"Confidentiality Agreement - MARSHALL HOLDINGS INTERNATIONAL, - 4-15-2005"
NON-CIRCUMVENTION/NON-DISCLOSURE AND CONFIDENTIALITY AGREEMENT The agreement is made and entered into this 2nd day of August 2004, by and between: Bill Woo and Gateway Venture Holdings, Inc., a Nevada corporation ("Gateway"). WHEREAS, the purpose of this Agreement is to lay down the terms and conditions, and guidelines which will allow the respect and protection of each Party's respective proprietary interests. NOW THEREFORE, in considering of the various representations, mutual promises, covenants, and undertakings contemplated herein and for good valuable consideration, the value of which is acknowledged by the Parties by execution hereof, the Parties agree as follows: 1. None of the parties shall divulge to any person, (other than those whose provenance it is to know it, or with proper authority) or use any trade secrets or confidential information or any financial or trade information relating to the other, which they acquire as a result of the discussing of or the entering into agreements with each other. Each Party shall endeavor to prevent its officers, employees, agents, representatives, and associates from doing anything, which, if done by Party, would be a breach of this agreement. This restriction shall continue to apply after the expiration of this Agreement, and other Agreements entered into between the Parties, without limit in point of time, but shall cease to apply to secrets or information, which came into the public domain through no fault of the Party concerned. 2. The Parties each undertake to the other that for a period of five (5) years from the date of this Agreement, they will not, without prior written consent of the other, directly or indirectly through third parties, make or seek to make contact or communication with those Banks, Financial Institutions, government representatives, clients, investors, traders, associates, legal advisors and financial advisors with whom they have been placed into contact with by the other or to whom the names, addresses and other pertinent information has been released to them by the other. 3. Each party undertakes irrevocably and unconditionally: a. To ensure that all aspects of each transaction remain confidential. b. Not to disclose, either verbally or in written form, any knowledge that it may obtain at any time in the future, be it either implicit or implied, with respect to the implementation of any proposed transaction. c. Not to circumvent or attempt to circumvent the other. d. Not to disclose to third parties the names, addresses, fax and telephone coordinates of any contact/client revealed by one party to the other. e. Not to enter into direct or indirect negotiations with any other's contacts/clients. f. Not to show, deliver, or cause to be seen, any documents, papers, correspondence, memoranda or copies of such to other than person(s) or entities of any kind, except to those whom are required to maintain confidentiality such as an attorney or tax advisor. g. Each Party shall endeavor to ensure that any of its officers, employees, agents, representatives or associates who, by virtue of their duties may receive the type of information described in this Agreement, are fully obligated to respect the spirit and terms of this Agreements in the same way as each Party. Each Party shall undertakes to have those officers, employees, agents, representatives or associates acknowledge their obligation by Countersigning a copy of this Agreement, thereby binding them to honor the terms of this Agreement. 4. Each Party acknowledges that any breach of the terms and conditions of this Agreement by either party or its employees, agents, representatives or associates may render the seeking of liquidated damages, by the other and the cancellation and termination of all agreements and transactions. 5. This Agreement has been entered into by each Party acting on its own free will and judgment and shall be binding on the Parties, their heirs or successors, administrators, and assignees. 6. Any dispute or controversy arising out of or relating to any interpretation, construction, performance, or breach of this Agreement shall be resolved exclusively by binding arbitration in Las Vegas, Nevada, in accordance with the rules then in effect of the American Arbitration Association, The arbitrator(s) may grant injunctions or other relief in such dispute or controversy. The decision of the arbitrator(s) shall be final, conclusive, and binding on the parties to the arbitration. Judgment may be entered on the arbitrator's decision in any court having jurisdiction. The parties to the arbitration shall each pay an equal share of the costs and expenses of such arbitration, and each of them shall separately pay their counsel fees and expenses. 7. The release of confidential information pursuant to a protested court order shall not be deemed to be a violation of this Agreement. 8. This Agreement may be executed in one or more counterparts each of which shall be binding on each party by whom or on whose behalf it is so executed, but which together shall constitute a single instrument. For the avoidance of doubt, this Agreement shall not be binding on any party hereto unless and until it shall have been executed by or on behalf of all persons expressed to be party hereto. