Document:

drsv_ex101.htm

EXHIBIT 10.1

 

CONSULTING AGREEMENT

 

THIS AGREEMENT is entered into on this 25th day of March, 2014 (the “Effective Date”) by and between RC Healthcare Consulting, LLC, a New York limited liability company with an office located at 22 Saw Mill River Road, Second Floor, Hawthorne, New York 10532 (hereinafter the “Consultant”) and Debt Resolve, Inc., a corporation with offices at 1133 Westchester Avenue, Suite S-223, White Plains, NY 10604 (hereinafter the “Company”).

 

 W I T N E S S E T H

 

WHEREAS, Consultant has career experience in the field of accounts receivable management and medical billing, among others; and

 

WHEREAS, the Company desires to utilize the services of Consultant as a consultant to assist the Company in the areas of sales, marketing and operations;

 

NOW, THEREFORE, in consideration of the premises and of the mutual promises and covenants hereinafter set forth, the parties hereto agree as follows:

 

	
1.  

	
Consultant shall serve as advisor and consultant to the Company in the field of sales, marketing and operations. Consultant shall perform services hereunder for the mutually agreed hours per week. Consultant shall perform the services at the location of his choice. Consultant shall work in conjunction with and report his activities to the Company’s CEO, Stan Freimuth.

 

	
2.  

	
Consultant is an independent contractor, not an employee and not an officer of the Company or any company affiliated with the Company. Neither party shall have the right to bind the other to any contract or other obligation without the other party’s express written consent.

 

	
3.  

	
The term of this Agreement shall commence as of the Effective Date, and shall continue for a three (3) year period with automatic renewal for additional one (1) year periods on the anniversary of the Effective Date unless either party provides written notice of non-continuance in accordance with Section 12 of this Agreement to the other party to this Agreement at least 120 days prior to the expiration of such one year renewal period. It is the intent of the parties that this agreement shall remain in full force and effect during the initial three year period in order to ensure that Consultant shall have a reasonable period within which to reach the revenue benchmarks contained in this agreement. The Company acknowledges and agrees that any and all options issued to Consultant pursuant to Section 4 of this Agreement shall immediately vest and be exercisable by the Consultant upon the occurrence of either of the following: (a) wrongful termination of this agreement by Company during the initial three year period; or (b) a Change in Control of the Company, as such term is defined in SEC rules.

 

  

1

  

 

	
4.  

	
The Company agrees to pay the Consultant as follows:

 

	
a)  

	
Upon the Effective Date, the Company shall grant to Consultant a non-qualified stock option to purchase 500,000 shares of the Company’s common stock at an exercise price equal to the then fair market value of the Company’s common stock on the date of grant, which option shall be immediately exercisable by the Consultant for a period of five years from the date of grant.

 

	
b)  

	
Upon the Company reaching $12,500 per month of new revenue generated by Consultant’s activities as averaged over three consecutive months, the Company shall grant to Consultant a further non-qualified stock option grant to purchase 250,000 shares of the Company’s common stock at an exercise price equal to the then fair market value of the Company’s common stock on the date of grant; provided; however, that such exercise price shall in no event exceed $0.05 per share of the Company’s common stock, and which options shall be immediately exercisable by the Consultant for a period of five years from the date of grant.

 

	
c)  

	
Upon the Company reaching $25,000 per month of new revenue generated by Consultant’s activities as averaged over three consecutive months, the Company shall grant to Consultant a further non-qualified stock option grant to purchase 500,000 shares of the Company’s common stock at an exercise price equal to the then fair market value of the Company’s common stock on the date of grant, provided; however, that such exercise price shall in no event exceed $0.05 per share of the Company’s common stock, and which options shall be immediately exercisable by the Consultant for a period of five years from the date of grant.

 

	
d)  

	
Upon the Company reaching $50,000 per month of new revenue generated by Consultant’s activities as averaged over three consecutive months, the Company shall grant to Consultant a further non-qualified stock option grant to purchase 500,000 shares of the Company’s common stock at an exercise price equal to the then fair market value of the Company’s common stock on the date of grant, provided; however, that such exercise price shall in no event exceed $0.05 per share of the Company’s common stock, and which options shall be immediately exercisable by the Consultant for a period of five years from the date of grant.

 

	
e)  

	
Upon the Company reaching $75,000 per month of new revenue generated by Consultant’s activities as averaged over three consecutive months, the Company shall grant to Consultant a further non-qualified stock option grant to purchase 500,000 shares of the Company’s common stock at an exercise price equal to the then fair market value of the Company’s common stock on the date of grant, provided; however, that such exercise price shall in no event exceed $0.05 per share of the Company’s common stock, which options shall be immediately exercisable by the Consultant for a period of five years from the date of grant.

