Document:

EXHIBIT 10.5

	 

CONSULTING AGREEMENT 

This Consulting Agreement (this “Agreement”) is made and effective as of the 23rd of January,
2008 (the “Effective Date”), by and between Danny Chan (hereinafter referred to as
“Consultant”) and ALL Fuels and Energy Company (hereinafter referred to as “Company”). 

      WHEREAS, the Consultant is hired to provide Business Advisory Services to the Company;
and 

      WHEREAS, the Consultant is willing to enter into an agreement with the Company upon the
terms and conditions herein set forth. 

      NOW, THEREFORE, in consideration of the premises and covenants herein contained, the
parties hereto agree as follows: 

      1. Term.  Subject to the terms and conditions hereof, the term of engagement of the
Consultant under this Consulting Agreement shall be for the period commencing on January 23,
2008 (the “Commencement Date”) and terminating on July 22, 2008, unless sooner terminated as
provided in accordance with the provisions of Section 5 hereof.  (Such term of this agreement is
herein sometimes called the “Retained Term”). 

      2.  Consulting Duties.  As of the Commencement Date, the Company hereby agrees to retain
the Consultant to provide Business Advisory Services as may be requested by the Company
during the term hereof.  

       

3. Compensation and Benefits During the Engagement Term. 

         1. Reimbursement.   The Company agrees to reimburse Consultant for all reasonable
ordinary and necessary business and travel related expenses upon pre-approved authorization.

 

         2. Restricted Stock.  The Consultant shall receive 500,000 shares of the Company’s
common stock upon execution of this agreement. Such shares shall be deemed fully earned and
are not tied to any performance criteria during the entire term of the Agreement. 

 

         3. Fees.  The Company agrees to pay for any and all fees and expenses that are incurred by
the Consultant on the Company’s behalf. Such expenses are to be paid upon the 5th day of being
presented to the Company by the Consultant.

 

      All stock issued pursuant to this Agreement will have “piggy-back” registration rights. The
Company shall not withhold authorization to issue a legal opinion pursuant to Rule 144 for any
reason. Such opinion is to be issued within 5 days of the request by the Consultant.  

       

4.           Termination.   

         1.     Consultant's engagement under the Agreement may be terminated by the Company for
any reason. 

 

         2.      Effects of Termination.  In the event that the Agreement is terminated by the
Company or upon expiration of the term of the Agreement, neither the Consultant nor the
Company shall have any further obligations hereunder except for (a) obligations occurring prior
to the date of termination, and (b) obligations, promises or covenants contained herein which are
expressly made to extend beyond the term of the Agreement.

 

         3.      Notwithstanding the above, all compensation under Section 3.b is deemed fully
earned upon the execution of this Agreement and is not subject to any conditions from the
termination of this Agreement in any manner. 

 

      5.  Arbitration.  If a dispute should arise regarding this Agreement, all claims, disputes,
controversies, differences or other matters in question arising out of this relationship shall be
settled finally, completely and conclusively by arbitration of a single arbitrator, which is mutually
agreed upon, in Houston, Texas, in accordance with the Commercial Arbitration Rules of the
American Arbitration Association (the "Rules").  Arbitration shall be initiated by written
demand.  This Agreement to arbitrate shall be specifically enforceable only in the District Court
of Harris County, Texas.  A decision of the arbitrator shall be final, conclusive and binding on
the Company and the Consultant, and judgment may be entered in the District Court of Harris
County, Texas, for enforcement and other benefits. On appointment, the arbitrator shall then
proceed to decide the arbitration subjects in accordance with the Rules.  Any arbitration held in
accordance with this paragraph shall be private and confidential.  The matters submitted for
arbitration, the hearings and proceedings and the arbitration award shall be kept and maintained
in strictest confidence by Consultant and the Company and shall not be discussed, disclosed or
communicated to any persons.  On request of any party, the record of the proceeding shall be
sealed and may not be disclosed except insofar, and only insofar, as may be necessary to enforce
the award of the arbitrator and any judgment enforcing an award.  The prevailing party shall be
entitled to recover reasonable and necessary attorneys' fees and costs from the non-prevailing
party. 

      6. Survival.  In the event that this Agreement shall be terminated, then notwithstanding such
termination, the obligations of Consultant pursuant to Section 6 of this Agreement shall survive
such termination.   

