Document:

Consulting Agreement with V2R 6.13.03

CONSULTING AGREEMENT 

This Consulting Agreement (this "Agreement"), is made and entered into as of this 13th day of June, 2003 by and between Speedemissions, Inc., a Georgia corporation ("SEM" or the "Company") and V2R, Inc., a Florida corporation ("V2R" or the "Consultant"). 

 

RECITALS 

WHEREAS, the Company wishes to engage the consulting services of Consultant; and 

WHEREAS, Consultant wish to provide the Company with consulting services. 

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

1.    CONSULTING SERVICES 

 The Company hereby authorizes, appoints and engages the Consultant to introduce and negotiate an acquisition of the Company by SKTF Enterprises, Inc. ("SKTF"). 

2.    TERM OF AGREEMENT 

 This Agreement shall be in full force and effect as of the date hereof and extend for a period of two (2) months therefrom. The Company shall have the right to terminate this Agreement at any time in the event of the death, bankruptcy, insolvency, or assignment for the benefit of creditors of the Consultant. Consultant shall have the right to terminate this Agreement at any time if the Company fails to comply with the terms of this Agreement, including without limitation its responsibilities for compensation as set forth in this Agreement. Other than as described herein, this Agreement can only be terminated in a writing signed by both parties. 

3.  COMPENSATION TO CONSULTANT 

The Consultant’s compensation for the Consulting Services shall be as follows: 

(a)  Upon the successful closing of an acquisition of the Company by SKTF, SEM shall pay to The Lebrecht Group, APLC, as escrow agent for V2R, Inc., the sum of $225,000, of which $100,000 shall be paid in cash on the closing date of the acquisition, and $125,000 shall be paid in accordance with the terms of a promissory note as set forth in Exhibit "A" attached hereto (the "SEM Note"). 

4.  REPRESENTATIONS AND WARRANTIES OF CONSULTANTS 

  Consultant represents and warrants to and agrees with the Company that: 

	 
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a.   This Agreement has been duly authorized, executed and delivered by Consultant. This Agreement constitutes the valid, legal and binding obligation of Consultant, enforceable in accordance with its terms, except as rights to indemnity hereunder may be limited by applicable federal or state securities laws, and except as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditor's rights generally; and 

b.   The consummation of the transactions contemplated hereby will not result in any breach of the terms or conditions of, or constitute a default under, any agreement or other instrument to which Consultant is a party, or violate any order, applicable to Consultant, of any court or federal or state regulatory body or administrative agency having jurisdiction over Consultant or over any of its property, and will not conflict with or violate the terms of Consultant’s current employment. 

5.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

The Company hereby represents, warrants, covenants to and agrees with Consultants that: 

a.   This Agreement has been duly authorized, and executed by the Company and is a binding obligation of the Company, enforceable in accordance with its terms, except as rights to indemnity hereunder may be limited by applicable federal or state securities laws, except in each case as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditor's rights generally. 

6.   INDEPENDENT CONTRACTOR 

Both the Company and the Consultant agree that the Consultant will act as an independent contractor in the performance of his duties under this Agreement. Nothing contained in this Agreement shall be construed to imply that Consultant, or any employee, agent or other authorized representative of Consultant, is a partner, joint venturer, agent, officer or employee of the Company. Neither party hereto shall have any authority to bind the other in any respect vis a vis any third party, it being intended that each shall remain an independent contractor and responsible only for its own actions. 

7.    NOTICES 

Any notice, request, demand, or other communication given pursuant to the terms of this Agreement shall be deemed given upon delivery, and may only be delivered or sent via hand delivery, facsimile, or by overnight courier, correctly addressed to the addresses of the parties indicated below or at such other address as such party shall in writing have advised the other party. 

If to The Company:      Speedemissions, Inc. 

c/o Richard A. Parlontieri 

1029 Peachtree Parkway North, #310 

 

	 
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Peachtree City, Ga. 30269 

Facsimile (___)             

If to Consultant:     V2R, Inc. 

2180 West State Road 434, Suite 6184 

Longwood, FL 32779 

Attn: President 

Facsimile (718) 247-1852 

8.    ASSIGNMENT 

This contract shall inure to the benefit of the parties hereto, their heirs, administrators and successors in interest. This Agreement shall not be assignable by either party hereto without the prior written consent of the other. 

9.    CHOICE OF LAW AND VENUE 

This Agreement and the rights of the parties hereunder shall be governed by and construed in accordance with the laws of the State of Florida including all matters of construction, validity, performance, and enforcement and without giving effect to the principles of conflict of laws. Any action brought by any party hereto shall be brought within the State of Florida. 

10.   ENTIRE AGREEMENT 

 Except as provided herein, this Agreement, including exhibits, contains the entire agreement of the parties, and supersedes all existing negotiations, representations, or agreements and all other oral, written, or other communications between them concerning the subject matter of this Agreement. There are no representations, agreements, arrangements, or understandings, oral or written, between and among the parties hereto relating to the subject matter of this Agreement that are not fully expressed herein. 

11.      SEVERABILITY 

If any provision of this Agreement is unenforceable, invalid, or violates applicable law, such provision, or unenforceable portion of such provision, shall be deemed stricken and shall not affect the enforceability of any other provisions of this Agreement. 

12.      CAPTIONS 

The captions in this Agreement are inserted only as a matter of convenience and for reference and shall not be deemed to define, limit, enlarge, or describe the scope of this Agreement or the relationship of the parties, and shall not affect this Agreement or the construction of any provisions herein. 

