Document:

Exhibit 10.1

	
Peter Wokoun

CONSULTING AGREEMENT

THIS AGREEMENT made this 16th day of March 2004, by and between:

Peter Wokoun

24 Dodge Hill Rd.

Sutton MA 01598

Email: wokounm@aol.com

Tel: 508-865-7076

Fax: 508-278-9690

Blue Star Physical Therapy

Sugar Land TX 77478

WITNESSETH

WHEREAS, Peter Wokoun (Consultant) is engaged in investor relations, direct marketing, and public relations with expertise in the dissemination of information about publicly traded companies; and is in the business of providing investor relations services, publishing services, marketing of business formats and opportunities and other related programs, services and products; and

WHEREAS, Bluestar Physical Therapy, Inc. (Bluestar or Company) is publicly held with its common stock trading on one or more stock exchanges and/or over-the-counter; and

WHEREAS, COMPANY desires to publicize itself with the intention of making its name and business better known to its shareholders, brokerage houses, and investment advisors; and

Peter Wokoun is willing to accept COMPANY as a client.

WHEREAS, COMPANY requires investor relations services and desires to employ and/or retain Peter Wokoun to provide such services as an independent contractor, and Peter Wokoun is agreeable to such a relationship and/or arrangement, and the parties desire a written document formalizing and defining their relationship and evidencing the terms of this Agreement;

In consideration of the mutual covenants contained herein, it is agreed as follows:

	 
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 Peter Wokoun

 

AGREEMENT

	1.	Appointment

Bluestar hereby appoints and engages Peter Wokoun as a consultant for investor relations and hereby retains and employs Peter Wokoun upon the terms and conditions of this Agreement. Peter Wokoun accepts such appointment and agrees to perform the services upon the terms and conditions of said Agreement.

	2.	Engagement

COMPANY engages Peter Wokoun to publicize the COMPANY to investment advisors and shareholders and as further described below and subject to the further provisions of the Agreement. Peter Wokoun hereby accepts said engagement by COMPANY as a client, and agrees to publicize COMPANY as further described below and subject to the further provisions of the Agreement.

	3.	Authorities and Description of Services

During the term of the Agreement, Peter Wokoun shall furnish various professional services and advice as specifically requested by the COMPANY. Said professional services and advice shall relate to those services, items and/or subjects described in Addendum "A", which is attached hereto and made a part hereof by this reference, and/or as follows:

A.      Peter Wokoun shall act, generally, as corporate investor relations firm, essentially acting (1) as liaison between COMPANY and its shareholders; (2) as advisor to COMPANY with respect to existing and potential market makers, broker-dealers, underwriters, and investment advisors; and (3) as advisor to BLUESTAR with respect to communications and information, including but not necessarily limited to preparation of a research report, planning, developing, designing, organizing, writing and distributing such communications and information, bookings.

B.  Peter Wokoun shall assist in establishing, and advise COMPANY with respect to interviews of COMPANY officers by the financial media; interviews of COMPANY officers by analysts, market makers, broker-dealers, and other members of the financial community.

C.  Peter Wokoun shall seek to make BLUESTAR, its management, its products, and its financial situation and prospects known to the financial media, financial publications, broker-dealers, mutual funds, institutional investors, market makers, analysts, investment advisors, and other members of the financial community as well as the public generally.

	 
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D.      Peter Wokoun in providing the foregoing services, shall be reimbursed for all costs of providing the services, including but not limited to out-of-pocket expenses for postage, delivery service (e.g., Federal Express, United Parcel Service, DHL Worldwide Service), compensation to third party vendors, copywriters, staff writers, art and graphic personnel, subcontractors, printing, except as set forth in addendum B.

E.  Peter Wokoun's compensation under this Agreement shall be paid beyond the above-mentioned costs and expenses, unless otherwise expressly provided herein.

	4.	Marketing Program

Including but not necessarily limited to the following components: 

(i)  Peter Wokoun reviews and analyzes all aspects of COMPANY'S goals and makes recommendations on feasibility and achievement of desired goals. 

(ii)      Peter Wokoun provides through his network, firms and brokers interested in participating and schedules and conducts the necessary due diligence and obtains the required approvals necessary for those firms to participate. Peter Wokoun interviews and makes determinations on any firms or brokers referred by COMPANY with regard to their participation. 