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. BILL WOO By:_____________________________ Bill Woo GATEWAY VENTURE HOLDINGS, INC. By: _____________________________ Rick Bailey Its: President By: _____________________________ Flo Ternes Its: Chief Operations Officer CONSULTING AGREEMENT This agreement is made this 10th day of January 2005 between The Right Solutions Gateway at 3220 Pepper Lane, Las Vegas, Nevada 89120, hereinafter referred to as RSG. Phone number (702) 317-2400 and Jack M. Zufelt at 3228 East Phillips Drive, Centennial, Colorado 80122, hereinafter referred to as Zufelt. Phone number (303) 741-9025. RSG agrees to retain Zufelt, and Zufelt has agreed to provide certain consulting services on the terms and conditions set out below. RESPONSIBILITIES OF ZUFELT: Zufelt will be responsible for the training of existing as well as future distributors of TRS via all modalities available to him. Zufelt shall put forth, on a "best efforts" basis, regular and ongoing marketing for the express purpose of recruiting distributors. Zufelt will also provide consulting services at the request of RSG regarding any issues related to the business and/or the industry. 1. Zufelt will consult with RSG on all aspects of their business as well as create and implement important strategies regarding all aspects of what it takes to cause prospecting and recruiting. Zufelt will: - Sell and train our existing distributors on using the system created and coordinate training conference calls for new groups. - Work one on one with key distributors. - Become a designated distributor to recruit new members - Zufelt will report direct to the President and COO RESPONSIBILITIES OF RSG 1. In exchange for Zufelt's services listed above, RSG shall pay Zufelt a guaranteed minimum amount of five thousand dollars ($5,000.00) per month through January 2005 in perpetuity except as defined below in paragraph 1.1a. This monthly fee will increase to $10,000 in February 2005 and will be paid on February 20, 2005, then in the month of March 2005 it will increase to $12,000 payable on March 20, 2005; the fee will then increase to $15,000.00 per month in April, 2005 and be paid on the 20th of each month thereafter in perpetuity. These payments shall come from the combination of two sources; A) A new position that is created above all past, present and future distributors. All income that this newly created position generates shall be paid to Zufelt in perpetuity but Zufelt shall not have ownership of that position except as covered in paragraph 1b below. B) In the event said position does not earn enough income in any given month to meet the minimum of fifteen thousand dollar guarantee, RSG shall make up the difference each month. This 1 newly formed position will be flagged and qualified for commission payments each month by the Company. Zufelt shall not be required to meet any minimum monthly qualifications to get paid this income except as described in paragraph 1a below. All income earned by this position shall be paid to Zufelt as a consulting fee by the 20th of each month. These payments will begin with the January 2004 commission checks for the month of December and will be ongoing monthly thereafter in perpetuity. 1.1a. In the event Zufelt shall no longer be able, or no longer wishes, to perform the services as outlined above he will still be paid the income from that position in perpetuity however the company shall no longer be obligated to pay the difference between what the position earns and $5,000.00 In addition should either of the above mentioned events happen Zufelt shall, in the month following said event, be required to start paying the standard minimum amount each month required by the company to qualify to be paid the income earned from said position as long as said income is equal to, or greater than, the one hundred dollar minimum qualification. Said amount for minimum qualification shall not exceed one hundred dollars. 1.1b. Zufelt shall be provided monthly statements showing the income of the newly created position. At his option, Zufelt may choose to have said position put in his name or the name of an assignee at any time. 2. RSG shall also issue to Zufelt five million preferred shares of stock class B prior to February 20, 2005. Once RSG monthly revenues reaches the following levels, additional preferred stock shall be issued to Zufelt in the following amounts: Gross Monthly Revenues Shares to Zufelt $ 250,000 100,000 $ 400,000 200,000 $ 1,000,000 500,000 $ 5,000,000 2,000,000 All stock issued will be restricted for a period of one year from the date of issuance. Stock certificates will be issued on each level of monthly revenues reached as described above within ten business days of the accomplishment. All expenses for Zufelt's services shall be paid for by RSG. Said expenses are to include, but are not limited to, travel, meals, lodging, rental cars, airport parking, shuttle or taxi fees, long distance calls, all mailings costs including postage, envelopes, inserts etc. Both parties shall agree upon all expenses before Zufelt incurs them. This contract will be construed according to the laws of the State of Nevada and any disputes arising here from will be litigated in its courts. ENTIRE AGREEMENT. This agreement contains the entire agreement of the parties and there are no other promises or conditions in any other agreement whether oral or written. This Agreement supersedes any prior written or oral agreements between the parties. This contract sets forth the entire understanding and agreement and is not subject to amendment or supplemental agreement except in writing and duly executed by both parties. This agreement shall be valid and binding only when signed by both an authorized agent for RSG and Jack M. Zufelt. 