Stephen Rossi Consulting Agreement AGREEMENT made as of the 20th day of December, 1999 by and between VHS Networks Inc. maintaining its principle offices at 228 Matheson Blvd., East, Mississauga, ON., Canada L4Z1X1 (hereinafter referred to as "Client") and Stephen Rossi located at 1405 Larkspur Street, Malvern, PA 19355(hereinafter referred to as the "Company"). Witnesseth: WHEREAS, Company is engaged in the business of providing and rendering public relations and communication services and has knowledge, expertise and personnel to render the requisite services to Client; and WHEREAS, Client is desirous of retaining Company for the purpose of obtaining public relations and corporate communications services so as to better, more fully and mor effectively deal and communicate with its shareholders and the investment banking community. NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained herein, it is agreed as follows: 1. Engagement of Company. Client herewith engages Company and Company agrees to render to Client public relations, communications, advisory and consulting services. A. The consulting services to be provided by the Company shall include, but are not limited to, the development, implementation and maintenance of an ongoing program to increase the investment community's awareness of Client's activities and to stimulate the investment community's interest in Client. Client acknowledges that Company's ability to relate information regarding Client's activities is directly related to the information provided by Client to the Company. Client will pay the Company, as compensation for the services provided for in this agreement 150,00 shares of Client's free trading (no restrictions) common stock prior to start of contract. 3. Term This Agreement shall be for a period of one year commencing at time of delivery of free trading common stock. 4. Treatment of Confidential Information Company shall not disclose, without the consent of Client, any financial and business information concerning the business, affairs, plans and programs of Client which are delivered by Client to Company in connection with Company's services hereunder, provided such information is plainly and prominently marked in writing by Client as being confidential. 5. Representation by Company of other clients Client acknowledges and consents to Company rendering public relations, consulting and/or communications services to other clients of the Company engaged in the same or similar business as that of client. 6. Indemnification by Client as to Information Provided to Company Client acknowledges that Company, in the performance of its duties, will be required to rely upon the accuracy and completeness of information supplied to it by Clients officers, directors, agents and/or employees. Client agrees to indemnify, hold harmless and defend Company, its officers, agents and/or employees from any proceeding or suit which arises out of or is due to the inaccuracy or incompleteness of any material information supplied by Client to Company. 7. Non-Assignment This Agreement shall not be assigned by either party without the written consent of the other party. 8. Notices Any notice to be given by either party to the other hereunder shall be sufficient if in writing and sent by registered or certified mail, return receipt requested, addressed to such party at the address specified on the first page of the Agreement or such other address as either party may have given to the other in writing. 9. Entire Agreement The within agreement contains the entire agreement and understanding between the parties and supersedes all prior negotiations, agreements and discussions concerning the subject matter hereof. 10. Modification and Waiver This Agreement may not be altered or modified except by writing signed by each of the respective parties hereof. No breach or violation of this Agreement shall be waived except in writing executed by the party granting such waiver. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written above. By: /s/ Stephen Rossi - --------------------- Stephen Rossi VHS Networks By: /s/ Elwin Cathcart - ---------------------- Elwin Cathcart, CEO