Document:

Exhibit
10.18

 

CONSULTING AGREEMENT

 

	
  DATE:

  	
   

  	
  December 3, 2003

  
	
   

  	
   

  	
   

  
	
  COMPANY:

  	
   

  	
  Laser Recording Systems, Inc.

  1395 New York Avenue

  Huntington Station, New York 11746

  
	
   

  	
   

  	
   

  
	
  CONSULTANT:

  	
   

  	
  Carl Lansizera

  

 

RECITALS

 

A.                                   The Company and its principal
stockholders have entered into a certain exchange agreement with SCL Ventures,
Ltd. (“SCL”) and its principal stockholders by which the Company shall acquire
all or substantially all of the issued and outstanding stock of SCL.

 

B.                                     Consultant has considerable experience in
the business world.

 

C.                                     The Company desires to retain Consultant
as an independent contractor to assist it from time-to-time in furtherance of
its business which will include seeking to expand the business and prospects of
SCL, and Consultant is willing to provide such services to the Company on the
terms herein contained.

 

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

 

TERMS AND CONDITIONS

 

1.                                       ENGAGEMENT: Company hereby engages
Consultant as an independent contractor to render the services described herein
to Company and Consultant accepts the engagement subject to the terms contained
herein.

 

2.                                       TERM: The “Term” of this Agreement shall
begin on the date hereof and shall continue until December 31, 2004.

 

3.                                       SERVICES:

 

3.1. Consultant shall
perform the services specified in this Paragraph 3 subject to the terms of this
Agreement and such other rules and policies as Company may from time to time
direct, so long as same do not increase the obligations of Consultant
hereunder.

 

3.2. Consultant shall use
his expertise to assist Company in structuring, operating and growing its
business and the business of SCL. Consultant acknowledges that since it is the
intention of the Company to acquire SCL, that Consultants expertise will
specifically focus on facilitating that transaction and developing the business
of Company in relationship thereto.

 

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Consultant agrees that any shares of common stock of Company delivered
to Consultant as consideration hereunder, shall be voted in support of such
transaction.

 

3.3. Consultant shall
advise Company on Company’s business when requested by Company, subject to his
availability.

 

3.3.1. Company
acknowledges the unique skills of Consultant and the significant demands on his
time required by other business interests that may or may not be of a
competitive nature with Company. Notwithstanding such limitations, Company
believes the value of the relationship is important to the development of
Company’s interests.

 

3.3.2. In no event
shall Consultant’s failure to render services be deemed a breach of
Consultant’s obligations hereunder.

 

4. CONSULTANT’S
COMPENSATION: In full consideration for all services to be rendered by
Consultant to Company, Company agrees to pay and Consultant agrees to accept
(i) cash payment in the sum of $100,000 payable as set forth in
Section 4.2 hereof; and (ii) a single payment in the form of 100,000
shares of the common stock of Company (the “Shares”).

 

4.1.1. Consultant
acknowledges that the Shares have not been registered under the Securities Act
or any Blue Sky Laws and are being delivered reliance on exemptions from the
registration requirements of the Securities Act and Blue Sky Laws; and that the
Shares are subject to restrictions on transferability and resale and may not be
offered, sold, pledged, hypothecated or otherwise transferred or disposed of
except pursuant to an effective registration statement under the Securities Act
and applicable Blue Sky Laws or exempt from such registration, and Company
receives an opinion of counsel acceptable to it to the effect that such
registration is not required.

 

4.1.2. Consultant
hereby agrees that the following or similar legend may be placed prominently on
the face or back of the certificates evidencing the Shares:

 

“The securities
represented hereby have not been registered under the Securities Act of 1933,
as amended (the “Act”) or under any state securities laws and may not be
offered, sold, pledged, hypothecated or otherwise transferred or disposed of
except pursuant to an effective registration statement under the Act and
applicable state securities laws, unless exempt from such registration and the
issuer receives an opinion of counsel satisfactory to the issuer that an
exemption from registration is available.”

