Document:

exhibit10.5

EXHIBIT 10.5

Tan Teng Chong Consulting Services Agreement

Consulting Services Agreement

This agreement is made on December 27, 2006 by and between Asia Payment Systems, Inc., a Nevada corporation (“Asia Pay”) with its principal offices at 800 5th Avenue, Ste.4100, Seattle, WA. 98104 and Tan Teng Chong (“TAN”) with an address at No. 768, Xietu Road Floor 18A, Shanghai 200233, China.

Witnesseth

WHEREAS, Asia Pay requires expertise and assistance in the area of business development and marketing in China and Southeast Asia to support its business and growth;

WHEREAS, TAN has substantial contacts among the business community and has business development and business planning expertise with respect to the China market, and desires to act as a consultant to provide business advisory services;

NOW, THEREFORE, in consideration of the premise and the mutual promises and covenants contained herein and subject specifically to the conditions hereof, and intending to be legally bound thereby, the parties agree as follows:

	1.      	
Certain Definitions - When used in this Agreement, the following terms shall have the meanings set forth below:

	 
	 	1.1      	
Affiliate - any persons or entities controlled by a party.

	 
	 	1.2      	
Asia Pay – Asia Payment Systems, Inc. or it subsidiaries which use the services of TAN.

	 
	 	1.3      	
Asia Pay Clients - the Asia Pay's clients who use the services of TAN.

	 
	 	1.4      	
Contact Person - the person who shall be primarily responsible for carrying out the duties of the parties hereunder. Asia Pay and TAN shall each appoint Contact Persons to be responsible for their respective duties. In the event that one party gives notice to the other party in writing that, in their reasonable opinion, the other party's Contact Person is not able to fulfill their duties and responsibilities hereunder, both parties shall mutually agree upon a replacement Contact Person within 10 days of the said notice.

 

	 	1.5      	
Extraordinary Expenses - expenses that are beyond those expenses that are usual, regular, or customary in the conduct of in-house activities in fulfillment of the scope of this agreement.

	 
	 	1.6      	
Equity- cash, securities or liquid assets, specifically excluding real property.

	 
	 	1.7      	
Payment or Payable in kind - distribution of the proceeds of a transaction in the same type and form as was given as valuable consideration for the transaction.

	 
	2.      	
Contact Persons. The Contact Person for Asia Pay is Robert Clarke, Chairman. The Contact Person for TAN is TC Tan.

	 
	3.      	
Services to be rendered by TAN. Services to be rendered, on a best efforts basis, by TAN are as follows:

	 
	 	3.1      	
Advice and Counsel, Business Planning. TAN will provide advice and counsel regarding Asia Pay's entry into the Shanghai and other regional markets in China; strategic and business planning for the China market; strategy and negotiations, including corporate partners and other business development transactions.

	 
	 	3.2      	
Business Development Intelligence. TAN has access to information on business developments in this field and will monitor and react to sensitive market information on a timely basis and provide advice and counsel and intelligence to Asia Pay in a timely fashion. Asia Pay understands that some of this information is available from other sources but acknowledges that TAN can provide it in a more timely fashion and with substantial value-added interpretation of such information. The foregoing notwithstanding, no information will be provided to Asia Pay with respect to the activities of any other TAN customers or customer accounts without such customer's prior written consent.

	 
	 	3.4      	
Asia Pay and/or Asia Pay Client Transaction Due Diligence. TAN will undertake due diligence on all proposed business development transactions affecting the Asia Pay, of which TAN is notified in writing in advance.

	 
	 	3.5      	
Additional Duties. Asia Pay and TAN shall mutually agree upon any additional duties, which TAN may provide for compensation paid or payable by Asia Pay under this Agreement.

	 

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	 	3.6      	
Best Efforts. TAN shall devote such time and best efforts to the affairs of Asia Pay as are reasonable and adequate to render the consulting services contemplated by this agreement. TAN is not responsible for the performance of any services which may be rendered hereunder without the Asia Pay providing the necessary information in writing prior thereto. It is understood that a portion of the compensation to be paid hereunder is being paid hereunder by Asia Pay to have TAN remain available to assist with transactions on an as-needed basis.

	 
	4.      	
Compensation to TAN.

	 
	 	4.1      	
Grant of options. Asia Pay shall grant to TAN, at the signing of this contract, stock options on four hundred thousand (400,000) fully registered free trading shares at a price of $0.001 per share, which will vest at the date of the signing of the contact and which, between the parties, will have a deemed value of $40,000:

	 
	 	4.2      	
Additional Fees. Asia Pay and TAN shall mutually agree upon any additional fees, which Asia Pay may pay in the future for services rendered by TAN under this Agreement.

