Document:

Exhibit
10.38

Consulting
Agreement

THIS CONSULTING AGREEMENT
(“Agreement”) is entered into this 27th day of December by and between Sweet Success
Enterprises, Inc., (The “Company”), and 3-CD Consulting, LLC (“Consultant”).

RECITALS

The Company desires to enter
into a strategic alliance with the Consultant and Consultant is willing to
provide such assistance with respect to the Services desired in connection with
such alliance.

NOW, THEREFORE, in
consideration of the mutual covenants and promises contained herein, the
sufficiency of which is hereby acknowledged by each of the parties.  The Company and Consultant hereby agree as
follows:

1.  Appointment as
Consultant/Scope of Services: 
The Company hereby engages Consultant in connection with the
Services.  Consultant hereby agrees to
perform such consulting services upon the terms and conditions hereinafter set
forth.

2.  Term:  This Agreement shall be for a period of one
(1) year commencing as of the date of this agreement.

3.  Services of the Consultant:  Consultant agrees that during the term of
this agreement, unless this agreement is sooner terminated pursuant to its
terms, consultant shall perform the Services agreed, including more
specifically those services described below. 
(a) The parties agree that the work performed by the Consultant will be
governed by the general terms and conditions of this agreement, which will be
controlling. (b) Consultant agrees to introduce product marketing programs,
retail accounts and other resources to the Company for the purpose of advancing
the Company in its executive summary and business plan.  Consultant also will attempt to recruit
celebrities and do specific strategic launch events approved by Sweet Success.

4.  Compensation:  As compensation for Consultant’s services as
a consultant pursuant hereto, the Company agrees to pay Consultant five hundred
thousand (500,000) cashless warrants exercisable any time after ninety (90)
days from the date of this agreement at a strike price of $1.30 with a 36 month
term for one (1) year of service

5.  Expenses:  Consultant shall be responsible for any and
all expenses incurred in connection with the performance of the services.

 

 

6.  Relationship of the
Parties:  Consultant under
this agreement is and shall act as an independent contractor and not an agent,
servant or employee of the Company. 
Nothing in this agreement shall be construed to imply that the
Consultant or its agents, servants or employees are officers or employees of
the Company.  Consultant shall assume
full responsibility to and for all of its agents and employees under any
federal, state or local laws or regulations regarding employee’s liability,
workers compensation, unemployment insurance, income tax withholding and
authorization for employment as well as any other acts laws or regulations of
similar import.  Consultant hereby
acknowledges and agrees that it shall have no authority to enter into any
contract or agreement or to bind the company except as specifically provided
herein and that in connection with the performance with the services it shall
have no authority to make any representations of any kind.

7.  Non-Disclosure Covenants:  (a) Consultant covenants and agrees that it
will not, at any time during the term of this Agreement, or at any time
thereafter, communicate or disclose to any person, or use for its own account
or for the account of any other person without the prior written consent of the
Company, any confidential knowledge or information concerning any trade secret
or confidential information concerning the business and affairs of the Company
or any of its affiliates acquired by the Consultant during the term of this
agreement.  Consultant will not deliver,
reproduce or in any way allow such information or documents to be delivered by
it or any person or entity outside the Consultant without duly authorized
specific direction or consent of the Company. 
(b) Company covenants and agrees that it will not at any time during the
term of the Agreement, or at any time thereafter, communicate or disclose to
any person or use for its own account or for the account of any person without
prior written consent of the Consultant any confidential knowledge or
information concerning any trade secret or confidential information concerning
the business and affair of the Consultant or any or its affiliates acquired by
the Company during the term of this agreement, including the names of the
investors identified or introduced by Consultant except as required under rules
and regulations of the Securities and Exchange Commission.

8.  Representations and
Warrants of the Consultant: 
Consultant hereby represents and warrants as of the date hereof each of
the following:  (a) Consultant has the
power and authority to enter this agreement and to carry out its obligations hereunder.  The execution and delivery of this agreement
by the Consultant and the consummation by the Company of the transactions
contemplated hereby have been duly authorized by the Consultant and no other
action on the part of the Consultant is necessary to authorize this agreement
and such transaction.  (b) The Consultant
is not nor has he ever been a Licensed Broker or Broker-Dealer.

9.  Representations and
Warranties of the Company: 
Company hereby represents and warrants as of the date hereof each of the
following:  (a) The Company has the
requisite corporate power and authority to enter into the agreement and to
carry out its obligations hereunder after duly obtaining approval of the Board
of Directors and notifying the Company’s investors of this contract.

 2
 

 

 

10.  Notices:  Any notice of communication to be given under
the terms of this agreement shall be in writing and delivered in person or
deposited certified or registered in the United States mail, postage prepaid,
addressed as follows:

If to Consultant:

3-CD Consulting LLC

4641 E. Bittersweet Way

Springfield, MO 65809

If to Company:

Sweet Success
Enterprises, Inc.

