INDUSTRYADVISORYBOARDCONSULTINGAGREEMENT
ThisMAXSOUNDINDUSTRYADVISORYBOARDANDCONSULTINGAGREEMENTismadein
California,effectiveasofMay4th,2015(the“EffectiveDate”),byandbetweenALEXANDERMENDELUKoftheDisruptiveInc.(the“Consultant”),aCaliforniacorporationactingasanindependentcontractor,andMAXSOUND,CORP.,aDelawarecorporation(the“Company”).
1. Background.TheCompanydesirestoretaintheservicesofConsultantontheCompany’s
IndustryAdvisoryBoardtoprovideinputandongoingworkoncurrentstandardpracticesandtrendsinConsultant’sareaofexpertiseandfromtime-to-timeinaconsultingcapacitywithrespecttocertainactivitiesorspecificprojectsasdescribedinthisAgreement,andConsultantiswillingsotoact.
2.
DescriptionofServices.CompanyherebyretainsConsultantasamemberoftheIndustryAdvisoryBoardof,andaconsultantto,theCompany,andConsultantherebyagreesto(i)actasamemberoftheCompany’sIndustryAdvisoryBoardand(ii)beavailableatmutuallyagreeabletimestotheCompanyandassetforthfurtherthroughoutthisagreement.The Consultantwillbeengaged by theCompany asaConsultant for the exchange ofstrategic andbusiness developmentideas and tobeintegralindevelopingMAX-D’s consumerbrandapp,device,websiteand KickStarter campaign.Consultant’s relationshipwith theCompany shallbethatofanindependentcontractor and notthatofanemployee.Accordingly,Consultantwill notbe eligible foranyemployeebenefits, norwill theCompanymakedeductionsfrompayments madetoConsultantfortaxes,whichshallbe solelyConsultant’sresponsibility.Consultant shallhave noauthority to enterintocontracts,whichbind theCompany or create obligations on thepart of theCompany.Consultant’s title herein thiscapacitywillbe Digital Media Marketing, Brand Strategy andCreative Direction Advisor.See Exhibit1–ScopeofWorkincorporatedhereinbyreferenceasifsetforthinfull.
3.
Term andExpiration.ThisAgreement shallbecomeeffectiveasoftheEffectiveDateandshallremainineffectforthree(3)years.EitherConsultantortheCompanymayterminatethisAgreementat anytimeandfor anyreasonby givingtheother party thirty(30) days priorwrittennoticeoftermination,andsuchterminationshallnotaffecttheConsultant’scontinuingobligationstotheCompanyunderSections2,6and7andCompany’sobligationstoissue Consultant stock already earned under Section 4 a. andpayConsultant thelicensing feeunder Section 4b. asdescribedhereinbelow.
4.
Consideration.AsafullconsiderationfortheIndustryAdvisoryBoardServiceandtheConsultantServiceprovidedhereunder,andfortheinitiation oftheadditionalbusiness developmentandmarketingadvisoryservices(explainedattheendinExhibit1ScopeofWork),theCompanywillpaytoConsultant, subjecttoapprovaloftheCompany’sboardofdirectors, the following:
a. (200,000 shares) two hundredthousandshares of theCompany’sRule144CommonStock(restrictedforsixmonthsfromtheeffectivedateofthisagreement)upontheexecutionofthisAgreement.Anadditionalblockof(200,000shares)twohundredthousandsharesof
theCompany’sCommonStockwillbegrantedtoConsultantwithintenbusinessdaysofachievingeachofthefollowingmilestones,whichevercomesfirst,uptoonemillionsharesofstock–
UponthesuccessfulfundingofouroriginalKickStartergoal(15k)
Uponthesuccessfulfundingof20xouroriginalKickStarterGoal
UponthepublicannouncementofaMAX-D&TheAudiencePartnership
UpontheAPPreaching300,000collectivedownloads
UpontheAPPreaching600,000collectivedownloads
UpontheAPPreaching1,000,000collectivedownloads
VII)
Uponadealclosingwithanymajorpartnerwithin,achievedasadirectresultofthe effortsandcontacts ofConsultantwithinthestreaming, cellular,TV,audio,musicand entertainmentindustries.Eachindividualdealclosingwillconstitutean additional200,000 shares earned upuntilthe onemillion sharesisachieved asprovided for above.
Upon$500,000ofgrossrevenuegeneratedbythesaleofthe“MAX-DHDAUDIODEVICE”.
