CONSULTING AGREEMENT
THIS AGREEMENT (the "Agreement"), is made and entered into as of this day
of February 25, 2001, by and between Xxxxx X. Xxxxxxxx, with offices at 0000
Xxxx Xxx Xxxxx, Xxxxxxxx Xxxxxxxx, Xxx Xxxxxx 00000 ("Consultant") and FONECASH,
INC., with offices at 00 Xxxx Xxxxxx, Xxxxx 0000, Xxx Xxxx, XX 00000 ("Company")
(together the "Parties").
WHEREAS, the Company is desirous of obtaining financial advice and business
consulting services (hereinafter, the "Services");
WHEREAS, Consultant is experienced in providing financial advice and
business consulting services;
NOW, THEREFORE, in consideration of the mutual promises and covenants
herein contained, and other valid consideration, receipt of which is hereby
acknowledged, the Parties agree as follows:
1. Nature of Services to be Rendered.
Consultant shall provide the Company with consulting services, including,
but not limited to, advising on business strategy and business consulting
services concerning, but not limited to:
(i) providing long-term business managerial and financial planning;
(ii) investigating and analyzing corporate reorganization and expansion,
and merger/acquisitions opportunities; and,
(iii) introduce business opportunities for the Company's products and
processing services.
2. Term of Agreement and Renewal.
The Agreement shall remain in effect from the date of execution hereof
through the expiration of a one year period, and may be renewed upon the mutual
consent of the Parties.
3. Compensation.
As compensation for his consulting services rendered hereunder, the
Company, shall issue to the Consultant 400,000 shares of the Company's common
stock, par value per share.
4. Warranties and Representations of the Consultant.
In order to induce the Company to enter into this Agreement, the Consultant
hereby makes the following unconditional warranties and representations:
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(a) Consultant is not now a party to a consulting agreement with any other
corporation or entity involved in a business which is the same as or similar to
the Company's.
(b) Consultant is permitted to provide consulting services to any
corporation or entity engaged in a business identical or similar to the
Company's, provided, however, that the Consultant shall keep confidential all
information it receives from the Company which is of a confidential or
proprietary nature, without disclosure to or for the benefit of any third
parties.
5. Warranties and Representations of the Company.
In order to induce the Consultant to enter into this Agreement, the Company
hereby makes the following unconditional warranties and representations:
(a) The Company acknowledges that Consultant does not guarantee its ability
to cause the consumption of any contract or merger or acquisition with any
corporate candidate.
6. Issuance of Stock Certificate to Consultant.
The Company shall cause to be issued and delivered to Consultant the Stock
Certificate bearing the signatures of its President and Secretary. The Company
shall take all corporate action necessary for the Stock Certificate issuance to
be legally valid and irrevocable, including obtaining the prior unanimous
written consent of its Board of Directors.
7. Registration Obligations.
The Company expressly agrees to register, with the Securities and Exchange
Commission, the shares of common stock in a registration statement on Form S-8
if, and, when available (and all related qualifications under the state
securities laws).
If the Company proposes to register any of its securities under the
Securities Act of 1933, as amended, for sale to the public, whether for its own
account or for the account of other security holders or both (except with
respect to registration statements on Forms X-0, X-0 and any successor forms
thereto), each such time it will give written notice to such effect to the
Consultant at least 30 days prior to such filing. Upon the written request of
the Consultant received by the Company within 20 days after the giving of any
such notice by the Company.
Notwithstanding the foregoing, in the event that any registration shall be, in
whole or in part, an underwritten public offering of common stock, the number
shares of common stock to be included in such an underwriting may be reduced pro
rata among the Consultant and the other selling stockholders and if and to the
extent that the managing underwriter shall be of the good faith opinion that
such inclusion would adversely affect the success of such an underwriting, shall
be excluded from the offering provided, that such number of shares of common
stock shall not be excluded if any shares of common stock are to be included in
such underwriting for the account of any person other then the Company.
Notwithstanding the foregoing provisions, the Company may withdraw any such
registration statement without thereby incurring any liability to the Consultant
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8. Expense Reimbursement.
Consultant shall be entitled to receive cash reimbursement, and the Company
shall provide cash reimbursement, of all cash expenses paid by Consultant on
behalf of the Company in performance of his duties hereunder. Such expenses
shall include without limitation expenses for communications and travel. In no
event, however, will Consultant incur on behalf of the Company an expense in
excess of $500 without the prior written consent of the Company.
9. Indemnification of Consultant by the Company.
The Company shall indemnify and hold harmless Consultant from and against
any and all liabilities and damages in connection with the Company's ownership
and operation and, without limiting the foregoing, shall pay the Consultant's
legal fees and expenses if Consultant is named as a defendant in any proceedings
brought in connection with the services provided hereunder.
10. Indemnification of the Company by the Consultant.
Consultant shall indemnify and hold harmless the Company and its principals
from and against any and all liabilities and damages arising out of actions
taken by Consultant in connection with his services as consultant, which actions
were not authorized by the Company.
11. Arbitration.
Any and all conflicts, disputes and disagreements arising out of or in
connection with any aspect of the Agreement shall be subject to arbitration in
accordance with the rules of The American Arbitration Association then in
effect. Written Notice of Dispute shall be served by either Party upon the other
Party at its address set forth herein or such other address as it shall have
provided in writing for that purpose, and the arbitration date shall be set no
later than two months from the date such Notice is served. The dispute shall be
submitted to The American Arbitration Association in the headquarters nearest to
the Company's office. The Parties designate any State or Federal court in the
State of New York as the court in which any arbitration award shall be subject
to confirmation, and will abide by such confirmation.
12. Entire Understanding incorporation of other Documents.
This Agreement contains the entire understanding of the Parties with regard
to the subject matter hereof, superseding any and all prior agreements or
understandings whether oral or written, and no further or additional agreements,
promises, representations or covenants may be inferred or construed to exist
between the Parties.
13. No Assignment or Delegation Without Prior Approval.
No portion of the Agreement or any of its provisions may be assigned, nor
obligations delegated, to any other person or party without the prior written
consent of the Parties except by operation of law or as otherwise set forth
herein.
14. Survival of Agreement.
The Agreement and all of its terms shall inure to the benefit of any
permitted
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assignees of or lawful successors to either Party.
15. No Amendment Except in Writing.
Neither the Agreement nor any of its provisions may be altered or amended
except in a dated writing signed by the Parties.
16. Waiver of Breach.
No waiver of any breach of any provision hereof shall be deemed to
constitute a continuing waiver or a waiver of any other portion of the
Agreement.
17. Severability of the Agreement.
Except as otherwise provided herein, if any provision hereof is deemed by
arbitration or a court of competent jurisdiction to be legally unenforceable or
void, such provision shall be stricken from the Agreement and the remainder
hereof shall remain in full force and effect.
18. Governing Law.
The Agreement and its provisions shall be construed in accordance with and
pursuant to, and governed by, the laws of the State of New York, as applicable
to agreements to be performed solely within the State of New York. without
regard to its conflict-of-laws provisions then in effect.
19. No Construction Against Drafter.
The Agreement shall be construed without regard to any presumption or other
rule requiring construction against the Party causing the drafting hereof.
IN WITNESS WHERE OF, the Parties have executed the Agreement as of the date
first above written.
Consultant
By: /s/ XXXXX X. XXXXXXXX
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Xxxxx X. Xxxxxxxx
FONECASH, INC.
By: /s/ XXXXXX X. XXXXXXXXXX
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Xxxxxx X. Xxxxxxxxxx
President
