Document:

CONSULTING
AGREEMENT

 

THIS
CONSULTING AGREEMENT (the “Agreement”) is made and entered into as of October 1,
2004 (the “Effective Date”), by and between Endavo, Inc., a Delaware corporation
(the “Company”), and Mark S. Hewitt (“Consultant” or “Hewitt”).

RECITALS

 

A. The
Company desires to avail itself of the experience, advice, and assistance of
Consultant.

 

B. Consultant
is willing to make available to the Company Consultant’s experience, advice, and
assistance.

 

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

 

1.  Services.

(a)  During
the Term (as defined below), Consultant agrees to cause Consultant to serve as
the Chief Technical Officer of the Company and to undertake such duties and
responsibilities that are customary for the principal technical officer of other
similar companies in the Company's line of business, subject at all times to the
direction and control of the Board of Directors. In addition, until such time as
the Company retains the services of a Chief Operating Officer, Consultant shall
also provide certain duties and responsibilities typically undertaken by the
principal operating officer of a similar company, including the direct
management of the Company’s daily operations and operating
personnel.

 

(b)  Consultant
shall cause Hewitt to provide the services to be performed by him hereunder (the
“Services”) from time to time at mutually agreeable times and places. Consultant
and Hewitt shall be free to provide services to other companies during the term
of this engagement, provided that such services do not conflict with or impair
Consultant’s ability to provide the Services to the Company

 

(c)  The
Company shall cause Hewitt to remain elected to the Company’s Board of Directors
(the "Board") and shall serve on the Board until his successor is duly elected
and qualified or until his earlier resignation. 

 

2.  Term
of Agreement; Termination.

 

(a)  The
Company agrees to retain Consultant on the terms and conditions of this
Agreement for a period commencing as of October 1, 2004 and continuing until
December 31, 2004 or such shorter period as may be provided for herein (the
“Initial Term”). The Initial Term of this Agreement may be renewed for such
additional period or periods as the parties may mutually agree (each, a “Renewal
Terms”). The Initial Term, the First Renewal Term and, if this Agreement is
renewed, Renewal Terms are referred to as the “Term.”

 

1

 

(b)  Consultant
may terminate this Agreement at any time, for any reason or no reason, upon 10
days’ prior written notice to the Company. Upon the expiration or termination of
this Agreement for any reason: (i) each party will be released from all
obligations to the other arising after the date of expiration or termination,
except that the obligations under Sections 3 (with respect to any payments due
to Consultant up to and including the termination date), 4, 5 and 10 will
continue after such expiration or termination, and neither party will be
relieved from any liability for breach of this Agreement; and (ii) the election
by Consultant to terminate this Agreement in accordance with its terms will not
be deemed an election of remedies, and all other remedies provided by this
Agreement or available at law or in equity will survive any
termination.

 

3.  Compensation;
Reimbursement of Expenses.

 

(a)  As full
compensation for Consultant for the Services to be rendered to the Company
hereunder, the Company shall pay Consultant a monthly consulting fee (the
“Consulting Fee”) in an amount of cash equaling $15,000. The monthly Consulting
Fee shall be payable on the Company’s regular payroll dates, commencing as of
October 1, 2004, and shall be non-refundable and non-recoupable in the event of
termination of this Agreement prior to the end of any month. 

 

(b)  In
addition to any amounts payable hereunder to Consultant, in the event the
Company completes a “Corporate Transaction” with a third party, the Company will
pay to Consultant in cash at the closing of such Corporate Transaction, an
amount equal to 3% of the cash value of the Corporate Transaction (as determined
by the Company and Consultant in good faith). Deducted from this amount shall be
amounts paid by the Company in consulting fees under this contract in section
3(a) above. The company also agrees to issue to the Consultant such number of
Non-Qualified Sock Options as equals 5% of the amount of shares of the Company’s
common stock issued Company in such Corporate Transaction (or in the event the
Company issues debt or equity securities convertible into common stock, 5% of
the number of shares of the Company’s common stock that may be issued upon
conversion of such securities). Such options shall have a term of ten years and
shall be exercisable at a price of fair market value of the Company’s common
stock on the date of closing of the Corporate Transaction. For purpose of this
Agreement, “Corporate Transaction” means a debt or equity financing by the
Company in the amount of or exceeding $250,000 (any equity or credit line,
“tranched”, or similar multi-closing financings by the same investor or group of
investors shall be considered to be one transaction for the purpose of this
definition), any merger or consolidation of the Company with or into other
company, sale of all of substantially all of the Company’s assets of the
acquisition of the equity capital stock or assets of any other company, other
than in the ordinary course of business. 

