Document:

Purchasing and Sales Agreement

 

EXHIBIT 10.26

THIS PURCHASE AND SALE AGREEMENT is made with effect as of May 21, 2002

BETWEEN:

REDRUTH VENTURES INC., a British Virgin Islands Corporation, 3076 Sir Francis
Drake’s Highway P.O. Box 33463 Road Town, Tortola, BVI

(“Redruth”)

AND:

BINGO.COM, INC., a Florida Corporation, Suite 1405-1166 Alberni Street,
Vancouver, British Columbia, V6E 3Z3

(The “Company”)

WHEREAS:

A. The Company is indebted to Redruth and Bingo Inc., an Anguillian
corporation, pursuant to a Convertible Debenture (the “Debenture”) in the
aggregate principal amount of US$1,250,000 dated as of April 16, 2001;

B. Pursuant to the Debenture, the Company issued to Redruth a Warrant (“Redruth
Warrant”) dated April 16, 2001 to purchase up to 7,200,000 shares of common
stock of the Company at a price of US$.25 per share;

C. Redruth has agreed to sell and transfer to the Company its interest in the
Redruth Warrant in exchange for the provision by the Company to Redruth of 18
months of unused advertising inventory as detailed in the Company’s standard
Insertion Order attached hereto as Schedule “A” (“Redruth IO”).

THEREFORE this Agreement witnesses the parties’ agreement as follows:

1. Redruth represents and warrants to the Company that:

(a)  the indebtedness (the “Indebtedness”) owing to Redruth under the Debenture
as at May 21, 2002 is the principal sum of US$750,000 plus all accrued and
unpaid interest;

(b)  it has not exercised any of its rights to acquire shares under the Redruth
Warrant;

(c)  it has not done or permitted any act or thing whereby the Indebtedness, the
Debenture or the Redruth Warrant has been assigned, released, discharged or
encumbered, either wholly or in part.

2. Redruth hereby absolutely and irrevocably sells, assigns and transfers to
the Company all of Redruth’s interest in the Redruth Warrant, free and clear of
all liens and encumbrances. As consideration for the above assignment and
transfer, the Company agrees to provide Redruth

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with 18 months of specified advertising inventory as set out in the Redruth IO
(the “Specified Inventory”) and to serve the Specified Inventory as specified
by Redruth or its affiliated companies. Redruth hereby accepts the Redruth IO
and the Specified Inventory as full and final satisfaction of all of Redruth’s
rights and privileges under the Redruth Warrant.

3. To give effect to Clause 2, Redruth will surrender the original Redruth
Warrant to the Company, and Redruth hereby authorizes the Company to cancel the
Redruth Warrant in its entirety and to release any common shares reserved for
issuance by the Company under the Redruth Warrant.

4. Neither Redruth nor any of its affiliated companies will:

(a)  contact, solicit or engage in any communication with any existing clients
or customers of the Company as defined in Schedule “B” attached hereto for the
purpose of offering, selling or making any of the Specified Inventory available
to such existing clients or customers of the Company;

(b)  possess or resell any opt-in email list belonging to the Company; and

(c)  disclose or release the terms of this Agreement without the prior written
consent of the Company.

5. Redruth acknowledges that except as expressly provided herein, the Company
provides the Specified Inventory under the standard terms and conditions as
detailed in the Redruth IO and in the event of default by Redruth of Clause 4
herein the Company may discontinue provision of the Specified Inventory and
Redruth accepts this condition without any recourse and without any warranty of
any kind, either express or implied, as to any other payment by or on behalf of
the Company.

6. Redruth hereby releases the Company and its affiliated and associated
corporations from all obligations, agreements and liabilities of any nature and
kind, other than as set out in this Agreement.

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7. This Agreement may be executed in one or more counterparts, which may be in
original or facsimile copies, and all such counterparts when taken together
shall constitute one and the same instrument.

The parties have executed this Assignment as evidenced below.