	 
	 	4.3     	
Extraordinary Expenses. Extraordinary expenses shall be submitted by TAN to Asia Pay for approval prior to expenditure and shall be paid by Asia Pay, within ten (10) business days of receipt of TAN’s request for payment.

	 

	5.      	
Indemnification. The Asia Pay agrees to indemnify and hold harmless TAN and his employees against any and all liability, loss and costs, expenses or damages, including but not limited to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever or howsoever caused by reason of any injury (whether to body, property, personal or business character or reputation) sustained by any person or to any person or property by reason of any act, neglect, default or omission, or any untrue or alleged untrue statement of a material fact, or any misrepresentation of any material fact or any breach of any material warranty or covenant as the Asia Pay or any of its agents, employees, or other representatives arising out of, or in relation to, this Agreement. Nothing herein is intended to nor shall it relieve either party from liability for its own act, omission or negligence. All remedies provided by law, or in equity shall be cumulative and not in the alternative.

	 

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TAN agrees to indemnify and hold harmless Asia Pay, each of its officers, directors, employees and each person, if any, who controls Asia Pay against any and all liability, loss and costs, expenses or damages, including but not limited to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever or howsoever caused by reason of any injury (whether to body, property, personal or business character or reputation) sustained by any person or to any person or property by reason of any act, neglect, default or omission, or any untrue or alleged untrue statement of a material fact, or any misrepresentation of any material fact or any breach of any material warranty or covenant as TAN or any of its agents, employees, or other representatives arising out of, or in relation to, this Agreement. Nothing herein is intended to nor shall it relieve either party from liability for its own act, omission or negligence. All remedies provided by law, or in equity shall be cumulative and not in the alternative.

	 
	6.      	
Asia Pay Representations. Asia Pay hereby represents, covenants and warrants to TAN as follows:

	 
	 	6.1      	
Authorization. Asia Pay and its signatories herein have full power and authority to enter into this Agreement and to carry out the transactions contemplated hereby.

	 
	 	6.2      	
No Violation. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby will violate any provision of the charter or by-laws of Asia Pay, or violate any terms of provision of any other Agreement or any statute or law.

	 
	 	6.3      	
Agreement in Full Force and Effect. All contracts, agreements, plans, leases, policies, and licenses referenced herein to which Asia Pay is a party are valid and in full force and effect.

	 
	 	6.4      	
Litigation. Except as set forth below, there is no action, suit, inquiry, proceeding or investigation by or before any court or governmental or other regulatory or administrative agency or commission pending or, to the best knowledge of Asia Pay threatened against or invoking Asia Pay, or which questions or challenges the validity of this Agreement and its subject matter; and Asia Pay does not know or have any reason to know of any valid basis for any such action, proceeding or investigation.

	 
	 	6.5      	
Consents. No consent of any person, other than the signatories hereto, is necessary to the consummation of the transactions contemplated hereby, including, without limitation, consents from parties to loans, contracts, lease or other Agreements and consents from governmental agencies, whether federal, state, or local.

	 

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	 	6.6      	
TAN Reliance. TAN has and will rely upon the documents; instruments and written information furnished to TAN by the Asia Pay's officers or designated employees.

	 
	 	
           A. Asia Pay Materials. All representations and statements provided herein about the Asia Pay are true and complete and accurate to the best 

           of Asia Pay’s knowledge. Asia Pay agrees to indemnify, hold harmless, and defend TAN, at Asia Pay's expense for any proceeding or suit 

           which may raise out of any inaccuracy or incompleteness of any such material or written information supplied to TAN.

	 
	 	
           B. Asia Pay Client and Other Material. Asia Pay warrants that all representation and statements provided, other than that about the Asia 

           Pay, are, to the best of its knowledge, true, complete and accurate.

	 
	7.      	
Confidentiality.

	 
	 	7.1      	
TAN and Asia Pay each agree to provide reasonable security measures to keep information confidential where release may be detrimental to their respective business interests. TAN and Asia Pay shall each require their employees, agents, affiliates, other licensees, and others who will have access to the information through TAN and Asia Pay respectively, to first enter appropriate non-disclosure Agreements requiring the confidentiality contemplated by this Agreement in perpetuity.

	 
	 	7.2      	
TAN will not, either during its engagement by the Asia Pay pursuant to this agreement or at any time thereafter, disclose, use or make known for its or another’s benefit, any confidential information, knowledge, or data of the Asia Pay or any of its affiliates in any way acquired or used by TAN during its engagement by the Asia Pay. Confidential information, knowledge or data of the Asia Pay and its affiliates shall not include any information, which is, or becomes generally available to the public other than as a result of a disclosure by TAN or its representatives.