	
 

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13.   COUNTERPARTS 

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

14.   MODIFICATION 

 No change, modification, addition, or amendment to this Agreement shall be valid unless in writing and signed by all parties hereto. 

15.   ATTORNEYS FEES 

 Except as otherwise provided herein, if a dispute should arise between the parties including, but not limited to arbitration, the prevailing party shall be reimbursed by the non-prevailing party for all reasonable expenses incurred in resolving such dispute, including reasonable attorneys' fees. 

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

	
"SEM" 
	
"V2R" 

	
 
	
 

	
Speedemissions, Inc., 
	
V2R, Inc., 

	
a Georgia corporation 
	
a Florida corporation 

	
 
	
 

	
 
	
 

	
/s/ Richard A. Parlontieri
	
/s/ Bahram Yusefzadeh

	
By: Richard A. Parlontieri 
	
By: Bahram Yusefzadeh                    

	
Its: President 
	
Its: Founder & Managing Director                    

	
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Speedemissions, Inc. 

SECURED PROMISSORY NOTE 

$125,000.00                                                                                                                                                 June 16, 2003 

 

FOR VALUE RECEIVED, Speedemissions, Inc., a Georgia corporation, and its successors (the "Company"), hereby promises to pay to the order of The Lebrecht Group, APLC, as escrow agent for V2R, Inc., or assigns (the "Purchaser" or the "Holder"), in immediately available funds, the principal sum of One Hundred Twenty Five Thousand Dollars ($125,000.00). The principal hereof and any unpaid accrued interest thereon shall be due and payable on or before 5:00 p.m., Eastern Standard Time, on the earlier to occur of (unless such payment date is accelerated as provided in Section 3 hereof): (i) the closing of a round of equity or debt financing by SKTF (following the acquisition of the Company by SKTF) or the Company in an amount equal to $1,500,000 or more, in which event the entire principal and any unpaid accrued interest shall be due at the closing of said financing, (ii) beginning ninety (90) days after the effectiveness of a registration statement, assuming said effectiveness occurs prior to December 30, 2003 (the "Registration Effective Date") on Form S-1, SB-2, S-3, or similar form, for the purpose of an offering by SKTF (following the acquisition of the Company by SKTF), in any amount, in which event the principal and any accrued interest shall be due and payable in three (3) equal installments at ninety (90), one hundred fifty (150), and two hundred ten (210) days following the Registration Effective Date, or (iii) in the event the Company and/or SKTF is unable to raise at least $1,500,000 in equity or debt capital by December 30, 2003, then in three equal installments of principal and any accrued interest at January 1, 2004, April 1, 2004, and June 1, 2004. Payment of all amounts due hereunder shall be made at the address of the Purchaser provided for in Section 4 hereof. The Company further promises to pay interest at the rate of ten percent (10%) per annum on the outstanding principal balance hereof beginning on January 1, 2004, such principal and interest to be payable upon Maturity. 

1.  PREPAYMENT . The Company may, at its option, at any time and from time to time, prepay all or any part of the principal balance of this Note, without penalty or premium, provided that concurrently with each such prepayment the Company shall pay accrued interest on the principal so prepaid to the date of such prepayment. 

2.   TRANSFERABILITY . This Note may be transferred by Holder, but shall not be transferred, pledged, hypothecated, or assigned by the Company without the express written consent of the Holder. 

3.         DEFAULT . The occurrence of any one of the following events shall constitute an Event of Default: 

(a)        The non-payment, when due, of any principal or interest pursuant to this Note; 

(b)        The material breach of any representation or warranty in this Note. In the event the Purchaser becomes aware of a breach of this Section 3(b), the Purchaser shall notify the Company in writing of such breach and the Company shall have five business days after notice to cure such breach; 

	 
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(c)  The commencement by the Company of any voluntary proceeding under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, receivership, dissolution, or liquidation law or statute of any jurisdiction, whether now or hereafter in effect; or the adjudication of the Company as insolvent or bankrupt by a decree of a court of competent jurisdiction; or the petition or application by the Company for, acquiescence in, or consent by the Company to, the appointment of any receiver or trustee for the Company or for all or a substantial part of the property of the Company; or the assignment by the Company for the benefit of creditors; or the written admission of the Company of its inability to pay its debts as they mature; or 

(d)  The commencement against the Company of any proceeding relating to the Company under any bankruptcy, reorganization, arrangement, insolvency, adjustment of debt, receivership, dissolution or liquidation law or statute of any jurisdiction, whether now or hereafter in effect, provided, however, that the commencement of such a proceeding shall not constitute an Event of Default unless the Company consents to the same or admits in writing the material allegations of same, or said proceeding shall remain undismissed for 20 days; or the issuance of any order, judgment or decree for the appointment of a receiver or trustee for the Company or for all or a substantial part of the property of the Company, which order, judgment or decree remains undismissed for 20 days; or a warrant of attachment, execution, or similar process shall be issued against any substantial part of the property of the Company. 

Upon the occurrence of any Default or Event of Default, the Purchaser, may, by written notice to the Company, declare all or any portion of the unpaid principal amount due to Purchaser, together with all accrued interest thereon, immediately due and payable, in which event it shall immediately be and become due and payable, provided that upon the occurrence of an Event of Default as set forth in paragraph (c) or paragraph (d) hereof, all or any portion of the unpaid principal amount due to Purchaser, together with all accrued interest thereon, shall immediately become due and payable without any such notice. 