	 	 	 	 
	REDRUTH VENTURES INC.

Per:	 	 
	 
	 	 	
/s/ Mitch White
	 	 	

	 	 	
AUTHORIZED SIGNATORY
	 
	BINGO.COM, INC.

Per:	 	 
	 
	 	 	
/s/ Tarrnie Williams
	 	 	

	 	 	
AUTHORIZED SIGNATORY

-35-

 

	 	 	 
	[LOGO]	 	 
	 
	BINGO.COM INC.

#1405-1166 ALBERNI STREET

VANCOUVER, B.C.

CANADA, V6E 3Z3	 	
Date: May 16, 2002

TEL:(604) 694-0300

FAX:(604) 694-030      Invoice # ________

WEBSITE: WWW.BINGO.CO

SIGN AND FAX TO 1-(604) 694-0301

	 	 	 	 	 	 	 	 	 
	Client:	 	
Redruth Ventures, Inc.	 	 	 	 	 	 
	 	 	

	 	 	 	 	 	 
	Start Date:	 	
JUN 1/02
	 	End Date:
	 	NOV. 30/03
	 	Duration (# wks):

	 	 	 
	Sales Person:	 	 
	 	

	ADVERTISER: CYOP Systems	 

	 	 	 
	Media Contact: Michelle Kuhn	 	
ACCOUNTING CONTACT:
	Address: #406 1040 Hamilton	 	
Phone:
	City/State: Vancouver	 	
Email:
	Zip:	 	 
	Phone: 604-688-8873

Fax: 604-688-8838

Email: Mkuhn@cyop.org	 	 
	 
	ACCOUNTING CONTACT:	 	 
	Phone:	 	 
	Email:	 	 

TERMS & BILLING INSTRUCTIONS

-36-

 

NET 30 [   ] REDRUTH VENTURES, INC. HAS PREPAID IN FULL FOR THE

MONTHLY PREPAY [  ] ENTIRE CAMPAIGN AS PER THE AGREEMENT DATED MAY 21, 2002

PREPAY IN FULL [X] Bingo.com Inc.

Payment Method

CHECK [   ]

WIRE TRANSFER [   ]

MEDIA PURCHASE DETAILS

	 	 	 
	
MEDIA SUPPLIER: Bingo.com
	 
	
CAMPAIGN DETAILS: Client will provide Bingo.com with all creatives
for serving on Bingo.com media space. Client may also
provide links to client servers by which client may
circulate any creatives within the duration of the campaign.
All media served under Bingo.com will be subject to approval
prior to serving. 50% of all campaigns will be for Keno.com.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	IMPRESSIONS	 	TOTAL # OF	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CREATIVE TYPE:	 	AD UNIT SIZE	 	CPM OR CLICKS	 	NET COST	 	MONTHS	 	LOCATION	 	COMMENTS
	
	 	
	 	
	 	
	 	
	 	
	 	

	BANNER
	 	 	468X60	 	 	6050000 A MONTH	 	 	 	 	 	 	18	 	 	BINGO.COM	 	IMPRESSIONS
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	ARE BASED ON
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	TOTAL EACH MONTH
	INDEX POP
	 	 	250X250	 	 	285714 A MONTH	 	 	 	 	 	 	18	 	 	 	 	 	 	 	 	 
	GAMES POP
	 	 	250X250	 	 	625000 A MONTH	 	 	 	 	 	 	18	 	 	 	 	 	 	 	 	 
	INTERMISSION
	 	 	500X350	 	 	652500 A MONTH	 	 	 	 	 	 	18	 	 	 	 	 	 	 	 	 

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	 	 	IMPRESSIONS	 	TOTAL # OF	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CREATIVE TYPE:	 	AD UNIT SIZE	 	CPM OR CLICKS	 	NET COST	 	MONTHS	 	LOCATION	 	COMMENTS
	
	 	
	 	
	 	
	 	
	 	
	 	

