EXHIBIT 10.1
MANAGEMENTCONSULTING AGREEMENT
Effective Date: Dec 1, 2017
ThisManagementConsultingAgreement(“Agreement”) ismadeby andbetweenBLACKSTAR ENTERPRISE GROUP, INC., incorporated in Delaware andhaving aprincipalplaceofbusiness at 4450 Arapahoe Ave Boulder co 80303 (the Company”), andINTERNATIONAL HEDGE GROUP, INC. John Noble Harris and Joseph E Kurczodyna(the “Consultants”).
1.Engagementof Services. Subject to the termsofthis Agreement,Consultantwillrender management services and coordination of the operation of theCompany as listed In “Exhibit A”. The Companymay also issuenewproject assignments toConsultantfrom time to time to be mutually agreed upon by the parties.
2.Compensation.CompanywillpayConsultantthefeeset forthin "Exhibit A"forservicesrenderedpursuant tothisAgreement.Consultantwill alsobereimbursedfor expenseswhich are approved in advancein writingby theCompany, and paid withinten(10)daysofreceiptofConsultant’sinvoice,providedConsultanthasfurnishedsuchdocumentationforauthorizedexpensesasCompanymayreasonablyrequest. Upon terminationof thisAgreementfor anyreason,Consultantwillbepaidfeesonthebasisstatedin theProjectAssignment(s)for workthathasbeen completed.
3.IndependentContractorRelationship.Consultant’srelationshipwithCompany isthatof anindependent contractor,andnothingin this Agreement is intended to,orshouldbe construed to, create apartnership, agency,jointventureoremploymentrelationship.Consultantwillnotbe entitled to anyofthebenefits,whichCompanymaymake available to itsemployees,including,without limitation,grouphealthor lifeinsurance,profit-sharingorretirementbenefits.Consultant isnotauthorized tomake anyrepresentation, contractor commitmentonbehalfofCompany,unlessspecificallyrequestedor authorized inwriting todosoby aCompanymanager.Consultant issolelyresponsiblefor, andwillfile,on a timelybasis, all taxreturns andpaymentsrequired tobefiledwith,ormade to, anyfederal,stateor local tax authoritywithrespect to theperformanceofservices andreceiptoffeesunder this Agreement.Consultant issolelyresponsiblefor, andmustmaintain adequaterecordsof, expensesincurred in the courseofperformingservicesunder this Agreement. NopartofConsultant’s compensation willbesubject towithholdingbyCompanyfor thepaymentof anysocialsecurity,federal,stateor anyotheremployeepayroll taxes.
4. IntellectualPropertyRights.
4.1Disclosure andAssignmentofIntellectualProperty.
(a)IntellectualProperty.“IntellectualProperty” includesany and allneworuseful art,discoveries,improvements, technicaldevelopments,know-how,formulae,processes,manufacturing techniques, trade secrets, ideas, or inventions,
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whether or not patentable and all copyrightable works, designs, mask works, trademarks, patents, patent applications, artwork and software that Consultant, solely or jointly with others, makes, conceivesorreduces topractice withinthescopeofConsultant’swork forCompanyunder this Agreement.
(b)Disclosure andOwnershipofIntellectualProperty.Consultant agrees tomake andmaintainadequate and currentrecordsof all inventions,whichrecordsshallbe andremain thepropertyofCompany.Consultant agrees topromptlydisclose everyinvention toCompany.Consultantherebyassigns andagrees toassign toCompanyor itsdesignee itsentireright,titleandinterestworldwide in allIntellectualProperty.
(c)Assistance. Consultant agrees to execute upon Company’s request a signed transfer of ownership to Company included in each Project Assignment for all inventions and all works subject to copyright protection, including, but not limited to, computer programs, notes, sketches, drawings and reports. Consultant agrees to assist Company in any reasonable manner to obtain and enforce for Company’s benefit patents, copyrights, mask works, and other property rights in any and all countries, and Consultant agrees to execute, when requested, patent, copyright or similar applications and assignments to Company and any other lawful documents deemed necessary by Company to carry out the purpose of this Agreement. If called upon to render assistance under this section, Consultant will be entitled to a fair and reasonable fee in addition to reimbursement of authorized expenses incurred at the prior written request of Company.
4.2ConfidentialInformation.
(a)DefinitionofConfidentialInformation. “ConfidentialInformation”,asusedinthisAgreement,shallmeananyand all technical andnon-technicalinformationandproprietary information, including,without limitation, techniques,sketches,drawings,models,IntellectualProperty, apparatus, equipment, algorithms,softwareprogramsandsoftwaresource codedocuments,related to the current,future andproposedproducts andservicesofCompany, itssuppliers and customers,Company’s information concerningresearch, experimentalwork,development,designdetailsandspecifications, engineeringinformation,financialinformation,procurementrequirements,purchasingandmanufacturing information, customer lists,businessforecasts,salesandmerchandising andmarketingplansand information.