 

4.1.3. Consultant
represents and warrants that he is an “accredited investor” as such term is
defined in Regulation D promulgated under the Securities Act of 1933, as
amended (the “Act”). In general, an “accredited investor” is deemed to be an
institution with assets in excess of $5,000,000, an individual with a net worth
in excess of $1,000,000, an individual with annual net income for each of the
prior two tax years exceeding $200,000 or $300,000 jointly with such
individual’s spouse, and an expectation of the same level of net income for the
current tax year.

 

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4.1.4. Consultant
acknowledges that the Shares shall be subject to the proposed acquisition of
SCL which has been presented to Company and that Consultant shall vote such
shares in support thereof.

 

4.2. The cash payment of
the consulting fee set forth herein shall be payable as follows: (i) the sum of
$20,000 payable within 5 days of a receipt of a fully executed agreement
between the Company, SCL and Consultant; (ii) $20,000 every 30 days thereafter;
provided, however, that in the event that either SCL or the Company complete an
equity or long term debt financing or a series of financings in the aggregate
minimum sum of $2,000,000, from and after the date hereof, then, in such event,
any unpaid balance of the cash portion of the consulting fee shall be paid
within 5 days of completion of such financing or series of financing
aggregating the sum of no less than $2,000,000. The foregoing obligations shall
hereby be deemed guaranteed by and binding upon SCL irrespective of
consummation of the Exchange Agreement.

 

4.3. Notwithstanding
anything to the contrary contained herein, the parties acknowledged that
Consultant is an existing shareholder of the Company and has executed and
become a party to the Exchange Agreement between the Company, SCL and its
shareholders. That pursuant to such agreement, Consultant has agreed to a “lock-up”
of his shares of Common Stock in Laser. As further consideration for rendering
the services hereunder, SCL and the Company consent to a modification of the
“lock-up” so that Consultant will be freed from the “lock-up”, as it presently
exists, to the extent of 100,000 shares of Common Stock of the Company, as that
term is used therein the Exchange Agreement on a date 6 months following the
completion and closing under the Exchange Agreement.

 

4.4. Expenses: Consultant
shall bear all of its expenses including but not limited to unemployment,
disability or health insurance payments and social security, income tax or
other withholdings, deductions or payments which may be required by Federal,
State or Local law with respect to any sums paid to Consultant hereunder.

 

4.5. No Additional
Participation: Consultant acknowledges and agrees that this Consulting
Agreement shall not give or extend to Consultant any rights with respect to
Company’s payments to officers, directors and employees, including contributions
by Company to any deferred compensation plan, bonus plans or fringe benefits
not otherwise specified in this Agreement as payable to Consultant.

 

5.                                       DEATH OR DISABILITY BENEFIT: If
Consultant dies or is incapacitated during the term of this Agreement, the
compensation provided for herein shall nevertheless be due and payable to
Consultant or his estate, in lieu thereof and Company hereby waives any right
to make any claim against the Shares previously delivered to Consultant in
accordance with the terms hereof.

 

6.                                       NONCOMPETE CLAUSE: Nothing herein shall
be deemed to prevent or restrict Consultant from continuing to pursue his own
independent activities whether or not same may be deemed competitive with the
services provided to or by Company.

 

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7.                                       CONFIDENTIAL INFORMATION:

 

7.1. Except with the
prior written consent of Company in each instance or as may be necessary to
allow Consultant to perform his services to Company, Consultant shall not
disclose, use, publish or in any other manner reveal, directly or indirectly,
at any time during or after his employment by Company, any Confidential
Information. The obligation of Consultant under this Paragraph will survive the
termination of engagement by Company.

 

7.1.1. Consultant
hereby agrees to disclose promptly to Company all Confidential Information
obtained or created by Consultant during his employment by Company, which, upon
its creation, shall be the sole property of Company.