(iii)             Peter Wokoun shall be available to COMPANY to answer and return telephone calls and emails from firms and investment advisors inquiring about COMPANY.

	5.	Terms of Agreement

This Agreement shall become effective upon execution hereof and shall continue thereafter up to and including January 30, 2005 or in the case of specific services until such time as such matters are finalized to the satisfaction of both COMPANY and Peter Wokoun. It is expressly acknowledged and agreed by and between the parties hereto that Peter Wokoun shall not be obligated to provide any services and/or perform any work related to the Agreement until such time as any agreed and/or specified retainer (deposit, initial fee, down-payment) in US funds, and/or other specified and/or agreed valuable consideration, has been received by Peter Wokoun

	6.	Where Services shall be performed

Peter Wokoun’s services shall be performed at the main office location, or at other such designated location(s) as Consultant and COMPANY agree are the most advantageous for the work to be performed.

	
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	7.	Limitations on Services

The parties hereto recognize that certain responsibilities and obligations are imposed by Federal and State Securities Laws and by the applicable rules and regulations of stock exchanges, the National Association of Securities Dealers, in-house "due diligence" or "compliance" departments of brokerage houses, etc. Peter Wokoun agrees as follows:

A.      Peter Wokoun shall NOT release any financial or other information or data about COMPANY without the consent and approval of the COMPANY.

B.  Peter Wokoun shall NOT conduct any meetings with financial analysts without informing COMPANY in advance of any proposed meeting; the format or agenda of such meeting and COMPANY may elect to have a representative of COMPANY attend such meeting.

C.  Peter Wokoun shall NOT release any information or data about the COMPANY to any selected or limited person(s), entity, or group if Peter Wokoun is aware that such information or data has not been generally released or promulgated.

After notice by COMPANY of filing for a proposed public offering of securities of COMPANY, and during any period of restriction on publicity, Peter Wokoun shall not engage in any public relations efforts not in the normal course without approval of counsel for COMPANY and of counsel for the underwriter(s), if any.

	8.	Duties of Company

A.   COMPANY shall supply Peter Wokoun on a regular and timely basis with all approved data and information about COMPANY, its management, its products and its operations and COMPANY shall be responsible for advising Peter Wokoun of any facts which would affect the accuracy of any prior data and information previously supplied to Peter Wokoun so that Peter Wokoun may take corrective action.

B.    COMPANY shall promptly supply Peter Wokoun with full and complete copies of all filings with all Federal and State securities agencies; with full and complete copies of all shareholder reports and communications whether or not prepared with the assistance of Peter Wokoun with all data and information supplied to any analyst, broker-dealer, market maker, or other member of the financial community; and with all product/services brochures, sales materials, etc. COMPANY shall supply Peter Wokoun within 15 days of execution of this Agreement, with a list of all stockbrokers and market makers active in the stock of COMPANY, and a complete list of all shareholders.

C.    Peter Wokoun reports are not intended to be used in the offering of securities. Accordingly, clients must agree to each of the points listed below and to indemnify Peter Wokoun for any breach of these representations and covenants:

(i)    COMPANY will immediately notify Peter Wokoun if it intends to make any private or public offering of securities, including S-8 or Regulation S.

	  
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(ii)    COMPANY will immediately notify Peter Wokoun in advance of any insider selling of clients stock.

 

(iii)   COMPANY will not use Peter Wokoun reports in connection with any offering of securities without the prior written consent of Peter Wokoun

D.    In that Peter Wokoun relies on information provided by COMPANY for a substantial part of its preparations and reports, COMPANY must represent that said information is neither false nor misleading, and agrees to hold harmless and indemnify Peter Wokoun for any breach of these representations and covenants; and COMPANY agrees to hold harmless and indemnify Peter Wokoun for any claims relating to the purchase and/or sale of COMPANY securities occurring out of, or in connection with, Peter Wokouns relationship with COMPANY, unless such claim arises out of or is a result of any wrongful or negligent act or omission of Peter Wokoun. or its agents, including, without limitation, reasonable attorney's fees and other costs.

	9.	Representations and Indemnification

A.    COMPANY shall be deemed to make a continuing representation of the accuracy of any and all material facts, materials, information, and data, which it supplies to Peter Wokoun and the COMPANY, acknowledges its awareness that Peter Wokoun. will rely on such continuing representation in disseminating such information and otherwise performing its functions.