 

2

 

(c)  Stock
Options.

 

(i)  Upon
execution of this Agreement, the Company shall grant Hewitt a non-qualified
incentive stock option (the "Stock
Option"),
pursuant to the Company’s Employee Stock Option Plan equaling five percent (5%)
of the fully-diluted outstanding shares of common stock of the Company,
including preferred shares, options, warrants, or other similar securities
outstanding, at an exercise price equal to the closing sales price of the
Company’s common stock on the last trading day prior to the Effective Date of
this Agreement. The Stock Options shall vest at the end of the Initial Term of
this agreement and shall be exercisable until September 30, 2014 (the
“Expiration Date”). 

 

(ii)  Contract
Renewal Options. Pursuant to the an Initial or Subsequent Renewal Agreement, the
amount of options originally issued shall be adjusted, if necessary, to reflect
a total amount issued that equals five percent (5%) of the fully-diluted
outstanding shares of common stock of the Company, including preferred shares,
options, warrants, or other similar securities outstanding, on the First Renewal
Date. If new options are issued to complete the adjustment, then they shall be
issued with an exercise price equal to the closing sales price of the Company’s
common stock on the last trading day prior to the Renewal Date of this Agreement
and shall vest upon the expiration of the Initial or Subsequent Renewal Term.

 

(iii)  Any part
of the Stock Option that shall have become vested on or prior to the termination
or expiration of this Agreement shall remain exercisable until the Expiration
Date. Upon termination of this Agreement by Consultant prior to the expiration
of the Term, any unvested Stock Options shall expire and cease to be
exercisable. 

 

(iv)  The
Company agrees to cause any and all shares of the Company’s common stock
issuable upon exercise of the Stock Option to be registered on registration
statement on Form S-8 as promptly as practicable after the date hereof (and in
any event within 120 days from the date the options become vested).

 

(d)  The
Company shall promptly reimburse Consultant for all out-of-pocket expenses
incurred by it or Hewitt in the performance of its or his obligations hereunder,
including without limitation, all expenses incurred by Hewitt during the period
he is performing services at the Company’s offices in Salt Lake City, Utah, upon
submission of appropriate receipts; provided, however that any single cost or
expense in excess of $1,000 shall be subject to the prior approval of the
Company. In addition, the Company shall reimburse Consultant for its legal costs
in preparing and negotiating this Agreement. 

 

4.  Pre-existing
Works. Company
understands and agrees that Consultant utilizes certain pre-existing source and
object codes, flow charts, algorithms, compilers, assemblers, coding sheets,
design concepts, routines and sub-routines, as well as service utilities which
are basic building blocks of Consultant's products. Company further understands
and agrees that these materials and information, as well as derivative works
which contain such materials and information, while used to develop the software
described in the SOW, shall not be considered “works made for hire” as such term
is defined in 17 U.S.C. §101, are excluded from the work defined in this
agreement, and shall remain the property of Consultant. Consultant agrees to
make the Company aware of such pre-existing works by providing written
documentation to support ownership.

 

3

 

5.  Endavo
Property. For any
equipment, software or documentation Company provides to Consultant for work
done under this agreement (“Property”), Consultant shall exercise at least a
reasonable degree of care to protect the Property, and Consultant shall have
risk of loss or damage to the Property. Title to the Property shall remain with
Company or its owner(s). Upon completion or termination of this agreement, the
Property shall be returned to Company in the same condition as when provided by
the Company, except with reasonable wear and tear. 

 

6.  Indemnification;
Limitation of Liability.

 

(a)  Consultant
shall not have any liability to the Company or any other person in connection
with the services rendered pursuant to this Agreement, except for the liability
for losses, claims, damages or liabilities finally judicially determined to have
resulted from Consultant’s willful misconduct or gross negligence. In no event
shall Consultant be liable to the Company for any loss of its profits or for any
incidental, special, exemplary, or consequential damages. 

 

(b)  The
Company shall indemnify Consultant and its affiliates and their respective
directors, officers, employees, agents and controlling persons (each, a
“Consultant Indemnified Party”) from and against any and all losses, claims,
damages, liabilities, costs and expenses (collectively, “Damages”) as the same
are incurred (including, without limitation, any actual, legal or other expenses
reasonably incurred in connection with investigation, preparing to defend or
defending against any action, claim, suit or proceeding commenced or threatened,
or in appearing or preparing for pretrial proceedings) which arise out of or in
connection with this Agreement or the performance of the Services pursuant to
this Agreement; provided that the Company shall not be liable for any Damages to
the extent they arise from the willful misconduct or gross negligence of the
Consultant Indemnified Party, and provided further that such Consultant
Indemnified Party agrees to refund such reimbursed expenses if and to the extent
it in finally judicially determined that such Consultant Indemnified Party is
not entitled to indemnification.

