Document:

Exhibit 10.20

 

 

CONSULTING SERVICES AGREEMENT

 

This
Consulting Services Agreement (the “Agreement) is entered into as of this 29th
day of February, 2008 by and between Berthel Fisher & Company
Financial Services, Inc., an Iowa corporation whose business address is
701 Tama Street, Building B, Marion, Iowa 52302 (“Berthel”) and American
Defense Systems, Inc., a Delaware corporation whose address is 230 Duffy
Avenue, Unit C, Hicksville, New York 11801 (“ADSI”).

 

WHEREAS,
Thomas J. Berthel (“Tom Berthel”), a registered representative of Berthel,
which is a member firm of the Financial Industry Regulatory Authority, Inc.,
assisted ADSI in negotiating an investment banking agreement between ADSI and
Midtown Partners & Co., LLC (“Midtown”) pursuant to which Midtown has
arranged for West Coast Opportunity Fund, LLC (“West Coast”) to enter into an
agreement to make an investment in ADSI in the amount of Fourteen Million Five
Hundred Thousand and NO/100 Dollars ($14,500,000) (the “West Coast
Transaction”); and

 

WHEREAS,
ADSI desires to compensate Berthel for its part in negotiating the Midtown
investment banking agreement.

 

NOW
THEREFORE, in consideration of the mutual benefits to derived by each party
hereto and for other good and valuable consideration, the receipt of which is
hereby acknowledged, the parties agree as follows:

 

1.             ADSI acknowledges Berthel’s
assistance in working with Midtown which led to the agreement to enter into the
West Coast Transaction.  As compensation
for the services provided by Berthel, ADSI agrees to and will pay Berthel a
success fee equal to one percent (1%) of the dollar amount of the West Coast
investment in ADSI (the West Coast Fee”). 
Payment of the West Coast Fee to Berthel will be due and will take place
simultaneous with the settlement of the West Coast Transaction, or if more than
one settlement then a pro rated portion at the time of each individual
settlement.  No payment will be due
Berthel unless and until ADSI receives funds from West Coast.  If no funds are received from West Coast by
ADSI by February 28, 2009, this agreement shall expire and no payment
shall be due Berthel.

 

2.             Except
as otherwise specifically agreed to herein, all notices and other
communications made pursuant to this Agreement shall be in writing and when (i) delivered
in person, (ii) by registered or certified mail-return receipt requested, (iii) by
recognized commercial carrier or overnight courier or (iv) by facsimile
transmission, shall be deemed given (a)upon receipt, (b) five days after
the notice has been deposited in the mail, postage prepaid, by registered or
certified mail, return receipt requested, (c) one business day after the
notice has been delivered to such courier service marked for overnight
delivery, or (d) the same business day if faxed prior to 5:00 PM Eastern
time, or the next business day if faxed after 5:00PM Eastern time or on a day
other than a business day.  All notices
sent shall be sent to the respective address indicated herein or as otherwise
designated pursuant to this Section 7.

 

3.             This
letter agreement sets forth the entire understanding of the parties relating to
the subject matter hereof and supersedes and cancels any prior communications,
understanding and agreements and cannot be modified or changed, nor can any of
its provisions be waived, except by written agreement executed by both parties
hereto.

 

 

 

 

4.             This
Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware.   In the event of a
disagreement between the parties all parties agree to be subject to and submit
to personal jurisdiction of the state and federal courts located in the State
of New York.

 

5.             If any term, provision, covenant or
restriction contained in this Agreement is held by a court of competent
jurisdiction or other authority to be invalid, void, unenforceable or against
its regulatory policy, the remainder of the terms, provisions, covenants and
restriction contained in this Agreement shall remain in full force and effect
and shall in no way be affected, impaired or invalidated.

 

	
  American
  Defense Systems, Inc.

  	
   

  	
   

  	
  Berthel
  Fisher & Company

  
	
   

  	
   

  	
   

  	
  Financial
  Service, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
  Name:

  	
  Thomas
  J. Berthel

  
	
   

  	
   

  	
   

  	
  Title:

  	
  CEOExhibit 10.21

 

INDEPENDENT CONSULTING AGREEMENT

 

This
Independent Consulting Agreement (“Agreement”) is made and entered into
effective this the 1st day of August 2007, by and between Richard Torykian, a United States citizen
having his office at 56 Arrandale Road, Rockville Centre, NY 11570 hereinafter referred to as (“Consultant”) and
American Defense Systems, Inc., a
United States and Delaware Corporation having its office at 230 Duffy Avenue,
Unit C, Hicksville, NY 11801, (hereinafter
referred to as “Client”) including any affiliates, subsidiaries
and/or designees collectively referred to as “Parties” having entered into this
“Agreement”.