	 
	8.      	
Miscellaneous Provisions.

	 
	 	8.1      	
Amendment and Modification. This Agreement may be amended, modified and supplemented only by written agreement of TAN and Asia Pay.

	 
	 	8.2      	
Waiver of Compliance. Any failure of TAN, on the one hand, or Asia Pay, on the other, to comply with any obligation, agreement, or condition herein may be expressly waived in writing, but such waiver or failure to insist upon strict compliance with such obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure.

	 

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8.3 Expenses: Transfer Taxes, Etc. Whether or not the transaction(s), if any, contemplated by this Agreement shall be consummated, TAN agrees that all fees and expenses incurred by TAN in connection with this Agreement shall be borne by TAN and Asia Pay agrees that all fees and expenses incurred by Asia Pay in connection with this Agreement shall be borne by Asia Pay, including, without limitation as to TAN or Asia Pay, all fees of counsel and accountants.

8.4 Other Business Opportunities. Except as expressly provided in this Agreement, each party hereto shall have the right independently to engage in and receive full benefits from business activities. In case of business activities which would be competitive with the other party, notice shall be given prior to this Agreement or, if such activities are proposed, within ten (10) days prior to engagement therein. The doctrines of “corporate opportunity” or “business opportunity” shall not be applied to any other activity, venture, or corporation of either party.

8.5 Compliance with Regulatory Agencies. Each party agrees that all actions, direct or indirect, taken by it and it's respective agents, employees and affiliates in connection with this agreement and any financing or underwriting hereunder shall conform to all applicable Federal and State securities laws.

8.6 Notices. Any notices to be given hereunder by any party to the other may be effected by personal delivery in writing or in by mail, registered or certified, postage prepaid with return receipt requested. Mailed notices shall be addressed to the “Contact Person” at the addresses appearing in the introductory paragraph of this Agreement, but any party may change his address by written notice in accordance with this subsection. Notices delivered personally shall be deemed communicated as of actual receipt; mailed notices shall be deemed communicated as of five (5) days after mailing.

8.7 Assignment. This agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns, but neither this Agreement nor any right, interest or obligations hereunder will be assigned by any of the parties hereto without the prior written consent of the other parties, except by operation of law.

8.8 Delegation. Neither party shall delegate the performance of its duties under this agreement without the prior written consent of the other party.

 

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8.9 Publicity. Neither TAN nor Asia Pay shall make or issue, or cause to be made or issued, any announcement or written statement concerning this Agreement or the transaction contemplated hereby for dissemination to the general public without the prior consent of the other party. This provision shall not apply, however, to any announcement or written statement required to be made by law or the regulations of any Federal or State governmental agency, except that the party concerning the timing and consent of such announcement before such announcement is made.

8.10 Governing Law. This Agreement and the legal relations among the parties hereto shall be governed by and construed in accordance with the laws of Hong Kong, without regard to its conflict of law doctrine.

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

8.12 Headings. The heading of the sections of this Agreement are inserted for convenience only and shall not constitute a part hereto or affect in any way the meaning or interpretation of this Agreement.

8.13 Entire Agreement. This Agreement, including any Exhibits hereto, and the other documents and certificates delivered pursuant to the terms hereto, sets forth the entire Agreement and understanding of the parties hereto in respect of the subject matter contained herein, and supersedes all prior agreements, promise, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party hereto.

8.14 Third Parties. Except as specifically set forth or referred to herein, nothing herein expressed or implied is intended or shall be construed to confer upon or give to any person or corporation other than the parties hereto and their successors or assigns, any rights or remedies under or by reason of this Agreement.

8.15 Attorneys’ Fees and Costs. If any action is necessary to enforce and collect upon the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees and costs, in addition to any other relief to which that party may be entitled. This provision shall be construed as applicable to the entire Agreement.

8.16 Survivability. If any part of this Agreement is found, or deemed by a court of competent jurisdiction to be invalid or unenforceable, that part shall be severable from the remainder of the Agreement.

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8.17 Further Assurances. Each of the parties agrees that it shall from time-to- time take such actions and execute such additional instruments as may be reasonably necessary or convenient to implement and carry out the intent and purpose of this Agreement.

	 
	 	
8.18 Right to Data After Termination. After termination of this Agreement each party shall be entitled to copies of all information acquired hereunder as of the date of termination and not previously furnished to it.

