Consulting Agreement - China Broadband Corp. and Precise Details Inc.
CONSULTING AGREEMENT
THIS AGREEMENT made effective April 1, 2000 (the "Effective Date").
BETWEEN:
CHINA BROADBAND CORPORATION, a body corporate, incorporated pursuant to
the laws of the State of Nevada, United States of America
(hereinafter referred to as the "Corporation")
OF THE FIRST PART
- and -
PRECISE DETAILS INC., a body corporate, incorporated pursuant to
the laws of the Province of Alberta, Canada
(hereinafter referred to as the "Consultant")
OF THE SECOND PART
WHEREAS the Corporation wishes to engage the services and expertise of
the Consultant on the terms and conditions hereinafter set forth, and the
Consultant wishes to accept such an engagement;
NOW THEREFORE in consideration of the covenants of each of the parties
given to the other and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:
1. SERVICES
Effective as of the Effective Date, the Corporation engages the
Consultant and the Consultant accepts an engagement with the
Corporation to render the consulting services for the Corporation as
set out in Schedule A. During the terms of this Agreement, the
Consultant shall provide the services of Tom Milne who shall devote
such of her time, attention and abilities to the business of the
Corporation as may be necessary for the proper exercise of the
Consultant's duties hereunder. Nothing in this Agreement shall be
interpreted or construed as creating or establishing a relationship of
employer and/or employee between the Corporation and Tom Milne.
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2. DUTIES
2.1 The Consultant shall devote reasonable time and effort to the
performance of this Agreement, the Corporation acknowledges that the
Consultant and Tom Milne shall also be entitled to render services to
others during the term hereof.
2.2 The Consultant's duties shall be to provide the services more
particularly set forth on Schedule "A" hereto.
3. REMUNERATION
Corporation agrees to pay the Consultant as set out in Schedule "B"
attached hereto.
4. CONFIDENTIALITY
4.1 This Consultant acknowledges the Corporation will have reporting and
disclosure obligations under all applicable securities legislation. The
Consultant covenants and agrees that it shall not any time, during or
after the termination of the Consultant's engagement by the
Corporation, reveal, divulge, or make known to any person (other than
the Corporation or its affiliates) or use for its own account any
customer's lists, trade secrets, or secret or confidential information
used by the Corporation or its Affiliates during the Consultant's
engagement by any of them and made known (whether or not with the
knowledge and permission of the Corporation, whether or not developed,
devised or otherwise created in whole or in part by the efforts of the
Consultant, and whether or not a matter of public knowledge unless as a
result of authorized disclosure) to the Consultant by reason of her
engagement by the Corporation of any of its Affiliates. The Consultant
further covenants and agrees that all knowledge and information, which
is acquired or developed for the Corporation or any of its Affiliates
by the Consultant, is the property of the Corporation. The Consultant
further covenants and agrees that it shall retain all such knowledge
and information which it shall acquire and develop during such
engagement respecting such customer lists, trade secrets and secret or
confidential information in trust for the sole benefit of the
Corporation, its affiliates, and their successors and assigns.
4.2 The Consultant shall promptly communicate and disclose to the
Corporation all observations made and data obtained by it in the course
of its engagement by the Corporation. All written materials, records
and documents created by the Consultant or coming into its possession
concerning the business or affairs of the Corporation or any of its
Affiliates shall, upon the termination of this Agreement, promptly be
returned to the Corporation. Upon the request of the Corporation until
termination of its engagement by the Corporation, the Consultant shall
render to the Corporation or to any Affiliate designated by it such
reports of the activities undertaken by the Consultant or conducted
under the Consultant's direction for the Corporation and its Affiliates
as the Corporation may request.
4.3 The Consultant warrants and represents that it is duly qualified to
perform its duties hereunder, and further covenants that in performing
its duties hereunder, it will not engage in activity that is in
violation of applicable securities laws or subject the Corporation to
liability thereunder.
4.4 The Consultant agrees that for a period of one (1) year after the
termination of work with the Corporation, it will not do any business
whatsoever with clients of the Corporation for substantially similar
work.
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5. TERM
5.1 This Agreement shall be for a term commencing April 1, 2000 and
terminating March 31, 2001. Either party may terminate this Agreement
at any time without notice in the event of a fundamental breach of
the terms of this Agreement by the other party.
5.2 This Agreement may, by the mutual agreement of the parties, be
renewed for a further term of five (5) years, or for such other term as
may be agreed.
6. NOTICES
Any notices delivered or received between either party shall be deemed
to have been received:
(a) if it was delivered in person, on the date it was delivered;
(b) if it was sent by electronic facsimile transmission, on the date
it was delivered;
(c) if it was sent by mail, on the day it was received to the
following address:
CHINA BROADBAND CORPORATION
2080, 440 - 2 Avenue SW
Calgary, Alberta T2P 5E9
Attention: Chairman and CEO
By Facsimile: 403.265.8808
PRECISE DETAILS INC.
2311 Erlton Place Sw
Calgary, AB T2S 2Z3
Attention: Chief Executive Officer
By Facsimile: 403.261.9731
7. MODIFICATION OF AGREEMENT
Any modification of this Agreement must be made in writing signed by
the Consultant and an officer of the Corporation or it shall have no
effect and shall be void.