	TOWER
	 	 	120X600	 	 	445666 A MONTH	 	 	 	 	 	 	18	 	 	 	 	 	 	 	 	 
	BUTTONS
	 	 	120X240	 	 	1500000 A MONTH	 	 	 	 	 	 	18	 	 	 	 	 	 	 	 	 
	BUTTONS
	 	 	120X60	 	 	1500000 A MONTH	 	 	 	 	 	 	18	 	 	 	 	 	 	 	 	 
	GAME LOADING
	 	 	300X200	 	 	1 WEEK A MONTH	 	 	 	 	 	 	18	 	 	 	 	 	 	DATE TBD
	SPLASH INTERMISSION
	 	 	300X200	 	 	1 WEEK A MONTH	 	 	 	 	 	 	18	 	 	 	 	 	 	DATE TBD
	SOLO E-MAIL
	 	 	 	 	 	1 A MONTH	 	 	 	 	 	 	18	 	 	 	 	 	 	 	 	 

HOME PAGE (COLUMN 4) HARD CODED IMPRESSION OF KENO AND BIGR AND FOX CLICK THROUGH BUTTONS

MONTHLY TOTALS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DAY SENSITIVITY:	 	
YES:
	 	 	 	NO	 	 	 	 	 	 	 	 
	 
	IF YES WHICH DAY:	 	
Mon:
	 	Tues:
	 	Wed:
	 	Thurs:
	 	Fri:
	 	Sat:
	 	Sun:

BANNER CREATIVES PROVIDED:  By Client:  YES    By Bingo.com:

DATE CREATIVES FINALIZED:

REPORTING SCHEDULE:

TERMS AND CONDITIONS: This Insertion Order is subject to Publisher and Supplier
Approval.

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1) This insertion order constitutes an agreement between the parties. It
supersedes all prior proposals, agreements, or other communications between the
parties regarding such subject matter. The return of this agreement signed by
the advertiser or agent constitutes acceptance of all terms and conditions of
this agreement.

2) Bingo.com recognizes the industry wide issue of ad serving discrepancies,
and has adopted the following policy, which Advertisers hereby agrees to adhere
to:

a) For billing purposes, Bingo.com and Advertisers will recognize a l0%
discrepancy as being within acceptable industry parameters. For any
discrepancies within 10%, campaigns will be billed based on our system numbers.

b) Advertisers will be supplied with a login & password to our ad serving
system. This will be included in the email with the ad serving tags.
Advertisers will be responsible for monitoring the discrepancies between the ad
servers within the initial 48-72 hours of the campaign. After the initial 72
hours, the Advertiser is responsible to check on the numbers from time to time,
and must notify Bingo.com when the discrepancy is higher than 10%.

c) Upon notification of a discrepancy higher than 10%, Bingo.com will ask that
the campaign be paused until we can collectively decide how best to proceed. If
Advertiser does not notify Bingo.com of discrepancy, Advertiser agrees that
campaigns will be billed on system numbers, regardless of the discrepancy.

3) All advertising is subject to publisher’s approval. The publisher reserves
the right to reject advertising, which is not in keeping with the publisher’s
standards. The publisher’s liability for any error will not exceed the charge
for the advertisement in question.

4) Advertisers assume the liability for all content of advertisements published
and/or any claims arising there from made against the publisher. Advertisers
agree to indemnify the publishers against any such claims and all related costs
and expenses (including attorney’s fees).

5) Bingo.com has the right to pre-empt any campaign.

6) Only Written Insertion orders will be honored.

7) All gaming related client and advertisers will be required to adhere to
prepayment terms.

8) Cost per Click and Cost per Acquisitions deals may be permitted however, all
reporting and serving must be done off the internal software and reporting. No
third party code will be permitted.