	 
	 	
8.19 Relationship of the Parties. Nothing contained in this Agreement shall be deemed to constitute either party to become the partner of the other, the agent or legal representative of the other, nor create any fiduciary relationship between them, except as otherwise expressly provided herein. It is not the intention of the parties to create nor shall this Agreement be construed to create any commercial relationship or other partnership. Neither party shall have any authority to act for or to assume any obligation or responsibility on behalf of the other party, except as otherwise expressly provided herein. The rights, duties, obligations and liabilities of the parties shall be separate, not joint or collective. Each party shall be responsible only for its obligations as herein set out and shall be liable only for its share of the costs and expenses as provided herein.

	 
	 	
8.20 No Authority to Obligate the Asia Pay. Without the consent of the Board of Directors of the Asia Pay, TAN shall have no authority to take, nor shall he take, any action committing or obligating the Asia Pay in any manner, and it shall not represent himself to others as having such authority.

	 
	9.      	
Arbitration. WITH RESPECT TO THE ARBITRATION OF ANY DISPUTE, THE UNDERSIGNED HEREBY ACKNOWLEDGE THAT:

	 
	 	A.      	
ARBITRATION IS FINAL AND BINDING ON THE PARTIES;

	 
	 	B.      	
THE PARTIES ARE WAIVING THEIR RIGHT TO SEEK REMEDY IN COURT, INCLUDING THEIR RIGHT TO JURY TRIAL;

	 
	 	C.      	
PRE-ARBITRATION DISCOVERY IS GENERALLY MORE LIMITED AND DIFFERENT FROM COURT PROCEEDING;

	 
	 	D.      	
THE ARBITRATOR’S AWARD IS NOT REQUIRED TO INCLUDE FACTUAL FINDINGS OR LEGAL REASONING AND ANY PARTY’S RIGHT OF APPEAL OR TO SEEK MODIFICATION OF RULING BY THE ARBITRATORS IS STRICTLY LIMITED;

	 
	 	E.      	
THE PANEL OF ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS WHO WERE OR ARE AFFILIATED WITH THE PAYMENTS INDUSTRY; AND

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F. THIS ARBITRATION AGREEMENT IS SPECIFICALLY INTENDED TO INCLUDE ANY AND ALL STATUTORY CLAIMS WHICH MIGHT BE ASSERTED BY ANY PARTY.

G. ALL DISPUTES, CONTROVERSIES, OR DIFFERENCES BETWEEN THE ASIA PAY, TAN OR ANY OF THEIR OFFICERS, DIRECTORS, LEGAL REPRESENTATIVES, ATTORNEYS, ACCOUNTANTS, AGENTS OR EMPLOYEES, OR ANY CUSTOMER OR OTHER PERSON OR ENTITY, ARISING OUT OF, IN CONNECTION WITH OR AS A RESULT OF THIS AGREEMENT, SHALL BE RESOLVED THROUGH ARBITRATION RATHER THAN THROUGH LITIGATION.

H. THE UNDERSIGNED HEREBY AGREES TO SUBMIT THE DISPUTE FOR RESOLUTION WITHIN FIVE (5) DAYS AFTER RECEIVING A WRITTEN REQUEST TO DO SO FROM ANY OF THE AFORESAID PARTIES.

I. IF ANY PARTY FAILS TO SUBMIT THE DISPUTE TO ARBITRATION ON REQUEST, THEN THE REQUESTING PARTY MAY COMMENCE AN ARBITRATION PROCEEDING, BUT IS UNDER NO OBLIGATION TO DO SO.

J. ANY HEARING SCHEDULED AFTER ARBITRATION IS INITIATED SHALL TAKE PLACE IN HONG KONG.

K. IF ANY PARTY SHALL INSTITUTE ANY COURT PROCEEDING IN AN EFFORT TO RESIST ARBITRATION AND BE UNSUCCESSFUL IN RESISTING ARBITRATION OR SHALL UNSUCCESSFULLY CONTEST THE JURISDICTION OF ANY ARBITRATION FORUM, OVER ANY MATTER WHICH IS THE SUBJECT OF THIS AGREEMENT, THE PREVAILING PARTY SHALL BE ENTITLED TO RECOVER FROM THE LOSING PARTY ITS LEGAL FEES AND ANY OUT-OF-POCKET EXPENSES INCURRED IN CONNECTION WITH THE DEFENSE OF SUCH LEGAL PROCEEDING OR ITS EFFORTS TO ENFORCE ITS RIGHTS TO ARBITRATION AS PROVIDED FOR HEREIN.

L. EACH PARTY WILL SIGN ANY REQUIRED OR APPLICABLE PAPERWORK AT THE TIME ANY DISPUTE IS SUBMITTED FOR ARBITRATION.

M. THE PARTIES SHALL ACCEPT THE DECISION OF ANY AWARD AS BEING FINAL AND CONCLUSIVE AND AGREE TO ABIDE THEREBY.

N. ANY DECISION MAY BE FILED WITH ANY COURT AS A BASIS FOR JUDGMENT AND EXECUTION FOR COLLECTION.

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	     	10.     	
Term of Agreement and Termination. This Agreement shall be effective upon execution, shall continue for one year.

