CONSULTING & COORDINATION RETAINER AGREEMENT:
Exhibit 4.1
0000
Xxxxxxxxx Xxx. Xxxxx 000
Xxxxxx
xxx Xxx, XX 00000
Phone:
(000) 000-0000 (000)
000-0000
CONSULTING &
COORDINATION RETAINER AGREEMENT:
This
agreement supersedes any and all previously written
agreements.
Stocosil Inc., a Delaware corporation with
an address of 00000 Xxxxxxxxx Xx., Xxx. 000, Xxxx xx Xxxxxxxx, XX
00000 (“Company”), is intending to engage in a
public offering of securities pursuant to an exemption from
registration pursuant to Section 3(b) of the Securities Act of
1933, as amended (the “Act”) and Regulation A+
promulgated thereunder (the
“Offering”). Both parties may be
hereinafter referred to each individually as a “Party”
and collectively as the “Parties”. This Agreement
supersedes and replaces any and all prior agreements between the
parties.
In
consideration of the premises and promises, warranties and
representations herein contained, it is agreed to enter into the
Consulting & Coordination Retainer Agreement (the
“Agreement”) as follows.
Advisory
Services
Company
desires to engage the services of ASMX Capital, LLC
(“ASMXC,” “we,” “our” or
“us”) to consult and advise in the Offering
(“Advisory Services”). Our
Advisory Services include but are not limited to (i) providing you
with general financial advice and assistance concerning the
Company’s business; (ii) assisting Company in analyzing the
best Offering strategy for the Company; (iii) helping Company draft
the offering statement and related offering circular with regard to
the Offering and (iv) assisting Company with such other matters as
we may agree. Both Company and ASMXC are sometimes
referred to herein individually as a “Party”
and collectively as the “Parties.”
Retainer
fees
As
compensation for our Advisory Services, Company has paid ASMXC a
“retainer fee” of $20,000, as of
March 15,
2016 (the “Effective Date”). This retainer fee
in part will fund the beginning activities in the
“Coordination Services” of this Agreement (defined
below). Completion of all due diligence activities for the Company
is estimated to be approximately in the range of $20,000 but
shall not in any event exceed $45,000.
Coordination
Services
The
Company also desires to engage ASMXC to provide certain ancillary
support services related to the process of qualifying the Offering,
preparing and dissemination of materials related to distribution
effort and listing the same on the ASMX Trading System
(“Coordination Services”). These
include:
·
Coordinate
all due diligence 3rd party
reports for full underwriting by Placement Agent
·
Arrange,
coordinate and compile 3rd party
due diligence reports for use by broker-dealers
·
Deliver
completed due diligence packages to broker dealers as directed by
Company
·
Prepare
and deliver completed listing application package to ASMX Market
for listing
·
Prepare
and coordinate PR and marketing/advertising materials, including
but not limited to website review or revamp.
Advisory
and Service Fee
ASMXC
shall further receive a fee (“Deferred Fee”) for its
services of $100,000 payable upon escrow break during the Term (as
defined below) of the minimum investment of Eleven Million Dollars
(US$11,000,000), or any amount determined by both parties
subsequently, pursuant to the Offering. The Deferred Fees are
deferred payments for the services under this Agreement and are not
commissions or other selling relating compensation.
Terminations
This
Agreement will commence on the Effective Date first indicated above
and continue for a period of nine (9) months. The
Agreement is renewable for consecutively six (6) month term upon
mutual written agreement between the Parties. Either
Party may terminate this Agreement at any time with thirty (30)
days’ written notice. Notwithstanding expiration
or termination of this Agreement, the provisions of the Agreement
concerning confidentiality, indemnification, contribution, legal
matters and the Company’s obligations to pay the commission
fees and reimbursed expenses accrued and earned prior to
termination or expiration of this Agreement (the
“Term”) shall survive and remain in
effect.