9) Non-Disclosure and Non-Circumvention Agreement

The parties hereby agree as follows:

In its sole discretion, the Disclosing Party will provide to the Receiving
Party certain confidential

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and proprietary information for the limited purpose of allowing the Receiving
Party to

a) Definition — For purposes of this Agreement, “Confidential Information”
shall mean the information received by the Receiving Party from the Disclosing
Party which is marked as Confidential and/or “Proprietary” or which would
logically be considered “Confidential” and/or “Proprietary” in view of its
relationship to the whole disclosure. Information initially furnished orally
which was identified by the Disclosing Party as confidential and/or proprietary
at the time of disclosure, shall be treated by the Receiving Party as
Confidential Information.

b) Protection and Purpose — All “Confidential Information” shall be maintained
in confidence by the Receiving Party, and shall not be disclosed to any third
party and shall be protected with the same degree of care as the Receiving
Party normally uses in the protection of its own confidential and proprietary
information, but in no case with any less degree than reasonable care. The
Receiving Party shall not use any “Confidential Information” received from the
Disclosing Party except for the evaluation purposes set forth above. The
Receiving Party shall not use any “Confidential Information” received from the
Disclosing Party to circumvent any agreement with any Company or persons
associated or affiliated with said.

c) Restrictions — The restrictions herein provided shall not apply with respect
to “Confidential Information” which:

i) Is or becomes a part of the public domain without breach of this Agreement
by the Receiving Party; or

ii) Is disclosed by the Disclosing Party to a third party without a commitment
of confidentiality by the third party; or

iii) Is disclosed pursuant to judicial action or government regulations,
provided the Receiving Party notifies the Disclosing Party prior to such
disclosure and cooperates with the Disclosing Party in the event the Disclosing
Party elects to legally contest and avoid such disclosure.

d) Rights and Licenses — This Agreement and the furnishing of “Confidential
Information” as provided herein shall not be construed as establishing, either
expressly or by implication, any grant of rights or licenses to the Receiving
Party or any relationship between the parties.

e) Ownership — All tangible information and other information submitted
hereunder by the Disclosing Party to the Receiving Party, shall remain the
property of the Disclosing Party. If either party elects not to pursue any
further business undertaking, the Receiving Party shall promptly return to the
Disclosing Party all tangible information, and all copies thereof, related to
“Confidential Information”.

f) Termination — This Agreement is to be construed in accordance with the laws
of the Province of British Columbia and shall terminate Two (2) years from the
effective date of this Agreement.

COMMENTS/ADDENDUMS:

Bingo.com Inc.

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The customer has prepaid for the inventory as shown above. Any monthly campaign
not utilized by the customer will not be replaced.

SIGN AND FAX TO (604) 694-0301

	 	 	 	 	 	 	 
	Advertiser	 	 	 	Bingo.com Inc.
	 
	 
	Signature:	 	 	 	Signature:	 	 
	 	 	

	 	 	 	

	Name:	 	 	 	Name:	 	 
	 	 	

	 	 	 	

	Title:	 	 	 	Title:	 	 
	 	 	

	 	 	 	

	Date:	 	 	 	Acceptance Date:	 	 
	 	 	

	 	 	 	

CAMPAIGN CREATIVE DETAILS

CREATIVE DEADLINES

New advertisers must submit materials to bingo.com four business days prior to
start date. Existing advertisers may change their banners as often as they like
as long as we receive new creative by noon two business days prior to start
date.

IF YOU NEED HELP DESIGNING YOUR CREATIVE, CALL US! Creative Specs for your
campaign are listed below

CREATIVE SUBMISSIONS

Please send via e-mail and choose one of two options:

Send Banners along with corresponding destination URL’s in an email. Post
Banners along with corresponding destination URL’s to a WWW page and send
location via e-mail.

CREATIVE SPECIFICATIONS

All banners for this campaign will need to be approved by the site(s) before
being posted.

All banners should be standard size and no larger than 12k per banner.

-41-Consulting Agreement

 

EXHIBIT 10.27

CONSULTING AGREEMENT DATED JULY 2, 2002, BETWEEN THE COMPANY, BROMLEY ACCOUNTING
SERVICES LTD AND MR. H. W. BROMLEY.