		 

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

	ASIA PAY: Asia Payment Systems, Inc. 
	 
	 
	                                     
	By:    ROBERT CLARKE
	          Robert Clarke, Chairman
	 
	TAN: 
	                                         
	By:    TAN TENG CHONG
	          Tan Teng Chong (TC Tan)

 

 

 

 

 

 

 

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EXHIBIT 10.6

Target IR LLC Delaware Limited Consulting Services Agreement

CONSULTING SERVICES AGREEMENT

     THIS CONSULTING SERVICES AGREEMENT (the "Agreement") is effective as of the 20th day of December 2006 by and between Asia Payment Systems (the "Company"), and Target IR LLC Delaware limited liability company with principal offices at 439 Grand Avenue, Suite 188 Bigfork, MT 59911 (the “Consultant”). The Company and Consultant shall be jointly termed as the “Parties” in this Agreement.

WHEREAS:

	         	          	A.      	
The Company warrants and represents that it seeks to engage Consultant to provide certain consulting services to the Company.

			 
			B.      	
The Company warrants and represents that it is familiar with Consultant and Consultant’s services and capabilities and has had sufficient opportunity to review and evaluate how Consultant’s consulting services may be able to assist the Company achieve its objectives.

			 
			C.      	
The Company warrants and represents that it understands its responsibilities as a public company with respect to its periodic filings with the U.S.

			 
			 	
Securities and Exchange Commission (if any), press releases, and other disclosures and the obligations to ensure that all of its public disclosures are accurate and complete.

			 
			D.      	
Subject to the terms and conditions of this Agreement, Consultant is willing to provide certain consulting services to the Company in exchange for Consultant’s receipt of certain restricted shares of the Company’s common stock from the Company.

			 

NOW THEREFORE THE PARTIES AGREE AS FOLLOWS:

1.0   Description of Consulting Services. In consideration for the Company’s issuance of the restricted shares of the Company’s Common Stock (the “Shares” or “Fee”) to Consultant in accordance with Section 3.0 of this Agreement, Consultant agrees to provide, during the term of this Agreement and subject to the Company satisfying its obligations as provided by Section 2.0 of this Agreement, the following consulting services on a best efforts basis: 

	       	1.1      	
Prepare a company profile and/or executive summary describing the Company and its current and future prospects (the “Profile”);

		 

	         	1.2      	
Distribute the Profile, via First Class U.S. Mail to NOBO-listed shareholders and provide return telephone call contacts with said shareholders on a as-needed basis;

		 
		1.3      	
Distribute the Profile, via email, to Consultant’s proprietary database and to provide additional information to all persons listed in said database on a as-needed basis;

		 
		1.4      	
Distribute the Profile to an “opt” in email database of Accredited Investors (as the latter term is defined under Rule 501(a)(1) of the Securities Act of 1933;

		 
		1.5      	
Respond to in-coming telephone and any other inquiries received about the Company, the Profile, and related matters;

		 
		1.6      	
Provide a telephone contact campaign to contact persons listed in Consultant’s proprietary database and provide such persons with information from the Profile;

		 
		1.7      	
Assist and develop interest on the part of NASD-registered broker-dealers who may be able to develop additional retail market interest in the Company, its common stock, and the Company’s future prospects;

		 
		1.8      	
Assist investors in identifying appropriate NASD-registered broker- dealers to receive and process new accounts and transactions for the purchase and sale of the Company’s common stock so as to assist the Company in establishing a more significant market presence for its common stock;

		 
		1.9      	
Assist the Company, as requested, in identifying one or more potential merger or acquisition candidates;

		 
		1.10      	
Introduce the Company to NASD-registered broker-dealers who may have an interest in market-making opportunities, retail investment opportunities, and other related opportunities;

		 
		1.11      	
Assist the Company in evaluating opportunities to enhance the Company’s capital structure and financing opportunities;

		 
		1.12      	
Introduce the Company, if appropriate, to one or more NYSE-registered firms for evaluation of the commercial viability of the Company’s business plan, financial projections, and business model;

		 

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	 	1.13      	
Introduce the Company to one or more micro-cap institutional fund portfolio managers for the purpose of evaluating the Company’s securities and related investment opportunities;

