Exhibit 4.10
CONSULTING AGREEMENT
Agreement made as of the 23rd day of April 2004 between China Wireless
Communications, Inc. (hereinafter referred to as "Company"), and Xxxxxxx Xxxx
(hereinafter referred to as "Consultant"):
Company desires to engage Consultant to perform certain consulting
services for Company and Consultant desires to perform such services on the
terms and conditions set forth below.
NOW THEREFORE, in consideration of the premises hereof and of the mutual
promises and agreements contained herein, the parties hereto, intending to be
legally bound, do hereby agree as follows:
1. Engagement; Scope of Services.
Company hereby engages Consultant to assist Company in developing its
internal Investor Relations function, to be performed by the Company. Consultant
shall advise on matters of establishing and managing investor, media, broker,
market maker, and analyst contacts. Consultant shall advise Company on matters
such as making its management, corporate development, financial situation and
prospects better known to the financial media, financial publications,
broker-dealers, mutual funds, institutional investors, market makers, analysts,
investment advisors and other members of the financial community as well as the
public general. Consultant shall also develop proper promotional materials
catered to the investment community that may consist of fact sheets, executive
summary, milestones, etc. The engagement by Company of Consultant under this
Agreement is non-exclusive and shall not limit Company's right to engage other
persons (including but not limited to consultants and analysts) to conduct
activities on behalf of Company. During the term of this Agreement Consultant
may not perform comparable services for any person or entity involved in similar
businesses in which Company (or any of its subsidiaries or affiliates) is
engaged.
2. Duties and Responsibilities of Consultant.
2.1. Consistent with Consultant's experience and expertise in
dealing with the financial market, Consultant shall advise and consult with
Company's representatives or affiliated representatives on such subjects,
meeting with them from time to time at the request of Company. Consultant shall
advise, make recommendations, introduce and project the corporate image, analyze
the competitive edge, present the corporate and marketing strategies as well as
the financial projections of the Company as devised by Consultant, offer ideas
to promote the products and services of the Company and generally advise the
Company on similarly related matters.
2.2 Consultant's duties hereunder shall include, but not be
limited to, (as such pertains to the Asian/Pacific Rim market):
2.2.1 Recommendation and Preparation of corporate strategies
and competitive analysis;
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2.2.2 Advise the Board and executives of the Company on
financial activities;
2.2.3 Promote and enhance the corporate image of the Company;
and
2.2.4 Provide corporate analysis.
2.3. Consultant shall submit and identify to Company all contacts
for possible business relationships; however, Consultant shall inform such
contacts that no obligation is created on the part of Company by virtue of such
submission.
2.4 Consultant shall devote such time as, in the sole discretion
of the Consultant, to the performance of his duties, is needed to fulfill his
duties under all of the terms and conditions of this Agreement. 2.5. Both
parties intend this Agreement to be a personal contract and Consultant shall not
assign or delegate any rights, duties or obligations arising under this
Agreement to a third parties without the prior written consent of Company, which
consent may be withheld in Company's sole discretion.
3. Representations, Warranties, Covenants, and Agreements of Consultant.
3.1. Representations and Warranties. Consultant hereby represents
and warrants to Company as follows:
(a) Consultant is familiar with all aspects of the Company's
market in Asia and the Pacific Rim. Consultant acknowledges that it is the
policy of Company to comply fully with all applicable laws and regulations of
the United States and all jurisdictions in which it does business, and
Consultant warrants that he will not take any action which would constitute a
violation of any law of any jurisdiction in which he performs services or of the
United States.
(b) The execution and performance of this Agreement by Consultant
will not violate, or result in a default under, any agreement, law, statute,
regulation, or other authoritative rule of any governmental body to which
Consultant is a party or by which Consultant is bound.
(c) There is no restriction upon Company disclosing to any person
or entity (i) that Company has the relationship with Consultant provided for in
this Agreement, (ii) that Consultant is to receive from Company compensation in
connection with the performance of services hereunder, (iii) the amount of that
compensation, or (iv) the terms upon which payment has been or will be made.
(d) This Agreement, when executed, will constitute the valid and
legally binding obligation of Consultant, fully enforceable against him in
accordance with its terms. The execution and performance of this Agreement by
Consultant will not violate any constitutional provisions, statutes, ordinances,
regulations, tax codes, or other laws of the United States or any other Country.