2 Signed _________________________________ Date ___________________ Jack M. Zufelt Signed The Right Solution Gateway _________________________________ Date ___________________ Rick Bailey President / CEO 3 [GRAPHIC OMITTED] MEDIA SERVICES AGREEMENT CHIEF MEDIA CHIEF MEDIA, LLC. fvx This Media Services Agreement (this "Agreement") is made and entered into as of March 10, 2004, by and between CHIEF MEDIA, LLC a Limited Liability Company ("Agency"), with its principal offices at 70 West 36th Street, 10th Floor, NY, NY 10018 , and THE RIGHT SOLUTION ("Advertiser") with its principal offices at 3035 E. Patrick Lane, Suite 14, Las Vegas, NV 89120 (collectively Agency and Advertiser are referred to as the "Parties" or individually, each is referred to as a "Party"). RECITALS WHEREAS Agency is in the business of planning, managing and procuring advertising media time (on television and radio) and space (in newspapers, magazines, and other published media) and other initial "pre-rollout" services outlined in Section 5 herein; on behalf of businesses seeking to advertise their products and services; and WHEREAS Advertiser desires to engage Agency and to have Agency plan, manage and procure media time and/or space for the purpose of advertising various direct marketing campaigns (collectively, the "Project"); NOW, THEREFORE, in consideration of the agreements set forth below and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. ENGAGEMENT OF AGENCY. Advertiser hereby engages Agency as its exclusive agent to book and purchase advertising media time or space on behalf of and for the use of Advertiser for the purpose of advertising the Project (Rollout Phase) Subject to the provisions of Section 2, Advertiser hereby authorizes Agency to enter into contracts (in the name and on behalf of Advertiser) with third parties for the purchase of media time or space. 2. RESPONSIBILITIES OF AGENCY. (A) Upon being advised by Advertiser of its proposed budgets thereof, Agency shall prepare detailed media plans consistent with such budgets. Such plans shall consist of a listing of day parts, date spans, and such other criteria as Advertiser may reasonably specify for each media type purchased. Following Advertiser's approval of the media buy plans, Agency shall buy the advertising time or space on behalf of Advertiser and implement such approved plans. (B) Upon completion of media buys, Agency will provide a summary comparison of planned media to purchased media. Agency will endeavor to prepare and forward to Advertiser such summary comparisons on a weekly basis. (C) Agency will assist the Advertiser's chosen tape duplication and customization vendor ("Vendor") by providing the Vendor with the station's requirements for airing including the size of tape, trafficking instructions, and the time prior to airing in which the station must receive the tape. (D) Agency will provide ongoing analysis setting forth recommended adjustments to the existing media buy based on interim telemarketing sales results and Advertiser direction. (E) Agency will reconcile any discrepancies, subject to Advertiser's approval, and obtain make-goods, credits or other compensating adjustments from the media suppliers. (F) Agency will work directly with Advertiser's telemarketing service provider to assess order results and assist in problems involving sourcing of all data points captured. Upon advertiser's requested schedule as defined during operational set up, Agency shall provide written estimates of orders, cleared dollars, and cost-per-order. The estimates shall be based on analysis of order "bursts" received from the telemarketer. On an ongoing basis, Agency will provide Advertiser with reports containing similar information based upon air times received from media vendors, and Agency will use best efforts to insure the accuracy of such reports. The reports will provide Advertiser a listing of the orders, cleared dollars, cost-per-order, cost per call, cost per thousand, up-sell ratios, order ratios and media efficiency ratios for each media spot individually and in the aggregate. INITIAL: 1 3. ADVERTISER AUTHORIZATIONS AND APPROVALS. Within the reasonable requirements and parameters established by Advertiser and of which Agency is given written notice, Advertiser hereby authorizes Agency to purchase and book media advertising availabilities ("Availabilities") without Advertiser's prior approval. Notwithstanding the foregoing, Advertiser reserves its right to serve advance written notice upon Agency requiring Agency to obtain prior approval to purchase and book future Availabilities. Said notice shall only be effective as to future bookings, and shall not affect those bookings which Agency cannot cancel in compliance with the media supplier's cancellation policy. Agency, upon receiving such written notice, shall submit to Advertiser suggested media advertising availabilities with