1250 NE Loop 410, Suite 630

San Antonio, Texas 78209

11.  Entire Agreement:
This agreement constitutes and embodies the full and complete understanding and
agreement of the Parties hereto with respect to the subject matter hereof and
supersedes all prior understanding whether oral or in writing and may not be
modified except by writing signed by the Parties hereto.

12.  Arbitration:  The parties shall resolve any disputes
arising hereunder before a panel of three arbitrators selected pursuant to and
run in accordance with the rules of the American Arbitration Association.  The arbitration shall be held in Bexar
County.  Each party shall bear their own
attorney’s fees and costs of such arbitration. 
Disputes under this agreement as well as the terms and conditions of the
Agreement shall be governed in accordance with and by laws of Texas (without
regard to its conflicts of law principals). 
The successful party in the arbitration proceedings shall be entitled to
seek an award of reasonable attorney’s fees from the Arbitrators.

IN WITNESS WHEREOF, This
Consultant Agreement has been executed as of the day and year first written
below,

	
  Company:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Consultant:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date

  	
   

  	
   

  

 

 

 3Exhibit 4.1

Promissory Note issued to
Sausalito Capital Partners I, LLC

THE SECURITIES REPRESENTED BY THIS
NOTE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE “1933 ACT”), OR UNDER THE PROVISIONS OF ANY APPLICABLE STATE
SECURITIES LAWS, BUT HAVE BEEN ACQUIRED BY THE REGISTERED HOLDER HEREOF FOR
PURPOSES OF INVESTMENT AND IN RELIANCE ON STATUTORY EXEMPTIONS UNDER THE 1933
ACT, AND UNDER ANY APPLICABLE STATE SECURITIES LAWS.  THESE SECURITIES MAY NOT BE SOLD, PLEDGED,
TRANSFERRED OR ASSIGNED EXCEPT IN A TRANSACTION WHICH IS EXEMPT UNDER THE
PROVISIONS OF THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT.

10%
CONVERTIBLE PROMISSORY NOTE

San Rafael,
California

July 5, 2006

FOR VALUE
RECEIVED, Domestic Energy Partners, LLC., a Utah limited liability company (“Borrower”),
hereby promises to pay to the order of Sausalito Capital Partners I, LLC (“Lender”),
a Nevada limited liability company, in lawful money of the United States at the
address of Lender set forth herein, the principal amount of $500,000.00 (the “Loan”),
together with Interest.  This Promissory
Note (“Note”) has been executed by Borrower on the date set forth above
(the “Effective Date”).

1.             Interest.  The Loan
shall bear interest at a rate of ten percent (10%) (“Default Interest Rate”),
compounded monthly (“Interest”) from the Effective Date and continuing until
payment in full of the Loan.  Upon the occurrence of a default event
(“Event of Default”) and for so long as such Event of Default continues,
Interest shall accrue on the outstanding Loan amount at the Default Interest
Rate.

2.             Maturity Date.  Subject to
Section 3, all or any portion of the Loan, all accrued Interest thereon and all
other sums due hereunder, shall be due and payable on demand by Lender on the
Maturity Date.

3.             Conversion.  In Lender’s
discretion, at any time prior to the consummation of the Private Placement,
Lender may convert all of the outstanding principal amount of this Note into
twenty five percent (25%) of the fully diluted common stock of the Company (the
“Common Stock”) following the merger of the Borrower into a piggy
back-qualified shell company which is currently trading (“Shell”).

4.             Application of Payments.

4.1.          Except as otherwise expressly provided herein,
payments under this Note shall be applied (i) first to the repayment of any
sums incurred by Lender for the payment of any expenses in enforcing the terms
of this Note, (ii) then to the payment of the Default Interest Rate, (iii) then
to the payment of the Interest Rate, and (iv) then to the reduction of the
Loan.

4.2.          Upon payment in full of the Loan and applicable
accrued and unpaid Interest thereon, this Note shall be marked “Paid in Full”
and returned to Borrower.

5.             Waiver of Notice.  Borrower
hereby waives diligence, notice, presentment, protest and notice of dishonor.

6.             Transfer.  This Note may
be transferred by Lender at any time, provided that such transfer complies with
applicable securities laws.

 

7.             Events of Default.  The occurrence of any of following events,
not cured in any applicable cure period, shall constitute an Event of Default
of Borrower:

7.1.          The
failure to make when due any payment described in this Note or the Loan
Agreement, whether on or after the Maturity Date, by acceleration or otherwise;
and

7.2.          A
breach of any representation, warranty, covenant or other provision of this
Note or the Loan Agreement, which, if capable of being cured, is not cured
within three days following notice thereof to the Company;

7.3.          (i)
The application for the appointment of a receiver or custodian for Borrower or
the property of Borrower, (ii) the entry of an order for relief or the filing
of a petition by or against Borrower under the provisions of any bankruptcy or
insolvency law, (iii) any assignment for the benefit of creditors by or against
Borrower, or (iv) the insolvency of Borrower.