B.    Peter Wokoun in the absence of notice in writing from COMPANY, will rely on the continuing accuracy of materials, information, and data supplied by COMPANY.

C.    COMPANY hereby agrees to hold harmless and indemnify Peter Wokoun against any claims, demands, suits, loss, damages, etc., arising out of Peter Wokoun's reliance upon the continuing accuracy of such facts, materials, information and data, unless Peter Wokoun has been negligent in performing its duties and obligations hereunder.

D.    Peter Wokoun shall issue, as required upon written approval of COMPANY, corrective, amendatory, supplemental, or explanatory press releases, shareholder communications and reports, or data supplied to analysts, broker-dealers, market makers, or other members of the financial community.

E.    COMPANY shall cooperate fully and timely with Peter Wokoun to enable Peter Wokoun to perform his duties and obligations under this Agreement.

F.    The execution and performance of this Agreement by COMPANY has been duly authorized by the Board of Directors of COMPANY in accordance with applicable law, and to the extent required by the requisite number of shareholders of COMPANY.

	  
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G.    The performance by COMPANY of this Agreement will not violate any applicable court decree or order, law or regulation, nor will it violate any provision of the organizational documents and/or bylaws of COMPANY or any contractual obligation by which COMPANY may be bound.

H.    COMPANY shall promptly deliver to Peter Wokoun a complete due diligence package to include press releases and all other relevant materials, including but not limited to corporate reports, brochures, etc.

I.    COMPANY shall promptly deliver to Peter Wokoun a list of names and addresses of all shareholders of COMPANY, which it is aware. This list shall be upgraded at Peter Wokoun’s request.

J.    COMPANY shall promptly deliver to Peter Wokoun a list of brokers and market makers of COMPANY'S securities, which have been following COMPANY.

K.    Because Peter Wokoun will rely on such information to be supplied by the COMPANY, all such information shall be true, accurate, complete and not misleading in all respects.

L.    COMPANY shall act diligently and promptly in reviewing materials submitted to it by Peter Wokoun to enhance timely distribution of the materials and shall inform Peter Wokoun of any inaccuracies contained therein within a reasonable time prior to the projected or known publication date.

	10.	Compensation

	 	A.	For all general investor relation’s services, COMPANY shall make payment to Peter Wokoun as follows: a nonrefundable $8,000 cash payment in full upon execution of this document, in lieu of cash Peter Wokoun is willing to except the following:

11,500 (eleven thousand five hundred) of COMPANY S-8 Registered Shares. Each month thereafter beginning April 5, 2004 and ending February 5, 2005 the company shall pay 9,500 shares to Peter Wokoun.

And 100,000 Company 144 Shares. All shares shall have piggyback registration rights. 25,000 shares shall be transferred on each ninety day anniversary date of this document based on performance bonuses until compensation requirement is fulfilled. 

	 	B.	See Addendum "B" for further details related to compensation, if any.

	  
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	 	C.	For all special services, not within the scope of the Agreement, COMPANY shall pay to Peter Wokoun such fee(s) as, and when, the parties shall determine in advance of performance of said special services, provided COMPANY has agreed to said special services in advance.

	11.	Peter Wokoun is an Independent Contractor

Peter Wokoun shall provide said services as an independent contractor, and not as an employee of COMPANY or of any company affiliated with COMPANY. Peter Wokoun has no authority to bind COMPANY or any affiliate of COMPANY to any legal action, contract, agreement, or purchase, and said action can not be construed to be made in good faith or with the acceptance of COMPANY; thereby becoming the sole responsibility of Peter Wokoun. Peter Wokoun shall be solely responsible for any Federal, State or Local taxes. Company acknowledges that Peter Wokoun is not a registered representative, broker-dealer or an affiliated person pursuant to the defined by the National Association of Securities Dealers Regulation, Inc.

	12.	Trade Secrets and Inventions

Peter Wokoun shall treat as proprietary any and all information belonging to the COMPANY, its affiliates, or any third parties, disclosed to Peter Wokoun in the course of performance of services. Peter Wokoun agrees to assign to COMPANY all rights in invention and other proprietary information conceived by Peter Wokoun during the term of this Agreement with respect to any work performed under said Agreement.

	13.	Inside Information - Securities Violations

In the course of the performance of this Agreement it is expected that specific sensitive information concerning the operations of COMPANY'S business, and/or affiliate companies shall come to the attention and knowledge of Peter Wokoun. In such an event, Peter Wokoun will not divulge, discuss or otherwise reveal such information to any third parties. 