 

7.2. “Confidential
Information” as used herein means all information relating to:

 

7.2.1. the names
and business operations, personnel, activities, marketing, advertising and
financial affairs of and other non-public information relating to the business
of Company; and

 

7.2.2. All proprietary
or otherwise protected software, software design, hardware, hardware design and
the like developed or used by Company in the pursuit of its business, whether
for sale or for development purposes.

 

7.2.3. all
operations, systems, services, personnel, financial affairs, advertising and
promotion strategies, techniques, case histories and marketing plans developed
or used by Company in the course of its business.

 

8.                                       ASSIGNMENT:

 

8.1. The Company shall
not voluntarily or by operation of law assign or otherwise transfer the
obligations incurred on its part pursuant to the terms of this Agreement
without the prior written consent of Consultant. Any attempted assignment or
transfer of its obligation without such consent shall be wholly void. No assignment
or transfer, even with the consent of Consultant, shall relieve the Company of
its obligations incurred pursuant to the terms of this Agreement.

 

8.2. The nature of
Consultant’s services hereunder are personal in nature and Consultant shall
not, without Company’s prior written consent, assign or transfer any of his
obligations hereunder.

 

8.3. Subject to the
foregoing this Agreement shall inure to the benefit to each of the parties,
successors, transferees or assigns and shall be binding upon each of the
parties, successors, transferees or assigns.

 

9.                                       COUNSEL. The Parties acknowledge that
they have been represented by and have relied on counsel of their own choosing
in the negotiations and the preparation of this Agreement and that they read
this Agreement, have had its contents fully explained to them by such counsel
and are fully aware of and understand all of its terms and legal consequences.
It is acknowledged that the Parties, through their respective counsel, mutually
participated in the preparation of this

 

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Agreement, and it is
agreed that no provision of this Agreement will be construed against any of the
Parties by virtue of the activities of that party or their respective
attorneys.

 

10.                                 INTEGRATION. This Agreement constitutes a
single integrated written agreement expressing the entire agreement and
understanding between the Parties concerning the subject matter hereof and
supersedes and replaces all prior negotiations or proposed agreements, written
or oral.

 

11.                                 EXPRESS & IMPLIED PROMISES. The
Parties acknowledge that no other party, or any agent or attorney of any other
party, has made any promise, representation or warranty whatsoever, express or
implied, not contained herein concerning the subject matter hereof, to induce
them to execute this Agreement, and acknowledge that they have not executed
this instrument in reliance on any such promise, representation or warranty not
contained herein, and further acknowledge that there are no other agreements or
understandings between the Parties relating to this Agreement that are not
contained herein.

 

12.                                 NON-DISCLOSURE. No Party to this
Agreement or any person acting for or on their behalf, including their
respective attorneys, shall directly or indirectly reveal to any third party
any of the terms or conditions of this Agreement, or any fact or evidence
connected hereto, or release any publicity or make any public statement with
respect thereto, except as may be required by law and or disclosure obligations
arising from the issuance of financing documentation or the exercise of due
diligence rights in connection therewith.

 

13.                                 ADDITIONAL DOCUMENTS. The Parties agree
that they will execute, or cause to be executed, such other documents as may be
necessary to carry out the purposes of this Agreement. It is understood that
should it develop that there are any mistakes in this Agreement which would
cause the release and discharge of any party to be defective or less than
complete, or if this Agreement is declared unenforceable by a court or
arbitrator, then the Parties will execute any and all other documents and do
any and all things necessary to effect full, final and complete release of all
claims or all possible claims in accordance with the provisions set forth in
this Agreement.

 

14.                                 ARBITRATION.

 

14.1. American
Arbitration Association - Any dispute arising out of, in connection with, or in
relation to this agreement or the making of validity thereof or its
interpretation or any breach thereof shall be determined and settled by
arbitration in New York City by a sole arbitrator pursuant to the rules and
regulations then obtaining of the American Arbitration Association and any
award rendered therein shall be final and conclusive upon the parties, and a
judgment thereon may be entered in the highest court of the forum, state or
federal, having jurisdiction. The service of any notice, process, motion or
other document in connection with an arbitration award under this agreement or
for the enforcement of an arbitration award hereunder may be effectuated by
either personal service or by certified or registered mail to the respective
addresses provided herein.