4.   NOTICES. Notices to be given hereunder shall be in writing and shall be deemed to have been sufficiently given if delivered personally or sent by overnight courier or messenger or sent by registered or certified mail (air mail if overseas), return receipt requested, or by facsimile transmission. Notice shall be deemed to have been received on the date and time of personal delivery or facsimile transmission, if received during normal business hours of the recipient; if not, then on the next business day. Notices shall be given to the last known addresses on record for all parties. 

5.       REPRESENTATIONS AND WARRANTIES . The Company hereby makes the following representations and warranties to the Purchaser: 

(a)      Organization, Good Standing and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the state of its formation and has the requisite corporate power to own, lease and operate its properties and assets and to conduct its business as it is now being conducted. 

	 
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(b)     Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and perform this Note and to issue and sell this Note. The execution, delivery and performance of this Note by the Company and the consummation by it of the Transactions contemplated hereby and thereby have been duly and validly authorized by all necessary corporate action. This Note when executed and delivered, will constitute a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application. 

(c)      Disclosure. Neither this Note nor any other document, certificate or instrument furnished to the Purchaser by or on behalf of the Company in connection with the transactions contemplated by this Note contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements made herein or therein, in the light of the circumstances under which they were made herein or therein, not misleading. 

6.      CONSENT TO JURISDICTION AND SERVICE OF PROCESS . The Company consents to the jurisdiction of any court of the State of Florida and of any federal court located in Florida. 

7.     GOVERNING LAW . THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF FLORIDA APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY THEREIN, WITHOUT GIVING EFFECT TO THE RULES OR PRINCIPLES OF CONFLICTS OF LAW. 

8.       ATTORNEYS FEES . In the event the Purchaser or any holder hereof shall refer this Note to an attorney for collection, the Company agrees to pay all the costs and expenses incurred in attempting or effecting collection hereunder or enforcement of the terms of this Note, including reasonable attorney's fees, whether or not suit is instituted. 

9.       CONFORMITY WITH LAW . It is the intention of the Company and of the Purchaser to conform strictly to applicable usury and similar laws. Accordingly, notwithstanding anything to the contrary in this Note, it is agreed that the aggregate of all charges which constitute interest under applicable usury and similar laws that are contracted for, chargeable or receivable under or in respect of this Note, shall under no circumstances exceed the maximum amount of interest permitted by such laws, and any excess, whether occasioned by acceleration or maturity of this Note or otherwise, shall be canceled automatically, and if theretofore paid, shall be either refunded to the Company or credited on the principal amount of this Note. 

	 
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10.   SECURITY . This Note is secured by and entitled to the benefits of a certain Company Security Agreement (the "Company Security Agreement") dated as of even date herewith, among the Company and the Purchaser. 

/// 

	
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IN WITNESS WHEREOF, the Company has signed and sealed this Note and delivered it as of June 16, 2003. 

Speedemissions, Inc., 

a Georgia corporation 

 

/s/ Richard A. Parlontieri

By: Richard A. Parlontieri 

Its: President 

	
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COMPANY SECURITY AGREEMENT 

Date: June 16, 2003 

The undersigned (herein referred to as "Debtor") hereby agrees in favor of The Lebrecht Group, APLC, as escrow agent for V2R, Inc., or its lawful assigns (herein referred to as "Secured Party"), as follows: 

1.  In consideration of the delivery of a promise to pay $125,000 under that certain Secured Promissory Note between Secured Party and Debtor of even date herewith (the "Agreement"), Debtor hereby grants to Secured Party a continuing security interest in, and Debtor hereby assigns to Secured Party the Collateral described in Exhibit A hereto, to secure the payment, performance and observance of the obligations of Debtor under the Agreement (the foregoing being herein referred to as the "Obligations"). Secured Party’s security in the Collateral as set forth herein shall be subordinated to any security interest of GCA Strategic Investment Fund, Ltd. existing as of the date hereof. 

2.  Debtor warrants, represents and covenants that: ( a ) the chief executive office and other places of business of Debtor, the books and records relating to the Collateral and the Collateral will not change without prior written notice to and consent of Secured Party; ( b ) the Collateral is now, and at all times will be, owned by Debtor free and clear of all liens, security interest, claims and encumbrances, unless previously disclosed to Secured Party; ( c ) Debtor will not assign, sell, mortgage, lease, transfer, pledge, grant a security interest in or lien upon, encumber, or otherwise dispose of or abandon, nor will Debtor suffer or permit any of the same to occur with respect to, any part or all of the Collateral, without prior written notice to Secured Party; ( d ) Debtor has made, and will continue to make payment or deposit or otherwise provide for the payment, when due, of all taxes, assessments or contributions required by law which have been or may be levied or assessed against Debtor with respect to any of the Collateral; ( e ) Secured Party shall at all times have free access to and right of inspection of the Collateral and any records pertaining thereto; ( f ) at any time and from time to time, Debtor shall, at its sole cost and expense, execute and deliver to Secured Party such financing statements pursuant to the Uniform Commercial Code ("UCC"), applications for certificate of title and other papers, documents or instruments as may be requested by Secured Party in connection with this Security Agreement, and Debtor hereby authorizes Secured Party to execute and file at any time and from time to time one or more financing statements or copies thereof of this Security Agreement with respect to the Collateral signed only by Secured Party. 