	14.	Performance

During the term the Consultant shall perform and discharge (faithfully, diligently and to the best of the Consultant’s ability) the Consultant’s duties and responsibilities on behalf of the Company and its subsidiaries. During the term the Consultant shall devote the necessary time and attention to the advancement of the business and interests of the Company and its subsidiaries and to the discharge of the Consultant’s duties and responsibilities hereunder. Upon the agreement of the Company’s Chief Executive Officer, which agreement shall include a provision reducing the consideration called for hereunder proportionately, Consultant may devote less than full time to the business of the Company for less than the term hereof. Nothing contained herein shall be construed to prohibit or restrict the Consultant from (a) serving in various capacities in community, 

	  
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civic, religious or charitable organizations, or (b) attending to personal business and investment matters. Further the Consultant shall be permitted to (i) serve as a member of the scientific or technology board or committee or on the Board of Directors or as a consultant to, other entities that do not directly compete with the Company, and (ii) be the author of and publish and present articles, abstracts and manuscripts on technological issues, whether or not relating to the business of the Company, and in each case upon prior approval of the Board of the Company, which approval shall not be unreasonably withheld provided such participation is not deemed in conflict with the best interests of the Company and its affiliates (collectively, together with the activities permitted pursuant to the immediately preceding sentence, "Permitted Activities"). It is expressly agreed that any such service or activity permitted by the previous sentences shall not unreasonably interfere with the performance of the Consultant’s duties and Consultant will comply with the reasonable requests of the Board of Directors to cease or limit the service or activity if, in the opinion of the Board of Directors, such service or activity unreasonably interferes with Consultants performance of his duties and responsibilities hereunder.

	15.	Amendments

This Agreement may be modified or amended, provided such modifications or amendments are mutually agreed upon by and between the parties hereto and that said modifications or amendments are made in writing and signed by both parties.

	16.	Severability

If any provision of this Agreement shall be held to be contrary to law, invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Agreement is contrary to law, invalid or unenforceable, and that by limiting such provision it would become valid and enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited.

	17.	Termination of Agreement

Either party prior to the expiration of the term provided in Paragraph 9 above except as follows might not terminate this Agreement:

	 	a)	Upon the bankruptcy or liquidation of the other party; whether voluntary or involuntary;

	 	b)	Upon the other party taking the benefit of any insolvency law; and/or

	 	c)	Upon the other party having or applying for a receiver appointed for either party;

	 	d)	Ninety (90) days after the execution date with thirty (30) days written notice by either party.

	  
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	18.	Attorney Fees

In the event that either party is in default of the terms or conditions of this Agreement and legal action is initiated or suit be entered as a result of such default, the prevailing party shall be entitled to recover all costs incurred as a result of such default including all costs, reasonable attorney fees, expenses and court cost through trial, appeal and to final disposition.

	19.	Return of Records

Upon termination of this Agreement, Peter Wokoun shall immediately deliver to COMPANY all records, notes, data, memorandum, models and equipment of any nature that are the property of or relate to the business of COMPANY.

	20.	Waiver of Breach

Waiver by either party of a breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any subsequent breach by the other party.

	21.	Disclaimer by Peter Wokoun

Peter Wokoun may be the preparer of certain promotional materials, and Peter Wokoun makes no representation to COMPANY or others that (i) its efforts or services will result in any enhancement to COMPANY (ii) the price of COMPANY'S publicly traded securities will increase (iii) any person will purchase COMPANY'S securities, or (iv) any investor will lend money to and/or invest in or with COMPANY.

	22.	Early Termination

In the event COMPANY fails or refuses to make timely payment of the compensation set forth above and/or in Addendum "A", Peter Wokoun shall have the right to terminate any further performance under this Agreement. In such event, and upon notification thereof, compensation shall become immediately due and payable.

	23.	Limitation of Peter Wokoun’s Liability

In the event Peter Wokoun fails to perform its work or services hereunder its entire liability to COMPANY shall not exceed the greater of (i) the amount of cash compensation Peter Wokoun has received from COMPANY (ii) the amount of cash compensation Peter Wokoun has received from COMPANY under Addendum "B"; or (iii) the actual damage to COMPANY as a result of such non-performance. In no event shall Peter Wokoun be liable to COMPANY for any indirect, special or consequential damages, or for any claim against COMPANY by any person or entity arising from or in any way related to this Agreement.