      7. Contents of Agreement, Parties in Interest, Assignment, etc.  This Agreement sets forth the
entire understanding of the parties hereto with respect to the subject matter hereof.  All of the
terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be
enforceable by the respective heirs, representatives, successors and assigns of the parties hereto,
except that the duties and responsibilities of Consultant hereunder which are of a personal nature
shall neither be assigned nor transferred in whole or in part by Consultant.  This Agreement shall
not be amended except by a written instrument duly executed by the parties.   

      8. Severability; Construction.  If any term or provision of this Agreement shall be held to be
invalid or unenforceable for any reason, such term or provision shall be ineffective to the extent
of such invalidity or unenforceability without invalidating the remaining terms and provisions
hereof, and this Agreement shall be construed as if such invalid or unenforceable term or
provision had not been contained herein.  The parties have participated jointly in the negotiation
and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption
or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any
of the provisions of this Agreement. 

      9. Notices.  Any notice, request, instruction or other document to be given hereunder by any
party to the other party shall be in writing and shall be deemed to have been duly given when
delivered personally; or five (5) days after dispatch by registered or certified mail, postage
prepaid, return receipt requested; or one (1) day after dispatch by overnight courier service; in
each case, to the party to whom the same is so given or made: 

      If to the Company addressed to: 

      ALL Fuels and Energy Company

      6165 NW 86th St.

      Johnston, IA, 50131

      Attn:  Chief Executive Officer 

      If to Consultant addressed to: 

      Danny Chan

      113 W G St #137

      San Diego, CA 9201 

      or to such other address as the one party shall specify to the other party in writing. 

       

      10. Counterparts and Headings.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all which together shall constitute
one and the same instrument.  All headings are inserted for convenience of reference only and
shall not affect the meaning or interpretation of this Agreement. 

      11. Governing Law; Venue.  This Agreement shall be construed and enforced in accordance
with, the laws of the State of Texas, without regard to the conflict of laws provisions thereof.
Venue of any dispute concerning this Agreement shall be exclusively in Harris County, Texas. 

      12. Waiver.  The failure of either party to enforce any provision of this Agreement shall not
be construed as a waiver or limitation of that party’s right to subsequently enforce and compel
strict compliance with every provision of this Agreement. 

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed and delivered as of the day and year first above written. 

 

Consultant

 

 

/s/ DANNY CHAN

Danny Chan

ALL FUELS AND ENERGY CORPORATION 

/s/

Dean Sukowatey, Chief Executive OfficerEXHIBIT 10.6

	 

SETTLEMENT AGREEMENT 

This Settlement Agreement (this “Agreement”) is made and entered into as of this 13th day of
December, 2007 (the “Effective Date”), by and between All Fuels & Energy Company, formerly
known as iCrystal, Inc., a Delaware corporation (the “Company”), All Energy Company, a
wholly owned subsidiary of the Company and a Delaware corporation (“All Energy”) and Dean
Sukowatey (“Sukowatey”) on the one hand, David Loflin (“Loflin”), and Eric Newlan and
Newlan & Newlan (collectively “Newlan”), on the other hand.  Each are a “Party” and,
collectively, the “Parties” to this Agreement.

RECITALS

A.  In January 2007 All Energy purchased 4,700,000 shares of common stock of the Company
from Loflin (the “Transaction”).

B.  Disputes have arisen between the Company, All Energy and Sukowatey, on the one hand, and
Loflin and Newlan, on the other hand. 

D.  Each Party, without any admission of liability, desires to settle fully all claims, allegations,
liabilities, demands, damages, actions and causes of action against one another arising out of or
related to the Company and the Transaction.

E.  Subject to the terms set forth herein, Loflin agrees to cancel 1,238,100 share of the
Company’s common stock owned by him, All Energy, Loflin and Newlan agree to lock-up the
remaining common stock held by them until a registration statement is deemed effective by the
Securities and Exchange Commission to register the resale of the shares held by them with the
exception of 136,900 shares held by Loflin that will be subject to a leak-out provision, the parties
agree to cause the termination of the Agreement for Dividend Distribution pursuant to a
termination agreement, and Newlan agrees to deliver certain legal opinions to the Company as
set forth herein.