3.  Each of the following events shall constitute an event of default ("Default") under this Security Agreement: ( a ) Debtor shall default in the punctual payment of any sum payable with respect to, or in the observance or performance of any of the terms and conditions of any Obligations; ( b ) the making or filing of any lien, levy, or execution on or seizure, attachment of or garnishment of, any Collateral; ( c ) Debtor shall become insolvent or commit an act of bankruptcy or make an assignment for the benefit of creditors; ( d ) there shall be filed by or against any Obligor any petition for any relief under the bankruptcy laws of the United States now or hereafter in effect; ( e ) the usual business of Debtor shall be terminated or suspended. 

	 
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4.  Upon the occurrence of any Default and at any time thereafter, Secured Party may, without notice to or demand upon Debtor, declare any Obligations immediately due and payable and Secured Party shall have all rights and remedies of a secured party under the UCC. 

5.  Debtor hereby releases Secured Party from any claims, causes of action and demands at any time arising out of or with respect to this Security Agreement, the Obligations, the Collateral and its use and/or actions taken or omitted to be taken by Secured Party with respect thereto, and Debtor hereby agrees to hold Secured Party harmless from and with respect to any and all such claims, causes of action and demands. No act, omission or delay by Secured Party shall constitute a waiver of its rights and remedies hereunder or otherwise. Debtor hereby waives presentment, notice of dishonor and protest of all instruments included in or evidencing any Obligations or Collateral, and all other notices and demands whatsoever (except as expressly provided herein.) No provision hereof shall be modified, altered or limited except by a written instrument expressly referring to this Security Agreement and to such provision, and executed by the party to be charged. This Security Agreement and all Obligations shall be binding upon the heirs, executors, administrators, successors, or assigns of Debtor and shall, together with the rights and remedies of Secured Party hereunder, inure to the benefit of Secured Party, its successors, endorses and assigns. This Security Agreement and the Obligations shall be governed in all respects by the laws of the State of Florida applicable to contracts executed and to be performed in such State. If any term of this Security Agreement shall be held to be invalid, illegal or unenforceable, the validity of all other terms hereof shall in no way be affected thereby. 

IN WITNESS WHEREOF, the undersigned has executed or caused this Security Agreement to be executed as of the date first above set forth. 

"Debtor"                                                                                      "Secured Party"                

Speedemissions, Inc.,             The Lebrecht Group, APLC, as escrow 

a Georgia corporation                                                                    agent for V2R, Inc., 

                             a California Professional Law Corporation 

_/s/ Richard A. Parlontieri___________        ___/s/ Brian A. Lebrecht,_________________ 

By: Richard A. Parlontieri             By: Brian A. Lebrecht, Esq. 

Its: President                                                                                        Its: President 

	
 

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EXHIBIT A 

PROPERTY SUBJECT TO SECURITY INTEREST 

With respect to Speedemissions, Inc., a Georgia corporation (the "Company"), the Collateral includes (i) all equipment, machinery, vehicles, furniture, tools, dies, jigs, and fixtures, and all attachments, accessions and equipment now or hereafter affixed thereto or used in connection therewith, and all substitutions and replacements thereof, wherever located, whether now owned or hereafter acquired (the "Equipment"); (ii) all raw materials, work in process, finished goods, and all other inventory (as defined in the Uniform Commercial Code) of whatsoever kind or nature, and all wrapping, packaging, advertising and shipping materials, and any documents relating thereto, and all labels and other devices, names or marks affixed or to be affixed thereto for purposes of selling or of identifying the same or the seller or manufacturer thereof and all of the Company’s right, title and interest therein and thereto, wherever located, whether now owned or hereafter acquired (the "Inventory"); (iii) all present and future accounts, contract rights, chattel paper, documents, instruments, trademarks, trade names, service names and general intangibles, whether now owned or hereafter acquired, the Company's interest in the goods represented thereby or described in copies of invoices delivered to the Company; all returned, reclaimed or repossessed goods with respect thereto; all rights and remedies of Debtor under or in connection with such collateral (the "Accounts"); (iv) all books, records and other property and general intangibles at any time relating to the Equipment, Inventory and Accounts ("Records"); and (v) all products and proceeds of the foregoing, in any form, including without limitation, any claims against third parties for loss or damage to or destruction of any or all of the Equipment, Inventory and Accounts (the "Proceeds"). 

	
 

	 	Page 12 of 12V2R Consulting Agreement 6.16.03

Consulting Agreement 

THIS CONSULTING AGREEMENT (this "Agreement") is made and entered into as of 

June 16, 2003 (the "Agreement Date"), by and between SPEEDEMISSIONS, INC., a Georgia Corporation (the "Company"), and V2R, LLC, a Florida Limited Liability Corporation (the "Consultant"). 

RECITALS 

WHEREAS, the Company is in the business of owning and operating assets used in connection with the emission testing of automobile, sport utility vehicle, vans and light trucks and other related services and activities; and 

WHEREAS, the Company and the Consultant desire to enter into a consulting arrangement whereby the Consultant will be retained by the Company to perform certain services for the Company upon the terms and conditions set forth below; and 

WHEREAS, certain confidential, proprietary and trade secret information of the Company, including but not limited to, the "Confidential Information" as defined in Section 5.1 of this Agreement, may be disclosed to the Consultant in connection with his performance of the consulting services; and 

WHEREAS, the Company is willing to enter into this Agreement only if the Consultant consents to the nondisclosure, confidentiality, and other obligations set forth in Section 5 and 6 of this Agreement. 

AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing promises, the mutual covenants and agreements hereinafter contained and other good and valuable consideration, the parties hereby agree as follows: 

1.    DUTIES OF THE CONSULTANT 

1.1       Services . For the term specified in this Agreement, the Consultant will provide services to the Company at a minimum of 10 hours per week and will serve in a strategic advisory capacity, providing counsel on organizational matters, management, financial and strategic marketing and positioning, equity capital and financial advisory and other similar services (collectively, the "Services") to or on behalf of the Company as more specifically set forth in Exhibit A attached hereto and made a part hereof. The Consultant will employ their best efforts and endeavor in good faith to render the Services which are the subject of this Agreement. However, in rendering the Services, the Consultant is not assuming any responsibility for the Company’s underlying business decision to pursue any particular business strategy or transaction. 

1.2       Staffing . The Consultant will make available to the Company the Services of its principals (Don Mitchell and Bahram Yusefzadeh) as specified in paragraph 1.1. 

1.3       Reliance . It is understood that the Consultant, in the course of providing the Services hereunder, will be using and relying upon publicly available information and information made available to it by the Company. 

 

	 
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2.   COMPENSATION 

 

2.1       Retainer . The Company will pay to the Consultant a retainer of $8,334.00 per month in advance for the availability of its principals, effective June 1, 2003, and continuing for 36 consecutive months. Consultant agrees to defer $3,334.00 of its monthly retainer until the closing of an initial round of financing for the Company. All deferred amounts are due and payable upon closing, and thereafter the full monthly retainer is due in accordance with this agreement. Services provided by other members of the Consultants organization will be billed as per the rates set forth on Exhibit A. 

2.2       Warrants . The Company shall issue to the Consultant Warrants to purchase 130,000 shares of its common stock exercisable at $0.01 per share which will be exercisable based upon the achievement of certain milestones or events as set forth on Exhibit B effective June 1, 2003. The Company represents that these Warrants have no current value. The Warrant will be in the form reasonably satisfactory to both parties, will have a net exercise provision and piggyback registration rights. The form of the Warrant is attached as Exhibit C . 

2.3       Transaction fee . 

2.3.1    The Consultant shall also be entitled to a cash bonus ("Transaction Fee") on any and all equity transactions or balance sheet re-financing, M&A transactions, and alliances & partnerships (an "Equity Transaction") arranged by the Consultant or any other source during the term of this Agreement or any renewal thereof. The Consultant shall be entitled to the Transaction Fee if the Company completes an Equity Transaction with any source or entity that was introduced to the Company by the Consultant within one year of Termination of this Agreement. One half of Transaction fee is due to the Consultant if the Company secures capital outside the Consultant’s efforts from sources identified in Exhibit D. This reduced fee provision expires on December 15th, 2003, except for (a) Hunt Group. (b) Cardinal Investment, (c)R&R Growth Capital which remain in effect for one year. 

2.3.2    The Transaction Fee will be 5% of the gross transaction amount for each equity capital raise. The Transaction Fee is due at the closing of each equity capital transaction. The transaction fee for follow on capital will be under the Lehman formula. The Lehman formula is defined as 5% of the first one million, 4% of the second one million, 3% of the third one million, 2% of the fourth one million and 1% of all dollars in excess of four million during the term of this agreement. 

2.3.3    The Transaction Fee for all M&A Transactions will be calculated based on 5% of the Gross Value thereof. "Gross Value" shall mean fair market value of the sum of cash, marketable securities and assumed liabilities, and the same formula as the initial equity raise. 

2.3.4    The Transaction Fee is due upon closing of the transaction 

2.3.5    The Transaction Fee for strategic alliances and partnership arrangements will be based on "5% of the Gross Revenue" generated by the Company over a period of thirty six (36) months. The Transaction Fee is due at the end of each quarter following implementation of each alliance or partnership. 

	 
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3.         EXPENSES. The Company will also reimburse the Consultant for all normal, customary and reasonable out-of-pocket expenses paid or incurred by the Consultant in the performance of the Consultant’s duties hereunder. All expenses shall be incurred in accordance with all applicable Company policies, whether presently existing or as implemented or modified, and the Consultant shall submit all receipts and other documentation required by such policies. The Consultant shall obtain CEO’s advance authorization on all expenses in excess of $500.00. 

4.         INDEPENDENT CONTRACTOR STATUS. It is expressly understood and agreed that the Consultant is and shall be an independent contractor and no employee of the Consultant shall be considered an employee of the Company with respect to the Services contemplated by this Agreement. As an independent contractor, neither the Consultant nor any of its employees shall be entitled to participate in any pension, profit sharing, health or similar or other benefits, if any, provided by the Company. Further, the Consultant shall pay any and all payroll or income taxes of any nature whatsoever, imposed upon the fees paid to the Consultant under this Agreement. The Consultant shall have no authority to bind the Company to any contract, agreement or arrangement. 

5.         CONFIDENTIALITY 

5.1      Confidential Information . "Confidential Information" means information or data of the Company concerning its business, financial statements, sales and marketing plans, customers, products, proposed products, plans, ideas, drawings, designs, concepts, inventions, discoveries, improvements, patent applications, know-how, trade secrets, prototypes, processes, techniques and other proprietary information, but does not include information that: (a) is already lawfully in the possession of the Consultant through independent means at the time of disclosure thereof; (b) is or later becomes part of the public domain through no fault of the Consultant; (c) is lawfully received by the Consultant from a third party having no obligations of confidentiality to the Company; or (d) is required to be disclosed by order of a governmental agency or by a court of competent jurisdiction. 