	  
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	24.	Notices

All notices hereunder shall be in writing and addressed to the party at the address herein set forth, or at such other address which notice pursuant to this section may be given, and shall be given by either personal delivery, certified mail, express mail or other national overnight courier services. Notices shall be deemed given upon the earlier of actual receipt or three (3) business days after being mailed or delivered to such courier service. Any notices to be given hereunder shall be effective if executed by and sent by the attorneys for the parties giving such notice, and in connection therewith the parties and their respective counsel agree that in giving such notice such counsel may communicate directly in writing with such parties to the extent necessary to give such notice. Any notice required or permitted by this Agreement to be given shall be given to the respective parties at the addresses listed on Page 1 of this Agreement.

	25.	Inurnment

This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, personal representatives, successors, assigns and any addenda’s attached hereto.

	26.	Entire Agreement

This Agreement contains the entire agreement of the parties and may be modified or amended only by agreement in writing, signed by the party against whom enforcement of any waiver, change, amendment, modification, extension or discharge is sought. 

	27.	Applicable Law

	 	a.	Any dispute, claim or controversy arising out of or relating to this agreement, or the breach thereof, shall be settled by arbitration in Fort Bend County, Texas in accordance with the Commercial Arbitration Rules of the American Arbitration Association.

		b.	The parties hereto agree that they will abide by and perform any award by the arbitrator(s) and that judgment upon such award may be entered in any court, state or federal, having demand, summons, complaint, other process, notice of motion, or other application to an arbitration panel, court or judge and any arbitration award or judgment may be served upon any party hereto by registered or certified mail or by personnel service providing a reasonable for appearance or answer is allowed

	28.	Non-waiver

The failure of either party, at any time, to require any such performance by any other party shall not be construed as a waiver of such right to require such performance and shall in no way affect such party's right to require such performance and shall in no way affect such party's right subsequently to require full performance hereunder.

	  
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	29.	Execution in Counterpart

This Agreement may be executed in counterpart, not withstanding the date or dates upon which this Agreement is executed and delivered by any of the parties, and shall be deemed to be an original and all of which will constitute one and the same agreement, effective as of the reference date first written above.

IN WITNESS WHEREOF, the parties hereto have set their hands in execution of this Agreement.

	
Bluestar Physical Therapy, Inc.
	 
	 	 	 
	
BY:
	
/s/ Alfred Oglesby
	 
	 	
Alfred Oglesby
	 
	 	
President and CEO
	 
	 	 	 
	 	 	 
	
Peter M. Wokoun
	 
	 	 	 
	
BY:
	
/s/ Peter M. Wakoun
	 
	 	
Peter M. Wokoun
	 

	  
	 	 	11Exhibit 10.2

	8/24/04	
Elorian Landers

CONSULTING AGREEMENT

This Consulting Agreement (Agreement) is made as of March 24, 2004 (Effective Date) between Bluestar Physical Therapy, Inc., (Bluestar) a subsidiary of Tauras Entertainment (the Company), and Elorian Landers (the Consultant).

WHEREAS, the Company desires to engage the Consultant to fulfill various task involving Business Modeling, Strategic Planning, Corporate Development and Financial Market Development and Consultant desires to accept such engagement, subject to the terms and conditions set forth in this Agreement; 

NOW, THEREFORE, the Company and Consultant agree as follows:

1.     Definitions: Terms defined elsewhere in this Agreement are used herein as so defined. In addition, the following terms shall have the following meanings:

1.1 Affiliates. "Affiliates" means all persons and entities directly or indirectly controlling, controlled by or under common control with the Company.

1.2 Confidential Information. "Confidential Information" means any and all information relating in any way to the Intellectual Property, products, customers, employees or any other aspect of the business of the Company and its Affiliates that is (i) intended by the Company’s management to be confidential, or (ii) is not generally known by others with whom they compete or do business, or with whom they plan to compete or do business, or (iii) any and all information the disclosure of which would otherwise be adverse to the interests of the Company or any of its Affiliates. Confidential Information includes without limitation such information relating to (v) the Company’s Intellectual Property (w) the services or products sold or offered by the Company or any of its Affiliates (x) the costs, sources of supply, financial performance and strategic plans of the Company and its Affiliates (y) the identity and special needs of the customers of the Company and its Affiliates (z) the people and organizations with whom the Company and its Affiliates have business relationships and the terms of those relationships.