 

  

2

  

 

	
f)  

	
Upon the Company reaching $100,000 per month of new revenue generated by Consultant’s activities as averaged over three consecutive months, the Company shall grant to Consultant a further non-qualified stock option grant to purchase 1,250,000 shares of the Company’s common stock at an exercise price equal to the then fair market value of the Company’s common stock on the date of grant, provided; however, that such exercise price shall in no event exceed $0.05 per share of the Company’s common stock, and which options shall be immediately exercisable by the Consultant for a period of five years from the date of grant.

 

For avoidance of doubt, the total additional options (beyond the grant for joining the Board of the Company) for which the Consultant is eligible upon attainment of all benchmarks is 3,500,000. As stated above, the maximum exercise price of all of the above options shall not exceed $0.05 per share. Consultant shall provide to the Company a running list of all prospects and resulting clients in order to facilitate the award of the above compensation.

 

	
5.  

	
During the term hereof and thereafter, Consultant shall not be entitled to any additional compensation or employee benefits whatsoever, including, but not limited to, compensation or benefits derived from written or oral medical, sickness, accident, insurance, supplementary income, pension, retirement, profit sharing, bonus or incentive compensation plans or practices.

 

	
6.  

	
Any payments made to Consultant pursuant to the Agreement are the sole responsibility of Consultant and Consultant agrees to comply with any laws, rules or regulations applicable to such payments. During the term hereof, the Company shall not be responsible for withholding any local, state or Federal taxes and Consultant agrees to indemnify and hold the Company harmless from any liability that may arise by virtue of the Consultant’s failure to pay any applicable local, state or Federal taxes or other fees.

 

	
7.  

	
Consultant shall keep secret and confidential and shall not directly or indirectly use or assist other to use any confidential information that may be disclosed to him by the Company by reason of his performance of the requested services. This obligation shall not apply to any information that is public knowledge prior to the effective date of this Agreement. Consultant agrees that injunctive relief is an appropriate, but nonexclusive, remedy in the event of any breach of this obligation of confidentiality.

 

  

3

  

 

	
8.  

	
If and whenever the requested services result in any new idea or invention which is conceived and may be patentable or copyrightable, Consultant will promptly advise the Company in writing, making a complete written description and disclosure of it to the Company for filing in the appropriate domestic or foreign government office. Consultant will assign in writing to the Company all such rights to any and all such ideas and inventions and any patent or copyright covering them.

 

Consultant expressly acknowledges that the parties have agreed that all copyrightable aspects of his work product are to be considered “works made for hire” within the meaning of the Copyright Act of 1976, as amended (the “Act”), of which the Company is to be the “author” within the meaning of such ACT. All such copyrightable works, as well as all copies of such works in whatever medium fixed or embodies, shall be owned exclusively by the Company on their creation, and Consultant hereby expressly disclaims any interest in them. In the event (and to the extent) that the Consultant’s work product or any part of element thereof is found as a matter of law not to be a “work made for hire” within the meaning of the Act, Consultant hereby assigns to the Company the sole and exclusive right, title and interest in and to all such works, and all copies of any of them, without further consideration, and agrees to assist the Company to register, and from time to time enforce, all patents, copyrights and other rights and protections relating to such work product in any and all countries. To that end, Consultant agrees to execute and deliver all documents requested by the Company in connection therewith, and irrevocably designates and appoints the Company its agent and attorney-in-fact to act for an in its behalf and stead to execute, register and file any such applications, and to do all other lawfully permitted acts to further the registration, prosecution and issuance of patents, copyrights or similar protections with the same legal force and effect as if executed by Consultant.

 

	
9.  

	
The provisions of Sections 7, 8 and 10 will survive the termination of this Agreement.

 

	
10.  

	
Consultant shall not, without the express prior written consent of the Company, directly or indirectly, during the term of this Agreement and for one (1) year after the expiration of this Agreement, render services of a professional nature to or for any competitor of the Company in the on-line debt auction and resolution industry. Consultant acknowledges and agrees that the restrictions set forth in this Section 11 are reasonable and necessary for the Company to have and enjoy the full benefit of this Agreement and which will not unnecessarily or unreasonably restrict the Consultant’s professional opportunities should this Agreement terminate. In the event that this provision is determined to be unenforceable by a court of competent jurisdiction, the parties agree that this provision shall be deemed to be automatically amended to any lesser area or duration as determined by any court of competent jurisdiction and that the remaining provisions shall be valid and enforceable.

 

	
11.  

	
Any notice under this Agreement shall be deemed given when mailed, in the case of the Company and the Consultant, to their respective addresses set for above or to such other addresses or addressees as either party may subsequently designate by written notice to the other.

