EXCLUSIVE FINDER'S AGREEMENT
Exhibit
10.6
EXCLUSIVE
FINDER'S AGREEMENT
This
Exclusive Finder's Agreement (this "Agreement") is made as of October 4,2007,
between Xxxxxxxx Uranium, a Washington corporation (the "Company"), and Empire
Financial Group, Inc., a Florida corporation (the "Exclusive Finder"). The
Exclusive finder and the Company agree:
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1.
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Engagement
of Exclusive Finder: The
Company hereby
engages the Exclusive Finder, and the Exclusive Finder hereby accepts
such
engagement, to act as the Company's Exclusive Finder with respect
to sales
by the Company in a private placement transaction (the "Offering")
of up
to $6 million aggregate principal amount of Equity, Equity-Related
or Debt
Securities (the "Securities") of the Company to the investors during
the
term of this Agreement as set forth in Section 5.
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2.
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Offering
Procedures: The
Exclusive
Finder will introduce the Company to investors who the Exclusive
Finder
reasonably believes to be "accredited investors," as that term is
defined
in Rule 501 of Regulation D
promulgated under the Securities Act of 1933, as amended (the
"1933
Act"), with whom the Exclusive Finder has a pre-existing substantive
relationship (the "Offerees").
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3.
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Exclusive
Finder's Compensation: In
consideration
for the services rendered by the Exclusive Finder hereunder, the
Company
shall pay to the Exclusive Finder, or cause the Exclusive Finder
to be
paid, compensation as provided in this section within 3 days of the
Company's
receipt of funds from the Offerees.
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(a)
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Cash
Compensation: The
Company shall pay to the Exclusive Finder cash compensation equal
to ten
percent (10%) of the gross Offering funds received in the Offering.
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(b)
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Warrants:
The
Exclusive
Finder shall receive ten percent (10%) warrant compensation. The
warrant
calculation translates to ten percent (10%) of the amount of sharers
issued to Investors concurrent with this offering raised for either
a
Registered Offering, or Private Offering. The warrant's strike shall
equal
the strike, expiration and registration rights of any warrants sold
to
Offerees in the Offering, and if the Offering does not provide for
the
issuance of warrants, then the warrants issued to the Exclusive Finder
shall have a strike price equal to the Offering price of any Equity
or
Equity-Related Securities sold, have a three-year term and cashless
exercise after one year if the underlying shares are not then registered.
The warrant shares shall be subject to equitable adjustment for stock
splits, stock dividends and similar events. The warrant shares shall
have
"piggyback" registration rights in any Private Offering, and will
be
backed by registered shares for any Registered Offering. Empire Financial
Group, Inc is to he paid the previously agreed compensation upon
any
warrant exercise.
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1
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(c)
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If,
at any time prior to one year following the end of the Offering (the
"Term") the Company directly or indirectly sells, in a private
transaction, any type of security to an investor with whom negotiations
were initiated by the Exclusive Finder during the Term, the Company
shall
pay the Exclusive Finder the compensation to which it would be entitled
under paragraph 3 if the transaction had occurred during the Term.
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4.
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For
purposes of determining the Exclusive Finder's compensation under
this
Section 3, the gross
offering funds received in the Offering(s) shall include any amounts
paid
to the Company by investors in respect to an exercise or conversion
of any
of the Securities or Warrants, including the value allocated to any
securities not issued pursuant to a "cashless exercise" or similar
provision, whenever actually received by the Company.
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Certain
Matters Relating to
Exclusive Finder's Duties:
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(a)
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The
Exclusive Finder's responsibilities shall be limited to introducing
potential investors to the Company, and the Exclusive Finder shall
not
have authority to offer or sell the Securities to any potential investor.