	 
	 	1.14      	
Arrange for the Company to meet telephonically or in-person, as appropriate with one or more NYSE-registered firms in connection with an undertaking for bridge financing, mezzanine financing, private placements, and secondary public offerings, as deemed appropriate in view of the Company’s financial circumstances and current market conditions; and

	 
	 	1.15      	
Include the Company and any additional descriptive information deemed appropriate, on Consultant’s web site.

	 
	2.0      	
Non-Financial Obligations of the Company.

	 
	 	2.01      	
Initial Non-Financial Obligations of the Company. The Company agrees that at all times during the term of this Agreement, the Company shall continually provide Consultant with an accurate and complete disclosure of its current and prospective business, financial, and operating affairs together with true and accurate copies of all documents and information related thereto. To that end, the Company shall, at the inception of this Agreement, provide Consultant with a copy of the documents listed on Exhibit A attached hereto and incorporated by reference herein.

	 
	 	2.02      	
Continuing Non-Financial Obligations of the Company. In addition and throughout the term of this Agreement, the Company shall provide Consultant with true and accurate copies of all documents and information relating to all changes to its business plan, financial projections, and other internal projections, plans, and schedules together with all material contracts, agreements, understandings, commitments, both oral and written, relating to or involving the Company, its subsidiaries or affiliates.

	 
	 	 	
The Company shall also promptly and without delay, continue throughout the term of this Agreement, to update and correct all previously disclosed information and documents previously delivered to Consultant. The Parties hereto agree that the scope of the Company’s obligations under this Section 2.0 of this Agreement shall be broadly construed to ensure that all said information and documents provided to Consultant by the Company are and at all times remain accurate and complete.

	 
	 	2.03      	
Obligations RE: Information and Documents Provided Consultant. The Company shall assume full responsibility to promptly and continually review and evaluate the accuracy and completeness of the Profile and all documents and information provided by the Company, developed by Consultant, or otherwise used by Consultant (collectively, as “Disclosure Information”). For purposes of this Section 2.03 of this Agreement, Disclosure Information shall include all documents and information

	 

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received by Consultant: (1) from personal meetings with any officer, director, employee, or agent of the Company (including, but not limited to, the Company’s legal counsel, accounting firms, audit firms, financial advisors, etc.); (2) via U.S. Mail; (3) via email from the Company , its officers, directors, employees, or agents; and (4) any information developed or used by Consultant if Consultant has received the Company’s prior written approval ( via U.S. Mail or by email). Consultant shall, upon completion of the preparation of the Profile, remit a copy of the Profile to the Company for its review and evaluation. Upon receipt, the Company shall promptly and within three (3) business days, review and provide Consultant with proposed changes and/or revisions to the Profile to ensure that the representations and statements made in the Profile accurately and fully discloses the Company, the Company’s business, financial, and operating affairs without any material misstatement or omission of material fact. In the event that Consultant receives proposed changes and/or revisions to the Profile (or any other document) from the Company, Consultant shall, within three (3) business days, promptly re-submit a revised Profile (or any other document) incorporating the changes and/or revisions proposed by the Company and the Parties agree to repeat the steps described in this Section 2.03 until the Company and Consultant are each satisfied that the Profile is accurate and complete. The Parties hereto agree that the process envisioned by this Section 2.03 of this Agreement involving the exchange of the Profile shall be followed throughout the term of this Agreement and shall be repeated, as necessary, until Consultant deems that the information and documents it receives from the Company are accurate and complete.

3.0  Fee to be Paid to Consultant. In consideration for the services to be rendered by Consultant as described in Section 1.0 of this Agreement together with other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company shall cause Consultant to receive One Million (1,000,000) shares of the Company’s Common Stock (the Shares”) and the Company shall further:

	           	3.01      	
Deliver Two or more stock certificates representing the Shares to Consultant (the “Certificate(s)”) within ten (10) calendar days from the date of this Agreement;

		 
		3.02      	
Deliver a true and accurate photocopy of the Board of Directors’ resolution duly adopted by the Company’s Board of Directors authorizing and approving this Agreement;

		 
		3.03      	
Deliver the Certificate(s) to Consultant (or any person designated by Consultant) via overnight express mail, postage prepaid, or via similar overnight express delivery at no cost to Consultant.

		 

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	 	3.04      	
If requested, Consultant agrees to execute an investment questionnaire and an investment agreement as is customary for the issuance of the Shares in transactions similar to the transactions contemplated by this Agreement and the said investment agreement shall not be held or interpreted so as to contradict or contravene this Agreement or the obligations recited herein in any way.

	 
	4.0      	
Representations of the Company. The Company warrants and represents that:

	 
	 	4.01      	
Organization, Qualification, and Corporate Power. The Company is a corporation duly organized, validly existing, and in good standing under the laws of the jurisdiction of its incorporation. The Company has full corporate power and authority to enter into this Agreement and to render all performances set forth in this Agreement.

