EXHIBIT 10.6
CONSULTING
AGREEMENT
THIS CONSULTING AGREEMENT (this
“Agreement”) dated as of April 1, 2009 is entered by
and between Terra Energy & Resource Technologies, Inc. (the
“Company”) and Roman Rozenberg (the
“Consultant”).
W I T N E S S E T H
WHEREAS, the Consultant provides
business consulting services; and
WHEREAS, the Company wishes to
engage the Consultant upon the terms and subject to the conditions
set forth herein, and the Consultant desires to enter into this
Agreement and accept such engagement upon such terms and
conditions.
NOW, THEREFORE, in consideration of
the premises and the respective covenants and agreements of the
parties contained herein, and intending to be legally bound hereby,
the parties hereto agree as follows:
1.
Term . The term of this Agreement shall commence on the date
hereof (the “Commencement Date”) and shall end on the
one year anniversary date of this Agreement (the “Termination
Date”).
2.
Duties and Authority . During the term of this Agreement,
the Consultant shall perform the functions of a business consultant
and provide such services consistent with such a position as is
requested by the Company. The services contemplated by this
Agreement are to attract prospective customers of the
Company’s for fee service operations.
3.
Fee . Upon execution of this Agreement, the Company shall
issue to Consultant warrants to purchase 3,000,000 shares of the
Company’s common stock, exercisable for a term of three (3)
years from the date of this Agreement at $0.05 per share. The
warrants shall vest on April 30, 2009. The vesting schedule is
subject to the Consultant’s relationship with the Company
hereunder. The warrants will be in substantially the form attached
hereto as Exhibit A.
4.
Taxes . It is the intention and agreement of the parties
that Consultant shall be responsible for the payment of all taxes
imposed on or related to Consultant’s performance of the
services hereunder. The Company shall issue a Form 1099 reflecting
all amounts paid hereunder to Consultant.
5.
Independent Contractor . In performing the Consulting
Services, Consultant shall at all times be an independent
contractor and not an agent, employee or representative of the
Company. Consultant shall not represent, negotiate or otherwise act
on behalf of the Company with respect to any matter unless
specifically authorized by the Company to do so. This Agreement is
a personal service contract. This Agreement is not assignable by
the Consultant, nor may Consultant delegate any performance hereof,
absent the specific written approval of the Company.
6.
Governing Law . The laws of the State of New York (without
giving effect to its conflicts of law principles) govern all
matters arising out of or relating to this Agreement and all of the
transactions it contemplates, including, without limitation, its
validity, interpretation, construction, performance, and
enforcement. Any action or proceedings arising out of or relating
to either this Agreement or the relationship of the parties shall
be had only in a federal or state court located in the County of
New York in the State of New York. The parties expressly agree to
personal jurisdiction of in such federal or state courts in New
York County. Each party knowingly, voluntarily, and intentionally
waives its right to a trial by jury in any litigation arising out
of or relating to this Agreement and the transactions it
contemplates. This waiver applies to any litigation, whether
sounding in contract, tort or otherwise. Each party acknowledges
that it has received the advice of competent counsel.
7.
Miscellaneous . This Agreement sets forth the entire
agreement and understanding of the parties relating to the subject
matter herein and merges all prior discussions between them. The
parties may amend this Agreement only by a written agreement of the
parties that identifies itself as an amendment to this Agreement.
This Agreement may be signed in any number of counterparts, each of
which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same
instrument.
IN WITNESS WHEREOF, the parties have
executed this Agreement as of the date and year first above
written.
|
THE COMPANY:
|
TERRA ENERGY &
RESOURCE
|
TECHNOLOGIES, INC.
|
By:
|
|
|
|
Name: Dmitry Vilbaum
|
|
|
Title: CEO
|
|
|
|
|
|
Roman Rozenberg
2
EXHIBIT A
THIS WARRANT, AND THE SHARES
ISSUABLE UPON THE EXERCISE OF THIS WARRANT, HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. EXCEPT AS
OTHERWISE SET FORTH HEREIN, OR IN THE SECURITIES PURCHASE AGREEMENT
PURSUANT TO WHICH THIS WARRANT IS ISSUED, NEITHER THIS WARRANT NOR
ANY OF SUCH SHARES MAY BE SOLD, PLEDGED, TRANSFERRED, ASSIGNED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER SAID ACT OR, AN
OPINION OF COUNSEL, IN FORM, SUBSTANCE AND SCOPE, CUSTOMARY FOR
OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS, THAT REGISTRATION
IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144
UNDER SUCH ACT.
TERRA ENERGY & RESOURCE
TECHNOLOGIES, INC.
Common Stock Purchase
Warrant
Right to Purchase 3,000,000
Shares of Common Stock
|
Issue Date:
|
April 1, 2009
|
|
|
Expiration Date:
|
April 1, 2012
|
|
|
Exercise Price:
|
As set forth in Section 3
below
|
Warrant No.
090401-1
THIS CERTIFIES THAT, for value
received, pursuant to that certain Consulting Agreement dated as of
April 1, 2009 (the “Consulting Agreement”) by Terra
Energy & Resource Technologies, Inc., a Delaware corporation
(the “Company”) and the Holder herein specified, ROMAN
ROZENBERG (the “Holder”), is entitled, upon the terms
and subject to the conditions hereinafter set forth, at any time on
or after the above-specified Issue Date (subject to vesting) and at
or prior to the close of business (5 pm EST, New York time) on the
above-specified Expiration Date, but not thereafter, to subscribe
for and purchase from the Company, up to 3,000,000 fully paid and
nonassessable shares of the Company’s common stock, par value
$0.0001 per share (the “Common Stock”) at the Exercise
Price (as defined in Section 3 below). In the event of any conflict
between the terms of this Warrant and the Consulting Agreement
pursuant to which this Warrant is issued, this Warrant shall
control. Capitalized terms used and not otherwise defined herein
shall have the meanings set forth for such terms in the Consulting
Agreement.
