OCTOBER 1999 CONSULTANT COMPENSATION AGREEMENT
THIS CONSULTANT COMPENSATION AGREEMENT (the "Plan") is made as
of this 2nd day of November, 1998, among Entertainment Technologies &
Programs, Inc., a Delaware corporation ("ETPI"); and Xxxxxx X. Xxxxxx, Esq.,
Xxxxxxx X. Xxxxxxxxx, Esq., Xxxxxx X. Xxxxxxx, Xx., Esq. and Xxxxxxx X.
Xxxxxxxxxx, Esq. who have executed and delivered this Plan by the execution
and delivery of the Counterpart Signature Pages which are designated as
Exhibits "A" through "D" hereof (collectively, the "Consultants").
WHEREAS, the Board of Directors of ETPI has adopted a written
compensation agreement for compensation of four individual Consultants who are
natural persons, all of whom are attorneys for the Company; and
WHEREAS, ETPI has engaged the Consultants to provide services
at the request of and subject to the satisfaction of its management; and
WHEREAS, the Consultants have provided services at the request
and subject to the approval of the management of ETPI, and will provide
additional services to ETPI; and
WHEREAS, a general description of the nature of the services
performed and to be performed by the Consultants and the maximum value of such
services under this Plan are listed in the Counterpart Signature Pages; and
WHEREAS, ETPI and the Consultants intend that this Plan and
the services performed hereunder shall be made, requested and performed in
such a manner that this Plan shall be a "written compensation agreement" as
defined in Rule 405 of the Securities and Exchange Commission ("Commission")
pursuant to which ETPI may issue "freely tradeable" shares (except as may be
limited by "affiliate" status) of its common stock as payment for services
rendered pursuant to an S-8 Registration Statement to be filed with the
Commission by ETPI;
NOW, THEREFORE, in consideration of the mutual covenants and
promises contained herein, it is agreed:
Section 1
Compensation Plan
1.1 Employment. ETPI hereby employs the Consultants and the
consultants hereby accept such employment, and have and will perform the
services requested by management of ETPI to its satisfaction during the term
hereof. The services performed by the Consultants hereunder have been and
will be personally rendered by the Consultants, and no one acting for or on
behalf of the Consultants, except those persons normally employed by the
consultants in rendering services to others, such as secretaries, bookkeepers
and the like.
1.2 Independent Contractors. Regardless of the Consultants'
status as "employees" under Rule 405 of the Commission, all services rendered
by the Consultants hereunder have been rendered as independent contractors,
and the Consultants shall be liable for any FICA taxes, withholding or other
similar taxes or charges, and the Consultants shall indemnify and hold ETPI
harmless therefrom; it is understood and agreed that the value of all such
items has been taken into account by the Consultants in computing the billable
rate for the services the Consultants have rendered and agreed to render to
ETPI.
1.3 Term. All services performed at the request of ETPI by the
Consultants shall have been performed within 120 days from the date hereof, at
which time this Plan shall terminate, unless otherwise provided herein;
provided, however, this Plan may be extended for an additional 120 day period
by written agreement of ETPI and any of the Consultants.
1.4 Payment. ETPI and the Consultants agree that ETPI shall pay
the invoices of the Consultants for the services performed under this Plan by
the issuance of shares of its common stock at a price of approximately $0.17
per share; provided, however, such shares of common stock shall be issued
pursuant to and shall be subject to the filing and effectiveness of a
Registration Statement on Form S-8 covering such shares with the Commission.
1.5 Invoices for Services. On the completion of rendering the
services performed by the Consultants hereunder, each of the Consultants shall
provide ETPI with a written invoice detailing the services duly performed.
Such invoice shall be paid by ETPI in accordance with Section 1.4 above,
subject to the satisfaction of the management of ETPI that the services have
been performed, and to the extent performed, that the performance was in a
satisfactory manner. The submission of an invoice for the services performed
by each of the Consultants shall be deemed to be a subscription by the
respective Consultants to purchase shares of common stock of ETPI at the price
outlined in Section 1.4 above, subject only to the filing and effectiveness of
a Registration Statement on Form S-8 covering such shares with the Commission.