 

14.2. Submission to
Jurisdiction - By execution and delivery of this Agreement, the parties each respectively
accept, for itself and its property, generally and unconditionally, the

 

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jurisdiction of the aforesaid Arbitration Tribunal, Courts and any
related Appellate Court, irrevocably agrees to be bound by any judgment
rendered thereby and in connection with this Agreement, and irrevocably waive
any objection either party may now or hereafter have as to the venue of any
such action or proceeding. Each party consents to the service of process in the
Arbitration or out of any of the aforementioned Courts by mailing copies
thereof by certified mail, postage prepaid, such service to become effective
three (3) business days after such mailing. Nothing herein shall effect either
party’s right to service of process in any other manner prescribed by law. Any
judicial proceeding by either party against the other involving, directly or
indirectly, any matter, in any way arising out of, related or connected with
this Agreement shall be brought only in a Court located in the City of New
York.

 

15.                                 NOTICES.

 

15.1. Any notice to be
given hereunder shall be sent by registered or certified mail, return receipt
requested, or telecopy to a facsimile number provided by the respective party
with a copy sent by regular mail, or by delivering the same personally to the
parties at the addresses first set forth herein. Any party may designate a
different address by notice so given. Copies of all notices shall be sent to
the parties as hereto named above and, in addition:

 

Copies of all notices
shall be sent to:

 

Beckman, Lieberman & Barandes LLP

116 John Street, Suite 1313

New York, New York 10038

Attn: Robert Barandes, Esq.

Fax: (212) 608-9687

 

15.2. Any notice mailed
or personally delivered as aforesaid shall be deemed to have been given on the
date of receipt; telecopies shall be deemed received on the business day after
being sent by telecopy.

 

16.                                 WAIVER. This Agreement may be waived,
discharged or modified only by an instrument in writing signed by the party
against whom enforcement of any such waiver, discharge or modification is
sought.

 

17.                                 MODIFICATION. This Agreement cannot be
modified, altered, amended or otherwise changed except by an agreement in
writing signed by the parties hereto.

 

17.1. SEVERALABILITY: The
provisions of this Agreement are severable. To the extent any provision,
portion or extent of this Agreement is determined to be invalid, illegal or
otherwise unenforceable, then that provision, portion or extent will be limited
if possible and only thereafter severed if necessary. Any such limitation or
severing shall only be to the extent necessary to render the Agreement valid
and enforceable. The remaining provisions, portions and extent of the Agreement
will be enforced to give effect to the intention of the parties insofar as
possible.

 

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18.                                 COUNTERPARTS. This Agreement may be
executed in counterparts, each of which will be considered an original and all
of which together will constitute one and the same instrument. Copies delivered
by facsimile shall be binding.

 

19.                                 NEW YORK LAW. This Agreement shall be
governed by and construed in accordance with the substantive law of the State
of New York without regard to choice of law principles.

 

IN WITNESS HEREOF, the parties
have signed this agreement as of the day and year first set forth above.

 

 

	
   

  	
  LASER RECORDING
  SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
  By 

  	
  /s/ Carrie
  Niemiera

  	
   

  
	
   

  	
  Name:  Carrie Niemiera

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SCL Ventures,
  Ltd.

  
	
   

  	
   

  
	
   

  	
  By 

  	
  /s/ Mitch
  Sepaniak

  	
   

  
	
   

  	
  Name:  Mitch Sepaniak

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Carl Lansizera

  	
   

  
	
   

  	
  Carl Lansizera

  

 

7Exhibit 10.19

 

AMENDED
AND RESTATED CONSULTING AGREEMENT

 

AMENDED AND RESTATED CONSULTING AGREEMENT
(this “Agreement”), by and between SCL Ventures, Ltd. (the “Company”), and
Anthony F. Giordano (the “Consultant”).

