach.
Company
understands that the FINRA and SEC require that all press releases be based on
fact. Therefore, Company represents and warrants that it will maintain a filing
of all press releases with the necessary supporting documentation verifying the
contents of the press release. Company will keep back up to every press
release.
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3.01
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Representations and
Warranties of Company. Company represents, warrants and
agrees:
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a.
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Company
has the legal capacity and authority to execute, deliver and perform its
obligations under this Agreement. This Agreement has been duly
authorized, executed and delivered by Company and is its legal, valid and
binding agreement, enforceable against Company in accordance with its
terms. Company’s execution of this Agreement and the
performance of its obligations hereunder do not conflict with or violate
the governing documents of Company or any of its affiliates or any
obligations of Company or any of its affiliates, whether arising by
contract, operation of law or
otherwise.
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3
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b.
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There
is not pending or threatened any action, suit or proceeding before or by
any court or other governmental body or regulatory authority to which
Company or any of its employees or affiliates is or may be a party or any
of its properties is or may be subject, and no event has occurred that
might affect Company’s ability to execute, deliver and perform its
obligations under this Agreement. Without limiting the
foregoing, none of Company and Company’s employees and
affiliates
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i.
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is
subject to an order of the U.S. Securities and Exchange Commission (the
“SEC”) or any other securities regulatory authority relating
to,
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ii.
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has
been convicted of any felony or misdemeanor
involving,
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iii.
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has
been found by the SEC or any other securities regulatory authority to have
engaged in, or has been convicted of engaging in,
or
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iv.
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has
been found liable in any civil proceeding with respect to, a violation of
any federal securities law or any securities law of any other
jurisdiction, or the rules or regulations there under, or aiding,
abetting, counseling, commanding, inducing or procuring such a violation
by another person.
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c.
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All
offers and sales of securities issued by Company, if any, have complied
and will comply with the securities and other laws, and the rules and
regulations there under, of each jurisdiction in which any such offer or
sale was or is made. Without limiting the foregoing, Company
has timely filed all documents with the SEC (the “SEC
Reports”). The SEC Reports comply in all respects with the
requirements of the Securities Act of 1933, as amended, and the Securities
Exchange Act of 1934, as amended, and the rules and regulations there
under. None of the SEC Reports contains any untrue statement of
a material fact or omits to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not
misleading. Company’s financial statements included in the SEC
Reports comply in all respects with applicable accounting requirements and
the published rules and regulations of the SEC, have been prepared in
accordance with generally accepted accounting principles (except, in the
case of un-audited statements, as permitted by Regulations S-X) applied on
a consistent basis (except as may be indicated in the notes thereto), and
fairly present Company’s financial position as of the dates thereof and
the results of its operations and cash flows for the periods then ended
(subject, in the case of un-audited statements, to normal year-end audit
adjustments).
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4
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d.
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All
information, documents and other materials provided by the Company to
Consultant in connection with the Services (the “Information”) are
accurate, complete, true and correct, and no such information, documents
or other material contains any untrue statement of a material fact or
omits to state the statements therein, in light of the circumstances under
which they are made, not
misleading.
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e.
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Company
owns, or has the contractual right to use, all intellectual property it
uses in its business, including, without limitation, all trade secrets,
licenses, trademarks, service marks, trade names, logos, brands,
copyrights, patents, franchises, proprietary technology, domain names and
permits (collectively, “Intellectual Property”). Neither
Company nor any of its employees or affiliates is in breach of any license
or agreement between Company and any third party with respect to Company’s
Intellectual Property and neither Company nor any of its employees or
affiliates has infringed or is infringing on any Intellectual Property of
another party.
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f.
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The
foregoing representations and warranties shall continue during the term of
this Agreement and if any event occurs that could make any of the
foregoing incomplete or inaccurate; such event shall be deemed to be a
material breach by Company of this Agreement and Company immediately shall
notify Consultant of such event.
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3.02
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Representations and
Warranties of Consultant: Consultant represents and
warrants to Company and agrees with Company
that:
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a.