AGREEMENT

NOW, THEREFORE, for and in consideration of the recitals set forth above and the covenants
and agreements set forth below, the Parties agree as follows:

1. Definitions.

(a) “Claims” means all theories of recovery of whatever nature, whether known or unknown, and
now recognized by the law or equity of any jurisdiction related in any manner at any time prior to
and including the Effective Date.  This term includes causes of action, charges, indebtedness,
losses, claims, liabilities, and demands, whether arising in equity or under the common law (tort,
contract or other) or under any contract, ordinance or statute.

(b) “Damages” means all elements of relief or recovery of whatever nature, whether known or
unknown, which are recognized by the law or equity of any jurisdiction related to in any manner
at any time prior to and including the Effective Date.  This term includes actual, incidental,
indirect, consequential, compensatory, liquidated, exemplary, and punitive damages; rescission;
attorneys’ fees; interest; costs; equitable relief; and expenses.

(c) “Company Released Parties” means and includes the Company and All Energy and each of
their respective subsidiaries, predecessors, successors, affiliates, shareholders, directors, officers,
attorneys, employees and other agents, including Sukowatey.  

(d) “Loflin Released Parties” means and includes Loflin and Newlan its predecessors, successors
and affiliates, partners, members, directors, officers, attorneys, employees and other agents.  

2. Representations.

(a) Loflin hereby represents that as of the Effective Date, Loflin has voting and investment
control of 1,860,000 shares of Company common stock which are held directly in his name
(621,900 shares of the Company common stock when giving effect to the transaction
contemplated herein) and 36,900 shares of Company common stock which are held in street
name), which Loflin has requested from his broker to be delivered via DWAC into certificated
form with the Company’s transfer agent.  Loflin does not have voting and investment control
over any other shares of the Company’s common stock. The 36,900 shares of Company common
stock held by Loflin which will be delivered via DWAC and 100,000 shares currently certificated
will not be cancelled herein and are referred to as the “Loflin Leak-Out Shares.”  The 521,900
shares of Company common stock held by Loflin in certificated form, including 100,000 shares
held by Tommy Loflin in certificated form, Loflin’s son, after giving effect to the transaction
contemplated herein are referred to as the “Loflin Shares.”

(b) Newlan hereby represents that as of the Effective Date, Newlan has voting and investment
control of 976,500 shares of Company common stock, 750,000 are held in the name of “Newlan
& Newlan”, 120,000 of which are held in the name of “FMF Investments, Ltd.” and 106,500
shares of Company common stock which are currently held in street name, which Newlan has
requested from his broker to be delivered into certificated form with the Company’s transfer
agent. Newlan does not have voting or investment control over any other shares of the
Company’s common stock. The 976,500 shares of Company common stock held by Newlan after
giving effect to the transaction contemplated herein are referred to as the “Newlan Shares.” 

(c) All Energy hereby represents that as of the Effective Date, All Energy has voting and
investment control of 7,050,000 shares of Company common stock which are held directly in its
name.  All Energy does not have voting or investment control over any other shares of the
Company’s common stock. The 7,050,000 shares of Company common stock held by All Energy
after giving effect to the transaction contemplated herein are referred to as the “All Energy
Shares.”

(d) All the parties hereby represent and acknowledge that Newlan has not represented any party,
other than itself, in connection with this Agreement.

3. Release by Loflin and Newlan.  

In full consideration of the Company, All Energy and Sukowatey’s respective execution of this
Agreement and their agreement to be legally bound by its terms, Loflin and Newlan release and
discharge the Company Released Parties from all Claims and Damages arising from, attributed to
or related to the Company, the Transaction or Loflin and Sukowatey’s business relationship, for
any reason whatsoever, that arose on or before the Effective Date.  The Company, All Energy and
Sukowatey acknowledge the value associated with Loflin and Newlan’s release of such Claims
and Damages.

4. Release by the Company, All Energy and Sukowatey.    In full consideration of the Loflin and
Newlan’s respective execution of this Agreement and their agreement to be legally bound by its
terms, the Company, All Energy and Sukowatey release and discharge the Loflin Released
Parties from all Claims and Damages arising from, attributed to or related to the Company, the
Transaction or Loflin and Sukowatey’s business relationship, for any reason whatsoever, that
arose on or before the Effective Date.  Loflin and Newlan acknowledge the value associated with
the Company, All Energy and Sukowatey release of such Claims and Damages.