1.6 Common Stock Price. To the extent deemed required or
necessary and for all purposes of this Plan, the Consultants shall have an
"option" covering such shares of common stock at the per share price set forth
in paragraph 1.4 above during the term hereof; the Consultants assume the risk
of any decrease in the per share price or value of the shares of common stock
of ETPI that may be issued by ETPI for services performed by the Consultants
hereunder, and the Consultants agree that any such decrease shall in no way
affect the rights, obligations or duties of the Consultants hereunder.
1.7 Limitation on Services. None of the services rendered by
the Consultants and paid for by the issuance of shares of common stock of ETPI
shall be services related to any "capital raising" transaction.
1.8 Delivery of Shares. On submission of an invoice for
services actually performed by the respective Consultants, and duly verified
to the satisfaction of ETPI, and subject to the filing and effectiveness of a
Registration Statement on Form S-8 of the Commission covering such shares, one
or more stock certificates representing such shares shall be delivered to the
respective Consultants at the addresses listed on the Counterpart Signature
Pages, unless another address shall be provided to ETPI in writing prior to
the issuance of such shares.
1.9 Adjustments in the Number of Shares of Common Stock and
Price Per Share. ETPI and the Consultants agree that the per share price of
shares of common stock that may be issued by ETPI to the Consultants for
services performed under this Plan has been arbitrarily set by ETPI; however,
in the event ETPI shall undergo a merger, consolidation, reorganization,
recapitalization, declare a stock dividend of its shares of common stock or
cause to be implemented a forward or reverse stock split which affects the
present number of issued and outstanding shares of common stock of ETPI prior
to the issuance of shares to the Consultants, that the per share price and the
number of shares issuable to the Consultants for services actually rendered
hereunder after such event shall be appropriately adjusted to reflect any such
event.
1.10 Effective Date. The Effective Date of the Plan for each of
the Consultants shall be the date set forth on the respective Counterpart
Signature Pages.
1.11 Conditions. The Plan is subject to the following condition,
to-wit:
The number of shares of common stock to be issued under the
Plan shall in no event exceed 10% of the total issued and
outstanding shares of common stock of the Company on the
date of issuance.
Section 2
Representations and Warranties of ETPI
ETPI represents and warrants to, and covenants with, the
Consultants as follows:
2.1 Corporate Status. ETPI is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware
and is licensed or qualified as a foreign corporation in all states in which
the nature of its business or the character or ownership of its properties
makes such licensing or qualification necessary.
2.2 Compensation Plan. The Board of Directors of ETPI has duly
adopted a Compensation Plan as defined in Rule 405 of the Commission pursuant
to which ETPI may issue "freely tradeable" shares of its common stock as
payment for services rendered, subject to the filing and effectiveness of an
S-8 Registration Statement to be filed with the Commission by ETPI.
2.3 Registration Statement on Form S-8. ETPI shall engage the
services of a competent professional to prepare and file a Registration
Statement on Form S-8 with the Commission to cover the shares of common stock
to be issued under the Plan; shall cooperate with such professional in every
manner whatsoever to the extent reasonably required or necessary so that such
Registration Statement shall be competently prepared, which such Registration
Statement shall not contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements made therein,
in light of the circumstances under which they were made, not misleading, and
which such Registration Statement shall become effective immediately upon its
filing; such Registration Statement shall be prepared at the sole cost and
expense of ETPI; and ETPI will provide to the Consultants prior to the
issuance and delivery of any such shares of common stock a copy of such
Registration Statement, the Compensation Plan adopted by its Board of
Directors, all quarterly, annual or current reports or other documents
incorporated by reference into such Registration Statement and any other
similar reports filed or publicly disseminated following the effective date of
any such Registration Statement.
2.4 Federal and State Securities Laws, Rules and Regulations.
ETPI shall fully comply with any and all federal or state securities laws,
rules and regulations governing the issuance of any such shares of common
stock.
2.5 Limitation on Services. ETPI shall not request the
Consultants to perform any services in connection with any "capital raising"
transaction under this Plan.