Exclusive Finder shall not use any general solicitation or general
advertising within the meaning of the applicable securities laws
in
connection with any offering. The Exclusive Finder shall have no
responsibility to participate or assist in any negotiations between
any
potential investor and the Company. The Exclusive Finder will have
no
responsibility to act, and the parties contemplate that the Exclusive
Finder will not act, as a broker or dealer with respect to the offer
or
sale of the Securities. Further, the Exclusive Finder shall have
no
responsibility for fulfilling any SEC reporting or filing requirements
as
relates to the Company provided however, Exclusive Finder agrees
to
provide Company with reasonable assistance related to any registration,
qualification or other requirements of applicable securities laws
and
other regulatory matters, upon request of the Company.
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(b)
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The
Exclusive Finder agrees to introduce the Company to Offerees only
in
states in which the Exclusive Finder has been advised by the Company
that
offers and sales of Securities can be legally made by the Company.
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2
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(c)
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The
Exclusive Finder shall perform its duties under this Agreement in
a manner
consistent with the instructions of the Company. Such performance
shall
include, but not be limited to, the delivery to each Offeree a current
copy of the Private Placement Memorandum, Subscription Agreement
and any
Offering Questionnaire and/or similar documents provided to the Exclusive
Finder by the Company, as such documents may be amended from time
to time
by the Company and delivered to the Exclusive Finder. The Exclusive
Finder
shall consecutively number each copy of the Private Placement Memorandum
(which will include the first letter of the Exclusive Finder's name
or
other identifying xxxx sufficient to designate an Offeree introduced
by
the Exclusive Finder); keep a log of when and to whom each copy of
the
Private Placement Memorandum is given, with the Private Placement
Memorandum numbers; maintain a copy of any written information the
Exclusive Finder obtains regarding the suitability of each Offeree;
and
only use the Private Placement Memorandum in introducing Offerees
to the
Company. The Exclusive Finder shall provide this log and all such
written
information to the Company at any time and promptly upon request
of the
Company at the termination of this Agreement. The Company shall,
promptly
following execution of this Agreement, provide the Exclusive Finder
with a
written list of prospective Offerees that the Company does not want
the
Exclusive Finder to contact. The Exclusive Finder agrees to not contact
the persons on such list, and the Exclusive Finder shall not be entitled
to the compensation set forth in Section 3 with respect
to any
investment made by such person in the Company's Securities.
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(d)
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The
Exclusive Finder is and will hereafter act as an independent contractor
and not as an employee of the Company and nothing in this Agreement
shall
be interpreted or construed to create any employment, partnership,
joint
venture, or other relationship between the Exclusive Finder and the
Company. The Exclusive Finder will not hold itself out as having,
and will
not state to any person that the Exclusive Finder has, any relationship
with the Company other than as an independent
contractor.
The Exclusive Finder shall have no right or power to find or create
any
liability or obligation for or in the name of the Company or to sign
any
documents on behalf of the Company.
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5.
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Right
of First Refusal: In
consideration
for the
Finder acting as the finder in connection with the proposed offering,
the
Company hereby grants the Finder a right of first refusal to serve
as the
Company's exclusive financial advisor and investment
banker in
connection with any financial transaction for a period of 1 year from
the closing of
the transaction. In the event the company advises the Finder that
it
desires to effect any financial transaction, the Company and the
Finder
will negotiate in good faith the terms of the Finder's engagement
in a
separate agreement which would set forth, among other matters,
compensation for the Finder based upon customary fees for the services
provided.
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3
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6.
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Termination
of Agreement: Either
party may
terminate this Agreement by notifying the other party in writing
upon a
material breach by that other party, unless such breach is curable
and is
in fact cured within 15 days after such notice. This Agreement will
otherwise terminate upon completion or termination of the Offering.
The
Company may terminate this Agreement following ninety (90) days after
the
date hereof upon written notice. Notwithstanding the foregoing, all
provisions of this Agreement other than section 1, 2 and 3 shall
survive the
termination of this Agreement with respect to Offerees who the Exclusive
Finder introduces to the Company prior to any termination with respect
to
the Offering. The Exclusive Finder shall be entitled to compensation
under
section 3 based on investments made by such Offerees prior to the
termination of this Agreement or at any time within one year thereafter.
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7.