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Consultant
has the legal capacity and authority to execute, deliver and perform its
obligations under this Agreement. This Agreement has been duly
authorized, executed and delivered by Consultant and is its legal, valid
and binding Agreement, enforceable against Consultant in accordance with
its terms. Consultant’s execution of this Agreement and the
performance of its obligations hereunder do not conflict with or violate
Consultant’s governing documents or any obligations by which Consultant is
bound, whether arising by contract, operation of law or
otherwise.
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5
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b.
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Consultant
is authorized to conduct business under the laws of each jurisdiction
where it is required to be so authorized, and shall maintain such
authorizations during the term of this Agreement if required by applicable
law to do so to provide the Services to Company. Consultant
shall provide the Services in compliance with all applicable laws and
regulations.
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4.00
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Miscellaneous
Terms
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4.01
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Anti-dilution
Notification Clause. The company must notify the Consultant in
writing at least 30 days prior to any new shares being added to the
Company’s outstanding share total; including notifying the Consultant if
any new shares are being added to the company’s float. Officers of the
company must notify the Consultant of any transactions regarding the
company’s security. If company violates the anti-dilution clause, then
company must pay Consultant 1.5 times the cash value for any shares the
Consultant holds as part of its compensation for this
agreement.
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4.02
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Successors. The provisions of
this Agreement shall be deemed to obligate, extend to and inure to the
benefit of the successors, assigns, transferees, grantees, and indemnities
of each of the parties to this
Agreement.
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4.03
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Governing
Law. This Agreement and the interpretation and
enforcement of the terms of this Agreement shall be governed under and
subject to the laws of the State of New
York.
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4.04
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Jurisdiction. Jurisdiction
for court action, court and authorities in the State of New York or the
Federal District Court having venue for the State of New York should have
jurisdiction over all controversies that may arise with respect to this
agreement. Company hereby waives any other venue to which it might be
entitled to by virtue of domicile or otherwise and expressly consents and
acknowledges that the courts and authorities in the State of New York
shall have jurisdiction.
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4.05
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Integration. This
Agreement, after full execution, acknowledgment and delivery, memorializes
and constitutes the entire agreement and understanding between the parties
and supersedes and replaces all prior negotiations and agreements of the
parties, whether written or unwritten. Each of the parties to this
Agreement acknowledges that no other party, nor any agent or attorney of
any other party has made any promises, representations, or warranty
whatsoever, express or implied, which is not expressly contained in this
Agreement; and each party further acknowledges that he or it has not
executed this Agreement in reliance upon any belief as to any fact not
expressly recited herein above.
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6
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4.06
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Attorneys
Fees. In the event of a
dispute between the parties concerning the enforcement or interpretation
of this Agreement, the prevailing party in such dispute, whether by legal
proceedings or otherwise, shall be reimbursed immediately for the
reasonably incurred attorneys' fees and other costs and expenses by the
other parties to the dispute.
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4.07
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Context. Wherever the
context so requires, the singular number shall include the plural and the
plural shall include the singular.
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4.08
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Captions. The
captions by which the sections and subsections of this Agreement are
identified are for convenience only, and shall have no effect whatsoever
upon its interpretation.
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4.09
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Severance. If
any provision of this Agreement is held to be illegal or invalid by a
court of competent jurisdiction, such provision shall be deemed to be
severed and deleted and neither such provision, nor its severance and
deletion, shall affect the validity of the remaining
provisions.
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4.10
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Counterparts. This
Agreement may be executed in any number of counterparts, each of which
shall be deemed an original and, when taken together shall constitute one
and the same instrument.
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4.11
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Expenses Associated
With This Agreement. Each of the
parties hereto agrees to bear its own costs, attorney's fees and related
expenses associated with this
Agreement.
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4.12
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Assignability. Consultant
reserves the right to assign all or any portion of its rights under this
agreement.
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4.13
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Authority to
Bind. A responsible officer of each party has read and
understands the contents of this Agreement and is empowered and duly
authorized on behalf of that party to execute
it.
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4.14
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Continuing
Obligations: Both Company and Consultant shall hereafter
execute all documents and do all acts reasonably necessary to effect the
provisions of this Agreement.
