CONSULTING AGREEMENT
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This agreement is made this 25th day of April 2004 between THE RIGHT SOLUTION
GATEWAY at 0000 Xxxx Xxxxxxx Xxxx, Xxxxx 00, Xxx Xxxxx, Xxxxxx 00000,
hereinafter referred to as RSG. Phone number (000) 000-0000 and Xxxx X. Xxxxxx
at 0000 Xxxx Xxxxxxxx Xxxxx, Xxxxxxxxx, XX. 00000 . Phone number (000) 000-0000
and Xxxx Xxxxx at 0000 Xxxxxx Xxxxxx, Xxx Xxxxx, Xxxxxxxxxx, XX. 00000 Phone
number (000) 000-0000 hereinafter referred to as CONSULTANTS. This agreement
entered into with Consultants is in addition to any agreements already in place
between TRS and Xxxx X. Xxxxxx. This agreement will not negate or supersede any
previous agreements and commitments already in place with Xxxx X. Xxxxxx.
RSG agrees to retain Consultants, and Consultants has agreed to provide certain
consulting services on the terms and conditions set out below.
RESPONSIBILITIES OF CONSULTANTS:
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INCREASE INCOME AND PROFIT FOR TRS THROUGH . . .
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1) PRODUCT SALES. Through the expertise and proven abilities of Xxxx Xxxxx a
massive advertising campaign will be created on any two of the products RSG
feels have the most sizzle and the most appeal to the masses with the sole
purpose of getting the TRS name out there and generating large quantities of
sales for those products. (See projections attached, Exhibit A)
2) CREATING A LARGER DOWNLINE ORGANIZATION. Ongoing and massive advertising
campaigns will be done to entice people to take advantage of the TRS business
opportunity. This campaign will be designed to attempt to bring on massive
numbers of business builders/distributors. All of these will go under Xxxx
Xxxxx. (See projections attached Exhibit A)
3) ADVERTISING CAMPAIGN
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These massive advertising campaigns may include, but will not be limited to:
30 and 60 second Radio Commercials Radio interviews
30 and 60 second Television Advertising Television Infomercials
Xxxx Boards In Flight Media
Print Media of all kinds including major
Magazines like Parade magazine, TV Guide,
Readers Digest, USA Today, Guide Posts, the Wall Street Journal and many more.
4) PUBLIC RELATIONS
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Xxxxx will cause weekly Press Releases to go out over the financial wires to
brokerage houses, newspapers, financial institutions etc. These press releases
will inform the public as to the progress, sales, growth and future of TRS. Of
course all press releases will be approved by TRS.
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Consultants and Xxxxx will also write a weekly news release or newsletter to be
sent to past, present and future TRS distributors to be sent out via email or
fax. This will be designed to excite distributors about the business and inspire
them to take action.
Xxxxx will also contact business leaders he knows to entice them to come on
board as business builders starting with a presentation to a major church with
500,000 members.
RESPONSIBILITIES OF RSG
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1. RSG shall make available to the consultants up to 500 million shares of
stock to be used by Xxxxx to acquire the advertising and public relations
campaign described above in paragraphs 1 through 4 under Responsibilities of
Consultants. RSG shall set aside whatever venue they decide these 500 in million
shares of 144 or S 8 stock to fund the advertising campaign that Xxxxx will
initiate. Each buy will be approved in advance by RSG. it is understood that
Xxxxx has many contacts and many sources to obtain this advertising which
include cash, trading stock (free trading and restricted), bartering, the use of
barter currency, direct trades as well as advertising he owns. RSG agrees to
approve or disapprove said buys within 48 hours and if approved they agree to
release sufficient amounts of stock from the stock set aside to fund said media
buys.
2. In exchange for Consultant's services listed above, RSG shall pay each
Consultant a guaranteed amount of $29,500 in cash or S8 stock with the first
amount issued or paid upon the signing of this contract and then every 60 to 90
days thereafter. See paragraph
2a) All business generated via the network marketing organization by
CONSULTANTS will be placed under the current center owned by Xxxx Xxxxx. All
income that this position generates shall be paid to Xxxx Xxxxx just as any
other TRS distributor.
