Engagement
Agreement
This Engagement
Agreement (the “Agreement”) is made and entered into
this 1st day of July, 2008 between Sahara Media, Inc., and its
successor(s) entity in the event of a reverse merger or
reorganization transaction (collectively, the “Client”)
with offices at 75 Franklin Street, 2 nd Floor, New York, NY 10013, and Marathon Advisors
(“Marathon”). This agreement sets forth the
general terms and conditions pursuant to which Marathon will
provide services to Client.
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Services . Marathon shall provide Brian
Rodriguez or another qualified individual to serve as a consultant
to the Client (Marathon and such consultants are collectively
referred to herein as the “Consultant”). The
Consultant shall provide advisory services to the Client to provide
guidance to the Client in the areas of accounting/finance, internal
controls and Sarbanes-Oxley compliance (the
“Services”). Without limited the
generality of the following, the Consultant is not acting as chief
financial officer or controller for the Client and is not
responsible for maintaining or compiling financial records,
preparing financial statements, performing SEC reporting or other
duties typical of a chief financial officer or
controller. The Consultant shall expend such time as is
reasonably necessary to fully perform the Services, up to a maximum
of twenty (20) hours per month, and shall devote his best efforts,
experience and judgment to fully discharge the duties and
responsibilities under this Agreement and as reasonably
contemplated hereby, and shall act in conformity with the written
policies of the Client and within the limits, budgets, business
plans and instructions as set by the Client. Not withstanding
anything to the contrary herein, Consultant shall not be required
to devote more than 20 hours per month to performing its duties
pursuant to this Agreement. Consultant shall be subject
to the authority of the Client’s board of directors and Chief
Executive Officer and President and to all provisions of its
Certificate of Incorporation and Bylaws.
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Limitation
of Services . It is understood between the
parties that the Consultant is not providing legal services, or
independent accounting services and such services must be retained
by the Client, at its own cost and expense. It is expressly
acknowledged that Marathon will utilize best efforts in performing
the Services contemplated hereby but no representations are made as
to the ultimate success of the Client in carrying out the
Client’s business.
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Term . The Services shall commence on the
effective date of the anticipated reverse merger with a public
shell company or similar reorganization transaction (the
“Effective Date”). The Services shall
terminate one year from the Effective
Date. In addition, this Agreement may be terminated
early as follows:
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a) Marathon may terminate this
Agreement with or without cause upon providing 30 days written
notice to the Client.
b) Either party shall have the right
(but not the obligation) to terminate this Agreement immediately
upon written notice to the other, if it reasonably determines that
the other party, or any of its respective directors, officers or
controlling shareholders has engaged in any unlawful, wrongful or
fraudulent act.
c) Marathon shall have the right (but
not the obligation) to terminate this Agreement immediately upon
written notice to the Client, if Marathon shall determine that any
material facts concerning the Client or any of its respective
directors, officers or controlling shareholders represented to
Marathon during the course of performing the Services are misstated
or untrue or that the Client has intentionally failed to
provide Marathon with material facts concerning the
Client.
In the event of
early termination of the Agreement, all fees and expenses accrued
by Marathon shall be paid to Marathon within 15 days after
termination and all fees paid to Marathon that were not accrued by
Marathon prior to termination shall be reimbursed to the Client or
credited against any outstanding balances owed by the Client within
15 days after termination.
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Location . The Services will be performed both
remotely and at the Client’s office site or other location as
the Client shall reasonably request.
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Payment . During the term of this Agreement, Marathon
shall be paid cash consideration of $7,000 per month, with payment
due upon the 15 th calendar day of each month. In the
event the Effective Date occurs on a date other than the first
calendar day of the month, Marathon shall be paid a pro-rated
amount of the $7,000 for the first month, with such payment being
made within 15 days after the Effective Date. In
addition, Marathon shall be paid equity compensation in the form of
100,000 shares of the Client’s common stock. Said
equity compensation shall be issued to Marathon and fully-vested by
Marathon within 10 business days of the Effective
Date. In addition, Marathon shall be issued warrants to
purchase 300,000 shares of the Client’s common stock with an
exercise price of $1.10 per share . The warrants shall
vest as follows: 50% on the first 12-month anniversary
of the Effective Date and 50% on the second 12-month anniversary of
the Effective Date. The warrants shall have a 3-year
term and a cashless exercise feature. In addition,
provided Marathon presents the Client with reasonable acceptable
proof of such expenses, the Client shall reimburse Marathon for any
reasonable, accountable, out-of-pocket expenses (the
“Reimbursable Expenses”) incurred by Marathon related
to travel to the Client’s office or board meeting locations
or any other expenses incurred related to performing the Services
provided in this Agreement. The Reimbursable Expenses
shall be invoiced by Marathon to the Client, with payment due upon
receipt of invoice. Notwithstanding anything to the contrary
herein, any expense in excess of $500 shall need the prior written
approval of the Client in order to be eligible for reimbursement
from the Client.
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Independent
Contractor Relationship. The parties understand and agree
Marathon shall perform the Services under this Agreement as an
independent contractor and under no circumstances is Marathon or
its employee(s) to be considered a Client employee or
agent.
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Non-exclusivity of Undertakings
. Client expressly understands and
agrees that Marathon shall not be prevented or barred from
rendering services of the same nature as or a similar nature to
those Services described in this Agreement, or of any nature
whatsoever, for or on behalf of any person, firm, corporation, or
entity other than the Client, provided that the rendition of such
services does not in any way interfere with Marathons’
obligations pursuant to this Agreement.
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Mutual
Indemnification. Both parties agree to indemnify and
hold each other harmless for any injuries to persons or property
caused by the intentional and willful acts of each party’s
own employees in the performance of services under this
Agreement. Furthermore, the Client hereby agrees to hold
harmless and indemnify Marathon, against any and all expenses
incurred by reason of the fact that Marathon is or was an, officer,
agent, Marathon or advisor of the Cl
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