 

Client
desires a business relationship for the purposes of obtaining contracts for the
up-armoring of vehicles, the promotion of infrastructure construction services
and procurement equipment that can be purchased by companies or such military
entities as may be eligible for such equipment and approved for sale under
applicable regulations, including without limitation, United States, North
Atlantic Treaty Organization (NATO), foreign government entities, including
without limitation Armed Forces and United Nations (UN) forces. The Consultant
will put Client directly in contact with the decision makers to purchase this equipment
and shall provide such advisory and consulting services as may be necessary to
facilitate the completion of the proposed transaction.

 

WHEREAS,
Client desires to promote their business and products with appropriate private
and public entities including without limitation United States, NATO and UN to
obtain contracts for said products.

 

WHEREAS,
Consultant, under this business Consulting Agreement, agree to provide services
of a private enterprise and policy strategy in furtherance of the bona fide
trade or business opportunities for the Client’s business and to facilitate the
development of business projects.

 

WHEREAS,
Consultant are engaged in the business of providing strategic consulting
services and developing policy analysis and marketing strategies for conducting
and participating in business projects for the promotion of up-armoring of
vehicles, infrastructure construction services and procurement equipment
purchases.

 

WHEREAS,
Consultant, through extensive time, effort, and expenses have experience in
creating strategies to assist business entities.

 

NOW
THEREFORE, the Parties covenant and agree as follows:

 

A.                                   Scope of
Consulting Agreement.

 

Consultant
shall, through the use of his best efforts, endeavor to assist Client in
obtaining Client’s goals, as outlined above.

 

B.                                     Term of
Agreement.

 

1.               The initial term of this
Agreement shall be for one year, commencing on August 1, 2007, and ending
on July 31, 2008. This Agreement shall be renewable for an additional 365
days upon mutual agreement by the Parties. Each renewal of the Agreement shall
be governed by the

 

1

 

same
terms and conditions contained in this Agreement unless the parties agree to a
mutually agreed written modification of said terms.

 

2.               Subject to the foregoing,
either party to this Agreement may give notice of termination (“Notice of
Termination”) of this Agreement through written notice to the other party’s
designated representative for notice. The Notice of Termination shall be deemed
given upon the earlier of receipt: five (5) days after deposit with an
internationally recognized express courier, or ten (10) days after deposit
in the mail. The sending of the Notice of Termination shall terminate the
Agreement effective when deemed given as defined above following the sending of
the Notice of Termination (“Termination Date”). Notice of Termination may only
be given via 1) overnight delivery service or 2) mail. The giving of Notice of
Termination shall not terminate any of the Parties’ obligations under the
Agreement until the Termination Date occurs.

 

C.                                     Compensation of
Consulting Services.

 

1.               The Client shall pay the
Consultant an Award Fee that is 5% (five percent) of the gross contract value
of any contracts or subcontracts obtained through the effort of the Consultant
in which the Client’s relationship was initiated by the Consultant for said
contracts. Gross value is defined as the total contract completed and paid.

2.               Client and Consultant agree
to regularly confer to confirm whether the opportunity had been previously
identified by the Client and may agree to have Consultant receive mutual agreed
compensation as may be applicable on a contract by contract basis. Any such
agreement shall be subject of the terms and conditions of this Agreement as
well as such additional terms as may be agreed to in a mutually executed
written agreement.

3.               Within ten (10) business
days of receipt of funds applicable to a contract obtained by Consultant to
which Consultant is entitled to an Award Fee, the Client shall pay the
Consultant via check or wire transfer to the bank designated by Richard
Torykian in the United States. If payment is to be made via wire transfer,
Consultant shall provide Client with specific wire transfer information. Payment
via check shall be sent to Client at its business address as stated herein or
as subsequently amended via written notice to Client. In the event that a
multi-year contract is obtained, then Consultant may be paid the Award Fee on
an annual basis to reflect the applicable portion of the contract or
subcontract for which Client has received payment for completion during the
applicable calendar year.

4.               In addition to the
aforementioned Award Fee, Consultant shall be paid a Quarterly Consulting Fee
in the sum of Twelve Thousand Five Hundred ($12,500.00) Dollars together with
such reasonable expenses as Client shall have authorized Consultant to incur in
performance of services for the Client. The Consulting Fee shall be for
consulting services pertaining to business opportunities, institutional and
industry related knowledge and such other services as the Company may
reasonably request. The Consulting Fee shall be paid on or before the fifteenth
day of each month during the pendency of this Agreement and any renewals
thereof. The reasonable expenses shall be paid in a timely fashion following
the receipt by the Company of a detailed expense report and the supporting
receipts and documentation pertaining thereto.