 

	
12.  

	
This Agreement contains the full and complete understanding of the parties and supersedes all prior oral and written agreements. This Agreement may not be altered, modified or extended except in writing signed by both parties. This Agreement shall be governed by the laws of the State of New York, without giving effect to choice of law provisions.

 

  

4

  

 

IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first written above.

 

 

	 	 	/s/ Stanley E. Freimuth	 
	 	 	Stanley E. Freimuth	 
	 	 	Chief Executive Officer	 
	 	 	 	 
	AGREED AND ACCEPTED:	 	 	 
	 	 	 	 
	RC Healthcare Consulting, LLC	 	 	 
	 	 	 	 
	By:	/s/ Raymond A. Conta	 	 	 
	 	Raymond A. Conta, Sole Member	 	 	 
	Date: March 25, 2014	 	 	 
	 	 	 	 
	 	 	 	 

 

 

 

 

 

 

5MEMO AUTHORIZING THE CONVERSION OF DEBT

EXHIBIT 10.1

MEMO AUTHORIZING THE CONVERSION OF DEBT

Date: April 25, 2013

To: Mack Leath, Meshugeneh

From: Neal Sessions, SIBE

Re: Conversion of debt obligations

SIBE’s Board of Directors met on the 19th of April and approved the issuances of restricted shares for consideration of the current debt owed to Meshugeneh LLC.  This memo is to serve as a formal agreement between Meshugeneh, LLC and Sibling Group Holdings, Inc. (SIBE), for the conversion of all obligations as of the above date into restricted common stock in SIBE.

Meshugeneh has made various advances on behalf of SIBE and is currently owed approximately $59,376 in total. Meshugeneh hereby agrees to accept 257,040 shares of restricted common stock in full settlement of these obligations. The formula used in determining the shares to be issued is: The full amount owed at the time of the agreement, divided by 110% of the average closing stock price on the ten (10) days prior to the agreement to convert. In this case the average closing price, using data from Yahoo finance is $.21 per share. Therefore, the share price used in determining the shares to be issued is $.231, which is 110% of that amount.

All parties agree that any discrepancy in the dollars actual owed will be made after the completion of the 2013 audit and deducted from future advances if necessary. The amounts shall be verified, but in general, consist of the following:

A DETAIL OF THE SHARE PRICE CALCUALTION AND AMOUNTS OWED FOLLOW

Agreed to this 16th day of May, 2013, by:

			
	Neal B. Sessions

	 
	Mack R. Leath

	Neal B. Sessions 

	 
	Mack R. Leath

	Chairman, CEO and CFO

	 
	Manager of Meshugeneh, LLC

	 
	 
	 

							
	SHARE INFO FOR 10 DAYS PRIOR TO CONVERSION

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 

	Date

	Open

	High

	Low

	Close

	Volume

	Adj Close*

	24-Apr-13

	0.17

	0.22

	0.17

	0.22

	23,600

	0.22

	23-Apr-13

	0.16

	0.2

	0.15

	0.2

	156,600

	0.2

	22-Apr-13

	0.18

	0.22

	0.15

	0.22

	4,400

	0.22

	19-Apr-13

	0.22

	0.22

	0.22

	0.22

	300

	0.22

	18-Apr-13

	0.16

	0.22

	0.14

	0.18

	15,700

	0.18

	17-Apr-13

	0.15

	0.23

	0.15

	0.23

	20,900

	0.23

	16-Apr-13

	0.12

	0.19

	0.12

	0.19

	38,900

	0.19

	15-Apr-13

	0.16

	0.25

	0.15

	0.25

	13,900

	0.25

	12-Apr-13

	0.13

	0.17

	0.13

	0.17

	80,700

	0.17

	11-Apr-13

	0.14

	0.27

	0.13

	0.27

	88,600

	0.27

	 
	 
	 
	 
	 
	AVG CLOSING PRICE

	0.21

	 
	 
	 
	 
	 
	110%

	0.231

				
	Meshugeneh LLC Payables 

	 

	 
	GL Date

	Additional Desc

	Amount

	 
	10/1/2012

	Edgar Filing Fees

	$2,500.00 

	 
	12/31/2012

	Sherb Audit Fees

	$5,000.00 

	 
	12/31/2012

	Ligett Vogt & Webb Audit

	$5,000.00 

	 
	12/31/2012

	B2B CFO, Snyder

	$3,500.00 

	 
	12/31/2012

	DC - 2 tix at 1,120 plus hotel and meals

	$2,655.42 

	 
	12/31/2012

	FINRA response

	$345.00 

	Meshugeneh LLC Payables at 2012 year-end 

	$19,000.42 

	 
	 
	 
	 