 

W I T N E S S E T H:

 

The Company desires to engage the Consultant
to render consulting services to it and the Consultant is willing to provide
such consulting services to the Company, on the terms and conditions herein
provided.

 

In order to effect the foregoing, the parties
hereto wish to enter into a consulting agreement on the terms and conditions
set forth below.  Accordingly, in
consideration of the premises and the respective covenants and agreements of
the parties herein contained, and intending to be legally bound hereby, the
parties hereto agree as follows:

 

1.               Engagement.  The Company
hereby agrees to engage the Consultant to provide consulting services to the
Company pursuant to the terms and conditions of this Agreement and the
Consultant hereby agrees to provide such services to the Company.

 

2.               Term.

 

(a)                                  The term of this
Agreement (the “Term”) shall commence on April 1, 2004 and, unless
sooner terminated pursuant to paragraph (b) of this Section 2, shall
terminate on March 30, 2006; provided, however, that
notwithstanding the foregoing, the Term shall thereafter be automatically
extended for each succeeding one (1) year period, unless either party hereto
shall provide the other party with written notice at least ninety (90) days
prior to the end of the then current Term, advising that the party providing
the notice shall not agree to so extend the Term.

 

(b)                                 The Company or the
Consultant may terminate this Agreement at any time upon sixty (60) days prior
written notice; provided, however, that the Company may agree to
reduce or waive such prior written notice requirement by written agreement with
the Consultant.

 

(c)                                  Upon the termination of
this Agreement pursuant to paragraph (b) of this Section 2, neither the
Company nor the Consultant shall have any liability or obligation to the other,
except for (i) the obligation of the Company to pay the Consultant any due and
payable consulting fee pursuant to Section 5 for his consulting services
rendered to the Company prior to the termination of this Agreement, (ii) the
obligation of the Company to reimburse expenses incurred by the Consultant
pursuant to Section 6 and (iii) the restrictive covenant obligations of
the Consultant pursuant to Section 7, all of which shall survive such
termination; provided, however, that if the Company shall terminate
this Agreement pursuant to paragraph (b) of this Section 2, other than on
account of its reasonable determination that the actions or inaction of the
Consultant in the performance of (or failure to perform) his duties under this
Agreement were willfully negligent, constituted willful misconduct or were
materially injurious to the business affairs of the Company, within thirty (30)
days of such termination, the Company shall also make a lump sum cash payment
to the Consultant in the aggregate amount of the remaining monthly consulting
fee payments the Consultant would have received from the Company under
Section 5 through the end of the then Term, had such termination not
occurred.

 

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3.               Consulting Services. 
During the Term, the Consultant shall provide such consulting services
to the Company as the Company shall agree upon mutually with the Consultant,
including but not limited to those set forth on Exhibit A hereto (which Exhibit
may be amended in writing as agreed to by the Company and the Consultant).

 

4.               Nature of Relationship. 
The Consultant shall perform his consulting services hereunder in the
capacity of an independent contractor and not as an employee of the
Company.  Any provision to the contrary
in this Agreement notwithstanding, the Consultant shall have no power or
authority to execute or otherwise enter into any agreement on behalf of, or in
any way to bind, the Company.  The
Consultant shall not be considered as being employed by the Company for any
purpose, including without limitation, with respect to employee benefits
generally applicable to the Company’s employees.  The Company shall carry no workers’ compensation insurance or
health or accident insurance for the Consultant.  The Company shall pay no amounts on account of the Consultant for
purposes of Social Security, unemployment insurance or federal or state
withholding taxes and the Company shall not provide any other contributions or
benefits for the Consultant which might be expected in the context of an
employer-employee relationship.