1.3 Intellectual Property. "Intellectual Property" means inventions, discoveries, developments, methods, processes, compositions, works, concepts and ideas (whether or not patentable or copyrightable or constituting trade secrets) conceived, made, created, developed or reduced to practice by the Company and/or any of the Company’s officers or employees during the term of their employment.

1.4 Person. "Person" means an individual, a corporation, an association, a partnership, a limited liability company, an estate, a trust and other entity or organization.

2.     Engagement of Consultant

2.1 Term. Subject to earlier termination as hereinafter provided, the Company agrees to engage Consultant, and Consultant agrees to be engaged by the Company, for an original term commencing on the Effective Date and ending at 5:00 p.m., Houston time, on February 5, 2005 or such later date to which the parties may agree. The term of this Agreement is hereafter referred to as "the term of this Agreement" of "the term hereof". 

2.2 Title, duties and responsibilities. During the term hereof, the Consultant shall serve as the Company’s Consultant to perform Business Modeling, Strategic Planning, Corporate Development and Financial Market Development. The Consultant shall perform these duties of the Company as established by the Chief Executive Officer, and shall perform such other duties and responsibilities as may be vested in him from time to time.

	  
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2.3 Performance. During the term hereof, the Consultant shall perform and discharge (faithfully, diligently and to the best of the Consultant’s ability) the Consultant’s duties and responsibilities on behalf of the Company and its subsidiaries. During the term hereof, the Consultant shall devote the necessary time and attention to the advancement of the business and interests of the Company and its subsidiaries and to the discharge of the Consultant’s duties and responsibilities hereunder. Nothing contained herein shall be construed to prohibit or restrict the Consultant from (a) serving in various capacities in community, civic, religious or charitable organizations, or (b) attending to personal business and investment matters. Further the Consultant shall be permitted to (i) serve as a member of the scientific or technology board or committee or on the Board of Directors or as a consultant to, other entities that do not directly compete with the Company, and (ii) be the author of and publish and present articles, abstracts and manuscripts on other issues, whether or not relating to the business of the Company, It is expressly agreed that any such service or activity permitted by the previous sentences shall not unreasonably interfere with the performance of the Consultant’s duties and Consultant will comply with the reasonable requests of the Board of Directors to cease or limit the service or activity if, in the opinion of the Board of Directors, such service or activity unreasonably interferes with Consultants performance of his duties and responsibilities hereunder.

2.4 Relationship of the Parties. Consultant and the Company agree that, at all times during his engagement by the Company hereunder, Consultant shall be an independent contractor, and in such capacity shall be solely responsible for all income taxes, Social Security taxes, Medicare and/or other deductions, payments and taxes for which Consultant is or might be liable in connection with compensation and benefits paid to Consultant by the Company. Nothing contained herein shall operate, nor shall be construed to operate, as creating a relationship of employment, partnership, joint venture or any other relationship except the relationship specifically set forth herein.

3. Compensation and Benefits. 

As compensation for all services performed by the Consultant under this Agreement and performance of the Consultant’s duties and of the obligations to the Company and its subsidiaries, pursuant to this Agreement or otherwise and subject to Section 4 hereof, the Company agrees to pay Consultant:

3.1 Base Fee. During the term hereof, the Company shall pay the Consultant a initial consulting fee of 34,000 S-8 registered shares in lieu of cash then 18,000 S-8 shares per month beginning April 5 2004 and ending February 5, 2005, payable in accordance with the practices of the Company and subject to increase at any time or from time to time by the Board in its sole discretion. Additionally the Company will make available to Consultant 150,000, 144 shares with piggyback registration rights. Such base consulting fee, as from time to time increased, is hereafter referred to as "Base Fee." The Base Fee payable to the Consultant shall be prorated for any period of less that one full month. 

3.2 Drip Provision. During any thirty day period Consultant can sale up to fifty percent (50%) of that month’s compensation.. Consultant also agrees not to sell more than 2,000 shares during a single trading day. For example Consultant receives as compensations 18,000 shares in a thirty-day period then only 9,000 are eligible for sale through the open market. 