2.6 Reports With the Commission. ETPI is required to file
reports with the Commission pursuant to Section 15(d) of the Securities
Exchange Act of 1934, as amended (the "1934 Act"), and ETPI has or will file
with the Commission all reports required to be filed by it forthwith, and
shall continue to file such reports with the Commission so long as required,
but for a period of not less than one year; and such reports are or will be
true and correct in every material respect.
2.7 Corporate Authority and Due Authorization. ETPI has full
corporate power and authority to enter into this Plan and to carry out its
obligations hereunder. Execution of this Plan and performance by ETPI
hereunder have been duly authorized by all requisite corporate action on the
part of ETPI, and this Plan constitutes a valid and binding obligation of ETPI
and performance hereunder will not violate any provision of the Articles of
Incorporation, Bylaws, agreements, mortgages or other commitments of ETPI.
Section 3
Representations and Warranties of the Consultants
Each of the Consultants represents and warrants to, and
covenants with, ETPI as follows:
3.1 Employment. Each of the Consultants hereby accepts
employment by ETPI for the services performed pursuant to this Agreement. The
services performed by the Consultants hereunder have been personally rendered
by the Consultants, and no one acting for or on behalf of the Consultants.
3.2 Accredited Investors. Each of the Consultants represents
and warrants that, by reason of income, net assets, education, background and
business acumen, the Consultants have the experience and knowledge to evaluate
the risks and merits attendant to an investment in shares of common stock of
ETPI, either singly or through the aid and assistance of a competent
professional, and are fully capable of bearing the economic risk of loss of
the total investment of services; further, they are "accredited investors" as
that term is defined under the 1933 Act or the rules and regulations
promulgated thereunder.
3.3 Access to Information. All Consultants acknowledge receipt
of a copy of all reports filed by the Company with the Securities and Exchange
Commission during the past 12 months, and a copy of the written compensation
agreement for their services.
3.4 Suitability of Investment. Prior to the execution of this
Plan, each of the Consultants shall have provided the services outlined in the
respective Counterpart Signature Pages to ETPI, and the Consultants, singly,
or through the advice of a competent professional, fully believe that an
investment in shares of common stock of ETPI is a suitable investment for the
Consultants.
3.5 Limitation on Services. None of the services rendered by
the Consultants and paid for by the issuance of shares of common stock of ETPI
shall be services related to any "capital raising" transaction, and none is
involved in the promotion of the common stock of ETPI, any fund raising
activities on its behalf, and no services being performed hereunder are for
public relation services.
3.6 Authority and Authorization. Each of the Consultants has
full power and authority to enter into this Plan and carry out the obligations
hereunder. Execution of this Plan and performance by the Consultants
hereunder constitutes a valid and binding obligation of the Consultants and
performance hereunder will not violate any other agreement to which any of the
Consultants is a party.
Section 4
Indemnity
ETPI and the Consultants agree to indemnify and hold the other
harmless for any loss or damage resulting from any misstatement of a material
fact or omission to state a material fact by the other contained herein or
contained in the S-8 Registration Statement of ETPI to be filed hereunder, to
the extent that any misstatement or omission contained in the Registration
Statement was based upon information supplied by the other.
Section 5
Termination
Prior to the performance of services hereunder, this Plan may
be terminated (1) by mutual consent of ETPI and the respective Consultants in
writing; (2) by either the Directors of ETPI or the respective Consultants if
there has been a material misrepresentation or material breach of any warranty
or covenant by the other party; and (3) shall automatically terminate at the
expiration of the term hereof, provided, however, all representations and
warranties shall survive the termination hereof; provided, further, however,
that any obligation of ETPI to pay for any services actually rendered by the
Consultants hereunder shall survive any such termination.
Section 6
General Provisions
6.1 Further Assurances. At any time, and from time to time,
after the execution hereof, each party will execute such additional
instruments and take such action as may be reasonably requested by the other
party to carry out the intent and purposes of this Plan.