 

5.               Consulting Fee. 
Upon the full execution of this Agreement, the Company shall pay the
Consultant a one-time initial consulting fee equal to One Hundred Fifty
Thousand Dollars ($150,000).  In addition,
during the Term, the Company shall pay the Consultant a monthly consulting fee,
in arrears, in an amount equal to Twenty Thousand Dollars ($20,000), with each
such monthly payment being payable on the first business day of the Company of
each next succeeding month.

 

6.               Expenses.  During the term
of this Agreement, the Company shall, upon receipt from the Consultant of
appropriate documentation consistent with the Company’s regular corporate
policies regarding expense reimbursement, reimburse the Consultant for his
ordinary and customary expenses incurred in performing his consulting services
hereunder, including expenses for non-commutation travel, all in accordance
with the Company’s regular corporate policies regarding expense reimbursement; provided,
however, that if the Consultant is to incur expenses in connection with
any single business activity or trip in excess of Twenty-Five Thousand Dollars
($25,000), the Company shall not reimburse such expenses unless the Consultant
obtains the consent of the Company’s Chief Executive Officer or Chief Financial
Officer thereto.

 

7.               Restrictive Covenants.

 

(a)                                  Reasonable Covenants.  It is expressly understood by and between
the Company and the Consultant that the covenants contained in this
Section 7 are an essential element of this Agreement and that but for the
agreement by the Consultant to comply with these covenants and thereby not to
diminish the value of the organization and goodwill of the Company or any
affiliate or subsidiary of the Company, including relations with their
employees, clients, customers and accounts, the Company would not enter into
this Agreement.  The Consultant has
independently consulted with his legal counsel and after such consultation agrees
that such covenants are reasonable and proper.

 

(b)                                 Noncompetition; No
Diversion of Customers; No Solicitation of Employees, Etc.  During the term of this Agreement and for
one (1) year after the end of the term of this Agreement, the Consultant shall
not:

 

(i)                                     engage, anywhere within the geographical
areas in which the Company, and/or any of its affiliates or subsidiaries have
conducted their business operations or provided services as of the date hereof
or at any time prior to the end of the term of this Agreement, directly or
indirectly, alone, in association with or as a shareholder, principal, agent,
partner, officer, director, employee or consultant of

 

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any other organization, in any business conducted by the Company or any
of its affiliates or subsidiaries;

 

(ii)                                  divert to any competitor of the Company
or any of its affiliates or subsidiaries, any customer of the Company or any of
its affiliates or subsidiaries;

 

(iii)                               solicit or encourage any officer,
employee or consultant of the Company or any of its affiliates or subsidiaries
to leave the employ of the Company or any of its affiliates or subsidiaries for
employment by or with any competitor of the Company or any of its affiliates or
subsidiaries;

 

provided, however, that the Consultant may
invest in stocks, bonds or other securities of any competitor of the Company or
any of its affiliates or subsidiaries if:

 

(A)                              such stocks, bonds, or other securities are listed on any national or
regional securities exchange or have been registered under Section 12(g)
of the Securities Exchange Act of 1934;

 

(B)                                his investment does not exceed, in the case of any class of the capital
stock of any one issuer, one percent (1%) of the issued and outstanding shares,
or, in the case of other securities, one percent (1%) of the aggregate
principal amount thereof issued and outstanding; and

 

(C)                                such investment would not prevent, directly or indirectly, the
transaction of business by the Company and/or of its affiliates or subsidiaries
with any state, district, territory or possession of the United States or any
governmental subdivision, agency or instrumentality thereof by virtue of any
statute, law, regulation or administrative practice.

 

If, at any time, the provisions of this
Section 7(b) shall be determined to be invalid or unenforceable by reason
of being vague or unreasonable as to area, duration or scope of activity, this
Section 7(b) shall be considered severable and shall become and shall be
immediately amended solely with respect to such area, duration and scope of
activity as shall be determined to be reasonable and enforceable by the court
or other body having jurisdiction over the matter and the Consultant hereby
agrees that this Section 7(b) as so amended shall be valid and binding as
though any invalid or unenforceable provision had not been included
herein.  Except as provided in this
Section 7, nothing in this Agreement shall prevent or restrict the
Consultant from engaging in any business or industry in any capacity.