 

(c)  The
Company agrees to maintain in effect its current Directors’ and Officers’
liability insurance with coverage of at least $5,000,000 per incident, to cause
Hewitt to be a covered party thereunder and to give Hewitt at least 30 days
prior to the expiration or termination thereof. 

 

7.  Confidential
Information.
Consultant agrees not to reveal or disclose to the public or any third person
any Non-Public Information (as defined below) without the Company’s consent,
unless required by any court or governmental or regulatory authority, board or
agency. Consultant agrees to use the same degree of care in protecting the
Non-Public Information of the Company as it uses in protecting its own
confidential information and agrees not to make use of such Non-Public
Information other than in connection with its performance of this Agreement.
“Non-Public Information” shall mean any information pertaining to the business,
properties or financial status of the Company provided by the Company to
Consultant, provided that Non-Public Information shall not include any
information which (i) is or becomes generally available to the public other
than as a result of a disclosure by Consultant, (ii) was available to
Consultant prior to its disclosure to Consultant by the Company, provided that
such information is not known by Consultant to be subject to another
confidentiality agreement with another party, or (iii) becomes available to
Consultant on a non-confidential basis from a source other than the Company,
provided that, to the knowledge of Consultant, such source is not bound by a
confidential agreement with the Company. Upon termination of this Agreement and
at the written request of the Company, any original documentation provided by
the Company to Consultant will be returned by Consultant. Consultant will
require similar confidentiality agreements from its employees or agents where it
reasonably believes they will come in contact with Non-Public Information of the
Company.

 

4

 

8.  Independent
Contractor.
At all
times during the Term, Consultant is and shall be an independent contractor in
providing the Services hereunder, with the sole right to supervise, manage,
operate, control, and direct the performance incident to the Services. Nothing
contained in this Agreement shall be deemed or construed to create a partnership
or joint venture, to create the relationships of employee/employer or
principal/agent, or otherwise create any liability whatsoever as partner, joint
venturer, employer, employee, principal, or agent for either the Company or
Consultant with respect to the indebtedness, liabilities, or obligations of each
other or of any other person or entity.

 

9.  Notices.
All
notices, requests, demands and other communications hereunder shall be in
writing and shall be personally delivered, delivered by facsimile or courier
service, or mailed, certified with first class postage prepaid, to the addresses
set forth below:

 

 

	
      If
      to the Company, to: 
	 	Endavo
      Media & Communications, Inc.
50 West Broadway #1100
Salt Lake
      City, UT 84101
Attention: Chairman of the Board
Facsimile Number:
      (801) 933-5640
Phone Number: (801) 350-2017 
	 	 	 
	
      If
      to Consultant, to: 
	 	Mark
      S Hewitt
6900 Corral Gate Lane
Sarasota, FL 34241
Telephone
      Number: (941) 923-7718 
	 	 	 

Each such
notice shall be deemed to have been given (whether actually received or not) on
the date of actual delivery thereof, if personally delivered or delivered by
facsimile transmission (if receipt is confirmed at the time of such transmission
by telephone or facsimile machine-generated confirmation), or on the third day
following the date of mailing, if mailed in accordance with this Section, or on
the day specified for delivery to the courier service (if such day is one on
which the courier service will give normal assurances that such specified
delivery will be made). Any notice, request, demand, or other communication
given otherwise than in accordance with this Section shall be deemed to have
been given on the date actually received. Any party may change its address for
purposes of this Section by giving written notice of such change to all other
parties in the manner hereinabove provided. 

 

5

 

10.  Binding
Effect. This
Agreement shall be binding upon Consultant and the Company and their respective
successors and permitted and assigns.

 

11.  Assignment. Neither
this Agreement nor the rights and obligations hereunder may be assigned by
operation of law or otherwise without the express consent of the other party
(which consent may be granted or withheld in the sole and absolute discretion of
such other party).

 

12.  Governing
Law; Jurisdiction. This
agreement shall be governed by and construed in accordance with the laws of the
state of Delaware without giving effect to any conflicts of law provisions. Any
controversy or claim arising out of, or relating to, this Agreement, to the
making, performance, or interpretation of it, shall be settled by arbitration in
the New York City, New York, unless otherwise mutually agreed upon by the
parties, under the commercial arbitration rules of the American Arbitration
Association then existing, and any judgment on the arbitration award may be
entered in any court having jurisdiction over the subject matter of the
controversy. If any legal action or any arbitration or other proceeding is
brought for the enforcement of this Agreement, or because of an alleged dispute,
breach, default, or misrepresentation in connection with any of the provisions
of this Agreement, the successful or prevailing party or parties shall be
entitled to recover reasonable attorney's fees and other costs incurred in that
action or proceeding, in addition to any other relief to which it or they may be
entitled.