THIS AGREEMENT is made the 2nd day of July, 2002 (the “Effective Date”)

BETWEEN:

(1)  BROMLEY ACCOUNTING SERVICES LTD., a company incorporated under the laws of
England & Wales with its registered office situated at 2 Iverna Court, Iverna
Gardens, London, W8 6TY (the “Consultant”),

AND

(2)  BINGO.COM, INC., a company incorporated under the laws of Florida with its
office situated at Suite 1405, 1166 Alberni Street, Vancouver, BC, Canada, V6E
3Z3(the “Company”),

AND

(3)  H. W. BROMLEY, businessman of 59 Prothero Road, Fulham, London, SW6 7LY
(the “Executive”),

WHEREAS:

A. the Consultant has the ability to provide consultancy services to the
Company, which services the Company requires in connection with the developing,
financing, accounting and day-to-day operations of an Internet Bingo company
operating worldwide to provide both free and Pay for Play Bingo over the
Internet and throughout the world. (the “Business”);

B. the Consultant and the Company have agreed that the Consultant shall provide
services as an independent contractor on the terms and conditions set out
hereinbelow;

C. the Executive is employed by the Consultant and is willing and able to act
as the CFO of Bingo.Com, Inc.;

NOW THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration of the sum of ten
pounds in lawful money of the United Kingdom (GBP£10.00) paid by each of the
parties hereto to the other, the respective covenants herein contained and
other good and valuable consideration, the receipt and sufficiency whereof is
hereby expressly acknowledged, the parties HERETO AGREE AS
FOLLOWS:—

-42-

 

1. INTERPRETATION

1.1 References in this Agreement to clauses, sub-clauses and schedules are to
those in this Agreement and the schedules to this Agreement shall be deemed to
be a part of this Agreement.

1.2 References to any provision of a statute or regulation shall be construed
as a reference to that provision as amended, re-enacted or extended at the
relevant time.

1.3 Clause headings in this Agreement are for ease of reference only and shall
not affect the interpretation of this Agreement.

1.4 Words importing one gender shall be construed as importing any other gender
and words importing the singular shall be construed as importing the plural and
vice versa.

1.5 References to persons shall include bodies corporate and vice versa.

2. CONSULTING & EXECUTIVE SERVICES

2.1 With effect from the Effective Date, the Company engages the Consultant to
provide services, in connection with the operation of the Business and the
Consultant hereby accepts the engagement (the “Consultancy”).

2.2 With effect from the Effective Date, the Consultant releases the Executive
from his employment to the extent necessary to give effect to the terms of this
Agreement provided that any agreement made between the Company and the
Executive for his services does not conflict with his obligations at any time
and from time to time to the Consultant (the Release”).

3. AGENTS AND ADVICE

The Consultant shall be at liberty in the performance of its duties and in the
exercise of any of the powers and discretions vested in it hereunder to employ
and pay an agent to perform or assist in performing any or all of the services,
duties and obligations required to be performed hereunder by the Consultant.
Further the Consultant may act or rely upon the opinion or advice of or any
information obtained without verifying or otherwise enquiring as to the
accuracy of any information or assertions provided or from any broker, lawyer,
valuer, surveyor, auctioneer or other expert whether reporting to the Company
or to the Consultant or not and the Consultant, absent gross negligence or
willful default, shall not be responsible for any loss occasioned by its so
acting.

-43-

 

4. RELATIONSHIP

4.1 The Consultant shall be an independent contractor and nothing herein shall
be construed as creating a partnership, co-venture or employment relationship
between the Consultant and the Company.

