Document:

PROJECT MANAGEMENT AGREEMENT TERMS &
CONDITIONS

 

This Agreement is made on the 15th July 2013 (hereinafter referred
to as date) between Elite Product Management Ltd, the Vendor, which has premises at Room 703, Kowloon Building, 555 Nathan
Road, Kowloon, Hong Kong (hereinafter referred to as “EPML”) and Exeo Entertainment,
Inc. (hereinafter referred to as “Exeo”).

 

		1.	Purpose of the Agreement

 

		1.1.	EPML undertakes to provide management of product transfer to new manufacturing factory and product development services to
Exeo to support its design, product development, product re-engineering and manufacturing management.

 

		1.2.	This agreement are covering three products

 

		1.2.1.	PsykoTM: http://www.exeoent.com/products/krypton.html

 

		1.2.2.	ZaazTM: http://www.exeoent.com/products/Zaaz.html

 

		1.2.3.	Extreme Gamer®: http://www.exeoent.com/products/extremGamer.html

 

		2.	Contract Term

 

This agreement is one-year contract effective with
the contract signed date.

 

		3.	EPML Responsibilities

 

The key roles are outlined below:

 

		3.1.	Product Sourcing, which will be made available to Exeo on request

 

		3.2.	Production Management

 

		3.3.	Manage factory relationships – act as first point of contact for Exeo /Psyko

 

		3.4.	Develop and maintain production plan with each factory for every product

 

		3.5.	Review and evaluate supplier BOMs making recommendations to factories and Exeo where appropriate to save money or improve on
quality of components

 

		3.6.	Work with factories to find solutions to production issues to ensure that any delays in production are minimal and any defaults
by the factory are managed and solutions applied

 

		3.7.	Quality Control

 

		3.7.1.	Develop Product Testing Plan

 

		3.7.2.	Agree standards with Exeo

 

		3.7.3.	Ensure standards are communicated to factories and are signed off in advance of production

 

		3.7.4.	Evaluate samples and prototypes

 

		3.7.5.	Develop and monitoring the product reliability testing procedures

 

	 
	4478 Wagon Trail Ave · Las Vegas, NV
89118 · Phone 702-361-3188 · Fax 702-361-4359

 

    	 

    	 

    

  

	Exeo Entertainment, Inc.

 

		3.7.6.	Regularly visit factories to inspect and test at various stages of production from delivery of components to finished products

 

		3.7.7.	Analyze and report on problems incurred in mass production work with Product Manager and Vendors to find solutions

 

		3.7.8.	Conduct periodic vendor audits

 

		3.8.	Product development and design modifications

 

		3.8.1.	Work with supplier to provide the product engineering development (2D modification and 3D drawing etc.)

 

		3.8.2.	Product improvement and re-engineering.

 

		3.8.3.	Supervise the development of CAD (as required by Exeo) and arrange the tooling transfer

 

		3.8.4.	Supervise the Tooling modification – output will be the Product Validation Test (PVT) Samples.

 

		3.8.5.	Review the tooling, and if satisfied request that the Engineering Product (EP) samples are produced.

 

		3.8.6.	Undertake the EP testing and if satisfied proceed to testing stage.

 

		3.8.7.	On approval of test samples instruct the factory to produce the Golden Sample.

 

		3.9.	QA Pre-Shipment Inspection

 

		3.10.	New technology research and introducing

 

		3.11.	Vendor Management

 

		3.11.1.	Provide assistance to negotiate commercial terms and improve payment terms with factories on behalf of Exeo

 

		3.11.2.	EPML will undertake an on-going program to ensure Vendor conformity and performance standards which will include:

 

		3.11.2.1.	Conformity and validation of certification requirements for each product relevant to the target market into which the goods
will be sold by Exeo.