costs for its use ("Suggested Availabilities"), and Advertiser within a reasonable time prior to the date and time such availabilities must be booked shall select and approve, via email, those Suggested Availabilities that it desires to purchase ("Approved Availabilities"). During the term of this Agreement, Advertiser shall not book the Suggested or Approved Availabilities other than through Agency. Agency shall use all reasonable efforts to book the Approved Availabilities for Advertiser's use. Agency shall not be liable or responsible for any failure to obtain Approved Availabilities due to Advertiser's delay in selecting and approving the media. (Approved Availabilities booked for Advertiser's use are hereinafter referred to collectively as the "Media Contracts" or individually as a "Media Contract"). 4. ADVERTISER'S LIABILITY. Advertiser shall be liable for and shall pay Agency all incidental costs and expenses related to each Media Contract, and all commissions owed to Agency for each such Media Contract as specified in Section 5. 5. COMPENSATION. (A) Advertiser shall be liable for and shall pay to Agency a commission equal to Fifteen Percent (15%) of the "Gross Media" dollars spent or as scheduled per the Media Contract. The parties agree that Gross Media shall mean the total cost of media purchased inclusive of agency commission. (B) Agency, upon undertaking any of the initial "pre-rollout" services mentioned below, with and on behalf of Advertiser, shall bill Advertiser per the following fee schedule: (See Section 5C for waiver clause): Commercial Production Assistance/Scripting - $500 per hour Vendor setup - $400 per hour Call center script writing - $500 per hour Call Center Training - $3,000 per day + out of pocket expenses (C) In the event Advertiser and Agency proceed to the Rollout Phase the above fees will be waived by Agency and applied against future commissions per 5(A). The parties agree that Rollout shall mean gross media spend of at least $300 thousand dollars spent per week for a consecutive four week period. 6. BILLING AND PAYMENT. Agency shall regularly invoice Advertiser for the costs and expenses of all Media Contracts and Agency's commission for such contracts. Agency will invoice Advertiser not less than four (4) weeks in advance of the first scheduled airdate for all media types ("First Scheduled Airdate") and Advertiser shall make payment not later than three (3) weeks prior to the First Scheduled Airdate. Advertiser shall remit funds to Agency by wire transfer to the following account: J.P. MORGAN CHASE CHIEF MEDIA ACCOUNT # 891-502399665 ROUTING # 021-0000-21 350 MAIN STREET HUNTINGTON, NY 11743 631-673-7422 INITIAL: 2 7. CANCELLATIONS. (A) In the event that Advertiser cancels any Media Contract such that Agency is unable to cancel its contract with the media outlet including, but not limited to, print, broadcast stations, cable stations, radio stations and online media, Advertiser shall remain liable for and shall pay Agency the following: (i) All actual costs incurred in connection with such canceled Media Contract; and (ii) Agency's commission for such canceled contract. In the event of cancellation by Advertiser pursuant to this Subsection 7(A), Agency shall use its reasonable best efforts to mitigate Advertiser's liability to Agency for costs and commissions. If Agency is able to resell the Media Contract, Advertiser will be liable to Agency only for an amount equal to the cost and commission which Agency would receive under the relevant Media Contract less the cost and commission, if any, actually received by Agency upon resale. (B) If Advertiser fails to make timely payments, for the costs, expenses and commissions for any Media Contract, as required by Sections 4, 5 and 6 hereof, Advertiser will be charged a fee equal to one half of one percent (.50%) per week of any balance outstanding and Agency reserves the right, in its sole discretion, but shall not be obliged to, deem the unpaid Media Contract as having been canceled by the Advertiser. (C) Except as provided in Subsection 7(B), cancellations of Media Contracts by Advertiser may only be made in writing signed by Advertiser and delivered to Agency. 8. CONFIDENTIALITY. (A) Agency agrees that all confidential proprietary information, materials, and knowledge acquired or learned by Agency from Advertiser or developed or obtained by Agency in connection with its services hereunder, including but not limited to, ordering information, strategy, sales results, data, media information, financial results, customer lists, trade secrets, costs, and other information, which if disclosed could be of assistance to Advertiser's competitors, will be held by Agency in confidence. Except as may otherwise be required by applicable law or judicial or administrative order, such information may not be disclosed or used by Agency for any purpose whatsoever except solely by Agency personnel, its advisors and representatives or otherwise in furtherance of Agency's obligation's and responsibilities to Advertiser under this Agreement. The obligations of this paragraph do not apply to information which is or later becomes part of the public domain through no fault of Agency. (B) Advertiser agrees that all confidential proprietary information, materials, and knowledge acquired or learned from Agency or developed or obtained in connections with Agency's services hereunder, including but not limited to, Suggested Availabilities, stations, unit costs for the time slots, scripting, buying strategies, analytical strategies and other information which if disclosed could be of assistance to Agency's competitors will be held by Advertiser in confidence. Except as may otherwise be required by applicable law or judicial or administrative order, such information may not be disclosed or used for any purpose whatsoever except solely by Advertiser's personnel in furtherance of Advertiser's obligation's and responsibilities to Agency under this Agreement. The obligations of this paragraph do not apply to information which is or later becomes part of the public domain through no fault of Advertiser. 