 

(c)                                  Nondisclosure of Confidential
Information.  The
Consultant shall keep secret and confidential and shall not disclose to any
third party in any fashion or for any purpose whatsoever, any information
regarding this Agreement, or any other information regarding the Company or its
affiliates or subsidiaries which is not available to the general public, and/or
not generally known outside the Company or any such affiliate or subsidiary, to
which he has or shall have had access at any time during the course of his
consulting engagement with the Company, including, without limitation, any
information relating to the Company’s (and its affiliates’ or subsidiaries’):

 

(i)                                     business, operations, plans, strategies,
prospects or objectives;

 

(ii)                                  products, technologies, processes,
specifications, research and development operations and plans;

 

(iii)                               customers and customer lists;

 

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(iv)                              distribution, sales, service, support and
marketing practices and operations;

 

(v)                                 financial condition and results of
operations;

 

(vi)                              operational strengths and weaknesses; and

 

(vii)                           personnel and compensation policies and
procedures.

 

Notwithstanding the foregoing provisions of
this Section 7, the Consultant may discuss this Agreement with the members
of his immediate family and with his personal legal and tax advisors and may
disclose the existence of his consulting relationship with the Company to any
third party.

 

(d)                                 Specific Performance.  Without intending to limit the remedies
available to the Company or its affiliates or subsidiaries, the Consultant
hereby agrees that damages at law would be an insufficient remedy to the
Company or its affiliates or subsidiaries in the event that the Consultant
violates any of the provisions of this Section 7, and that, in addition to
money damages, the Company or its affiliates or subsidiaries may apply for and,
upon the requisite showing, have injunctive relief in any court of competent
jurisdiction to restrain the breach or threatened breach of or otherwise to
specifically enforce any of the covenants contained in this Section 7.

 

8.                                       Non-Assignability. 
Except with the written consent of both parties, neither the Consultant
nor the Company shall have any right to anticipate, alienate, sell, assign,
transfer, pledge, encumber or otherwise dispose of any right, interest, benefit
or payment under this Agreement and any attempted anticipation, alienation,
sale, assignment, transfer, pledge, encumbrance or other disposition of any of
such rights, interest, benefits or payments contrary to the provisions hereof
shall be null and void and without effect. 
All rights, interests, benefits and payments under this Agreement shall,
to the maximum extent permitted by law, be exempt from the claims of any
creditor or other person prior to the actual receipt thereof by the person
entitled to receive the same hereunder. 
Notwithstanding anything to the contrary contained in this
Section 8, the Consultant’s rights to receive payments hereunder may be
transferred by will or the laws of descent and distribution.

 

9.                                       Parties Bound. 
The rights and obligations of the Company under this Agreement shall
inure to the benefit of and shall be binding upon its affiliates, subsidiaries,
successors and assigns.

 

10.                                 Notice.  For the purposes
of this Agreement, notices, demands and all other communications provided for
herein shall be in writing and shall be deemed to have been duly given when
delivered or (unless otherwise specified) mailed by United States certified or
registered mail, return receipt requested, postage prepaid, addressed as
follows:

 

If to the Consultant:

 

Anthony F. Giordano

20678 North West 27th Avenue

Boca Raton, Florida 33434

 

If to the Company:

 

SCL Ventures, Ltd.

515 East Las Olas Boulevard, Suite 1350

Fort Lauderdale, Florida 33011

 

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or to such other address as either party may have furnished to the
other in writing in accordance herewith except that notices of change of
address shall be effective solely upon their receipt.

 

11.                                 Severability.  If any provision of this Agreement (or part
hereof) shall be held to be invalid or unenforceable under applicable law, the
invalidity or unenforceability thereof shall not affect the validity or
enforceability of the remaining provisions hereof and each such other provision
(or the remainder of such provision) shall, to the full extent consistent with
applicable law, continue in full force and effect.