 

		3.11.2.2.	A program of factory audits which will be made available to Exeo on request

 

		3.11.2.3.	Regular vendor performance evaluation

 

		3.11.2.4.	Continual Quality Control programs to maintain conformance to the golden sample and BOM.

 

		3.11.2.5.	Undertake testing of samples and provide feedback to Exeo

 

		3.11.2.6.	Review and Work with suppliers to meet or improve on agreed target FOB costs as agreed with EXEO.

 

		4.	Pricing and payment terms

 

		4.1.	The service costs are structured as a flat monthly payment with one-year contract.

 

	 
	4478 Wagon Trail Ave · Las Vegas, NV
89118 · Phone 702-361-3188 · Fax 702-361-4359

  

    	2

    	 

    

  

	Exeo Entertainment, Inc.

 

		4.2.	EPML will be paid US$5,250 as a monthly retainer for design, development and management for products.

 

		4.3.	The service fee will be payable monthly on the 15th day of each calendar month.

 

		4.4.	US$5,250 will be payable upon the contract signed as one month pre-payment

 

		5.	Governing law

 

This agreement shall be governed by and interpreted
in accordance with Hong Kong law.

 

The headings in this agreement are for convenience
only and have no legal effect.

  

IN WITNESS of the above the parties have executed this agreement
on the date written at the head of this agreement.

 

	Signed for and on behalf of EMPL:	 	Signed for and on behalf of Exeo:
	 	 	 
	 	 	/s/ Robert Scott Amaral
	 	 	 
	 	 	 
	Name: Kitty Lo	 	Name:  Robert Scott Amaral
	 	 	 
	Position: Managing Director	 	Position: Chief Executive Officer
	 	 	 
	Date:	 	 	Date: July 15, 2013

 

	 
	4478 Wagon Trail Ave · Las Vegas, NV
89118 · Phone 702-361-3188 · Fax 702-361-4359

 

    	3CONSULTING
SERVICES AGREEMENT

 

This Consulting Services Agreement
is entered into this 10th day of August 2012 by and between Markel Enterprises LLC, hereinafter referred to as "Consultant",
and Exeo Entertainment, Inc., hereinafter referred to as "Client".

 

Whereas Consultant is engaged
in the business of project development and engineering and Client desires to retain Consultant to provide services related to the
project known as Zaaz Keyboards, hereinafter referred to as "Product", Consultant has agreed to provide such services
under the terms and conditions set forth herein.

 

Now therefore, for and in consideration
of the payments hereinafter specified to be made by Client to Consultant, the parties hereto do hereby agree as follows:

 

		Section I.	SCOPE OF WORK

 

Consultant shall perform the
work specifically indicated in Attachment "A" and any additional work authorized by subsequent addenda as outlined under
Section II (4) herein.

 

	ESTIMATED FEES for services outlined in Attachment "A":	 	$	8160.00	 
	 	 	 	 	 
	RETAINER Due upon Execution of Agreement:	 	$	2000.00	 

 

1.  Fee Estimate.
Actual fees may be more or less than the estimated amount depending upon extent of drawing revisions or modifications, client meetings
and other factors. In addition to fees, Client agrees to pay for all project- related expenses incurred by Consultant in accordance
with Section II, Paragraph 2, herein.

 

2.  Exclusions
to Scope of Work. Fee estimate is based on the specific scope of work outlined in Attachment "A". For example,
scope of work does NOT include any hours for the following:

 

		·	Offshore
                                                                                                               work: time
                                                                                                               spent at factories,
                                                                                                               with suppliers,
                                                                                                               sourcing, traveling
                                                                                                               to/from/in China

 

If Client elects to expand scope
of work to include the above or other unspecified additional work, fee estimate will be adjusted accordingly. 

 

	Consulting
    Services Agreement – EXEO – Page 1	Initials	 	 	 	 

 

    	 

    	 

    

 

 

		Section II.	AGREEMENT PRICE
                                                                                                         AND TERMS OF PAYMENT

 

In consideration of Consultant
providing the services and work set forth herein, Client shall pay Consultant on a time and materials basis as hereinafter
provided:

 

1.            Fees shall be paid by Client
for the time that Consultant and Consultant's employees or agents are directly engaged in the work outlined herein. Hours worked
shall be recorded daily in fifteen-minute increments (0.25 hour). Where work related to Client's project is performed but accounts
for less than fifteen minutes in any one day, a minimum 0.25 hour charge shall apply. Client shall pay fees in accordance with
Consultant's current billing rate schedule, which at the date of this agreement is as follows:

 

	$120.00 per hour	Engineering Services / Product Development

 

Consultant's billing rates may
change from time to time. However, the rates outlined herein shall be guaranteed for a minimum of 90 days from the date of this
agreement. Any change in rates requires a thirty-day advance written notification from Consultant.