 

13.  Severability. If any
term or other provision of this Agreement is invalid, illegal or incapable of
being enforced under any law or public policy, all other terms and provisions of
this Agreement will nevertheless remain in full force and effect. Upon such
determination that any term or other provision is invalid, illegal or incapable
of being enforced, the parties hereto will negotiate in good faith to modify
this Agreement so as to effect the original intent of the parties as closely as
possible in an acceptable manner.

 

14.  Counterparts. This
Agreement may be executed in a number of identical counterparts, each of which,
for all purposes, is to be deemed an original, and all of which constitute,
collectively, one agreement; but in making proof of this Agreement, it shall not
be necessary to produce or account for more than one such
counterpart.

 

15.  Amendment. This
Agreement may not be changed, modified or discharged, in whole or in part, nor
may any of its provisions be waived, except by a written instrument that
expressly refers to this Agreement and that is executed by the party against
whom enforcement of the change, modification, discharge or waiver is sought. Any
waiver by any party of a breach of any provision of this Agreement shall not
operate as, or be construed to be a waiver of, any other breach of such
provision or of any breach of any other provision of this Agreement. The failure
of either party to assert any of its rights under this Agreement shall not
constitute a waiver of any of such rights.

 

6

 

16.  Entire
Agreement. This
Agreement (including any Exhibits hereto and the documents delivered pursuant
hereto) constitutes the entire agreement of the parties hereto with respect to
the subject matter hereof and supersedes all prior agreements and undertakings,
both written and oral, among the parties hereto with respect to the subject
matter.

 

17.  Headings. The
various titles of the paragraphs, captions, headings, and arrangements herein
are used solely for convenience, shall not be used for interpreting or
construing any word, clause, paragraph, or subparagraph of this Agreement, and
do not in any way affect, limit, amplify, or modify the terms
hereof.

 

7

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
first above written.

 

	 	 	 
	 	ENDAVO MEDIA AND
      COMMUNICATIONS, INC.
	 
 	 
 	 
 
		By:  	 /s/
      Paul D. Hamm
	 	
      

      Name: 

	 	Title:

		 	 
	 	CONSULTANT:
	 
 	 
 	 
 
		By:  	 /s/
      Mark S. Hewitt
	 	
      

      Mark
      S. Hewitt  
	 	

 

    

8

 

Exhibit
A

Stock
Option Agreement

 

9CONSULTING
AGREEMENT

 

THIS
CONSULTING AGREEMENT
(“Agreement”) is made and entered into effective as of September 17, 2004, (the
“Effective Date”) by and between CeriStar, Inc., a Delaware corporation, (the
“Company”), whose address is 50 West Broadway, Suite 1100, Salt Lake City, Utah
84101 and Castlegate Group, Ltd., a Hong Kong corporation, (the “Consultant”),
whose address is 4002a, Central Plaza, 18 Harbour Road, Wanchai, Hong
Kong.

Recitals

A. The
Company wishes to engage the services of the Consultant to advise and consult
with the Company on certain business and financial matters as set forth in this
Agreement.

B. The
Consultant has extensive experience in investment banking, business and
financial consulting, and entrepreneurial executive management. As a result, the
Consultant has the expertise to advise and assist the Company in developing a
successful business plan, and in evaluating businesses that may be likely
candidates to strategically partner with the Company.

C. The
Company wishes to engage the services of the Consultant as an independent
contractor to advise and consult with it with respect to (i) developing a
successful business plan, (ii) exploring strategic alliances, partnering
opportunities and other cooperative ventures, (iii) evaluating possible
acquisition and strategic partnering candidates, and marketing opportunities for
the Company, (iv) the Company’s business development activities, including major
geographic and service expansion plans, (v) the Company’s merger and acquisition
strategies, including the evaluation of targets and the structuring of
transactions; (vi) the Company’s employee relations; and (vii) the Company’s
marketing strategy; all on the terms and subject to the conditions set forth in
this Agreement.