 

12.                                 Books
and Records.  The Consultant hereby
agrees that all books and records relating in any manner to the business of the
Company or that of its affiliates or subsidiaries, and all other files, books
and records and other materials owned by the Company or its affiliates or
subsidiaries or used by them in connection with the conduct of their businesses,
whether prepared by the Consultant or otherwise coming into the Consultant’s
possession, shall be the exclusive property of the Company or its affiliates or
subsidiaries regardless of which party prepared the original material, books or
records.  All such books, records and
other materials shall be returned immediately to the Company or its affiliates
or subsidiaries upon the termination of the Consultant’s services hereunder.

 

13.                                 Successors.  Notwithstanding anything to the contrary
contained in Section 8, this Agreement cannot be assigned by the Company
or its affiliates or subsidiaries except that it shall be binding automatically
on any successors and assigns of all or substantially all of the business
and/or assets of the Company (whether direct or indirect, by purchase, merger,
consolidation or otherwise).  This
Agreement and all rights of the Consultant hereunder shall inure to the benefit
of and be enforceable by the Consultant’s personal or legal representatives.

 

14.                                 Arbitration.  Except as provided in Section 7(d), all
controversies, claims or disputes arising out of or relating to this Agreement,
shall be settled by arbitration under the rules of the American Arbitration
Association, as the sole and exclusive remedy of either party, and judgment
upon such award rendered by the arbitrator(s) may be entered in any court of
competent jurisdiction.  The costs of
arbitration shall be borne by the unsuccessful party or otherwise as determined
by the arbitrators in their discretion. 
Arbitration shall be held in Fort Lauderdale, Florida.

 

15.                                 Governing
Law.  The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the State of Florida without regard to conflicts of law principles.

 

16.                                 Amendments.  No provision of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing signed by the Consultant and such officer of the Company
as may be specifically designated for such purpose by the Company.  No waiver by either party hereto at any time
of any breach by the other party hereto of, or compliance with, any condition
or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time.  No
agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are
not set forth expressly in this Agreement.

 

17.                                 Counterparts.  This Agreement may be executed in one or
more counterparts, each of which shall be deemed to be an original but all of
which together shall constitute one and the same instrument.

 

18.                                 Entire
Agreement.  This Agreement sets forth
the entire agreement of the parties hereto in respect of the subject matter
contained herein and supersedes all prior agreements, promises, covenants,
arrangements, communications, representations and/or warranties, whether oral
or written, by any officer, employee or representative of any party
hereto.  The parties hereto hereby
acknowledge that no agreement or representation, oral or otherwise, express or
implied, with respect to the subject matter hereof has been made by either
party which is not set forth expressly in this Agreement.

 

5

 

19.                                 Hold
Harmless.  The Company hereby agrees
to hold harmless the Consultant from any liability arising out of the
Consultant’s performance under this Agreement to the fullest extent permitted
by law for a director or officer of the Company, except to the extent of the
Consultant’s gross negligence or willful misconduct.

 

20.                                 Survival.  The obligations of the parties
hereto contained in Sections 2(c), 7, 14 and 19 shall survive the termination
of this Agreement.

 

6

 

IN WITNESS WHEREOF, the parties have executed
this Agreement to be effective as of the Effective Date set forth in
Section 2(a) hereof.

 

	
  ATTEST:

  	
  SCL VENTURES, LTD.

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Kathrine Berry

  	
   

  	
  By:

  	
  /s/ Mitchell J. Sepaniak

  	
   

  
	
  Kathrine Berry

  	
   

  	
  Name: Mitchell J. Sepaniak

  
	
   

  	
   

  	
  Title:

  	
  President and

  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Kathrine Berry

  	
   

  	
  /s/ Anthony F. Giordano

  	
   

  
	
  Kathrine Berry

  	
  Anthony F. Giordano

  	
   

  
							

 

7

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