5. Conditions to Closing.  

(a) Cancellation of Shares.  On the Effective Date, Loflin shall deliver to the Company the
certificates representing 1,238,100 shares of the Company’s common stock to be cancelled by the
Company.  Loflin agrees to execute transfer agent instruction letter regarding the cancellation of
the 1,238,100 shares, which is attached hereto as Exhibit C.  Loflin agrees to have these shares
returned to the Company’s transfer agent for cancellation by no later than January 31, 2008.

(b) Lock-up.  All Energy, Loflin and Newlan each respectively agree not to sell, pledge,
hypothecate, transfer, assign or in any other manner dispose of any of the All Energy Shares,
Loflin Shares and Newlan Shares, respectfully, until an effective registration statement
registering the resale of any of the All Energy Shares, Loflin Shares and Newland Shares is on
file with the Securities and Exchange Commission.  All Energy, Loflin and Newlan agree to
allow the Company to place a restrictive legend on all such shares and have the transfer agent
make a notation on the stock transfer legend regarding these restrictions.  All Energy, Loflin and
Newlan each respectfully agree to have their respective All Energy Shares, Loflin Shares and
Newlan Shares returned to the Company’s transfer agent for re-certification and/or legend
placement by no later than January 31, 2008.

(i) The Company agrees to register the resale of the Loflin Shares and Newlan Shares if at any
time it registers the resale of the All Energy Shares.  This restriction shall terminate and this
Agreement shall be of no further force or effect upon a change of control, as defined as follows:

(ii) A sale, transfer, or other disposition through a single transaction or a series of transactions of
all or substantially all of the assets of the Company to an Unrelated Person or Unrelated Persons
(as defined below)  acting in concert with one another.

(iii) Any consolidation or merger of the Company with or into an Unrelated Person, unless
immediately after the consolidation or merger the holders of the common stock of the Company
immediately prior to the consolidation or merger are the beneficial owners of securities of the
surviving corporation representing at least fifty (50%) percent of the combined voting power of
the surviving corporation’s then outstanding securities.

(iv) For the purposes of this section, the term “Unrelated Person” shall mean and include any
Person other than the Holder, the Company, a wholly-owned subsidiary of the Company, or an
employee benefit plan of the Company.

(c) Leak-Out.  Loflin agrees that he will only sell an amount up to one twenty-fourth (1/24h) of
the Loflin Leak-Out Shares per 30-day period beginning on February 1, 2008. The Holder
acknowledges that the certificates representing the Loflin Leak-Out Shares will contain certain
restrictive legends reflecting this resale restriction.  Loflin agrees to have the Loflin Leak-Out
Shares returned to the Company’s transfer agent for re-certification and legend placement by no
later than January 31, 2008, which shall be returned to Loflin within 10 days after receipt.  

(d) Instructions to the Transfer Agent.  Each of Loflin, Nelwan and All Energy shall execute and
deliver their respective attached instruction letter to the Company on the Effective Date, in order
for the Company’s transfer agent to re-certificate and/or place appropriate legends on the
certificates representing the Loflin Shares, Loflin Leak-Out Shares, Newlan Shares and All
Energy Shares, respectfully.  The instruction letters are hereby attached as Exhibit D-1 (Loflin),
Exhibit D-2 (Newlan) and Exhibit D-3 (All Energy).  Additionally, Loflin, Newlan and All
Energy agree to provide gold medallion stock powers and any other documentation the transfer
agent deems necessary to effectuate the transactions contemplated herein.

(e) Agreement for Dividend Distribution.  The Parties agree to cause the Termination Agreement,
attached hereto as Exhibit A, to be executed thereby canceling the Agreement for Dividend
Distribution, executed by and between the Company and Venus Associates, Inc., the Company’s
subsidiary (“Venus”).  

(f) Legal Opinions.  On the Effective Date, Loflin and Newlan shall deliver to the Company legal
opinions as attached hereto as Exhibit B.

(g) Transfer of Venus shares.  The Company shall transfer 1,000 shares of Venus common stock
to Loflin within 10 days of the Effective Date.