 

2.           For all expenses incurred
by Consultant in conjunction with performance of the work outlined herein, Client shall reimburse Consultant's actual cost. Such
expenses may include but are not limited to:

		·	expense of shipping, courier or overnight delivery service, long distance
communications and wire charges

		·	reasonable
out of town transportation and living expenses (e.g. lodging, meals,, rentalcars, gasoline, airfare, tolls, cab fare) incurred
in connection with the scope of work

		·	expense of reproductions, renderings, prototypes, and mock-ups requested
by Client

		·	expense of tests, surveys, focus groups and research authorized by
Client

		·	expenses related to camera-ready artwork for printing, screen printing,
and embroidery

 

Consultant reserves the right
to decline to incur any or all expenses associated with performance of the work herein, in which case Client must pay directly
for such expenses. Further, Client may elect to use its own account numbers for FedEx / UPS shipping and similar services and/or
to directly pay vendors/suppliers for expenses in excess of $50.00, in which case Client shall notify Consultant of such election
prior to start of project.

 

3.            At his option, Consultant
may subcontract portions of the work outlined herein. All provisions of this agreement shall apply to the subcontractor, and Consultant
shall so inform subcontractor(s).

 

4.            Should Client desire to
change the scope of Consultant's work hereunder, then prior to such change of scope the Agreement price (i.e., fees and expenses)
shall be subject to adjustment, at Consultant's discretion, by an amount to be mutually agreed upon to reflect the value of such
change. Any change in scope of work and fees shall be documented by written addenda executed by both Client and Consultant.

 

5.            Consultant
shall submit invoices to Client on a bi-monthly (every other week) basis. Payment shall be due fifteen (15) calendar
days from the date of the invoice. Late payments shall be subject to a service charge of 1-1/2% per month or the legal rate, whichever
is greater. The retainer will be held and applied to the final invoice – retainer amount will not be applied to bi-monthly
invoices. Consultant agrees to keep records pertaining to all charges applicable to this
agreement.

 

	Consulting
    Services Agreement – EXEO – Page 2	Initials	 	 	 	 

 

    	 

    	 

    

 

 

		Section III.	OWNERSHIP AND
                                                                                                          CONFIDENTIALITY

 

1.            It is understood and agreed
that all drawings, specifications, and other such documents or artwork paid for by Client hereunder are intended to be considered
"works made for hire", and that any copyright in said drawings, specifications, and other such documents shall be in
Client's name and shall become the property of Client and, as such, Client shall have the right to photograph, reproduce, copy,
duplicate, use, and distribute all such "works made for hire" in any manner it deems desirable.

 

2.            Consultant shall treat
as confidential all information that Client makes available to Consultant. Consultant shall not disclose confidential information
to any third party or use it or any part thereof except as necessary in the performance of services for Client as outlined herein.
Consultant agrees to use its best efforts to limit access to such information to those employees, agents, suppliers, or subcontractors
reasonably requiring such access for purposes of performing work hereunder. Upon completion of services or at Client's request,
Consultant will return all information and documents that relate to the project.

 

		Section IV.	FORCE
                                                                                                         MAJEURE

 

1.            Except
as otherwise provided for herein, any obligation of either party hereto shall be suspended to the extent and for so long as
the performance of such obligation is prevented or hindered in whole or in part by reason of strikes, acts of God, federal,
state, county, or municipal laws, rules, orders, or regulations, or any laws, rules, orders, or regulations issued by any
competent body or regulatory authority,  or for any other cause, except financial inability, whether similar or dissimilar to
those specifically enumerated herein, which is beyond the reasonable control of the party claiming such suspension. Where
such a suspension occurs, the party affected shall inform the others in writing and all parties shall use their best efforts
to resume the performance of their obligations hereunder as soon as is practicable.