D. The
Consultant is willing to accept such engagement, on the terms set forth in this
Agreement.

Now
therefore, in consideration of the foregoing recitals and the mutual covenants
and obligations contained in this Agreement, including the payment of fees and
other good and valuable consideration contained herein, the parties agree as
follows:

1.
Engagement.

1.1. Engagement. The
Company hereby engages the Consultant to perform the Services, as defined and
set forth in paragraph 1.4, for the Term as defined and set forth in paragraph
1.2, and the Consultant hereby accepts this engagement, on the terms and subject
to the conditions set forth in this Agreement

1.2. Term. The term
of the Consultant’s engagement under this Agreement shall be for the period
beginning on the Effective Date and ending when terminated as provided in
paragraph 4 below.

1.3. Relationship. The
relationship between the Company and the Consultant created by this Agreement is
that of independent contractors, and the Consultant is not and shall not be
deemed to be an employee of the Company for any purpose.

1.4. Services. The
following services (the “Services”) shall be rendered, from time to time by the
Consultant during the Term, as the Company may request, solely for the Company’s
benefit and not for the benefit of any third party:

 

(a) Assist
management with the development of a successful business plan for the
Company.

 

(b) Explore
strategic alliances, partnering opportunities and other cooperative ventures for
the Company within and without the Company’s present industry focus.

 

 

(c) Evaluate
possible acquisition and strategic partnering candidates, and marketing
opportunities for the Company.

 

(d) Evaluate
the Company’s business development activities, including major geographic and
service expansion plans.

 

(e) Evaluate
the Company’s merger and acquisition strategies, including the evaluation of
targets and the structuring of transactions.

 

(f) Evaluate
the Company’s employee relations.

 

(g) Evaluate
the Company’s marketing strategy.

 

(h) Advise
and consult with the Company’s board of directors (the “Board”) and executive
officers with respect to any of the above described matters.

1.5. No
Capital Raising Services. The
Services do not include consulting with or advising or assisting the Company, in
any manner (i) in connection with the offer or sale of securities in any
capital-raising transaction, or (ii) to directly or indirectly promote or
maintain a market for any of the Company’s securities.

1.6. No
Investment Advisory or Brokerage Services; No Legal Services. The
Services do not include requiring the Consultant to engage in any activities for
which an investment advisor’s registration or license is required under the U.S.
Investment Advisors Act of 1940, or under any other applicable federal or state
law; or for which a “broker’s” or “dealer’s” registration or license is required
under the U.S. Securities Exchange Act of 1934, or under any other applicable
federal or state law. Consultant’s work on this engagement shall not constitute
the rendering of legal advice, or the providing of legal services, to the
Company. Accordingly, Consultant shall not express any legal opinions with
respect to any matters affecting the Company. Consultant’s work on this
engagement shall not consist of effecting transactions in the Company’s
securities and Consultant shall not provide any securities broker-dealer
services to the Company. 

1.7. Location. The
Company and the Consultant intend that the Services shall be rendered primarily
from the Consultant’s offices in Hong Kong and may be rendered by telephone and
e-mail communication. The Consultant understands and acknowledges it may be
necessary to travel to perform the Services, and that the Consultant shall be
required to do so at its own expense (the Consultant’s Fee having been agreed to
in consideration thereof). The Consultant shall not be required to perform any
services in the United States, or in any manner that would subject the
Consultant’s Fee defined in paragraph 2.1 below to United States federal or
state income taxation. The Consultant shall, if requested by the Company and at
the Company’s expense, attend meetings of the Company’s board of directors (the
“Board”) at reasonable times, provided that the Company shall have provided the
Consultant with an opinion of tax counsel satisfactory to the Consultant that
doing so will not subject the Consultant’s Fee to United States federal income
taxation. The Consultant shall be reasonably available by telephone to consult
with the Board at regular and special meetings thereof.

1.8. Time;
Non-exclusive. The
Consultant shall devote as much time to the performance of the Services as is
reasonably necessary, but the Consultant shall not be required to devote any
fixed number of hours or days to the performance of the Services. The Company
recognizes that the Consultant has and will continue to have other clients and
business, and agrees that this engagement is non-exclusive.

1.9. Support
Staff and Facilities. The
Consultant shall furnish its own support staff, office, telephone, and other
facilities and equipment necessary to the performance of the Services, and the
Company shall not be required to provide the Consultant with any such staff,
facilities or equipment.

1.10. Confidentiality. The
Consultant shall not disclose any non-public, confidential or proprietary
information, including but not limited to confidential information concerning
the Company’s products, methods, engineering designs and standards, analytical
techniques, technical information, customer information, or employee
information, unless required to do so by applicable law.

