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Engagement Agreement

Engagement Agreement

Engagement Agreement | Document Parties: MAC FILMWORKS INC | Sahara Media, Inc You are currently viewing:
This Engagement Agreement involves

MAC FILMWORKS INC | Sahara Media, Inc

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Title: Engagement Agreement
Governing Law: New York     Date: 9/24/2008

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Exhibit 10.17

 


 

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.

 

1.  

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.

 

2.  

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.

 

3.  

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:

 

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.

 

4.  

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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5.  

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.

 

6.  

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.

 

7.  

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.

 

8.  

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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