Upon$1,000,000ofgrossrevenuegeneratedbythesaleofthe“MAX-DHDAUDIODEVICE”.
b. Inaddition,CompanyagreestopayConsultantalicensingfeeof5%ofallgross
profitgeneratedbyIPlistedinthe“scopeofwork”belowaswellasanyotherIPthatiscreatedwithconsultantforthelifeoftheIP,whichobligationtopayConsultantsurvivestheterminationof thisAgreement unlessthe Companyissold;and
c. amonthlyfeeof$7,500.00duringthetermofthisAgreementwhichguaranteesaminimumpaymentdueundersubsection4(b)abovedueeachmonthstartingonMay15,2015whichwillcovertheperiodgoingforwarduntilJune15,2015whenthenextmonthlypaymentwilloccurandsoon;inaddition,whenthe5%licensingfeein4(b)aboveexceeds
$7,500 inanygivenmonth,no payment will bedueto Consultant underthis4 (c) inanysuchmonth.
5.
Publicity.DuringthependencyofthisAgreement,theCompanyshall,withpriorwrittenapprovalbyConsultantoftheimageandtext,havetherighttousethename,biographyandpictureofConsultantontheCompany’swebsite,marketingandadvertisingmaterials.
| 6. | ProprietaryInformationandAssignmentofInventions. |
(a) ConfidentialityofProprietaryInformation.ConsultantisnotobligatedtoreceiveProprietaryInformation(asdefinedbelow),howeverConsultantunderstandsandagreesthatallProprietaryInformationshallbethesolepropertyoftheCompanyanditsassigns,includingalltradesecrets,patents,copyrightsandotherrightsinconnectiontherewith.Consultantwill holdin confidence and notdirectly orindirectly use ordisclose toany third
parties,bothduringConsultant’sconsultingrelationshipwiththeCompanyand foraperiod ofthree(3)yearsafteritstermination(irrespectiveofthereasonforsuchtermination),anyProprietaryInformationConsultantobtainsorcreatesduringConsultant’sconsultingrelationship,excepttotheextentauthorizedbytheCompany,oruntilsuchProprietaryInformationbecomesgenerallyknown.Thirdpartiesincludeanyforeignordomesticpatent office.Consultant agreesnottomakecopiesofsuch ProprietaryInformationexceptasauthorizedby theCompany. Upon termination ofConsultant’s consulting relationship or upon an earlier request of theCompany,Consultantwill return ordeliver to theCompany all tangibleformsofsuchProprietaryInformationinConsultant’spossessionorcontrol,includingbut notlimited todrawings, specifications,documents, records,devices, models orany other material and copies or reproductionsthereof.
AsusedinthisAgreement,theterm“ProprietaryInformation”meansinformationorphysicalmaterialnotgenerallyknownoravailableoutsidetheCompanyorinformationorphysicalmaterialentrustedtotheCompanybythirdparties.Thisincludes,butisnotlimitedto,inventions, confidential knowledge, copyrights, product ideas, techniques, processes, formulas, object codes, maskworks and/orany otherinformation ofanytype relating todocumentation,data,schematics,algorithms, flowcharts,mechanisms, research, manufacture,improvements, assembly,installation,marketing, forecasts, sales,pricing, customers, the salaries,duties,qualifications,performance levels and terms of compensation of otheremployees, and/orcost or other financialdata concerningany of the foregoingor theCompanyanditsoperations.Proprietary Informationmaybecontainedinmaterialsuchasdrawings, samples,procedures, specifications, reports, studies, customer or supplierlists,budgets, cost orpricelists, compilations or computerprograms, ormaybein the nature ofunwritten knowledge orknow-how.
(b)
LicenseandAssignmentofRights.Consultantacknowledgesthat allinventions,originalworksofauthorship,developments,concepts,know-how,improvementsortradesecretswhicharemadebyConsultant(solelyorjointlywithothers)withinthescopeofandaspart ofConsultant’sconsultancy with theCompany(collectivelyreferred tohereinas“Inventions”)are“worksmadeforhire”(to thegreatestextentpermittedbyapplicable law)andarecompensatedby suchamountspaid toConsultant under thisAgreement,unlessregulatedotherwiseby themandatorylaw of thestate ofDelaware. To theextentthatConsultant owns orcontrolsintellectualpropertyrights ofany kind inanypre-existing works whicharesubsequentlyincorporatedbyConsultant inanyInventions without theexpresswrittenpermission of theCompany,Consultant herebygrants theCompany a royalty-free,irrevocable with the exception of the 5% license fee agreed to in 4 (b)above,world-wide,perpetual, non-exclusivelicense(with the right to sublicense) to make, have made, copy, modify, makederivativeworksof, use, sell,license,disclose,publish, or otherwisedisseminate or transfer such subject matter.Consultant also agrees andwarrants thatConsultantwill not use orincorporate thirdpartyproprietary materialsinto Inventions ordisclose thirdpartyproprietaryinformation toCompany.