6.2 Notices. All notices and other communications hereunder
shall be in writing and shall be deemed to have been given if delivered in
person or sent by prepaid first-class registered or certified mail, return
receipt requested, as follows:
If to ETPI: 00000 Xxxxx Xxxxxx Xxxx., Xxxxx 000
Xxxxxxx, Xxxxx 00000
If to Consultants: The addresses listed on the
Counterpart Signature Pages
6.3 Entire Agreement. This Plan constitutes the entire
agreement between the parties and supersedes and cancels any other agreement,
representation, or communication, whether oral or written, between the parties
hereto relating to the transactions contemplated herein or the subject matter
hereof.
6.4 Headings. The section and subsection headings in this Plan
are inserted for convenience only and shall not affect in any way the meaning
or interpretation of this Plan.
6.5 Governing law. This Plan shall be governed by and construed
and enforced in accordance with the laws of the State of Delaware, except to
the extent pre-empted by federal law, in which event (and to that extent
only), federal law shall govern.
6.6 Assignment. Neither ETPI nor the Consultants can assign
any rights, duties or obligations under this Plan, and in the event of any
such assignment, such assignment shall be deemed null and void.
6.7 Counterparts. This Plan may be executed simultaneously in
one or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Plan effective
the day and year first above written.
ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
Date: 11/2/99 By /s/ Xxxxx X. Xxxxxxx, Chairman/CEO
EXHIBIT "A"
OCTOBER 1999 CONSULTANT COMPENSATION AGREEMENT
COUNTERPART SIGNATURE PAGE
THIS COUNTERPART SIGNATURE PAGE for that certain October 1999
Consultant Compensation Agreement among Entertainment Technologies & Programs,
Inc. and the undersigned Consultant is executed as of the date set forth
herein below.
Consultant:
Xxxxxx X. Xxxxxx, Esq.
0000 Xxxx Xxx Xxxx., Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Date: 11/2/99 /s/ Xxxxxx X. Xxxxxx, Esq.
Number of Shares and
Maximum Value
of Services
General Description of Services to be Performed
Legal services, all to be set forth 250,000
in invoices; see attached response. $42,500
EXHIBIT "B"
OCTOBER 1999 CONSULTANT COMPENSATION AGREEMENT
COUNTERPART SIGNATURE PAGE
THIS COUNTERPART SIGNATURE PAGE for that certain October 1999
Consultant Compensation Agreement among Entertainment Technologies & Programs,
Inc. and the undersigned Consultant is executed as of the date set forth
herein below.
Consultant:
Xxxxxxx X. Xxxxxxxxx, Esq.
000 Xxxx "X" Xxxxxx, #0000
Xxx Xxxxx, Xxxxxxxxxx 00000
Date: 11/3/99 /s/ Xxxxxxx X. Xxxxxxxxx, Esq.
Number of Shares and
Maximum Value
of Services
General Description of Services to be Performed
Legal services, all to be set forth 50,000
in invoices; see attached response. $8,500
EXHIBIT "C"
OCTOBER 1999 CONSULTANT COMPENSATION AGREEMENT
COUNTERPART SIGNATURE PAGE
THIS COUNTERPART SIGNATURE PAGE for that certain October 1999
Consultant Compensation Agreement among Entertainment Technologies & Programs,
Inc. and the undersigned Consultant is executed as of the date set forth
herein below.
Consultant:
Xxxxxx X. Xxxxxxx, Xx., Esq.
000 0xx Xxxxxx, #0
Xxxxx Xxxxxx, Xxxxxxxxxx 00000
Date: 00/0/00 /x/ Xxxxxx X. Xxxxxxx, Xx., Xxx.
Number of Shares and
Maximum Value
of Services
General Description of Services to be Performed
Legal services, all to be set forth 50,000
in invoices; see attached response. $8,500
EXHIBIT "D"
OCTOBER 1999 CONSULTANT COMPENSATION AGREEMENT
COUNTERPART SIGNATURE PAGE
THIS COUNTERPART SIGNATURE PAGE for that certain October 1999
Consultant Compensation Agreement among Entertainment Technologies & Programs,
Inc. and the undersigned Consultant is executed as of the date set forth
herein below.
