CONSULTING
AGREEMENT
This Consulting Agreement (the
“Agreement”) is made and entered into this day April
15, 2006, by and between Allegiant Capital Group Inc., whose
principal place of business is Conference Plaza, Suite 253 –
515 West Pender Street, Vancouver, B.C. V6B 1V5, (the
“Consultants”), and Essential Innovations Technology
Corp. (the “Client”), whose principal place of business
is 114 West Magnolia Street, Suite 400-142 Bellingham, WA USA
98225.
RECITALS
(a) The Consultant is engaged in the business of
providing various consulting services for and on behalf of clients
whose equity securities are publicly traded. The Consultants’
services on behalf of clients includes interactions with
broker/dealers, strategic communication programs, industry
awareness, marketing, corporate image advertising, business
development and strategy, and evaluation of corporate compensation
policies. In accordance with and subject to rules, regulations and
policies of the Securities and Exchange Commission, the Consultant
may additionally provide certain services on behalf of the clients
over the Internet.
(b) The
Client is a company with a class of equity securities that is
publicly traded on one or more markets or exchanges. The Client
desires to retain the Consultant as an independent consultant for
various consulting services, including interactions with
broker/dealers, strategic communication programs, industry
awareness, marketing, corporate image advertising, business
development and strategy, and evaluation of corporate compensation
policies.
AGREEMENT
NOW THEREFORE, in consideration of
the mutual promises and agreements set forth herein, and other good
and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
I. CONSULTING SERVICES
The Client hereby retains the
Consultant as independent consultant to the Client and the
Consultant hereby accepts and agrees to such retention. The
Consultant shall provide to the Client consulting services as may
be requested by the Client, including activities such
as:
1. Financial
public relations and promotional services (the foregoing
collectively referred to as the “Consulting
Services”).
2. Distribution
of information concerning the Client to registered representatives
of broker/dealers, and other persons, who the Consultant
determines, in its sole discretion, are capable of effectively
disseminating such information to the general public.
3. Strategic
communication programs, industry awareness, marketing, national
advertising, and complete corporate fulfillment.
Consulting services will also
include advice and direction in relation to:
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(a)
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Corporate image advertising so as to
increase the visibility of the Client;
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(b)
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Business development and business
strategy;
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(c) Corporate
compensation policies; (the foregoing collectively referred to as
the “Consulting Services”).
The Consulting services that the
Consultant shall provide to the Client are on a best efforts basis.
Consultant makes no representation, warranty or guarantee that as a
result of Consulting Services the Client’s image will
improve, the Client’s business will increase, or that the
Client’s stock price and volume of shares traded will
increase.
Certain Strategies and
Responsibilities of the Consultant in preparation of attempting to
provide liquidity and in meeting the “Consulting
Services” are to:
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1.
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Raise the visibility of the company
within the financial community and business media,
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2.
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Develop communications in
preparation for the Company coverage
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3.
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Produce a Research Report
highlighting the Company, and
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4.
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Develop strategies and plans for
investor relations’ activities.
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Strategies included:
1. Contacting
key analysts and portfolio managers through group and one-on-one
meetings, investor conferences and a direct mail
campaign,
2. Work
with senior management to formalize an I.R. strategy, outlining
activities to effectively manage the consistent flow of accurate
information to a continually evolving shareholder base, potential
investors and the media.
The Consultant has compiled
comprehensive market information, forecasts, and geographic
analysis to provide insight from the outside with a complete
picture of the market environment for Essential. This information
will be presented to the Consultant’s network through
research reports. Custom consulting services use a rich base of
industry expertise to identify market opportunities, highlight
risk, and help clients to develop and refine their strategic
plan.
The Consultant will:
(e) Gather
all material information relating to the Client and confer with the
officers and directors of the Client and provide those Consulting
Services as may from time to time be requested by the
Client.
(f) In
accordance with rules, regulations and policies of the Securities
and Exchange Commission, the Consultant will make available all
public information concerning the Client to the financial community
whom the Consultant determines in its sole discretion are capable
of effectively disseminating public information concerning Client
to the general public, and make available to the general public,
information concerning the Client through the Internet on a website
developed, updated and maintained by the Consultants.
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Further detail of the services to be
provided by the Consultant to the Client are as provided in
Addendum “B” to this Agreement, which represents
appropriate excerpts from an initial proposal given to the Client
from the Consultant.
II. TIME, MANNER AND PLACE OF
PERFORMANCE
The Consultant provides services
similar to those provided for herein to other publicly traded
companies. The Client agrees that the Consultant does not and shall
not be required to devote their full time and efforts to the
Client. The Consultant shall devote such time to the Client as is
reasonable and necessary to provide the Consulting Services to
Client. Consultant shall be available for advice and counsel to the
officers and directors of the Client at such reasonable and
convenient times and places as may mutually be agreed
upon.
III. TERM OF THE AGREEMENT
The term of this Agreement shall be
twelve months, commencing April 15, 2006 and terminating, April 14,
2007 (the “Term”), subject however, to prior
termination, by either party, as provided in Section XI of this
Agreement. This and Agreement may be terminated effective the last
day of the month in which any party gives at least (30) days’
prior written notice to the other that it is terminating this
Agreement.
