Common use of Monthly Compensation Clause in Contracts

Monthly Compensation. As consideration for the performance of the Services, Company will pay Consultant for each month of this Agreement, Ten Thousand Dollars ($10,000) per month, payable within ten (10) days of each month end. The Company shall reimburse Consultant for all reasonable travel and other out-of-pocket expenses incurred in performing the Services. The Company shall reimburse Consultant within thirty (30) days of receipt of Consultant's itemized statement and accompanying receipts. Payment shall be in the form of (i) common stock of the Company, commonly known as "S-8 Shares," with a fair market value as of the date of issuance equal to the amount due using the average of the price as of closing as reported on the Over the Counter Bulletin Board, or, (ii) cash. Both parties must mutually agree on form of payment. In addition, the Board of Directors or authorized committee thereof, will grant to the Consultant a warrant to purchase 200,000 shares of common stock over the Term of the Agreement, prorated quarterly in advance. The warrant shall be exercisable at any time before midnight on July 31, 2008. The exercise price shall be set equal to the fair market value of the underlying common stock as of the date of grant. The warrant shall also provide for "cashless" exercise. The parties acknowledge that no amounts have been paid to Consultant under the first paragraph of this Section 2 and that Company owes Consultant for services rendered for the months of August, September, October, November, and December 2003, an aggregate total of Fifty Thousand Dollars ($50,000) (the "Prior Period Amount"). Company agrees to pay Consultant this Prior Period immediately. Payment of the Prior Period Amount shall be in at least 50% in cash. The remaining balance will be in the form of (i) common stock of the Company, commonly known as "S-8 Shares," with a fair market value as of the date of issuance equal to the amount due using the average of the price as of closing as reported on the Over the Counter Bulletin Board, or, (ii) at the discretion of the Company, cash.