2b) This position owned by Xxxx Xxxxx will be flagged and qualified for
commission payments each month by the Company. Xxxx Xxxxx shall not be required
to meet any minimum monthly qualifications to get paid this income except as
described in paragraph 1a below. All income earned by this position shall be
paid to Xxxx Xxxxx just as all other distributors are assuming the minimum
monthly requirement is met as described in paragraph 1a below
3. In the event the consultants shall no longer be able, or no longer wish,
to perform the services as outlined above Xxxx Xxxxx will still be paid the
income from his distributor position as are all TRS distributors, however the
company shall no longer be obligated to pay the $29,500 to either of the
consultants every 90 days. In addition should either of the above mentioned
events happen Xxxx Xxxxx shall, in the month following said event, be required
to start paying the standard minimum amount each month required by the company
to qualify his position to be paid the income earned from that position as long
as said income is equal to, or greater than, the one hundred dollar minimum
qualification.
4. Consultants shall be provided monthly statements showing the income of
the Xxxxx position and total product sales for the month.
5. All order taking and fulfillment of product sales and distributor and
customer inquiries shall be the responsibility of RSG or The Right Solution and
at their expense.
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6. In addition to paragraph 2 above, consultants shall be issued additional
restricted stock within 5 days of the following events happening: RSG shall
issue to each Consultant additional stock as described in paragraphs 6a thorough
6e below.
6a The consultants shall each be issued 5,000 dollars worth of stock for each
$50,000 in gross sales that is generated each month. For example: If the gross
sales are at $50,000 in one month the consultants each get $5,000 worth of stock
for that month. If the gross sales for the next month is at least $50,000 but
less than $100,000 in gross sales the consultants will only receive an
additional $5,000 in stock for the first $50,000 in sales. This shall continue
for the length of the contract.
6b If the gross sales in any given month is between $100,000 to $149,999 in
gross sales the consultants will each receive $10,000 worth of stock that month.
6c If the gross sales in any given month is between $150,000 to $199,999 in
gross sales the consultants will each receive $15,000 worth of stock that month.
In other words, for each $50,000 in gross sales in any given month each
consultant shall be issued $ 5,000 worth of shares of stock that month. For
example: If the sales stay between $50,000 and $99,999 a month for 5 months n a
row each consultant shall only receive $5,000 worth of restricted stock each of
those five months.
6d If the gross sales drop below $50,000 in any given month no stock will be
issued to the consultants that month.
6e The close of the stock price on the day the stock is issued will determine
the price. This figure shall be calculated by adding the revenue generated under
the center owned by Xxxxx and the direct sales of the two top products being
promoted by Xxxxx, or a combination of both. This stock will be restricted for a
period of one year from the date of issuance. This shall be repeated each time
the consultants succeed in reaching an additional level of $50,000 in gross
sales as described above. This will be ongoing as long as the agreement stays in
effect.
7. All expenses for Consultant's services shall be part of the $29,500.00
paid to each consultant over the 90-day period at $9,833.00 paid to them every
month on or before the first of each month. (See paragraph 2 above)
8. After a six-month period a review will be done on the value of this
agreement to all parties. In the event it is beneficial to all parties this
agreement will be extended.
9. The company has the right to terminate this agreement without cause at
any time with a thirty-day notice after the first 6 months. Should company
decide to terminate this agreement the company shall be obligated to pay all
approved outstanding invoices or media buys already committed to.
This contract will be construed according to the laws of the State of Nevada and
any disputes arising here from will be litigated in its courts.
This contract sets forth the entire understanding and agreement and is not
subject to amendment or supplemental agreement except in writing and duly
executed by both
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Consultants and RGS. This agreement shall be valid and binding only when signed
by both an authorized agent for RSG and both Consultants.