(b)Nondisclosure and Nonuse Obligations. Consultant will use the Confidential Information solely to perform Project Assignment(s) for the benefit of Company. Consultant agrees that it shall treat all Confidential Information of the Company with the same degree of care as it accords to its own Confidential Information, and Consultant represents that it exercises, at a minimum, reasonable care to protect its own Confidential Information. If Consultant is not an individual, Consultant agrees that it shall disclose Confidential Information only to those employees who need to know such information and certifies that such employees have previously agreed, either as a condition of employment or in order to obtain the Confidential Information, to be bound by terms and conditions substantially similar to those of this Agreement. Consultant
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agreesnot to communicateanyinformation toCompanyinviolationoftheproprietaryrightsof anythird party.Consultant willpromptlygivenotice toCompanyof anyunauthorizeduseordisclosureoftheConfidentialInformation.Consultant agrees to assistCompanyinremedying anysuchunauthorizeduseordisclosureof theConfidentialInformation.
(c)Exclusionsfrom Nondisclosure Obligations.Consultant’sobligationsunder Section4.2 (b)(“Nondisclosureand Nonuse Obligations”)withrespect toConfidentialInformationdonot existorshall terminate if:(i.) the information was in thepublicdomain atorsubsequent to the informationwasrightfullyinConsultant’spossessionfreeof anyobligationof confidence atorsubsequent to thetime it was communicated toConsultantby thedisclosingparty;or(iii)the informationwasdeveloped by employees or agents of Consultant independently of,andwithoutreference to,any information communicated toConsultantby thedisclosingparty.IfConsultant isrequired todisclose theConfidentialInformationinresponse to avalidorderby a courtorothergovernmentbody,or asotherwiserequiredby lawor asnecessary to establish therightsof eitherpartyunder this Agreement,Consultant agrees toprovideCompanywithpromptwrittennoticeso as toprovideCompany with areasonableopportunity toprotectsuchConfidentialInformation.
(d)DisclosureofThirdPartyInformation. Neitherpartyshall communicate anyinformation to theother inviolationoftheproprietaryrightsof anythirdparty.
4.3Return ofCompany’s Property.Allmaterials(including,withoutlimitation,source code,documents,drawings,models, apparatus,sketches,designsand lists)furnished toConsultantbyCompany,whetherdelivered toConsultantbyCompanyormadebyConsultant intheperformanceofservicesunder this Agreement(collectivelyreferred to as the“CompanyProperty”) are thesole and exclusivepropertyofCompanyand/or itssuppliersor customers.Consultant agrees to keep allCompanyproperty atCompany’spremises,unlessotherwisepermitted inwritingbyCompany.Consultant agrees topromptlydelivertheoriginal andany copiesoftheCompanyProperty to Company at anytimeuponCompany’srequest. Upon terminationofthis Agreementbyeitherpartyfor anyreason,Consultant agrees topromptlydeliver toCompanyordestroy, atCompany’soption, theoriginal andany copiesof theCompanyProperty.Withinfive(5)days after the terminationof this Agreement,Consultant agrees to certifyinwriting that Consultanthas soreturnedordestroyed allsuchCompanyProperty.
4.4ObservanceofCompanyRules.At all timeswhileonCompany’spremises,Consultant willobserveCompany’srules andregulationswithrespect to conduct,health andsafety andprotectionofpersons andproperty.
5.NoConflictofInterest.During the termofthisAgreement,Consultantwillnot acceptwork,enter into a contract,or accept anyobligation,inconsistentor incompatiblewithConsultant’sobligations,orthescopeofservicesrenderedforCompany,underthis Agreement.Consultant covenants,representsandwarrants toCompanythatConsultantisnotboundbyorsubject to any contractualorother
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obligations thatwouldbeviolatedbyConsultant’s executionorperformanceof this Agreement.Consultantfurtherwarrantsthat, to thebestof itsknowledge, there isnoother contractordutyonConsultant’spartwhich conflictsor is inconsistentwiththis Agreement.Consultant agrees to indemnifyCompanyfromany and all lossor liability incurredbyreasonofthe allegedbreachbyConsultantof anyservicesagreementwithanythirdparty.
6. Term andTermination.
6.1Term.This Agreement is effectiveasoftheEffective Datesetforth aboveandwill continue unless terminated earlier as setforthbelow.
6.2TerminationbyCompany.Companymay terminatethis Agreement,withorwithout cause, at any timeuponthirty(30)daysprior writtennotice toContractor.Company alsomay terminate thisAgreementimmediately in itssolediscretionuponConsultant’smaterialbreachof Section 4.(“IntellectualPropertyRights”), Section 7.(“NoninterferencewithBusiness”) and/orupon any actsofnegligenceormisconductbyConsultantdirectly affecting this Agreementor the independent consultingrelationship.
6.3TerminationbyContractor. Exceptduringthe termof aProjectAssignment,Consultantmay terminatethisAgreement,withorwithout cause, atany timeuponthirty(30)days’priorwrittennotice to theCompany.Sections 4. ("Intellectual PropertyRights”) and 7.(“Noninterference withBusiness”) willsurvive any terminationor expirationof this Agreement.