	 
	 	4.02      	
Capitalization. The Shares to be issued to Consultant shall be duly issued from the authorized capital stock of the Company. All of the Shares will be, upon issuance and delivery to Consultant, shares of the Company’s Common Stock that have been duly authorized, validly issued, fully paid, and non-assessable. There are no outstanding or authorized options, warrants, purchase rights, subscription rights, or other contracts or commitments that are or will be with the passage of time, a lien or encumbrance upon the Shares.

	 
	 	4.03      	
Non-contravention. Neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (i) violate any injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to which of the Company is subject or any provision of the charter or bylaws of the Company or (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which the Company is a party or by which it is bound or to which any of its assets is subject. Except for any filing required by applicable state securities laws, the Company does not need to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency to consummate the transactions contemplated by this Agreement.

			 
		4.04	
Brokers' Fees. The Company has no liability or obligation to pay any fees or commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement.

	 

 

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	         	4.05      	
Issuance of the Shares. All of the Shares shall be issued pursuant to one or more duly adopted resolutions or consents approved by the Company’s Board of Directors in accordance with the requirements of the corporations code of the state in which the Company is domiciled and pursuant to the exemptions provided by the 1933 Act and all applicable state securities laws.

		 
		4.06      	
Status of the Shares. All of the Shares shall bear a restricted securities legend in accordance with the requirements of the 1933 Act and in all other respects the Shares shall be free of any claims, interests, or charges of any third party. All of the Shares shall be issued by the Company pursuant to and in conformity with the 1933 Act. The Company shall pay and assume all costs incurred in complying with state and federal securities laws.

		 
		4.07      	
Cooperation RE: Any Future Re-Sale of Shares. If, following the issuance of the Shares to Consultant hereunder, Consultant later elects to effect a public re-sale of the Shares (in one or more such transactions) pursuant to the holding period requirements of Rule 144 of the 1933 Act (the “144 Re-Sale”), Consultant shall deliver to the Company: (i) a notice of intention to effect a public re-sale in accordance with Rule 144 of the 1933 Act, (ii) a copy of the Form 144 filed by Consultant with the U. S. Securities and Exchange Commission (if then required by Rule 144); (iii) a copy of a customary “broker’s representation letter” as completed and executed by Consultant’s broker (if then required by Rule 144); and (iv) any other customary documents then required by Rule 144 of the 1933 Act (collectively, the “Documents”). Within three (3) business days (the “Response Period”) after receipt of the Documents, the Company and the Company’s legal counsel shall issue instructions to the Company’s stock transfer agent instructing said stock transfer agent to effect the 144 Re-Sale as requested by Consultant and Consultant’s stock broker. In addition, the Company agrees that it shall cooperate and assist Consultant in all such matters and the Parties acknowledge and agree that time is and will be at all times “of the essence” in all such 144 Re-Sale transactions. Similarly and in the event that Consultant should later elect to effect a private re-sale or private transfer of the Shares (in one or more such transactions), the Company and its legal counsel shall, on the same basis and subject to the Company’s receipt of customary documents used in connection with private re-sales of restricted stock under the 1933 Act and subject to Consultant’s adherence to the requirements of the 1933 Act, issue instructions to the Company’s stock transfer agent (within the Response Period) instructing said stock transfer agent to effect any such private re-sales as requested by Consultant within the Response Period following receipt of customary documentation provided by Consultant and Consultant’s transferee. In the event that the Company believes or has reason to believe that any Documents or said documentation is deficient to support any sale or transfer of the Shares (in any public re-sale or private re-sale transaction) the Company shall, by telecopier, promptly and within the Response Period inform Consultant of any said deficiencies with particularity and identifying each and every deficiency within the Response Period. The Company shall undertake all acts required to effect the

		 

 

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purposes of this Section 4.07 (including, but not limited to, the payment of any legal fees to its legal counsel for the issuance of any instructions or opinion to the Company’s stock transfer agent and any costs or fees charged by the Company’s stock transfer agent) at no cost, expense, or liability to Consultant. The Company agrees that it is familiar with and understands the customary documents used in connection with Rule 144 and private re-sales of restricted securities under the 1933 Act. However, notwithstanding the terms of this Section 4.07, Consultant shall be solely responsible for all fees, commissions, or other costs paid to Consultant’s stock broker.

5.0 Responsibility for Expenses. Consultant agrees that all costs and expenses incurred by Consultant in connection with the consulting services provided to the Company under this Agreement shall be and remain the sole responsibility of Consultant.