IV. COMPENSATION
In consideration of the Consulting
Services to be provided to the Client by the Consultants, it is
hereby agreed there is to be compensation to the Consultant as
follows:
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Remuneration Schedule:
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$50,000 USD Engagement Fee for the 12 month term
of the Agreement + 600,000 shares of 144 stock
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Additional consulting fees to be paid as
follows:
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For the 12 months of the service Agreement,
Consultant will be paid 100% in shares (Rule 144), equal to $10,000
CDN/month to be converted at the Closing price at the date of this
Agreement
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The Client will grant Consultant the
option to purchase 250,000 shares of the Client’s common
stock (the “Option Shares”)
250,000 Stock options priced at
$0.50 issued to Consultant on signing.
V. EXPENSES
Any special or extraordinary
expenses and disbursements shall have the Client’s prior
written approval as it is imperative to be clear with the fact that
this clause refers only to those expenses considered over and above
standard operational requirements, and that the engagement fee of
$50,000 does, will, and is, expected to include all costs of the
program.
VI. DISCLOSURE OF INFORMATION
The Consultant recognizes and
acknowledges that it has and will have access to certain
confidential information of the Client’s and of its
affiliates that are valuable, special and unique assets and
property of the Client and such affiliates (“Confidential
Information”). The Consultant
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will not, during and after the term
of this Agreement, disclose, without the prior written consent or
authorization of the Client, any Confidential Information to any
person, except authorized representatives of the Consultant or its
affiliates, for any reason or purpose whatsoever. In this regard,
the Client agrees that such authorization or consent to disclose
may be conditioned upon the disclosure being made pursuant to a
secrecy agreement, protective order, provision of statute, rule,
regulation or procedure under which the confidentiality of the
information is maintained in the hands of the person to whom the
information is to be disclosed or in compliance with the terms of a
judicial order or administrative process. Any information which has
been disclosed to the public by the Client or upon the
authorization of the Client shall not be considered Confidential
Information
VII. NATURE OF RELATIONSHIP
(a) Nothing
in this Agreement shall render any party a general partner of the
other. Except as set forth in this Agreement, no party is nor shall
be a general agent for the other and no party is given authority to
act on behalf of the other. The Consultant is retained by the
Client in an independent capacity and except as set forth in this
Agreement, Consultant shall not enter into any agreement or incur
any obligation on behalf of the Client.
(b) The
Client acknowledges and agrees that the Consultant owes no
obligation or duty to Client as a result of Client’s payment
of the consulting fees to Consultants. The Consultant is rendering
the Consulting Services solely to the Client and solely for the
benefit of the Client.
VIII. CONFLICT OF INTEREST
This Agreement is non-exclusive. The
Consultant shall be free to perform services for other companies
and persons. Consultant will use its best efforts to avoid
conflicts of interest. Client agrees that it shall not be a
conflict of interest that Consultant devotes time and resources to
companies and persons other than Client. In the event that
Consultant believes a conflict of interest has arisen which may
affect the performance of the Consulting Services for Client,
Consultant shall promptly notify the Client of such conflict. Upon
receiving such notice, the Client may terminate this Agreement
pursuant to Section XIII. Failure to terminate this Agreement
within 30 days of notification of any conflict of interest shall
constitute the Client’s ongoing consent to the
Consultant’s continued activities, which would be in conflict
with Client.
IX. INDEMNIFICATION
(a) The
Client agrees to indemnify and hold harmless the Consultant and
each officer, director and controlling person of the Consultant
against any losses, claims, damages, liabilities and/or expenses
(including any legal or other expenses reasonably incurred in
investigating or defending any action or claim in respect thereof)
to which the Consultant or such officer, director or controlling
person may become subject, including those under the Securities Act
of 1933 as amended or the Securities Exchange Act of 1934 as
amended, because of actions of the Client or its agent,
Client’s material publicly available to the Consultants, or
material provided to Consultant by Client for use by Consultant in
its performance under this Agreement.
(b) The
Consultant agrees to indemnify and hold harmless the Client and
each officer, director and controlling person of the Client against
any losses, claims, damages, liabilities and/or expenses (including
any legal or other expenses reasonably incurred in
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investigating or defending any
action or claim in request thereof) to which the Client or such
officer, director or controlling person may become subject,
including those under the Securities Act of 1933 as amended or the
Securities Exchange Act of 1934 as amended, because of actions of
the Consultant or its agent(s).
X. TRADING IN CLIENT’S
SECURITY
During the term of this Agreement,
except for the sale of the Shares received by Consultant under this
Agreement, neither the Consultant nor any of its officers,
directors or employees shall engage in the purchase or sale of any
of Client’s securities.
XI. TERMINATION
Notwithstanding Section III of this
Agreement, this Agreement may be terminated:
(a) By
the Client upon 30 days’ prior written notice to Consultants.
Any compensation given to the Consultants, up to and including the
Termination Date, shall be deemed fully earned. Client shall pay
any compensation called for under this Agreement through the
Termination date to Consultants.
i) In
the event of any termination of the Consultant under this
Agreement, the Consultant will promptly deliver to the Client, all
documents, data, records and other information pertaining to the
Agreement hereunder, and the Consultant shall not take any
documents or data, or any reproduction or excerpt of any documents
or data containing or pertaining to the Client.
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(b)
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By Consultant upon 5 days’
prior written notice to the Client in the event:
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i) Client
fails to timely pay any compensation or expense reimbursement to
Consultant when due; or
ii) Client
requests Consultant to perform acts or services in violation of any
law, rule, regulation, policy or order of any federal or state
regulatory agency; or
iii) Client