7. Non-Compete;Non-solicitation.DuringthetermofConsultant’sconsultancy,Consultantwillnot,withouttheCompany’spriorwrittenconsent,(a)directlyworkonanyproductsorservices,orindirectlyworkonanycommercialproductsorservices,thatarecompetitivewithproductsorservices(i)beingcommerciallydevelopedorexploitedbytheCompanyduringConsultant’s consultancyand(ii) onwhich Consultantworked or aboutwhichConsultantlearned Proprietary InformationduringConsultant’s consultancywith theCompany; or(b) solicit theemployment ofanyemployee of theCompanywithwhomConsultant has hadcontactinconnectionwiththerelationship arising underthisAgreement.
| 8. | GoverningLaw.ThisAgreementshallbegovernedandconstruedinaccordancewiththe |
lawsoftheStateofDelawarewithvenueinCalifornia,CountyofSanDiego.
9.
NoConflict.ConsultantrepresentsthatConsultant’sperformanceofallthetermsofthisAgreementandthatConsultant’sretentionasanadvisorbytheCompanydoesnotandwillnotbreachanyagreementtokeepinconfidenceanyproprietaryinformationacquiredbyConsultantinconfidencepriortoConsultant’sretention asanadvisorbytheCompany.Consultanthas notenteredinto,and agreesConsultantwill notenterinto,anyagreement, eitherwritten ororal,in conflictwith the foregoing sentence.Consultant understands aspart of the consideration for the offer to retainConsultant as an advisor, and ofConsultant’s retention asan advisorbythe Company,thatConsultanthasnotbroughtandwillnotbringwithConsultantto theCompany or useintheperformanceofConsultant’s responsibilities attheCompanyany equipment, supplies,facility ortradesecretinformation ofany current or formeremployerwhich are notgenerallyavailable to thepublic.Consultant also understands that,inConsultant’s retention as an advisorwith the Company,Consultantis not tobreachany obligation ofconfidentiality thatConsultant has to others, andConsultant agrees thatConsultant shall fulfill all such obligationsduringConsultant’s retention as an advisorwith the Company.
10.
MediationandArbitration.AnydisputearisingunderthisAgreementshallberesolvedthroughmediation-arbitrationapproach.Thepartiesagreetoselectamutuallyagreeable,neutralthirdpartytohelpthemmediateanydisputethatarisesunderthetermsofthisAgreement.Costsandfeesassociatedwiththemediationshallbesharedequallybytheparties. If the mediationis unsuccessful, theparties agree that thedispute shallbedecidedby a singlearbitratorbybinding, confidentialarbitration under the rules of the AmericanArbitration Associationin SanDiego,California.Thedecision of thearbitrator shallbe final andbinding on theparties andmaybe entered and enforcedinany court of competentjurisdictionby either party.Theprevailingpartyin thearbitrationproceedings shallbeawardedreasonable attorney fees, expertwitness costs and expenses, and all other costs andexpensesincurreddirectly orindirectlyin connectionwith theproceedings, unless thearbitrator shall forgood causedetermine otherwise.
11.
AdviceofCounsel.EACHPARTYACKNOWLEDGESTHAT,INEXECUTINGTHISAGREEMENT,SUCHPARTYHASHAD THEOPPORTUNITYTOSEEK THEADVICEOFINDEPENDENTLEGALCOUNSEL, ANDHASREADANDUNDERSTOODALLOFTHETERMSAND PROVISIONSOFTHIS AGREEMENT.THIS AGREEMENT SHALL NOT BECONSTRUED AGAINST ANY PARTYBYREASONOFTHE DRAFTINGOR PREPARATIONHEREOF.