Upon the occurrence of any Event of Default that
is not cured within any applicable cure period, if any, Lender may elect, by
written notice delivered to Borrower, to take at any time any or all of the
following actions: (i) declare this Note to be forthwith due and payable,
whereupon the entire unpaid Loan, together with all accrued and unpaid Interest
thereon (including the Default Interest Rate), and all other cash obligations
hereunder, shall become forthwith due and payable, without presentment, demand,
protest or any other notice of any kind, all of which are hereby expressly
waived by Borrower, anything contained herein to the contrary notwithstanding,
and (ii) exercise any and all other remedies provided hereunder or available at
law or in equity.

8.             Miscellaneous.

8.1.          Successors
and Assigns.  Subject to the exceptions specifically set
forth in this Note and the Loan Agreement, the terms and conditions of this
Note shall inure to the benefit of and be binding upon the respective
executors, administrators, heirs, successors and permitted assigns of the
parties.  This Note (or a portion hereof)
may be assigned by Lender without the consent of Borrower.

8.2.          Loss
or Mutilation of Note.  Upon receipt by Borrower of evidence
satisfactory to Borrower of the loss, theft, destruction or mutilation of this
Note, together with indemnity reasonably satisfactory to Borrower, in the case
of loss, theft or destruction, or the surrender and cancellation of this Note,
in the case of mutilation, Borrower shall execute and deliver to Lender a new
promissory note of like tenor and denomination as this Note.

8.3.          Notices.  Any notice, demand, offer, request or other
communication required or permitted to be given pursuant to the terms of this
Note shall be in writing and shall be deemed effectively given the earlier of
(i) when received, (ii) when delivered personally, (iii) one business day after
being delivered by facsimile (with receipt of appropriate confirmation), (iv)
one business day after being deposited with an overnight courier service, or
(v) four days after being deposited in the U.S. mail, First Class with postage
prepaid, and addressed to the recipient at the addresses set forth below unless
another address is provided to the other party in writing:

	
  If to Borrower, to:

  	
   

  
	
   

  
	
  Domestic Energy
  Partners, LLC.

  
	
  1200 West 400
  North

  
	
  Orem, UT 84660

  
	
  Attn:  Ron Crafts

  
	
   

  
	
  if to Lender, to:

  	
   

  
	
   

  
	
  Sausalito
  Capital Partners, LLC

  
			

 

 

 

	
  369B Third Street, #269

  
	
  San Rafael, CA 94901

  
	
  Attn: Don Lew

  
	
   

  
	
  with a copy to:

  	
   

  
	
   

  
	
  The Otto Law Group,
  PLLC

  
	
  601 Union
  Street, Suite 4500

  
	
  Seattle, WA
  98101

  
	
  Attn: David M.
  Otto

  
	
  Fax: (206)
  262-9513

  

 

8.4           Governing Law.  This
Note shall be governed in all respects by the laws of the State of Washington
as applied to agreements entered into and performed entirely within the State
of Washington by residents thereof, without regard to any provisions thereof
relating to conflicts of laws among different jurisdictions.

8.5           Waiver
and Amendment.  Any term of this Note may be amended, waived
or modified only with the written consent of Borrower and Lender.

8.6           Remedies;
Costs of Collection; Attorneys’ Fees.  No delay or omission by Lender in exercising
any of its rights, remedies, powers or privileges hereunder or at law or in
equity and no course of dealing between Lender and the undersigned or any other
person shall be deemed a waiver by Lender of any such rights, remedies, powers
or privileges, even if such delay or omission is continuous or repeated, nor
shall any single or partial exercise of any right, remedy, power or privilege
preclude any other or further exercise thereof by Lender or the exercise of any
other right, remedy, power or privilege by Lender.  The rights and remedies of Lender described
herein shall be cumulative and not restrictive of any other rights or remedies
available under any other instrument, at law or in equity.  If an Event of Default occurs, Borrower
agrees to pay, in addition to the Loan and Interest payable thereon, reasonable
attorneys’ fees and any other reasonable costs incurred by Lender in connection
with its pursuit of its remedies under this Note.

*  * 
*  *

 

 

IN WITNESS WHEREOF,
Borrower has caused this Note to be signed on the Effective Date.

	
  

  	
   

  	
  BORROWER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DOMESTIC ENERGY
  PARTNERS, LLC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Ron Crafts

  	
   

  
	
   

  	
   

  	
   

  	
  Ron Crafts

  
	
   

  	
   

  	
   

  	
  Chairman and Chief Executive Officer

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