4.2 The Consultant shall not have the authority to obligate or bind the Company
to any obligations or agreements in excess of US$25,000 without the prior
authorisation of the Board of Directors of the company and, without limiting
the generality of the foregoing:

4.2.1 the Consultant shall not hold itself out as having any right, power or
authority to create any contract or obligation, either express or implied, on
behalf of, in the name of, or binding upon the Company save and except those
obligations falling within the normal course of obligations of a CFO of an
organization;

4.2.2 the Consultant shall not make any representation or warranty on behalf of
the Company save and except those obligations falling within the normal course
of obligations of a CFO of an organization; and

4.2.3 the Consultant is not authorized to accept service of process for the
Company.

4.3 The Consultant shall accept any reasonable directions issued by the Company
in respect of the Business and pertaining to goals to be attained and results
to be achieved during the currency of this Agreement.

4.4 For the avoidance of doubt, none of the parties hereto intends to create a
partnership, joint venture or to assume partnership liability or responsibility
by entering into this Agreement, rather it is the intent of the parties hereto
that the rights and obligations of the parties hereto be several and not joint
or joint and several.

5. DURATION

5.1 The first five months (“Trial Period”) will be a trial period. During the
Trial Period the Consultant’s performance and conduct will be monitored. In
addition the Consultant can consider the viability of the company. Any of the
parties hereto may terminate this Agreement, at the completion of the Trial
Period and within 5 days of the Trial Period completion without further notice
and without prejudice to its other remedies,

5.2 This Agreement shall commence on the Effective Date and remain in full
force and effect until the earlier of the first anniversary of the Effective
Date or the date this Agreement is terminated forthwith .pursuant to clause 5.1
or by giving thirty (30) days’ notice thereafter, in writing, to the other
parties or as per clause 9 hereof (the “Termination Date”).

-44-

 

5.3 Unless this Agreement has been terminated pursuant to clause 5.1 & 9
hereof, upon the Termination Date the Consultant shall have the option to
renew, by giving one (1) months notice in writing to the Company, this
Agreement for a further term of up to one (1) years upon substantively the same
terms as then pertain excluding clause 5.1.

6. COMPENSATION

In consideration of the Consultancy and the Release, the Consultant shall be
entitled to receive from the Company:

6.1 for each calendar month or part thereof during the duration of the
agreement the sum of three thousand six hundred and sixty seven pounds in
lawful money of the United Kingdom (GBP£3,667),

payable monthly in arrears in accordance with the provisions set out below or
as may be agreed in writing from time to time by the parties hereto.

7. COSTS AND EXPENSES

The Company shall reimburse the Consultant and/or the Executive for all out of
pocket expenses reasonably incurred during the Consultancy including, without
limiting the generality of the foregoing, operating expenses, airfares,
accommodations, and vehicle expenses, provided that the Consultant and/or the
Executive shall provide the Company with such vouchers or other evidence of
actual payment of the said expenses as the Company may reasonably require.

8. CONFIDENTIALITY

None of the parties hereto shall (except under compulsion of law or by any
governmental, quasi-governmental or regulatory authority of any country or
territory having relevant jurisdiction) either before or after the termination
of this Agreement disclose to any person not authorised by the relevant party
to receive the same any confidential information relating to such party or to
the affairs of such party of which the party disclosing the same shall have
become possessed during the period of this Agreement and each party shall use
all reasonable endeavours to prevent any such disclosure as aforesaid.

9. TERMINATION

9.1 The Executive shall not terminate this Agreement unless he has the prior
written approval of the Consultant.

9.2 Any of the parties hereto may terminate this Agreement, without prejudice
to its other remedies, forthwith by giving thirty (30) days’ notice in writing
to the other parties if any other party either:

-45-

 

9.2.1 commits a material breach of the provisions of this Agreement provided
that if the breach is capable of remedy then notice shall only be given if the
party in breach shall not have remedied the same within thirty (30) days of
having been given notice in writing specifying the breach and requiring it to
be remedied; or

9.2.2 acts or omits to act, or any of its directors, officers, employees or
agents act or omit to act, in a manner which shall, in the opinion of giving
notice, in any way prejudice the interests of the party giving notice or bring
the name of that party giving notice into disrepute; or

9.2.3 is unable to pay its debts or enters into compulsory or voluntary
liquidation (other than for the purpose of amalgamation or reconstruction and
the resulting company agrees to be bound by and assume the obligations of the
relevant party under this Agreement) or compounds with or convenes a meeting of
its creditors or has a receiver or manager or an administrator or
administrative receiver appointed of its assets or ceases for any reason to
carry on business or takes or suffers any similar action which, in the opinion
of the party giving notice, means that the other may be unable to pay its
debts.

