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Exhibit 10.02
As of July 25, 2008
Beacon Enterprise Solutions Group, Inc.
124 North First Street,
Louisville, KY 40202
Attention : Bruce Widener, Chief Executive Officer
Dear Mr. Widener:
Beacon Enterprise Solutions Group, Inc., a Nevada
corporation (hereinafter referred to as the "Client") has agreed to
engage Allen, Goddard, McGowan, Pak & Partners, LLC ("Allen
Partners") on a non-exclusive basis to perform services related to
financial consulting and public relations matters ("Services")
pursuant to the terms and conditions of this Consulting Agreement
("Agreement") as set forth herein.
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1.
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Services . Allen Partners shall act as advisor to the
Client and perform such Services as requested by the Client, which
Services may include, but will not necessarily be limited to:
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a.
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advice regarding obtaining financing, including introducing the
Company to accredited investors, which may be corporations,
partnerships, mutual funds, hedge funds, investment partnerships,
securities firms, lending and other institutions and entities, as
well as select high net worth individuals for the purposes of
providing financing in the form of equity or equity- linked
securities of the Company or a combination of the foregoing (a
"Corporate Financing Transaction");
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b.
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advice regarding the financial structure of the Company or its
divisions or any programs and projects undertaken by any of the
foregoing;
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c.
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counsel Client regarding its overall strategy and related
activities within the financial community;
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d.
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assist Client with the preparation and revision of presentation
materials for meetings with the investment community; and
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e.
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Such other duties as Client may reasonably request of Allen
Partners from time to time.
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In addition, from
time to time, subject to scheduling availability, Allen Partners
shall:
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i.
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meet with the financial community on behalf of Client;
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ii.
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survey key analysts, brokers and institutional investors
nationwide;
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iii.
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maintain ongoing personal contact programs and establish a
schedule of activities; and
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iv.
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arrange meetings between Client’s senior management and
members of the financial community, including individual meetings,
informal group meetings and formal presentations.
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2.
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Performance of Services . Allen Partners shall be
obligated to provide the Services as and when requested by Client
but shall not be obligated to expend any specific amount of time in
so doing and shall not be authorized or obligated to perform any
Services on Allen Partners’ own initiative. The Services
shall be performed reasonably promptly after Client’s
request, consistent with Allen Partners’ availability and
good faith. The Company acknowledges that the Services to be
provided hereunder are not exclusive to the Client and Allen
Partners has other business obligations, including providing
investment banking, financial advisory and consultant services to
others, and the Company
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July 25, 2008
Page 2
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agrees that the provision of such services shall not constitute
a breach hereof of any duty owed to the Company by virtue of this
Agreement. Nothing contained herein, other than Allen
Partners’ obligations relating to the Company’s
Confidential Material as provided in Section 9 hereof, shall be
construed to limit or restrict Allen Partners or its affiliates in
conducting such businesses with respect to others or in rendering
such services to others
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3.
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Relationship of the Parties . Allen Partners shall be,
and at all times during the Term of the Agreement shall remain, an
independent contractor. As such, Allen Partners shall determine the
means and methods of performing the Services hereunder and shall
render the Services at such places it determines. The Client shall
pay all reasonable costs and expenses incurred by Allen Partners in
the performance of its duties hereunder, including but not limited
to reasonable and documented travel, legal fees and other expenses.
Allen Partners shall provide notice to the Company at such time, if
any, the foregoing expenses exceed $2,500 in the aggregate. Allen
Partners will not bear any of the Company’s legal,
accounting, printing or other expenses in connection with any
transaction considered or consummated hereby. It also is understood
that neither Allen Partners, nor any of its officers, directors,
employees or agents, will be responsible for any fees or
commissions payable to any finder or to any other financial or
other advisor utilized or retained by the Company.
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4.
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Assurances . Client acknowledges that all opinions and
advices (written or oral) given by Allen Partners to the Client in
connection with this Agreement are intended solely for the benefit
and use of Client, and Client agrees that no person or entity other
than Client shall be entitled to make use of or rely upon the
advice of Allen Partners to be given hereunder. Furthermore, no
such opinion or advice given by Allen Partners shall by used at any
time, in any manner or for any purpose, and shall not be
reproduced, disseminated, quoted or referred to at any time, in any
manner or for any purpose, except as may be contemplated herein.