2

 

2.
 Consultant’s
Fees and Expenses.

2.1. The
Consultant’s Fee. The
Consultant agrees to accept compensation for its services under this Agreement
in the form of shares of the Company’s common stock, rather than in cash, on the
following terms:

(a) The
Company shall issue and deliver to the Consultant, as a fee for its Services
under this Agreement (the “Consultant’s Fee”) 1,200,000 of the Company’s Common
Stock (the “Shares”), 500,000 Class C Warrants each to purchase one share of
common stock at a price of $.37 per share, 330,000 Class D Warrants each to
purchase one share of common stock at a price of $.46 per share and 170,000
Class E Warrants each to purchase one share of common stock at a price of $.65
per share (the “Warrants”) at any time prior to the expiration of six months
after the date hereof, all of which shall be fully earned and non-refundable in
consideration of its execution of this Agreement. The Company shall issue the
Shares and Warrants in the name of Marc Lane, the Consultant’s Nominee
Advisor.

(b) In
connection with the formation of a strategic plan for 2004, the Board adopted a
directors and officers stock option and stock award plan (the “Plan”). The
Company filed a registration statement on Form S-8 (the “Registration
Statement”) with the Securities and Exchange Commission (the “SEC”) that
registers the issuance of shares of common stock, preferred stock and options
under the terms of the Plan. The Company shall issue the Consultant’s Fee
pursuant to and in accordance with the Plan. The certificates representing the
Shares and Warrants shall be free and clear of any legends or
restrictions.

 

(c) The
Company shall issue instructions to its transfer agent to issue the certificates
representing the Shares and Warrants, free and clear of any legend, restriction
or stop order, and deliver the shares, so registered, to Consultant. The Company
warrants that the Shares and Warrants as well as the shares of common stock
usable upon their conversion shall be freely transferable on the books and
records of the Company. Nothing in this Section 2.1(c) shall affect in any way
the Consultant’s obligations and agreement to comply with all applicable
securities laws upon resale of the Shares and Warrants as well as the shares of
common stock usable upon their conversion. 

(d) If the
Company shall merge or consolidate with or into another corporation for the
purpose of changing the corporate domicile, then, as a result of such
consolidation or merger, the Company, or such successor, as the case may be,
shall make lawful and adequate provision whereby the holder of the Shares and
Warrants shall receive the kind and amount of securities receivable immediately
prior to such consolidation or merger without the necessity of any further
action on the part of either the Company or the holder of the Shares and
Warrants.

2.2. Offset;
Withholding; Taxes. The
Company shall pay the Consultant’s Fee to the Consultant without offset,
deduction or withholding of any kind or for any purpose. The Consultant shall
pay any federal, state and local taxes payable by it with respect to the
Consultant’s Fee, and shall indemnify the Company against and hold it harmless
from any such taxes.

2.3. The
Consultant’s Expenses. Except
for expenses incurred in attending meetings of the Board as set forth in
paragraph 2.7 above and such other expenses as the Company shall first expressly
agree in writing to pay or reimburse to Consultant, the Consultant shall pay all
expenses incurred by it in connection with its performance of the Services under
this Agreement.

3. Representations,
Warranties and Covenants:

3.1. Representations
and Warranties of the Company. The
Company represents and warrants to and covenants with the Consultant
that:

(a) Incorporation,
Good Standing, and Due Qualification. The
Company is a corporation duly incorporated, validly existing and in good
standing under the laws of Delaware; has the corporate power and authority to
own its assets and to transact the business in which it is now engaged and
proposes to be engaged in; and is duly qualified as a foreign corporation and in
good standing under the laws of each other jurisdiction in which such
qualification is required.

 

3

 

(b) Power
and Authority. The
execution, delivery and performance by the Company of this Agreement, including
the issuance of the Shares and Warrants have been duly authorized by all
necessary corporate action and do not and will not (i) require any consent or
approval of the Company’s shareholders; (ii) contravene the Company’s articles
of incorporation or bylaws; (iii) violate any provision of any law, rule,
regulation, order, writ, judgment, injunction, decree, determination or award
presently in effect having applicability to the Company; (iv) result in a breach
of or constitute a default under any agreement or other instrument to which the
Company is a party.

(c) Legally
Enforceable Agreement. This
Agreement is the, legal, valid and binding obligation of the Company,
enforceable against it in accordance with its terms, except to the extent that
such enforcement may be limited by applicable bankruptcy, insolvency and other
similar laws affecting creditors’ rights generally.

(d) The
Shares and Warrants. The
Shares and Warrants as well as the shares of common stock usable upon their
conversion are duly and validly authorized, and when issued will be fully paid
and nonassessable.

3.2. Representations
and Warranties of the Consultant. The
Consultant represents and warrants to and covenants with the Company that:

(a) Incorporation,
Good Standing, and Due Qualification. The
Consultant is a corporation duly incorporated, validly existing and in good
standing under the laws of the jurisdiction of its incorporation; has the
corporate power and authority to own its assets and to transact the business in
which it is now engaged and proposes to be engaged in; and is duly qualified as
a foreign corporation and in good standing under the laws of each other
jurisdiction in which such qualification is required.