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7
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4.15
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Reversion of
Payment: If at any time, Company shall be in default of the payment
provisions of this contract for a period greater than seven (7) days, then
the Consultant shall no longer be obligated to accept payment in the form
of free trading shares of stock and the balance due, and any payments due
thereafter, shall be paid only in cash, certified check, cashiers check or
money order, unless Company is advised otherwise by Consultant in
writing. Further, if at any time, Company shall be in default
of the payment provisions of this contract for a period greater than five
(5) days, all services provided by Consultant under this Agreement shall
be suspended until such time as payment in full of any outstanding balance
is made and services under the Agreement shall be reinstated on the day
after the day on which payment is received. Consultant reserves
the right, at Consultant’s sole option, to submit and assign any
outstanding balance to an independent third party for the purpose of
collecting any outstanding balance owed
Consultant.
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4.16
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Claims, Actions or
Proceedings relating to the issuance of Stock compensation: In the
event that Company compensates Consultant with stock, then Company agrees
to indemnify and hold harmless the Consultant from any action, claim or
proceeding resulting from the issuance of the shares. Said
indemnification shall include all fees and costs including reasonable
attorney’s fees which the Consultant may incur. Consultant
shall have the right to designate its own counsel for representation
arising out of any indemnification and the costs thereof shall be borne by
the Company.
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4.17
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Notices: All
notices must be in writing and sent to the appropriate address listed
above, or to such other address as either party may designate in writing,
by first class mail and either certified mail return receipt requested or
overnight courier service. In the case of certified mail notice
shall be deemed given as of the date of deposit with the United States
Postal Service, and in case of overnight courier service notice shall be
deemed given as of the date of deposit with such overnight courier
service.
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4.18
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Confidentiality:
Both Consultant and Company agree that it will not at any time, or in any
fashion or manner divulge, disclose or otherwise communicate to any person
or corporation, in any manner whatsoever, any information of any kind,
nature, or description concerning any matters affecting or relating to the
business of each others company. This includes its method of
operation, or its plans, its processes, or other data of any kind or
nature that they know, or should have known, is confidential and not
already information that resides in the public domain. Both the
Consultant and Company expressly agree that confidentiality of these
matters is extremely important and gravely affect the successful conduct
of business of each company, and its goodwill, and that any breach of the
terms of this section is a material breach of this
Agreement. The provisions of this section shall survive
termination of the Agreement.
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8
5.00
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Conflicts of
Interest
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5.01
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Consultant
and other Consultant divisions and associates provide services similar to
the Services, as well as other services, to other Companies, including
Company’s competitors. This creates conflicts of interest over
Consultant’s time devoted to providing the Services and providing services
to other Companies. Consultant will attempt to resolve all such
conflicts in a manner that is generally fair to all of its
Companies.
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5.02
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Affiliates
of Consultant are in the business of making investments and providing
investment advice. The Affiliates may purchase or sell
securities of Company. Consultant and the Affiliates shall not
be liable to Company or its shareholders, employees, officers, directors
or affiliates, or any other party, for any direct, indirect,
consequential, incidental, special or punitive
damages.
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5.03
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Certain
Circumstances: Consultant assumes no responsibility for any occurrences
beyond Consultant’s control.
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6.00
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Disclaimer of
Responsibility for Acts of the
Company
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In no
event shall Consultant be authorized or required by this Agreement to represent
or make management decisions for the Company. Consultant shall, under
no circumstances, be made liable for any expense incurred or loss suffered by
the Company as a consequence of such decisions by the Company or any affiliates
or subsidiaries of the Company as a result of services performed by Consultant
hereunder. CONSULTANT DISCLAIMS ANY AND ALL WARRANTIES RESPECTING THE
SERVICES AND ACTIVITIES, INCLUDING ALL IMPLIED WARRANTIES OF NON-INFRINGEMENT,
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT
SHALL CONSULTANT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, OR CONSEQUENTIAL
DAMAGES ARISING OUT OF OR OTHERWISE RELATING TO THE SERVICES TO BE PROVIDED
UNDER THIS AGREEMENT, HOWEVER CAUSED, EVEN IF CONSULTANT HAS BEEN ADVISED OF THE
POSSIBILITY OF LIKLIHOOD OF SUCH DAMAGES. IN NO EVENT SHALL
CONSULTANT’S LIABILITY FOR DAMAGES UNDER OR RELATING TO THIS AGREEMENT,
REGARDLESS OF HOW ARISING, EXCEED THE AMOUNT OF CASH COMPENSATION PAID TO
CONSULTANT HEREUNDER.