9.3 Termination of this Agreement for whatever reason shall not affect or
prejudice the rights of the parties arising in any way out of this Agreement as
at the date of termination and in particular, but without limitation, the right
to recover damages from the other.

9.4 All provisions of this Agreement which are expressed to operate or survive
in the event of termination of this Agreement shall remain in full force and
effect after such termination.

10. INDEMNITY

10.1 The Company hereby agrees to indemnify and keep indemnified the Consultant
(together with its directors, officers, employees and agents) from and
against:-

10.1.1 any and all demands, claims, liabilities, losses, damages, costs, legal
costs, professional and other expenses of any nature whatsoever including all
interest and penalties, incurred or suffered by the Consultant or the Executive
in connection with the Business and all or any breaches by the Consultant or
the Executive of the provisions of this Agreement (including all or any act,
neglect or default of the Consultant’s directors, officers, employees and
agents); or

10.1.2 all actions, suits and proceedings which may be commenced, taken or made
against the Consultant or the Executive or which may be incurred or which may
arise directly or indirectly by reason of the provision by the Consultant or
the Executive of all or any of the services under this Agreement or by reason
of any act done and/or omitted to be done in relation thereto or attempting to
enforce the Consultant’s rights under this indemnity, except insofar as any
such claims arise from any breach of this Agreement by the Consultant.

10.2 All sums payable under clause 6 of this Agreement shall be payable by the
Company immediately on demand by the Consultant in full without any deduction,
withholding, counterclaim or set-off and if any such deduction or withholding
is made, or any tax, duty or levy of any nature whatsoever, except taxes
imposed on the Consultant and measured by the

-46-

 

income of the Consultant, is required to be paid on the sum due, the Company
shall immediately pay to the Consultant such additional amount as will result
in the payment to and retention by the Consultant of the full amount which
would have been received and retained by the Consultant but for such deduction
or withholding or the imposition of any such tax, duty or levy.

11. ASSIGNMENT AND DELEGATION

11.1 The provisions of this Agreement shall be binding on and enure to the
benefit of the successors and assigns of each party hereto provided that either
party may not, and may not agree to, assign, transfer, charge or otherwise
dispose of or subcontract any of its rights or obligations under this Agreement
without the prior written consent of the other parties.

11.2 Neither the Consultant nor the Company shall be permitted to delegate any
of their duties or obligations arising under this Agreement otherwise than may
be expressly agreed in writing between the Consultant and the Company.

12. FORCE MAJEURE

12.1 None of the parties shall be in breach of the provisions of this Agreement
if there is any failure of performance by it of its obligations under this
Agreement occasioned by any act of God, fire, act of local, national or
supranational authority or government or state, war, civil commotion, embargo,
strike, lock-out or other cause beyond the control of either party.

12.2 If any of the parties is unable to perform its duties and obligations
under this Agreement as a direct result of the effect of one or more of such
causes, such party shall give written notice to the others of such inability
stating the cause in question, without delay. The operation of this Agreement
(but not the provisions relating to confidentiality and the restrictive
obligations of the parties) shall be suspended during the period in which the
cause continues to have effect. Forthwith upon the cause ceasing to have
effect, the party relying upon it shall give written notice thereof to the
others.

12.3 If the cause continues to have effect for a period of more than sixty (60)
days, the parties not claiming relief under this clause shall have the right to
terminate this Agreement forthwith upon giving written notice of such
termination to the other parties.