(b) Power
and Authority. The
execution, delivery and performance by the Consultant of this Agreement, have
been duly authorized by all necessary corporate action and do not and will not
(i) require any consent or approval of the Consultant’s stockholders; (ii)
contravene the Consultant’s charter or bylaws; (iii) violate any provision of
any law, rule, regulation, order, writ, judgment, injunction, decree,
determination or award presently in effect having applicability to the
Consultant; (iv) result in a breach of or constitute a default under any
agreement or other instrument to which the Consultant is a party.

(c) Legally
Enforceable Agreement. This
Agreement is the legal, valid and binding obligation of the Consultant,
enforceable against it in accordance with its terms, except to the extent that
such enforcement may be limited by applicable bankruptcy, insolvency and other
similar laws affecting creditors’ rights generally.

(d) The
Consultant is an accredited investor as defined in SEC Rule 501(a).

(e) The
Consultant has such knowledge and experience in financial and business matters
that it is capable of evaluating the merits and risks of its election to receive
the Consultant’s Fee in the form of the Shares and Warrants, rather than in
cash.

(f) Marc
Lane, is the Consultant’s Nominee Advisor.

(g) Neither
Consultant nor Mr. Lane:

 

4

 

(i) is the
subject of any court order, judgment or decree, not subsequently reversed,
suspended or vacated, permanently or temporarily enjoining it or him from, or
otherwise limiting their involvement in any of the following
activities:

(A) Acting as
a futures commission merchant, introducing broker, commodity trading advisor,
commodity pool operator, floor broker, leverage transaction merchant, any other
person regulated by the Commodity Futures Trading Commission (“CFTC”) or any
associated person of any of the foregoing, or as an investment adviser,
underwriter, broker or dealer in securities, or as an affiliated person,
director or employee of any investment company, bank, savings and loan
association or insurance company, or engaging in or continuing any conduct or
practice in connection with such activity;

(B) Engaging
in any type of business practice; or

(C) Engaging
in any activity in connection with the purchase or sale of any security or
commodity, or in connection with any violation of federal or state securities
laws or federal commodities laws.

(ii) was the
subject of any order, judgment or decree, not subsequently reversed, suspended
or vacated, of any federal or state authority barring, suspending or otherwise
limiting for more than 60 days its or his right to engage in any activity
described in subparagraph (i) above, or to be associated with persons engaged in
any such activity.

(iii) was found
by a court in a civil action or by the Securities and Exchange Commission
(“SEC”) to have violated any federal or state securities law, and the judgment
in such civil action or finding by the SEC has not been subsequently reversed,
suspended or vacated.

(iv) was found
by a court in a civil action or by the CFTC to have violated any federal
commodities law, and the judgment in such civil action or finding by the CFTC
has not been subsequently reversed, suspended or vacated.

4. Termination.
This
Agreement may not be terminated prior to the expiration of the
Term:

5. Confidential
Information.

5.1. The
parties hereto recognize that a major need of the Company is to preserve its
specialized knowledge, trade secrets, and confidential information. The strength
and good will of the Company is derived from the specialized knowledge, trade
secrets, and confidential information generated from experience with the
activities undertaken by the Company and its subsidiaries. The disclosure of
this information and knowledge to competitors would be beneficial to them and
detrimental to the Company, as would the disclosure of information about the
marketing practices, pricing practices, costs, profit margins, design
specifications, analytical techniques, and similar items of the Company and its
subsidiaries. By reason of his being a Consultant to the Company, Consultant has
or will have access to, and will obtain, specialized knowledge, trade secrets
and confidential information about the Company’s operations and the operations
of its subsidiaries, which operations extend through the United States.
Therefore, Consultant recognizes that the Company is relying on these agreements
in entering into this Agreement.

5.2
During and after the Term Consultant will not use, disclose to others, or
publish any inventions or any confidential business information about the
affairs of the Company, including but not limited to confidential information
concerning the Company’s products, methods, engineering designs and standards,
analytical techniques, technical information, customer information, employee
information, and other confidential information acquired by him in the course of
his past or future services for the Company. Consultant agrees to hold as the
Company’s property all memoranda, books, papers, letters, formulas and other
data, and all copies thereof and therefrom, in any way relating to the Company’s
business and affairs, whether made by him or otherwise coming into his
possession, and on termination of his consultancy, or on demand of the Company,
at any time, to deliver the same to the Company within twenty four hours of such
termination or demand.

