CONSULTING AGREEMENT
THIS AGREEMENT is dated for reference the 19th day
of July, 2007.
BETWEEN:
Dussault Apparel Inc.
, a body corporate with offices at
8010 Melrose Avenue, Los Angeles, CA
90046-7010
(the “Company”)
AND:
Jason Sundar , with an address at 9th Floor, Two
Bentall Centre, 555 Burrard Street, Vancouver, BC V7X
1M8
(the “Contractor”)
WHEREAS:
A.
The Company desires to retain the Contractor as the
Company Vice-President, Corporate Finance to provide the Company
with the services detailed in Schedule A hereto (the
“Services”) in regards to the Company’s business
operations, and
B.
The Contractor has agreed to provide the Services to
the Company on the terms and conditions of this
Agreement.
NOW THEREFORE THIS AGREEMENT WITNESSES that in
consideration of the mutual covenants and promises set forth
herein, and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged by each, the
parties hereto agree as follows:
ARTICLE
1
APPOINTMENT AND AUTHORITY OF
CONTRACTOR
1.1
Appointment of Contractor . The Company hereby appoints the Contractor to perform the
Services for the benefit of the Company as hereinafter set forth,
and the Company hereby authorizes the Contractor to exercise such
powers as provided under this Agreement. The Contractor accepts
such appointment on the terms and conditions herein set
forth.
1.2
Performance of Services . The Services hereunder have been and shall continue to be
provided on the basis of the following terms and
conditions:
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(a)
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the Contractor shall report directly to the Chief
Executive Officer and/or President of the Company;
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(b)
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the Contractor shall faithfully, honestly and
diligently serve the Company and cooperate with the Company and
utilize maximum professional skill and care to ensure that all
services rendered hereunder, including the Services, are to the
satisfaction of the Company, acting reasonably, and the Contractor
shall provide any other services not
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specifically mentioned herein, but which by reason
of the Contractor's capability the Contractor knows or ought to
know to be necessary to ensure that the best interests of the
Company are maintained; and
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(c)
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the Company shall report the results of the
Contractor's duties hereunder as may be requested by the Company
from time to time.
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1.3
Authority of Contractor . The Contractor shall have no right or authority, express or
implied, to commit or otherwise obligate the Company in any manner
whatsoever except to the extent specifically provided herein or
specifically authorized in writing by the Company.
1.4
Independent Contractor . In performing the Services, the Contractor shall be an
independent contractor and not an employee or agent of the Company,
except that the Contractor shall be the agent of the Company solely
in circumstances where the Contractor must be the agent to carry
out its obligations as set forth in this Agreement. Nothing in this
Agreement shall be deemed to require the Contractor to provide the
Services exclusively to the Company and the Contractor hereby
acknowledges that the Company is not required and shall not be
required to make any remittances and payments required of employers
by statute on the Contractor's behalf and the Contractor or any of
its agents shall not be entitled to the fringe benefits provided by
the Company to its employees.
ARTICLE
2
CONTRACTOR'S AGREEMENTS
2.1
Expense Statements .
The Contractor may incur expenses in the name of the Company as
agreed in advance in writing by the Company, provided that such
expenses relate solely to the carrying out of the Services. The
Contractor will immediately forward all invoices for expenses
incurred on behalf of and in the name of the Company and the
Company agrees to pay said invoices directly on a timely basis. The
Contractor agrees to obtain approval from the Company in writing
for any individual expense of $1,000 or greater or any aggregate
expense in excess of $1,000 incurred in any given month by the
Contractor in connection with the carrying out of the
Services.
2.2
Regulatory Compliance .
The Contractor agrees to comply with all applicable securities
legislation and regulatory policies in relation to providing the
Services, including but not limited to United States securities
laws (in particular, Regulation FD) and the policies of the United
States Securities and Exchange Commission.