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Indemnification:
The Company
and the Exclusive Finder each shall indemnify and defend the other
and the
other's affiliates, directors, officers, employees, agents, consultants,
attorneys, accountants and other representatives (each an --Indemnified
Person") and shall hold each Indemnified Person harmless, to the
fullest
extent permitted by law, from and against any and all claims, liabilities,
losses, damages and expenses (including reasonable attorney's fees
and
costs), as they are incurred, in connection with the Offering, resulting
from the indemnifying party's negligence, bad faith or willful misconduct
in connection with the Offering, any violation by the indemnifying
party
(not caused by an Indemnified Person) of Federal or state securities
laws
in connection with the Offering, or any breach by the indemnifying
party
of this Agreement. In case any litigation or proceeding shall be
brought
against any Indemnified Person under this section, the indemnifying
party
shall be entitled to assume the defense of such litigation or proceeding
with counsel of the indemnifying party's choice at its expense (in
which
case the indemnifying party shall not be responsible for the fees
and
expenses of any separate counsel retained by such Indemnified Person,
except in the limited circumstances described below in this section);
provided, however, that such counsel shall be reasonably satisfactory
to
the Indemnified Person. Notwithstanding the indemnifying party's
election
to assume the defense of such litigation or proceeding (a) such
Indemnified Person shall have the right to employ separate counsel
and to
participate in the defense of such litigation or proceeding, and
(b) the indemnifying
party
shall bear the reasonable fees, costs and expenses
of
separate counsel if (but only if) the use of counsel selected by
the
indemnifying party to represent such Indemnified Person would present
such
counsel with a conflict of interest under applicable laws or rules
of
professional conduct.
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8.
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Confidentiality
of Offeree Information: The Company acknowledges that the
identity of the Offerees, and all confidential information about
Offerees
received by the Company from an Offeree or the Exclusive Finder,
is
confidential information of the Exclusive Finder and may not be shared
with any other person without the consent of the Exclusive Finder.
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9.
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Notices:
Any
notice,
consent, authorization or other communication to be given hereunder
shall
be in writing and shall be deemed duly given and received when delivered
personally, when transmitted by fax, three days after being mailed
by
first class mail, or one day after being sent by a nationally recognized
overnight delivery service, charges and postage prepaid, properly
addressed to the party to receive such notice, at the following address
or
fax number for such party (or at such other address or fax number
as shall
hereafter be specified by such party by like notice):
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(a)
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If
to the Company, to:
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P.
Xxxxxx
Xxxxxxx
Chief
Executive Officer
0000
XXXX
XXX XX XXXXXXX, XXXXX
X000
XXXXXXXXXX
XX 00000
Phone:
480-346- 1460
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(b)
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If
to the Exclusive Finder,
to:
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Xxxxxxx
X. Xxxxx
Managing
Director
000
Xxxxxxxxxx Xxxxxx, 00xx
Xxxxx
Xxx
Xxxxxxxxx, XX 941 11
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Phone:
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(000)
000-0000
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Fax
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E-Mail:
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xxxxxx@xxxxxxxxx.xxx
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10.
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Company
to Control Transactions: The
prices, terms
and conditions under which the Company shall offer or sell any Securities
shall be determined by the Company in its sole discretion. The Company
shall have the authority to control all discussions
and
negotiations regarding any proposed or actual offering or sale of
Securities. Nothing in this Agreement shall obligate the Company
to
actually offer or sell any Securities or consummate any transaction.
The
Company may terminate any negotiations or discussions at any time
and
reserves the right not to proceed with any offering or sale of Securities.
Compensation pursuant to this Agreement shall only be paid to the
Exclusive Finder in the event of an actual Closing of the Offering
to an
Offeree introduced by Exclusive Finder.
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11.