Client shall not make any public references to Allen Partners
without Allen Partners’ prior written consent or as
required by applicable law.
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5.
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Compensation . In consideration of such Services, the
Company agrees to issue Allen Partners a warrant to purchase an
aggregate of 1,500,000 shares of the Company’s common stock
at exercise prices as follows: (i) 500,000 exercisable at
$1.00, (ii) 250,000 exercisable at $1.50, (iii) 250,000 exercisable
at $2.00, (iv) 250,000 exercisable at $2.25 and (v) 250,000
exercisable at $2.50. The foregoing warrants shall contain
customary terms, including, without limitation, provisions for
cashless exercise, weighted average anti-dilution price protection
and piggyback registration rights.
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6.
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Additional Services . Should Client desire Allen Partners
to perform additional services not outlined herein, Client may make
such request to Allen Partners in writing. Allen Partners may agree
to perform those services at its sole discretion and may
enter into additional definitive agreements with the Company which
shall set forth Allen Partners’ obligations in connection
with such transactions, as well as the compensation to be paid
Allen Partners with respect to its additional services.
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7.
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Approval of Client Information . Client will be required
to approve all stockholder communications, press release and other
materials prepared and disseminated on its behalf by Allen
Partners.
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8.
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Term . This Agreement shall remain in effect until July
31, 2010.
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9.
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Due Diligence/Disclosure
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a.
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Client recognizes and confirms that, in advising Client and in
fulfilling its retention hereunder, Allen Partners will use and
rely upon data, material and other information furnished to it by
Client. Client acknowledges and agrees that in performing its
Services under this Agreement, Allen Partners may rely upon the
data, material and other information
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July 25, 2008
Page 3
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supplied by Client without independently verifying the accuracy,
completeness or veracity of same. Such information shall be deemed
"Confidential Material".
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b.
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Except as contemplated by the terms hereof or as required by
applicable law, Allen Partners shall keep confidential,
indefinitely, all Confidential Material provided to it by Client,
and shall not disclose such information to any third party without
Client’s prior written consent, other than such of its
employees and advisors as Allen Partners reasonably determines to
have a need to know. In the event Allen Partners is required by
applicable law or legal process to disclose any of the Confidential
Material, Allen Partners will deliver to the Company prompt notice
of such requirement (by fax or overnight courier promptly following
Allen Partners’ knowledge or determination of such
requirement) prior to such disclosure so the Company may seek an
appropriate protective order and/or waive compliance of this
provision. If, in the absence of a protective order (because the
Company elected to not seek such an order or it was denied by a
court of competent jurisdiction) or receipt of written waiver,
Allen Partners is nonetheless, upon advise of its counsel,
compelled to disclose any Confidential Material, Allen Partners may
do so without liability hereunder.
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10.
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Indemnification . The Company agrees to indemnify Allen
Partners in accordance with the provisions of Annex A hereto, which
is incorporated by reference and made a part hereof.
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11.
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Limitation Upon the Use of Advice and Services
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(a)
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No person or entity, other than the Company (including its
directors, officers and employees), shall be entitled to make use
of, or rely upon any advice of Allen Partners to be given
hereunder, and the Company shall not transmit such advice to, or
encourage or facilitate the use or reliance upon such advice by
others without the prior written consent of Allen Partners.
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(b)
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Use of Allen Partners’ name in annual reports or any other
report of the Company or releases by the Company requires the prior
written approval of Allen Partners unless the Company is required
by law to include Allen Partners’ name in such annual
reports, other report or release of the Company, in which event the
Company shall furnish to Allen Partners copies of such annual
reports or other reports or releases using Allen Partners’
name in advance of publication by the Company.
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12.
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Cooperation . The Company will cooperate with and
will furnish Allen Partners or entities introduced by Allen
Partners with all reasonable information and data concerning the
Company which Allen Partners appropriate and will provide Allen
Partners with reasonable access to the Company’s officers,
directors, employees, independent accountants and legal counsel.
The Company represents that all information made available to Allen
Partners for distribution to investors will be complete and correct
in all material respects. Notwithstanding anything set forth above
to the contrary, Allen Partners shall not be responsible for any
due d
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