 

5

 

5.3
During the Term Consultant will not induce any employee of the Company to leave
the Company’s employ or hire any such employee (unless the Board of Directors of
the Company shall have authorized such employment and the Company shall have
consented thereto in writing).

6. General
Provisions.

6.1. Entire
Agreement; Modification; Waivers. This
Agreement contains the entire agreement of the parties, and supersedes any prior
agreements with respect to its subject matter. There are no agreements,
understandings or arrangements of the parties with respect to the subject matter
of this Agreement that are not contained herein. This Agreement shall not be
modified except by an instrument in writing signed by the parties. No waiver of
any provision of this Agreement shall be effective unless made in writing and
signed by the party making the waiver. The waiver of any provision of this
Agreement shall not be deemed to be a waiver of any other provision or any
future waiver of the same provision.

6.2.
Notices. All
notices given under this Agreement shall be in writing, addressed to the parties
as set forth below, and shall be effective on the earliest of (i) the date
received, or (ii) on the second business day after delivery to a major
international air delivery or air courier service (such as Federal Express or
Network Couriers):

	
      If
      to the Company:

      CeriStar,
      Inc.

      50
      West Broadway, Suite 1100

      Salt
      Lake City, Utah 84101

      Attention:
      Paul D. Hamm, CEO
	 	
      If
      to the Consultant:

      Castlegate
      Group, Ltd.

      4002a,
      Central Plaza

      18
      Harbour Road

      Wanchai,
      Hong Kong

      Attention:
      Marc Lane, President

6.3. Governing
Law. This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York; provided,
however, that if
any provision of this Agreement is unenforceable under such law but is
enforceable under the laws of the State of Delaware, then Delaware law shall
govern the construction and enforcement of that provision.

 

6.4. Jurisdiction
and Venue. The
courts of the State of New York sitting in City of New York, Burrough of
Manhattan (the “Manhattan Courts”) shall have exclusive jurisdiction to hear,
adjudicate, decide, determine and enter final judgment in any action, suit,
proceeding, case, controversy or dispute, whether at law or in equity or both,
and whether in contract or tort or both, arising out of or related to this
Agreement, or the construction or enforcement hereof or thereof (any such
action, suit, proceeding, case, controversy or dispute, a “Related Action”). The
Company and the Consultant hereby irrevocably consent and submit to the
exclusive personal jurisdiction of the Manhattan Courts to hear, adjudicate,
decide, determine and enter final judgment in any Related Action. The Company
and the Consultant hereby irrevocably waive and agree not to assert any right or
claim that it is not personally subject to the jurisdiction of the Manhattan
Courts in any Related Action, including any claim of forum
non conveniens or that
the Manhattan Courts are not the proper venue or form to adjudicate any Related
Action. If any Related Action is brought or maintained in any court other than
the Manhattan Courts, then that court shall, at the request of the Company or
the Consultant, dismiss that action. The parties may enter a judgment rendered
by the Manhattan Courts under this Agreement for enforcement in the courts of
Delaware and the party against whom such judgment is taken will not contest the
authority of such courts to enforce such a judgment.

 

6.5. Waiver
of Jury Trial. The
Company and the Consultant hereby waive trial by jury in any Related Action.

 

6.6 Attorney’s
Fees.
The
prevailing party in any Related Action shall be entitled to recover that party’s
costs of suit, including reasonable attorney’s fees.

6

 

6.7 Binding
Effect. This
Agreement shall be binding on, and shall inure to the benefit of the parties and
their respective successors in interest.

 

6.8 Construction,
Counterparts. This
Agreement shall be construed as a whole and in favor of the validity and
enforceability of each of its provisions, so as to carry out the intent of the
parties as expressed herein. Headings are for the convenience of reference, and
the meaning and interpretation of the text of any provision shall take
precedence over its heading. This Agreement may be signed in one or more
counterparts, each of which shall constitute an original, but all of which,
taken together shall constitute one agreement. A faxed copy or photocopy of a
party’s signature shall be deemed an original for all purposes.

 

IN
WITNESS WHEREOF, the
parties have executed this Agreement effective as of the Effective
Date

 

	The Company: 	 	 	The Consultant: 
	 	 	 	 
	CERISTAR, INC.	 	 	CASTLEGATE GROUP LTD. 
	 	 	 	 
	By /s/ Paul D.
      Hamm	 	 	By /s/ Marc
    Lane
	
      

    	 	 	
      

    
	
      Paul D. Hamm

      CEO
	 	 	Marc Lane, Nominee
      Advisor/

      Authorized
      Signatory

 

7

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