CONSULTING & MARKETING
AGREEMENT BETWEEN
XXXXXX XXXXXX
AND
GATEWAY
CONSULTING AND MARKETING AGREEMENT
THIS CONSULITNG AND MARKETING LISCENSE AGREEMENT (this "AGREEMENT") is
between Xxxxxx Xxxxxx (the "CONSULTANT") Gateway Distributors Ltd (the
"COMPANY"). Consultant and the Company are also referred to in this agreement as
the "PARTIES".
WHERAS, the Company intends to negotiate settlement of past debt and
WHEREAS, the Company desires to utilize the services of the Consultant to reduce
its debt; and
WHEREAS, in connection with the services to be provided by the Consultant
pursuant to this Agreement, no agreements will be entered into by the Consultant
on behalf of the Company without written consent of the company.
NOW THEREFORE, in consideration of the premises and mutual covenants set
forth in the Agreement, the parties hereby agree as follows:
1. SCOPE OF SERVICES: The Company hereby retains the Consultant to
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promote and develop a market for the Products and Services. The Consultant
agrees to use his best efforts during the term of this Agreement to reduce the
Company's past debt.
2. TERM: This Agreement shall become effective as of the date set
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forth on the signature page of this Agreement, and shall continue for a period
of one (1) year (the "TERM"). Notwithstanding the foregoing, the Company or the
Consultant shall be entitled to terminate this Agreement for "cause" upon 30
days' written notice shall be effective upon mailing by first class mail
accompanied by facsimile transmission to the Consultant at the address and
telecopier number last provided by the Consultant to the Company, "CAUSE" shall
be determined solely as the violation of any rule or regulation of any
regulatory agency, and other neglect, act or omission detrimental to the conduct
of Company or the Consultant's business, material breach of this Agreement or
any unauthorized disclosure of any of the secrets of confidential information of
Company, and dishonesty related to independent contractor status.
3. LICENSE: No license or right is granted by the Company to the
Consultant, either expressly or by implication, under any licenses or
rights owned or controlled by the Company, except as expressly set
forth in this Agreement.
4. COMPENSATION; GRANT OF STOCK OPTION: In consideration for the
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services to be provided by the consultant to the Company under the terms of this
Agreement, the Company agrees to grant to the Consultant upon the execution of
this Agreement a non-qualified stock option (the "OPTION") to purchase up to the
number of shares (the "SHARES") of the Company's common stock ( the "COMMON
STOCK") as set for the below which shall fully vest immediately upon execution
of this Agreement, at an exercise price as set forth below:
Total Dollar Amount: $50,000
Percentage per Share (in US$): 70% of the preceding day close
The terms of the Option shall otherwise be set forth in a Non-Qualified Stock
Option Agreement between the Company and the Consultant, substantially in the
form attached as Exhibit A to this Agreement. The Company agrees to register
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the Shares upon signing of this agreement for resale under the Securities Act of
1933, as amended, pursuant to a registration statement filed with the Securities
and Exchange Commission of for S-8 (or, if Form S-8 is not then available, such
other form of registration statement available), pursuant to the terms of such
registration set forth in the Non-Qualified Stock Option Agreement.
5. CONFIDENTIALITY: The Consultant covenants that all information
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concerning the Company, including proprietary information, which it obtains as a
result of the services rendered pursuant to this Agreement shall be kept
confidential and shall not be used by the Consultant except for the direct
benefit of the Company nor shall the confidential information be disclosed by
the Consultant to any third party without the prior written approval of the
Company, provided, however, that the Consultant shall not be obligated to treat
as confidential, or return to the Company copies of any confidential information
that (i) was publicly known at the time of disclosure to Consultant, (ii)
becomes publicly known or available thereafter other than by any means in
violation of this Agreement or any other duty owed to the Company by the
Consultant, or (iii) is lawfully disclosed to the Consultant by a third party.
6. INDEPENDENT CONTRACTOR: The Consultant and the Company hereby
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acknowledge that the Consultant is an independent contractor. The Consultant
agrees not to hold himself out as, nor shall he take any action from which
others might reasonably infer that the Consultant is a partner or agent of, or a
joint venturer with the Company. In addition, the Consultant shall take no
action, which, to the knowledge of the Consultant, binds, or purports to bind,
the Company to any contract or agreement.
7. MISCELLANEOUS:
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(a) GOVERNING LAW: This Agreement shall be construed under the
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internal laws of the State of California, and the Parties agree that the
exclusive jurisdiction for any litigation or arbitration arising from this
Agreement shall be in Las Vegas, Nevada.
(b) SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon
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the Parties, their successors and assigns, provided, however, that the
Consultant shall not permit any other person or entity to assume these
obligations hereunder without the prior written approval of the Company
which approval shall not be unreasonably withheld and written notice of the
Company's position shall be given within ten (10) days after approval has
been requested.
(c) COUNTERPARTS: This Agreement may be executed in two or more
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counterparts, each of which shall be deemed an original, but which when
taken together shall constitute one agreement.