 

		Section V.	INDEMNITY

 

1.            With regard to the services
to be performed by Consultant pursuant to the terms of this agreement, Consultant shall not be liable to Client or to anyone who
may claim any right due to any relationship with Client, for any acts or omissions in the performance of services on the part of
Consultant or on the part of agents, employees or subcontractors of Consultant, except when said acts or omissions of Consultant
are due to willful misconduct or gross negligence.

 

2.            To the fullest extent permitted
by law, Client shall indemnify and hold harmless Consultant and Consultant's agents, subcontractors and employees from and against
claims, damages, losses and expenses, whether direct or indirect, including but not limited to attorney's fees, arising out of
or resulting from performance of Consultant's work under this agreement. Indemnification of Consultant by Client shall include
any claim of product liability and/or imperfections or defects in said product.

 

	Consulting
    Services Agreement – EXEO – Page 3	Initials	 	 		 

 

    	 

    	 

    

 

 

		Section VI.	TERMINATION

 

1.            Either party to this Agreement
shall have the right to terminate the Agreement at any time by giving written notice to the other party in accordance with Section
VI herein. If Client exercises this right, Consultant shall immediately upon receipt of written notice cease all services in progress
and invoice for all work performed and expenses incurred up to and including the notice date. Client shall make payment of the
final invoice amount on the basis set forth in Section II herein. Upon payment in full by Client of all invoiced amounts, Consultant
shall deliver to Client the results of all services performed to date, together with copies of drawings, specifications, and other
documents as Client may have furnished to Consultant for use in connection with the services.

 

		Section VII.	NOTICES

 

1.            Any notice required or
permitted to be given hereunder shall be hand-delivered or sent by registered mail to Client and Consultant at their respective
addresses shown below. Any such notice delivered as aforesaid shall be deemed to have been received by the party to whom it is
addressed on the date and at the time it is so delivered, and any notice mailed as aforesaid shall be deemed to have been received
by the party to whom it is addressed the fifth day following the date of the mailing. All addresses for service of notices
shall be street addresses and not post office boxes. The addresses for service of any notices and reports hereunder
to and/or by the Consultant and the Client shall be respectively as follows:

 

	CONSULTANT	CLIENT
	 	 
	Markel Enterprises LLC	Exeo Entertainment, Inc.
	45885 Verba Santa Drive	4478 Wagon Trail Ave
	Palm Desert, CA 92260	Las Vegas, NV 89118
	Attention: Jeff Kelsoe	Attention: Jeff Weiland

 

IN WITNESS WHEREOF, the parties
hereto have duly executed this Agreement as of the day and year written above.

 

 

	Consulting
    Services Agreement – EXEO – Page 4	Initials	 	 	 	 

 

    	 

    	 

    

 

 

ATTACHMENT
"A" 

CONSULTING
SERVICES AGREEMENT

 

Attachment to Consulting Services
Agreement by and between Markel Enterprises LLC and Exeo Entertainment, Inc. for project known as Zaaz Keyboards

 

SCOPE OF
WORK

 

Consultant shall perform the
work specifically outlined below and any additional work authorized by subsequent addenda.

 

	 	Description of Work	Est Hours	Time Frame

(days)
	1	Define the specifications for each keyboard design. Research manufacturing capabilities. Work with Asia sources to get samples and specifications of various keyboards and touch screen modules.	16	14
	2	Create initial computer models reflecting selected design concepts.	8	7
	3	Preliminary 3D models. Models to be suitable for injection molding. At this point, all major components will be finalized.	16	14
	5	First round of SLA prototypes – to check form and function. Includes prototypes for both design concepts. Work with Asia sources to build prototype circuit boards and modules.	8	21
	6	Revise 3D models – based on information from SLA's and input from client	8	7
	7	Second round of SLA prototypes – only needed if revisions above indicate need for same.	4	10
	8	Finalize 3D models and send files to factory for initial production run.	8	7
	 	 	 	 
	 	TOTAL HOURS	68	80
	 	 	 	 
	 	ESTIMATED FEES for above services: 68 hours @ $120	$  8160.00

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