Consultant:
Xxxxxxx X. Xxxxxxxxxx, Esq.
455 East 000 Xxxxx, #000
Xxxx Xxxx Xxxx, Xxxx 00000
Date: 11/2/99 /s/ Xxxxxxx X. Xxxxxxxxxx, Esq.
Number of Shares and
Maximum Value
of Services
General Description of Services to be Performed
Legal services, all to be set forth 50,000
in invoices; see attached response. $8,500
October 27, 1999
Xxxxxx X. Xxxxxx, Esq.
0000 Xxxx Xxx Xxxx., Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Xxxxxxx X. Xxxxxxxxx, Esq.
000 Xxxx "X" Xxxxxx, #0000
Xxx Xxxxx, Xxxxxxxxxx 00000
Xxxxxx X. Xxxxxxx, Xx., Esq.
000 0xx Xxxxxx, #0
Xxxxx Xxxxxx, Xxxxxxxxxx 00000
Xxxxxxx X. Xxxxxxxxxx, Esq.
455 East 000 Xxxxx, #000
Xxxx Xxxx Xxxx, Xxxx 00000
Re: Issuance of compensatory shares of common stock of Entertainment
Technologies & Programs, Inc., a Delaware corporation (the
"Company"), to Xxxxxx X. Xxxxxx, Esq., Xxxxxxx X. Xxxxxxxxx, Esq.,
Xxxxxx X. Xxxxxxx, Esq. and Xxxxxxx X. Xxxxxxxxxx, Esq.,
consultants and counsel, to be registered on Form S-8 of the
Securities and Exchange Commission
Dear Messrs. Nathan, Shepersky, Xxxxxxx and Xxxxxxxxxx:
I represent the Company in connection with the foregoing and have
been engaged to prepare a Registration Statement on Form S-8 of the Securities
and Exchange Commission for the registration of the securities to be issued to
you under a written compensation agreement to be prepared by this office.
Everyone involved is aware that I am the son of Xxxxxxx X.
Xxxxxxxxxx, Esq.
I have prepared a brief Memorandum of the proposed amendments of
the Securities and Exchange Commission to this Form, and have enclosed a copy
thereof for your review.
I am also enclosing copies of the Company's 10-K Annual Report for
the year ended September 30, 1998, and the 10-Q Quarterly Reports for the
quarters ended December 31, 1998, March 31, 1999, and June 30, 1999, and a
copy of the written compensation agreement regarding the shares to be issued
pursuant to the S-8.
I have prepared responses for each of you which will be filed with
the Securities and Exchange Commission respecting a description of the
services you have or will render to the Company and your agreement to these
restrictions. Your response is enclosed herewith and must be fully executed
and delivered to me by each of you.
Please be advised that the certificates that each of you has
previously received, which are imprinted with a "restrictive" legend, should
promptly be returned to me for cancellation as these certificates represent
the shares to be issued pursuant to the S-8 Registration Statement and when
issued, will be issued free of any "restrictive" legend.
Thank you very much.
Yours very sincerely,
/s/ Xxxxxxx X. Xxxxxxxxxx
BTB/sr
Enclosures
cc: Entertainment Technologies & Programs, Inc.
XXXXXX X. XXXXXX, ESQ.
0000 Xxxx Xxx Xxxx., Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Xxxxxxx X. Xxxxxxxxxx, Esq.
000 Xxxx 000 Xxxxx, Xxxxx 000
Xxxx Xxxx Xxxx, Xxxx 00000
Re: Entertainment Technologies & Programs, Inc., a Delaware
corporation (the "Company")
Dear Xx. Xxxxxxxxxx:
Thank you for your letter dated October 27, 1999, regarding the
S-8 proposals of the Securities and Exchange Commission, which I have
reviewed.
I am not a promoter or public relations person for the Company or
any other entity. I have not and do not intend to raise any funding for the
Company. The services I have rendered and intend to render for the benefit of
the Company are all non-capital raising services.
I acknowledge receipt of a copy of all reports filed by the
Company with the Securities and Exchange Commission during the past 12 months,
and a copy of the written compensation agreement for my services.