(d) SEVERABILITY: If one or more provisions of this Agreement are
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held to be unenforceable under applicable law, such provision(s) shall be
excluded from this Agreement and the balance of this Agreement shall be
interpreted as if such provision were excluded and shall be enforceable in
accordance with its terms.
Address for Notices:
CONSULTANT COMPANY:
Xxxxxx Xxxxxx Gateway Distributors Ltd
IN WITNES WHEREOF, the Parties hereto have executed or caused this
Agreement to be executed as of the date set forth below.
CONSULTANT GATEWAY DISTRIBUTORS LTD
By: __________________________ By: ___________________
Xxxxxx Xxxxxx Xxxx Xxxxxx
Consultant President
Date: ______________ Date: ______________
EXIHIBIT A
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FORM OF
NON-QUALIFIED STOCK OPTION AGREEMENT
THIS NON-QUALIFIED STOCK OPTION AGREEMENT (this "AGREEMENT") is between
Xxxxxx Xxxxxx (the "GRANTEE") and the other party named on the signature page to
this Agreement (the "COMPANY"). Each of the Grantee and the Company are also
referred to in this agreement as the "PARTIES".
WHEREAS, the Board of Directors of the Company (the "BOARD OF DIRECTORS")
has authorized the grant to the Grantee, for services to be rendered by the
Grantee as a consultant to the Company pursuant to the terms of a Consulting and
Marketing License Agreement (the "CONSULTING AGREEMENT") between the Company and
the Grantee of non-qualified stock option (the "OPTION") to purchase the number
of shares of the Company's common stock (the "COMMON STOCK") specified in
paragraph 1 of this Agreement, at the price specified in paragraph 1 of this
Agreement.
NOW THEREFORE, in consideration of the premises and mutual convenants set
forth in the Agreement, the Parties hereby agree as follows:
1. NUMBER OF SHARES; EXERCISE PRICE: Pursuant to action taken by the
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Board of Directors, the Company hereby grants to the Grantee, in
consideration of consulting services to be performed for the benefit
of the Company pursuant to the Consulting Agreement, an option
("OPTION") to purchase the number of common shares ("OPTION SHARES")
of Common Stock set forth below, at the exercise price set forth
below:
Total Dollar Amount: $50,000
Exercise Price or Percentage per Share (in US$): 70% of five day low.
2. TERM: The Option and this Agreement shall expire one year from
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the date of signing of this agreement.
3. SHARES SUBJECT TO EXERCISE: The Option shall be immediately
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exercisable and shall remain exercisable for the entire Term specified
in Paragraph 2 of this Agreement.
4. METHOD AND TIME OF EXERCISE: The Option may be exercised in whole
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or from time to time in part by written notice delivered to the
Company stating the number of Option Shares with respect to which the
Option is then being exercised, together with a check and/or a wire
transfer made payable to the Company in the amount equal to the
Exercise Price multiplied by the number of Option shares then being
issued pursuant to the written notice of exercise, plus the amount of
applicable federal, state and local withholding taxes, provided,
however, that such taxes may be satisfied by the withholding of Option
Shares then issuable upon the exercise of the Option pursuant to
paragraph 5 of this Agreement. Not less than one hundred (100) Option
Shares may be purchased upon exercise of the Option at any one time
unless the number of Option Shares for which exercise of the Option is
being made is all of the Option Shares then issuable upon exercise of
the Option. Only whole shares shall be issued upon exercise of the
Option.
5. TAX WITHHOLDING: As a condition to exercise of the Option, the
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Company may require the Grantee to pay to the Company all applicable
federal, state and local taxes which the Company is required to
withhold with respect to the exercise of the Option. Or the grantee is
liable for filing and paying all of his own taxes.
6. EXERCISE FOLLOWING TERMINATION OF CONSULTING AGREEMENT: The
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Option shall not terminate as a result of the termination of Grantee's
services as a consultant to the Company pursuant to the Consulting
Agreement.
7. TRANSFERABILITY: The Option and this Agreement may not be
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assigned or transferred except by will or by the laws of descent and
distribution, and with consent of the Company.
8. GRANTEE NOT A SHAREHOLDER: The Grantee shall have no rights as a
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shareholder with respect to the Option Shares issued from time to time
upon exercise of the Option until the earlier of: (1) the date of
issuance of a stock certificate or stock certificates to the Grantee
applicable to the Option Shares then issuable to the grantee upon
exercise of the Option and (2) the date on which the Grantee or his
nominee is recorded as owner of such Option Shares on the Company's
stock ledger by the Company's registrar and transfer agent, which may
be the Company. Except as set forth in paragraph 13 of this Agreement,
no adjustment will be made for dividends or other rights for which the
record date is prior to the earlier of the events described in clauses
(1) and (2) of this paragraph. All voting rights remain with the
President of the Company.
9. RESTRICTIONS ON TRANSFER: The Grantee represents and agrees that,
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upon the Grantee's exercise of the Option in whole or in part, unless
there is in effect at that time under the Securities Act of 1933 a
registration statement relating to the Option Shares, the Grantee will
acquire the Options Shares for the purpose of investment and not with
a view to their resale or further distribution, and that upon such
exercise hereof, the Grantee will furnish to the Company a written
statement to such effect, satisfactory to the Company in form and
substance.