(e) The services of the Consultant to be performed for the Company
as set forth herein (i) are not in connection with the offer or sale of the
Company's securities in a capital raising transaction and (ii) do not directly
or indirectly promote or maintain a market for the Company's securities.
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(f) Consultant acknowledges that he is waiving his right to cash
compensation and accepting the remuneration set forth herein in lieu thereof,
and is aware of the risks related thereto.
(g) Consultant acknowledges that the Consultant has been afforded
the opportunity to ask questions of and receive answers from duly authorized
officers or other representatives of the Company concerning an investment in the
Company, and any additional information which the Consultant has requested.
(h) Consultant's investment in securities is reasonable in
relation to the Consultant's net worth. Consultant has had experience in
investments in restricted and publicly traded securities, and Consultant has had
experience in investments in speculative securities and other investments which
involve the risk of loss of investment. Consultant acknowledges that an
investment in the Company is speculative and involves the risk of loss.
Consultant has the requisite knowledge to assess the relative merits and risks
of this investment without the necessity of relying upon other advisors, and
Consultant can afford the risk of loss of his entire investment in the Company.
Consultant is either (i) a sophisticated investor with such knowledge as is
necessary to make an informed investment decision or (ii) an accredited
investor, as that term is defined in Regulation D promulgated under the
Securities Act of 1933.
(i) Consultant is acquiring the Shares for the Consultant's own
account for long-term investment and not with a view toward resale or
distribution thereof except in accordance with applicable securities laws.
(j) Consultant has consulted with his own attorney regarding this
Agreement and legal matters concerning the Company and with his tax advisor
regarding the tax consequences of acquiring the Shares.
3.2 Covenants and Agreements. Consultant hereby covenants with
Company and agrees as follows:
(a) Consultant shall not make use of any agent or consultant
connection with the performing of any of his duties hereunder without the prior
written approval of an authorized executive officer of Company. Notwithstanding
anything to the contrary in this Agreement, Consultant may delegate
administrative duties (including data processing and other ministerial
functions) to third parties, so long as such third parties are informed of, and
agree to be bound by, the provisions hereof.
(b) Consultant shall not hold himself out, directly or by
implication, as being an employee or contracting agent of Company.
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(c) Consultant shall not make any representation, directly or by
implication that the Company has any obligation to any third party with respect
to the payment of any of the payments to be made to Consultant hereunder.
(d) In the performance of this Agreement, neither Consultant nor
any employee or agent of Consultant shall, except as approved in writing in
advance by Company, offer to pay, pay, promise to pay, or authorize the payment
of, any money, or offer to give, give, promise to give, or authorize the giving
of, anything of value, directly or indirectly, to any third person or entity.
(e) Consultant hereby authorizes Company to disclose to any
governmental authority that properly requests such disclosure or as is required
pursuant to any applicable rule or law, (i) this Agreement, (ii) the amount of
any compensation paid to Consultant hereunder, and the terms and manner of such
payment, and (iii) such other information as may be required by law or
regulation. Consultant agrees to provide to Company in a timely manner, any
information necessary for Company to make such disclosure.
(f) In performance of this Agreement, Consultant shall fully
comply with all applicable laws governing the transactions undertaken, including
without limitation all United States Federal and State securities laws.
(g) Consultant shall inform Company immediately if any
representation, warranty, covenant, or agreement contained herein is no longer
accurate.
4. Compensation.
Except as expressly provided herein, neither Company nor any parent,
subsidiary, or affiliate of Company or joint venture in which Company may have
an interest, shall be liable for any payment to Consultant. Company shall pay to
Consultant, during the term of this Agreement, the sum of Thirty Five Thousand
($35,000) Dollars, payable as follows: Seventeen Thousand Five hundred ($17,500)
dollars upon execution of this Agreement, to be delivered to consultant as soon
as possible by reputable overnight courier; and, Seventeen Thousand Five Hundred
($17,500) dollars upon the 120th calendar day following the execution of this
Agreement. Consultant agrees that the foregoing compensation shall be payable by
the Company in shares of the Company's Common Stock (the "Shares") valued at
$.60 per share, and issuable as set forth above.
5. Apportionment of Expenses: Right To Audit.
5.1. Consultant shall be reimbursed by the Company for all
reasonable pre-approved expenses incurred by Consultant in the performance of
his duties, as set forth in Paragraph 2.2, above.