2.3
Prohibition Against Insider Trading
. The Contractor hereby acknowledges that the
Contractor is aware, and further agrees that the Contractor will
advise those of its directors, officers, employees and agents who
may have access to Confidential Information, that United States
securities laws prohibit any person who has material, non-public
information about a company from purchasing or selling securities
of such a company or from communicating such information to any
other person under circumstances in which it is reasonably
foreseeable that such person is likely to purchase or sell such
securities.
ARTICLE
3
COMPANY'S AGREEMENTS
3.1
Compensation Shares .
The compensation for the Services rendered by the Contractor
pursuant to this Agreement shall be payable in 1,000,000 shares of
the Company's common stock (the “Compensation Shares”)
for the Term, subject to the following terms and
conditions:
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(a)
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the Contractor shall be entitled to receive a
certificate representing one-third of the Compensation Shares on
each anniversary date as payment for Services rendered during each
year of the Term; provided that the Contractor has rendered
Services during that period as required by this
Agreement.
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3.2
Clawback of Unpaid Compensation Shares
. The Contractor acknowledges and agrees that any
assessable Compensation Shares will be subject to cancellation in
the event that this Agreement is terminated for any reason before
such Compensation Shares have been paid fully for by the provision
of Services, and that the Company’s obligation to issue the
balance of the Compensation Shares which have not been fully paid
for will terminate immediately upon early termination of this
Agreement. If the Agreement is terminated prior to the end of a one
year period, the number of Compensation Shares that the Contractor
is entitled to receive in respect of such period shall be
calculated by reference to the following formula:
333,333 X A
365
where A = to the number of days of the period up to
and including the date of termination.
For greater certainty no fractional Compensation
Shares will be issued but the Contractor will be entitled to
receive one whole Compensation Share if, but for this section, the
Contractor would otherwise be entitled to receive a fractional
Compensation Share.
3.3
Voting of Compensation Shares
. The Contractor covenants and agrees that, with
respect to the Compensation Shares that it receives, it shall, at
all times that it is the beneficial owner of such shares, vote such
shares on all matters coming before it as a stockholder of the
Company in the same manner as the majority of the board of
directors of the Company shall recommend.
3.4
Information . Subject
to the terms of this Agreement, including without limitation
Article 5 hereof, and provided that the Contractor agrees that
it will not disclose any material non-public information to any
person or entity, the Company shall make available to the
Contractor such information and data and shall permit the
Contractor to have access to such documents as are reasonably
necessary to enable it to perform the Services under this
Agreement. The Company also agrees that it will act reasonably and
promptly in reviewing materials submitted to it from time to time
by the Contractor and inform the Contractor of any material
inaccuracies or omissions in such materials.
ARTICLE
4
DURATION, TERMINATION AND DEFAULT
4.1
Effective Date . This
Agreement shall become effective as of the 19th day of July, 2007
(the “Effective Date”), and shall continue to July 19,
2010 (the “Term”) or until earlier terminated pursuant
to the terms of this Agreement.
4.2
Termination . Without
prejudicing any other rights that the Company may have hereunder or
at law or in equity, the Company may terminate this Agreement
immediately upon delivery of written notice to the Contractor
if:
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(a)
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the Contractor breaches section 2.2 of this
Agreement;
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(b)
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the Contractor breaches any other material term of
this Agreement and such breach is not cured to the reasonable
satisfaction of the Company within thirty (30) days after written
notice describing the breach in reasonable detail is delivered to
the Contractor;
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(c)
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the Company acting reasonably determines that the
Contractor has acted, is acting or is likely to act in a manner
detrimental to the Company or has violated or is likely to violate
the confidentiality of any information as provided for in this
Agreement;
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(d)
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the Contractor is unable or unwilling to perform the
Services under this Agreement, or
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(e)
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the Contractor commits fraud, serious neglect or
misconduct in the discharge of the Services.