I also acknowledge that I have read the letter from you regarding
the recent pronouncements of the Securities and Exchange Commission regarding
S-8.
Thank you.
Very truly yours,
Date: 11/2/99 /s/ Xxxxxx X. Xxxxxx, Esq.
XXXXXXX X. XXXXXXXXX
000 Xxxx 'X' Xxxxxx, #0000
Xxx Xxxxx, Xxxxxxxxxx 00000
Xxxxxxx X. Xxxxxxxxxx, Esq.
000 Xxxx 000 Xxxxx, Xxxxx 000
Xxxx Xxxx Xxxx, Xxxx 00000
Re: Entertainment Technologies & Programs, Inc., a Delaware
corporation (the "Company")
Dear Xx. Xxxxxxxxxx:
Thank you for your letter dated October 27, 1999, regarding the
S-8 proposals of the Securities and Exchange Commission, which I have
reviewed.
I am not a promoter or public relations person for the Company or
any other entity. I have not and do not intend to raise any funding for the
Company. The services I have rendered and intend to render for the benefit of
the Company are all non-capital raising services.
I acknowledge receipt of a copy of all reports filed by the
Company with the Securities and Exchange Commission during the past 12 months,
and a copy of the written compensation agreement for my services.
I also acknowledge that I have read the letter from you regarding
the recent pronouncements of the Securities and Exchange Commission regarding
S-8.
Thank you.
Very truly yours,
Date: 11/2/99 /s/ Xxxxxxx X. Xxxxxxxxx
XXXXXX X. XXXXXXX, XX., ESQ.
000 0XX Xxxxxx, #0
Xxxxx Xxxxxx, XX 00000
Xxxxxxx X. Xxxxxxxxxx, Esq.
000 Xxxx 000 Xxxxx, Xxxxx 000
Xxxx Xxxx Xxxx, Xxxx 00000
Re: Entertainment Technologies & Programs, Inc., a Delaware
corporation (the "Company")
Dear Xx. Xxxxxxxxxx:
Thank you for your letter dated October 27, 1999, regarding the
S-8 proposals of the Securities and Exchange Commission, which I have
reviewed.
I am not a promoter or public relations person for the Company or
any other entity. I have not and do not intend to raise any funding for the
Company. The services I have rendered and intend to render for the benefit of
the Company are all non-capital raising services.
I acknowledge receipt of a copy of all reports filed by the
Company with the Securities and Exchange Commission during the past 12 months,
and a copy of the written compensation agreement for my services.
I also acknowledge that I have read the letter from you regarding
the recent pronouncements of the Securities and Exchange Commission regarding
S-8.
Thank you.
Very truly yours,
Date: 11/2/99 /s/Xxxxxx X. Xxxxxxx, Xx.
XXXXXXX X. XXXXXXXXXX, ESQ.
455 East 000 Xxxxx, #000
Xxxx Xxxx Xxxx, Xxxx 00000
Xxxxxxx X. Xxxxxxxxxx, Esq.
000 Xxxx 000 Xxxxx, Xxxxx 000
Xxxx Xxxx Xxxx, Xxxx 00000
Re: Entertainment Technologies & Programs, Inc., a Delaware
corporation (the "Company")
Dear Xx. Xxxxxxxxxx:
Thank you for your letter dated October 27, 1999, regarding the
S-8 proposals of the Securities and Exchange Commission, which I have
reviewed.
I am not a promoter or public relations person for the Company or
any other entity. I have not and do not intend to raise any funding for the
Company. The services I have rendered and intend to render for the benefit of
the Company are all non-capital raising services.
I acknowledge receipt of a copy of all reports filed by the
Company with the Securities and Exchange Commission during the past 12 months,
and a copy of the written compensation agreement for my services.
I also acknowledge that I have read the letter from you regarding
the recent pronouncements of the Securities and Exchange Commission regarding
S-8.
Thank you.
Very truly yours,
Date: 11/2/99 /s/Xxxxxxx X. Xxxxxxxxxx