5.2       Acceptance and Use of Confidential Information . Except as expressly authorized in writing by this Agreement, during the term of this Agreement and for twenty four (24) months thereafter, (a) the Consultant will disclose the Confidential Information only to its employees who need to know it and who must be bound by similar confidentiality agreements and will not disclose the Confidential Information to any unauthorized persons or entities or use it for its own benefit or the benefit of any third party; and (b) the Consultant will use all reasonable care, but in no event less care than the Consultant takes to protect its own confidential information of similar importance, to protect the Confidential Information of the Company from unauthorized use, disclosure and publication. The Consultant further agrees that it (a) shall use the Confidential Information only for, and in the course of providing services for the Company pursuant to the terms of this Agreement, and (b) shall, immediately upon the earlier of the termination of this Agreement or the request of the Company, deliver to the Company any and all originals and all copies of the Confidential Information. Any and all material that is a trade secret will be protected for the maximum period allowable by law. 

	 
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6.         INVENTIONS 

6.1      Definition . "Inventions" as used in this Section 6, means any inventions, discoveries, improvements, drawings, designs, concepts, patent applications, know-how, trade secrets, prototypes, techniques, processes, software codes and documentation (whether or not they are in writing or reduced to practice) or works of authorship (whether or not they can be patented or copyrighted) that the Consultant makes, authors, or conceives (either alone or with others) and that concern or are related to the Company’s business or the Company’s present or demonstrably anticipated future product development concepts and result from any work the Consultant performs for the Company. It does not include the Consultant’s business practices, models, contacts or other standard procedures utilized by the Consultant in the exercise of its duties hereunder. 

6.2       Activities . The Consultant agrees that all Inventions made by the Consultant or any of its employees during the term of this Agreement will be the Company’s sole and exclusive property, and to the extent applicable, shall be deemed to be "works for hire" under the copyright laws of the United States. The Consultant will, with respect to any Invention: 

(a)       promptly and fully disclose the existence and describe the nature of the Invention to the Company in writing (and without request); 

(b)       to the extent exclusive title and/or ownership rights may not originally vest in the Company, assign ( and the Consultant does hereby assign, transfer and convey) to the Company all of the Consultant’s rights, title and interest to any Inventions, any applications the Consultant makes for patents or copyrights in any country, and any patents or copyrights granted to the Consultant in any country; and 

(c)       acknowledge and deliver promptly to the Company any written instruments, and perform any other acts necessary in the Company’s reasonable opinion to preserve property rights in any Inventions against forfeiture, abandonment or loss and to obtain and maintain patents and/or copyrights on any Inventions and to vest the entire right and title to any Inventions in the Company. 

The requirements of this Section 6.2 do not apply to an Invention for which no equipment, supplies, facility or trade secret information of the Company was used and which was developed entirely on the Consultant’s own time, and (1) which does not relate directly to the Company’s business or to the Company’s actual or demonstrably anticipated product development concepts, or (2) which does not result from any work the Consultant performed for the Company. 

7.         EQUITABLE REMEDIES AND ENFORCEMENT. The Consultant agrees and acknowledges that breach by the Consultant of its obligations under Section 5 and 6 of this Agreement shall cause irreparable injury to the Company and shall entitle the Company to the entry of any temporary or permanent injunctive relief, or any other equitable remedy as may be necessary in the circumstances. The pursuit or securing of any such injunctive relief shall not prohibit or limit the Company’s right to seek or obtain any other remedy provided under this Agreement or by law. 

8.        TERM AND TERMINATIONS 

8.1       Term. The term of this Agreement will commence as of the ("Agreement Date") and will continue for a term of thirty six (36) months from the Agreement Date, unless earlier terminated as provided in Section 8.2. The Agreement will automatically renew for consecutive twelve (12) month periods until terminated. 

8.2       Method of Termination . This Agreement may be terminated as follows: 

(a)       This Agreement may be terminated at any time by the mutual agreement of the Company and the Consultant; 

	 
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(b)       The Company may terminate this Agreement (a) upon sixty (60) days written notice to the Consultant in the event of any material breach of this Agreement by the Consultant, which remains uncured after such sixty-day period, or (b) at any time upon ninety (90) days written notice. In the event the Company terminates this Agreement without cause during the initial thirty six (36) month term, all unvested Warrants shall become fully vested; provided, however, that if the Company terminates this Agreement for cause (material breach) defined as the failure of the Consultant to perform any of its required duties as per Exhibit A, and (i) such failure continues for 30 days after notice by the Company, or (ii) the same failure has occurred in the past 12 months at least three (3) times, all properly unvested Warrants shall be cancelled; further, if said Agreement is terminated without cause during the initial thirty six (36) month term all remaining retainer fees become due and payable; or 

(c)       The Consultant may terminate this Agreement (a) upon sixty (60) days written notice to the Company in the event of any material breach of this Agreement by the Company, which remains uncured after such sixty (60) days or (b) at any time upon ninety (90) days written notice. In the event that the Consultant terminates this Agreement without cause at any time, all unvested Warrants shall be cancelled and the Company shall have no further retainer obligations. 