	Mesh activity for Q1 2013

	 

	 
	Trans. Date

	 

	 
	1/3/2013

	Direct Deposit to NBS

	$1,000.00 

	 
	1/9/2013

	Direct Deposit to NBS

	$2,000.00 

	 
	1/11/2013

	Direct Deposit to NBS

	$2,000.00 

	 
	1/28/2013

	RECUR DEBIT CRD PMT01/27 YAHOO *NEWCO4EDUC 408-916-2149 CA 474165XXXXXX1473 003027595902106 ?MCC=4816

	$13.94 

	 
	2/6/2013

	CHECK # 1734    SCI Group / PR exp

	$2,000.00 

	 
	2/8/2013

	RECUR DEBIT CRD PMT02/07 YAHOO *NEWCO4EDUC 408-916-2149 CA 474165XXXXXX1473 083038549805821 ?MCC=4816

	$9.00 

	 
	2/11/2013

	CHECK # 1735   Deposited to WFB Checking

	$2,400.00 

	 
	Feb. 2013

	Transfer to WFB Checking

	$5,000.00 

	 
	Feb. 2013

	Initial deposti to WFB checking

	$210.00 

	 
	Feb. 2013

	Initial deposit to WFB savings

	$50.00 

	 
	3/12/2013

	CHECK CRD PURCHASE 03/11 YAHOO *NEWCO4EDUC 408-916-2149 CA 474165XXXXXX6938 283069424101776 ?MCC=4816

	$22.94 

	 
	 
	Q1 2013 Mesh Fundings

	$14,705.88 

	 
	 
	 
	 

	 
	Q1 GL Balance for Mesh

	$33,706.30 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

				

				
	Mesh Q2 EXPENSES IN 2013 THROUGH 4-25

	 

	 
	 
	 
	 

	 
	4/15/2013

	CHECK # 1664 deposit to WFB Checking

	$3,000.00 

	 
	4/15/2013

	WT FED#08571 CITIBANK N.A. NEW /FTR/BNF=LIGGETT, VOGT AND WEBB, PA SRF# 0066771105312937 TRN#130415166090 RFB#

	$5,000.00 

	 
	 
	 
	 

	 
	4/22/2013

	CHECK CRD PURCHASE 04/20 VOC*PRWEB NEWS SVC 866-6406397 MD 474165XXXXXX8427 083108632354879 ?MCC=5968

	$499.00 

	 
	4/22/2013

	CHECK CRD PURCHASE 04/20 VOC*PRWEB NEWS SVC 866-6406397 MD 474165XXXXXX8427 163108641686086 ?MCC=5968

	$100.00 

	 
	 
	 
	 

	 
	4/25/2013

	CHKCARDMACREPORT MEDIAMARCELL NYUS

	$199.00 

	 
	4/25/2013

	CHKCARDMACREPORT MEDIAMARCELL NYUS

	$1,950.00 

	 
	4/25/2013

	OUTGOING WIRE DEBIT

	$1,000.00 

	 
	 
	 
	 

	 
	4/24/2013

	WT FED#04034 CITIBANK N.A. NEW /FTR/BNF=Sherb and Co SRF# 0066771114972238 TRN#130424098264 RFB#

	$5,850.00 

	 
	 
	 
	 

	 
	4/19/2013

	CHECK CRD PURCHASE 04/18 PAYPAL *PRLOG 402-935-7733 TX 474165XXXXXX8427 003108619365993 ?MCC=7311

	$49.00 

	 
	 
	 
	 

	 
	4/12/2013

	WT FED#00948 WEBSTER BANK, N.A. /FTR/BNF=Matthew Cowell SRF# 0066771102397227 TRN#130412145210 RFB#

	$5,000.00 

	 
	 
	 
	 

	 
	4/8/2013

	RECUR DEBIT CRD PMT04/06 YAHOO *NEWCO4EDUC 408-916-2149 CA 474165XXXXXX8427 283096586174750 ?MCC=4816

	$9.00 

	 
	 
	 
	 

	 
	4/8/2013

	CHECK CRD PURCHASE 04/06 YAHOO *NEWCO4EDUC 408-916-2149 CA 474165XXXXXX8427 083095534337020 ?MCC=4816

	$13.94 

	 
	4/24/2013

	EDGAR FILING SERVICE

	 $  3,000.00 

	 
	 
	TOTAL IN 2013

	 $25,669.94 

	 
	 
	 
	 

	 
	Mesh LLC Payable as of 4/25

	$59,376.24 

	 
	 
	 
	 

	 
	 
	110% of prior 10 day average

	0.231

	 
	 
	 
	 

	 
	 
	No. of shares to issue

	      257,040

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00228-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00228-of-00352.parquet"}]]