 

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5.               Additionally, Consultant
shall receive additional compensation of 100,000 shares of Common Stock for
services to be rendered as an Advisor. These shares shall be issued to
Consultant in increments of 25,000 shares per quarter during the initial term
of this Agreement. In the event that the Company forms an Advisory Board and/or
Committee, then Consultant shall serve on that Board or Committee without
additional compensation except for reimbursement for such reasonable expenses
that may be incurred for participation on the Advisory Board and/or Committee.

6.               Client understands that
despite best efforts of Consultant, Goals may not be obtained or achieved.
Client understands and agrees that Consultant cannot warrant or guarantee
outcome of the Goals, and that Consultant have made no representation to Client
about the probable outcome of the Goals.

7.               The Consultant shall provide
Client with a disclosure statement at the inception of the agreement
delineating any applicable business dealings, including but not limited to
other consulting agreements and board of director memberships. Consultant
represents and agrees that he shall not consult with any company, entity or
person who is deemed to compete with the Client and/or provide competing goods
and/or services during the pendency of this Agreement and any renewals thereof.
In the event that Consultant deems that work for another entity may conflict
with this representation, he shall immediately inform the Client in writing of
the potential conflict and shall not conduct such work unless he receives a
written authorization from the Company allowing the performance of the work.
Failure to provide the Company with written notice and/or performing the work
without written authorization from the Client shall be a material breach of the
Agreement. The Client reserves all rights in equity and law if the Consultant
materially breaches the Agreement.

 

D.                                    Key Personnel.

 

Consultant
may suggest to Client other business or legal entities be retained to perform
specific services on behalf of client, which client will need to engage these
business legal persons or entities under a separate agreement. Client may seek
to have Consultant’ coordinate with these other business entities for the
performance of their services.

 

E.                                      Independent
Contractor: No Agency and No Joint Venture.

 

The
Parties expressly agree that this Agreement does not create an agency agreement
or a joint venture agreement. The Parties expressly agree that Consultant are
independent contractors entitled to use and exercise their own judgment and
discretion. While all actions shall be taken in consultation with Client,
Consultant shall not be obligated to carry out any course of action, of which
the Consultant do not approve or agree.

 

F.                                      LIMITATION ON
WARRANTIES.

 

THIS
IS A BUSINESS SERVICE ENGAGEMENT. CONSULTANT WARRANTS THAT HE WILL PERFORM CONSULTING
SERVICES HEREUNDER IN GOOD FAITH.

 

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G.                                     Confidential
Information.

 

It
is the intention of Consultant to protect and prevent unauthorized access to
and disclosure of confidential information obtained from Client, whether oral,
written, electronic and/or any other form. Confidential Information shall
include but not be limited to information that is marked as “confidential”,
advance procurement information (e.g. future requirements, statements of work,
and acquisition strategies); source selection information (e.g. bids before
being made public, source selection plans, and rankings of proposals); trade
secrets and other confidential business information (e.g. confidential business
information submitted by the Client); attorney work product; information
protected by the Privacy Act (e.g. social security numbers, home addresses, and
telephone numbers); and other sensitive information that would not be released
under the Freedom of Information Act (e.g. program planning and budgeting
system information). Consultant shall not seek access to Confidential
Information beyond what is required for the performance of services under this
Agreement. Consultant shall ensure that its status as an Independent Contractor
is known when seeking access to and receiving Confidential Information. In
order for Consultant to effectively carry out their functions under this
Agreement, the Parties understand that Consultant will come into possession of
information that Client may otherwise deem confidential. However, unless Client
specifically limits the disclosure of the information by giving written notice
of the specific information it desires to maintain confidential, Consultant may
make necessary disclosures and convey such information to third parties, if
such disclosure is necessary, in Consultant’ opinion, to achieve the Client’s
Goals. Consultant shall not use or disclose Confidential Information for any
purpose other than providing the contract support services contemplated by this
Agreement and will not use or disclose the information to any unauthorized
person and/or entity for personal, commercial, or unauthorized purpose. If Consultant
becomes aware of any improper release or disclosure of Confidential
Information, recipient shall provide notice to Client’s Recipient for Notice as
hereinafter designated in writing as soon as possible. Consultant expressly
warrant that such disclosures will not be made except in the direct course of
carrying out Consultant’s functions under this Agreement. Client expressly
agrees to waive any action it may have for disclosure of such confidential
information, unless Client has given written notice to Consultant directing
Consultant not to disclose. Consultant agree to return any Confidential
Information given to it pursuant to this Agreement, including any
transcriptions and/or copies in any format whatsoever made by Consultant of the
Confidential Information to which Consultant were given access, if not already
destroyed, when Consultant no longer perform work under the Agreement.
Consultant acknowledge that any unauthorized use, release or disclosure of
Confidential Information in violation of this Agreement will subject the
Consultant to administrative, civil or criminal remedies as may be authorized
by law.