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Confidentiality
of Company Information: The
Exclusive
Finder, and its officers, directors, employees and agents shall maintain
in strict confidence and not copy, disclose or transfer to any other
party
(1) all confidential business and financial information regarding
the
Company and its affiliates, including without limitation, projections,
business plans, marketing plans, product development plans, pricing,
costs, customer, vendor and supplier lists and identification, channels
of
distribution, and terms of identification of proposed or actual contracts
and (2) all confidential technology of the Company. In furtherance
of the
foregoing, the Exclusive Finder agrees that it shall not transfer,
transmit, distribute, download or communicate, in any electronic,
digitized or other form or media, any of the confidential technology
of
the Company. The foregoing is not intended to preclude the Exclusive
Finder from utilizing, subject to the terms and conditions of this
Agreement, the Private Placement Memorandum and/or other documents
prepared or approved by the Company for use in the Offering.
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All
communications regarding any possible transactions, requests for due diligence
or other information, requests for facility tours, product demonstrations or
management meetings, will be submitted or directed to the Company, and the
Exclusive Finder shall not contact any employees, customers, suppliers or
contractors of the Company or its affiliates without express permission. Nothing
in this Agreement shall constitute a grant of authority to the Exclusive Finder
or any representatives thereof to remove, examine or copy any particular
document or types of information regarding the Company, and the Company shall
retain control over the particular documents or items to be provided, examined
or copied. If the Offering is not consummated, or if at any time the Company
so
requests, the Exclusive Finder and its representatives will return to the
Company all copies of information regarding the Company in their
possession.
The
provisions of this Section shall survive any termination of this
Agreement
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12.
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Press
Releases, Etc: The
Company shall
control all press releases or announcements to the public, the media
or
the industry regarding any offering, placement, transaction or business
relationship involving the Company or its affiliates. Except for
communication to Offerees in furtherance of this Agreement and the provision
of
the Private Placement Memorandum, the Exclusive Finder will not disclose
the fact that discussions or negotiations are taking place concerning
a
possible transaction involving the Company, or the status or terms
and
conditions thereof. Notwithstanding the foregoing, the Company agrees
to
issue a press release prior to the opening of the market on the business
day following the Company's receipt of executed agreenients binding
Offerees to purchase Securities in at least the amount of the minimum
Offering (if there is any such minimum) setting forth the material
terms
of the Offering.
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13.
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Due
Diligence: Neither
the
Company, nor any of its directors, officers or shareholders, should,
in
any way rely on the Exclusive Finder to perform any due diligence
with
respect to the Company. It is expressly understood and agreed that
to the
extent due diligence is conducted; it will be conducted by the investors.
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14.
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Expenses,
Etc: The
compensation
described in Section 3 of this Agreement shall be the Exclusive Finder's
sole compensation for all of its services and efforts to the Company
and
its affiliates, in connection with any offering or placement of
Securities. However, while the Exclusive Finder shall pay all of
its own
costs and expenses exceeding ten thousand ($10,000) in carrying out
its
activities hereunder; the Company will reimburse the Exclusive Finder
for
the first $10,000 of aforementioned expenses after they have been
incurred
by the Exclusive Finder, and an itemized accounting has been provided
to
the Company. The Company further agrees to reimburse for legal expenses
not to exceed $25,000. The Exclusive Finder shall be exclusively
responsible for any compensation, fees, commissions or payments of
its
employees, agents representatives, co-Exclusive Finders or other
persons
or entities utilized by it in connection with its activities on behalf
of
the Company, and the Exclusive Finder will indemnify and hold harmless
the
Company and its affiliates from the claims of any such persons or
entities.
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15.
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Compliance
with Laws: The
Exclusive
Finder represents and warrants that it is a duly registered brokerldealer
and in good standing with the SEC, NASD and the State of California
and
has and shall maintain such registrations as well as all other necessary
licenses and permits to conduct its activities under this Agreement,
which
it shall conduct in compliance with applicable federal and state
laws
relating to a private placement under Regulation D of the 1933 Act.
The
Exclusive Finder represents that it is not a party to any other agreement,
which would conflict with or interfere with the terms and conditions
of
this Agreement.
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16.
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Assignment
Prohibited: No
assignment of this Agreement
shall be made without the prior written consent of the other
party.
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17.