1. Title to
Warrant. Prior to the Expiration Date and subject to compliance
with applicable laws, this Warrant and all rights hereunder are
transferable, in whole or in part, at the office or agency of the
Company by the holder hereof in person or by duly authorized
attorney, upon surrender of this Warrant together with the
Assignment Form annexed hereto, properly endorsed.
2. Authorization of
Shares. The Company covenants that all shares of Common Stock which
may be issued upon the exercise of rights represented by this
Warrant will, upon exercise of the rights represented by this
Warrant, be duly authorized, validly issued, fully paid and
nonassessable and free from all taxes, Liens and charges in respect
of the issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue).
|
(a)
|
The “Exercise Price” for
the Warrant shall be $0.05 per share.
|
|
(b)
|
The Warrant shall be exercised in
tranches of at least 1,000,000 shares each.
|
(c) The Holder shall not, in
the thirty (30) trading day period preceding the exercise of any
portion of this Warrant, sell or short sell the Common Stock of the
Company, or otherwise engage in any transaction that would in any
way negatively affect the trading price of the Common Stock of the
Company.
3
(d) Except as provided in this
Section 3 and Section 4 herein, exercise of the purchase rights
represented by this Warrant may be made at any time or times on or
after the Issue Date, and before the close of business on the
Expiration Date by the surrender of this Warrant and the Notice of
Exercise Form annexed hereto, duly executed, at the office of the
Company (or such other office or agency of the Company as it may
designate by notice in writing to the registered holder hereof at
the address of such holder appearing on the books of the Company)
and upon payment of the Exercise Price of the shares thereby
purchased by wire transfer or cashier’s check drawn on a
United States bank, the holder of this Warrant shall be entitled to
receive a certificate for the number of shares of Common Stock so
purchased. Certificates for shares purchased hereunder shall be
delivered to the Holder hereof within three (3) Trading Days after
the date on which this Warrant shall have been exercised as
aforesaid. This Warrant shall be deemed to have been exercised and
such certificate or certificates shall be deemed to have been
issued, and the Holder or any other person so designated to be
named therein shall be deemed to have become a holder of record of
such shares for all purposes, as of the date this Warrant has been
exercised by payment to, and receipt thereof by, the Company of the
Exercise Price and, to the extent applicable in cases of issuances
to designees of the named Holder of this Warrant, any transfer-tax
reimbursements provided for under the proviso in Section 6 hereof.
If this Warrant shall have been exercised in part, the Company
shall, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant
evidencing the rights of Holder to purchase the unpurchased shares
of Common Stock called for by this Warrant, which new warrant shall
in all other respects be identical with this Warrant.
4. No
Fractional Shares or Scrip. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of
this Warrant. As to any fraction of a share which Holder would
otherwise be entitled to purchase upon such exercise, the Company
shall pay a cash adjustment in respect of such final fraction in an
amount equal to the Exercise Price.
5. Vesting;
Exercisability. The warrants shall vest on April 30, 2009.
Notwithstanding anything to the contrary herein, exercisability
shall be subject to prior vesting.
6. Charges, Taxes
and Expenses. Issuance of certificates for shares of Common Stock
upon the exercise of this Warrant shall be made without charge to
the Holder hereof for any issue or transfer tax or other incidental
expense in respect of the issuance of such certificate, all of
which taxes and expenses shall be paid by the Company, and such
certificates shall be issued in the name of the Holder of this
Warrant, or in such name or names as may be directed by the holder
of this Warrant; provided, however, that in the event certificates
for shares of Common Stock are to be issued in a name other than
the name of the Holder of this Warrant, this Warrant when
surrendered for exercise shall be accompanied by the Assignment
Form attached hereto, duly executed by the Holder hereof; and the
Company may require, as a condition thereto, the payment of a sum
sufficient to reimburse it for any transfer tax incidental
thereto.
7. Closing of
Books. The Company will not close its shareholder books or records
in any manner which prevents the timely exercise of this
Warrant.
|
8.
|
Transfer, Division and
Combination.
|
(a) Subject to compliance with
any applicable securities laws and the Securities Purchase
Agreement and exhibits thereto, transfer of this Warrant and all
rights hereunder, in whole or in part, shall be registered on the
books of the Company to be maintained for such purpose, upon
surrender of this Warrant at the principal office of the Company,
together with a written assignment of this Warrant substantially in
the form attached hereto duly executed by Holder or its agent or
attorney and funds sufficient to pay any transfer taxes payable
upon the making of such transfer. Upon such surrender and, if
required, such payment, the Company shall execute and deliver a new
warrant or warrants in the name of the assignee or assignees and in
the denomination or denominations specified in such instrument of
assignment, and shall issue to the assignor a new warrant
evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled. This Warrant, if properly
assigned, may be exercised by a new holder for the purchase of
shares of Common Stock without having a new warrant
issued.
4
(b) This Warrant may be divided
or combined with other Warrants upon presentation hereof at the
aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to
be issued, signed by Holder or its agent or attorney. Subject to
compliance with Section 8(a), as to any transfer which may be
involved in such division or combination, the Company shall execute
and deliver a new Warrant or Warrants in exchange for the Warrant
or Warrants to be divided or combined in accordance with such
notice.
(c) The Company shall prepare,
issue and deliver at its own expense (other than transfer taxes)
the new Warrant or Warrants under this Section 8.
(d) The Company agrees to
maintain, at its aforesaid office, books for the registration, and
the registration of transfer, of the Warrants.
9. No
Rights as Shareholder until Exercise. This Warrant does not entitle
the Holder hereof to any voting rights or other rights as a
shareho