 

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H.                                    Law Governing
Agreement.

 

Client
and Consultant agree that the laws governing this Agreement shall be under the
Laws of the United States and the State of New York with venue being United
States District Court, Eastern District of New York. If said court declines
jurisdiction then a proceeding may be brought in Supreme Court of the State of
New York, Nassau County. The parties may opt to mediate any dispute upon mutual
written consent.

 

I.                                         Limitation on
Actions.

 

All
legal actions arising under or related to this Agreement must be commenced
within one year of the Termination Date of the Agreement.

 

J.                                        Limitation on
Damages.

 

Mutually,
Consultant and Client agree that they shall not be liable to each other for any
actions except fraud and/or breach of fiduciary duty for any actions, damages,
claims, liabilities, costs, expenses, or losses arising out of or related to
this Agreement or the consulting services performed hereunder in excess of the
fees of the amount paid to Consultant by Client under this Agreement. In no
event shall Consultant and /or Client be liable for consequential, special, indirect,
incidental, punitive or exemplary damages, costs, expenses, or losses
(including, without limitation, lost profits and opportunity costs). The
provisions of this paragraph shall apply regardless of the form of action,
damage, claim, liability, cost, expense or losses whether in contract, tort,
statute or otherwise.

 

K.                                    Additional
Warranties and Representations of Parties

 

1.               The signing Parties
represent and warrant to the other that they have the right and authority to
enter this Agreement and to bind such Party to the rights and obligations set
forth herein, and that all required corporate and/or governmental permission,
consent and authorization has been obtained in order to make this Agreement
effective.

2.               This Agreement may not be
assigned by either party or transferred by operation of law to any other person
or organization without the express written approval of the other party.

3.               The parties may execute a
subsequent written agreement which may modify the terms hereof, including an
assignment of the agreement, upon mutual written consent.

4.               Consultant agrees to carry
out their business consulting services in compliance with the laws and statutes
of the United States.

5.               Except as provided in this
Agreement, neither party shall have the right, power, or authority to act or to
create any obligation, express or implied, on behalf of the other.

6.               The Indemnification
provisions set forth in the Agreement, and any other provision, which by its
sense and context is appropriate, shall survive the termination of this
Agreement by either party for any reason.

7.               The titles and headings of
the various sections and paragraphs in this Agreement are intended solely for
convenience of reference and are not intended for any other purpose whatsoever,
or to explain, modify, or place any construction upon or on any provisions of
Agreement.

8.               Neither party shall be in
breach of this Agreement in the event it is unable to perform its obligations
under this Agreement as a result of natural disaster, war, or emergency
conditions.

 

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9.               If any provision of this
Agreement shall be held to be invalid or unenforceable by a competent court
having proper jurisdiction, the other provisions shall remain valid.

10.         The parties agree that this
Agreement supersedes all previous communications, oral or written, and all
other communications between them relating to the license and to the subject
hereof.

 

No
representations or statements of any kind made by either party, which are not expressly  stated herein, shall be binding on such
party.

 

IN
WITNESS THEREOF, the parties have executed this Agreement as of this 1st day
August, 2007.

 

 “Client”
American Defense Systems, Inc.

 

	
   

  	
   

  
	
  Thomas F. Cusack

  

 

Vice
President, Corporate Counsel, Secretary

 

Designated Representative For Notice:

 

Name:
Thomas F. Cusack

 

Title:
Vice President, Corporate Counsel, Secretary 

 

Address:
230 Duffy Avenue, Unit C, Hicksville, NY 11801 

 

Telephone:
Telephone: 516-390-5302

 

Facsimile:
516-390-5308

 

“Consultant”
Richard Torykian

 

	
   

  	
   

  
	
  Richard
  Torykian

  

Consultant

 

Designated
Representative For Notice:

 

Name:
Richard Torykian

 

Title:
Consultant

 

Address:
56 Arrandale Road, Rockville Centre, NY 11570

 

Telephone:
516-837-3039

 

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