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7.00
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Limitations on
Liability
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The
obligations of Consultant under this Agreement are limited solely to furnishing
the Services to Company. Consultant provides the Services without
warranty of any kind, either express or implied, including but not limited to
the implied warranties of merchantability and fitness for a particular purpose,
which Consultant disclaims. Consultant does not guarantee or make any
representations or warranties regarding the results or benefits of the
Services. Company is responsible for all information, including, but
not limited to, Company’s Intellectual Property, that is transmitted, published,
distributed, presented or otherwise disseminated in connection with or as a
result of the Services. Consultant shall not be liable to Company or
any of its shareholders, employees, officers, directors or affiliates for any
direct, indirect, consequential, incidental, special or punitive damages,
including but not limited to lost profits, loss of opportunity and other damages
(collectively “Damages”).
8.00
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Independent
Contractor
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Consultant
is and will hereafter act as an independent contractor and not as an employee of
Company, and nothing in this Agreement may be interpreted or construed to create
any employment, partnership, joint venture or other relationship between
Consultant and Company. Nothing contained herein shall be considered
to create an employer-employee relationship between the parties to this
Agreement. The Company shall not make social security, workers’
compensation or unemployment insurance payments on behalf of
Consultant. The parties hereto acknowledge and agree that Consultant
cannot guarantee the results of any of the services rendered or to be rendered
by Consultant. Rather, Consultant shall conduct its operations and
provide its services in a professional manner and in accordance with good
industry practice. Consultant will use its reasonable business
efforts in providing services to Company.
9.00
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Enforceability of
Agreement
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This
Agreement shall neither be deemed to be nor be enforceable until executed by
Consultant. Further, should the parties fail to execute this
Agreement within thirty (30) days from the date of delivery of this Agreement,
then this Agreement and all the terms and conditions contained herein shall
become and be deemed null and void and neither party named herein shall be bound
hereby. Consultant, without the consent of Company, shall have the
sole option to extend the time requirements set forth within this section 9.00,
and any request by Company to extend the time requirements set forth in section
9.00 must be approved by Consultant in writing.
IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date set forth
above.
Centale,
Inc./NexxNow, Inc.
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By:
/s/ Xxxx
Xxxxx
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Xxxx
Xxxxx, President
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Market
Vision Consulting, Inc.
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By:
/s/ Xxxxxxxx X.
Xxxx, Xx.
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Xxxxxxxx
Xxxx, CEO
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10
E
X H I B I T A
(MANAGEMENT
CONSULTING SERVICES)
Upon the
request of the Company, Consultant has agreed to provide the services described
below under the terms and conditions set forth in this Agreement and the
Consultant will work closely with the Company to set priorities and objectives
to be accomplished during this engagement.
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A)
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Assist
in Defining Capital needs and Sources and Uses of
Funds.
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B)
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Work
closely with Client to develop a Business
Plan
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C)
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Assist
Client’s Attorney in drafting a Private Placement Memorandum and
Subscription.
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D)
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Assist
in the preparation of all of the appropriate form filing to raise private
capital.
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E)
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Research
and evaluate current and future acquisition candidates based on the
Client’s outlined acquisition
strategy.
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F)
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Analyze,
Evaluate and do preliminary Due Diligence on any current and future
acquisition candidates. This includes meetings in Person, by
Phone, Fax, Email, etc.
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G)
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Evaluate
existing and Develop new Distribution Channels for the Client’s products.
Consultant shall receive a commission of five (5%) percent of gross sales
in like kind for any sales made through the direct efforts of Consultant
and/or through any distribution channels which Consultant
develops. This subsection shall survive termination of the
agreement.
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H)
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Layout
Timeline and Action Plan based on the outlined acquisition
strategy.
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I)
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Assist
Client in editing Press Releases and keeping a calendar of Press Releases
going out four (4) weeks.
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J)
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General
Business Consulting (answering questions, giving advice, introductions) as
required.
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K)
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A
5% finder’s fee will be paid on capital raised by company where a
professional/accredited investor was introduced by Market Vision
Consulting, Inc.
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L)
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6%
acquisition fee will be paid to Market Vision Consulting for any
acquisition or merger opportunities effected or introduced by Market
Vision Consulting, Inc.
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11