9. INDEMNIFICATION. Each party shall indemnify and hold the other party harmless from and against all claims, liabilities, loss and damages arising from or relating to any and all Media Contracts, and any and all claims, liabilities, losses or damages arising from or relating to any advertising for which Media Contracts are used and the products or services advertised, including the costs of litigation and attorney's fees, unless the claim, liability, loss or damages arise solely from the negligence of the party against which such claim is made. In addition, notwithstanding the foregoing, Agency and Advertiser agree that Agency is not responsible or liable to Advertiser or Advertiser's Client, if any, for any claims or damages arising from or relating to the sales performance of any product or service advertised, without regard to whether or not Advertiser or Advertiser's Client approved the Availability. Both party's liability hereunder shall not exceed the amounts paid by Client to Agency hereunder, and in no event shall either party be liable for consequential damages. 10. EFFECTIVE DATE. This Agreement shall be effective as of the date of this Agreement first set forth above. INITIAL: 3 11. TERMINATION. Either party may terminate this Agreement by giving the other party sixty (60) days advance written notice thereof. All rights and duties of the parties shall continue during such notice period; provided, however, that Agency shall not obtain any additional Media Contracts for Advertiser' account during such notice period unless Advertiser provides Agency with written consent to do so, in which case Advertiser shall be liable for all costs, expenses and commissions owed to Agency in accordance with the terms hereof. Notwithstanding any termination of this Agreement, Advertiser shall remain liable to Agency, as provided by this Agreement for all costs, expenses and commissions for Media Contracts that have Air Dates prior to, during, or after either the notice period or the termination of this Agreement. 12. MODIFICATIONS. Advertiser reserves the right to modify, reject, cancel, or stop any and all plans, schedules, or media purchases. In such event, Agency shall promptly take all reasonable steps to carry out Advertiser's instructions. Advertiser agrees to reimburse Agency for all expenses incurred and to indemnify Agency for all claims and actions by third parties for damages and expenses that result from carrying out Advertiser's instructions. 13. RECORD INSPECTION. Agency's records relating to ordering and payment of media and other services hereunder which are billed to Advertiser shall be open to inspection by Advertiser's authorized representatives during normal business hours following reasonable notice to Agency for a period of one year. 14. PUBLICITY. Any public announcement or publicity concerning the relationship established by this Agreement or the services provided hereunder shall be released only upon mutual written consent of both of the Parties. 15. CONTROLLING LAW. The validity, interpretation, and performance of this agreement shall be controlled by and construed under the laws of the State of New York, excluding any conflicts of law principles which would apply the law of any other jurisdiction. It is hereby agreed that any matter arising under this Agreement (subject to the arbitration provisions below) and including, without limitation, any suit to enforce and award under the arbitration provisions hereof, must be finally adjudged or determined in any court or courts of the State of New York or of the United States of America, in New York County, New York, and the parties hereto hereby submit generally and unconditionally to the jurisdiction of such courts and of any of them in respect to any such matter and consent to service of process by any means authorized by New York law. 16. ARBITRATION. Any controversy or claim between the parties, including, but not limited to, those arising out of or relating to this Agreement or any agreements or instruments relating hereto or delivered in connection herewith shall be determined by arbitration. The arbitration shall be conducted in accordance with the United States Arbitration Act (Title 9, U.S. Code), notwithstanding any choice of law provision in this Agreement, and under the Commercial Rules of the American Arbitration Association. The arbitration shall commence at a location in New York County, New York to be chosen by the arbitrators. The arbitrators shall give effect to statutes of limitation in determining any claim. Any controversy concerning whether an issue is arbitrable shall be determined by the arbitrators. Judgment upon the arbitration award may be entered in any court having jurisdiction. The institution and maintenance of an action for judicial relief or pursuit of a provisional or ancillary remedy shall not constitute a waiver of the right of any party, including the plaintiff, to submit the controversy or claim to arbitration if any other party contests such action for judicial relief. No provision of this paragraph shall limit the right of any party to this Agreement to obtain provisional or ancillary remedies from a court of competent jurisdiction before, after or during the pendency of any arbitration. 