(d)    The term of this agreement relies on the ability of the company to raise additional capital. Therefore, a minimum capital of $1.5 million is required by January 15, 2004, to maintain the contract for the first 12 month period. An additional $1.5 million in capital by April 15, 2004, will be required for the remaining two years of the agreement to become effective. The agreement is terminated with a thirty(30)day written notice by the Company if these capital requirements are not met as defined. In any event, if the Company terminates this agreement, the Consultant is entitled to minimum of $150,000.00 of the retainer fees contemplated in section 2.1 of this agreement. The unpaid balance by agreement may be paid in monthly payments not to exceed twelve (12) months following. 

8.3       Effect of Termination . The effect of the termination of this Agreement shall be as follows: 

(a)       Except as expressly provided in this Agreement, termination of this Agreement shall not relieve or release either party from its obligations to make any payments which it may owe the other party under the terms of this Agreement, or from any other liability which either party may have to the other party arising out of this Agreement or the breach of this Agreement, and 

(b)       In the event of termination, the Consultant shall furnish the Company with reasonably detailed information as to the status of all efforts pertaining to the Services called for under this Agreement. 

8.4       Survival of Provisions . The provisions of Section 5 (Confidentiality), Section 6 (Inventions) and any other section of this Agreement directly or indirectly addressing or relating to post-termination remedies, Section 7 (Equitable Remedies and Enforcement), Section 8 (Term and Termination), Section 9 (Indemnification), Section 10 (Disputes) and Section 11 (Miscellaneous Provisions) shall survive the expiration or any earlier termination of this Agreement, unless otherwise indicated. 

	 
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9.         1.1  INDEMNIFICATION.  In connection with the Consultant’s activities undertaken hereunder on the Company’s behalf, the Company agrees to indemnify and hold harmless the Consultant and its affiliates, partners, directors, officers, agents, employees and each other person, if any, controlling the Consultant or its affiliates (individually, an "Indemnified Party," and collectively, the "Indemnified Parties"), to the full extent lawful from and against any losses, claims, damages, or liabilities (or actions, including shareholder actions, in respect thereof) related to or arising out of such engagement or the Consultant’s role or services in connection herewith, and will reimburse the Indemnified Parties for all costs and expenses (including counsel fees) as they are incurred by such Indemnified party in connection with investigating, preparing for or defending any such action or claim, whether or not in connection with pending or threatened litigation in which the Consultant is a party. The Company will not, however, be responsible for any claims, liabilities, losses, damages, costs or expenses to the extent that they are finally judicially determined to have resulted from an Indemnified Party’s gross negligence or willful misconduct. The foregoing Agreement shall be in addition to any rights that any Indemnified Party may have at common law or otherwise, including, but not limited to, any right to contribution. 

1.2       In connection with the Company’s activities undertaken hereunder with the Consultant, the Consultant agrees to indemnify and hold harmless the Company and its affiliates, partners, directors, officers, agents, employees, investment bankers, advisors and each other person , if any, controlling the Company of its affiliates (individually, an "Indemnified Party," and collectively, the "Indemnified Party), to the full extent lawful from and against any losses, claims, damages, or liabilities (or actions, including shareholder actions, in respect thereof) related to or arising out of such engagement or the Company’s role or activities in connection herewith, and will reimburse the Indemnified Parties for all costs and expenses (including counsel fees) as they are incurred by such Indemnified party in connection with investigating, preparing for or defending any such action or claim, whether or not in connection with pending or threatened litigation in which the Company is a party. The Consultant will not however, be responsible for any claims, liabilities, losses, damages, costs or expenses to the extent that they are finally judicially determined to have resulted from as Indemnified Party’s gross negligence or willful misconduct. The foregoing Agreement shall be in addition to any rights that any Indemnified Party may have at common law or otherwise, including, fut not limited to, any right to contribution. 

10.       DISPUTES . The parties agree to effect all reasonable efforts to resolve any and all disputes between them in connection with this Agreement in an amicable manner through negotiation or mediation including at least one meeting involving the principal executive officers of the Company and the Consultant. To the extent this mediation process does not resolve the conflict, any dispute or claim arising out of or relating to this Agreement or the validity, interpretation, enforceability, or breach thereof, including any dispute over whether a provision of this Agreement has been breached, shall be subject to jurisdiction of the United States Federal District court for the Middle District of Florida, and jurisdiction is hereby conferred upon such court. Each party agrees to and consents to submit to the exclusive jurisdiction, venue and process of said court for all actions, suits or proceedings arising out of this Agreement. 

11.      MISCELLANEOUS PROVISIONS 

11.1     Notices . Any notice, request, instruction or other document to be given hereunder by any party hereto to any other party will be in writing and delivered personally, including by any recognized national courier service, or sent by facsimile transmission, or registered or certified mail, return receipt requested. 

	 
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If to the Company: 
	
If to the Consultant: 

	
 
	
 

	
Rich Parlontieri 
	
V2R, LLC 

	
SpeedEmissions 
	
2180 West State Road 434 

	
1029 Peachtree Parkway, North 
	
Suite 6184 

	
Suite 310 
	
Longwood, FL 32779 

	
Peachtree City, GA 30269 
	
 

Either party hereto may designate any other address for notices given to it hereunder, by written notice to the other party given at least ten (10) days prior to the effective date of such change, in accordance with this Section 11.1. Notices delivered by hand will be deemed delivered on the date so delivered. Notices sent by mail will be deemed received on the date of receipt indicated by the return verification provided by the U.S. Postal Service. Notices sent by facsimile or telex will be deemed received the day on which sent, and will be conclusively presumed to have been received in the event that the sender’s copy of the facsimile transmission contains the answerback of the other party’s facsimile. 