3.3 Business Expenses. The Company shall pay or reimburse the Consultant for all reasonable business expenses incurred or paid by the Consultant in the performance of the Consultant’s duties and responsibilities hereunder, subject to (i) any expense policy of the Company set by the Board from time to time, and (ii) such reasonable substantiation and documentation requirements as may be specified by the Board from time to time.

4. Termination of Agreement and Severance of Benefits.

Notwithstanding the provisions of Section 2 hereof, the Consultant’s employment hereunder shall terminate prior to the expiration of the term of this Agreement under the following circumstances:

	  
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4.1 Retirement or Death. In the event of the Consultant’s retirement or death during the term of hereof, the Consultant’s employment hereunder shall immediately and automatically terminate. In the event of the Consultant’s death during the term hereof, the Company shall pay to the Consultant (or in the case of death, the Consultant’s designated beneficiary or, if no beneficiary has been designated by the Consultant, to the Consultant’s estate) any other amounts accrued by the Consultant but unpaid through and including the date of such retirement or death, as the case may be.

4.2 Termination Upon Thirty Days Notice. This Agreement may be canceled by either party, with or without cause, by delivering a Notice of Termination to the non-terminating party only at the conclusion of the first ninety (90) day term. Termination shall be effective on the thirtieth (30th) day after the date of actual receipt of such notice by the non-terminating party.

5. Effect of Termination.

The provisions of this Section 5 shall apply in the event of termination due to the expiration of the term of this Agreement, termination pursuant to Section 4 or otherwise.

5.1 Receipt of Certain Benefits. It is the mutual intention of the Company and the Consultant that the Consultant receive full benefit of the compensation and benefits provided to the Consultant during the term hereof which compensation and benefits may be payable over periods beyond the particular consulting term. Nothing in this Section 5.1 is intended or shall be construed to affect the rights and obligations of the Company and its Affiliates, on one hand, and the Consultant, on the other, with respect to any, stock pledge arrangements, option plans or other agreements to the extent said rights or obligations survive termination of consulting under the provisions of the documents relating thereto.

5.2 Survival of Certain Provisions. Provisions of this Agreement shall survive any termination if so provided herein or if necessary or desirable fully to accomplish the purposes of such provision, including, without limitation, the obligations of the Consultant under Sections 6 and 7 hereof. The obligation of the Company to make payments to or on behalf of the Consultant under any provision of this Agreement expressly is conditioned upon the Consultant’s continued full performance of his obligations under Sections 6 and 7 hereof. The Consultant recognizes that no compensation is earned after termination of employment.

6. Confidential Information; Intellectual Property

6.1 Company Information. The Consultant agrees at all times during the Term and thereafter to hold in the strictest confidence, and not to use, except for the benefit of the Company and within the scope of the Consultant’s employment by the Company, or to disclose to any person, firm or corporation, without the written authorization of the Board of Directors of the Company, any Confidential Information.

6.2 Return of Documents. All documents, records, tapes and other media of every kind and description containing, referencing or in any way relating to the Confidential Information or relating to the business, present or otherwise, of the Company or its Affiliates and any copies, in whole or in part, thereof (the "Documents"), whether or not prepared by the Consultant, shall be the sole and exclusive property of the Company and its Affiliates. The Consultant shall safeguard all Documents and shall surrender to the Company at the time the Consultant’s employment terminates, or at such earlier time or times as the Board or its designee may specify, all Documents then in the Consultant’s possession or control.

	  
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7. Agreement Not to Compete with the Company

The Consultant agrees that during the term of the Consultant’s engagement hereunder and for a period of twelve (12) months following the date of termination thereof (the "Non-Competition Period"), the Consultant will not, directly or indirectly (a) own, manage, operate, control or participate in any manner in the ownership, management, operation or control of, or be connected as an officer, employee, director, principal, consultant, agent or otherwise with, any business that competes with the Company or any group division or subsidiary of the Company, where such Competitive Business is being conducted at the Date of Termination or (b) recruit or otherwise seek to induce any employees of the Company or any of its subsidiaries to terminate their employment or violate any agreement with or duty to the Company of any of its subsidiaries. The Consultant’s consulting or other activities described as Permitted Activities pursuant to Section 2.3 above, shall not be considered participation in an activity which competes with the business of the Company or any group, division or subsidiary of the Company. 