6. Liquidated Damages.  

The parties agree that the just compensation for the harm that would be caused by the failure of
Loflin, Newlan or All Energy’s failure to either re-certificate and/or place a legend on the Loflin
Shares, Loflin Leak-Out Shares, Newlan Shares and All Energy Shares cannot be accurately
estimated or would be very difficult to accurately estimated and that Loflin, Newlan and All
Energy each agree to pay the Company $200.00 for each day Loflin, Newlan and/or All Energy,
respectfully, is in default of Sections 5(b) or 5(c).  In addition, Loflin agrees to pay an additional
$200.00 per day for each day that Loflin is in default of Section 5(a).

7. Choice of Law..  This Agreement shall be interpreted and construed in accordance with and
shall be governed by the laws of the State of Texas (without giving effect to principles of
conflicts of law of Texas or any other jurisdiction) and, when applicable, the laws of the United
States.  The parties agree that the venue for any proceeding brought under this Agreement shall
be in the courts of Harris County, Texas. 

8. Entire Agreement.  This Agreement constitutes the entire agreement of the parties relating to
the subject matter of this Agreement, and any previous agreements with respect to these matters
are superseded by this Agreement.  No term, provision or condition of this Agreement may be
modified in any respect except by a writing executed by all of the parties hereto.  No person has
any authority to make any representation or promise on behalf of any of the parties not set forth
in this Agreement.  This Agreement has not been executed in reliance upon any representation or
promise except those contained herein.

9. No Admission of Liability.  The Parties have entered into this Agreement solely for the
purpose of avoiding the burdens and expense of litigation, and the making of this Agreement is
not intended, and shall not be construed, as an admission that any of the Company Released
Parties or Loflin Released Parties have violated any federal, state and/or local law, ordinance or
regulation, breached any contract, committed any wrong or made any error whatsoever.

10. Waiver.  The failure of any party to enforce or to require timely compliance with any term or
provision of this Agreement shall not be deemed to be a waiver or relinquishment of rights or
obligations arising hereunder, nor shall this failure preclude the enforcement of any term or
provision or avoid the liability for any breach of this Agreement.

11. Severability.  Each part, term or provision of this Agreement is severable from the others.
Notwithstanding any possible future finding by a duly-constituted authority that a particular part,
term or provision is invalid, void or unenforceable, this Agreement has been made with the clear
intention that the validity and enforceability of the remaining parts, terms and provisions shall
not be affected thereby, provided, however, that if either Section 2 or Section 3 of this
Agreement, or any part of either such section, is so determined to be invalid, void, or
unenforceable, then such other section, or the like part of such other section, as the case may be,
shall be deemed also to be invalid, void, or unenforceable.

12. Costs and Fees.  Each party shall bear its own costs and attorneys’ fees.

13. Construction.  This Agreement shall be deemed drafted equally by the parties.  The language
of this Agreement shall be construed as a whole and according to its fair meaning.  Any
presumption or principle that the language is to be construed against any party shall not apply.
The headings in this Agreement are for convenience and are not intended to affect construction
or interpretation.  This Agreement represents a compromise of disputed claims and is not to be
construed as an admission, direct or indirect, against any interest of the parties.  The plural
includes the singular and the singular includes the plural; “and” and “or” are each used both
conjunctively and disjunctively; “any” and “all” each mean “any and all”; “each” and “every”
each mean “each and every”; and “including” and “includes” are each “without limitation.”

14. Execution.  It is acknowledged by the parties that this Agreement may be executed in several
counterparts, all of which taken together shall constitute one single Agreement between the
parties.  The parties agree to execute any and all further documents as may be necessary to
effectuate the terms and provisions of this Agreement, but this obligation shall not extend to any
document that alters or amends the terms of this Agreement.

15. Authorized ApprovalThe terms and conditions of this Agreement have been approved by the
Patries in the manner required under each of their governing documents.

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of
the Effective Date.

ALL FUELS & ENERGY COMPANY 

By: /s/ DEAN E. SUKOWATEY

Name: Dean E. Sukowatey

Title: President

ALL ENERGY COMPANY

By: /s/ DEAN E. SUKOWATEY

Name: Dean E. Sukowatey

Title: President

  

/s/ DEAN SUKOWATEY    

Dean Sukowatey

/s/ DAVID LOFLIN   

David Loflin

/s/ ERIC NEWLAN    

Eric Newlan

NEWLAN & NEWLAN

By: /s/ Eric Newlan

Name: Eric Newlan

Title: Partner

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