8. GOVERNING LAW
This Agreement shall be governed by and construed in accordance with
the laws of the Province of Alberta, Canada and the parties agree to
attorn to the jurisdiction of the courts of the Province of Alberta.
9. HEADINGS
The headings utilized in this Agreement are for convenience only and
are not to be construed in any way as additions or limitations of the
covenants and agreements contained in this Agreement.
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10. ENTIRE AGREEMENT
The covenants in this Agreement shall be construed as an agreement
independent of any other provision in this Agreement. The parties
acknowledge that it is their intention that the provisions of this
Agreement be binding only to the extent that they may be lawful under
the existing applicable laws and in the event that any provision of
this Agreement is determined by a court of law to be overly broad or
unenforceable, the remaining valid provisions shall remain in full
force and effect. This Agreement constitutes the sole agreement between
the parties hereto for services to be performed as herein described and
the mutual covenants contained herein constitute due and adequate
consideration for the full performance by each party of its obligations
under this Agreement and any and all previous agreements, written or
oral, expressed or implied, between the parties or on their releases
and forever discharges the other of and from all manner of action,
causes of action, claims or demands whatsoever under or in respect of
any agreement.
11. GENERAL MATTERS
11.1 The waiver by any party hereto of a breach of any provision of this
Agreement shall not operate or be construed as a waiver of any
subsequent breach of the same or of any other provisions of this
Agreement.
11.2 This Agreement shall be binding upon the parties hereto and shall enure
to the benefit of and be enforceable by each of the parties hereto and
their respective successors and assigns.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as
of the 1st day of April, 2000.
CHINA BROADBAND CORPORATION PRECISE DETAILS INC.
per: per:
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SCHEDULE "A"
Services:
o Report to the Chairman, CEO, and President of the Corporation,
providing the services of Chief Financial Officer of the
Corporation including, without limitation, all necessary
accounting and tax audit services and shall also be responsible
for all matters pertaining to investor relations for the
Corporation.
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SCHEDULE "B"
Remuneration
o As full consideration for performance of the services by the
Consultant, the Corporation shall pay the Consultant at the rate
of $600.00 (U.S.) per day to a minimum of $3,000.00 (U.S.) for
each month for which services are provided. The said rate shall
not, in any event, be less than $900.00 (Cdn.) per day to a
minimum of $4,500.00 (Cdn) per month and shall be inclusive of all
claims by the Consultant for its services, but shall be exclusive
of GST and of travel expenses incurred by the Consultant and
properly claimable in accordance with the provisions hereof.
o The Corporation shall not be required to provide any benefits to
the Consultant including, without limitation, dental, medical,
disability or life insurance.
o The Consultant shall submit invoices to the Corporation, twice per
month, for the number of days for which services are provided
during the period covered by the invoice and also including any
proper claim for travel expenses. Each invoice shall indicate the
period covered, the days or part days worked, the rate and the
total charge for consultancy services. GST shall be shown
separately and the Consultant's GST registration number shall be
shown on each invoice.
o The Corporation will reimburse the Consultant, at actual cost, for
out-of-pocket expenses incurred in accordance with the
Corporation's standard practice for the reimbursement of
reasonable travel expenses incurred by its contractors or its own
personnel. The Corporation will also reimburse the Consultant for
any reasonable long distance telephone, fax or photocopying
charges incurred by the Consultant. Expenses claimed must be
supported by the applicable receipts.
o The Consultant will be responsible for the payment of the income
taxes of all of its employees including, without limitation, Tom
Milne, as well as Canada Pension Plan premiums and any and all
other taxes and contributions imposed by law with respect to such
employees, with the sole exception of GST. In the event the
Consultant should fail to make any such payments, the Consultant
indemnifies the Corporation for any claims, causes or action, or
liabilities which may be made, advanced or incurred against the
Corporation as a result of such non-payment, and agrees to be
responsible for the Corporation's solicitor-client costs in
defending or protecting itself.
o The Corporation will pay all proper invoices received from the
Consultant promptly following receipt of the applicable invoice
and any necessary supported documentation.
o The Corporation agrees to grant to Tom Milne stock options to
purchase 100,000 Common shares of the Corporation at $1.00 (US)
per common share, which options shall expire 2 years after the
grant thereof and shall be exercisable at the discretion of Tom
Milne.
o The Consultant will be entitled to participate (at the discretion
of the Corporation) in any bonus program of the Corporation
resulting from achieving milestones in the business of the
Corporation (such as commercial stage of development in 10 or more
cities, 1 million or more subscribers, revenue in excess of U.S.
$100 million per year, or strategic alliances and partnerships
with other companies to significantly enhance the products and
services of the Corporation).
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o The Corporation will, if it determines it to be necessary in its
total discretion, ensure that appropriate liability insurance
coverage is provided to Tom Milne at no cost to the Consultant or
to Tom Milne, which coverage should be the same in all material
respects as insurance coverage provided to Directors and Officers
of the Corporation.
o In any dispute arising from the enforcement of this Agreement, the
Corporation shall pay all reasonable legal fees and expenses
incurred by the Consultant in contesting or disputing the position
of the Consultant or seeking to obtain enforcement of or retaining
any right of payment or benefit provided for in this Agreement.