5.2. Requests by Consultant for reimbursement of expenses must be
accompanied by an itemization of such expenses.
5.3. All compensation and expense reimbursements are subject to
audit by Company upon request by Company and Consultant agrees to cooperate
fully with Company in the event of such a request.
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6. Term and Termination.
6.1. Term. The term of this Agreement (the "Term") shall commence
on the date of this Agreement and shall continue for a period of nine months,
terminable as set forth in Section 6.2 below.
6.2. Termination Rights.
(a) This Agreement may be terminated at any time without notice by
Company (i) for illegal acts or willful neglect on the part of Consultant or
Consultant's agents or Consultants, (ii) in the event any representation,
warranty, covenant, or agreement of Consultant contained in this Agreement shall
prove to be false, or inaccurate in whole or in part. In the event this
Agreement is terminated pursuant to the previous sentence, all of the Company's
obligations shall immediately cease and no severance pay shall be payable, nor
future payments (if any) due as set forth herein but not yet paid, by Company to
Consultant upon Consultant's termination under the this subsection, regardless
of the reason of such termination. In the event the Consultant terminates this
Agreement without cause the Consultant shall not be entitled to any payments
after such date.
(b) Upon the termination of this Agreement for any reason
whatsoever, all Information (as defined below), documents, records, notebooks,
equipment, price lists, specifications, programs, customer and prospective
customer lists and other materials which refer or relate to any aspect of the
business of the Company which are in the possession of the Consultant including
all copies thereof, shall be promptly returned to the Company.
7. Indemnification.
Consultant shall defend, indemnify and hold harmless Company and its
officers, directors, Consultants, agents, parent, subsidiaries and other
affiliates, from and against any and all damage, cost, liability, and expense
whatsoever (including attorney's fees and related disbursements) incurred by
reason of (a) any failure by Consultant to perform any covenant or agreement of
Consultant set forth herein, or (b) any breach by Consultant of any
representation, warranty, covenant or agreement contained herein. Company shall
have the right to offset against any fees or commissions due Consultant for any
damage, cost, liability, expense, fee or other disbursement incurred by Company
pursuant to this Section.
8. Independent Status of Consultant.
This Agreement establishes the rights, duties, and obligations of
Company and Consultant, and does not create an employer-Consultant or agency
relationship between Company, or any entity affiliated with Company, and
Consultant, or any of Consultant's agents. Consultant acknowledges and agrees
that Consultant is an independent contractor to Company and Consultant shall not
act as an agent of Company. As an independent contractor, Consultant shall be
responsible for any social security taxes, insurance, and any other taxes or
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fees that are applicable to him and his Consultants and agents pursuant to the
tax laws of the United States, or any state, thereof or any similar requirements
of any other country.
9. Promotional Materials.
From time to time, Company may furnish Consultant with such promotional
data, materials and technical information as Company deems necessary for
Consultant to have in the performance of her duties hereunder. Consultant shall
use such materials in furtherance of the objectives of this Agreement and shall
not disseminate the same except as set forth in Section 13.
10. Governing Law.
This Agreement shall be exclusively governed by, and its terms and
conditions shall be exclusively construed and enforced in accordance with the
domestic laws of the State of Colorado of the United States of America excluding
its principle of conflicts of laws and the parties hereto and the parties hereby
irrevocably submit to the exclusive jurisdiction and venue of the courts of the
State of Colorado to resolve any disputes arising hereunder or related hereto.
Consultant hereby consents and agrees that the Courts in the State of Colorado
are the exclusive forum for litigation of any claim by Consultant arising under
this Agreement. Consultant hereby irrevocably waives and relinquishes any right
to bring or cause to be brought a claim in any judicial or administrative forum
located outside of the State of Colorado of the United States of America.
11. Assignment.
Neither this Agreement nor any money due or to become due hereunder may
be assigned, in whole or in part, by Consultant without the prior written
consent of Company, which consent may be withheld in Company sole discretion.