8. Enforcement of Covenants. 

The Consultant acknowledges that the Consultant has carefully read and considered all the terms and conditions of this Agreement, including without limitation the restraints imposed upon the Consultant pursuant to Sections 6 and 7 hereof. The Consultant agrees that said restraints are necessary for the reasonable and proper protection of the Company and its Affiliates and that the restraints are reasonable as to the definition of Competitive Business and length of time. The Consultant therefore agrees that the Company, in addition to any other remedies available to it, shall be entitled to preliminary injunctive relief against any breach or threatened breach by the Consultant of any of said covenants or agreements. 

9. Conflicting Agreements

The Consultant hereby represents and warrants that the execution of this Agreement and the performance of the Consultant’s obligations hereunder shall not breach or be in conflict with any other agreement to which or by which the Consultant is a party or is bound and that the Consultant is not now subject to any covenants against competition or similar covenants that would affect the performance of the Consultant’s obligations hereunder. The Consultant will not disclose to or use on behalf of the Company or any of its Affiliates any proprietary information of a third party without such party’s consent.

10. Miscellaneous

10.1 Assignment. Neither the Company nor the Consultant may make any assignment of this Agreement or any interest herein (provided, however, that nothing contained herein shall be construed to place any limitation or restriction on the transfer of the Common Stock in addition to any restrictions set forth in any agreement applicable to such shares), by operation of law or otherwise, without the prior written consent of the other; provided, however, that the Company may assign its rights and obligations under this Agreement without the consent of the Consultant in the event that the Company shall hereafter effect a reorganization, consolidate with, or merge into any other Person or transfer all or substantially all of its properties or assets to any other Person, in which event such other Person shall be deemed the "Company" hereunder for all purposes. The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company to expressly assume and agree to this Agreement in the same manner and to the same extent that the Company would be required to perform if the succession had not taken place. This Agreement shall inure to the benefit of and be binding upon the Company and the Consultant, and their respective successors, executors, administrators, heirs and permitted assigns.

	  
	Confidential	 	4
	

	 

	8/24/04	
Elorian Landers

 

10.2 Severability. If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the application of such provision shall be deemed modified to permit its enforcement to the maximum extent permitted by law, and not the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable and the remainder of this Agreement shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

10.3 Waiver; Amendment. No waiver or any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of either party to require the performance of any term or obligation of this Agreement, or the waiver of either party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach. This Agreement may be modified only by a written instrument signed by the Consultant and the Company. 

10.4 Notices. Any and all notices, requests, demands and other communications provided for by this Agreement shall be in writing and shall be effective when delivered in person or two business days after being deposited in the United States mail, postage prepaid, registered or certified, and addressed (a) in the case of the Consultant to the address listed below or, (b) to the Company, at its principal place of business and to the attention of the Board of Directors; or to such other address as either party may specify to the other.

10.5 Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the terms and conditions of the Consultant’s employment and, except as otherwise provided herein, supersedes all prior communications, agreements and understandings, written or oral, with the Company with respect to the terms and conditions of the Consultant’s employment, including the Original Agreement.

10.6 Governing Law. This Agreement shall be governed by and construed in accordance with the domestic substantive laws of the State of Texas without giving effect to any choice or conflict laws provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction.

10.7 Consent to Jurisdiction. Each of the Company and the Consultant, by its or the Consultant’s execution hereof, (i) hereby irrevocably submits to the exclusive jurisdiction of the state courts of the State of Texas for the purpose of any claim or action arising out of or based upon the Agreement of relating to the subject matter hereof, (ii) hereby waives, to the extent not prohibited by applicable law, and agrees not to assert by way of motion, as a defense or otherwise, in any such claim or action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that any such proceeding brought in the above-named courts is improper, or that this Agreement of the subject matter hereof may not be enforced in or by such court, and (iii) hereby agrees not to commence any claim or action arising out of or based upon this Agreement or relating to the subject matter hereof other than before the above-named courts or any applicable government agency nor to make any motion or take any other action seeking or intending to cause the transfer or removal of any such claim or action to any court other than the above-named courts whether on the grounds of inconvenient forum or otherwise. 

SIGNED to be effective as of the date set forth above.

	
BlueStar Physical Therapy, Inc.,
	 
	 	 
	
/s/ Alfred Oglesby
	 
	
Alfred Oglesby, President and CEO
	 
	 	 
	 	 
	
Consultant: Elorian Landers
	 
	
/s/ Elorian Landers
	 
	
Elorian Landers
	 

	  
	Confidential	 	5

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