13. ILLEGALITY AND SEVERABILITY

If any provision of this Agreement shall become or be declared illegal, invalid
or unenforceable, in whole or in part, for any reason whatsoever by any
competent court, tribunal or authority in England & Wales, such provision or
part thereof shall be divisible from this Agreement and shall be deemed to be
deleted from this Agreement in so far as the continued operation of this
Agreement is concerned provided always that, if such deletion substantially
affects or alters the commercial basis of this Agreement, the parties shall
negotiate in good faith to amend and modify the provisions of this Agreement as
may be necessary or desirable in the circumstances.

-47-

 

14. NO WAIVER

No failure or delay on the part of either of the parties to exercise any right
or remedy under this Agreement shall be construed or operate as a waiver
thereof, nor shall any single or partial exercise of any right or remedy
preclude the further exercise of such right or remedy as the case may be.

15. ANNOUNCEMENTS

No public announcement shall be made in respect of the subject matter of this
Agreement without the prior written approval of the Consultant and provided
always that the form and content of any such announcement is agreed to in
writing by the Consultant.

16. NOTICES

16.1 Any notices or other communication given or made under this Agreement
shall be in writing and shall be deemed to have been duly given if delivered by
hand or by registered post as follows:

If to the Consultant or to the Executive to:

2 Iverna Court

Iverna Gardens

London

W8 6TY

If to the Company:

Suite 1405 — 1166 Alberini Street

Vancouver, BC

V6E 3Z3

Canada

Fax: 604-694-0301

Attention: Mr. T. M. Williams

16.2 In the event of any postal or other strike or industrial action affecting
postal communications in or between England & Wales and Canada notices shall be
given personally or by email.

16.3 Any such notice or other documents shall be deemed to have been received
by the addressee five (5) working days following the date of dispatch if the
notice or other document is sent by registered post or on the next working day
after delivery if sent by hand or by email.

-48-

 

17. AMENDMENTS

This Agreement may only be amended by written agreement signed by all parties.

18. GOVERNING LAW AND JURISDICTION

This Agreement shall be governed by and construed in accordance with the laws
of England & Wales and the parties hereto submit to the jurisdiction of the
courts of England & Wales.

19. ENTIRE AGREEMENT

This Agreement contains the entire agreement of the parties with respect to the
matters covered in it and no other or prior promises, representations,
agreements, negotiations or discussions, oral or written, made by either party
or its employees, officers or agents shall be valid or binding.

20. COUNTERPARTS

This Agreement may be executed in separate counterparts, which together shall
be construed as a single instrument.

IN WITNESS whereof the parties or their respective duly authorised
representatives have executed this Agreement as of the day and year first
before written.

	 	 	 	 	 	 	 
	Signed by H.W. Bromley, Director	 	 	
	)	 	 
	for and on behalf of	 	 	
	)	 	 
	Bromley Accounting Services
Ltd in the presence of:—
	 	 	
		 	 
	 
	/s/ G. J. Coogan	 	 	 	)	 	/s/ H. W. Bromley
	
	 	 	
	 	 	

	Witness	 	 	 	 	 	 
	 
	Signed by T. M. Williams, President & CEO	 	 	 	)	 	 
	for and on behalf of	 	 	
	)	 	 
	BINGO.COM, Inc. in the
presence of:—	 	 	
	)	 	 
	 
	/s/ G. J. Coogan	 	 	 	)	 	/s/ T. M. Williams
	
	 	 	
	 	 	

	Witness	 	 	 	 	 	 
	 
	Signed by	 	 	
	)	 	 
	H. W. Bromley	 	 	
	)	 	 
	In the presence of:—	 	 	
	)	 	 
	 
	/s/ G. J. Coogan	 	 	 	)	 	/s/ H. W. Bromley
	
	 	 	
	 	 	

	Witness	 	 	 	 	 	 

-49-

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