Terms and
Conditions
In
providing the services described hereunder, ASMXC will make
requests for such information (including, but not limited to, the
preliminary requests found on Exhibit A attached hereto) as we
reasonably determine appropriate to perform these services. The
Company agrees and acknowledges that ASMXC, and its employees,
agents, counsel and advisors, in performance of the Advisory
Services, is relying entirely on the Company to provide all
information concerning itself and its business when performing the
Coordination Services contemplated hereunder, and we do not assume
any responsibility for the accuracy and/or completeness of the
information. Company represents that all such
information provided to ASMXC is true, accurate and complete in all
material respects and, to the best of Company’s knowledge
does not omit any information that, with the passage of time, would
cause the information provided to be inaccurate, false or
incomplete. Company shall promptly submit any additional
information which supplements, corrects, amends or reflects
material changes in or to any of the information previously
submitted to ASMXC.
We
will keep information designated confidential by Company as such
and not disclose to any third party any confidential information of
the Company, and will use such confidential information only in
connection with this engagement; provided, however, such
confidential information shall not include any information (i)
already lawfully in our possession prior to the date of its
disclosure to us by you, (ii) generally available to the public or
(iii) which becomes available to us on a non-confidential basis
from a third party who is not known to us to be bound by a
confidentiality obligation with respect to such information; and
provided, further, that such confidential information may be
disclosed (a) to our officers, members, employees, agents,
affiliates, advisors and representatives (collectively, our
“Representatives”) in connection with our engagement
hereunder who shall be informed of the confidential nature of this
information and agree to keep such information confidential whereby
a breach of such obligation by our Representatives shall be a
breach by us ; (b) to any person with prior written consent of
Company; or (c) if, upon the advice of counsel, we are compelled by
law to disclose such information provided that we shall use
reasonable effort to seek protective order from such disclosure and
provide Company with an opportunity to assist in such
effect. The provisions of this paragraph shall survive
for two (2) years after the expiration or termination of this
Agreement.
We
are an independent contractor to you and are not a fiduciary to you
or your shareholders. The Company acknowledges that it
is a sophisticated business enterprise with competent financial
advisors and legal counsel, and the Company has retained ASMXC for
the limited purposes set forth in this Agreement. The
parties acknowledge and agree that their respective rights and
obligations as set forth herein are contractual in
nature. Accordingly, the Company disclaims any intention
to impose any fiduciary obligations on ASMXC by virtue of the
engagement contemplated by this Agreement, and ASMXC shall not be
deemed to have any fiduciary duties or obligations to any
investors, the Company, any other business entities, or their
respective officers, directors, shareholders, partners, members,
affiliates or creditors, as a result of this Agreement or the
services provided pursuant hereto.
The
Company agrees to indemnify and hold harmless the ASMXC and its
officers, directors, partners and employees (each an
“Indemnified Party”) from and against any losses,
claims (including the reasonable cost of investigation), damages or
liabilities, joint or several, to which ASMXC, or its Indemnified
Parties, may become subject, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of
or are based upon (a) in whole or in part, any material breach of
this Agreement or failure by Company to comply with state or
federal securities laws applicable to the Offering, or (b) any
untrue statement or alleged untrue statement of a material fact
contained (i) in any offering statement by the Company related to
the Offering or any post-qualification amendment thereto, any
marketing material related to the Offering provided by the Company
to any third party or (ii) in any document executed by the Company
or on its behalf specifically for the purpose of qualifying any or
all of the Offering under the securities laws of any jurisdiction
or based upon written information furnished by the Company under
the securities laws thereof, or (c) the omission or alleged
omission to state a material fact required to be stated in the
offering statement related to the Offering or any
post-qualification amendment thereof or any marketing material
related to the Offering provided by the Company to any third party
to make the statements therein not misleading, and the Company will
reimburse ASMXC, and its Indemnified Parties, for any legal or
other expenses each may reasonably incur in connection with
investigating or defending such loss, claim, damage, liability or
action; provided,
however, that the Company will not be liable in any such
case to the extent that any such loss, claim, damage or liability
arises out of, or is based upon (x) ASMXC’s gross negligence
or willful misconduct or (y) an untrue statement or alleged untrue
statement or omission or alleged omission made in reliance upon and
in conformity with written information originated solely by ASMXC
and furnished to the Company by ASMXC expressly for use in an
offering statement related to the Offering or any
post-qualification amendment thereof or (z) any marketing material
related to the Offering provided to any third party. This indemnity
agreement will be in addition to any liability which the Company
may otherwise have.