17. ATTORNEY'S FEES. The prevailing Party in any action brought to enforce this Agreement or any provision hereof, to rescind the same, or to collect damages for an alleged breach thereof shall be entitled to recover its reasonable attorney's fees and court costs from the non- prevailing Party. 18. INTEGRATION AND MODIFICATION. This Agreement contains the entire agreement of the Parties and supersedes any prior understandings and agreements between them respecting the subject matter of this Agreement. No representations were made or relied upon by either Party, other than those that are expressly set forth herein. No agent, employee, or other representative of either Party is empowered to alter any term of this Agreement, unless done in writing and signed by an appropriate officer of Advertiser and an executive officer of Agency. INITIAL: 4 19. ASSIGNMENT UPON TERMINATION. Upon termination of this Agreement and upon payment of all amounts due to Agency hereunder, Agency shall assign to Advertiser all Media Contracts and all Agency's rights and contracts, agreements, arrangements, or other transactions made with third parties for Advertiser's account effective on the date of termination or on such other date as may be agreed upon by the Parties. Advertiser shall assume all obligations and indemnify and hold Agency harmless from all liability thereunder. If any contract is not assignable, or consent to assignment is refused, or Agency cannot obtain a release from its obligations, Agency shall continue performance, and Advertiser shall meet its obligations, as to the unassigned or unreleased contracts to Agency as though this Agreement had not been terminated. 20. WAIVER. The failure of either Party to this Agreement to object to or to take affirmative action with respect to any conduct of the other which is in violation of the terms of this Agreement shall not be construed as a waiver of the violation or breach or of any future violation, breach or wrongful conduct. 21. NOTICES. All notices pertaining to this Agreement shall be in writing and given at the addresses indicated set forth below, or at such other address as may be designated by the Parties. ADVERTISER NAME ADDRESS CONTACT PHONE FAX EMAIL CHIEF MEDIA, LLC 70 WEST 36TH STREET 10TH FLOOR NEW YORK, NY 10018 ATTN: VIC GOLIO 212-300-8977-P 212-629-9505-F VGOLIO@CHIEFMEDIA.COM 22. HEADINGS. Headings in this Agreement are for convenience only and shall not be used to interpret or construe its provisions. 23. PRESUMPTION. This Agreement, having been fully negotiated and drafted by both Parties, shall not be strictly construed against either Party. 24. COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one in the same instrument. 25. BINDING EFFECT. The provisions of this Agreement shall be binding upon and inure to the benefit of each of the Parties and their respective successors and assigns. IN WITNESS WHEREOF, intending to be legally bound, the Parties have executed this Agreement as of the day first above written. CHIEF MEDIA, LLC. ADVERTISER By:_______________________________ By:_______________________________ Vic Golio Name Executive Vice President Title 5 EXHIBIT 21 SUBSIDIARIES None. EXHIBIT 31.1 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Richard A. Bailey, certify that: 1. I have reviewed this annual report on Form 10-KSB of Gateway Distributors, Ltd.; 2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report; 3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have: (a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared; (b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this annual report (the "Evaluation Date"); and (c) presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and (b) any fraud, whether or not material, that involves management or other employees who have significant roles in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this annual report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: April 15, 2005. /s/ Richard A. Bailey ---------------------------------------------------- Richard A. Bailey, Chief Financial Officer and Chief Executive Officer EXHIBIT 32.1 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Annual report of Gateway Distributors, Ltd. (the "Company") on Form 10-KSB for the period ended December 31, 2004 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Richard A. Bailey, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: 1. The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. /s/ Richard A. Bailey ---------------------------------------------------- Richard A. Bailey, Chief Financial Officer and Chief Executive Officer Date: April 15, 2005