Signed _________________________________ Date ___________________
Xxxx X. Xxxxxx
Signed _________________________________ Date ___________________
Xxxx Xxxxx
Signed The Right Solution Gateway
_________________________________ Date ___________________
Xxxx Xxxxxx President / CEO
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EXHIBIT A
PROJECTIONS
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ASSUMPTIONS: These projections are based on a .5% from TV ads, a 1% success rate
for radio, a 1% on the TV infomercials and a 2% success rate from the Radio
infomercials. These are all projected over a 12 to 18 month time frame. Although
Xxxxx thinks these projections are very conservative they are not to be
construed as guarantees.
PRODUCT ADS ONLY
RADIO -60 SECOND ADS AT 1% SALES
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25 stations with an average of 25,000 listeners at the time(s) the ad is run.
25 stations X 25,000 listeners = 650,000 total listeners X 1% - 6,500 buyers
6,500 buyers X $30.00 product = $195,000 IN GROSS SALES
$195,000 IN SALES EVERY MONTH X 12 MONTHS = $2,340,000 TO TRS
Sell these product buyer leads to distributors --
6,500 leads X $10.00 EACH = $65,000 TO TRS 6,500 leads X $ 5.00 EACH = $37,500
TO TRS
60 SECOND TELEVISION ADS AT OF 1% SALES (.5%)
10 stations with an average of 250,000 viewers at the time(s) the ad is run.
10 stations X 250,000 listeners = 2,500,000 total viewers X .5% - 12,500 buyers
12,500 buyers X $30.00 product = $375,000 IN GROSS SALES
$375,000 IN SALES EVERY MONTH X 12 MONTHS = $4,500,000 TO TRS
Sell these product buyer leads to distributors --
12,500 leads X $10.00 each = $125,000 TO TRS
12,500 leads X $ 5.00 each = $ 62,500 TO TRS
HALF HOUR RADIO INFOMERCIALS at 2% sales
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50 stations with an average of 25,000 listeners at the time(s) the show is run.
50 stations X 25,000 listeners = 1,250,000 total listeners X 2% - 25,000 buyers
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25,000 buyers X $30.00 product = $750,000 IN GROSS SALES
$750,000 IN SALES EVERY MONTH X 12 MONTHS = $9,000,000 TO TRS
Sell these product buyer leads to distributors --
25,000 leads X $10.00 EACH = $250,000 TO TRS
25,000 leads X $ 5.00 EACH = $125,000 TO TRS
TV INFOMERCIALS AT 2% SALES
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50 stations with an average of 500,000 viewers at the time(s) the infomercial
airs.
50 stations X 500,000 viewers = 25,000,000 total viewers X.1% - 250,000 buyers
250,000 buyers X $30.00 product = $7,500,000 IN GROSS SALES
$750,000 IN SALES EVERY MONTH X 12 MONTHS = $9,000,000 TO TRS
Sell these product buyer leads to distributors --
250,000 leads X $10.00 each = $2,500,000 TO TRS
250,000 leads X $ 5.00 each = $1,250,500 TO TRS
PRINT MEDIA
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FULL AND HALF PAGE ADVERTIZING FOR BUSINESS BUILDERS 2% response. The ad will
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fully qualify the prospect by stating that there is a $900 to $2,300 cost etc.
10 million readers x 2% response = 200,000 respondents.
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200,000 respondents X 2% sign up rate = 4,000 new distributors.
4,000 X $ 900 (ADVANCE PROGRAM) = $3,600,000 TO TRS
4,000 X $2,300 (SUPERIOR PROGRAM) = $9,200,000 TO TRS
Do this 6 to 12 times a year and TRS could have 24,000 to 48,000 new business
building distributors just from advertising. This does not include any
projections on how many new recruits the new distributors will bring on.
PROJECTED INCOME IN MILLIONS = BETWEEN $10,000,00 AND $27,730,000
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