| 12. | Miscellaneous.ThisAgreementshallbebindinguponandshallinuretothebenefitof |
theCompany’s successors, transferees,andassigns. Any amendmentto thisAgreementmustbeinwritingsignedbyConsultantandtheCompany.TheCompanyandConsultantacknowledgethatanyamendmentofthisAgreement(including,withoutlimitation,anyextensionofthisAgreementoranychangefromthetermsofSection4intheconsiderationtobeprovidedtoConsultantwithrespecttoservicestobeprovidedhereunder) oranydeparturefrom the terms or conditions hereofwith respect toConsultant’s consulting services for theCompanyissubjecttotheCompany’sandConsultant’spriorwrittenapproval.ThisAgreement supersedesanyprior consulting or other similar agreementsbetweenConsultant and theCompanywithrespecttothesubjectmatterhereof.Thereisnootheragreementgoverningor affecting the subject matterhereof. All notices hereunder shallbedeemed tohavebeen
given,ifmadeinwriting,whenmailed,postageprepaid,tothepartiesattheaddressessetforthabove,ortosuchotheraddressesasapartyshallspecifytotheother.ThisAgreementmaybeexecutedincounterparts,eachofwhichshallbedeemedanoriginal,butallofwhichtogetherwillconstituteoneandthesameinstrument.
13.
Severability.IfanyprovisionofthisAgreementisheldtobeunenforceableunderapplicablelaw,suchprovisionshallbeseveredandtheremainingprovisionsofthisAgreementshallcontinueinfullforceandeffect.
INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreementeffectiveasofthedayandyearfirstwrittenabove.
CONSULTANT
By:
Name:AlexanderMendeluk
DateMay4,2015
COMPANY
By:
Name:GregHalpern
Title:ChairmanDate:May4,2015
EXHIBIT1–SCOPEOFWORK
OngoingconsultingworkwithMAX-Dandaffiliatepartnersrangingfromproductdevelopmenttobrandingandmarketingstrategyandimplementation.
MAX-DPhaseOne-6monthRolloutStrategy
(weeklytouchdownmeetings-May)
KeyDates(Pre-Launch)
BrandBible(Alexander):June1stMarketingStrategy(Alexander):June15thAudioDevicePrototype(RKS):June15th
ContentCreation(Alexander):June10th-25thConsumerWebsite(Gabe):July1st
EmailMarketing&DatabaseBuilding(Gabe):OngoingApp.Development(ItchyFingers):May1st-June15th
KickstarterRollout(Gabe,Alexander,theAudience):June-September15thLaunch
BrandDevelopment-Alexander June1STBrandIdentity-Vision,Mission,Purpose,ValuesAesthetic(MoodBoard)
Archetype
DisruptiveAngle(Background,Aesthetic,Finance,Products,Mindset,Voice)BusinessCanvas(BusinessPlan-OnePager)
ProductBranding
ProductDevelopment
App-MAX-DHDAUDIOPLAYER-AlexandertoconsultanddevelopwithItchyFingers.(Developers:ItchyFingers-Waitingonproposalfortimelineanddates.TheplanwillbetorollouttheAppandleverageuserstolaunchandupsellthekickstarterandthedevice)
Phase1 (InterfaceRe-design)
ItchyFingersmeetingwithGreg(May1st)MarketResearch
DevelopmentResearch
KeyFeatureIntegrationUserExperienceMarketingStrategyBeta
FullLaunch
Ongoingsupportandmaintenance
Phase2 (TBD)
YouTubeIntegration
MAX-DHDAUDIODEVICE
MeetingwithRKS(PhysicalDevelopmentandManufacturing)May29thWorkingPrototype(DevelopedbyRKS-deliveredbyJune15th)MarketResearch(RKS-TBD)
EstablishDeliverablesanddates(TBD-RKS)
360°DegreeMarketingStrategy(Pre-Launch:June1st-Sept.15th&PostLaunch:Sept.16th-December)
BelowStrategywillbedividedintoapreandpostlaunchscheduleof6months.
DetailedStrategy(AlexJune15th)E-commerceStrategy(Gabe)
Segmentation(MarketIdentification)Advertising
ContentStrategy
SocialMedia
E-MailMarketing(Gabe)GrassRoots
PR
Collaborations
ProductLaunchProcess
KickStarter(DevelopMarketingandRolloutCalendar&Strategy)RolloutcontenttoMAX-DList(Pre-LaunchJuneorJuly1st)
PostLaunchSalesCampaign(EmailMarketing&PaidAdvertising)TeamDevelopment
June-StrategyPrepforKickstarterRollout
July-PRPackagedevelopment&MarketingCollateral&PRoutreachAugust-MarketingCampaignLaunchandPRrollout
September1st-KickStarterLaunch(LaunchParty/Event)