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Amendments:
Neither
party may
amend this Agreement or rescind any of its existing provisions without
the
prior written consent of the other party.
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18.
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Governing
Law: This
Agreement
shall be deemed to have been made in the State of California and
shall be
construed, and the rights and liabilities determined, in accordance
with
the law of the State of California, without regard to the conflicts
of
laws rules of such jurisdiction.
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19.
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Waiver:
Neither
Exclusive Finder's nor the Company's failure to insist at any time
upon
strict compliance with this Agreement or any of its terms nor any
continued course of such conduct on their part shall constitute or
be
considered a waiver by Exclusive Finder or the Company of any of
their
respective rights or privileges under this Agreement.
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20.
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Severability: If
any provision herein is or should become inconsistent with any present
or
future law, rule or regulation of any sovereign government or regulatory
body having jurisdiction over the subject matter of this Agreement,
such
provision shall be deemed to be rescinded or modified in accordance
with
such law, rule or regulation. In all other respects, this Agreement
shall
continue to remain in full force and effect.
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21.
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Counterparts: This
Agreement may be executed in one or more counterparts, each of which
shall
be deemed an original, and will become effective and binding upon
the
parties at such time as all of the signatories hereto have signed
a
counterpart of this Agreement. All counterparts so executed shall
constitute one Agreement binding on all of the parties hereto,
notwithstanding that all of the parties are not signatory to the
same
counterpart. Each of the parties hereto shall sign a sufficient number
of
counterparts so that each party will receive a fully executed original
of
this Agreement.
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22.
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Entire
Agreement: This
Agreement and all other agreements and documents referred herein
constitutes the entire agreement between the Company and the Exclusive
Finder. No other agreements, covenants, representations or warranties,
express or implied, oral or written, have been made by any party
hereto to
any other party concerning the subject matter hereof. All prior and
contemporaneous conversations, negotiations, possible and alleged
agreements, representations, covenants and warranties concerning
the
subject matter hereof are merged herein. This is an integrated Agreement.
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23.
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Arbitration: The
parties agree
that this Agreement and all controversies which may arise between
the
Exclusive Finder and the Company, whether occurring prior, on or
subsequent to the date of this Agreement, wili be determined by arbitration.
The
parties understand that:
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(a)
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Arbitration
is final and binding on the parties.
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(b)
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The
parties are waiving their right to seek remedies in court, including
the
right to a jury trial.
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(c)
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Pre-arbitration
discovery is generally more limited than and different from court
proceedings.
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(d)
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The
arbitrators' award is not required to include factual findings or
legal
reasoning and any party's right to appeal or to seek modification
or d i n
g s by the arbitrators is strictly limited.
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(e)
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The
panel of arbitrators will
typically include a minority of arbitrators who were or are affiliated
with the securities
industry.
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The
parties agree that any
arbitration under this Agreement will be held at the facilities of and before
an
Arbitration Panel appointed by the National Association of Securities Dealers,
Inc. ("NASD"), or if the NASD refuses to accept jurisdiction, then before
JAMSJENDISPUTE in San Francisco, California. The award of the arbitrators,
or of
the majority of them, will be final, and judgments upon the award may be entered
in any court, state or federal, having jurisdiction. The parties hereby submit
themselves and their personal representatives to the jurisdiction of any state
or federal court for the purpose of such arbitration and entering such
judgment.
Any
forbearance to enforce an agreement to arbitrate will not constitute a waiver
of
any rights under this Agreement except to the extent stated herein.
THIS
AGREEMENT IS GOVERNED BY A
PRE-DISPUTE ARBITRATION CLAUSE CONTAINED IN PARAGRAPH 23 OF THIS
AGREEMENT
Empire
Financial Group, Inc.
(the "Finder")
By: /s/
Xxxxxxx X.
Xxxxx
Xxxxxxx
X. Xxxxx
Title:
Managing Director
Xxxxxxxx
Uranium (the
"Company")
By: /s/
P.
Xxxxxx
Xxxxxxx
P.
Xxxxxx
Xxxxxxx
Title:
Chief Executive Officer
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