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4.3
Duties Upon Termination . Upon termination of this Agreement for any reason, the
Contractor shall upon receipt of all sums due and owing, promptly
deliver the following in accordance with the directions of the
Company:
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(a)
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a final accounting, reflecting the balance of
expenses incurred on behalf of the Company as of the date of
termination; and
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(b)
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all documents pertaining to the Company or this
Agreement, including but not limited to, all books of account,
correspondence and contracts, provided that the Contractor shall be
entitled thereafter to inspect, examine and copy all of the
documents which it delivers in accordance with this provision at
all reasonable times upon three (3) days’ notice to the
Company.
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4.4
Compensation of Contractor on
Termination . Upon termination of this
Agreement, the Contractor shall be entitled to receive as its full
and sole compensation in discharge of obligations of the Company to
the Contractor under this Agreement all sums due and payable under
this Agreement to the date of termination and the Contractor shall
have no right to receive any further payments; provided, however,
that the Company shall have the right to offset against any payment
owing to the Contractor under this Agreement any damages,
liabilities, costs or expenses suffered by the Company by reason of
the fraud, negligence or wilful act of the Contractor, to the
extent such right has not been waived by the Company.
ARTICLE
5
CONFIDENTIALITY AND
NON-COMPETITION
5.1
Maintenance of Confidential
Information . The Contractor acknowledges
that in the course of its appointment hereunder the Contractor
will, either directly or indirectly, have access to and be
entrusted with information (whether oral, written or by inspection)
relating to the Company or its respective affiliates, associates or
customers (the “Confidential Information”). For the
purposes of this Agreement, “Confidential Information”
includes, without limitation, any and all Developments (as defined
herein), trade secrets, inventions, innovations, techniques,
processes, formulas, drawings, designs, products, systems,
creations, improvements, documentation, data, specifications,
technical reports, customer lists, supplier lists, distributor
lists, distribution channels and methods, retailer lists, reseller
lists, employee information, financial information, sales or
marketing plans, competitive analysis reports and any other thing
or information whatsoever, whether copyrightable or uncopyrightable
or patentable or unpatentable. The Contractor acknowledges that the
Confidential Information constitutes a proprietary right, which the
Company is entitled to protect. Accordingly the Contractor
covenants and agrees that during the Term and thereafter until such
time as all the Confidential Information becomes publicly known and
made generally available through no action or inaction of the
Contractor, the Contractor will keep in strict confidence the
Confidential Information and shall not, without prior written
consent of the Company in each instance, disclose, use or otherwise
disseminate the Confidential Information, directly or indirectly,
to any third party.
5.2
Exceptions . The
general prohibition contained in Section 5.1 against the
unauthorized disclosure, use or dissemination of the Confidential
Information shall not apply in respect of any Confidential
Information that:
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(a)
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is available to the public generally in the form
disclosed;
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(b)
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becomes part of the public domain through no fault
of the Contractor;
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(c)
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is already in the lawful possession of the
Contractor at the time of receipt of the Confidential Information;
or
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(d)
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is compelled by applicable law to be disclosed,
provided that the Contractor gives the Company prompt written
notice of such requirement prior to such disclosure and provides
assistance in obtaining an order protecting the Confidential
Information from public disclosure.
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5.3
Developments . Any
information, data, work product or any other thing or documentation
whatsoever which the Contractor, either by itself or in conjunction
with any third party, conceives, makes, develops, acquires or
acquires knowledge of during the Contractor’s appointment
with the Company or which the Contractor, either by itself or in
conjunction with any third party, shall conceive, make, develop,
acquire or acquire knowledge of (collectively the
“Developments”) during the Term or at any time
thereafter during which the Contractor is engaged by the Company
that is related to the business of designing and supplying security
systems for the cargo transit industry shall automatically form
part of the Confidential Information and shall become and remain
the sole and exclusive property of the Company. Accordingly, the
Contractor does hereby irrevocably, exclusively and absolutely
assign, transfer and convey to the Company in perpetuity all
worldwide right, title and interest in and to any and all
Developments and other rights of whatsoever nature and kind in or
arising from or pertaining to all such Developments created or
produced by the Contractor during the course of performing
t