6.0 Status of Consultant. Consultant shall render all consulting services to the Company solely as an independent consultant and not as an employee of the Company. Consultant agrees to be responsible for all state and federal income and capital gains taxes that may be incurred in connection with the Fee paid by the Company hereunder.

7.0 Non-Disclosure/Non-Circumvention. The Company agrees that the identities, names, and information of the individuals, institutions, and entities identified or introduced by Consultant to the Company represent confidential information ("Confidential Information"). The Company agrees not to disclose any Confidential Information to any third party without the express written consent of Consultant. The Company further agrees not to circumvent or attempt to circumvent its obligations to Consultant under this Agreement or otherwise take any action which would result in any diversion or avoidance of its obligations hereunder. The parties agree that the term "obligations" shall be broadly construed.

8.0 Term of Agreement. The initial term of this Agreement shall be one (1) year from and after the date first written above but this Agreement may be extended for one or more additional terms, as may be determined by the Parties provided that a written memorandum is executed by both Parties agreeing to the extension of this Agreement.

9.0 Additional Obligations of the Company. The Company shall cooperate with Consultant and provide Consultant with copies of accurate and complete business plans, financial statements, financial projections, reports, correspondence, agreements, commitments, and all other documents and oral and written information as reasonably requested by Consultant in a timely manner. Consultant shall have the right to use and distribute all such information as Consultant solely determines unless the Company reasonably requests that the information or said documents be kept confidential in light of applicable provisions, rules, and regulations of the 1933 Act and applicable state securities laws. The Company further agrees to indemnify and hold Consultant from and against all liability, expenses, costs (including reasonable legal fees, costs, and disbursements) incurred by Consultant in connection with any claim or assertion that the information and documents received from the Company or approved by the Company, contain any material misstatement or omission of material fact.

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	10.0      	
Miscellaneous.

	 
	 	
10.01 Successors. The provisions of this Agreement shall be deemed to obligate, extend to, and inure to the benefit of the successors of each of the parties to this Agreement. All of the parties to this Agreement agree to adhere to all applicable state and federal securities laws.

		 
		
10.02 Integration. This Agreement, after full execution, acknowledgment and delivery, memorializes and constitutes the entire agreement and understanding between the parties and supersedes and replaces all prior negotiations and agreements of the parties, whether written or unwritten, or related thereto regarding the consulting services to be rendered by Consultant to the Company.

		 
		
10.03 Attorneys Fees. In the event of a dispute between the parties concerning the enforcement or interpretation of this Agreement, the prevailing party in such dispute, whether by legal proceedings or otherwise, shall be reimbursed immediately for the reasonably incurred attorneys' fees and other costs and expenses by the other parties to the dispute.

		 
		
10.04 Captions. The captions by which the sections and subsections of this Agreement are identified are for convenience only, and shall have no effect whatsoever upon its interpretation.

		 
		
10.05 Amendments. No amendment to this Agreement shall be effective unless the same shall be in writing executed by the party against whom enforcement is sought.

		 
		10.06 Severance. If any provision of this Agreement is held to be illegal or invalid by a court of competent jurisdiction, such provision shall be deemed to be severed and deleted; and neither such provision, nor its severance and deletion, shall affect the validity of the remaining provisions.
		 
		
10.07 Counterparts. This Agreement may be executed in any number of counterparts.

	 

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10.08 Survival. All of the warranties and representations contained in this Agreement (including those recited on the first page of this Agreement) shall survive the execution of this Agreement and the performance of any obligations contemplated by this Agreement for a period of five (5) years following the first anniversary of the date of this Agreement.

10.09 Power to Bind. A responsible officer of the Company has read and understands the contents of this Agreement and is empowered and duly authorized on behalf of the Company to execute it.

10.10 Arbitration. Any dispute or claim arising to or in any way related to this Agreement shall be settled by arbitration in San Diego, California. All arbitration shall be conducted in accordance with the rules and regulations of the American Arbitration Association ("AAA"). Each party shall pay its own expenses associated with such arbitration (except as set forth in Section 10.4 Above). A demand for arbitration shall be made within a reasonable time after the claim, dispute or other matter has arisen and in no event shall such demand be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statutes of limitations. The decision of the arbitrator shall be binding upon the parties and judgment in accordance with that decision may be entered in any court having jurisdiction thereof.

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     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set
forth above. 

FOR THE COMPANY:

By: ROBERT G. CLARKE 

Its: Director

FOR CONSULTANT:

By:
BARRY CLARKE

Its: Managing Director

 

[SIGNATURE PAGE TO CONSULTING SERVICES AGREEMENT.]

 

 

 

 

 

 

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