10. SHARES QUALIFIED FOR LISTING: Company represents that its Common
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Stock is qualified for trading or quotation on a nationally recognized
securities exchange or stock quotation system, including, without the
NASDAQ Bulleting Board, and for trading with the California Department
of Corporations or such other applicable jurisdictions.
11. REGISTRATION RIGHTS: On or before the day of this Agreement, the
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Company shall, at the Company's expense, file with the Securities and
Exchange Commission ("SEC"), a registration statement ("REGISTRATION
STATEMENT") on Form S-8 or other comparable form, or if such form is
not then available, such other form of registration statement then
available, in such form as to comply with applicable federal and state
laws for the purpose of registering or qualifying the Option Shares
for public resale by the Grantee, and prepare and file with the
appropriate state securities regulatory authorities the documents
reasonably necessary to register or qualify the Option Shares, subject
to the ability of the Company to register or qualify the Option Shares
under applicable state law.
12. NOTICES: All notices to the Company shall be addressed to the
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Company at the principal office of the Company at the address and
facsimile number set forth on the signature page of this Agreement,
and all notices to the Grantee shall be addressed to the Grantee a the
address and facsimile number of the Grantee set forth on the signature
page of this Agreement, or if different, the last address and
facsimile number on file with the Company, or to such other address
and facsimile number as either may designate to the other in writing.
A notice shall be deemed to be duly given if and when enclosed in a
properly addressed sealed envelope deposited, postage prepaid and
followed by facsimile to the addressee. In lieu of giving notice by
mail as foresaid, written notices under this Agreement may be given by
personal delivery to the Grantee or to the Company (as the case may
be) by nationally recognized courier or overnight delivery service.
13. ADJUSTMENTS: If there is any change in the capitalization of the
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Company after the date of this Agreement affecting in any manner the
number of kind of outstanding shares of Common Stock of the Company,
whether by stock dividend, stock split, reclassification or
recapitalization of such stock, or because the Company has merged or
consolidated with one or more other corporations (and provided the
Option does not thereby terminate pursuant to paragraph 14 of this
Agreement), then the
number and kind of shares then subject to the Option and the exercise
price to be paid for the Option Shares shall be appropriately adjusted
by the Board of Directors; provided, however, that in no event shall
any such adjustment result in the Company being required to sell or
issue any fractional shares. This Agreement is subject to market
conditions. Any such adjustment shall be made without change in the
aggregate exercise price applicable to the unexercised portion of the
Option, but with an appropriate adjustment to the exercise price of
each Option Share or other unit of security then covered by the Option
and this Agreement.
14. CESSATION OF CORPORATE EXISTENCE: Notwithstanding any other
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provision of this Agreement, in the event of the reorganization,
merger or consolidation of the Company with one or more corporations
as a result of which the Company is not the surviving corporation, or
the sale of substantially all the assets of the Company or of more
that fifty percent (50%) of the then outstanding stock of the Company
to another corporation or other entity in a single transaction, the
Option grated hereunder shall terminate, provided, however, that not
later than five (5) days before the effective date of such merger or
consolidation or sale of assets in which the Company is not the
surviving corporation, the surviving corporation may, but shall not be
so obligated to tender to the Grantee an option to purchase a number
of shares of capital stock of the surviving corporation equal to the
number of Option Shares then issuable upon exercise of the Option, and
such new option or options for shares of the surviving corporation
shall contain such terms, conditions and provisions as shall be
required substantially to preserve the rights and benefits of the
Option and this Agreement.
(a) ENTIRE AGREEMENT: This Agreement and the Consulting
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Agreement contain the entire agreement between the Parties, and
may not be waived, amended, modified or supplemented except by
agreement in writing signed by the Party against whom enforcement
of any waiver, amendment, modification or supplement is sought.
Waiver of or failure to exercise any rights provided by this
Agreement and the Consulting Agreement in any respect shall not
be deemed a waiver of any further or future rights.
15. MISCELLANEOUS
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(b) GOVERNING LAW: This Agreement shall be construed under the
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internal laws of the State of Nevada, and the Parties agree that
the exclusive jurisdiction for any litigation or arbitration
arising from this Agreement shall be in Las Vegas Nevada.
(c) COUNTERPARTS:This Agreement may be executed in two or more
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counterparts, each of which shall be deemed an original, but
which when taken together shall constitute one agreement.
(d) SEVERABILITY: If one or more provisions of this Agreement
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are held to be unenforceable under applicable law, such
provision(s) shall be excluded from this Agreement and the
balance of this Agreement shall be interpreted as if such
provision were excluded and shall be enforceable in accordance
with its terms.
IN WITNES WHEREOF, the Parties hereto have executed or caused this
Agreement to be executed as of the date set forth below.
CONSULTANT GATEWAY DISTRIBUTORS LTD
By: __________________________ By: ___________________
Xxxxxx Xxxxxx Xxxx Xxxxxx
Consultant President
Date: ______________ Date: ______________
