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Exhibit 10.6
AGREEMENT FOR CONSULTING SERVICES
AGREEMENT made and entered into as of this 11th day of May, 2004 (the
"Agreement"), by and. between El Capitan Precious Metals, Inc. a Nevada
corporation (the "Company") with principal offices in Englewood, Co. and U.S.
Canadian Minerals, Inc. ("Consultant"). Whereas, the Consultant is in the
business of providing advice, management, and financial services to companies
and the Company believes such experience is in its best interest to utilize, and
Whereas, the Company formally desires to engage Consultant to continue to
provide such services in accordance with the terms and conditions hereinafter
set forth;
Now, therefore, the Company and Consultant agree as follows;
1. Engagement. The Company agrees to engage Consultant and Consultant agrees to
provide advice, management, and financial services to the Company. The Company's
board of directors has approved such appointment of Consultant. The company
acknowledges and agrees that Consultant does not render legal, accounting or
underwriter/broker advice and agrees to seek outside counsel for such matters.
2. Term. The term of this agreement shall comet cc on the date hereof and shad
continue for a period of two ( 2 ) years,
3. Services. Consultant shall render advice and assistance to the Company on
business related matters (the "Services") and in connection there with shall:
(a)cause its principals to attend meetings of the Company's Board of
Directors or Executive Committee(s) when so requested by the Company;
(b)cause its principals to attend meetings at the request of the Company
and review, analyze and report on proposed business opportunities;
(c)consult with the Company concerning on-going strategic corporate
planning and long term investment policies, including any revision of the
Company's business plan;
(d)consult with, advise and assist the Company in identifying, studying
and evaluating merger, acquisition, joint venture, strategic alliance,
recapitalization and restructuring proposals, including the preparation of
reports and studies thereon when advisable, and assist in negotiations and
discussions pertaining thereto;
(e)assist the Company in obtaining technical and advisory assistance from
other professionals where necessary or advisable, including, but not limited to
attorneys and accountants and assist such persons;
(f)assist in the preparation and distribution of press releases, whenever
appropriate, to be made available to the press in general, customers, suppliers
and selected NASD broker-dealers, financial institutions, and the Company's
shareholders;
(g)assist in the preparation and distribution of corporate brochures and
research reports to selected NASD broker-dealers, financial institutions, and
the Company's shareholders;
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(h)assist the Company in implementing its financial public relations
program, including, but not limited to distribution of collateral material to
broker-dealer firms;
(i)provide the Company with advice related to aforementioned activities.
In connection with the Services to be rendered by Consultants Consultant shall
report to the Board of Directors and President of the Company and shall consult
with those individuals on behalf of the Company in connection with its
obligations act forth above. Consultant agrees to make itself available to
evaluate all proposals that relate to any financing undertaken by the Company,
subject to the limitations of Section 5 and 7 hereof..
Anything to the contrary herein notwithstanding, it is agreed that the
Consultant's Services will not include any services that constitute opinions or
performance of work that is in the ordinary purview of certified public
accountant or attorney or any work that is the ordinary purview of a registered
broker/dealer or in connection with or related to the offer or sale of
securities of the Company in a capital raising transaction.
4. Compensation.
(a) The Company shall cause to be issued to the Consultant, for the
above services warrants exercisable for a period of one year for $1,000,000
shares at a price of $0.43 per share.
5. Best Efforts Basis. Subject to Section 7 and the last sentence of Section 5
hereof, Consultant agrees that it will at all times faithfully and to the best
of its experience, ability and talents perform. all the duties that may be
required of it pursuant to the terms of this Agreement. The Company specifically
acknowledges and agrees, however, that the services to be rendered by Consultant
shall be conducted on a "best-efforts" basis and has not, cannot and does not
guarantee that its efforts will have any impact on the Company's business or
that any subsequent financial improvement will result from its efforts.
6. Company's Right to Approve Transaction. The Company expressly waives the
right to approve transactions introduced by Consultant that involves the Company
as a party to any agreement, Consultant and ,the Company mutually agree that
Consultant is hereby authorized to enter any agreement on behalf of the Company.
7. Non-Exclusive Services. The Company understands that Consultant is currently
providing certain advisory and financial public relation services to other
individuals and entities agrees that Consultant is not prevented or barred from
rendering services of the same nature or a similar nature to any other
individuals or entities and acknowledges that such Services may from time to
time conflict with the timing of and the rendering of Consultant's services. In
addition! Consultant understands and agrees that the Company shall not be
prevented or barred from retaining other persons or entities to provide services
of the same or similar nature as those provided by Consultant.
8. Information Regarding Company, Consultant represents and warrants that it has
received copies of the Company's financial statements and other disclosure
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