7.NoninterferencewithBusiness.Duringthis Agreement,andfor aperiodof one(1)yearimmediatelyfollowing its termination,bothConsultant and Company agreenot tointerferewitheach other’sbusinessinanymanner.Bywayofexample andnotof limitation,both partiesagreenot tosolicitor induceanycustomer,supplier,employeeorindependent contractor to terminateorbreach a contractual,anemploymentor anyotherrelationshipwiththe parties.
8.SuccessorsandAssigns.Consultantmaynotassignthis Agreementorsubcontractorotherwisedelegate itsobligationsunder this AgreementwithoutCompany’sprior written consent. Subject to theforegoing, this Agreementwill inure to thebenefitofCompany’ssuccessors and assigns, andwillbebindingonConsultant’spermitted assignees.
9.GeneralIndemnity.Subject to theotherexpressprovisionsherein, eachpartyagrees todefend, indemnifyandholdharmlesstheotherpartyfrom andagainst allreasonably incurred costs, expenses,fees,damages(“Damages”) arisingoutofthis Agreement,ortheperformanceof Serviceshereunder, to the extent anysuch Damages arisefrom the indemnifyingparty’sgrossnegligence,willfulmisconduct,fraudorbreachof anymaterialobligationhereunder.
10.LiabilityLimitation. EXCEPTASPROVIDEDIN SECTION9, NOTWITHSTANDINGANYTHING OTHERWISETOTHECONTRARY,IN NO EVENT SHALL EITHERPARTYBELIABLETOTHEOTHER FORANY SPECIAL,
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INDIRECT,CONSEQUENTIAL,INCIDENTAL ORPUNITIVE DAMAGES.
11.Notices. Anynoticerequiredorpermittedbythis Agreementshallbe inwritingandshallbedelivered asfollowswithnoticedeemedgivenas indicated:(a)bypersonaldeliverywhendeliveredpersonally;(b)byovernight courieruponwrittenverificationofreceipt;(c)by telecopyorfacsimile transmissionupon acknowledgmentofreceiptofelectronic transmission;or(d)by certifiedorregisteredmail,returnreceiptrequested,uponverificationofreceipt. Noticeshallbesent totheaddressessetforth aboveorsuchother address as eitherpartymayspecifyinwriting in accordancewiththissection.
12.GoverningLaw.ThisAgreementshallbegovernedbytherespectivelawsof the United Statesof America andofthe State of Colorado. Any disputes will be resolved by mutual arbitration. The arbitrator will be a member of the American Arbitration Association (AAA).
13.Severability.Shouldanyprovisionsofthis Agreementbeheldby a courtof law tobe illegal,invalidorunenforceable, the legality,validityand enforceabilityof theremainingprovisionsof this Agreementshallnotbe affectedor impaired thereby.
14. Waiver.ThewaiverbyCompanyof abreachofanyprovisionofthis AgreementbyConsultantshallnotoperateorbe construed as awaiverofanyotherorsubsequentbreachbyConsultant.
15.InjunctiveReliefforBreach.Consultant’sobligationsunder thisAgreement areof auniquecharacterthat gives them aparticular value;breachof anyof suchobligationswill resultin irreparable and continuingdamage toCompanyorwhichtherewillbeno adequateremedyat law;and,in the eventofsuchbreach,Companywillbe entitled toseek injunctiverelief and/or adecreeforspecificperformance, andsuchother andfurtherrelief asmaybeproper(including monetarydamagesif appropriate).
16.Entire Agreement.This Agreement constitutestheentireagreementbetween thepartiesrelating to thissubjectmatter andsupersedes allprioror contemporaneousoralor written agreements concerningsuchsubjectmatter.The termsofthis Agreementwillgovern allProject AssignmentsandservicesundertakenbyConsultantfortheCompany.This Agreementmayonlybe changedbymutual agreementofauthorizedrepresentativesoftheparties inwriting.
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INWITNESSWHEREOF, the authorizedrepresentativesof thepartiesheretohave executed this Agreementasof thedatefirstwrittenbelow. The parties acknowledge that the terms of this Agreement have been effective beginning Dec 1, 2017.
BLACKSTAR ENTERPRISE GROUP, INC:
By: /s/ Joseph E. Kurczodyna
______________________________________
Joseph E Kurczodyna
Title: CFO
By: /s/ Joseph E. Kurczodyna
________________________________________
Joseph E Kurczodyna
Director
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"EXHIBIT A – SERVICES & FEES”
Services.
Areasof Focus:
· | Assist the Company in all filings that necessary to be a fully reporting public company |
· | Assist the Company in public relations |
· | Evaluate candidates for the portfolio of companies in merchant bank. |
· | Establish new contacts for the company and develop proposals and deals to capture revenues |
· | Assist the Company in their capital funding strategy (including discovery of potential investors) |
Paymentof Fees:Feeswillbe:
1. | The Consultants shall be paid $25,000 total for services 2017. |
2. | Consulting fees from Consultant may request cash, stock, or a combination of both as payment with mutual agreement. |
3. | Expenses are limited to the budget allocated by the Company. Company out of that budgetshallreimburseConsultant within the limit of the budgetfor allreasonable pre-approvedout-of-pocket expenses(transportation,hotel,andmeals,and related expenses as needed)asactually incurredbyConsultant on behalfoftheCompany. |