This
Agreement shall be governed by and construed in accordance with the
internal laws of the State of California without giving effect to
any principles of conflicts of law. The parties hereto
hereby irrevocably submit to the jurisdiction of any court of the
United States, or of the State of California, located in Los
Angeles County, California, over any suit, action, or proceeding
brought by the other party hereto arising out of or relating to
this Agreement. In any action or proceeding to enforce
rights under this Agreement, the prevailing party shall be entitled
to recover costs and attorney fees.
This
Agreement contains the entire agreement between us concerning the
services to be provided hereunder and supersedes any prior
understanding or agreement in connection therewith. Any
amendment or waiver of any right or obligation must be in writing
signed by the party against whom it is sought to be
enforced. The officers signing below are duly authorized
to execute this Agreement on behalf of the Company and ASMXC and
upon execution this Agreement shall be binding against the Company
and ASMXC.
This
Agreement may not be assigned by Company or ASMXC without the prior
written consent of the other Party. The benefits of this
Agreement shall inure to the respective successors and assigns of
the parties to and person indemnified under this Agreement and
their successors, assigns and representatives, and the obligations
and liabilities assumed in this Agreement shall be binding upon
each party’s respective successors and assigns.
Assignment
Neither
party shall have the right or the power to assign any of its
rights, or delegate or subcontract the performance of any of its
obligations under this Agreement, without the prior written
authorization of the other party, such written authorization not to
be unreasonably withheld or delayed; provided, however, that the
prior written authorization of the other party shall not be
required for a party to assign any of its rights, or delegate or
subcontract the performance of any of its obligations hereunder to
an affiliate or pursuant to a sale of substantially all of the
assets of the party, merger, consolidation, reorganization or other
similar transaction.
IN
WITNESS THEREOF, the parties hereto have executed this Agreement as
of the date first above written.
Stocosil,
Inc
Signature:
____________________________ Date: March
24, 2016
Printed
Name: _________________________
Title:
________________________________
ASMX CAPITAL LLC
By:
Date: ___March 24,
2016
Xx. Xxxxxx Xxxxxxx
Chief Executive Officer
EXHIBIT
A
Company
agrees to use its reasonable efforts to continue to provide the
following information as requested by ASMX Capital LLC while ASMX
Capital is engaged by the Company under this
Agreement.
1.
Copy
of Final Business Plan / Private Placement Memorandum
2.
Copy
of the Articles of Incorporation
3.
Details
on Current Shareholders (Detail number of shares authorized,
detailed number of shares issued and outstanding and who holds
those shares).
4.
BIOGRAPHIES
of each Executive Member of the Company, NO RESUMES
5.
Details
on any issued options or warrants of the Company (Capitalization
Table)
6.
Details
on any debts of the Company
7.
Details
on all Permitting, Licensing or Regulatory Approvals Required for
operation
8.
Complete
use of Funds Schedule
9.
Audited
Financial Statements for past two years, or if not incorporated for
the past two years, just back to the date of incorporation. Audited
Financial Statements MUST include:
a.
Balance
Sheets
b.
Profit
& Loss Statements
c.
Cash
Flow Statements
d.
Statements
of Shareholder Equity
e.
Notes
to the Financial Statements
10.
All
financials to be prepared to GAAP standards