12. Notices.
All notices or other communications required or permitted to be given
hereunder shall be (as elected by the person giving such notice) (a) personally
delivered, (b) transmitted by postage prepaid registered mail (airmail if
international), or (c) transmitted by telex, with postage prepaid mail
information (airmail if international), to the parties as follows:
12.1 If to Company: China Wireless Communications, Inc.
0000 Xxxx Xxxxxxxxx, Xxxxx 000
Xxxxxx, Xxxxxxxx 00000-0000
Telephone: 000.000.0000
Facsimile: 303.278.0092
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12.2 If to Consultant: Xxxxxxx Xxxx
00 Xxxxx Xxxxxx, Xxxxx Xxxxx 0xx
Xxxxx, Xxxx Xxxx.
Telephone: 000-00000000
Facsimile: 852-28691964
Except as otherwise specified herein, all notices and other
communications shall be deemed to have been given on the date of receipt if
delivered personally, three (3) business days after posting if transmitted by
mail, or the date of transmission with confirmation of successful transmission
if transmitted by telex. Any party hereto may change its address for purposes
hereof by written notice to the other party.
13. Use of Information and Non-Solicitation.
Any information including, but not limited to, data, business
information, technical information, specifications, drawings, sketches, models,
samples, tools, promotional material, computer programs and documentation,
written, oral or otherwise together with analyses, compilations, comparisons,
studies or other documents prepared by, or given by the Company to the
Consultant which contain or reflect such information (all hereinafter designated
"Information") or in contemplation hereof shall remain Company property or the
property of the Company subsidiary or affiliate which furnished the Information
to Consultant. All copies of such Information in written, graphic or other
tangible form shall be returned to Company or such Company subsidiary or
affiliate upon request and immediately upon termination of this Agreement. The
Information shall be kept confidential by Consultant and shall be disclosed only
upon the prior written consent of Company. The Information and any findings,
reports, questionnaires, or other results of this Agreement shall be the
exclusive property of Company including title to copyright in all copyrightable
material and shall be considered a "work made for hire" in accordance with the
copyright statute.
The Consultant hereby agrees that he shall not, during the term of this
Agreement and for a period of one (1) year following such term, directly or
indirectly, take any action which constitutes an interference with or a
disruption of any of the Company's business activities including, without
limitation, the solicitations of the Company's customers, or persons listed on
the personnel lists of the Company. At no time during the term of this Agreement
and for a period of one (1) year following such term shall the Consultant
directly or indirectly, disparage the commercial, business or financial
reputation of the Company.
For purposes of clarification, but not of limitation, the Consultant
hereby acknowledges and agrees that the provisions of subparagraphs above shall
serve as a prohibition against him, during the period referred to therein,
directly or indirectly, hiring, offering to hire, enticing, soliciting or in any
other manner persuading or attempting to persuade any officer, employee, agent,
lessor, lessee, licensor, licensee or customer who has been previously contacted
by either a representative of the Company, including the Consultant to
discontinue or alter his, her or its relationship with the Company.
The parties hereto hereby acknowledge and agree that (i) the Company
would be irreparably injured in the event of a breach by the Consultant of any
of his obligations under this Section, (ii) monetary damages would not be an
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adequate remedy for any such breach, and (iii) the Company shall be entitled to
injunctive relief, in addition to any other remedy which it may have, in the
event of any such breach.
14. Miscellaneous.
(a) This Agreement constitutes the entire understanding of the
parties concerning the subject matter hereof, and supersedes all prior
agreements and understandings, whether written, oral or otherwise, between the
parties, and may be altered or amended only in a writing signed by both parties.
Except as otherwise expressly provided herein, no purported waiver by any party
of any breach by the other party of its obligations, representations,
warranties, agreements or covenants hereunder shall be effective unless made in
a writing, and no failure to pursue or elect any remedy with respect to any
default under or breach of any provisions of this Agreement shall be deemed to
be a waiver of any subsequent, similar or different default or breach.
(b) If any provision contained in this Agreement is hereafter
construed to be invalid or unenforceable, the same shall not affect the
remainder of the covenant or covenants, which shall be given full effect,
without regard to the invalid portions. If any provision contained in this
Agreement is found to be unenforceable by reason of the extent, duration or
scope thereof, or otherwise, then the court making such determination shall have
the right to reduce such extent, duration, scope or other provision and in its
reduced form any such restriction shall thereafter be enforceable as
contemplated hereby.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first written above.
Consultant
/s/ XXXXXXX XXXX
--------------------
Xxxxxxx Xxxx
China Wireless Communications, Inc.
By: /s/ XXXX XXXXX
--------------------------------
Xxxx Xxxxx, Interim President
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