11.2      Nonwaivers of Rights . No failure or delay on the part of a party in exercising any right hereunder will operate as a waiver of, or impair, any such right. No single or partial exercise of any such right will preclude any other or further exercise thereof or the exercise of any other right. No waiver of any such right will be effective unless given in a signed writing. No waiver of any such right will be deemed a waiver of any other right hereunder. 

11.3    Validity of Provisions: Severability . If any provision of this Agreement is, or becomes, or is deemed, invalid, illegal, or unenforceable in any jurisdiction; (a) such provision will be deemed amended to conform to applicable laws of such jurisdiction so as to be valid and enforceable or, if it cannot be amended without materially altering the intention of the parties, it will be stricken; (b) the validity, legality and enforceability of such provision will not in any way be affected or impaired thereby in any other jurisdiction; and (c) the remainder of this Agreement will remain in full force and effect. 

11.4     Governing Law . This Agreement will be governed by the laws of State of Florida, as to validity, construction and performance without reference to principals of conflicts of laws. 

11.5     Assignments . Neither this Agreement nor any right or obligation arising hereunder may be assigned by any party hereto, in whole or in part, without prior written consent of each other party hereto, which may be withheld in the absolute discretion of such party. Any attempted assignment in violation of the terms hereof will be null and void and of no force or effect. 

11.6     Entire Agreement: Amendments . This Agreement and the exhibits hereto constitute the entire agreement among the parties relating to the subject matter hereof, and all prior negotiations, representations, agreements and understandings are superseded hereby. No agreements altering, amending or supplementing the terms hereof may be made except by means of a written document signed by the parties hereto. 

11.7     Counterparts . This Agreement may be executed in any number of counterparts each copy of which shall for all purposes be deemed an original. 

	 
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IN WITNESS WHEREOF, the Company and the Consultant have executed this Agreement as of the day and year first written above. 

 

	
/s/ Bahram Yusefzadeh
	
/s/ Rich Parlontieri

	

	

	
Bahram Yusefzadeh 
	
Rich Parlontieri 

	
Managing Director & Founder 
	
President/CEO 

	 
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EXHIBIT A 

SERVICES TO BE PERFORMED BY CONSULTANT 

1.         Reviewing and assisting, from time to time upon request of the Company, with the drafting and amending of a business plan to be presented to (i) potential underwriters in a public stock offering and (ii) other potential sources of equity and debt financing for the Company, including private equity funds that specialize in investing in environmental services related companies. 

2.         Reviewing and assisting, from time to time upon request of the Company, with the preparation and amending of materials used in connection with activities outlined in paragraph (1) above. 

3.        Reviewing and assisting, from time to time upon request of the Company, with the preparation and amending of financial models for the business plan and for the operations of the Company. 

4.        Reviewing and assisting, from time to time upon request of the Company, with the preparation and amending of a comprehensive marketing plan for the Company. 

5.         Assist in the development of the presentation materials for the "Road Show" by the Company. 

6.        Facilitate the secondary public offering and follow on offerings, and organize the "Road Show" and participate in the financial presentation to underwriters, financial institutions and, where appropriate individual investors. 

7.        Introduce to the Company by no later than August 1, 2003, at least 3 underwriters who underwrite secondary public stock offerings of companies having a capital structure substantially similar to the Company’s current and proposed capital structure. 

8.        Handle political and environmental introductions at both the federal and state level where appropriate as it relates to vehicle emissions and related issues. 

9.        Provide advice, counsel and assistance from time to time upon request of the Company, with the Company’s development of a franchising strategy. 

10.      Assisting with the development of an Advisory Board, identifying candidates for the Advisory Board and meeting with the Board at the Company’s request. 

11.      Financial and accounting support service provided by Christiane Yusefzadeh will be billed at $60.00 per hour. 

12.     All support service provided by Alice Quatro will be billed at $37.50 per hour. 

	 
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EXHIBIT B 

MILESTONES AND EVENTS FOR VESTING OF WARRANT 

1.  25,000 shares upon execution of this agreement 

2.  35,000 shares upon completion of initial $1.5 million equity capital raised 

3.  35,000 shares upon completion of second $1.5 million equity capital raised 

4.  35,000 shares upon completion of third $1.5 million equity capital raised. 

	 
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EXHIBIT D 

These companies are referenced under Paragraph 2.3.1 

	
1. 
	
Hunt Capital Group 
	
Dallas, Tx. 

	
2. 
	
Cardinal Investment Company,Inc. 
	
Dallas, Tx. 

	
3. 
	
R & R Growth Capital, L.P. 
	
Dallas, Tx. 

These companies are referenced under Paragraph 2.3.1 and expire December 15, 2003. 

	
1. 
	
Grove Capital Corporation 
	
Atlanta, Ga. 

	
2. 
	
McGinn, Smith & Co., Inc. 
	
Atlanta, Ga. 

	
3. 
	
South City Capital, LLC. 
	
Atlanta, Ga. 

	
4. 
	
Gilford Securities, Inc. 
	
New York, NY 

	
5. 
	
Wolf Capital Management 
	
New York, NY 

	
6. 
	
Ryan Bck & Co. 
	
New York, NY 

	
7. 
	
Direct Placement Company 
	
San Diego, Ca. 

	

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